Slide 1: Q4 2021 Earnings Presentation
Q4 2021 EARNINGS PRESENTATION March 23, 2022
Slide 2: Forward-Looking Statements; Non-GAAP Financial Information
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: Company Overview & Q4 2021 Highlights
COMPANY OVERVIEW & Q4 2021 HIGHLIGHTS Scott Staples Chief Executive Officer
Slide 4: Q4 2021 Highlights
Q4 2021 Highlights Q4 2021 HIGHLIGHTS Revenue growth of 36% driven by strength across all customer verticals, business units, 1 and geographies Our differentiated products and solutions helped customers find and onboard talent in 2 today’s dynamic and fast-moving hiring environment Strong growth fro
Slide 5: Company Snapshot
COMPANY OUR CUSTOMERS 1 SNAPSHOT 33K+ ~93M 50%+ ~96% 12 Year Customers Screens of Fortune 100 Gross Retention Average LEADING GLOBAL PROVIDER and 33%+ Fortune 500 Rate Tenure OF TECHNOLOGY SOLUTIONS for Screening, Verifications, Safety, and Compliance Related to Human Capital OUR TECHNOLOGY OUR MARK
Slide 6: Sustainable Competitive Differentiators
SUSTAINABLE COMPETITIVE DIFFERENTIATORS VERTICALIZED GO-TO-MARKET STRATEGY DIFFERENTIATED & EMBEDDED enables durable growth through long-term customer TECHNOLOGY relationships, diversified industry exposure, and a that provides mission-critical solutions customer acquisition and upsell/cross-sell fl
Slide 7: Key 2022 Strategic Focus Areas Driving Growth & Leadership
KEY 2022 STRATEGIC FOCUS AREAS DRIVING GROWTH & LEADERSHIP Organic Growth Vertical Go-To- Growth International Mergers & Formula Market Strategy Investments Expansion Acquisitions 7
Slide 8: Growth Accelerators
GROWTH ACCELERATORS PRODUCT INNOVATION ACQUISITIONS STRATEGIC PARTNERSHIPS • Focused on product innovation to stay on • Acquisition playbook that is strategic, • Uses strategic partnerships to expand the leading edge of technology and customer-centric, and focused on market coverage, deliver product
Slide 9: Technology Innovation: Enhanced Verified! Solution
TECHNOLOGY INNOVATION: ENHANCED VERIFIED!® SOLUTION Enhancements Driving Customer-Driven Verification Leadership Market-Leading Results API Expanding strategic Timely solution to powered partnerships support customers through The Great Onboarding PARTNER ECOSYSTEM Ever growing direct data Product in
Slide 10: Financial Results & Outlook
FINANCIAL RESULTS & OUTLOOK David Gamsey EVP, Chief Financial Officer
Slide 11: Q4 2021 Financial Results
Q4 2021 FINANCIAL RESULTS ($ in millions, except per share data) Revenues Adjusted EBITDA and Margin 1 Adjusted Diluted EPS 1 $69.4 $0.31 $212.5 + 55.5% 3 9 % + 35.8% 3 7 % + 63.2% $156.5 $44.6 $0.19 3 5 % 3 3 % 32.7% 3 1 % + 415 bps 2 9 % 28.5% 2 7 % 2 5 % Q4 2020 Q4 2021 Q4 2020 Q4 2021 Q4 2020 Q4
Slide 12: FY 2021 Financial Results
FY 2021 FINANCIAL RESULTS ($ in millions, except per share data) Revenues 3 Adjusted EBITDA and Margin 1,3 Adjusted Diluted EPS 1,3 $226.3 $712.3 $1.01 + 54.2% 3 9 % + 39.9% + 102.0% 3 7 % $509.2 $146.8 3 5 % $0.50 3 3 % 3 1 % 31.8% + 294 bps 2 9 % 28.8% 2 7 % 2 5 % 2020 2021 2020 2021 2020 2021 • O
Slide 13: Consistent Track Record of Revenue Growth
CONSISTENT TRACK RECORD OF REVENUE GROWTH Revenues 1 $212.5 ($ in millions) $192.9 COVID-19 $174.8 $156.5 $136.8 $132.1 $121.6 $123.8 $126.7 $109.7 $110.8 $105.0 Q1 '19 Q2 '19 Q3 '19 Q4 '19 Q1 '20 Q2 '20 Q3 '20 Q4 '20 Q1 '21 Q2 '21 Q3 '21 Q4 '21 Year/Year Growth (%) 7.8% (Full Year) 1.1% (13.7%) 10.
