First Advantage's 2024 Full-Year Financial Performance Review

First Advantage Reports Financial Results for 2024

Full Year 2024 Highlights

• Revenues totaled $860.2 million.
• The company faced a net loss of $(110.3) million, translating to a net loss margin of (12.8%). This figure reflects $130.5 million in expenses linked to the acquisition of Sterling Check Corp.
• Adjusted net income stood at $123.7 million, highlighting positive adjustments despite the losses.
• Adjusted EBITDA reached $249.3 million, with an adjusted EBITDA margin of 29.0%.
• GAAP diluted net loss per share was $(0.74), which factors in $0.66 per share in acquisition-related expenses.
• Adjusted diluted earnings per share were reported at $0.82.
• Operating cash flow was reported at $28.2 million, while adjusted operating cash flows amounted to $164.5 million, after adjusting for $136.3 million in cash costs directly linked to the acquisition.
• The acquisition of Sterling was successfully closed.

Fourth Quarter 2024 Performance

Highlights from the Fourth Quarter

• Revenues for the quarter hit $307.1 million.
• The net loss for the quarter was $(100.4) million, resulting in a net loss margin of (32.7%) primarily due to $97.1 million in acquisition-related expenses.
• Adjusted net income for the quarter was recorded at $30.2 million.
• Adjusted EBITDA was reported at $82.9 million, reflecting a 27.0% margin.
• GAAP diluted net loss per share stood at $(0.62), while adjusted diluted earnings per share were reported at $0.18.
• This quarter saw cash flows from operations reflecting a negative $(85.7) million; however, adjusted operating cash flows were $39.4 million.

Guidance for 2025

Looking Ahead to 2025

• The company has set ambitious guidance for 2025, anticipating revenues between $1.5 billion and $1.6 billion.
• Adjusted EBITDA is expected to range from $410 million to $450 million.
• Projected adjusted net income is estimated to fall between $152 million to $182 million.
• Adjusted diluted earnings per share guidance is projected to be between $0.86 to $1.03.

“2024 was a milestone year for First Advantage as we advanced our strategy with the transformational acquisition of Sterling,” shared Scott Staples, Chief Executive Officer. “We have actioned $20 million in run-rate cost synergies and adjusted our synergy target to a range of $60 million to $70 million. Our focus on growth through new technologies and innovations continues to enhance our business model.”

“Despite an uncertain macroeconomic environment, we delivered solid results throughout the year. Our combined company generated approximately $1.51 billion in revenues and nearly $397 million in Adjusted EBITDA,” Staples noted, validating the company's robust execution and successful integration efforts.

Conclusion

As we look forward, First Advantage remains committed to its vision of optimizing the background screening and identity verification industry. With the successful integration of Sterling Check Corp. and the guidance for 2025, the organization is poised for growth and continued innovation.

Frequently Asked Questions

What were First Advantage's total revenues for 2024?

The total revenues for First Advantage in 2024 were $860.2 million.

What is First Advantage's adjusted EBITDA for the fourth quarter of 2024?

For the fourth quarter of 2024, First Advantage reported an adjusted EBITDA of $82.9 million, with a margin of 27.0%.

How did the acquisition of Sterling Check Corp affect First Advantage's finances?

The acquisition resulted in substantial expenses amounting to $130.5 million in 2024, impacting net income but expected to yield significant synergies in upcoming years.

What guidance has First Advantage provided for the year 2025?

First Advantage anticipates revenues of $1.5 billion to $1.6 billion, adjusted EBITDA of $410 million to $450 million, and adjusted diluted earnings per share between $0.86 and $1.03 for 2025.

Who can be contacted for investor relations at First Advantage?

Investors can reach out to Stephanie Gorman, Vice President of Investor Relations at First Advantage via email at Investors@fadv.com or by calling (888) 314-9761.

About The Author

My name is Dylan Bailey, and I am 28 years old. I am an author and an expert on the stock market who specializes in publicly traded companies. Early fascination with the stock market inspired me to seek a finance degree and then delve deeply into the world of stocks. I have developed over the years my abilities to spot investment prospects, assess business performance, and analyze market trends.

My books and articles try to help regular investors understand the nuances of the stock market. Anyone can, in my opinion, make wise investment choices and succeed financially if they have the correct information and resources. In my writing, I combine in-depth research with practical insights and advice that can be put into action. This is done with the intention of assisting readers in navigating the constantly shifting landscape of publicly traded companies.

In addition to writing, I also host webinars and workshops, where I give presentations and share my knowledge with a wider audience. I also write for top financial journals and show up as a guest analyst on financial news shows. I like to travel, spend time with my family, and keep active by playing different sports when I'm not buried in market research.

My goal is to enable people to choose wisely and consciously in their investments, so taking charge of their financial futures. By my work, I hope to create a community of informed and self-assured investors prepared to take advantage of the chances presented by the stock market.

Contact Dylan Bailey privately here. Or send an email with ATTN: Dylan Bailey as the subject to contact@investorshangout.com.

About Investors Hangout

Investors Hangout is a leading online stock forum for financial discussion and learning, offering a wide range of free tools and resources. It draws in traders of all levels, who exchange market knowledge, investigate trading tactics, and keep an eye on industry developments in real time. Featuring financial articles, stock message boards, quotes, charts, company profiles, and live news updates. Through cooperative learning and a wealth of informational resources, it helps users from novices creating their first portfolios to experts honing their techniques. Join Investors Hangout today: https://investorshangout.com/

The content of this article is based on factual, publicly available information and does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice, and the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. This article should not be considered advice to purchase, sell, or hold any securities or other investments. If any of the material provided here is inaccurate, please contact us for corrections.