NASDAQ$FA

First Advantage Corporation · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Reported revenues of $185.3 million and net income of $9.8 million.

First Advantage reported second quarter results with revenues of $185.3 million and net income of $9.8 million. The company reaffirmed its full-year 2023 guidance, but expects results at the lower end of the guidance ranges due to macroeconomic headwinds.

  • Generated Revenues of $185.3 million; Constant Currency Revenues were $186.4 million
  • Delivered Net Income of $9.8 million; Adjusted Net Income was $34.8 million
  • Produced Adjusted EBITDA of $56.0 million; Constant Currency Adjusted EBITDA was $56.1 million
  • Realized GAAP diluted net income per share of $0.07; Adjusted Diluted Earnings Per Share was $0.24

Headline financials

Total Revenue

$185M

Previous: $202M-8.1%
EPS (adj)

$0.24

Previous: $0.25-4.0%
Adjusted EBITDA Margin

30.2%

Previous: 30.2%+0.0%
Capital Expenditures

-$688K

Previous: -$5.17M+86.7%
Free Cash Flow

$9.09M

Previous: $9.07M+0.3%
Net Income

$9.78M

Previous: $14.2M-31.3%
Operating Income

$17.6M

Previous: $22.8M-22.6%
Gross Profit

$185M

Previous: $202M-8.1%
Cash & Equivalents

$399M

Previous: $352M+13.3%
Total Assets

$1.84B

Previous: $1.91B-3.8%
Stock-Based Comp

$3.6M

Previous: $1.94M+85.3%

Revenue & EPS history

First Advantage · Revenue · Quarterly

$185M

Q2 2023-8.1%vs Q2 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Forward guidance

The Company is reaffirming its previous full-year 2023 guidance ranges, expecting results at the lower end of the guidance ranges. This reflects the current hiring environment and expectations that existing macroeconomic conditions and similar labor market trends will continue through the remainder of 2023 without significant changes.

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 Q2 2023

Historical avgQ2 2023

+7.9%

Avg return

Earnings day

+6.8%

Avg return

5 days after

+7.3%

Avg return

30 days after

76%

19 / 25 earnings

Positive

+23.0%

Q1 2026

Best reaction

-12.4%

Q4 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+23.0%+21.3%+24.1%
Q4 2025+22.8%+24.3%+17.1%
Q3 2025+6.8%+2.8%+7.0%
Q1 2025+19.0%+19.1%+21.4%
Q4 2024-12.4%-25.7%-25.0%
Q3 2024-3.0%-5.8%+5.2%
Q2 2024+3.2%+5.0%+15.1%
Q1 2024-1.5%-0.7%+1.4%
Q4 2023-6.1%-4.6%-3.7%
Q3 2023+2.2%+5.2%+17.4%
Q2 2023+6.4%+7.1%-8.3%
Q1 2023+0.2%+4.8%+9.5%
Q4 2022+1.4%+2.7%+4.1%
Q3 2022+11.6%+18.4%+29.3%
Q2 2022-2.8%+2.5%-3.0%
Q1 2022-5.4%-1.9%-9.4%
Q4 2019+10.4%+11.0%+1.2%
Q4 2021+10.4%+11.0%+1.2%
Q3 2021+3.3%-4.9%-15.2%
Q3 2020+3.3%-4.9%-15.2%
Q4 2020+20.9%+16.5%+21.9%
Q1 2021+20.9%+16.5%+21.9%
Q2 2020+20.9%+16.5%+21.9%
Q2 2021+20.9%+16.5%+21.9%
Q1 2020+20.9%+16.5%+21.9%

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