The following is a summary of the First Advantage Corporation (FA) Q3 2024 Earnings Call Transcript:

Financial Performance:

• First Advantage reported combined revenues of approximately $1.5 billion on an LTM basis as of September 30, 2024, after the acquisition of Sterling.

• Adjusted EBITDA reached approximately $407 million, expected to rise to $457 million to $477 million including targeted synergies within two years.

• Third quarter standalone revenue was $199.1 million, roughly flat year-over-year with adjusted EBITDA at $64 million, maintaining previous year levels.

• Standalone adjusted diluted earnings per share was $0.26.

Business Progress:

• The acquisition of Sterling for $2.2 billion was completed, significantly increasing size and capabilities.

• Unveiled a new company logo and branding to reflect the combined entity.

• Focused on integration, maintaining customer continuity, actioning synergies, and reducing net leverage.

• Developed the 'FA 5.0' strategy to innovate business through new technology, AI, and product initiatives.

Opportunities:

• Expanded market reach and capabilities, increasing the total addressable market to $13 billion.

• Increased scope for automation and AI integration in operations, promoting operational efficiency and cost reduction.

• Opportunities for revenue synergies through enhanced product offerings and expanded geographical presence.

Risks:

• Integration challenges with Sterling may affect customer retention and disrupt ongoing operations.

• Significant focus on maintaining revenue and EBITDA projections amid integration may divert resources from other growth initiatives.

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