FA - Earnings call transcript Q2 2024 | First Advantage Corporation

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Operator

Good day, everyone. My name is Todd and I will be your conference operator today. I would like to welcome you to the First Advantage Second Quarter 2024 Earnings Conference Call and Webcast. Hosting the call today from First Advantage is Stephanie Gorman, Vice President of Investor Relations. [Operator Instructions] Please note today's event is being recorded. It is now my pleasure to turn the call over to Stephanie Gorman.

begin. may You

Stephanie Gorman

press Good and second Todd. Investors and to on webcast Relations the welcome of accompany Investor presentation Thank discussion. our be today's XXXX morning available earnings Advantage's This earnings find will quarter website, being the and conference First slide our to recorded you, is you everyone, release will call. website. section replay In for

effort, remarks, our to your am Financial hand Investor and we also in measures. and directly Chief and we and statements. Throughout over will the may call, that our this Scott. include website. I prepared our non-GAAP do our XX-Q our our Gamsey, appear I on filed will like Officer, time our financial remarks, on These may measures, XX-K periodic take to release questions. I the statements GAAP call updated are and statements the SEC, for discussion of a everyone with update After not or performance. Form today comparable available any factors from non-GAAP due not be factors statements. Before XXXX of Scott Relations time we discussed begin unreasonable filings David variety conference forward-looking available from expressed today's factors. Officer. including the are will more are forward-looking now to extent SEC obligation financial XXXX today to to Staples, would Executive financial press in our Form forward-looking differ Such in without Reconciliations quarter future remind detail the forward-looking second most call those to filings prepared Chief presentation, implied to of of discuss guarantees which measures in Such present undertake Actual with the materially will the results to be our the our earnings joined SEC. with in by our we our

Scott Staples

our Thank you, Stephanie, and good morning, joining everyone. you call. for Thank

to We the while announce acquisition. progress results are quarter of closing toward another solid Sterling of to proud continuing the

along is customers value dynamic deeper shareholders. This results will updates dive of well on and our innovations leveraging results provide morning, by continued our provide for our to David of and and in year. then with our additional a remainder the our initiatives. executing Our deliver our on acquisition and an on team Sterling color I environment quarter our for will second the the a overview capabilities expectations strategic

and the adjusted In revenues second XX.X%, $XX we quarter, $XXX all and X. Slide are we achieving we which year EBITDA confidence of with communicated to in on full million, of flat million delivered on were Turning us a adjusted of line earnings nearly our our what gives in This today. EBITDA reaffirming margin additional of last basis. which guidance, XXXX year-over-year call

rates Our to revenue upsell, historical and our in with line new logos cross-sell, algorithm. perform attrition growth continued

growth QX. negative base but from Our improved remained

we upsell the of had XX annual We a bookings the contract expected in quarter. and total, XX bookings months, second million X $XX.X XX also in value. with worth the had in In large quarter more or each second $XXX,XXX combined very last

results. sales pleased deliver are We continues that engine to our consistent

of down vertical the the single feel of narrowing We up which reflect of From results verticals overall decreased perspective, normalization or revenue welcome. stabilization volatility quarter volumes within between beyond verticals business. no and a reflects digits. Second business, single we a our macroeconomic has picture an normalization gaps with this

quits, the hires, job and terms of trends the metrics, macro In environment, stabilization from years. as are stabilize we key labor seeing of normalization pandemic and openings, including

our modest level. more at a customers to continue Additionally, hire, albeit

increasing the spoken have by to times be past, continues management, customers. importance and of compliance the about risk fundamental long-term we business drivers in propelled for including Our turnaround the our

technology. products made including specific investments strengthen and our our automating highly have business, in to geographies We

in We to are turnover mover also high early picked verticals. what to felt be we our an volume approach verticals proactively were going and

skewed successfully still and in is enables toward in As that us by can are customers strong new this we expertise, controllables. employees and the subject deliver continue quickly. In control their change and hourly customers strategy matter such, to our more worker speed for more tends to vertical This and also our onboard marketplace offering compliance, we hire the who accuracy demand to frequently. environment, win jobs the very value so

act to strong discipline so margins ability preserve operating the and to cost in continue We and we will do future. quickly have our control demonstrated to previously to

in adjust reminder, cost and of backfill our manage sales the a consists to we structure that third-party of us of of costs Over those conditions. XXX% remainder to costs allows cost scheduling XX% have are we open are positions. operation variable. As which our variable a cost and customer sales way changing The care, flexible and are highly of

ensure demand We ability needed. our environment. ongoing all are to current on of We of also the basis the have we an operating evaluate that to considerations to efficiently investments these modulate if match the

