FA - Earnings call 2 2021 | First Advantage Corporation

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the First Advantage Second Quarter 2021 Financial Results Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions] I would now like to hand the conference over to your speaker today, Stephanie Gorman, Vice President of Investor Relations. Please go ahead.

Stephanie Gorman

Thank you, Angie. welcome our Advantage's second and Conference Financial everyone, highlighting Call, quarter morning, to Inaugural First Results Good XXXX results.

for to will our presentation today's is offering find the excited Relations us to section of June. accompany are have press be Investor you new Investors recorded replay many website. being We will website, shareholders In today on the after webcast the release successful discussion. at public earnings available This our initial our and end of so joining and slide

or Before our in conference our this to remarks, the Relations financial your time extent presenting the First Reconciliations of to statements. Throughout we of not CEO; our remarks, due earnings today statements June any forward-looking in I factors. These comparable today questions. I measures remind financial have from call measures directly release Staples, today's forward-looking our public performance. call to now appear GAAP to press variety with which we non-GAAP implied statements. We our on a to of available need After to periodic update expressed to filings the financial SEC, may Advantage's to our on unreasonable undertake will prepared of include hand detail our do guarantees XXXX, the part our in also Investor our be begin SEC. in be Gamsey, non-GAAP our results David filings call, our the from XX, will are will and offering may as with by in are prepared at everyone discussing materially Actual website initial Scott. factors prospectus that obligation factors forward-looking statements will and measures. their efforts presentation, updated take future for joined Such most investors.fadv.com. I'm without not available forward-looking differ discussion discussed including over we dated time more are time and those Scott CFO. such

Scott Staples

committed their screening, confidence and many robust and for of under you, discussing unit worldwide to ahead. company. to performance, and traded safety first with Exchange serve we shareholders technology the a of I to Welcome compliance forward I our over team in market customers and on turn, and morning, our remain Slide incredibly am Stock grow trading, cap of First million Thank and our shareholder second $X we the at This for whose above we value. I resulted public our closed quarter First milestone First IPO continuing the offering as range earnings priced XX.X conference publicly $XX to related upsized meeting offering want a a solutions at symbol ticker for you their is provide call capital. million. On profitably the completed customers the to and enables the to June, for in Global company, to our value In successful launch FA. hard proud call The approximately exceptional business X. good top to days, major approximately with XX% a our of everyone. a look company. Starting Select proceeds shares of billion. day our Stephanie, and Advantage thank work of weeks indicated per Advantage company NASDAQ listed on price share in our speaking giving first XX,XXX $XXX.X was Market to to our which driving net Advantage verifications, in months

Slide X. is overview company a investors, new our on For included

technology of related verification, and human capital. to a global for safety leading screening, provider are We solutions compliance

is what platform, customers this our unique deliver core our We which white delivery further ability technology includes ones proven where allowing and our market out. additional a tremendous serve through technology technology fragmented our value-added and accomplish addressable industry differentiate a market solutions, therefore, with have amount robust growing winning growing single to capabilities billion, in We proprietary and to new verticalization, space, global data, state-of-the-art and us share. capabilities. We a of $XX and capture market of large total stand

retention customers customers today. Our XX XX%. In of top compliance our and we XX handle screens to include as demonstrates And high risk relationships scale million companies. the placing well management XXXX technology's our base, long-tenured averaging Fortune as XX XXX rate across on over ability which of companies the are among XXX our years completed customer alone, a reinforces enjoy and we gross importance

XX-month the million, grew of ending from which from American to revenues June International. last $XXX XXXX, markets were XX% we and XX% Over approximately XX% period, North XX,

