Dec 31, 2022

Interpublic Group Q4 2022 Earnings Report

IPG's Q4 2022 results were announced, featuring stable revenue and organic growth.

Key Takeaways

Interpublic Group (IPG) reported Q4 2022 total revenue of $2.99 billion and revenue before billable expenses of $2.55 billion, with organic growth of 3.8%. The company's diluted earnings per share were $0.76 as reported and $1.02 as adjusted. The board approved a 7% dividend increase and an additional $350 million for share repurchases.

Total revenue for Q4 2022 was $2.99 billion.

Revenue before billable expenses for Q4 2022 was $2.55 billion, relatively flat year-over-year.

Q4 2022 organic revenue growth was 3.8% across all regions.

Diluted earnings per share for Q4 2022 were $0.76 as reported and $1.02 as adjusted.

Total Revenue
$2.55B
Previous year: $2.55B
+0.1%
EPS
$1.02
Previous year: $0.82
+24.4%
Organic Revenue Growth
3.8%
Previous year: 11.7%
-67.5%
Adjusted EBITA Margin
22.3%
Previous year: 19.3%
+15.5%
Gross Profit
$648M
Previous year: $578M
+12.2%
Cash and Equivalents
$2.55B
Previous year: $3.27B
-22.2%
Free Cash Flow
$1.21B
Previous year: $1.4B
-13.4%
Total Assets
$18.8B
Previous year: $19.9B
-5.5%

Interpublic Group

Interpublic Group

Forward Guidance

IPG expects organic net revenue growth for 2023 of 2% to 4% and anticipates further expansion of the adjusted EBITA margin to 16.7% for the full year.

Positive Outlook

  • Strongest growth areas of our business, such as consultative media services, healthcare marketing, experiential marketing, and commerce.
  • Best-in-class data capabilities.
  • Creative assets.
  • Strong balance sheet.
  • Commitment to financial flexibility.

Challenges Ahead

  • Macroeconomic situation remains uncertain.
  • Marketers are approaching 2023 with caution.
  • Potential developments like the emergence of more transmissible or virulent coronavirus variants.
  • Associated mitigation measures, such as restrictions on businesses, social activities and travel, on the economy, our clients and demand for our services
  • The economic or business impact of military or political conflict in key markets.