Good morning, and welcome to the Sterling Second Quarter 2023 earnings call. My name is Carla, and I will be the operator of today's call. If you would like to register a question for the Q&A portion of the call, please press star followed by one on your telephone keypad. When asking your question, please ensure your telephone is unmuted locally. To revoke a question, you can press star followed by two. I would now like to pass the conference over to our host, Judah Sokel, Senior Vice President of Finance, to begin. Please go ahead when you're ready. Thank you, operator. Welcome to Sterling's second quarter 2023 earnings call. Joining me today are Josh Peirez, Chief Executive Officer of Sterling, and Peter Walker, Chief Financial Officer of Sterling. The slides we will reference during this presentation can be accessed on Sterling's Investor Relations website under News and Events. The slides have been posted to our website, and a replay will be made available on the website. After prepared remarks, we will open this call to questions. Before we discuss our results, I encourage all listeners to review the legal notice on slide two, which explains the risks of forward-looking statements and the use of non-GAAP financial measures. Additionally, please refer to our most recent Form 10-K and 10-Q, filed with the Securities and Exchange Commission for a discussion of risk factors that could cause actual results to differ materially from these forward-looking statements. Our slide presentation and discussions on this call will include certain non-GAAP financial measures. For such measures, reconciliations to the most directly comparable GAAP measures are in the appendix to the presentation and in our earnings release issued this morning. I'll now turn the call over to Josh Peirez. Thank you, Judah. Good morning. Thank you for joining us. Sterling's second quarter of 2023 was another quarter of successful execution towards our long-term strategy and 2023 focus areas. Results were at or above our prior expectations. I am very proud of the team's accomplishments. The macro environment recently slowed during the second half of June and July. We have narrowed our full-year expectations to reflect that slowdown. Even in the face of this macro softness, our clients continue to hire at a rapid pace and are increasingly relying on us to help them keep their employees safe while hiring faster and smarter. Our unique focus on product innovation, technological excellence, and client service differentiate us. Moreover, our global scale and capabilities are attracting more new clients who seek a global player capable of handling complex screening programs with compliance and quality worldwide. As a result, we are succeeding in the areas we can control while also building a stronger foundation for the future. Turning to our highlights of the quarter on slide four, in Q2, we delivered revenues of approximately $190 million, in line with our expectations, as we continue to see success in the organic revenue drivers in our control. This quarter, our results included growth of 10% year-over-year from the combination of new clients and increased client spend through upsell and cross-sell. Our Q2 Adjusted EBITDA margin exceeded our expectations and was fueled by the progress we have made on our cost optimization efforts. We expect these strategic initiatives, centered around focused automation, efficiency, and process reengineering, to result in a stronger, more scalable, and more profitable company for the long term. We are well on track to achieve our cost savings targets of $10 million in 2023 and $25 million of annualized savings. We also saw continued momentum this quarter with global adoption of our newer and differentiated solutions, identity verification and post-hire monitoring, which I will touch on shortly. Overall, our passion for client service, innovation, and operational excellence is evident, and I could not be prouder of the Sterling team as we took significant steps forward in Q2 toward achieving our goals. Turning now to slide five, which summarizes our long-term strategy and 2023 goals. In recent earnings calls, we shared our company's long-term goal of becoming the world's most trusted background and identity services company, differentiated by our deep market expertise, unrivaled client service, best-in-class data, and seamless workflows. This strategic framework directly fueled our 2023 focus areas with concrete near-term goals. Specifically, we are focused this year on doubling down on the organic revenue drivers we can control, scaling our identity verification and post-hire monitoring solutions, optimizing our cost profile, and M&A. In the second quarter, we saw positive results on each of these four areas. Starting with organic revenue on slide six, we continue to be a global leader in background screening and identity services due to our deep market expertise, robust cloud platforms, and exceptional client service. In Q2, we again delivered on our commitment to drive high-impact innovation and elevated client experiences within our core offering. We have many milestones to highlight from the past few months. These include the significant enhancements we've made to our recently released, fully integrated Sterling Monitoring solution and the upcoming release of our Sterling I-9 virtual inspection capabilities, enabled by our partnership with ID.me.... We've also launched several new enhanced features that provide strong improvements to client experiences, including our new sub-report functionality and new drug and health capabilities. Both of these allow clients more flexibility and convenient methods to manage their programs. Our continued focus on innovation has enabled us to enhance our revenue regardless of the macro environment. During the second quarter, we continued to gain market share through new client wins and increased client spend on newer and higher margin solutions such as identity verification and post-hire. We have also seen an increase in the number of new and expanded client RFPs. Prospects and existing clients are attracted to our differentiated solutions and are using the current environment to evaluate consolidation with scaled providers possessing an increased scope of services. Our success is spanning all regions of the world as well, as we have seen continued success winning new clients and growing through upsell, cross-sell in our international regions. This includes our new Latin America region, where our improved