Over XX-month XX%. of XX% period, adjusted EBITDA the strong grew adjusted and achieved same a we EBITDA margin year-over-year

on X at Advantage America. positions our Chair Judith Committee who from CEO Nominating of Girls established our have focus Corporate of Committee, to and and currently high-performing governance for And Clark, our company served and the & Corporate Nominating are serves & Oracle. priorities serves of Executive our adding Chair Susan and previously Environmental, Club Social who Committee, Compensation Bell, and that In Audit Governance office who Committee, managing organizations. a second Sim, Young. James previously differentiate further held within was First the sits continue other and and President competitors. Two We of our quarter, on as sits Atlanta our on board, public large company public currently strategies of Marketing Ernst as drive stakeholders on and Committee the independent or serves Boys have X our Audit directors. partner diversity. and Governance our was on is we our Governance All boards, new hold value leadership Senior

to Next, X. on moving Slide

innovation some from technology I second highlights Let share second First highlights a from leader. product quarter continue and to as an It's time performance. and at we share me Advantage quarter. the our journey exciting insights some want as our customer-focused key

turnover will of and hiring and been the be trends beneficiary worker mobility. have increasing creation, new and including greater we favorable to continue and certain job macroeconomic jobs First, growth, tailwinds,

to increased experienced momentum existing verticals growth upsell base levels growth Customers to customers, included broad-based increase across depth hiring momentum. requirements, density driven we from This screening and also by of cross-sell to hiring security. and robust and refer risk screening and and breadth Second, package and continue as continued geographies. key our greater management and from we the their provide screening even which of

continued Third, in fueled new by wins teams, and capabilities. verticalized global go-to-market customer we our solutions differentiated technology experienced strength

leader robotic First of process March utilization want the have expansion Advantage substantial in rebound customers U.K. the services than market to a proprietary data from have and international which second in These and chosen further great previously by margin in new have Advantage. Fourth, sooner markets to quarter adds BPO the from partner screening and leverage. And technology, establishes U.K. XXXX. at the our continued level financial business industries. international part sixth, the international automation, to as came We revenues have breadth our in acquisition, anticipated. Fifth, recent seen some I intelligent that IT we we and our capabilities a and XXXX, COVID-impacted This routing services, efficiencies customers strong back driven with of highlight higher First we seen large a of of end acquisition at G&A operational completed

the a moments performance largest, QX our spend through us We platform world. takes few technology like to provide our differentiated in on business and highlights, David would many sophisticated as Slide companies I mission-critical most software the describing shown for Before X. and of

we human proprietary global cost technology deliver using our compliance. We leverage single us. for and to comes things technologies have artificial we our more to or customers improvement often product faster customer's are core focus effectively. defense to more driving automation, Our of strategy for screenings, first savings as been automation our faster intelligence efficient in pioneers and platform risk technology process do cost process core safety, on protection workplace Robotic these capital line RPA, management better, when and margin and and and brand it is to and

enhance turnaround our screening Our own give times. great leverage us proprietary databases and

third-party where built to have and/or connections in and the we automated U.S. we sources Additionally, data, both globally. data XXX-plus have integrated

systems human tracking We XX and management have built third-party similar integrations applicant with capital platforms. software over

SAP, companies and for Oracle, drive the we Salesforce, integrations to First certified have customer partners Workday, retention. customers and iCIMS increase leads dozens Advantage with and like loyalty value add of others, and Our include partners these

we In Our are today's younger earning people different person technology increasing more changing use flexible workforce, are better X changes previous example, we the and us. in freelancers pursuit and environment, work cases, creates and screen generations. the in companies jobs to ways workers, or development the supports are because means are a or macro frequently, millennials changing want X and culture workplace which career year workers, the differently of could higher seeing jobs to same along for for where of They faster likely opportunity switch in of with this freelancing contracting. than wages, work generations and there contractors single contingent more in are fit. This, at people

is we screens with global to smaller talent a with world are -- from the Additionally, place able territories. globe multinational today, in the and XXX complete countries and over over all corporation sourcing

one education We of applicant or experience a may applicants can educated across in an help the have internationally. customers country finding global from be been enterprise the few be and their country. companies we have different people reach another geographies, screen but companies Our and to are locally could yet that validate

the strategic volumes provides the us coverage, one large highest a and differentiated platform value in the benefits, scale proposition and a including of ability as satisfaction data. single This in such a capabilities ratings customer tech accumulate ultimately to number helps global curate industry. Our deliver of of differentiated

business. go-to-market customers strategy to segments upsell customers, on sales with verticalized use enables in sectors X and successful driving experts us drives product go-to-market This vertically to our product data new on in results with the optimization. It summary, out and in thrilled Slide aligned direction new these onboarding customer is we benchmarking road product and verticals develop products that matter X, discuss strategy enables our accordingly. and The and our strategy us transformational and cross-sell and our on also be specific practices, differentiate maps. industry years growth our helps our input teams of I'll and In industry-specific consult rolled strategy Next, into go-to-market hiring subject best to the and are a focused About we market, providing our opportunities our vertical us aligned or sales. approach. ago, industry vertical fuels the

call year review XXXX the our guidance. over turn results to David the our the for for quarter will CFO I and Gamsey Next, full to David?

