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STER Nasdaq· Sterling Check Corp
Earnings report Q3 2023

Sterling Check Corp. Reports Decrease in Revenue for the Latest Quarter

Segments of Revenue

  • Total revenue for Sterling Check Corp. in the latest quarter was $180.6 million, a decrease of 9.4% compared to the same quarter last year.
  • The U.S. business segment experienced a 7.3% decline in revenue, primarily driven by declines in the Financial and Business Services, Tech and Media, and Contingent Verticals.
  • The international business segment saw a total revenue decline of 10.7%, mainly due to a decline in base business combined with unfavorable foreign exchange fluctuations.

Strengths

  • Despite the overall decrease in revenue, Sterling Check Corp. maintained a strong gross retention rate of approximately 95% for the last twelve months, demonstrating the effectiveness of their investments in technology and products.
  • The Healthcare Vertical showed growth, which partially offset the declines in other segments.
  • Pricing remained relatively stable across the periods and did not significantly impact the change in revenues.

Challenges

  • The decrease in revenue for the U.S. business segment highlights challenges in the Financial and Business Services, Tech and Media, and Contingent Verticals.
  • The international business segment faced challenges from both a decline in base business and unfavorable foreign exchange fluctuations.

Noteworthy

  • Cost of revenues decreased by 7.1% from the previous year, primarily due to cost management efforts.
  • Sterling Check Corp. announced that they provide material financial and operational information through various channels, including their investor relations website, press releases, SEC filings, and public conference calls and webcasts.

Summary

Sterling Check Corp. reported a decrease in revenue for the latest quarter, with total revenue declining by 9.4% compared to the same quarter last year. The U.S. business segment experienced a decline in revenue, primarily driven by challenges in the Financial and Business Services, Tech and Media, and Contingent Verticals. The international business segment also faced revenue decline due to a decline in base business and unfavorable foreign exchange fluctuations. However, the company's strong gross retention rate of approximately 95% and stable pricing demonstrate the effectiveness of their investments in technology and products. Cost management efforts resulted in a decrease in the cost of revenues. Overall, Sterling Check Corp. faces challenges in certain segments but continues to focus on providing material financial and operational information through various channels.

Source documents

Form 10-Q  filed on Nov 08, 2023
13 pages scanned

Reference data

Company financials Q3 revenue 181M
Analyst estimates Q3 EPS missed by -12.07%
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