Slide 1: Q4 and Full Year 2022 Earnings Presentation
Q4 AND FULL YEAR 2022 EARNINGS PRESENTATION February 28, 2023
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 & Full Year 2022 Highlights
COMPANY OVERVIEW & FULL YEAR 2022 HIGHLIGHTS Scott Staples Chief Executive Officer
Slide 4: Company Snapshot & Full Year 2022 Highlights
COMPANY SNAPSHOT OUR CUSTOMERS 1 & FULL YEAR 2022 HIGHLIGHTS 33K 100M+ 50%+ 97% 13 Year Customers Screens of Fortune 100 Gross Retention Average and ~33% Fortune 500 Rate Tenure LEADING GLOBAL PROVIDER OF EMPLOYMENT BACKGROUND SCREENING AND VERIFICATION SOLUTIONS OUR TECHNOLOGY OUR MARKET 1 935+ 3,0
Slide 5: Revenue Breakdown by Vertical
REVENUE BREAKDOWN BY VERTICAL Technology Transportation Small Business 3% 22% 4% Manufacturing and Other Industrials 7% High Volume Business and 11% Hiring Retail and Professional Services Focused 20% E-Commerce Verticals 12% 4% 12% Financial 5% Services Healthcare Hospitality General Staffing Note:
Slide 6: Financial Results & Outlook
FINANCIAL RESULTS & OUTLOOK David Gamsey EVP, Chief Financial Officer
Slide 7: Q4 2022 Financial Results
Q4 2022 FINANCIAL RESULTS ($ in millions, except per share data) REVENUES ADJUSTED EBITDA AND MARGIN 1 ADJUSTED DILUTED EARNINGS PER SHARE 1 40% $212.5 $212.6 $70.3 $0.31 +0.0% $69.4 38% +1.2% 36% -3.2% $0.30 34% 33.1% 32% 32.7% +40 BPS + 1.8% 30% Constant 28% Currency 26% 24% 22% 20% Q4 2021 Q4 202
Slide 8: FY 2022 Financial Results
FY 2022 FINANCIAL RESULTS ($ in millions, except per share data) REVENUES ADJUSTED EBITDA AND MARGIN 1 ADJUSTED DILUTED EARNINGS PER SHARE 1 $810.0 $1.03 +13.7% +10.0% $248.9 $1.01 +2.0% $226.3 39% $712.3 37% -110 35% BPS + 15.2% 33% Constant 31% Currency 31.8% 30.7% 29% 27% 25% 2021 2022 2021 2022
Slide 9: Consistent Track Record of Revenue Growth
CONSISTENT TRACK RECORD OF REVENUE GROWTH Revenues 1 ($ in millions) 3-year Revenues CAGR 18.9% total; 17.1% organic 2 $212.5 $212.6 $201.6 $206.0 $192.9 $189.9 $174.8 $156.5 $136.8 $132.1 $110.8 $105.0 Q1 '20 Q2 '20 Q3 '20 Q4 '20 Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1 '22 Q2 '22 Q3 '22 Q4 '22 Year/Year 1.1
Slide 10: Consistent Track Record of Adjusted EBITDA Growth
CONSISTENT TRACK RECORD OF ADJUSTED EBITDA GROWTH Adjusted EBITDA and Margin 1,2 3-year AEBITDA CAGR 26.2% 3 ($ in millions) $70.3 $69.4 $63.9 $64.2 $60.8 $56.3 $53.6 $43.3 $44.6 $36.6 $31.7 $27.2 32.2% 33.2% 32.7% 33.1% 30.1% 31.6% 30.2% 31.2% 28.5% 27.7% 28.2% 24.6% Q1 '20 Q2 '20 Q3 '20 Q4 '20 Q1
Slide 11: Cash Flow, Leverage & Capital Allocation
CASH FLOW, LEVERAGE & CAPITAL ALLOCATION Cash Flow From Net Leverage Capital Allocation Operating Activities at December 31, 2022 Priorities ($ in millions) ($ in millions) Pursue strategic M&A opportunities Total • Vertical capabilities $212.8 • International expansion + 43% Debt $565 • Technology
Slide 12: Introducing Full Year 2023 Guidance
INTRODUCING FULL YEAR 2023 GUIDANCE ($ in millions, except per share data) FY 2022 Actuals FY 2023 Guidance Y/Y % Growth Revenues $810 $770 to $810 -5% to 0% Constant Currency Revenues $774 to $814 -4% to 0.5% Adjusted EBITDA $249 $240 to $255 -4% to 2% Adjusted Net Income $156 $145 to $155 -7% to -
Slide 13: Closing Remarks
CLOSING REMARKS Scott Staples Chief Executive Officer
Slide 14: Investment Highlights
Q4 2021 Highlights INVESTMENT HIGHLIGHTS 1 A global leader in a large, fragmented, and growing market Diversified enterprise-focused customer base across attractive industry 2 verticals with focus on high volume hiring Digital technology, automation, artificial intelligence, and machine 3 learning e
Slide 15: Appendix: Supplemental Materials and Reconciliations to GAAP Measures
APPENDIX Supplemental Materials and Reconciliations to GAAP Measures
Slide 16: 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 • New divisio
Slide 17: Long-Term Organic Growth Targets
LONG-TERM ORGANIC 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
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 includes incremental professional service fees incurred related to the initi
Slide 19: 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 Adjustments for the Period Ended Period Ended Three Pro Forma Three Jan 31, 2020 Mar 31, 2020 Months Ended Months Ended (in thousands) Q1 Q1 Ma
Slide 20: Constant Currency Revenues and Adjusted EBITDA
CONSTANT CURRENCY REVENUES CONSTANT CURRENCY ADJUSTED EBITDA (a) Constant currency Adjusted EBITDA is calculated by translating current period amounts (a) Constant currency revenue is calculated by translating current period amounts using prior-year period exchange rates. using prior-year period exc
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 2021 February refinancing and repayment of the Company’s Successor First Lien Credit Facility and Successor Second Lien Credit Facility, resp
Slide 22: Adjusted Diluted Earnings Per Share
ADJUSTED DILUTED EARNINGS PER SHARE (a) Represents the loss on extinguishment of debt and non-cash interest expense related to the amortization of debt issuance costs for the 2021 February refinancing and repayment of the Company’s Successor First Lien Credit Facility and Successor Second Lien Credi