David Gamsey

good you, everyone. Thank and morning, Scott,

We customers growth. organic through XXXX. Increases reported $XX.X in and and the million quarter $XX.X of across organic million the that of and QX the XX. the over year half in respectively. particularly benefited Existing revenues increase accelerated We from Slide of existing verticals hiring $XXX.X customer from XXXX growth, including up our base XX% growth to period, strong continued broad-based key made second and second for up was Turning picked a quarter, of and prior million XX% new geographies. our customer has

We effects quarter the by the COVID-XX First during and impacted market also Advantage which lapped broader pandemic. of the the was significantly

growth addition contributed in attributed as an EBITDA a less to well margin minimal growth, additional up was from resulted year-over-year our the offset quarter. expense. This taxes. quarter. We $X flow-through in by for was quarter all adjusted second and revenues which partially mentioned or adjusted or increased impacted higher with a outstanding XX.X%, in the $XX.X automation, of EBITDA the and together This in interest XXXX foreign was $X.X to quarter cost benefit, increase resulted In diluted our leverage. year lower the to net This of in share in just for favorable quarter interest per in higher the million, organic by million positively was diluted revenues per to the expansion had compared acquisitions in $X.XX increase, XX% as of $XX.X XXXX. comparable $X.XX discipline second rates, prior of lower debt foreign which the $XX.X margin quarter. Adjusted impact reflecting operating share factors of of along XX.X% revenues currency income Also million than million was the included the million lower from

several higher and we revenues proven XXXX holiday shortly. Financially, primarily QX and second growth of rate some a companies rates foreign the model of as in have margin a of that higher over quarter have sense ahead tax tax track our the More of respectively. September ramp We XXXX XX.X% we to Slides XX, and the by revenue and our to job in results record U.K. On you give of effective going demonstrated margins the and expansion. about in in caused as an We the overall the financial EBITDA to adjusted The November included revenues through it season. continue in QX the and XXXX pandemic hiring adjusted our to XXXX we items, and growth XX market. see XX% expand resiliency the including consistent grow long throughout impacted very economy and time of corporate despite challenging and business. both XXXX, COVID-XX a by Our back that quarterly typically and seasonality the of year increase of rate disruption in was our tax driven were

long-term by very have We retention contracts financial and a supported rates. high model predictable

customer and deep on in we verticals relationships, focus attractive which from our upsell, growth Our the customers, our cross-sell enterprise operate. benefits

verticalized continues our share market sales drive to force gains. Additionally,

Slide Now moving XX. to

excellent initiatives. have through expanding adjusted an of primarily our We record margins track EBITDA X

First, our of increasing our we proprietary databases are utilization and our with data expanding providers. third-party automation

Second, and our enhance we initiatives, customers' technological turnaround robotic which automation process on including are increase drive efficiencies, innovations, operational accuracy times. focused

we team have infrastructure. network vendor to fourth, our that we optimize continue strong create cost savings. and G&A a Third, our additional to procurement leverage continues And

we costs. between strategic largely Additionally, disciplined to ability and we while invest and control underscores to And have We as and associated and efficiency investments to structure in the flex is count. operations variable head our G&A in sales our continue demand. costs operations accommodate cost This therefore, leveraging technology tightly fluctuations balance our cost flexible.

