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Jun 30, 2024
Stagwell Q2 2024 Earnings Report
Stagwell's financial performance remained steady with revenue growth, offset by a net loss and a decrease in adjusted EBITDA compared to the prior year period.
Key Takeaways
Stagwell reported a 6% increase in revenue to $671 million for Q2 2024, driven by significant growth in Advocacy. However, the company experienced a net loss of $3 million, and adjusted EBITDA decreased by 6% to $86 million. The company reaffirms its 2024 financial guidance.
Revenue increased by 6% to $671 million, driven by 42% growth in Advocacy.
Net loss attributable to Stagwell Inc. Common Shareholders was $3 million.
Adjusted EBITDA was $86 million, with an Adjusted EBITDA Margin of 16%.
Net new business wins reached a record $113 million in Q2, with a last twelve-month total of $324 million.
Revenue by Segment
Forward Guidance
Stagwell reaffirmed its 2024 financial guidance, expecting Organic Net Revenue growth of 5% to 7%, Adjusted EBITDA of $400 million to $450 million, and Free Cash Flow Conversion of approximately 50%.
Positive Outlook
- Organic Net Revenue growth of 5% to 7%.
- Organic Net Revenue excluding Advocacy growth of 4% to 5%.
- Adjusted EBITDA of $400 million to $450 million.
- Free Cash Flow Conversion of approximately 50%.
- Adjusted EPS of $0.75 - $0.88.
Challenges Ahead
- Guidance assumes no impact from foreign exchange.
- Guidance assumes no impact from acquisitions.
- Guidance assumes no impact from dispositions.
- Unfavorable economic conditions could affect the company or its clients.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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