Jun 30, 2022

Interpublic Group Q2 2022 Earnings Report

Interpublic Group reported strong second quarter results driven by broad-based growth across world regions and client sectors.

Key Takeaways

Interpublic Group announced its second quarter results with a net revenue of $2.38 billion, a 4.7% increase year-over-year, and an organic growth of 7.9%. The company's net income was $229.6 million, with an adjusted EBITA of $370.1 million and a margin of 15.6% on net revenue. Diluted EPS was $0.58 as reported and $0.63 as adjusted. The company expects FY22 organic growth to exceed 6.5% and to deliver a 16.6% adjusted EBITA margin for the year.

Net revenue increased by 4.7% to $2.38 billion compared to the previous year.

Organic net revenue increased by 7.9%, with 8.3% growth in the U.S. and 7.1% internationally.

Net income reached $229.6 million, resulting in diluted EPS of $0.58, while adjusted EPS was $0.63.

The company anticipates full-year organic growth exceeding 6.5% and an adjusted EBITA margin of 16.6%.

Total Revenue
$2.38B
Previous year: $2.27B
+4.7%
EPS
$0.63
Previous year: $0.7
-10.0%
Organic Revenue Growth
7.9%
Previous year: 19.8%
-60.1%
Adjusted EBITA Margin
15.6%
Previous year: 17.9%
-12.8%
Gross Profit
$436M
Previous year: $484M
-10.0%
Cash and Equivalents
$1.98B
Previous year: $2.34B
-15.4%
Free Cash Flow
-$132M
Previous year: $434M
-130.5%
Total Assets
$17.2B
Previous year: $17.3B
-0.4%

Interpublic Group

Interpublic Group

Forward Guidance

The Company expects FY22 organic growth to exceed 6.5% and to deliver 16.6% adjusted EBITA margin for the year.

Positive Outlook

  • The company expects FY22 organic growth to exceed 6.5%.
  • The company expects to deliver 16.6% adjusted EBITA margin for the year.
  • Company highlights strength of talent.
  • Company highlights strength of resources.
  • Company highlights strength of differentiated solutions.

Challenges Ahead

  • Facing a period of macroeconomic uncertainty.
  • Facing a period of geopolitical uncertainty.
  • Limited visibility that comes with such an environment.
  • Increased headcount from a year ago required to support strong 11.4% organic growth over the trailing twelve months.
  • Impact of the pandemic on our operating expenses a year ago, when certain expenses were at a historically low levels.