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Dec 31, 2022
Advantage Solutions Q4 2022 Earnings Report
Advantage Solutions reported financial results for the fourth quarter and full fiscal year ended December 31, 2022.
Key Takeaways
Advantage Solutions reported a revenue increase of 6.8% compared to Q4 2021, driven by growth in both the marketing and sales segments. However, the company experienced a significant operating loss due to non-cash impairment charges. Adjusted EBITDA decreased by 26.9% due to inflationary cost pressures and mix shift dynamics.
Revenues increased by 6.8% compared to the fourth quarter of 2021.
Operating loss was $1,537.5 million, a significant decrease from the operating income in the fourth quarter of 2021.
Net loss was $1,421.7 million, a substantial decrease from the net income in the fourth quarter of 2021.
Adjusted EBITDA decreased by 26.9% compared to the fourth quarter of 2021.
Advantage Solutions
Advantage Solutions
Forward Guidance
The Company is initiating its outlook for fiscal 2023. Adjusted EBITDA is anticipated to range from $400 million to $420 million prior to adjustments related to any acquisitions and divestitures. This guidance range takes into account the tight labor market, inflationary pressures, and broad macro headwinds impacting consumers, retailers, and CPG brands, alike.
Positive Outlook
- Strong customer demand
- In-store sampling and demonstration services will continue to build back in 2023
- Initiating outlook for fiscal year 2023
- Guidance takes into account the tight labor market
- Guidance takes into account inflationary pressures
Challenges Ahead
- Tight labor market
- Inflationary pressures
- Broad macro headwinds impacting consumers
- Broad macro headwinds impacting retailers
- Broad macro headwinds impacting CPG brands