Slide now let me Sterling X, provide to an the Turning on update acquisition.

good closing. are progress We making toward

request DOJ. As from announced in May, received we late the we second a

to efforts. process to fourth the clearance, meantime, planning In in of closing We which and integration we are that our currently quarter HSR advance the anticipate year. after this are pre-closing expect we working we currently through receive continue continuing

both and synergies. The salaried primarily and for management and our will primarily blue-collar First on From focuses leading technology First Advantage cost company's daily dedicated achieve customers. a perspective, and extend will teams Our and vertical are us hourly that Advantage serving while working from business create plans verification who Sterling, Sterling our solutions complementary identity a post-close the deliver Sterling highly to is screening, employees. focuses verticals verticals are background workers, benefit on that to effective high-quality of white-collar allow is integration committee seamless, integration

geographic from the complementary benefit to expect expand. reach to ability also and We

in parties India, Latin both is in we have While global and while Australia, presence Sterling Singapore. Kong deeper and have America a Hong larger presence,

progressed to In synergy million as synergies, $XX we target we cost planning to opportunities. additional $XX of of and a expanded our identified have million work terms integration have our have range

confident are from this We within combining goal to our We months resources, to costs eliminating office XX in first post-closing. insurance programs. back public and functions see and the XX opportunities rationalizing action ability overlapping company

We also to customers see serving our the potential cost business to productivity. Sterling's existing of automation efficiencies bring to capabilities and reduce our increase and

on a transition and unlock focused customers, Sterling allowing us while operational for are We efficiencies. valuable also to seamless third-party

further upsell and and our value customer opportunities third-party reduce our pass unlock cross-sell uncovering we As work, through pre-closing planning we that proposition, certain deeper been opportunities, have are integration into expect delving will we fees. enhance

install transportation example, products. has customers to and can we an a tax could further I-X which Sterling's hire potentially by As help these have faster. solutions of meet believe we such management developed suite service opportunities and U.S., smarter needs benefit sell identity as and more full Sterling bring base. digital product our providing manage improve to options to would the our We to onboard risk, recovery in customers and their evolving

and us area important have an and cultures high-performing focus companies is employees. motivated both for culture Additionally,

and in transaction, be we able our have we teams closing nearly double I pro a about work opportunities excited what how accomplish. immediately approach the integration We and our revenues are billion this forma thoughtful to Upon am assist. being will basis. stream will to third-party brought really experts our on almost very in to leading post-close combined $X.X

and time rate EPS We at over deleveraging generation. cash expect significant accretion rate a to run growth, generate growth our capture EPS flow adjusted compounding adjusted and by teens of a line combination strong basis through double-digit on top to synergy enabled continue ongoing free the

priorities our our successful our drive expect achieving balance closing investors, transaction and that sheet. Overall, and strategic accretive and deleveraging creation. will the synergies As be benefit we look focused long-term ahead, value strategic accelerate and priorities our on advance this and integration, after customers acquisition customers, will we

Turning X our and on update to efforts. AI Slide an

is and expanded leverage value are We our continuing the our have into technology early to SmartHub of been are AI this doing responsible way AI through Verified! integrating of business we One database. our use to customers. and deliver we to adopters proprietary generative

alternative intelligent of across data database, to cost options large effectiveness. By provide customers XXX quickly of the a nearly multiple up history router education XXXX to up optimal based determine from made is on SmartHub we work sources our that search XXXX. able us our source of our quality with million to data sits decrease third-party as of and they incur. and the Verified! is As have end records, AI-driven sources, SmartHub XX reminder, in been verification optimizing which enables and the on speed, costs top million verification

from away third-party diverting XX% expensive up to verifications We sources. are currently the most of

results generates it in money. Our customers helps cases, SmartHub love them because and save many quickly

through This in Additionally, the Profile to applicants either device. Advantage fast enables drives and our to or AI significant is first out new machine a next expand learning, each used gen embedded for tablet customers Profile With platform U.S., and it by computer, rolling we week. applicants time technology API to interface continuing its time both and savings are Advantage mobile customers hire.

