Slide 1: Q4 and Full Year 2024 Earnings Presentation
Q4 and Full Year 2024 Earnings Presentation February 27, 2025
Slide 2: Forward-Looking Statements; Non-GAAP Financial Information Note
FORWARD-LOOKING STATEMENTS This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect our current views with respect to, among other things, our operations and financial performance. For
Slide 3: Q4 and Full Year 2024 Highlights
Q4 and Full Year 2024 Highlights Scott Staples Chief Executive Officer
Slide 4: Key Messages
Key Messages 1 Delivered solid Q4 and FY results 2 Completed $2.2B Sterling acquisition in Q4 3 Executing post-close priorities, underpinned by FA 5.0 growth strategy Deliver cost synergies Deleverage balance sheet Enable smooth integration with seamless customer experience Continue to focus
Slide 5: Company At A Glance
Company At A Glance O U R S C A L E O U R V E R T I C A L S $1.5B $397M $458M Healthcare* 5% 7% Transportation* 21% Pro Forma Pro Forma Synergized Pro Forma 7% Retail & E-Commerce* Revenue1 Adjusted EBITDA1 Adjusted EBITDA1,2 Financial Services 8% Manufacturing & Industrials 15% 96% 80K TMT & Hospit
Slide 6: Acquisition Post-Closing Highlights
Acquisition Post-Closing Highlights INTEGRATION CUSTOMER CONTINUED PROGRESS FEEDBACK INNOVATION Seamless customer experience Customers engaged and excited to FA 5.0 strategy underpins optimized with no disruptions benefit from best of both worlds organization and supports growth Current examp
Slide 7: Financial Results & Outlook
Financial Results & Outlook Steven Marks Chief Financial Officer
Slide 8: Q4 2024 Financial Results
Q4 2024 Financial Results ($ in millions) PRO FORMA PRO FORMA REVENUES1 ADJUSTED EBITDA AND MARGIN1 $375 $110 $372 +0.9% (9.2%) $100 29.6% 26.7% Q4 2023 Q4 2024 Q4 2023 Q4 2024 Total Company pro forma growth of 0.9% driven by new logo and Legacy First Advantage Adjusted EBITDA Margin of 31.9% upse
Slide 9: Full Year 2024 Financial Results
Full Year 2024 Financial Results ($ in millions) PRO FORMA PRO FORMA REVENUES1 ADJUSTED EBITDA AND MARGIN1 $423 $397 $1,483 $1,510 (6.2%) +1.8% 28.5% 26.3% 2023 2024 2023 2024 Legacy First Advantage growth was (2.2%) Legacy First Advantage Adjusted EBITDA Margin of 30.5%, First Advantage Ameri
Slide 10: 2024 Adjusted Diluted Earnings Per Share Bridge
2024 Adjusted Diluted Earnings Per Share Bridge $1.00 Reflects 2 months impact on consolidated results $0.08 ($0.07) 2023 share ($0.02) buyback1 Increase in 2024 $0.84 2023 one-time adjusted effective ($0.07) $0.82 special dividend2 Expiring interest tax rate ($0.07) rate swaps, net Benefit
Slide 11: Elevating Targets as We Deliver Net Cost Synergies
Elevating Targets as We Deliver Net Cost Synergies SYNERGY PRIORITIES $70M $60M – $70M NEW: Total Run Rate Synergy Target $60M Expected To Be Actioned Within 2 Years ($50M – $70M previous total target, up from $50M+ originally) $50M $40M Day 1: Nov 1, 2024: Next 180 Days: Year 1: Year 2: 50%+ in firs
Slide 12: Revenue Growth Breakdown
Revenue Growth Breakdown Legacy 2021 2022 Q1 ’23 Q2 ’23 Q3 ’23 Q4 ’23 2023 Q1 ’24 Q2 ’24 Q3 ’24 Q4 ’24 2024 First Advantage Upsell / Cross Sell 4% 4% 5% 4% 4% 6% 5% 4% 5% 7% 5% 5% New Logos 8% 5% 4% 5% 5% 4% 4% 5% 4% 3% 3% 4% Gross Retention 97% 97% 97% 97% 97% 97% 97% 97% 96% 96% 96% 96% Base 26% 2
Slide 13: Cash Flow and Leverage
Cash Flow and Leverage 2024 Cash Flow Net Leverage Cash balance of $168.7M at 12/31/2024 2024 Adjusted Operating Cash Flows of $164.5M1 4.4x Proactively managed working capital to support cash flow through acquisition closing and year end Target: CASH FLOW FROM OPERATIONS, ADJUSTED FOR THE ACQU
Slide 14: Introducing Full Year 2025 Guidance
Introducing Full Year 2025 Guidance Full Year 2025 Guidance Total Revenues $1.5B to $1.6B Adjusted EBITDA $410M to $450M Adjusted EBITDA Margin ~27% to ~28% Adjusted Net Income $152M to $182M Adjusted Diluted Earnings Per Share $0.86 to $1.03 Note: Actual results may differ materially from First A
Slide 15: Full Year 2025 Guidance Details: Adjusted Diluted EPS Bridge
