Slide 1: Q3 2021 Earnings Presentation
Q3 2021 Earnings Presentation November 8, 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, Q3 2021 Highlights
Scott Staples Chief Executive Officer Company Overview, Q3 2021 Highlights 3
Slide 4: Company Snapshot
Key Strategies OUR CUSTOMERS Company Snapshot 30K 75M 55 ~95% 12 Year Customers Screens of Fortune 100 Gross Average in 2020 in 2020 165 of Fortune 500 Retention Tenure 2 Leading Global Provider Rate 1 of Technology Solutions for Screening, Verifications, Safety, and Compliance OUR TECHNOLOGY 3 Rela
Slide 5: Q3 2021 Highlights
Q3 2021 Highlights Favorable macroeconomic tailwinds and jobs trends, including hiring growth, 1 increasing turnover, greater worker mobility, growing quit rates, and new job creation 2 Strong demand from existing customers driven by broad-based hiring and screening growth across key verticals and g
Slide 6: Vertical Strategy Key to Differentiation and Growth
Vertical Strategy Key to Differentiation and Growth Key Verticals Technology & Business Services Deep customer Vertical sales and relationships and customer success strategic dialogues approach Retail & E-Commerce Healthcare Financial Technology / Services Accelerant for upsell Products and and cros
Slide 7: Pending Acquisitions Align with M&A Strategy
Pending Acquisitions Align with M&A Strategy Corporate Screening MultiLatin • Background screening and verifications provider, offering • Healthcare and higher education focused screening and solutions to clients throughout Latin America compliance solutions provider in North America • Based in Mexi
Slide 8: RPA and Proprietary Databases Drive Key Metrics
RPA and Proprietary Databases Drive Key Metrics Evolution of Intelligent National Criminal FileTM Verified!TM Robotic Solutions Database Growth Database Growth 2,750+ active intelligent bots Repository of criminal records Repository of education and work history records C3 576M Configurable Intellig
Slide 9: New Product Innovations Increase Customer Penetration
New Product Innovations Increase Customer Penetration Customer • Helps with mitigating risks related to ID fraud • Fast turnaround times and enhanced • Helps with detecting and mitigating extended Need accuracy workforce related risks • Leverages artificial intelligence to analyze • Data-driven tech
Slide 10: David Gamsey: Q3 2021 Financial Results, Outlook
David Gamsey EVP, Chief Financial Officer Q3 2021 Financial Results, Outlook 10
Slide 11: Q3 2021 Financial Results
Q3 2021 Financial Results Revenues Adjusted EBITDA and Margin 1 Adjusted Diluted EPS 1 ($ in millions, except per share data) $63.9 + 47.7% 39% $0.28 + 41.0% $192.9 37% + 64.7% $43.3 $136.8 35% 33% 33.2% $0.17 31% 31.6% 29% 27% 25% Q3 2020 Q3 2021 Q3 2020 Q3 2021 Q3 2020 Q3 2021 • Organic growth of
Slide 12: Established Track Record of Revenue Growth and Resiliency
Established Track Record of Revenue Growth and Resiliency Revenues1 ($ in millions) COVID-19 $192.9 $174.8 $156.5 $136.8 $132.1 $121.6 $123.8 $126.7 $109.7 $110.8 $105.0 Q1 '19 Q2 '19 Q3 '19 Q4 '19 Q1 '20 Q2 '20 Q3 '20 Q4 '20 Q1 '21 Q2 '21 Q3 '21 7.8% (Full Year) 1.1% (13.7%) 10.5% 23.6% 19.2% 66.5%
Slide 13: Established Track Record of Adjusted EBITDA Growth and Resiliency
Established Track Record of Adjusted EBITDA Growth and Resiliency Adjusted EBITDA and Margin1,2 ($ in millions) COVID-19 $63.9 $56.3 $43.3 $44.6 $36.6 $33.4 $33.5 $31.8 $31.7 $25.1 $27.2 30.1% 31.6% 32.2% 33.2% 27.4% 27.1% 28.5% 27.7% 22.9% 25.1% 24.6% Q1 '19 Q2 '19 Q3 '19 Q4 '19 Q1 '20 Q2 '20 Q3 '2
Slide 14: Cash Flow, Balance Sheet & Capital Allocation
Cash Flow, Balance Sheet & Capital Allocation Cash Flow From Operating Net Leverage Capital Allocation Priorities Activities At September 30, 2021 ($ in millions) ($ in millions) Pursue M&A opportunities • Acquisitions that are strategic and accretive • Vertical expertise • International expansion $
Slide 15: Revised Full Year 2021 Guidance
Revised Full Year 2021 Guidance1 Metric Prior Guidance Revised Guidance 20204 Y/Y % Growth ($ in millions) As of 8/12/21 As of 11/8/21 Revenues $509.2 $640 to $650 $680 to $686 +34% to 35% Adjusted EBITDA2 $146.8 $186 to $190 $208 to $211 +42% to 44% Adjusted Net Income2,3 $65.6 $110 to $113 $125 to
Slide 16: Long-Term Targets
Long-Term Targets1 Metric Long-Term Targets Key Drivers • Proven growth formula • Existing customer base growth • Upsell / cross-sell to existing customers 8 – 10% • New customer wins Revenue Growth (organic) • Net of existing customer attrition • Performance track record • Identified market opportu
Slide 17: Scott Staples: Closing Remarks
Scott Staples Chief Executive Officer Closing Remarks 17
Slide 18: Investment Highlights
Investment Highlights A global leader in large, Macro-economic tailwinds Differentiated and embedded fragmented, and driving a robust technology platform that provides growing market hiring environment mission-critical solutions in an increasingly complex market Verticalized go-to-market Proprietary
Slide 19: Appendix
Appendix Supplemental Materials and Reconciliations to GAAP Measures 19
Slide 20: Proven Formula for Above-Market Organic Growth
Proven Formula for Above-Market Organic Growth Existing Customers New Customers Fragmented industry Significant whitespace $13B Total Addressable Market New product launches Leading value proposition Increased package density Track record of share gain New geographies High retention New divisions /
Slide 21: 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) and September 30, 2021 (Su
Slide 22: 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. (b) Represents charges from organization
Slide 23: 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. (b) Represents charges from organizational r
Slide 24: 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 25: 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 26: 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