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Mar 31, 2023
Stagwell Q1 2023 Earnings Report
Reported results for the three months ended March 31, 2023, in line with internal expectations and reaffirmed 2023 full-year guidance.
Key Takeaways
Stagwell reported first-quarter results in line with management expectations, with revenue of $622 million and an adjusted EBITDA of $72 million. The company reaffirmed its 2023 full-year guidance and announced a share repurchase agreement.
Revenue of $622 million, a decrease of 3% versus the prior year period.
First quarter net revenue of $522 million, a decrease of 1% versus the prior period.
Organic net revenue decline of 3%, and excluding advocacy of 1%, versus the prior year period.
First quarter Adjusted Earnings Per Share for Stagwell Inc. Common Shareholders of $0.13 versus $0.22 in the prior year period.
Revenue by Segment
Forward Guidance
Stagwell provided 2023 financial guidance, including organic net revenue growth of 7.5% – 10%, Adjusted EBITDA of $450 million – $490 million, and Adjusted EPS of $0.90 – $1.05.
Positive Outlook
- Organic Net Revenue growth of 7.5% – 10%
- Organic Net Revenue growth ex-Advocacy of 10% – 14%
- Adjusted EBITDA of $450 million – $490 million
- Free Cash Flow Conversion of 50% – 60%
- Adjusted EPS of $0.90 – $1.05
Challenges Ahead
- Guidance assumes no impact from foreign exchange
- Guidance assumes no impact from acquisitions
- Guidance assumes no impact from dispositions
- Company has excluded a quantitative reconciliation with respect to the Company’s 2023 guidance
Historical Earnings Impact
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Avg. Return Before/After Earnings
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