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• Fourth-Quarter Revenue: $762 million, down 3% year-over-year.

• Fourth-Quarter Adjusted EBITDA: $95 million, up 9% year-over-year.

• Full-Year 2024 Revenue: $3 billion, flat compared to the prior year.

• Full-Year 2024 Adjusted EBITDA: $356 million, up 1% year-over-year.

• Branded Services Revenue: $1.1 billion, down 4% year-over-year.

• Branded Services Adjusted EBITDA: $181 million, down 11% year-over-year.

• Experiential Services Revenue: $945 million, up 11% year-over-year.

• Experiential Services Adjusted EBITDA: $76 million, up 43% year-over-year.

• Retailer Services Revenue: $965 million, down 2% year-over-year.

• Retailer Services Adjusted EBITDA: $99 million, up 3% year-over-year.

• Net Leverage Ratio: Approximately 4.0 times adjusted EBITDA.

• Interest Expense: $147 million for the year.

• Adjusted Unlevered Free Cash Flow: $335 million, nearly 90% of adjusted EBITDA.

• Cash on Hand: $205 million at the end of 2024.

• Warning! GuruFocus has detected 5 Warning Signs with ADV.

Release Date: March 07, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Advantage Solutions Inc (NASDAQ:ADV) achieved a 9% increase in adjusted EBITDA for the fourth quarter of 2024, demonstrating improved cost discipline and efficiency.

• The company successfully completed several divestitures to focus on core capabilities, enhancing business alignment and transparency.

• Experiential Services delivered strong results with an 11% increase in full-year revenues and a 43% increase in adjusted EBITDA, driven by improved execution and labor optimization.

• Advantage Solutions Inc (NASDAQ:ADV) retained over 95% of its key clients, showcasing strong client relationships and service reliability.

• The company is making significant investments in technology and data architecture, including ERP and cloud-based systems, to enhance operational efficiency and decision-making.

Negative Points

• Fourth-quarter revenues declined by 3% compared to the prior year, indicating challenges in revenue growth.

• Branded Services faced market headwinds, resulting in a 4% decline in revenues and an 11% decrease in adjusted EBITDA for 2024.

• The macroeconomic environment remains uncertain, with rising consumer debt levels and potential impacts from tariffs affecting spending behavior.

• The company anticipates low single-digit revenue and adjusted EBITDA growth in 2025, reflecting subdued market conditions and ongoing transformation-related investments.

• Cash flow in 2025 is expected to be impacted by onetime items, including an extra payroll shift and delayed collections from new business wins.