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Sterling Check (STER) investor relations material
Sterling Check Q2 2024 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
Executive summary
Revenue grew 5.3% year-over-year to $200.5M for Q2 2024, driven by the Vault acquisition and 6.2% inorganic growth, offset by a 0.9% organic constant currency revenue decline.
Net loss was $6.2M for Q2 2024, or $(0.07) per diluted share, compared to net income of $0.3M in Q2 2023, with a net loss margin of (3.1)%.
Adjusted EBITDA for Q2 2024 was $46.3M, down 7.4% year-over-year, with margin declining to 23.1%.
Adjusted Net Income decreased 16.8% to $21.8M; Adjusted EPS (diluted) dropped 17.9% to $0.23.
The merger with First Advantage is expected to close in Q4 2024, with Sterling shareholders to receive cash or stock consideration.
Financial highlights
Q2 2024 revenue: $200.5M (+5.3% YoY); six months ended June 30, 2024: $386.5M (+4.6% YoY).
Q2 2024 net loss: $6.2M; six months net loss: $14.2M.
Adjusted EBITDA Q2 2024: $46.3M (23.1% margin); six months: $84.8M (21.9% margin).
Adjusted EPS Q2 2024: $0.23 (down from $0.28); six months: $0.43 (down from $0.53).
Free cash flow for six months ended June 30, 2024: $8.8M, down from $23.7M YoY.
Outlook and guidance
Merger with First Advantage expected to close in Q4 2024, subject to regulatory approvals, and anticipated to drive innovation and shareholder value.
Macroeconomic uncertainty and client hiring volumes continue to impact organic growth.
Company expects continued cost optimization, integration of recent acquisitions, and margin expansion over the year.
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