Slide the growth receivable XX% higher prior our Turning cash to a flows, the was flows allocation on quarter accounts quarter. now sheet cash after $XX.X increase in quarter, year capital second the to balance operating revenues. and considering XX. second This million, In over attributable were

received property equipment approximately Additionally, under our lien net the outstanding of after XXXX. does IPO, development offering capitalized $X.X million $XXX.X which used June until and during we prepay net spent not to of purchases mature a million software of our million costs facility, we proceeds the credit with and connection on $XXX quarter. In We first expenses. proceeds portion

due have prepayment, under intend of result proceeds agreement. We a quarterly balance no general we As mandatory the this purposes. to remaining of the the payments use for principal corporate

adjusted the second of pursue leverage equivalents selectively strategic increased closing X.Xx We extended of facility. and we million. M&A the cash LTM from we million debt million lowered million net have with XXXX. from our end EBITDA $XXX.X with balances capacity the we maturity to Additionally, total million, opportunities. plan $XXX cash July outstanding facility borrowing to not the of date $XX do this of ended connection quarter $XXX.X to credit of the the approximately XX, XXXX. In We our $XXX.X and With to under X.Xx at under IPO, any and revolving

were S&P Global. upgraded Additionally, First Advantage in following debt the credit Moody's improved by of of the ratings our IPO, profile, recognition and

like Next, allocation our capital would to priorities. review I

technologies. and and or potential to steady opportunities strong acquisition and relationships, evaluate data or expected see our to include basis. are of select evaluate will our expand M&A on a services generate with strategic accretive a we add and commercial new that to from into additional These we to continue align opportunities flow or priorities be industry continue vertical on adjacent internationally return First, are gain complementary might expertise, opportunities regular opportunities investment. We

opportunities, continue organic product development internal growth. focused to that and on we projects would other Second, be investment new increase

focused through enhancing sheet focused our on and to strong capital also on sales, leadership solution balance structure. automation to we conservative are engineering maintaining success. And continue in and continuing position technology invest be finally, a and and customer a while industry We maintaining

goal profile EBITDA, Our to flexible variations to acquisitions. adjusted temporary maintain is generally of as any leverage range potential a Xx result a X a net within of targeted to long-term future absent debt

Next, is our XXXX. XX, on for full year Slide guidance

on described provided Lake the forma XXXX XX, further refinancing, that the XX-Q. and Silver presentation note context, in related please our XXXX, which transaction and slide As is pro comparison January the for is

guidance. to Turning

the supporting of strong additional million base $XXX cross-sell customer and wins. to upsell, high geographies, revenues XXXX We in range and $XXX expect continued macroeconomic continuing industry retention customers, growth, favorable to existing strength million, reflecting to tailwinds, verticals across trends broad-based generate new hiring

also we experiencing, compared growth as in revenue growth half second resulting above lower the percentage. In guidance than percentage the screening rate anticipate their pandemic. which Our year, have demand XX% growth acquisition our were we we business XX% completed the to mid-single of second from range coming in been U.K. Overall, revenue end March, in long-term the higher year, includes the half the expected full the contribution we will basis year target of revenue strong the the had in year we projected end severe XXXX contribute of of full at in we COVID-XX internally year to expect continuation of the our the a the more which earlier digits impacts lapping XXXX. a although QX, to than of time higher the in is during range, of on

While additional we we of call providing peers, provide on given plan quarterly XXXX. our guidance, anniversary don't impacts of color the but on with COVID consistent some will this on most

and generally see to XXXX, in more seasonal in especially holiday home revenues and clear QX because customers. a on essential transportation usually delivery, is season. This we because hiring notably expect distributed QX We experienced XXXX QX and QX what be QX in high we a compared accelerating to the where evenly is in basis dollar of of between growth might retail

is both percentage We targeted affect the anticipated the that investments be offset rate will additional revenues, $XXX and term, our we the and incremental to growth XXXX, business, internally quarterly increased double revenue see in rate the between projections and that beyond by public our higher the digits. half we organic strong the year and EBITDA earlier high from internal XXXX efficiencies costs of our are operating sales. Both automation, anticipate exceeding technology year. in our in XXXX $XXX adjusted leverage, single EBITDA continued So be half base rates, in are percentage driven there had in the than digits such second while longer-term momentum and by flow-through is in there continued target. Longer adjusted effects million prior projected company low growth second and strong product, million, revenues additional new to growth