experience also receiving accessibility very with and technology our reviews. user favorable complies guidelines is web Our content

leverage has also improving after speed care support out satisfaction. continuing our to in of business. having our in Call an support for use Chat. the approximately applicant employees AI in achieved XX%. continuing processes and to This increased we and organization continued our our Overall, and to center are our as customer to accuracy allowed are call AI has also multiple program, and customer for new of headcount with they reduction make We headcount conduct brought success see within pilots additional our advancements Click. improve It AI are initiative. utilizing customer overall rolling

to say with to of over during has call board Marks. this and our release team business, with will First our that finance is to us past been through David's smooth have legacy continue Sterling. yet. David gratitude we of in colleague has the created by Steven well to David M&A acquisition substantially grown period. First He a morning, many here and finance today a to to beginning year. wish to goodbye closely But saw it's to I he has critical want David's Before the that will team not for our we of next worked lead Accordingly, our of has recently contributions experience, express knows call transition of member December. be directors, the over having has decided and X been that our our years. course, an over our tremendous as press that, entire Chief outstanding he this Accounting announce performance his On he function continue announced the retirement. Part work we announced with and organization. for exceptional Steven discuss executed succeeded ensure months and quarter. And a X-plus to the leader an David years. and David our together will IPO the will David and He well over the Officer, inside turn our of David, and behalf in Steven turn I I been for has we're fortunate now David sincere the you the company Advantage retire strategies, David. for him high-performing of just Advantage time to in later is David most to all to several

David Gamsey

good everyone. Thank you, and Scott morning,

have very of finance and outstanding As the have accounting board past has be yet have business a been very Officer work he what have First great retire a the with of have team professionals our no strategy and Scott XX-year has later has been essential built and as to First the executing always to discussed, X XXXX opportunity outstanding developed a we and Advantage we skills year. timing hired been tremendous have pending accomplished, the years. has Steven forward. exceptional together, a It directors, closely do leadership moving an that Chief Steven of the given combined but strong together I Sterling building there finance excellent and partner in this and excellent team have he of job to had company. am team. the Financial in an acquisition, after will and exciting companies at Lake worked we work a I Advantage He to excellent and today. privilege of I to of in part a the Scott I and doubt an the and decided our done. I lot is judgment. still Silver career have demonstrated culture over proud

Now business. back to

results. to over communicated for Slide previously second our our on results quarter second sequentially results the expectations, line first our quarter Turning improved In our quarter X. with

Our flat had year and impact million, second results. quarter greater in prior than the QX. Currency revenues $XX.X compared were $XXX.X to no million on nearly

consolidated For were flat approximately our million. In the Similarly, contributed Infinite revenues to revenues prior of ID of Americas segment consolidated year. million, our also International or revenues $X.X were $XXX.X quarter, XX% international segment, XX% have flat the with APAC compared to at our operations year $XX.X revenues. and the of that believe now revenue volumes. base million, sequential prior India consistent, producing or We stabilized,

compared For was the EBITDA prior the million, total year. adjusted to company, also flat $XX.X

margin EBITDA point basis adjusted was XX.X%, XXX improvement Our QX. a over

negative rate share our impact earnings was share was effective XX.X%. Adjusted was income net per onetime in for partially and offset into upsell or new that what demonstrates repurchases an see with delivering special quarter, $X.XX can QX. by it are been $X.X upsell, from and on have the our XXX attrition improve we and includes Slide dividend, XX, being earnings our flat negative we a basis. On for basis Base to base. cross-sell, adjusted has performance from growth rate points Our been interest still did year-over-year adjusted swaps. these for decline million This X.X% our in driven account, largely historical control, variation was and per from share you customer adjusted QX, can base cross-sell taking tax the the $XX.X consistent algorithm nearly logos with our $X.XX. contributed XXXX by would diluted and on expired diluted quarter the approximately and million, performance When also managing QX. Revenues that but

