NASDAQ$ADV

Advantage Solutions Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Advantage Solutions reported financial results for the fourth quarter and full fiscal year ended December 31, 2022.

Advantage Solutions reported a revenue increase of 6.8% compared to Q4 2021, driven by growth in both the marketing and sales segments. However, the company experienced a significant operating loss due to non-cash impairment charges. Adjusted EBITDA decreased by 26.9% due to inflationary cost pressures and mix shift dynamics.

  • Revenues increased by 6.8% compared to the fourth quarter of 2021.
  • Operating loss was $1,537.5 million, a significant decrease from the operating income in the fourth quarter of 2021.
  • Net loss was $1,421.7 million, a substantial decrease from the net income in the fourth quarter of 2021.
  • Adjusted EBITDA decreased by 26.9% compared to the fourth quarter of 2021.

Headline financials

Total Revenue

$1.1B

Previous: $1.03B+6.8%
EPS (adj)

$0.17

Previous: $0.24-29.2%
Capital Expenditures

$10.4M

Previous: $7.07M+47.4%
Free Cash Flow

$28.9M

Previous: $17.9M+61.8%
Net Income

-$1.42B

Previous: $0.00
Operating Income

-$1.54B

Previous: $0.00
Gross Profit

$146M

Previous: $186M-21.7%
Cash & Equivalents

$121M

Previous: $165M-26.7%
Total Assets

$4.26B

Previous: $0.00
Stock-Based Comp

$208K

Previous: -$1.89M+111.0%

Revenue & EPS history

Advantage Solutions · Revenue · Quarterly

$1.1B

Q4 2022+6.8%vs Q4 2021
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Forward guidance

The Company is initiating its outlook for fiscal 2023. Adjusted EBITDA is anticipated to range from $400 million to $420 million prior to adjustments related to any acquisitions and divestitures. This guidance range takes into account the tight labor market, inflationary pressures, and broad macro headwinds impacting consumers, retailers, and CPG brands, alike.

Tailwinds

  • Strong customer demand
  • In-store sampling and demonstration services will continue to build back in 2023
  • Initiating outlook for fiscal year 2023
  • Guidance takes into account the tight labor market
  • Guidance takes into account inflationary pressures

Headwinds

  • Tight labor market
  • Inflationary pressures
  • Broad macro headwinds impacting consumers
  • Broad macro headwinds impacting retailers
  • Broad macro headwinds impacting CPG brands

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2022

Historical avgQ4 2022

-2.7%

Avg return

Earnings day

-3.9%

Avg return

5 days after

-0.1%

Avg return

30 days after

36%

9 / 25 earnings

Positive

+18.6%

Q4 2022

Best reaction

-20.2%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+15.3%-5.5%+1.8%
Q4 2025-1.0%+15.9%+57.6%
Q3 2025-3.3%+8.9%-30.1%
Q1 2025-17.8%-14.3%+12.2%
Q4 2024-8.9%-28.4%-44.9%
Q3 2024+10.1%-1.6%+5.1%
Q2 2024+4.2%+0.3%+3.6%
Q1 2024-17.6%-20.2%-29.1%
Q4 2023+2.1%-3.4%+14.6%
Q3 2023-16.0%-16.5%+29.1%
Q2 2023+2.3%+1.2%+12.4%
Q1 2023+10.8%+18.5%+62.3%
Q4 2022+18.6%+7.7%-28.2%
Q3 2022-20.2%-17.5%-33.4%
Q2 2022-9.7%+3.2%-32.5%
Q1 2022-11.0%-9.6%-15.3%
Q4 2021-15.9%-26.9%-18.9%
Q3 2021+4.4%+1.6%-13.9%
Q2 2021-6.7%-6.0%-13.0%
Q1 2021-3.8%-5.6%-4.7%
Q4 2020-0.2%+7.2%+27.1%
Q2 2020-0.2%+7.2%+27.1%
Q3 2020-2.1%-13.8%-1.5%
Q1 2020+0.5%+0.0%+4.9%
Q4 2019-1.0%-1.0%+5.1%
Q3 2019
Q2 2019
Q1 2019
Q1 2017
Q1 2016

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro