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Jun 30, 2023
Stagwell Q2 2023 Earnings Report
Stagwell's financial performance declined, with revenue and net income decreasing compared to the prior year period. However, the company saw sequential quarter-over-quarter improvements in revenue, EBITDA and margin.
Key Takeaways
Stagwell reported a decrease in revenue and net income for the second quarter of 2023. Revenue decreased by 6% to $632 million, and net revenue decreased by 3% to $539 million. The company reported a net loss of $10 million, compared to a net income of $25 million in the prior year period. Despite these declines, Stagwell saw sequential quarter-over-quarter improvements in revenue, EBITDA and margin, and new business wins hit a quarter billion dollars in the last 12 months.
Q2 revenue was $632 million, a 6% decrease versus the prior year period.
Q2 net revenue was $539 million, a 3% decrease versus the prior period.
Q2 organic net revenue declined 5% versus the prior year period and 4.5% ex-Advocacy.
Q2 net loss was $10 million versus net income of $25 million in the prior year period.
Revenue by Segment
Forward Guidance
Stagwell provided its 2023 financial guidance, anticipating organic net revenue growth of 0% – 2%, Adjusted EBITDA of $410 million – $440 million, Free Cash Flow Conversion of 50% – 60%, and Adjusted EPS of $0.76 - $0.85.
Positive Outlook
- Organic Net Revenue growth of 0% – 2%
- Adjusted EBITDA of $410 million – $440 million
- Free Cash Flow Conversion of 50% – 60%
- Adjusted EPS of $0.76 - $0.85
- Guidance assumes no impact from foreign exchange, acquisitions or dispositions.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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