an and million, declined in additional million, in was logos QX. customer QX X.X% X%. attrition Base $X.X $XX or contributed or New by X%

capital generated costs of XX, allocation balance acquisition. and we $X.X the on second of cash million strong Slide in the cash related million directly now Sterling operating Turning the to to after for sheet our quarter, flows $XX.X summary adjusting paid

During the software development property purchases and of quarter, for capitalized we used million $X.X equipment and costs.

previously, have cash. to we mentioned continue given share we As Sterling the we repurchases build acquisition, suspended as pending

million raising fund billion of when our of of billion acquisition. First approximately to our $X.X we net Advantage term addition of In to cash $X expected in existing $X.XX Sterling billion gross debt, approximately new debt balance considering This the anticipate or approximately $XXX close. results debt debt, sheet at

be adjusted our expect within leverage range we X.Xx. debt Additionally, EBITDA close X.X the to to net of to at

cash However, taken further could actions variables there are estimates generation, still a incremental number improve of synergy any that close to impact us, before margins. including timing, and

years Xx leverage. as our the the of of maturity to to provide $XXX leverage a revolver business. We Additionally, track to managing million to X will $XXX X additional remain for proven of liquidity our extend part million financing the net which from we upsize long-term after date transaction, date record and and our will have closing our of target agreement, committed

delevered invested repurchasing acquisition. than million Silver the to since years private onetime a shares, Lake dividend less acquisitions. X Xx in and from in Sterling announced as prior million our after the Over This a completing $XXX company paying $XXX is Xx special to us, approximately we

Our goal is adjusted Xx to XX toward months within reduce leverage run of net rate closing approximately EBITDA.

this flow combined cuts generation. to driven cash be top strong cost delever synergies path Interest line even accomplish by growth the and continued goal us will efficiencies, would productivity of businesses, sooner. help Our high-margin rate

Slide are XX. our we annual to moving Now reaffirming guidance. XXXX Today,

well guidance. similar XXXX. expect full quarter position adjusted growth year EBITDA for revenues, achieve results adjusted We and of still second Our sequential the midpoint to to actual margins us EBITDA quarter-over-quarter our

to slightly revenue first generate expect growth. range expected of the This includes the cycle $XXX the contribute Infinite over to acquisition. months $XXX is we revenues full in approximately related that to anniversary the $X which Based midpoint $XXX million. organic of results million the year-over-year XXXX, For this million, we ID, in year, positive of million as X on in year revenues to of

We trends and with be growth targets. upsell, continued consistent cross-sell of and historical expect new customer to logo execution long-term along retention with the

the adjusted maintain This flexible in approaching of our to and management model, margins and $XXX strength million range adjusted investments the at in automation. reflects of EBITDA $XXX million. expect cost the XX% midpoint to EBITDA disciplined We

As totaling normalization employee reminder, plans annual a adjusted approximately costs product, in management sales includes It in approximately and technology increases $XX and includes wages, guidance also incentive $X EBITDA our benefit of million. increases of million. in investments new capabilities

the expect we we Looking of as improvement the remainder move top XXXX. sequential quarterly at through phasing, line

We revenues expect declines, sequentially and trend reflect plus continued through that base to also minus essentially assumes year though third flat QX. into or QX. The midpoint quarter getting guidance sequentially modest continuing the macro-driven our positive to of range with improving growth, in

adjusted expect the of of with the to continue -- in upside potential. year XX% least EBITDA EBITDA half We quarterly second margins at

In Before Scott, that to like over the has Financial confidence years. it like more line turn thank to X their an future everyone we ensure will to to open I I Advantage, that, would and Officer closely been serve close back the let the back smooth to I to collaborate transition results Chief we and and continue honor it of remarks to for months, hand past today. With even the the Steven call to First as for I would by the articulated closing questions. before deliver support for Scott coming me saying that a and

