Advantage Solutions Reports Q3 Results, Announces Restructuring

Advantage Solutions (NASDAQ: ADV ) reported third-quarter financial results on Wednesday. The transcript from the company's third-quarter earnings call has been provided below. This transcript is brought to you APIs. For real-time access to our entire catalog, please visit for a consultation. View the webcast at Summary Advantage Solutions reported third-quarter net revenues of $782 million, a 1% increase year-over-year, marking its fourth consecutive quarter of growth. Adjusted EBITDA was $85 million, down 12%, due to planned investments and challenges in Branded Services. The company is optimistic about future performance, expecting double-digit revenue and adjusted EBITDA growth along with margin expansion in the fourth quarter and full year. Experiential Services and Retailer Services segments showed strong performance, with significant growth in events and project demands. The Branded Services segment underperformed but showed potential in supply chain services. A new restructuring plan was announced to simplify the organizational structure, aiming for $25 million in annualized savings. This involves technology and AI investments to enhance service levels, while maintaining staffing levels in client-facing roles. Management reiterated full-year revenue and adjusted EBITDA guidance, citing increased market uncertainty due to rising energy prices and interest rates. The company remains focused on cash flow generation and debt reduction. Full Transcript OPERATOR If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. As a reminder, this conference is being recorded. I will now hand the conference over to the Advantage Solutions team. Dave Peacock (Chief Executive Officer) Thanks, Operator. Good morning and thank you for joining us. I want to begin by thanking our teammates for their hard work over the past several years. Our people continue to adapt to a challenging environment, serve our clients and customers with dedication, and drive strong execution. I'm grateful for their commitment. As a services business, our people are the engine that drives our company. On a pro forma basis, excluding divestitures, third quarter net revenues of $782 million increased 1% year over year, representing our fourth consecutive quarter of growth. Adjusted EBITDA was $85 million, down 12%, reflecting continued planned investment in the business and ongoing headwinds in Branded Services. Our third quarter included some encouraging developments in a dynamic market. Experiential Services delivered another strong quarter with revenue up over 11%, driven by strong execution and global growth, and Retailer Services returned to both revenue and adjusted EBITDA growth. While this was partially offset by a soft performance across Branded Services, we continue to see solid growth in our retail, merchandising, and supply chain businesses within this segment. Overall, our year-to-date performance is l