NASDAQ$FA

First Advantage Corporation · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

First Advantage's Q4 2023 earnings were reported, revealing a mix of financial results and a strategic acquisition announcement.

First Advantage reported Q4 2023 revenues of $202.6 million and net income of $14.8 million. The company also announced a definitive agreement to acquire Sterling Check Corp. in a transaction valued at approximately $2.2 billion.

  • Revenues for Q4 2023 reached $202.6 million.
  • Net income for Q4 2023 was reported at $14.8 million.
  • Adjusted EBITDA for Q4 2023 stood at $68.2 million.
  • The company announced an agreement to acquire Sterling Check Corp.

Headline financials

Total Revenue

$203M

Previous: $213M-4.7%
EPS (adj)

$0.29

Previous: $0.30-3.3%
Capital Expenditures

-$7.12M

Previous: $131K-5535.1%
Net Income

$14.8M

Previous: $20.1M-26.4%
Operating Income

$29.4M

Previous: $28.7M+2.4%
Gross Profit

$57.2M

Previous: $105M-45.3%
Stock-Based Comp

$4.82M

Previous: $2.03M+137.0%

Revenue & EPS history

First Advantage · Revenue · Quarterly

$203M

Q4 2023-4.7%vs Q4 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Forward guidance

First Advantage introduced full-year 2024 guidance ranges, excluding contributions from the pending Sterling Check acquisition.

Tailwinds

  • Revenues: $750 million – $800 million
  • Adjusted EBITDA: $228 million – $248 million
  • Adjusted Net Income: $127 million – $142 million
  • Adjusted Diluted Earnings Per Share: $0.88 – $0.98
  • Guidance reflects the current hiring environment and expectations that existing macroeconomic conditions and similar labor market trends will continue throughout 2024.

Headwinds

  • Guidance excludes contributions from the pending Sterling Check acquisition.
  • A reconciliation of the foregoing guidance for the non-GAAP metrics of Adjusted EBITDA and Adjusted Net Income to GAAP net income and Adjusted Diluted Earnings Per Share to GAAP diluted net income per share cannot be provided without unreasonable effort.
  • The occurrence and financial impact of the various adjusting items necessary for such reconciliation that have not yet occurred, are out of our control, or cannot be reasonably predicted.
  • The Company is unable to assess the probable significance of the unavailable information, which could have a material impact on its future GAAP financial results.
  • Actual results may differ materially from First Advantage’s full-year 2024 guidance.

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 2023

Historical avgQ4 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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