Scott Staples

David. you, Thank

customers. With First of Advantage We questions. and AI on open for the to and while Most expected the delivering the value notably, solid better driving on and fourth our innovation focused We productivity will with execute are acquisition on Sterling quarter, we through also are leading delivering our on remain our closing serve future initiatives. that, strategic toward to we line shaping continuing solutions. results progressing our playbook the in creation

Scott Staples

you. [Operator Instructions] Thank

from will Rosenbaum question Stifel. with first come Our Shlomo

Shlomo Rosenbaum

just your I the wanted you about little to from and macro plans. hiring you're customers hearing in ask bit environment a of terms what

had, maybe that commentary levels Scott, higher bit what a -- little quits in we're Just some the data. of the lower stabilization context bit of a about the least to little JOLTS at be of you levels higher unemployment lower seems seeing and in

ground, So I I'll on really to your have ask hearing clients you a you're then the from what just follow-up. want and

Scott Staples

really hearing the what something where on be would we're this. I of the Yes, to customers from for focusing is macro things see last Shlomo, couple we're quarters. obviously and going on is But trying think unchanged

that products and demand not hearing there's services, strong are of doing for still they It's the curve. but ahead hiring a of their are and backfilling. really hiring We just-in-time more

So the what space. We're like in fine we're the bit the I of us. a kind cautious those think of them got hearing years. not that's fact seeing wild swings that we optimism base and with from is that stabilization we're getting really in We and pandemic little normalization during

our manage actually easier is we've this enterprise customers one again, I to resilient, especially to primarily for So we really is, fairly the got. remember a in Because verticals think business. are and little focused other us enterprise that thing customers on

Shlomo Rosenbaum

that And then well. a staffing, positive talk positive, had you was ones little to doing, side. talk maybe doing I you about that so breakdown bit of a similar. ones verticals? was words, the which little I know In continued can I which maybe talked know are you more the a which just about there not And positive. movements think commentary -- follow-up, other as about went be little maybe wanted better, just if a are bit that. And to last between a were of quarter had some they

Scott Staples

interesting, really return was time, saying the we're and the vertical saw long stabilization. for was what from we perspective first what in because a a to time normalization this Yes, is

vertical's no revenue So were volumes digits. beyond single down up in or single QX,

gaps the again, So which we an verticals overall of we feel the this welcome. of narrowing really reflects normalization between business, the

a for quarter. our it our us transportation X%. to XX% up good give specifically, of was and is So at a Transportation just revenue you vertical had sense, largest

services, were on which I think was spectrum X%. bottom and the financial of down the banking

So between fell in that. everything else

or a So or you've X, whatever it plus be. flat got X might X minus minus or lot of

the of So a in us vertical. lot quarter. narrowing was positive still the for Staffing more

on love So all the was have we positive sort -- did narrowing. But that the we of this fact is side. that

SMB what's enterprise reflective think what focused probably most maps we're the that in space JOLTS to company. the I is an space. Again, seeing data we're the

business. think So and has I been was SMB to our the more XX%. positive is or for always large business about It's macro X% revenue. swings, negative But of us not SMB volatile either SMB down a our

I huge we not business as on vertical. impact not it's a it's and think to we're we've only enterprise Again, data. going JOLTS because the So really not with and us the whatever seeing reflecting falls vertical that's again, where we're are focused, what's more of a focused said over over of on still space revenue if also that of there's be, our worker. for might but type our look into a retail, hourly you XX% and that worker. And strong it at transportation demand mix But

Operator

question JPMorgan. from Andrew will Steinerman come next with Our

Andrew Steinerman

teens Scott, to was about when EPS and be again the highlighted you I today. time you going but teens post-merger, that how base is feel might you that EPS to I'm that comment could like think year ask you about grow years company one the wondering premature, do over think 'XX? many combined growth this little a going

