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Mar 31, 2024

Advantage Solutions Q1 2024 Earnings Report

Advantage Solutions' first quarter 2024 results met expectations despite market softness, higher costs, and investments, with a focus on core capabilities following the sale of Adlucent.

Key Takeaways

Advantage Solutions reported a 10% decline in revenues to $906 million, which increased by 1% excluding the impact of divestitures, foreign exchange, and pass-through costs. Operating income was $31.3 million, which included a gain on a divestiture. Adjusted EBITDA was $79 million, in line with expectations. Management reaffirms its 2024 outlook.

Revenues were $906 million, a 10% decline compared to the prior year, but increased 1% when excluding the impact of divestitures, foreign exchange, and pass-through costs.

Operating income was $31.3 million, including a gain on a divestiture.

Adjusted EBITDA was $79 million, which was in line with expectations.

The Company completed the sale of Adlucent on May 1, 2024, to focus on core capabilities and build a strong balance sheet.

Total Revenue
$879M
Previous year: $1.01B
-13.1%
EPS
-$0.15
Previous year: -$0.15
+0.0%
Adjusted EBITDA
$78.8M
Gross Profit
$63.6M
Previous year: $124M
-48.7%
Cash and Equivalents
$112M
Previous year: $149M
-24.7%
Free Cash Flow
-$24M
Previous year: $37.1M
-164.7%
Total Assets
$3.63B
Previous year: $4.14B
-12.2%

Advantage Solutions

Advantage Solutions

Forward Guidance

Management reaffirms its outlook for 2024 with revenues and Adjusted EBITDA growth in the range of low single digits, excluding the in-year impact of the completed divestitures on the 2023 results.

Positive Outlook

  • Revenues are expected to grow in the low single digits.
  • Adjusted EBITDA is expected to grow in the low single digits.
  • Management plans to execute additional simplification objectives in 2024.
  • Activities related to improving operating efficiencies are planned.
  • Investments behind the business from a talent and technology perspective will continue.