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Mar 31, 2023

Advantage Solutions Q1 2023 Earnings Report

Advantage Solutions' first quarter performance in 2023 showed revenue growth but a decrease in profitability.

Key Takeaways

Advantage Solutions reported a 10.6% increase in revenue to $1.0 billion for Q1 2023, driven by growth in both the Sales and Marketing segments. However, the company experienced an operating loss of $8.3 million and a net loss of $47.7 million, with Adjusted EBITDA decreasing by 4.8% to $92.1 million.

Revenues increased by 10.6% year-over-year to $1.012 billion, or 12.1% excluding foreign exchange impacts.

Operating loss was $8.3 million, a decrease of $31.3 million compared to the prior year's operating income of $23.0 million.

Net loss was $47.7 million, a decrease of $65.2 million compared to the prior year's net income of $17.5 million.

Adjusted EBITDA decreased by 4.8% to $92.1 million.

Total Revenue
$1.01B
Previous year: $915M
+10.6%
EPS
-$0.15
Previous year: $0.15
-200.0%
Gross Profit
$124M
Previous year: $129M
-3.8%
Cash and Equivalents
$149M
Previous year: $124M
+20.6%
Free Cash Flow
$37.1M
Previous year: -$34.4M
-207.9%
Total Assets
$4.14B
Previous year: $5.84B
-29.1%

Advantage Solutions

Advantage Solutions

Advantage Solutions Revenue by Segment

Forward Guidance

The Company is reiterating its guidance for fiscal 2023 with Adjusted EBITDA anticipated to range from $400 million to $420 million.

Revenue & Expenses

Visualization of income flow from segment revenue to net income