capabilities following the acquisition of Socrates, are better positioning us to win more multinational deals. Looking ahead to the back half of 2023, we expect to see improved year-over-year performance, particularly in the fourth quarter, from the combination of several factors. First, we expect new business to improve through the second half based on deals coming online. Second, in the first half of this year, we've seen better win rates and have closed more business in new logo and upsell, cross-sell opportunities than a year ago. Third, we have a very strong opportunity pipeline, including larger and more advanced stage deals when compared to last year. These factors help underpin our belief that results will strengthen in coming quarters, notwithstanding the uncertain macro. Turning now to slide seven. Our continued investment into identity and post-hire products are bending our trajectory with fast-growing and higher-margin solutions. These products cement our culture of innovation, are clear competitive differentiators, and significantly increase our addressable market. We are thrilled to see our continued investments paying off, demonstrated by the identity and post-hire solutions, representing more than 10% of our revenue for the 2Q in a row and increasingly being included in client packages. In fact, during the first half of 2023, nearly half of all new deals we won in the U.S. included identity as part of the package. Even with this recent success, the penetration rate of digital identity within our existing client base remains very low, suggesting that the runway for additional growth is very robust. In Q2, we also extended our industry-leading identity position through the release of our new exclusive verification workflow with Yoti. The Sterling Yoti partnership expands Sterling's digital identity capabilities into the EMEA and Asia Pacific regions. By exclusively enabling the verification process at the beginning of a background check, the new solution decreases turnaround time by approximately 80%, improves completion rates, and delivers more accurate screening results. In the U.S., we were thrilled to recently expand our exclusive partnership with ID.me through 2028. Building on our proven success, this extension will allow us to continue to drive innovation and adoption of identity verification solutions. In that spirit, we were very pleased to recently unveil the upcoming launch of a new virtual I-9 document review service. For more than 35 years, the Form I-9 process has remained largely unchanged and burdensome, with in-person verification requirements. Now, in partnership with ID.me, Sterling can offer a secure, compliant, and convenient alternative virtual inspection option via ID.me's Trusted Referee video chat. Shifting to post-hire on the right side of the slide, demand continues to grow for our subscription-based monitoring solution, which tracks, among other things, criminal arrest and conviction records, motor vehicle registry records, licensing and credentials, and social media. We continue to reimagine monitoring, and in Q2, we announced new capabilities that help clients to effortlessly manage and scale their post-hire monitoring in our Client Hub. We're optimistic about our consistent progress to streamline and simplify the post-hire experience, which has traditionally involved a more limited, fragmented experience with multiple providers. Moving on to slide eight. We shared in our first quarter earnings call that we are focused on driving long-term, meaningful cost savings and efficiency gains. Over the course of 2023 and 2024, we are executing on a comprehensive cost optimization program aimed at building a more scalable, effective, and profitable company now and into the future. Our cost initiatives fall into three key pillars. one, reducing our cost of revenue through a focus on labor and data costs. two, decreasing our facility costs by leaning even more into our virtual-first strategy. three, reducing SG&A costs by streamlining our organization and enhancing functional alignment. I am happy to share that Q2 was another quarter of strong execution against that goal. We implemented several new initiatives driving efficiency and automation, the closure or downsizing of several facilities, and the continuation of actions to streamline functional alignment with go-to-market strategy. We expect that initiatives already implemented will drive the vast majority of the projected $10 million of savings during 2023. On a run rate basis, this equates to over 2/3 of our $25 million annualized target, giving us confidence we will achieve our goal. We are very excited about the opportunities we are unearthing to drive further process improvements, including increased automation and the use of generative AI. We believe generative AI can be leveraged to improve the client and candidate experience, internal productivity in client and candidate care teams, engineering, and other internal areas. We have identified exciting opportunities to leverage AI in various parts of our fulfillment business already, some of which include enhancing our criminal reporting processes and creating intelligent data extraction capabilities. Once complete, all of these initiatives are expected to bring our total annualized savings to our $25 million goal. The final 2023 goal I will discuss is M&A, shown here on slide nine. During the first quarter, we made two strategic acquisitions, Socrates and A-Check, and started on deal integration to drive cost synergies and geographic expansion benefits. In the 2nd quarter of 2023, we continued that journey with strong execution against our integration timelines, including on-track migration of client-facing and fulfillment platforms. We expect to complete deal integration by the end of 2023 for Socrates and the end of 2nd quarter 2024 for A-Check. As part of these integrations, we are leveraging and refining the M&A playbook we developed for our 2021 EBI acquisition, giving us increased confidence in potential future deals due to our ability to integrate cultures, operations, and performance goals effectively and efficiently. Our integration efforts are driving meaningful financial benefits. As of Q2, our year-to-date inorganic revenue from the two acquisitions has been performing ahead of pre-deal expectations, and we remain on track to realize our cost synergies as planned. In particular, the Socrates integration is offering substantial benefits to multinational and local Latin American