Slide 1: Q2 2021 Earnings Presentation
Q2 2021 Earnings Presentation August 12, 2021
Slide 2: Disclaimer
Disclaimer 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 perfo
Slide 3: Scott Staples: Company Overview, Q2 2021 Highlights
Scott Staples Chief Executive Officer Company Overview, Q2 2021 Highlights 3
Slide 4: First Advantage – Successful IPO
First Advantage – Successful IPO FA NASDAQ Ticker 6/23/21 IPO Date 29.3M Shares Offered $15.00 Offering Price +31% First Day Stock Performance $3.0B First Day Closing Market Cap 4
Slide 5: Company Snapshot and Key Strategies
Key Strategies OUR CUSTOMERS Company Snapshot 30K 75M 55 ~95% 12 Year Customers Screens of Fortune 100 Gross Average Tenure 2 Leading Global Provider in 2020 in 2020 165 of Fortune 500 Retention Rate 1 of Technology Solutions for Screening, Verifications, Safety, and Compliance Related to Human Capi
Slide 6: Quarterly Highlights
Quarterly Highlights 1 Favorable macro-economic and jobs trends and tailwinds, including hiring growth, new job creation, increasing turnover, and greater worker mobility 2 Increased momentum from our existing customers driven by broad-based hiring and screening growth across key verticals and geogr
Slide 7: Differentiated and Embedded Technology Platform
Differentiated and Embedded Technology Platform Transforming a Complex Ecosystem into a Seamless Customer Experience Criminal Drug / Health Executive Biometrics Education / Work Fleet / Extended Continuous Hiring Tax Background Screening Screening & Identity Verifications Driver Workforce Monitoring
Slide 8: Vertical Strategy Key to Differentiation and Growth
Vertical Strategy Key to Differentiation and Growth Key Verticals Deep customer Vertical sales and Technology & Business Services relationships and customer success strategic dialogues approach Retail & E-Commerce Healthcare Financial Technology / Services Accelerant for upsell Products and and cros
Slide 9: David Gamsey: Q2 2021 Financial Results, Outlook
David Gamsey EVP, Chief Financial Officer Q2 2021 Financial Results, Outlook 9
Slide 10: Q2 Financial Results
Q2 Financial Results Revenues Adjusted EBITDA and Margin 1 Adjusted Diluted EPS 1 $ in millions, except per share data $56.3 $174.8 + 77.9% 39% $0.25 + 66.5% 37% + 177.8% 35% $105.0 $31.7 33% 32.2% $0.09 31% 30.1% 29% 27% 25% Q2 2020 Q2 2021 Q2 2020 Q2 2021 Q2 2020 Q2 2021 • Organic growth of 60%; a
Slide 11: Established Track Record with COVID-19 Resiliency: Revenues
Established Track Record with COVID-19 Resiliency Revenues1 $ in millions COVID-19 $174.8 $156.5 $136.8 $132.1 $121.6 $123.8 $126.7 $109.7 $110.8 $105.0 Q1 '19 Q2 '19 Q3 '19 Q4 '19 Q1 '20 Q2 '20 Q3 '20 Q4 '20 Q1 '21 Q2 '21 7.8% (Full Year) 1.1% (13.7%) 10.5% 23.6% 19.2% 66.5% Year/Year Growth (%) •
Slide 12: Established Track Record with COVID-19 Resiliency: Adjusted EBITDA
Established Track Record with COVID-19 Resiliency Adjusted EBITDA and Margin1,2 $ in millions COVID-19 $56.3 80% $44.6 70% $43.3 60% $36.6 $33.4 $33.5 $31.8 $31.7 50% $25.1 $27.2 40% 30% 30.1% 31.6% 32.2% 27.4% 27.1% 25.1% 24.6% 28.5% 27.7% 20% 22.9% 10% 0% Q1 '19 Q2 '19 Q3 '19 Q4 '19 Q1 '20 Q2 '20
Slide 13: Cash Flow, Balance Sheet & Capital Allocation
Cash Flow, Balance Sheet & Capital Allocation CASH FLOW FROM NET LEVERAGE AT CAPITAL ALLOCATION OPERATING ACTIVITIES JUNE 30, 2021 PRIORITIES Pursue M&A opportunities $ in millions • Acquisitions that are strategic, accretive, and generate strong ROI • Vertical expertise $32.4 • International expans
Slide 14: Full Year 2021 Guidance
Full Year 2021 Guidance1 Full Year 2021 20204 Guidance Y/Y % Growth $ in millions As of 8/12/21 Revenues $509.2 $640 to $650 +26% to 28% Adjusted EBITDA2 $146.8 $186 to $190 +27% to 29% Adjusted Net Income2,3 $65.6 $110 to $113 +68% to 72% Capital Expenditures (consisting of purchases of property an
Slide 15: Scott Staples: Closing Remarks
Scott Staples Chief Executive Officer Closing Remarks 15
Slide 16: Investment Highlights
Investment Highlights • A global leader in large, fragmented, and growing market • Macro-economic tailwinds driving a robust hiring environment • Differentiated and embedded technology platform that provides mission-critical solutions in an increasingly complex market • Verticalized go-to-market str
Slide 17: Appendix: Reconciliations to GAAP Measures
Appendix Reconciliations to GAAP Measures 17
Slide 18: Adjusted EBITDA
Adjusted EBITDA (a) Represents charges incurred related to acquisitions and similar transactions, primarily consisting of change in control-related costs, professional service fees, and other third-party costs. Additionally, the three months ended June 30, 2021 (Successor) includes incremental profe
Slide 19: Adjusted EBITDA (2020 Pro Forma LTM)
Adjusted EBITDA (2020 Pro Forma LTM for Silver Lake Transaction) (a) Represents charges incurred related to acquisitions and similar transactions, primarily consisting of change in control-related costs, professional service fees, and other third-party costs. Additionally, the three months ended Jun
Slide 20: Adjusted EBITDA (2020 Pro Forma)
Adjusted EBITDA (2020 Pro Forma for Silver Lake Transaction) (a) Represents charges incurred related to acquisitions and similar transactions, primarily consisting of change in control-related costs, professional service fees, and other third-party costs. Additionally, the three months ended June 30
Slide 21: Adjusted Net Income
Adjusted Net Income (a) Represents the loss on extinguishment of debt and non-cash interest expense related to the amortization of debt issuance costs for the financing for the Silver Lake Transaction. (b) Represents the depreciation and amortization expense related to intangible assets and develope
Slide 22: Adjusted Net Income (2020 Pro Forma)
Adjusted Net Income (2020 Pro Forma for Silver Lake Transaction) (a) Represents the loss on extinguishment of debt and non-cash interest expense related to the amortization of debt issuance costs for the financing for the Silver Lake Transaction. (b) Represents the depreciation and amortization expe
Slide 23: Adjusted Diluted EPS
Adjusted Diluted EPS (a) Represents the loss on extinguishment of debt and non-cash interest expense related to the amortization of debt issuance costs for the financing for the Silver Lake Transaction. (b) Represents the depreciation and amortization expense related to intangible assets and develop