NASDAQ$FA

First Advantage Corporation · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

First Advantage's Q2 2024 results were announced, with revenues of $184.5 million and a net income of $1.9 million. The company reaffirmed its full-year 2024 guidance and expects the Sterling acquisition to close in Q4.

First Advantage reported revenues of $184.5 million for Q2 2024, a slight decrease of 0.4% compared to the previous year. Net income was $1.9 million, which includes $9.2 million of expenses related to the acquisition of Sterling Check Corp. The company reaffirmed its full-year 2024 guidance for revenues, Adjusted EBITDA, Adjusted Net Income, and Adjusted Diluted Earnings Per Share.

  • Revenues reached $184.5 million.
  • Net income was $1.9 million, with a 1.0% net income margin, including $9.2 million in Sterling acquisition expenses.
  • Adjusted EBITDA was $55.8 million, resulting in a 30.2% Adjusted EBITDA margin.
  • GAAP diluted net income per share was $0.01, including $0.06 per share in Sterling acquisition expenses.

Headline financials

Total Revenue

$185M

Previous: $185M-0.4%
EPS

$0.01

Previous: $0.24-95.8%
Adjusted EBITDA

$55.8M

No prior period
Adjusted EBITDA Margin

30.2%

Previous: 30.2%+0.0%
Adjusted Net Income

$30.8M

No prior period
Adjusted Diluted EPS

$0.21

No prior period
Adjusted Operating Cash Flow

$40.7M

No prior period
Capital Expenditures

-$970K

Previous: -$688K-41.0%
Free Cash Flow

$891K

Previous: $9.09M-90.2%
Net Income

$1.86M

Previous: $9.78M-81.0%
Operating Income

$9.9M

Previous: $17.6M-43.9%
Gross Profit

$185M

Previous: $185M-0.4%
Cash & Equivalents

$270M

Previous: $399M-32.4%
Total Assets

$1.64B

Previous: $1.84B-11.0%
Stock-Based Comp

$5.05M

Previous: $3.6M+40.2%

Revenue & EPS history

First Advantage · Revenue · Quarterly

$185M

Q2 2024-0.4%vs Q2 2023
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Forward guidance

First Advantage reaffirmed its full-year 2024 guidance, expecting revenues between $750 million and $800 million, Adjusted EBITDA between $228 million and $248 million, Adjusted Net Income between $127 million and $142 million, and Adjusted Diluted Earnings Per Share between $0.88 and $0.98.

Tailwinds

  • Reaffirming full-year 2024 revenue guidance of $750 million - $800 million.
  • Reaffirming full-year 2024 Adjusted EBITDA guidance of $228 million - $248 million.
  • Reaffirming full-year 2024 Adjusted Net Income guidance of $127 million - $142 million.
  • Reaffirming full-year 2024 Adjusted Diluted Earnings Per Share guidance of $0.88 - $0.98.
  • Expect sequential quarter-over-quarter growth for revenues, Adjusted EBITDA, and Adjusted EBITDA Margin to continue through the second half of the year.

Headwinds

  • Full-year 2024 guidance excludes contributions from the pending Sterling acquisition.
  • Guidance is subject to risks and uncertainties described in the company's filings with the SEC.
  • Actual results may differ materially from the provided guidance.
  • Guidance reflects the current hiring environment and expectations that existing macroeconomic conditions will continue.
  • High-end of guidance ranges reflect some macroeconomic recovery towards year end.

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 2024

Historical avgQ2 2024

+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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