Slide 1: Q1 2022 Earnings Presentation
Q1 2022 EARNINGS PRESENTATION May 11, 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 & Q1 2022 Highlights
COMPANY OVERVIEW & Q1 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 and 33%+ Fortune 500 Rate Tenure OF TECHNOLOGY SOLUTIONS for Screening, Verifications, Safety, and Compliance Related to Human Capital OUR TECHNOLOGY OUR MARK
Slide 5: Q1 2022 Highlights
Q4 2021 Highlights Q1 2022 HIGHLIGHTS 1 Revenue growth of 44% driven by broad-based strength across key verticals and geographies Strong momentum from existing customer base growth, new customer additions, and upsell and 2 cross-sell, as well as high customer retention driven by our differentiated,
Slide 6: Attractive Long-Term Macrotrends
ATTRACTIVE LONG-TERM MACROTRENDS Composition of Total Workforce 2% 4% Silent Gen 25% 14% 37% 32% Boomers • Millennials and Gen Z are approaching half of the workforce 33% and are the largest group of job seekers 43% Gen X 35% 43% 5% 6% 21% Milennial • Gen Z employees are set to triple over the next
Slide 7: 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 8: Product Innovation: Staying on the Leading Edge
PRODUCT INNOVATION: STAYING ON THE LEADING EDGE Simple & API-first applicant experience Hire smarter. Onboard faster. 8
Slide 9: Committed to Supporting ESG Programs
COMMITED 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 9
Slide 10: Financial Results & Outlook
FINANCIAL RESULTS & OUTLOOK David Gamsey EVP, Chief Financial Officer
Slide 11: Q1 2022 Financial Results
Q1 2022 FINANCIAL RESULTS ($ in millions, except per share data) Revenues Adjusted EBITDA and Margin 1 Adjusted Diluted EPS 1 $189.9 $53.6 $0.22 +46.5% + 37.5% 3 9 % + 43.8% 3 7 % $132.1 $36.6 3 5 % $0.16 3 3 % 3 1 % 27.7% + 50 bps 28.2% 2 9 % 2 7 % 2 5 % Q1 2021 Q1 2022 Q1 2021 Q1 2022 Q1 2021 Q1 2
Slide 12: Consistent Track Record of Revenue Growth
CONSISTENT TRACK RECORD OF REVENUE GROWTH Revenues 1 $212.5 ($ in millions) $192.9 $189.9 COVID-19 $174.8 $156.5 $136.8 $132.1 $121.6 $123.8 $126.7 $109.7 $110.8 $105.0 Q1 '19 Q2 '19 Q3 '19 Q4 '19 Q1 '20 Q2 '20 Q3 '20 Q4 '20 Q1 '21 Q2 '21 Q3 '21 Q4 '21 Q1 '22 Year/Year Growth (%) 7.8% (Full Year) 1.
Slide 13: Consistent Track Record of Adjusted EBITDA Growth
CONSISTENT TRACK RECORD OF ADJUSTED EBITDA GROWTH Adjusted EBITDA and Margin 1,2 ($ in millions) Adjusted EBITDA Adjusted EBITDA Margin $69.4 COVID-19 $63.9 $56.3 $53.6 $43.3 $44.6 $36.6 $33.4 $33.5 $31.8 $31.7 $25.1 $27.2 31.6% 32.2% 33.2% 32.7% 30.1% 28.5% 27.7% 28.2% 27.4% 27.1% 25.1% 22.9% 24.6%
Slide 14: Cash Flow, Leverage & Capital Allocation
CASH FLOW, LEVERAGE & CAPITAL ALLOCATION Cash Flow From Net Leverage Capital Allocation Operating Activities at March 31, 2022 Priorities ($ in millions) ($ in millions) $41.6 Pursue strategic M&A opportunities + 75.4% • Vertical capabilities Debt $565 • International expansion $23.7 • Technology an
Slide 15: Raising Full Year 2022 Guidance
RAISING FULL YEAR 2022 GUIDANCE Prior Guidance Revised Guidance FY 2021 Actuals Y/Y % Growth ($ in millions) As of 3/23/22 As of 5/11/22 Revenues $712 $813 to $828 $820 to $835 +15% to 17% Adjusted EBITDA $226 $250 to $257 $253 to $259 +12% to 15% Adjusted Net Income $142 $156 to $161 $157 to $161 +
Slide 16: Closing Remarks
CLOSING REMARKS Scott Staples Chief Executive Officer
Slide 17: Investment Highlights
Q4 2021 Highlights INVESTMENT HIGHLIGHTS 1 Global leader in a large, fragmented, and growing market Impressive & loyal enterprise-focused customer base, diversified across resilient 2 and growing industry verticals due to verticalized go-to-market strategy Automation, artificial intelligence, and ma
Slide 18: Appendix
APPENDIX Supplemental Materials and Reconciliations to GAAP Measures
Slide 19: 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 20: 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 21: 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 Mar
Slide 22: Adjusted EBITDA Constant Currency
ADJUSTED EBITDA CONSTANT CURRENCY (Q1 2020 Pro Forma for Silver Lake Transaction) (Q1 2022 Revenue 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 Months Ended Mar. 31 2
Slide 23: Adjusted Net Income; Adjusted Diluted EPS
ADJUSTED NET INCOME ADJUSTED DILUTED EPS Successor Successor For the Quarters Ended For the Quarters Ended Mar. 31 2021 Mar. 31 2022 Mar. 31 2021 Mar. 31 2022 (in thousands) Q1 Q1 Q1 Q1 Net (loss) income $ (19,389) $ 13,013 Diluted net (loss) income per share (GAAP) $ (0.15) $ 0.09 (Benefit) provisi