clients. In conclusion, I am proud of what we accomplished this quarter and excited for the opportunities in front of us. While cyclical hiring trends will come and go, the long-term health of this industry and our business is exciting. Moreover, we believe we are well on track to achieving our 2023 goals and realizing the vision of our long-term strategy. We look forward to continuing to update you on our progress in the second half of the year. With that, I will hand it over to Peter Walker, our CFO, to take you through our financial results. Peter? Thank you, Josh. Good morning, everyone. Turning now to an overview of our financial performance, starting with revenues on slide 11. During the second quarter of 2023, we reported revenue of approximately $190 million, a 7% decline compared to the second quarter of 2022 on a reported basis, and a 10% decline on an organic constant currency basis. The second quarter included a 320 basis point contribution from M&A, partially offset by a 50 basis points drag due to foreign currency translation. These results were in line with the expectations we provided on our May earnings call as our team continues to execute on our 2023 goals. We are seeing consistent success in the areas of our business most within our control, including growth from new clients and cross-sell, upsell, alongside strong revenue retention rates. Our momentum in winning market share and expanding wallet share with clients can help offset the unpredictability of base growth over time. Let me provide some detail on our revenue drivers in 2Q. First, we saw growth from new clients of approximately 5%, in line with our expectations. Notably, new client revenue dollars increased sequentially from 1Q to 2Q. Consistent with what Josh shared about our strong opportunity pipeline, we expect new client growth to return to our 7%-8% target range by end of the year. Second, we realized solid growth from upsell, cross-sell of 5% at the top of our long-term target range and a strong sequential revenue dollar increase from 1Q to 2Q. Client adoption has been strong for services we provide to our identity partnerships, and we continue to expand our unique global capabilities through innovative new solutions. We view identity verification as a significant opportunity to expand our addressable market and revenue growth along with accretive margins. It's exciting to see our investment coming to fruition. Third, our LTM client retention was 95%, also within our long-term target range, as we continue to focus on client service excellence and enhancing client and candidate experiences. These results from the revenue drivers in our control were offset by base business declines caused by continued macroeconomic uncertainty. It's worth noting that our base revenues improved from 1Q to 2Q, while the year-over-year rates are being impacted by year-over-year comps. This quarter, we lapped a particularly strong 2Q 2022, during which we reported a company record of quarterly revenues of $206 million, as well as a strong 23% growth rate. Moreover, current industry hiring volumes remain strong relative to history and are down year-over-year only when measured against 2022's record levels. Looking further back, our 2Q 2023 revenues grew at a 10% CAGR over the past four years since 2019, demonstrating the strong secular growth we've delivered through this cycle. Looking at revenues by region, our US business is down 7% year-over-year in the second quarter. Within the US, we have a diversified and attractive vertical mix, which has been instrumental in supporting our compelling revenue growth in recent years. In the second quarter, our US performance was led by our healthcare vertical, which continued to grow year-over-year. We saw softness in some other verticals, including tech media and staffing. Revenue in our international business is down 10% in the quarter, including a three-point drag due to foreign currency translation. Similar to the U.S., base volume declines offset good trends in revenue drivers we control. Our international business is benefiting from a consistent trend of clients looking to consolidate globally to a single scalable provider. International results were led by the EMEA region, which saw year-over-year growth driven by robust new client wins. In the second quarter, we delivered 3.2% of inorganic revenue growth from Socrates and A-Check, the two acquisitions we closed in Q1 of this year. We continue to be pleased with both companies' results matching or exceeding our initial expectations. As Josh described, our integration work is tracking well to deliver on the upside potential from these deals, including the attractive geographic expansion capabilities presented by Socrates and the robust synergy potential at A-Check. Our continued success in integration gives us increased confidence to execute on additional M&A in the future when synergistic targets become available at the right valuations. Turning to slide 12, our second quarter Adjusted EBITDA was $50 million, an 11% decline compared to last year due to the base revenue decline. We are pleased that our Adjusted EBITDA margins this quarter were 26.3%, ahead of the expectations we communicated in our May earnings call. This outperformance was driven by continued progress on our cost optimization initiatives and financial discipline. As Josh described earlier, we have several cost initiatives underway, which are aimed at driving meaningful cost savings and efficiency gains. These programs will be executed over 2023 and 2024. When complete, we are targeting an annualized cost savings of $25 million and expect to see in-year savings of $10 million in 2023. We plan for these initiatives to drive permanent reductions in our cost profile and position the company to scale efficiently and profitably over the long term. One of the cost savings initiatives on our 2023 roadmap is the closure and downsizing of facilities as part of our virtual-first strategy. In the second quarter, we executed on seven such closures or downsizings, resulting in impairment charges and accelerated rent expense of $9 million, which were added back for the purposes of Adjusted EBITDA. Through the first half of 2023, we are pleased with the progress we made on cost optimization initiatives and will continue to keep laser-focused on execution. In the second quarter of 2023, we had Adjusted Net Income of $26 million, or $0.28 per diluted share, representing a year-over-year decline in adjusted EPS of 15%. This