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Mar 31, 2023
Interpublic Group Q1 2023 Earnings Report
Interpublic Group's first quarter results reflected a slight decline in organic revenue and a decrease in net revenue, while confirming the company is on track to achieve its 2023 organic revenue growth target.
Key Takeaways
Interpublic Group announced first quarter 2023 results with a total revenue of $2.52 billion. Revenue before billable expenses was $2.18 billion, a decrease of 2.3% year-over-year, with an organic decrease of 0.2%. The company reported a net income of $126.0 million and confirmed it is on track to achieve its 2023 organic revenue growth target of 2% - 4%.
Total revenue, including billable expenses, was $2.52 billion.
Revenue before billable expenses (“net revenue”) was $2.18 billion, a decrease of 2.3% from a year ago, with organic decrease of 0.2%.
Net income was $126.0 million as reported.
The Company confirms it is on track to achieve its 2023 organic revenue growth target of 2% - 4% and to further expand full-year margin to 16.7%
Interpublic Group
Interpublic Group
Forward Guidance
Company continues to expect full-year organic growth at the midpoint of our range of 2% - 4%, with fully adjusted EBITA margin of 16.7%.
Positive Outlook
- Company is on track to achieve its 2023 organic revenue growth target of 2% - 4%.
- Company is on track to further expand full-year margin to 16.7%.
- Won a number of the industry's most competitive account reviews, encompassing a diverse set of services and client sectors.
- Demonstrated ongoing strong expense discipline.
- Strong operating discipline and financial fundamentals.
Challenges Ahead
- Certain areas of softness, notably among marketers in the technology sector.
- Slight decline in first quarter organic revenue.
- Operating income decreased from $245.7 million in 2022 to $188.3 million in 2023.
- Adjusted EBITA decreased from $273.6 million in 2022 to $210.8 million in 2023.
- Margin on adjusted EBITA decreased from 12.3% in 2022 to 9.7% in 2023.