Advantage Solutions Inc. · NASDAQ:ADV
Advantage Solutions — Q3 2024 Earnings Presentation
21 slides from Advantage Solutions's earnings presentation, Mar 7, 2025
Slide 1: 3Q 2024 Earnings
3Q 2024 Earnings November 7, 2024
Slide 2: Disclaimer: Forward-Looking Statements
Disclaimer Forward-Looking Statements Certain statements in this presentation may be considered forward-looking statements within the meaning of the federal securities laws, including statements regarding the expected future performance of Advantage's business and projected financial results. Forwar
Slide 3: Healthy 3Q'24 Performance
Healthy 3Q’24 Performance Adjusted EBITDA growth driven by healthy performance across Experiential and Retailer Services Transformation remains on track with continued progress made to improve operating efficiency Paid down ~$80M of debt Remain confident in achieving full-year guidance Revenues(1) -
Slide 4: Scaled Platform and Full-Service Capabilities Increases Efficiency with Clients
(1) Circana 2023. | (2) Euromonitor 2023 Note: Unless otherwise noted, figures as of December 31, 2023 (3) Advantage Solutions’ top 100 clients by revenues, which represent over 50% of revenues Brands Retailers 4,000+ Clients 70,000+ Associates 100,000+ Retailer Locations Advantage Clients include >
Slide 5: Competitive Differentiation Attracting New Clients and Expanding Services
Competitive Differentiation Attracting New Clients and Expanding Services with Current Clients Branded Services Retailer Services Experiential Services Recent Activity Expanded relationship with start-up energy beverage company Expanded services with a beauty company to collaborate on brokerage acti
Slide 6: Significant Actions to Simplify, Streamline and Improve the Business
Significant Actions to Simplify, Streamline and Improve the Business Operating Effectiveness Modernizing Technology AI Elevating Omnichannel Deploy new technologies for increased speed and accuracy Improving operating efficiency Continued progress made on ERP replacement, modernizing cybersecurity,
Slide 7: Growth During a Year of Investment
Growth During a Year of Investment 1 2 3 Meeting Clients’ Needs Providing differentiated capabilities to drive consistent client results Strengthening Position as Provider of Choice Transformation on track; investing to enhance commercial capabilities through data-driven solutions while optimizing o
Slide 8: Resilience in a Dynamic Market Environment
Resilience in a Dynamic Market Environment Improved profit trajectory for Branded Services through increased client activity, better execution and gains in efficiency Experiential Services increased events per day due to strong client demand, including a timing benefit from the fourth quarter Improv
Slide 9: Efficient Execution and Labor Utilization Improved Profit Trajectory
Efficient Execution and Labor Utilization Improved Profit Trajectory 3Q’24 Highlights $ in millions Y/Y growth Revenues (Continuing Operations) $ in millions Y/Y growth % margin(2) Adjusted EBITDA (Continuing Operations) Excludes the impact of the deconsolidation of European JV in 4Q’23 and pass-thr
Slide 10: Strong Client Demand Drove Performance
Strong Client Demand Drove Performance Strong client demand drove revenue and Adjusted EBITDA growth Average events per day grew ~11% year-over-year, which included a shift in activity from the fourth quarter Recently expanded presence in the beauty category for direct-to-home sampling by adding a n
Slide 11: Growth from Increased Activity and Solid Execution
Growth from Increased Activity and Solid Execution Increased client activity for merchandising services, including a shift in activity from the fourth quarter Solid execution managing talent deployment and overall costs aided by price discipline Recently expanded private brand services beyond grocer
Slide 12: Strengthening Balance Sheet, Disciplined Spending
Strengthening Balance Sheet, Disciplined Spending As of 9/30/2024 $ in millions Maturity Rate Outstanding First Lien Term Loan 2027 S+4.25%(2) $1,109 Senior Secured Notes 2028 6.50% 615 Total Gross Debt $1,724 Less: Cash and Cash Equivalents (196) Total Net Debt(1) $1,528 3.9x Net Debt / LTM Adj. EB
Slide 13: On Track to Deliver 2024 Guidance
On Track to Deliver 2024 Guidance $ in millions, unless otherwise noted 2024 Guidance (on a continuing operations basis) Revenues Low single digit growth Adjusted EBITDA Low single digit growth Adjusted UFCF Conversion(1) 55%-65% of Adj. EBITDA (High-end of the range) Net Interest Expense $150 - $16
Slide 14: Appendix
Appendix & Advantage Solutions.
Slide 15: Net Income to Adjusted EBITDA from Continuing and Discontinued Operations
Net Income to Adjusted EBITDA from Continuing Operations and Discontinued Operations Non-GAAP Reconciliation (1/7)
Slide 16: Operating Income to Adjusted EBITDA by Segment (2/7)
Operating Income to Adjusted EBITDA by Segment Non-GAAP Reconciliation (2/7)
Slide 17: Operating Income to Adjusted EBITDA by Segment (3/7)
Operating Income to Adjusted EBITDA by Segment Non-GAAP Reconciliation (3/7)
Slide 18: Revenues to Revenues net of pass-through costs
Revenues to Revenues net of pass-through costs Non-GAAP Reconciliation (4/7)
Slide 19: LTM Adjusted EBITDA and Adjusted Unlevered Free Cash Flow
LTM Adjusted EBITDA and Adjusted Unlevered Free Cash Flow Non-GAAP Reconciliation (5/7)
Slide 20: Net Debt Non-GAAP Reconciliation
Net Debt Non-GAAP Reconciliation (6/7)
Slide 21: Footnotes Non-GAAP Reconciliation (7/7)
Footnotes Non-GAAP Reconciliation (7/7) (a) Represents non-cash compensation expense related to performance stock units, restricted stock units, and stock options under the 2020 Advantage Solutions Incentive Award Plan and the Advantage Solutions 2020 Employee Stock Purchase Plan. (b) Represents exp