year-over-year decline was primarily driven by the decline in Adjusted EBITDA, with a lower tax rate partially offset by higher interest expense. Turning to slide 13, free cash flow year to date was approximately $24 million, a 6% increase from the prior year period. The drivers of the increase include an improvement in cash flow from our interest rate hedging program and lower PP&E spend, partially offset by higher interest payments. We remain very focused on free cash flow and are pleased that our free cash flow conversion of Adjusted EBITDA over the past 12 months has been 45%, solidly within our annual target. Our net leverage at quarter end was 2.4 times net debt to Adjusted EBITDA at the lower end of our two-three times target. Year to date, we've spent $49 million of net cash on our two acquisitions and $25 million on share repurchases, including $17 million during the second quarter. Our net leverage remains at an attractive level and is poised to continue declining and would have fallen below 2x without our M&A or buyback activity. We ended the quarter with total debt of $502 million, cash and cash equivalents of $49 million, and $195 million available under our credit facility, providing us with ample capacity to execute our growth strategy of reinvesting in organic revenue growth and pursuing M&A. This year, we have also enhanced our capital structure through the implementation of an interest rate hedging program, which fixed approximately 60% of our floating rate debt. Our capital allocation priorities remain: investing in organic revenue growth, pursuing M&A, and maintaining a healthy balance sheet. This includes opportunistic share buybacks under our previously announced share repurchase program. These priorities hold true in a lower growth environment, as we see macro uncertainty as opportune times to build the foundation for future success. On slide 14, we show our updated guidance for 2023. For 2023, we expect to generate revenues of $760 million-$780 million, representing year-over-year change of -1% to +1%. Adjusted EBITDA of $198 million-$208 million, representing year-over-year growth of 0%-5%, and Adjusted Net Income of $106 million-$114 million, representing year-over-year growth of 0%-7%. Our revenue guidance range includes full year organic constant currency revenue change of -3% to -1.5%. As we discussed earlier, we continue to see solid growth in items within our control, including new client wins and upsell cross-sell. That said, these items are being offset by base revenue declines. As Josh shared, we've seen softness in base revenue in the back half of June and in July, and as a result, we have tightened the ranges for 2023 revenue, Adjusted EBITDA, and Adjusted Net Income guidance to better reflect that softness. Our implied second half revenue guide shows marked improvement over the first half of 2023 and year-over-year. This improvement is being driven by robust new revenue coming online over the back half from new clients and upsell cross-sell, as well as easing year-over-year comps. We have a significant amount of revenue from new clients that have gone live or are expected to go live in the coming months. We also have a stronger pipeline of advanced opportunities and have seen better win rates compared to last year. Looking at a revenue cadence by quarter, we expect year-over-year declines in Q3 total reported revenues that are narrower than Q2's 7% decline. In Q4, we expect to see substantial improvement, including double-digit year-over-year growth in total reported revenues as more business comes online and we lap far easier year-over-year comps. Included in our total reported revenue guidance is 2.5%-3% of inorganic revenue growth from our two M&A deals. We are also assuming no impact from foreign currency in line with previous assumptions. Turning to profitability, our 2023 guidance includes Adjusted EBITDA growth of 0%-5%. We expect margins over the back half of 2023 to improve from the first half as our revenue trends improve, the benefits from our cost actions ramp, and year-over-year margin comps ease. Q3's margin will likely be similar to Q2's margin of 26.3%, while we expect substantial improvement in Q4, when more new business has gone live and year-over-year comps ease. Finally, turning to our Adjusted Net Income guidance of 0%-7%, we expect a similar cadence to reported revenue and margins. We are benefiting this year from reduced D&A, which should drive growth to the bottom line in excess of our Adjusted EBITDA growth. We're encouraged by the leverage in our financial model, driving Adjusted EBITDA growth during 2023 ahead of our revenue growth, and driving Adjusted Net Income growth ahead of Adjusted EBITDA growth. To further help with your modeling, we've included a page in the appendix with our updated assumptions for 2023 and a detailed breakdown of our revenue guidance. In closing, we are reaffirming our long-term targets on slide 15. Over the long term, we are targeting a 9%-11% organic revenue growth level, with margins expanding to 29%-32%+ and Adjusted Net Income growth of 15%-20% per year. Even in the absence of robust revenue growth this year, we expect 2023 to be a healthy step towards achieving our profitability targets. That concludes our prepared remarks. At this time, operator, please open the line for questions. Thank you. If you would like to ask a question, you may do so by pressing star followed by one on your telephone keypad. To revoke your question, please press star followed by two. When preparing for your question, please ensure your phone is unmuted locally. Our first question comes from Mark Marcon from Baird. Your line is now open, Mark. Please go ahead. Hey, good morning. Thanks for the, for the update. Really encouraging to hear about the margins and the second half. I'm wondering, with regards to the second half guidance, you know, you did see a little bit of a decline with regards to the base growth in June and July. What are you assuming in terms of the base for the, for the second half of the year? How would that base level compare to, say, you know, 2018, 2019 type, you know, levels? Is it, is it higher or lower? Then I have a couple of follow-ups. Hey, Mark, it's Josh. Good morning, and, and thanks for the, for the question. Let me just, start by, by saying that I think, first of all, we have seen August so far, it's early, but, but be a little bit better than what we saw in June and July, more in line with what we had been seeing in kind of the, the, April-May