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Sep 30, 2022
Stagwell Q3 2022 Earnings Report
Delivered double-digit revenue growth and record net new business in Q3 2022 and shared roadmap for Stagwell Marketing Cloud
Key Takeaways
Stagwell reported strong third quarter results with GAAP revenue of $664 million, net revenue of $556 million and Adjusted EBITDA of $115 million. Pro Forma organic net revenue increased 11.3%. The company won a record $86 million of net new business during the quarter and reduced net debt by $125 million.
3Q GAAP revenue grew 42.3% and 16.8% on a Pro Forma basis; YTD Pro Forma growth of 22.8%
3Q Pro Forma organic net revenue growth of 11.3% and 16.7% YTD
3Q net income of $35.3M; 3Q EPS of $0.08 and adjusted EPS of $0.21 per share
Adjusted EBITDA of $115.1M in 3Q representing a 20.7% margin on net revenue
Revenue by Segment
Forward Guidance
2022 financial guidance is as follows:
Positive Outlook
- Pro Forma Organic Net Revenue growth of 16% – 20%, reflecting a more modest contribution from advocacy fundraising relative to the 2020 Presidential cycle due to a decline in closely contested races, persisting inflation, and hurricane impact in large markets.
- Re-iterating Pro Forma Organic Net Revenue growth ex-Advocacy of 13% – 17%
- Re-iterating Adjusted EBITDA of $450 million – $480 million
- Adjusted EPS of $0.86 – $0.94
- Re-iterating Pro Forma Free Cash Flow growth of approximately 30%
Challenges Ahead
- Guidance assumes no impact from foreign exchange
- Guidance assumes no impact from acquisitions
- Guidance assumes no impact from dispositions
- Persisting inflation
Historical Earnings Impact
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Avg. Return Before/After Earnings
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