Slide 1: Q2 2022 Earnings Presentation
Q2 2022 EARNINGS PRESENTATION August 4, 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 & Q2 2022 Highlights
COMPANY OVERVIEW & Q2 2022 HIGHLIGHTS Scott Staples Chief Executive Officer
Slide 4: Company Snapshot
COMPANY OUR CUSTOMERS 1 SNAPSHOT 33K+ ~93M 50%+ ~96% 12 Year Customers Screens of Fortune 100 Gross Retention Average LEADING GLOBAL PROVIDER OF and 33%+ Fortune 500 Rate Tenure HR TECHNOLOGY SOLUTIONS for Screening, Verifications, Safety, and Compliance OUR TECHNOLOGY OUR MARKET 1 850+ 2,875+ 650M+
Slide 5: Q2 2022 Highlights
Q4 2021 Highlights Q2 2022 HIGHLIGHTS 1 Revenue growth of 15% year-over-year driven by continued strength across the business Growth from existing customers, new customer additions, and upsell and cross-sell wins driven 2 by verticalized go-to-market strategy, innovative solutions, automation, and g
Slide 6: Product Innovation: Staying on the Leading Edge
PRODUCT INNOVATION: STAYING ON THE LEADING EDGE Simple & API-first Connect to applicant experience accounts Hire smarter. with simplicity Onboard faster. and speed 580M 600M 50M Verified!® National Criminal 36M 392M Repository of Records File 302M education and Repository of 10M work history 6M crim
Slide 7: Committed to Supporting ESG Programs
COMMITTED TO SUPPORTING ESG PROGRAMS Running our business with a sustainable mindset Engaging with our Committed to strong employees to create a governance on behalf more resilient business of our stakeholders 7
Slide 8: Financial Results & Outlook
FINANCIAL RESULTS & OUTLOOK David Gamsey EVP, Chief Financial Officer
Slide 9: Q2 2022 Financial Results
Q2 2022 FINANCIAL RESULTS ($ in millions, except per share data) Revenues Adjusted EBITDA and Margin 1 Adjusted Diluted EPS 1 $60.8 $0.25 $0.25 $201.6 +8.0% 4 0 % + 15.3% $56.3 3 8 % $174.8 32.2% 3 6 % 30.2% 3 4 % 3 2 % 3 0 % 2 8 % 2 6 % 2 4 % 2 2 % 2 0 % Q2 2021 Q2 2022 Q2 2021 Q2 2022 Q2 2021 Q2 2
Slide 10: Consistent Track Record of Revenue Growth
CONSISTENT TRACK RECORD OF REVENUE GROWTH Revenues 1 $212.5 ($ in millions) $201.6 $192.9 $189.9 COVID-19 $174.8 $156.5 $136.8 $132.1 $121.6 $123.8 $126.7 $110.8 $105.0 Q2 '19 Q3 '19 Q4 '19 Q1 '20 Q2 '20 Q3 '20 Q4 '20 Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1 '22 Q2 '22 Year/Year Growth (%) 1.1% (13.7%) 10.5%
Slide 11: Consistent Track Record of Adjusted EBITDA Growth
CONSISTENT TRACK RECORD OF ADJUSTED EBITDA GROWTH Adjusted EBITDA and Margin 1,2 ($ in millions) Adjusted EBITDA Adjusted EBITDA Margin $69.4 COVID-19 $63.9 $60.8 $56.3 $53.6 $43.3 $44.6 $36.6 $33.4 $33.5 $31.8 $31.7 $27.2 31.6% 32.2% 33.2% 32.7% 30.1% 30.2% 27.4% 27.1% 28.5% 27.7% 28.2% 25.1% 24.6%
Slide 12: Cash Flow, Leverage & Capital Allocation
CASH FLOW, LEVERAGE & CAPITAL ALLOCATION Cash Flow From Net Leverage Capital Allocation Operating Activities at June 30, 2022 Priorities ($ in millions) ($ in millions) $54.8 Pursue strategic M&A opportunities + 69.3% • Vertical capabilities Debt $565 • International expansion $32.4 • Technology and
Slide 13: Full Year 2022 Guidance
FULL YEAR 2022 GUIDANCE Prior Guidance Revised Guidance FY 2021 Actuals Y/Y % Growth ($ in millions) As of 5/11/22 As of 8/4/22 Revenues $712 $820 to $835 $823 to $835 +16% to 17% Adjusted EBITDA $226 $253 to $259 $254 to $259 +12% to 15% Adjusted Net Income $142 $157 to $161 $158 to $161 +11% to 13
Slide 14: Closing Remarks
CLOSING REMARKS Scott Staples Chief Executive Officer
Slide 15: Investment Highlights
Q4 2021 Highlights INVESTMENT HIGHLIGHTS 1 Global leader in a large, fragmented, and growing market Diversified enterprise-focused customer base across resilient and growing 2 industry verticals due to verticalized go-to-market strategy Digital technology, automation, artificial intelligence, and ma
Slide 16: Appendix
APPENDIX Supplemental Materials and Reconciliations to GAAP Measures
Slide 17: 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 18: 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 19: Structural Tailwinds Support Sustainable Growth and Resiliency
STRUCTURAL TAILWINDS SUPPORT SUSTAINABLE GROWTH AND RESILIENCY (in thousands) BLS Hiring Volume Growth by Industry Seasonally Adjusted; 10-year CAGR ('11-'21) 8,500 5.2% 7,500 3.9% 4.5% r CAGR (’11-’21): 3.9% ea .3% Hires 10-y r CAGR (’11-’21): 7 Total 3.9% ea Quits 10-y 6,500 2.9% 5,500 4,500 3,500
Slide 20: Adjusted EBITDA
ADJUSTED EBITDA Predecessor Successor For the Quarters Ended Period Ended Period Ended For the Quarters Ended LTM 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 Mar 31, 2022 Jun
Slide 21: Adjusted EBITDA Constant Currency
ADJUSTED EBITDA CONSTANT CURRENCY (Q1 2020 Pro Forma for Silver Lake Transaction) (Q2 2022 Revenue & Adjusted EBITDA Impact) Pro Forma Successor Predecessor Successor Adjustments for the Period Ended Period Ended Three Pro Forma Three For the Quarter Ended Jan 31, 2020 Mar 31, 2020 Months Ended Mont
Slide 22: Adjusted Net Income; Adjusted Diluted EPS
ADJUSTED NET INCOME ADJUSTED DILUTED EPS Successor For the Quarters Ended Successor Jun 30, 2021 Jun 30, 2022 For the Quarters Ended (in thousands) Q2 Q2 Jun 30, 2021 Jun 30, 2022 Net income Q2 Q2 $ 3,770 $ 14,236 Diluted net income per share (GAAP) $ 0.03 $ 0.09 Provision for income taxes 3,063 5,4