timeframe. As we thought about our guidance for the year, going back to when we first said it- ... you know, we shared that we had set a pretty wide range, relative to prior years, because of the uncertainty in the macro. As we saw June and July, have a slight, you know, change in the base. It wasn't, you know, huge numbers, but it was a little bit lighter than we had expected. It caused us to really just gravitate towards that lower part of our previously set range. It was one of the scenarios we had foreseen in setting guidance, and so we're assuming that the macro we've seen kind of in June, July, continues more or less through the year, in terms of the guide that we've set now. Hey, good morning, Mark. It's Peter. I would just add that we, we did see base revenue grow Q1 to Q2. It's just the year-over-year comp in Q2, given Q2's record quarter, is driving the base, you know, so at, at the negative level reported. Great. Then with regards to, you know, the pipeline, you mentioned, you know, that particularly for Q4, it looks like, you know, there's some RFPs that are looking really good and that those are larger deals and potentially include, you know, more modules or more screens and more solutions. I'm wondering, can you talk a little bit about, you know, what the source of those clients are? Are they domestic or international? Are they coming from, you know, some of the other big players, or is it part of the consolidation that's occurring across the industry? Hey, Mark, it's Josh. Let, let me go first, and then if Peter wants to add. First of all, what we're counting on for the remainder of the year is deals that are largely already signed and locked and loaded. I think our commentary on the pipeline, we do have some that we would expect to get added as well, but that's really more of thinking forward into next year, where we're comfortable. As we've shared on previous calls, we do expect our new business to return to our long-term target of 78% by the end of the year. We continue to expect that based on the pipeline and the signed deals that are already there, as well as the deals that are already billing. We're very encouraged by the trends we're seeing there, as well as on the cross-sell and up-sell, which, you know, we should mention is at the high end of our range for Q2, even in the uncertain macro and even with what we saw in June, in late June, on the cross-sell, up-sell, we're doing a really good job. Really proud of the teams in, in being able to do more with those accounts. I mention that because when you talk about, is this consolidation or who are we winning from? You know, we win from all competitors, really, all around the, the world. We do see, though, more and more consolidation in our existing clients who are looking to use this time to consolidate vendors, and that's benefiting us in that cross-sell and up-sell space, because we're displacing people who are doing a little piece of the work, and we're able to, to, to bring that on. We're excited. I, I should say, I didn't answer your first question on kind of trends, you know, before COVID. I think you mentioned kind of 2018, 2019 in terms of base, and, and, revenues in general. I think what, what we would say is, in, in dollars, you know, our revenues are really strong this year relative to before COVID. They're also really strong, frankly, relative to 2021, which had been a record year. It really is the comps to 2022 that is driving most of the of the base growth decline that you're seeing, if not all of it. We are encouraged by the trends, and we do feel like we've got, you know, good guidance here for the for the rest of the year. That's terrific, Josh. Peter, thanks. Thanks, Mark. Thanks, Mark. Thanks, Mark. Our next question comes from Andrew Nicholas, from William Blair. Andrew, your line is now open. Please go ahead. Thank you, and good morning. I wanted to ask about just the vertical level stabilization. It seems like Peter, from your comments, tech, media, staffing had some weakness in the quarter, but healthcare was strong year-over-year. Just wondering if you could make any comments on kind of how you expect the vertical level cadence to kinda progress as we move through the year, or any signs at that level of stabilization? Because it does look like from what I'm the math I'm doing, that you're expecting now a sequential uptick in dollars of revenue, third quarter, fourth quarter. Just wondering, outside of new business, if there's any other areas at the vertical level that's giving you that conviction. Yeah, sure. Appreciate the question. Good morning, Andrew. As we shared in our prepared remarks, we're really excited that healthcare continued to grow year-over-year in the quarter and by EMEA's performance growing year-over-year in the quarter. In terms of go-forward guidance, we don't provide that at the vertical level, as you mentioned, we did provide that we expect the Q3 year-over-year decline on a total reported revenue basis to narrow from the 7% in Q2. We expect, you know, substantial acceleration in terms of Q4 growth this year over Q4 of last year, and that's driven by our confidence in our new client wins, our cross-sell, up-sell, and the easing year-over-year comps. Understood. Thank you. Then for my follow-up, I wanted to hone in on post-hire specifically. I know over the past several quarters and, and really ever since you've been public, you've talked pretty, pretty strongly about, about identity. Post-hire, is there anything specific to, to call out there in terms of, of adoption rates? Are there are regions or verticals where you're seeing strength there in particular? Any other color would be great. Thank you. Yeah. Hey, Andrew, it's Josh. Thanks for the question. I think that we haven't shared, you know, specific information broken out on the monitoring. What we did share is that the combination of identity and monitoring crossed that 10% threshold in Q1, crossed it again in Q2. We're pleased to see that progress with these newer solutions that are more adjacent to our core business historically. I think that what we shared, though, previously on monitoring, is that we have, in our view, found a way to have a more subscription-based offering that gives more certainty of price to our clients as well as us. That allows us to actually push that product in a way that we think competitively differentiates us and is starting to gain traction with clients in areas where that's something that's important to them. We're seeing that