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Dec 31, 2021

Advantage Solutions Q4 2021 Earnings Report

Reported solid financial results for the fourth quarter and full fiscal year 2021 and provided initial 2022 outlook.

Key Takeaways

Advantage Solutions reported a solid finish to 2021, converting strong revenue growth to healthy EBITDA gains. The company is planning to reinvest opportunistically to support and extend the Advantage franchise.

Revenues increased due to growth in the marketing and sales segments.

Operating income increased due to higher revenues and a decrease in non-recurring expenses.

Net income increased due to higher operating income, lower interest expense, and a non-cash fair value adjustment to warrant liability.

Adjusted EBITDA increased due to profit growth in international, product demonstration, and digital units, and lower performance-based compensation.

Total Revenue
$1.03B
Previous year: $850M
+21.5%
EPS
$0.24
Previous year: $0.16
+50.0%
Gross Profit
$186M
Previous year: $181M
+3.0%
Cash and Equivalents
$165M
Previous year: $204M
-19.4%
Free Cash Flow
$17.9M
Previous year: $339M
-94.7%
Total Assets
$0
Previous year: $5.78B
-100.0%

Advantage Solutions

Advantage Solutions

Advantage Solutions Revenue by Segment

Forward Guidance

The company is guiding 2022 Adjusted EBITDA to a range of $490 million to $510 million, reflecting a decision to pursue opportunistic reinvestment in talent, adjacent services, and infrastructure.