Advantage Solutions falls short in Q3

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Advantage Solutions ($NASDAQ:ADV) is a company that provides outsourced sales and marketing services to consumer goods manufacturers and retailers. The company missed estimates for its third quarter revenue by $10 million, coming in at $1.05 billion. Adjusted EBITDA was $118.2 million. The company attributed the revenue miss to lower-than-expected sales in its North American operations. Advantage Solutions operates in three segments: North America, Europe, and Asia Pacific.

The North American segment accounts for the vast majority of the company’s revenue and is its most important market. Advantage Solutions is facing increased competition from other outsourcing companies, and its North American business has been under pressure in recent quarters. The company is hoping to turnaround its fortunes by expanding its operations in Europe and Asia Pacific.

Earnings

ADVANTAGE SOLUTIONS falls short in Q3, according to their earning report of FY2022 Q2 ending June 30. They earned 3857.2M USD in total revenue and 70.8M USD in net income. Compared to the previous year, there was a 7.1% increase in total revenue and a 29.9% increase in net income. ADVANTAGE SOLUTIONS’s total revenue reached from 3155.7M USD to 3857.2M USD in the last 3 years.

Market Price

Advantage Solutions falls short in Q3: Despite mostly positive news coverage so far, Advantage Solutions stock opened at $3.2 and closed at $3.2 on Wednesday, down by 0.3% from its prior closing price of $3.3. This disappointing performance falls short of the company’s expectations for the quarter. One reason for the shortfall may be the challenging retail environment, which has put pressure on many companies’ bottom lines. Advantage Solutions has been working to adapt its business model to meet the changing needs of retailers, but this has been a difficult process. Another potential reason for the disappointing quarter is that the company is still in the midst of a major transition. Earlier this year, Advantage Solutions announced that it was selling off its marketing services division.

This division was a key part of the company’s operations, and its loss will be felt in the coming quarters. Despite these challenges, Advantage Solutions remains optimistic about its future. The company is continuing to invest in new technology and is confident that its long-term strategy will pay off. For now, though, investors will have to wait for the company to deliver on its promises.

VI Analysis

The company’s fundamentals reflect its long term potential, below analysis on ADVANTAGE SOLUTIONS are made simple by VI app. Based on VI Risk Rating, ADVANTAGE SOLUTIONS is a medium risk investment in terms of financial and business aspects. VI App has detected 2 risk warnings in balance sheet, cashflow statement. Become a registered user to check it out.

VI Peers

The company operates in North America, Europe, and Asia Pacific. Cliq Digital AG, Kaizen Platform Inc, and Criteo SA are its major competitors.

– Cliq Digital AG ($OTCPK:CLQDF)

Cliq Digital AG is a German media and technology company. The Company develops, markets and sells digital media products and services. It operates in two segments: Media and Technology. The Media segment comprises the development, marketing and sale of digital media products, such as e-books, audio books, music, games and software. The Technology segment provides technology solutions for the digital media industry, including e-commerce, content management, billing, customer relationship management and fulfillment solutions.

– Kaizen Platform Inc ($TSE:4170)

As of 2022, Kaizen Platform Inc has a market cap of 8.42B and a Return on Equity of 0.74%. The company provides a cloud-based software platform that helps businesses drive growth and improve customer engagement.

– Criteo SA ($NASDAQ:CRTO)

Criteo is a French company that specializes in performance display advertising. Its technology platform enables advertisers to target, personalize, and measure their advertising campaigns. The company was founded in 2005 and is headquartered in Paris, France.

Summary

Investing in Advantage Solutions means investing in a company that is committed to providing quality products and services to its clients. The company has a strong track record of delivering on its promises, and has a solid reputation in the industry. Advantage Solutions is a publicly traded company, and its shares are traded on the Nasdaq Stock Market.