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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.
Revenue by Segment
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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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