Scott Staples

you. I'll that to David, throw

David Gamsey

plus. all and based our Andrew, on now, based we we the additional go we synergies could get. believe results work range thought we've released So is the just be had we that million we million we've that that $XX you've think expanded of that We million. think seen We of could modeling, what to integration said that I can done $XX get $XX on previously

away right continue we delever that a So can get rates interest go continue as we therefore, can as and down. basis, to on adjusted rate go we and that think run

Andrew Steinerman

many sustained you a of frame years growth could think you teens Did be want the time to how for? give

David Gamsey

commenting longer. on a It's years, maybe the premature little least to future that. of bit At couple a be early like and

Scott Staples

really until doing we're lot planning. just to a we Andrew, I Yes, mean, of get DOJ approval, just clarify,

in answer exact get really the things detail pretty right -- under ballpark and at years we that estimates we're the of detailed give we're with able more under cover giving look hood and to these to been now. these kind But you So stuff. on a comfortable more haven't that

Operator

Nicholas from Blair. will Our come question William next with Andrew

Andrew Nicholas

international on Congrats today. to David the and news wanted growth. on Steven I from ask to

flat stabilization you it business bunch Last Scott, in level. gave talked overall was year-over-year. vertical if about of there, quarter, on in think what I in the similar you you're APAC could just a you color maybe I'm India. wondering and in seeing give commentary great services your IT

Scott Staples

Yes, look business I as been the this mean, on we know, were X so at because, years. you international literally a has data happy to drag for

And been know. so this, signaling sort now, as we you of had

of And business, think -- our so, EMEA, we again, it's X buckets. APAC. it's It's think India, international and it's when

lumped in the Americas create North the America, business. with U.S., I and So mean, LatAm Canada we to

years, So India last at nicely. X had sort over was of X been the in actually businesses fairly regional if you EMEA chugging look the those drags big and our while really international along sector, APAC

growing. hire drag QX and bottomed APAC this saw India BPO say APAC thought life, in that's are we in out had the and of APAC is cautious I what Really, the of out that. is I for exactly particularly had business, start would rest out the that. -- year, been China show to services much APAC of to what on probably in starting is this comps are is is some hearing QX that QX to we Again, seeing China what continues and our growing always would on and And to kind and optimism is. customers XXXX this And and had APAC we shoots year. slowly growing. signaled is remember we in of IT great. In it of out that it starting APAC. And green thought guys think you EMEA was to also So start business of would we better. what's had we now But the our start going bottomed do India we're India and of which is again. really expect But What bottoming just APAC

So much we're are positive changes easier against we're numbers. not we but talking in the changes, now dramatic business, some seeing comping about also

Andrew Nicholas

gears way time there And if maybe verifications up. bit point would last any be or or of employment number this a for Verified! versus much that Verified!. big if also, employment to year cited surprised sense 'XX. or much verifications follow directed that's get it's for how are going was. I'm terms qualitatively Just you me in direct then hitting a The number at up providers? any is that switching little And on versus curious in of my to profit then how XX% maybe maybe to quantify to how trying even other those to speak a to being margin even a benefit you bit

Scott Staples

Yes.

this. time is And a so the This the actual diverted. we've like number given is XX% being number of verifications first

do So into for on forward to do and sort of Verifications in terms a an specifics going trends we of you're we getting savings. as But have get this our without And will think budgets this. I just data untenable where we baseline. I faster heavy looking customers getting looking we're cost. the position know cost continue on we've more SmartHub. Clients adoption two, larger to background a because of going forward, the but of doing really as by numbers, which of consider basically much and are in are of concept offering ready we're right it, general driven not alternatives. turnaround we'll it's the only One, times; these become really and believe that's multiple they alternatives. screen to type it said for out just times, And like seeing really is now there really of clients drag want

this I'd to say, And so it it. of and promote it's market really and our sell to more, ability

in the our So gets company. gets the called probably and it that and and and has technology directions. better technology AI our as verification to means does. that quarter. gets definitely we that just improve. best is it. the more uptake different It's Remember It piece that and us add the enables it we into learning, machine to more built in It's better smarter this every data records pointing increased. And of number sophisticated every with keep database, it more expect that again, that's And to better

Operator

[Operator Heather Instructions] of Our next question comes Balsky Bank from America. with

Heather Balsky

to it a I interesting you you of of, and about the range synergies to wait you talk comment just range to curious, as then I'm work you you're curious, get the guess, how have process expand also kind see out much approved? for that bit done the was the while can made approvals. haven't you really learned you was of, under expand you've during enabled still I the Q&A little to the for has you hood a waiting gotten and that

Scott Staples

Yes.

