Advantage Solutions Inc. Q4 FY2024 earnings call

• In 2024, made progress on multiyear transformation, improving operating efficiency and strengthening the business despite a challenging macro environment. Fourth quarter revenues $762M down 3% vs prior year, adjusted EBITDA up 9% to $95M. Full year revenues $3B flat vs prior year, adjusted EBITDA $356M up 1%. • Macro environment had value-seeking shopping, impact on certain channels; consumer debt levels rising. • Branded Services rightsized business, deployed new processes/data, upskilled sales teams. Experiential Services had strong results with increased events per day, execution rate, and pricing discipline. Retailer Services navigated headwinds, improved execution and cost discipline. • 2025 plans include system/infrastructure/process enhancements for decision making and client service, AI/cloud investments, labor utilization improvements, and new leadership in branded services.

Branded Services: In 2024, revenues were down approximately 4% to $1.1 billion, adjusted EBITDA was $181 million, down 11% with margins declining by 90 basis points. Experiential Services: Full year 2024 revenues were $945 million, an increase of approximately 11%, adjusted EBITDA was $76 million, a 43% increase with margins expanding 180 basis points to 8%. Retailer Services: Full year 2024 revenues were $965 million, a 2% decline, while adjusted EBITDA was $99 million, up approximately 3% with margins expanding by 50 basis points to over 10%.

• 2025 expects adjusted EBITDA growth similar to 2024, revenue growth slightly higher. • Unlevered free cash flow expected over 50% of adjusted EBITDA, impacted by one-time items, payroll shifts, and SAP implementation. • CapEx in 2025 expected $65M-$75M, net leverage ratio higher in 2025 but tracking to <3.5x long-term.

• Macro environment uncertainties like tariffs, which create uncertainty for categories and supply chains. • GLP-1 drug adoption impacting consumer spending, especially on food. • Labor market challenges and rising consumer debt levels pressuring spending habits.

Q: Commentary on macro environment, tariffs, etc.

A: Tariffs create uncertainty, impact categories, supply chains, and retail merchandising needs. GLP-1 drug adoption also affects consumer spending.

Q: New logo wins and services in current environment A: Aggressive business development, opportunities in retailer services (constrained labor market), experiential services (beyond in-store sampling), and branded services (retail merchandising).

Q: Branded services headwinds and 2025 outlook A: Uncertainty from tariffs, GLP-1 drugs, but progress on transformation and opportunities in retail merchandising.

Q: Client exits in 2025 A: No anticipated intentional client exits.