momentum gain, in addition to what we've shared previously on things like licensing and motor vehicle monitoring, you know, those other areas that are not the criminal monitoring area. Those have been strong and continue to be strong, and they're things that clients in certain segments just absolutely have to do. If you're in healthcare, for example, you have to be monitoring whether people continue to have their licenses or else you can, you can get into really bad trouble. I think the last thing I would note, which is actually on your, your previous question, where you, you talked about the sort of growth in raw dollars that we're expecting, you know, through the year. It is actually consistent with what we've seen, where growth from Q4 to Q1 to Q2 in raw dollars, throughout is consistent with what we would have expected to see from a seasonality perspective. Again, muted relative to 2022, but if you kind of look at the first half of this year, versus, you know, 2021 from a CAGR perspective, we're performing at the top of our long-term range over that two-year period, and even stronger if you go back to 2019. Again, you know, this is a year where, given the strength of last year, some of the softness this year as the Fed and other banks are trying to cool off the job market, we're very proud of how we're performing, where other than last year, it continues to be, you know, very, very high. That's why we mentioned we're still seeing strong hiring volumes from our clients and more clients. It's just really relative to last year. Andrew, maybe just the other point on identity and post-hire, right? As we march towards our Adjusted EBITDA long-term margin targets of 29%-32%+, identity and post-hire is accretive to our gross margin on the pre-hire business. Makes sense. Thank you. Thanks, Andrew. Our next question comes from Toni Kaplan from Morgan Stanley. Toni, your line is now open. Please go ahead. Thanks very much. Wanted to dive into the second half ramp. I think you highlighted some new deals that are coming online. I guess maybe, how much visibility do you have into those deals actually, you know, starting in second half? In other words, I guess, how conservative is the bottom end of the revenue guidance? Hey, Toni, it's Josh. Thanks for the question. I think first, you know, we, we do have good visibility into what we're counting on for the second half. Again, assuming the macro consistent with kind of what we've seen June, July. That's really the bigger question, I think. We're confident in what we're seeing from the new and the cross-sell/upsell. In terms of visibility, on a number of these bigger deals, I'm having direct conversations myself with the clients to understand their, their plans for the year, and we feel good about where we have set the guidance at this point. Terrific. Earlier in the year, I think you were seeing some integrations being pushed out. Is that still taking place? You know, just does that impact timing at all, in terms of, of, you know, deals coming online? Thanks. Yeah. Hey, Toni, thanks. No, we've seen more of a normalization of the onboarding. Again, you know, what we had seen before was really clients telling us we're going live here and then pushing it. We haven't seen that behavior since, you know, the Q4 changes that we had mentioned. Okay, thank you. Just a reminder, Toni, right, in terms of absolute dollars, we saw an increase in absolute dollars from new clients in revenue Q1 to Q2, an increase in absolute dollars Q1 to Q2 in cross-sell/upsell. Really proud, obviously, that cross-sell/upsell was at 5% of the high end of the range, new business at 5%. New business is being muted by what's happening in the macro. If it wasn't for the macro, we would have expected new business to be, you know, closer to the lower end of the seven-eight range in the second quarter. Terrific. Thanks a lot. Thanks, Toni. Thanks, Toni. Our next question comes from Kyle Peterson from Needham. Kyle, your line is now open. Please go ahead. Great. Thanks, guys. Good morning. You know, wanted to touch, you know, a little bit, you know, on some of the, the slower base growth that you guys called out in, you know, the latter part of June and in July. Is there any more specific color, whether it's-...? Has it been concentrated in any specific verticals or geographies or even, you know, kind of sub sections of the pyramid? Any, any more color there would be really helpful. Hey, good morning, Kyle. Yes, we saw the, you know, reduced base, really in the last half of June, continue in July, and then as Josh shared, overall revenues, we've seen a pickup in August. That was broad-based in terms of where we saw the base declines. I think it's very consistent with what you've heard from others like Equifax, Robert Half, et cetera. Whether it's an anomaly, a lot of people on vacation, et cetera, or something else, obviously, you know, lots of thoughts out there on that. I think what we are pleased about, again, we have seen, you know, August more in the range of what we would expect for total revenue. Okay. That's helpful. Then, I know you guys kind of touched on, you know, better win rates, in the first half of this year. Just wanted to see, are you guys having, you know, better win rates, this specifically against, you know, maybe some of the smaller mom-and-pop or mid-market players, more against some of the larger competitors, or these improved win rates just across the board, in terms of what you guys are seeing in the first half of the year? Hey, Kyle, thanks for the question. I think, you know, what I would say is, first of all, we consider ourselves a very strong competitor. We think the offering we provide is best-in-class. That's our goal. We believe we're delivering on that. We believe we have the most comprehensive set of services. We believe that we have the best technology. We believe being in the cloud differentiates us, that we're able to release enhancements and new code and constantly be innovating. We think we're at the front end, so things like we just mentioned, the enhancement we've made to I-9 for virtual, remote inspection. That is something that, you know, we're the only player out there that's, that's said that so far. We think we, we tend to really be at the forefront, and our clients recognize that, as do prospects. When we get the opportunity to go and talk about a cross-sell, upsell opportunity or talk about a new business win, it doesn't really matter who we're competing with. We feel like we have competitive