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Sep 30, 2024
Interpublic Group Q3 2024 Earnings Report
Interpublic Group's Q3 2024 results were discussed, with revenue before billable expenses unchanged organically and adjusted EBITA margin matching the previous year's performance.
Key Takeaways
Interpublic Group reported flat organic revenue growth for Q3 2024. The adjusted EBITA margin remained strong at 17.2%. The company is addressing underperforming areas and investing in high-growth segments.
Revenue before billable expenses was unchanged organically compared to the same period last year.
Adjusted EBITA margin was 17.2%, matching the strong performance from the previous year.
Diluted earnings per share was $0.05 as reported and $0.70 as adjusted.
The company continues to expect organic revenue growth of approximately 1% for the year and is committed to a margin goal of 16.6%.
Interpublic Group
Interpublic Group
Forward Guidance
The company continues to believe it will deliver organic revenue growth of approximately 1% for the balance of this year and remains committed to its margin goal for the year of 16.6%.
Positive Outlook
- Strong pipeline for project work in Q4.
- Larger AOR assignments that would take effect in the new year.
- Clear line of sight to the structural and market-facing changes that are needed to improve the company's growth profile.
- Shift in trading terms that has seen many clients accept and even embrace principal buying has clearly impacted the business.
- Very strong underlying financial position and a track record of operational delivery.
Challenges Ahead
- Economic and political uncertainty in the U.S. and in many of the largest international markets remains a significant consideration.
- Relatively high levels of discretionary project spend that characterizes Q4 and the holiday season.
- Facing topline headwinds as headed into 2025 due to the news flow seen on some recent large account reviews.
- Asset mix, which currently leans more heavily to capabilities that have more limited growth rates than the asset mix that one might find at some of the competitors.
- The need to change operating structure and profitability.