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Sep 30, 2021

Advantage Solutions Q3 2021 Earnings Report

Reported healthy financial results and affirmed 2021 outlook.

Key Takeaways

Advantage Solutions reported a year-over-year increase in revenues driven by growth in both the marketing and sales segments. The company is confident in delivering against FY 2021 Adjusted EBITDA guidance of $520 to $530 million.

Revenues increased year-over-year, driven by growth in the marketing and sales segments.

At-home consumer demand remains elevated, supported by steady volume and rising prices.

Higher growth, higher margin digital services continue to outperform.

Affirmed full year Adjusted EBITDA guidance of $520 million to $530 million.

Total Revenue
$929M
Previous year: $784M
+18.4%
EPS
$0.18
Previous year: $0.18
+0.0%
Adjusted EBITDA
$520M
Gross Profit
$163M
Previous year: $159M
+2.2%
Cash and Equivalents
$168M
Previous year: $515K
+32522.5%
Free Cash Flow
$34M
Previous year: -$24.1M
-241.1%
Total Assets
$5.85B
Previous year: $455M
+1187.2%

Advantage Solutions

Advantage Solutions

Forward Guidance

The Company affirmed its full year Adjusted EBITDA guidance of $520 million to $530 million.

Positive Outlook

  • Solid year-to-date performance.
  • COVID-related headwinds in marketing segment easing further into the holidays.
  • Solid pricing for wage inflation flowing through in labor-intensive businesses.

Challenges Ahead

  • Elevated at-home demand for consumer goods normalizes a bit more in the fourth quarter of 2021.
  • Costs to recruit, train and retain large teams of new associates post-pandemic remains elevated.