On August 1, 2024, Stagwell Inc (STGW, Financial) released its 8-K filing for the three and six months ended June 30, 2024. Stagwell Inc is the challenger holding company built to transform marketing. It delivers scaled creative performance for the world's ambitious brands, connecting culture-moving creativity with technology to harmonize the art and science of marketing. The company's segments include Integrated Agencies Network, Brand Performance Network, Communications Network, and others, with the majority of its revenue derived from the United States.
Performance Overview
Stagwell Inc (STGW, Financial) reported Q2 2024 revenue of $671 million, a 6% increase compared to the prior year period, surpassing the analyst estimate of $652.73 million. However, the company posted a net loss attributable to common shareholders of $3 million, consistent with the prior year period. Adjusted EBITDA stood at $86 million, reflecting a 6% decrease year-over-year, with an adjusted EBITDA margin of 16%. The company reported an EPS of $(0.03), missing the analyst estimate of $0.05, and adjusted EPS was $0.14.
Key Financial Achievements
Stagwell Inc (STGW, Financial) achieved record net new business wins of $113 million in Q2, contributing to a last twelve-month net new business total of $324 million. This performance is crucial as it demonstrates the company's ability to attract and retain significant clients, which is vital for sustained growth in the competitive Media - Diversified industry.
Mark Penn, Chairman and CEO, stated, "Stagwell delivered solid results this quarter with record-smashing net new business wins of $113 million, bringing our last twelve-month net new business figure to $324 million. Success for the year continues to build, with new business wins from General Motors, Macy's, Target, and Zales just coming online to bolster H2."
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Revenue | $671 million | $632 million |
| Net Loss | $(3) million | $(3) million |
| Adjusted EBITDA | $86 million | $91 million |
| EPS | $(0.03) | $(0.03) |
| Adjusted EPS | $0.14 | $0.18 |
Balance Sheet and Cash Flow
Stagwell Inc (STGW, Financial) reported total operating expenses of $649 million for Q2 2024, up from $611 million in Q2 2023. The increase in expenses was driven by higher costs of services and general expenses. The company also reported a net cash flow from operating activities of $176 million for the first half of 2024, an 8% increase compared to the prior year period.
Analysis and Outlook
Despite the net loss, Stagwell Inc (STGW, Financial) showed resilience with a 6% revenue growth and significant new business wins. The company's reaffirmed guidance for 2024, including organic net revenue growth of 5% to 7% and adjusted EBITDA of $400 million to $450 million, indicates confidence in its strategic initiatives and market position.
Frank Lanuto, Chief Financial Officer, commented, "Driven by record-breaking net new business and strong growth in Creativity & Communications, Advocacy, and Performance Media & Data, Stagwell delivered solid second quarter revenue of $671 million, a 6% increase over the prior year."
For more detailed financial information and analysis, visit the full 8-K filing.
Explore the complete 8-K earnings release (here) from Stagwell Inc for further details.
