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Dec 31, 2023
Stagwell Q4 2023 Earnings Report
Reported results for the three and twelve months ended December 31, 2023.
Key Takeaways
Stagwell reported Q4 2023 results, with a return to sequential net revenue growth and strategic cost management, leading to an adjusted EBITDA margin of 17%. The company completed the sale of ConcentricLife and is focused on digital innovation and AI integration for future growth.
Net new business in Q4 was $65 million, with LTM net new business exceeding $270 million.
Q4 revenue was $655 million, and net revenue was $551 million.
Q4 net income was $46 million, a significant improvement from the prior year period's net loss of $43 million.
Adjusted EPS for Q4 was $0.12.
Forward Guidance
Stagwell anticipates organic net revenue growth of 5% to 7% in 2024, with adjusted EBITDA between $400 million and $450 million, and a free cash flow conversion rate 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
- Ongoing macroeconomic headwinds
- Challenging year for marketing services and digital transformation
Historical Earnings Impact
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Avg. Return Before/After Earnings
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