Full Year 2025 Guidance Details: Adjusted Diluted Earnings Per Share Bridge Reflects 10-month pro forma impact on consolidated results (Jan-Oct 2024) Represents 15%+ $0.58 ($0.46) YoY expansion Midpoint $0.95 ($0.07) to $0.07 $0.86 to $1.03 ($0.12) $0.11 to $0.14 $0.82 $0.82 FY2024 Reported Sterling
Slide 16: Closing Remarks
Closing Remarks Scott Staples Chief Executive Officer
Slide 17: Save the Date: First Advantage Investor Day May 28, 2025
Save the Date: First Advantage Investor Day May 28, 2025 NYC and Live Webcast 17
Slide 18: Appendix: Supplemental Materials and Reconciliations to GAAP Measures
Appendix Supplemental Materials and Reconciliations to GAAP Measures
Slide 19: Full Year 2025 Guidance Modeling Assumptions
Full Year 2025 Guidance Modeling Assumptions Assumption ($ in millions; all values are approximate) Actioned synergies expected to be realized in 2025 $25 – $30 Capital expenditures, including capitalized software development $57 – $64 Net interest expense, excluding amortization of financing fees a
Slide 20: Post-Close Strategic Priorities
Post-Close Strategic Priorities Executing Integration Playbook. Seamless integration process focused on customer retention, synergy realization, and operational efficiency led by a dedicated team and supported by all functional areas Actioning Synergies. Target run rate cost synergy range of $60M to
Slide 21: Glossary of Terms
Glossary of Terms General Pro Forma: refers to non-GAAP measures that assume the acquisition of Sterling had occurred on 1/1/2023 Synergized Pro Forma: refers to Pro Forma results adjusted to include the impact of run rate target synergies; less realized synergies already included within Pro F
Slide 22: Reported First Advantage Adjusted EBITDA
Reported First Advantage Adjusted EBITDA 1. Share-based compensation for the quarters ended June 30, 2023, September 30, 2023, December 31, 2023, March 31, 2024, June 30, 2024, September 30, 2024, and December 31, 2024 includes approximately $1.5 million, $2.6 million, $2.6 million, $2.6 million, $2
Slide 23: Pro Forma 2024 First Advantage Adjusted EBITDA
Pro Forma 2024 First Advantage Adjusted EBITDA To facilitate comparability, we present pro forma combined company results, consisting of First Advantage and Sterling Check Corp. historical results and certain pro forma adjustments as if the acquisition of Sterling had occurred on January 1, 2023. Th
Slide 24: Pro Forma 2023 First Advantage Adjusted EBITDA
Pro Forma 2023 First Advantage Adjusted EBITDA To facilitate comparability, we present pro forma combined company results, consisting of First Advantage and Sterling Check Corp. historical results and certain pro forma adjustments as if the acquisition of Sterling had occurred on January 1, 2023. Th
Slide 25: Legacy First Advantage Constant Currency Revenues
Legacy First Advantage Constant Currency Revenues 1. Constant currency revenue is calculated by translating current period amounts using prior-year period exchange rates. 25
Slide 26: Legacy Sterling Constant Currency Revenues
Legacy Sterling Constant Currency Revenues 1. Constant currency revenue is calculated by translating current period amounts using prior-year period exchange rates. 26
Slide 27: Reported First Advantage Adjusted Operating Cash Flow
Reported First Advantage Adjusted Operating Cash Flow 27
Slide 28: Reported First Advantage Adjusted Net Income
Reported First Advantage Adjusted Net Income 1. Represents the non-cash interest expense related to the amortization of debt issuance costs for the 2021 February and 2024 October refinancing of the Company’s First Lien Credit Facility. This adjustment also includes the impact of the change in fair v
Slide 29: Reported First Advantage Adjusted Diluted Earnings Per Share
Reported First Advantage Adjusted Diluted Earnings Per Share 1. Represents the non-cash interest expense related to the amortization of debt issuance costs for the 2021 February and 2024 October refinancing of the Company’s First Lien Credit Facility. This adjustment also includes the impact of the