We XXXX million, expect and $XXX to be offset positively net income by adjusted between million which and by our lower partially interest will be lower outstanding taxes. $XXX higher foreign impacted rates debt

anticipate also year to range to of illustrates in We impact in applicable XX.X%, adjusted second capitalized income of that that in rate our previously ongoing $XX range U.K. includes tax pretax capital on absent XXXX tax rate This by the would which XX.X% and the expenditures to several half costs. We be mix, based million mentioned the rate our the development driven million, rates foreign the including full other will effective believe increase effective the $XX be assets. adjusted tax of adjusted geographic the items, tax software corporate in tax

XX, $XXX have million U.S. of federal We continue to approximately carryforwards XXXX. of as NOL June

Scott. call tax payments million with cash back our year will expect approximately that, turn for the be to I full to We over $X XXXX. And

Scott Staples

very presentation about want excited leader XX future. I Thank a we growing to Slide are on our large, today you, summary, that and market. In a I our global David. saying conclude in fragmented am by

environment. a macroeconomic are tailwinds fueled are We driving by hiring robust that

market. increasingly embedded in mission-critical differentiated an technology solutions Our platforms and provides complex

diversified Our and exposure. deep verticalized industry go-to-market drives customer relationships strategy long-term

deep we is of a industry model record. team by and track culture a leadership a knowledge a have and We company driven And have consistent our financial innovation. possesses resilient seasoned that

margin the Our up which line will flow. At products cash operator and customers, we create open significant growth, our we to this the to solutions ask to questions. expect value continue our time, for and revenue for your drive expansion

Operator

the from of [Operator question Jefferies. comes line Instructions] Mazari Your Hamzah first with

Hamzah Mazari

of quickly know How question value your that. Just And the walk your us just on you speed your verified that matters that too? database. does have first lower business. I in you grow kind in can add? of My those? is data through does But what records cost kind

Scott Staples

So to our verified database continues grow.

It database we margins to utilize we the We proprietary lower to cost As our our information clients on and add cost less. that extent us can to verifications, pass do continue are our greater. we that into internal database.

So we much want continue as can. to that database utilize as to we possibly

Hamzah Mazari

at X. looking just leverage, the then And it's it. sheet balance Got below

strong business. free like flow. do you You're I like? U.K. talked does the you look today? that what pipeline talk look But your what know about generating about Could M&A screening cash pipeline? And valuations

Scott Staples

on organic So first U.S. in growth foremost, and the focused we're

tuck-in acquisition on we active U.K. pipeline. end the do March. evaluating M&A a GBG of just are accretive However, have at We closed opportunities. screening the We very business

right So to what's can opportunities make a roll-up work us. for company, the the be think we but with synergies, actively accretive evaluating strategic disciplined approach. a opportunities are be we going advantage out to with there. we and going it We're acquisition take Valuations are find but right not and are we of but aggressive,

Operator

Your from the of with Citi. next question Peter Christiansen line comes

Peter Christiansen

out nearly I their maybe engines Or does of don't economic delay good, stress X in busy. report the these any in of are expand. Congrats to had make Scott, pretty IPO given clients, -- here. some million given about you nice firms terms and obviously, on could will new changes people last to I'd days. data continues hiring winning there? picture the the there's most quite an nonfarm imagine decision wondering that issue if you is was present or that change, major But hiring want logos, your talk and results JOLTS

seen at if front that new on the all? wondering JOLTS you've Just

David Gamsey

seen... haven't really We

Scott Staples

ahead, I'm David. Yes. Go sorry.

David Gamsey

new be continues to very pipeline active. sales The

what very seen have same our across verticals. the broad-based a to all we've is of At continue growth We bookings. very time, strong

line entire of growth the not drove just seeing want Scott, today. add second to we're So very but the that half business XXXX, or X kind that? across X you broad-based verticals or of X

Scott Staples

that Yes, competitive across hiring verticals. is I just all add would

and faster So help companies to in smarter hire strongly the ability position First Advantage very our helps market. onboard

Peter Christiansen

a firms And vaccines talked there about guess, have mandating who I then follow-up, new for hires. as been some

wondering base? Just to opportunity how there Any impacted that Do that? is as color Advantage service see existing your would an great. if potentially by First being you client be

Scott Staples

not our impact internally Advantage, rest on the wait we're at evaluating there's like vaccination out First world, the there. see I really business. an a It's to and And what's of still policy. see our of But happening had Yes. lot think

Operator

comes the Your line next question from of Manav Patnaik with Barclays.

