Sep 30, 2021

Interpublic Group Q3 2021 Earnings Report

Interpublic Group's third quarter performance was highlighted by strong revenue growth across all regions and operating segments, driven by broad-based contributions from agencies and client sectors. The company increased its financial objectives for the full year, expecting organic growth of approximately 11% and an adjusted EBITA margin of approximately 16.8%.

Key Takeaways

Interpublic Group reported a strong third quarter with a 15.7% increase in net revenue to $2.26 billion and 15.0% organic growth. Net income was $239.9 million, and adjusted EBITA before restructuring charges was $369.5 million, with a margin of 16.3%. Diluted EPS was $0.60 as reported, and $0.63 as adjusted.

Net revenue for the third quarter was $2.26 billion, a 15.7% increase year-over-year, with organic growth of 15.0%.

Net income reached $239.9 million, with an adjusted EBITA before restructuring charges of $369.5 million and a margin of 16.3%.

Third quarter diluted EPS was $0.60 as reported, and $0.63 as adjusted, compared to $0.53 a year ago.

The company upgraded its full-year 2021 financial performance expectation to approximately 11.0% organic growth and an adjusted EBITA margin of approximately 16.8%.

Total Revenue
$2.26B
Previous year: $2.13B
+6.4%
EPS
$0.63
Previous year: $0.53
+18.9%
Organic Revenue Growth
15%
Previous year: -3.7%
-505.4%
Adjusted EBITA Margin
16.3%
Previous year: 16.2%
+0.6%
Gross Profit
$450M
Previous year: $377M
+19.3%
Cash and Equivalents
$2.49B
Previous year: $1.63B
+52.8%
Free Cash Flow
$329M
Previous year: $649M
-49.3%
Total Assets
$17.8B
Previous year: $16.1B
+10.8%

Interpublic Group

Interpublic Group

Forward Guidance

Based on expectations of a reasonably steady course of improvement in the public health situation and attendant global economic recovery, the company expects to deliver organic growth for the year of approximately 11% and achieve an adjusted EBITA margin of approximately 16.8%.