Core Insights - First Advantage (FA) reported quarterly earnings of $0.18 per share, missing the Zacks Consensus Estimate of $0.24 per share, and down from $0.29 per share a year ago, representing an earnings surprise of -25% [1] - The company posted revenues of $307.12 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 4.12%, compared to year-ago revenues of $202.56 million [2] - The stock has underperformed the market, losing about 0.8% since the beginning of the year, while the S&P 500 gained 1.3% [3] Earnings Outlook - The current consensus EPS estimate for the coming quarter is $0.17 on revenues of $365.29 million, and for the current fiscal year, it is $1 on revenues of $1.6 billion [7] - The estimate revisions trend for First Advantage is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Technology Services industry, to which First Advantage belongs, is currently in the top 30% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Performance - Full Year 2024 revenues reached $860.2 million, an increase from $763.8 million in 2023, representing a growth of 12.0%[6] - The company reported a net loss of $(110.3) million for the full year 2024, with a net loss margin of (12.8)%, impacted by $130.5 million in acquisition-related expenses[4] - Adjusted EBITDA for the full year 2024 was $249.3 million, with an Adjusted EBITDA margin of 29.0%[6] - For Q4 2024, revenues were $307.1 million, up from $202.6 million in Q4 2023, marking a growth of 51.5%[6] - The company incurred a net loss of $(100.4) million in Q4 2024, with a net loss margin of (32.7)%[6] - Adjusted Net Income for the full year 2024 was $123.7 million, down from $145.8 million in 2023[6] Future Projections - The company expects full year 2025 revenues to be between $1.5 billion and $1.6 billion, with Adjusted EBITDA projected between $410 million and $450 million[3][10] - Adjusted Diluted Earnings Per Share for 2025 is guided to be between $0.86 and $1.03[10] Acquisition and Integration - First Advantage has updated its synergy target from $50 million to $70 million to a new range of $60 million to $70 million following the acquisition of Sterling[7] - The integration of Sterling is progressing well, with $20 million in run rate cost synergies already actioned[7] - The company incurred transaction and acquisition-related charges of approximately $93.2 million for the three months ended December 31, 2024, primarily due to the acquisition of Sterling[34] Assets and Liabilities - Total current assets increased to $475,993,000 as of December 31, 2024, up from $373,738,000 in 2023, reflecting a 27.4% growth[28] - Goodwill rose significantly to $2,124,528,000 in 2024 from $820,654,000 in 2023, indicating a substantial increase in acquisitions or business combinations[28] - First Advantage's total assets reached $3,922,893,000 as of December 31, 2024, compared to $1,630,654,000 in 2023, marking a 140.2% increase[28] - First Advantage's total liabilities increased to $2,615,854,000 in 2024 from $723,921,000 in 2023, indicating a 262.5% rise[28] Cash Flow and Expenses - The company reported cash flows from operating activities of $28,196,000 for the year ended December 31, 2024, a decrease from $162,820,000 in 2023[31] - Operating expenses for the three months ended December 31, 2024, totaled $387,798,000, a 123.9% increase from $173,181,000 in the same period of 2023[29] - Cash flows from operating activities for the three months ended December 31, 2024 were reported at $(85,666) thousand, compared to $56,740 thousand in the same period of 2023[39] Shareholder Information - The weighted average number of shares outstanding for basic calculations increased to 162,774,306 in Q4 2024 from 143,167,422 in Q4 2023[29] - The company reported a diluted net loss per share of $(0.62) for the three months ended December 31, 2024, compared to earnings of $0.10 per share in the same period of 2023[36] - The adjusted diluted earnings per share (Non-GAAP) for the three months ended December 31, 2024 was $0.18, down from $0.29 in the same period of 2023[36] Taxation - The effective tax rate for the three months ended December 31, 2024 was approximately 27.6%, compared to 21.2% for the same period in 2023[40] - The company had net operating loss carryforwards of approximately $15.3 million for federal income tax purposes as of December 31, 2024[40]