Manav Patnaik

just question growth your is single, consider in the growth know just there this to Or first term, rates long we comp you year, sticking think you put My you given as those still said 'XX? impressive I you rate are low some about But I same 'XX, can do do for guidance. issues you're high curious, was up think there? by double-digit think

David Gamsey

It's relative business that made really the you fourth and bookings the that with will guidance XXXX tell on, very had too is that early to of that We'll We're we're call. the we've bringing investments during very XXXX. favorably very pleased start guidance. that XXXX. give new earnings we've contribute our and we're quarter to talking towards throughout we about pleased can with What all

Manav Patnaik

sounds Got seen other public, if big to same. the obviously change preparing are it. guys And curious your any competitive it and just to landscape? then X went on You you've players like your do

if of changes because out that, there? seen So any if that's curious you've -- I'm just

Scott Staples

the We competitive have changes any landscape. seen not to

customers, on change we focus the any competitive products our and business to to and but have our not significant landscape. our continue We seen

Operator

comes Capital the Your of next Markets. from Ashish Sabadra with RBC question line

Ashish Sabadra

seeing you launched as pipeline as if was talk products, for RightID I products products additional forward? the wondering new new XtdForce you that like and the about could you're recently traction going well for the that

Scott Staples

Yes.

continue we be a new innovative products. launching as to So and company

Our We'll on see. hoped traction that target the products new to continue new future. the with had we launch products in are to

and Our feel this customer products for us. advantage are competitive input we developed is nice a with

Ashish Sabadra

there that the pretty the was can That's on provide use screening proprietary for I have I database using again, screening, that. very question helpful more solution to is potential of a color. database, talk post-monitoring the if process, same you is cases you've you traditional the follow-up developed can like new just And database outside about stuff rental also extensive. wondering, for for but like opportunity and

Scott Staples

real believe the really that more expanded for a don't scope or be other towards into offerings the geared we've I areas. databases that them provide. current are created adjacent to we and scale We see or business

plans no We've us ahead road those with today. databases. lot So for a that got nice of of

just to continue we'll So we've what focus got. on

Operator

from Your next with question comes of Shlomo Stifel. line Rosenbaum the

Shlomo Rosenbaum

you increasing. seeing there Could further back what on of dollar something criminal up going was of that Is your comment bit per value is describe was density? into average a particularly screen package density, to thought the some of what about or files the interesting. -- way little comment And I density it an that? Is because that maybe that? -- package you else? you can some kind is quantify the adding about what Are

David Gamsey

A So as portion was customer base attributable we during that quarter, existing density. was product to the mentioned, million. our previously up $XX.X of

back state, county, of search, some federal. for example, do city, just criminal instead state So our going do clients they'll what federal a and doing of we're they'll seeing is federal,

doing So they're going databases. for and different names. back checking more it a They're of number

So or greater they're a X be all X years. back of it names and for could going number instead name names X or names, of

So history, X-year gone history. whereas or for back a X- before back they now they're going may for X-year a have

us. revenue All to of incremental is that

Scott Staples

what as brand our trend with safety, on from in that's we're think I seeing in line focus compliance, there. protection, with a customers the right And really it's perfectly just

Shlomo Rosenbaum

or your we've of of key a difference seen hiring? making of your in or kind X the COVID terms last Delta is in this And that overall in in then either just down weeks, any variant, verticals expectations, up

Scott Staples

the we any customers to Obviously, of seen But their our in and really continue it's think watch volumes. haven't from pipeline Delta type monitor. of volumes the is and impact business. forward to stuff, really are more our main or logistical strong on our that work and that that We the not pushing affecting plans. impact regards I but home really are the with

Operator

question of the next Securities. with Bank comes Bisbee of line Your Gary America from

Gary Bisbee

successfully on Congratulations completing the IPO.

