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Mar 31, 2022
Interpublic Group Q1 2022 Earnings Report
Reported a strong start to the year with revenue and earnings growth.
Key Takeaways
Interpublic Group announced strong Q1 2022 results, with net revenue of $2.23 billion, a 9.8% increase year-over-year, and organic net revenue growth of 11.5%. Net income was $159.4 million, and adjusted EBITA before restructuring charges was $273.6 million with a 12.3% margin. The company updated its full-year organic revenue growth outlook to approximately 6% and reiterated its expectation for an adjusted EBITA margin of 16.6%.
Net revenue increased by 9.8% to $2.23 billion.
Organic net revenue growth was 11.5%, with 12.2% growth in the U.S. and 10.2% internationally.
Net income was $159.4 million, with diluted EPS of $0.40 as reported and $0.47 as adjusted.
Adjusted EBITA before restructuring charges was $273.6 million, with a margin of 12.3%.
Forward Guidance
The company is updating its outlook for the year, from the previously-announced expectation for 5% organic revenue growth in 2022 to approximately 6%, and reiterating its expectation for adjusted EBITA margin of 16.6% for the full year.
Positive Outlook
- Updating outlook for the year to approximately 6% organic revenue growth.
- Re-iterating expectation for adjusted EBITA margin of 16.6% for the full year.
- Strong revenue growth over the course of 2021 and in the first quarter of 2022.
- The tone of the business remains positive.
- Commitment to client partners.
Challenges Ahead
- Macro uncertainty is still elevated as a result of geopolitical and public health issues.
- Effects of a challenging economy on the demand for advertising and marketing services.
- Impacts of the COVID-19 pandemic.
- Fluctuations in interest rates, inflation rates and currency exchange rates.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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