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Mar 31, 2023

APi Group Q1 2023 Earnings Report

APi Group reported record first-quarter results, driven by double-digit organic growth in services revenues and margin expansion.

Key Takeaways

APi Group reported a strong start to 2023 with record first-quarter results, including a 9.7% increase in net revenue and a 12.1% organic net revenue growth. The company's adjusted EBITDA increased by 14.8%, with a margin expansion of 40 basis points. Due to the strong performance, APi Group is raising its full-year guidance for net revenues and adjusted EBITDA..

Net revenue increased by 9.7% due to double-digit growth in services revenues.

Organic net revenue grew by 12.1% compared to the prior year period.

Adjusted EBITDA increased by 14.8% driven by gross margin accretive organic growth.

Adjusted EBITDA margin increased 40 basis points to 9.1%.

Total Revenue
$1.61B
Previous year: $1.47B
+9.7%
EPS
$0.25
Previous year: $0.23
+8.7%
Adjusted EBITDA Margin
9.1%
Previous year: 8.7%
+4.6%
Organic Net Revenue Growth
12.1%
Previous year: 15.9%
-23.9%
Gross Profit
$425M
Previous year: $376M
+13.0%
Cash and Equivalents
$363M
Previous year: $315M
+15.2%
Free Cash Flow
-$22M
Previous year: -$130M
-83.1%
Total Assets
$7.77B
Previous year: $8.14B
-4.6%

APi Group

APi Group

APi Group Revenue by Segment

Forward Guidance

APi Group is raising its full year net revenue and adjusted EBITDA guidance originally announced on February 21, 2023 and announces guidance for the second quarter of 2023

Positive Outlook

  • Net Revenues of $6,875 to $7,025 million, up from $6,800 to $6,950 million
  • Adjusted EBITDA of $740 to $780 million, up from $735 to $775 million
  • Adjusted Free Cash Flow Conversion at or above 65% remains unchanged
  • Net Revenues of $1,750 to $1,780 million for the second quarter of 2023
  • Adjusted EBITDA of $195 to $205 million for the second quarter of 2023

Revenue & Expenses

Visualization of income flow from segment revenue to net income