Core Insights - First Advantage Corporation has completed the acquisition of Sterling Check Corp, which is expected to enhance its operational scale and synergy benefits moving forward [4][6][24] - The company reported significant financial results for the fourth quarter and full year ended December 31, 2024, with revenues of $860.2 million, a net loss of $(110.3) million, and an adjusted EBITDA of $249.3 million [5][6][24] Full Year 2024 Highlights - Revenues for 2024 reached $860.2 million, up from $763.8 million in 2023, representing a year-over-year increase of approximately 12.3% [4][5] - The net loss for 2024 was $(110.3) million, compared to a net income of $37.3 million in 2023, reflecting a significant decline due to acquisition-related expenses [5][6] - Adjusted EBITDA for the year was $249.3 million, with an adjusted EBITDA margin of 29.0% [5][6] Fourth Quarter 2024 Highlights - In Q4 2024, revenues were $307.1 million, compared to $202.6 million in Q4 2023, marking a 51.5% increase [4][5] - The net loss for Q4 2024 was $(100.4) million, with a net loss margin of (32.7)%, influenced by $97.1 million in acquisition-related expenses [5][6] - Adjusted EBITDA for the quarter was $82.9 million, with an adjusted EBITDA margin of 27.0% [5][6] Full Year 2025 Guidance - The company has provided guidance for 2025, projecting revenues between $1.5 billion and $1.6 billion, adjusted EBITDA of $410 million to $450 million, adjusted net income of $152 million to $182 million, and adjusted diluted earnings per share of $0.86 to $1.03 [3][8] - The guidance reflects expected synergies from the Sterling acquisition and a cautious outlook on growth due to macroeconomic conditions [7][8] Synergy Targets - First Advantage has already realized $20 million in run-rate cost synergies from the Sterling acquisition and has updated its synergy target range to $60 million to $70 million [6][7] - The combined company generated approximately $1.51 billion in revenues and nearly $397 million in adjusted EBITDA in 2024, demonstrating effective integration and execution strategies [6][7]

Core Viewpoint - First Advantage Corporation will release its fourth quarter and full year 2024 financial results on February 27, 2025, prior to an earnings conference call scheduled for 8:30 a.m. ET on the same day [1]. Financial Results Announcement - The financial results will be issued before the earnings conference call on February 27, 2025 [1]. - The conference call will be accessible via a domestic dial-in number (800-445-7795) and an international number (785-424-1699) [2]. - A live webcast of the conference call will be available on the company's investor relations website [2]. Company Overview - First Advantage is a leading global provider of employment background screening, identity, and verification solutions [4]. - The company operates in over 200 countries and territories, utilizing proprietary technology to deliver innovative services [4]. - First Advantage aims to help customers mitigate risk and hire the best talent, including employees, contractors, and tenants [4].

Core Insights - First Advantage Corporation will host its Collaborate customer conference featuring keynote speaker Jeremy Gutsche, an expert in innovation and AI [1][4] - Gutsche's session will focus on the impact of AI on talent acquisition and how businesses can adapt to these changes [3][4] Company Overview - First Advantage is a leading global provider of employment background screening, identity, and verification solutions, operating in over 200 countries [5] - The company aims to help customers mitigate risk and hire the best talent through its proprietary technology [5] Event Details - The Collaborate 2025 conference will take place from April 15 to 17, 2025, at the Fontainebleau Resort in Miami Beach, Florida [4] - The event is sponsored by several companies, including Employ, Fama, and TransUnion [4]

Core Insights - First Advantage Corporation will host its Collaborate customer conference featuring keynote speaker Jeremy Gutsche, an expert in innovation and AI [1][4] - Gutsche's session will focus on the impact of AI on talent acquisition and how businesses can adapt to these changes [3][4] Company Overview - First Advantage is a leading global provider of employment background screening, identity, and verification solutions, operating in over 200 countries [5] - The company utilizes proprietary technology to deliver services that help clients mitigate risk and hire effectively [5] Event Details - The Collaborate 2025 conference will take place from April 15 to 17, 2025, at the Fontainebleau Resort in Miami Beach, Florida [4] - The event is sponsored by several companies, including Employ, Fama, and TransUnion [4]

Group 1 - The article discusses the investment outlook for First Advantage Corporation (NASDAQ: FA), highlighting a hold rating due to anticipated negative macroeconomic conditions impacting the business [1] - The author emphasizes a fundamentals-based approach to value investing, arguing against the misconception that low multiple stocks are inherently cheap [1] - The focus is on identifying companies with long-term growth potential, stability, and strong balance sheets, while acknowledging the risks associated with overpaying for successful companies [1] Group 2 - The article does not provide any specific financial data or performance metrics related to First Advantage Corporation or the broader industry [2][3]

First Advantage Corporation (NASDAQ: FA ) has made a significant acquisition recently, which led to a leveraged balance sheet and relatively poor capital returns ahead. Moreover, its shares are somewhat overvalued right now.Labutes IR is a Fund Manager/Analyst specialized in the financial sector, with more than 18 years of experience in the financial markets. I have worked at several type of institutions in the industry, always at the buy side and related to portfolio management. Associated with the existin ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-31666 | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |-------|-------|-------|-------------------------- ...

First Advantage Corporation (NASDAQ:FA) Q3 2024 Earnings Conference Call November 12, 2024 8:30 AM ET Company Participants Stephanie Gorman - Vice President of Investor Relations Scott Staples - Chief Executive Officer David Gamsey - Outgoing Chief Financial Officer Steven Marks - Chief Financial Officer Conference Call Participants Shlomo Rosenbaum - Stifel Andrew Steinerman - JPMorgan Andrew Nicholas - William Blair Manav Patnaik - Barclays Scott Wurtzel - Wolfe Research Operator Good day, everyone. My na ...