Advantage Solutions Inc. (NASDAQ:ADV) Q3 2023 Earnings Conference Call November 7, 2023 8:00 AM ET

Company Participants

Sean Choksi - Investor Relations and Strategy

Dave Peacock - Chief Executive Officer

Chris Growe - Chief Financial Officer

Conference Call Participants

Faiza Alwy - Deutsche Bank AG

Jason English - Goldman Sachs Group, Inc.

Operator

Good morning and welcome to Advantage Solutions Third Quarter 2023 Earnings Call. Today's call is being recorded, and we have allocated one hour for prepared remarks and Q&A.

At this time, I'd like to turn the conference over to Sean Choksi, Investor Relations and Strategy for Advantage. Thank you. You may begin.

Sean Choksi

Thank you, operator, and thank you, everyone, for joining us on Advantage Solutions' third quarter 2023 earnings conference call. On the call with me today are Dave Peacock, Chief Executive Officer; and Chris Growe, Chief Financial Officer. After their prepared remarks, we will open the call for a question-and-answer session.

During this call, management may make forward-looking statements within the meaning of the federal securities laws. These statements are based on management's current expectations and involve assumptions, risks and uncertainties that are difficult to predict. Actual outcomes and results could differ materially due to a number of factors, including those described more fully in the company's annual report on Form 10-K filed with the SEC. All forward-looking statements are expressly qualified in their entirety by such factors. The company does not undertake any duty to update or revise any forward-looking statements, except as required by law.

Please note, management's remarks today will highlight certain non-GAAP financial measures. Our earnings release, which was issued earlier today, presents reconciliations of these non-GAAP financial measures to the most comparable GAAP measure. This call is being webcast, and a recording of this call will also be available on the company's website.

And now I'd like to turn the call over to Advantage’s CEO, Dave Peacock.

Dave Peacock

Thanks, Sean. Good morning, everyone, and thank you for joining us. I want to once again extend my gratitude and appreciation for everyone on the Advantage team for their hard work this quarter. Together, we delivered $1.1 billion in revenues, an increase of 4.3% year-over-year and adjusted EBITDA of $113 million, well above consensus estimates. Furthermore, we generated $107 million of adjusted unlevered free cash flow during the quarter, which reflects our ongoing success optimizing our working capital.

Our executive leadership team continues to make significant progress on the strategy we're building together to maximize the company's full potential and positions that business for long-term profitable growth. To ensure our successful execution, we continue to invest both time and money behind technology modernization and robust talent management initiatives, which include upskilling key roles and building a more diverse leadership team, reflective of our broader workforce of creating a more inclusive organization for all teammates. These efforts are aligned with the strategic priorities we've spoken about previously, mainly to strengthen our culture, simplify our operations, enhance our processes and improve our financial discipline as a unified company to deliver more value to our stakeholders. We are proud to share updates with you today on our progress and how we are building our plan.