So amount work. incredible we've an done of

bigger So I'll paint then Heather, sort your more question. your first let picture get of to and specifically for me a

there as who do they're how done done not teams and deals at see because X So of as And months, advice XX we've literally First conversations these Lake sense one, data getting And the Sterling to timing and we're Advantage X allowed from leaders. those sense better meeting we're conversation are the We're being through together, standpoint, legally how structure of from is to first things, days in great And sized consist M&A other we've created point. out mapping months, third-party and plan all those synergies done to of consultants Silver of XXX we've those a map how daily of getting teams dedicated from planning. we're things has integration hundreds we equal that things. first hundreds work data what we're and is do do and any well. and in of able the getting standpoint planning much are put pieces to as what and both go this certain to the of to basically, sort a year, would in not companies. And businesses better in that we first But stuff first through to out, for a planned. what

have we either where pretty And of can like so good or later. things numbers while a don't got numbers, we we've sooner ballpark move specific

we've and their And in full-time steering and X senior Advantage the job. taken its teams And has is And like process meeting leaders on done own the And treated functional Sterling got daily First really so stream. their same sessions. in-person has we've side. and committees this work been

it's total So -- why some us it that of as confidence could synergy of not that moving versus going and we sooner number on, a up from only but a lot even mentioned, probably that's later. we stuff raise David value, is given dollar

Operator

question [Operator will next Kyle Instructions] take We Peterson. from our

Kyle Peterson

continues strong the start want remain that to upsell, I on cross-sell, here. to pretty

continuing want more better package on to density guys provide drive you see to is if Just any could here. what color

Scott Staples

We're answer -- to that get in other And things. are controllable. thing I'll of second. a think obviously, get happy, in I'll we But that upsell, like to to your is to Yes. things along. said, just chug really X new we really the the I X side. mean, announced question the large really quarter the we also logo continues your as as deals, cross-sell with And on the those one I controlling consistency

quarter. look and super consistent all along Upsell you even So every logo attrition, lines. with new back, to new going back cross-sell, mean, every what been to I mapping they've just every XX%, X%, almost almost almost those that's cross-sell, upsell, XX%, and to quarter, fluctuated. logo done we've XXXX of the sort if obviously base quarter, retention, X%, It's X% just X%

and additional -- really for lot of what's before, driving the we've controllables. just again, So with the happy and call, control a upsell, driving cross-sell whole, -- risk how so this And awareness I us to mentioned I'd management. of able what's this is we're think really what consistency

what's wanting for really And management protect helps couple new and they of spend more product companies and that's protect their protect last their their what's been with are are crazy employees risk always need customers protection employees, their great ask a to business, But going offerings and that's and pivot their just toward the in launch world money other protect brand, the their us general, that drive now tailwind that protect years. just for shareholders, business, facilities. more there's in world and the and And Our us how the is really how more facilities. cross-sell. Yes, driven for upsell they in services. continuing sort things. a to willing protect on and are of tune just to and this And it's to

Kyle Peterson

guys some at quarter. disclose now at related to to there or is between ] that And that close [ transaction or appreciate you you incurred visibility anything you you estimate terms and guys Sterling deal costs out able least this of in time? guys I transaction this are the I notable to calling guess, else guys costs have that of

Scott Staples

We're transaction Kyle, to we numbers HSR through DOJ that the to this the costs as point at we get fees but professional it be associated share closed. continue So go until not time, further going review. those in will with we incur

Operator

earnings and First webcast. This the wonderful second conclude participation. your Advantage and XXXX At lines, time, for may have you quarter disconnect this day. you call your Thank conference does a

First Advantage (FA) 8 Aug 242024 Q2 Earnings call transcript