First Advantage Corporation · Q3 2022 earnings

Briefing

First Advantage reported results with revenue increase and net income growth, but adjusted net income decreased due to macroeconomic pressures.

First Advantage reported a 6.8% increase in revenue to $206.0 million and a 5.7% increase in net income to $17.2 million compared to the prior-year period. However, Adjusted Net Income decreased by 5.1% to $40.0 million. The company's performance was impacted by foreign currency headwinds and macro-related softness in its International segment.

• Revenues increased by 6.8% to $206.0 million, or 8.6% on a constant currency basis.
• Net income grew by 5.7% to $17.2 million.
• Adjusted EBITDA increased slightly by 0.4% to $64.2 million, or $65.3 million on a constant currency basis.
• Cash flows from operations increased significantly by 67.2% to $46.4 million.

Headline financials

Revenue & EPS history

First Advantage is revising full year 2022 guidance ranges downward to reflect expectations for continuing foreign currency headwinds and macro-driven demand softness, primarily in the International segment. This revised guidance equates to full year 2022 revenue growth of 14% - 15%, or 16% - 17% on a constant currency basis.