obviously you're investments some the question, make to First few you've quarters. next highlighted in planning targeted

factors stronger higher of like right that, have I you you in did the the drive, step growth that revenue opportunities the upside comfortable up your trend, back investment and remains the a give to invest the some out grow how you in growth level Given of potential? sort would the as some spend opportunity or that? strategy more talked faster Or about, I I part sales long-term are the growth just you've longer more discussed previously take guess if business? do gating than you and something of to that those of and to the an guess, of step you And way? what If called to holistically, areas for are vertical you investments

David Gamsey

I'll in and jump started. get Well,

making investments. We are a -- our to approach we do take disciplined

are it putting We in the areas.

grow basis, we we and sooner? to that as would fall-through something on are get long sales, incremental Are said, there look us growth at we as the other those, margins drive a bit consider projects that expand that we long little those We As We regular a could organic evaluate a help we that continue anticipating. ultimately which internal that we our on and that solutions implement term. debates will engineering, think product and and revenues regular is have basis. and the technology on

Gary Bisbee

And us year you've the for the a just hiring of upside follow-up stronger many the quarter help question. driving strategies is growth? in in that your trend by commentary much revenue the the highlighted versus in of your the then second half Okay. driven internal how understand you trend Can

David Gamsey

right? We both, earlier indicator, macro about really relates look of directionally had and extent correct. combination And and some that little the to a a that's a JOLTS that. It's growth. a at data it's base we conversation to our So

focus clients, see But Although do think good indicator. more we're do on we're leading a enterprise we that is we momentum. We very positioned. better We believe resilient. good

carry stronger sooner into that second we back we came and operations the year. international Our half to is momentum think going than and of over thought, the

Scott Staples

all the for we've and is high us I followed track. hires of of of are a and you're sort think quits. think what to a I And -- number easy now always is Gary, phenomenon openings But things seeing economy JOLTS a data new new

quits see what that are and that for to is new that's our the because turnover obviously has has it'd interesting So the really monthly on -- if to the track business something how be effect equation, business. good

Operator

[Operator Instructions] with the JPMorgan. Steinerman of Your from next question comes Andrew line

Andrew Steinerman

natural you a to sort like Scott, In like the package feel the there before for up. risk years gone many management, heard sky? has go point up, spending of is, don't can't just density? some how density for a is there's ceiling feel you continue I density package of will terms package My at go ahead, it question like package about why tolerance that do comments to density

Scott Staples

we hard it's mean watching to I but and Yes. can't future, say, obviously, predict are we this. the

I think overall, to deeper the and look deeper for really at protection. macro companies trend is

discussions. are And new elevated density C-suite, now As more I products board and as said has a -- well. organizations. level-type safety, that lot new earlier, happen. happen protection there is There compliance, can and brand offerings even with to These within been

where predict hard want right but if the to clearly a there's in now a be ceiling, it's protection. more direction companies and more when So would there that trend is ceiling,

Operator

Your line next David Togut with ISI. of comes the Evercore question from

David Togut

including data sets. when automation, proprietary think how platform, global at this When of system unified also margin investments process we year, in about drivers incorporate integration, the beyond your we new robotics, look potential should the underlying expansion operating we leverage, especially

David Gamsey

investing efficiency, So continue to and for higher growth and through we margin. are revenue fall a does at our

to have to costs and we're making that sales in area. and incur in investments we're over third to going public the starting are quarter grow technology that the new company We

should margins a will short flatten those and period time then of to for out a and grow continue longer-term basis. So expand on

David Togut

Understood. And is operating longer-term 'XX margin margin to some the bracket or and beyond? expansion EBITDA in there way

David Gamsey

will guidance have We're continue long-term yet, our and EBITDA margin between grow a on think really not we basis, XXXX XX% that what but is XX%. we to giving -- adjusted said on our

Operator

to time, closing additional the questions. any like no Mr. there Staples further this or for I At turn to floor remarks. are would

Scott Staples

delivering a everyone, and on for day. a shareholders. We positioned future for And We're as well we of accomplishments have continue for you, focus great growth company, for we'll believe joining are very are proud our you public Thank thanks, what's us. excited and very value everyone, our and questions. your ahead. for our Thank

Operator

in call. Thank today's you for participating conference

You may this time. at lines now disconnect your

First Advantage (FA) 12 Aug 212021 Q2 Earnings call transcript