advantages against everyone, and we feel like we take advantage of those, and we win those, and that's why we do think that we have the best new business win rates, you know, that are out there. I think that, you know, our view is that the market for services in the background and identity spaces is very strong. You know, we think that the industry is poised, as the macro does, ultimately shift back, to really grow in a very strong way. We think there's a lot of addressable market. We think people need our services more and more. We think that it's a strong industry. There's a strong case, you know, for being very long on the background check and identity services industries. We also think we're the best player in that industry, so we think both things are true, and we are winning deals really from competitors of all sizes in all geographies. There's nothing to call out in terms of, you know, specifically this or that is more likely. Got it. It's very helpful. Thanks, guys. Thanks, Kyle. Thanks, Kyle. Your next question comes from George Tong from Goldman Sachs. Your line is now open. Please go ahead. Hi, thanks. Good morning. New customer growth and cross-sell, upsell have continued to mitigate base volume business declines. Can you elaborate on some of the product and sales initiatives you have to drive, sustain, the performance with new customer growth and cross-sell, upsell? Then also discuss assumptions around new customer growth and cross-sell, upsell in the second half of the year that's reflected in your guide. Are you assuming stable performance from 2Q or improved performance relative to 2Q? Hey, George, it's Josh. Thanks for the, for the questions. I think first, I'll take the second part of your question first and then maybe talk about the things that are driving it and the way we're doing it. I think, you know, as we've shared previously, our long-term goal on cross-sell and upsell is four-five. We are happy that we've been in that range, both Q1 and Q2 at the high end in Q2. You know, we would expect to continue performing in line with our long-term target on cross-sell, upsell through the year, so we're not calling out a, a specific jump there. On new business, you know, we've been clear, I think, since the beginning of the year, that we expect by the end of the year to have returned to our long-term target of 7%-8%. Our view is obviously that would imply an improvement. We haven't broken that out in Q3, Q4 for you, but we do expect that to get back to the 7% by the end of the year, which is what we've previously shared. In terms of, you know, how we go about selling, I think there's a number of things that we do, and it starts with the very, very basic point that you have to have a product people are gonna want. When we get an opportunity to demo the experience that clients will have on our tool, if they're not currently a client, that tends to be something that, in and of itself, opens the door for them to want to work with us 'cause they want to use that tool relative to what they are using today from one of our competitors. That really puts us on great footing. I think the second thing is, you know, right now, as clients are looking to control costs themselves, they really want to have a provider that they can consolidate around so that they can save money by not having multiple providers when they could have one. That's benefiting us because of the wide range of services that we can offer that others can't. That helps us both in a cross-sell, upsell world, where a client's consolidating around what they do and we're, we're one of their providers today, we're likely to get more. When someone is looking for a new provider, even if they're not looking for all the services at once, they want to know it's available to them, if and when they choose to make that, that change. The next thing I would say is, you know, I'll put my sales team up against any sales team in this business. We think that, you know, we've got really strong sellers. They understand Sterling's products and what we do, but more importantly, they specialize in the industries they're supporting. They really understand the client needs to a very detailed level. When a client asks a question or says, "Hey, can we do this?" It's something we've likely seen or done before with other clients, and our tools are flexible enough to allow them to do that without us having to build a whole customized system for them. We think that those things really do, you know, add up. The final piece I will say is, you know, we think identity is winning a lot of business for us right now. You know, as I mentioned in my prepared remarks, having almost 50% of all new deals in the first half of this year include identity, is a great trend for us. It really sets us up to now go hunt in existing clients because they should be doing it, too, and we're having really strong conversations with them about it. It's obviously easier when you're in the context of an RFP with a contract to add that service. Now we're taking what we've learned, and we're able to use the experiences of these new clients to go after the base and help that to drive. That, we really do believe, is a significant differentiator for us in new business, in cross-sell, and upsell. Got it. That's very helpful context. And then with respect to margins, you're continuing to expect margin expansion for the full year, despite lack of revenue growth because of your cost optimization plans. Can you talk a little bit about some of the remaining initiatives you have around cost optimization in the second half of the year and heading into 2024? Hey, George. Good morning, it's Peter. Yeah, happy to talk about that. As we've discussed, really there's three pillars to our cost optimization program. The first is our work in our product fulfillment areas and optimizing the global process there. The second is our virtual first model and closing or reducing facility sizes, and then the third is our functions. We expect to deliver $10 million of in-year saves from all three of these in 2023, and those saves for the majority to come through in the back half of the year. Of the saves generating that $10 million, that's an $18 million run rate on those saves. In totality, we expect the program to deliver a $25 million run rate with the other things that we currently have in process developing. When we think about the rest of the year in margins, right, as we've guided, Q3, we expect to come into a similar margin of Q2, which was a beat