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Jun 30, 2024
First Advantage Q2 2024 Earnings Report
First Advantage's Q2 2024 results were announced, with revenues of $184.5 million and a net income of $1.9 million. The company reaffirmed its full-year 2024 guidance and expects the Sterling acquisition to close in Q4.
Key Takeaways
First Advantage reported revenues of $184.5 million for Q2 2024, a slight decrease of 0.4% compared to the previous year. Net income was $1.9 million, which includes $9.2 million of expenses related to the acquisition of Sterling Check Corp. The company reaffirmed its full-year 2024 guidance for revenues, Adjusted EBITDA, Adjusted Net Income, and Adjusted Diluted Earnings Per Share.
Revenues reached $184.5 million.
Net income was $1.9 million, with a 1.0% net income margin, including $9.2 million in Sterling acquisition expenses.
Adjusted EBITDA was $55.8 million, resulting in a 30.2% Adjusted EBITDA margin.
GAAP diluted net income per share was $0.01, including $0.06 per share in Sterling acquisition expenses.
First Advantage
First Advantage
Forward Guidance
First Advantage reaffirmed its full-year 2024 guidance, expecting revenues between $750 million and $800 million, Adjusted EBITDA between $228 million and $248 million, Adjusted Net Income between $127 million and $142 million, and Adjusted Diluted Earnings Per Share between $0.88 and $0.98.
Positive Outlook
- Reaffirming full-year 2024 revenue guidance of $750 million - $800 million.
- Reaffirming full-year 2024 Adjusted EBITDA guidance of $228 million - $248 million.
- Reaffirming full-year 2024 Adjusted Net Income guidance of $127 million - $142 million.
- Reaffirming full-year 2024 Adjusted Diluted Earnings Per Share guidance of $0.88 - $0.98.
- Expect sequential quarter-over-quarter growth for revenues, Adjusted EBITDA, and Adjusted EBITDA Margin to continue through the second half of the year.
Challenges Ahead
- Full-year 2024 guidance excludes contributions from the pending Sterling acquisition.
- Guidance is subject to risks and uncertainties described in the company's filings with the SEC.
- Actual results may differ materially from the provided guidance.
- Guidance reflects the current hiring environment and expectations that existing macroeconomic conditions will continue.
- High-end of guidance ranges reflect some macroeconomic recovery towards year end.