Financial Data and Key Metrics Changes - The first quarter revenues were $355 million, nearly flat compared to the previous year on a pro forma basis [22] - Adjusted EBITDA for the first quarter was $92 million, with an adjusted EBITDA margin of 26%, up approximately 200 basis points year-over-year on a pro forma basis [23] - Adjusted diluted EPS was $0.17, flat year-over-year [24] Business Line Data and Key Metrics Changes - Combined upsell, cross-sell, and new logo rates delivered 9.3% growth in the quarter, with retention remaining high at 96% [23][13] - The sales pipeline momentum included 14 enterprise bookings in the first quarter, totaling 78 in the last twelve months, each with $500,000 or more of expected annual contract value [13] - The average deal size increased, indicating strong package density and value selling across most verticals and geographies [13] Market Data and Key Metrics Changes - The transportation vertical showed healthy demand, while there was a slowdown in order volumes within the retail and e-commerce verticals [15][16] - International operations reported an 8% increase, with growth across all regions including EMEA, India, APAC, and Australia [90] Company Strategy and Development Direction - The company is focused on executing its FA five-point-zero strategy, emphasizing customer retention, synergy realization, and integration of the Sterling acquisition [8][9] - The integration process is on track, with a focus on leveraging the best solutions and technologies from both First Advantage and Sterling [18] - The company aims to achieve run rate synergies of $60 million to $70 million within two years post-acquisition [26] Management's Comments on Operating Environment and Future Outlook - Management remains cautious due to macroeconomic uncertainties but has not observed significant changes in fundamental demand drivers [9][11] - The company expects base revenues to remain a growth headwind in Q2 but anticipates sequential improvement later in the year [29][30] - Management is confident in achieving adjusted EBITDA margins around or above 28% starting in Q2, with free cash flow projected between $65 million and $95 million for 2025 [31] Other Important Information - The company has contingency plans in place to manage potential economic slowdowns and is prepared to take actions to reduce costs as needed [11] - The company hosted a record number of attendees at its annual Collaborate User Conference, indicating strong customer engagement [20] Q&A Session Summary Question: Can you elaborate on the cross currents from clients? - Management noted strong order volumes but clients are in a wait-and-see mode regarding forecasting due to macroeconomic conditions [36][38] Question: How is retention trending for the Sterling base? - Retention remains high at 96%, with Sterling customers excited about new features and upgrades [40][42] Question: What gives confidence in the guidance? - Confidence stems from strong new logo generation and upsell/cross-sell revenue, with a focus on maintaining historical retention levels [71] Question: Are you seeing more RFPs post-Sterling? - RFP volumes are normal, driven by trends in the industry, particularly around digital identity [66] Question: How long does onboarding for large deals typically take? - Onboarding for large and complex deals typically takes about six months, with revenue expected to start in late Q2 or early Q3 [68] Question: How is the international business performing? - International operations have shown consistent growth, with an 8% increase, driven by a focus on risk and compliance [90]