Slide 14: Consistent Track Record of Adjusted EBITDA Growth
CONSISTENT TRACK RECORD OF ADJUSTED EBITDA GROWTH Adjusted EBITDA and Margin 1,2 ($ in millions) $69.4 COVID-19 $63.9 $56.3 $43.3 $44.6 $36.6 $33.4 $33.5 $31.8 $31.7 $25.1 $27.2 31.6% 32.2% 33.2% 32.7% 30.1% 28.5% 27.7% 27.4% 27.1% 25.1% 22.9% 24.6% Q1 '19 Q2 '19 Q3 '19 Q4 '19 Q1 '20 Q2 '20 Q3 '20 Q
Slide 15: Cash Flow, Leverage & Capital Allocation
CASH FLOW, LEVERAGE & CAPITAL ALLOCATION Cash Flow From Net Leverage Capital Allocation Operating Activities at December 31, 2021 Priorities ($ in millions) ($ in millions) $64.8 Pursue strategic M&A opportunities + 84.0% • Vertical capabilities Debt $565 • International expansion $35.2 Cash $293 •
Slide 16: Introducing Full Year 2022 Guidance
INTRODUCING FULL YEAR 2022 GUIDANCE ($ in millions) FY 2021 Actuals FY 2022 Guidance Y/Y % Growth +14% to 16% Revenues $712 $813 to $828 +10% to 12% organic Adjusted EBITDA $226 $250 to $257 +10% to 14% Adjusted Net Income $142 $156 to $161 +10% to 13% Note: • Actual results may differ materially fr
Slide 17: Closing Remarks
CLOSING REMARKS Scott Staples Chief Executive Officer
Slide 18: Investment Highlights
Q4 2021 Highlights INVESTMENT HIGHLIGHTS 1 Global leader in a large, fragmented, and growing market Impressive and loyal customer base across attractive industry verticals, due 2 to verticalized go-to-market strategy Automation, artificial intelligence, and machine learning enabling 3 customers to h
Slide 19: Appendix
APPENDIX Supplemental Materials and Reconciliations to GAAP Measures
Slide 20: Proven Formula for Above-Market Long-Term Growth
PROVEN FORMULA FOR ABOVE-MARKET LONG-TERM GROWTH Existing Customers New Customers • Significant whitespace • Fragmented industry • New product launches • $13B Total Addressable Market • Increased package • Leading value proposition density • Track record of share gain • New geographies • High retent
Slide 21: Long-Term Growth Targets
LONG-TERM GROWTH TARGETS 1 Long-Term Organic Targets Key Drivers • Proven growth formula • Existing customer base growth • Upsell / cross-sell to existing customers • New customer wins Revenues Growth 8 – 10% • Net of existing customer attrition • Performance track record • Identified market opportu
Slide 22: Proprietary Database Growth
PROPRIETARY DATABASE GROWTH National Criminal Records File Verified!® Database Growth Database Growth 580M + 48% 36M 392M + 30% 302M + 260% 10M + 67% 6M 2019 2020 2021 2019 2020 2021 Repository of criminal records Repository of education and work history records Note: As of 12/31 for each year prese
Slide 23: Adjusted EBITDA
ADJUSTED EBITDA Predecessor Successor For the Quarters Ended Period Ended Period Ended For the Quarters Ended Year Ended Mar 31, 2019 Jun 30, 2019 Sep 30, 2019 Dec 31, 2019 Jan 31, 2020 Mar 31, 2020 Jun 30, 2020 Sep 30, 2020 Dec 31, 2020 Mar 31, 2021 Jun 30, 2021 Sep 30, 2021 Dec 31, 2021 Dec 31, 20
Slide 24: Adjusted EBITDA (Pro Forma for Silver Lake Transaction)
ADJUSTED EBITDA ADJUSTED EBITDA (2020 Pro Forma for Silver Lake Transaction) (Q1 2020 Pro Forma for Silver Lake Transaction) Pro Forma Predecessor Successor Pro Forma Predecessor Successor Adjustments for the Adjustments for Pro Forma for the Period Ended Period Ended Three Pro Forma Three Period En
Slide 25: Adjusted Net Income
ADJUSTED NET INCOME Annual Periods Interim Periods Pro Forma Predecessor Successor Pro Forma Period Ended Period Ended Year Ended Three Months Ended Adjustments for Pro Forma for the the year ended year ended (in thousands) Jan 31, 2020 Dec. 31. 2020 Dec 31, 2021 Dec 31, 2020 Dec 31, 2021 Dec 31, 20
Slide 26: Adjusted Diluted EPS
ADJUSTED DILUTED EPS Annual Periods Interim Periods Pro Forma Pro Forma Predecessor Successor Adjustments for Pro Forma for the Period Ended Period Ended Year Ended Three Months Ended the year ended year ended (in thousands) Jan 31, 2020 Dec. 31. 2020 Dec 31, 2021 Dec 31, 2020 Dec 31, 2021 Dec 31, 2