at 26.3%, and then we expect margins to further expand in Q4 as revenues increase from new business, cross-sell, upsell, and we're lapping easing comps, and we have additional savings delivered during that quarter, bringing us to the full year guidance we've shared for adjusted EBITDA at the midpoint of $203 million. Got it. Very helpful. Thank you. Thanks, George. Our next question comes from Scott Wurtzel from Wolfe Research. Scott, your line is now open. Please go ahead. Thanks. Good morning, guys. Thanks for taking my questions. Maybe first on the margin profile for identity and post-hire verification being higher, I'm just wondering what the drivers of that are. Is it because maybe there's, you know, with clients you're upselling to, you're already there on the implementation side, so there's lower costs, or are there any other drivers there that's producing a higher margin growth file on those products? Hey, Scott. Good morning, it's Josh. I think if you, if you think about those products, in the case of, of the identity solutions, you know, use the U.S. as example, you know, we're working with ID.me. They have a database, they have the records, we're accessing it. The deal has been structured as a revenue share, which we've, we've previously provided to you. That's really the extent of our costs. You know, we're not having to go pull things from multiple places. We know exactly what is there, and that is, is higher margin. There's not a lot of SG&A for us to support that because it's a product that we're leveraging through the partnership that we've now renewed through 2028. The, the monitoring solution is also, you know, much more consistently checking databases and historical things versus in the context of, you know, a normal background check, where we may need to go check courthouses. Those are gonna have pass-through fees. In the case of a verification, we're gonna need to probably go to Equifax for The Work Number, and that's gonna have a pretty hefty fee with it. In the case of drug and health screening, we're gonna have lab services that are gonna be, you know, a big chunk of, you know, of the revenue. When you think about the profile of the core products that we offer, those are very much based on us doing the right work for the client, getting the best answer. In order to do that, the data sources that we go to access, the vendors that we have to use, have costs that, as we've shared before, equate to roughly 80% of our cost of, of revenues. In the case of the identity offerings with ID.me and Yoti, as well as our monitoring solution, they don't have that level of underlying cost associated with them, and they don't have the same SG&A for our team to have to go do all this work researching information that we gather to make sure that it's accurate before we deliver it, because we're able to access things that have been cultivated and managed more on an ongoing basis. Got it. That's super helpful. Then maybe just as a follow-up, going back to the trends by verticals. I mean, you know, you called out the strength in healthcare and talked about a little bit of softness in tech, media, and staffing. Just wondering if you can maybe give a little bit more color on some of the other verticals, whether it's financial services, transportation, industrials, you know, anything else would be helpful? Yeah, happy to. Yes, as we, as I shared in prepared remarks, healthcare, we're quite pleased with, you know, continuing year-over-year growth. It's obviously been a strategic vertical for us and EMEA, with continuing year-over-year growth in the quarter. Tech media, we saw softness. Staffing, we saw softness. Then I'd say the rest of the verticals in terms of performance, you know, the base growth impact that we saw kind of, you know, end of June, was pretty much uniform across the rest of the verticals, in the US and internationally. Got it. That's helpful. Thanks, guys. Yeah. Thanks, Scott. Thanks, Scott. As a reminder, if you would like to ask a question, please press star followed by one on your telephone keypad. Our next question comes from Shlomo H. Rosenbaum from Stifel. Your line is now open. Please go ahead. Hi, this is Adam on for Shlomo. The post-hire and identity products now over 10% of revenue, consistent with first quarter. Is growth expected to accelerate further in that area, or is growth in that area more, more steady as it has been while the prescreen business has been shrinking? Hi, Adam, it's Josh. Thanks for the question. I think, you know, what I would start with is, we've been seeing our identity and monitoring solutions have strong growth really since 2019, and as we've added new features and new functions and come out with better products, like we did with the partnership with ID.me, like we did with, you know, the work that we've done to have a subscription-based monitoring solution that, that we now have in market, we've seen that growth accelerated. We've shared some figures about that on our Q4 call and additionally on our Q1 call. We expect those to continue to grow. I think your question, which is the mix question, like, do we expect them to grow as a% of revenue? You know, over time, we do, and we've, we've certainly said that. You know, obviously in, in our view, we wanna see our, our background check revenues also grow. Once that is happening, we'll expect to see the, the post-hire and the identity solutions, once we get to a normalized growth rate, those should grow faster than the rest of the business and become a bigger piece of the pie, and we're pleased that we're at that point already. I, I would note, particularly on the, on the identity side, you know, those are generally orders that are being combined with a background screen. I think part of the point that, that Peter was making, if you look at our base revenues and you think about the decline that we saw there in the quarter, and then you think about our new business and our cross-sell and upsell business, those also are muted from what we would expect those clients to be doing in a different macro. We're pleased with where we are, based on the fact that, you know, we, we think that overall ordering has been muted, and nonetheless, we're delivering at the high end of our cross-sell, upsell target and, you know, a strong amount of new business, and again, growth in new business in raw dollars from Q4 to Q1 to Q2, which is what we like to see. Okay, thanks. Thanks, Shlomo. We have no further questions. With that, we can now conclude the call.