Stagwell Reports 8% Revenue Growth for Q1 2024

Stagwell has announced financial results for the first quarter of 2024 with revenue growth of 8%, led by 13% Growth from Performance Media & Data.

“Revenue in Q1 grew by 8% year-over-year to $670 million,” said Frank Lanuto, Chief Financial Officer.

“Cost actions taken in 2023 contributed to 25% growth in adjusted EBITDA or $90 million, representing a 17% adjusted EBITDA margin, an improvement of 320 basis points over the prior year. We are well positioned to achieve our 2024 targets, as we continue to focus on efficiency, especially through the implementation of AI on our shared services platform.”


 

Stagwell Q1 2024 Highlight

  • Q1 Revenue of $670 million, an increase of 8% versus the prior year period.
  • Q1 Net Loss attributable to Stagwell Inc. Common Shareholders of $1.3 million versus Income of $1.4 million in the prior year period.
  • Q1 Adjusted EBITDA of $90 million, an increase of 25% versus the prior year period.
  • Q1 Adjusted EBITDA Margin of 17% on net revenue, an improvement of 320 basis points versus the prior year period.
  • Q1 Earnings Per Share Attributable to Stagwell Inc. Common Shareholders of $(0.01) versus $0.00 in the prior year period.
  • Q1 Adjusted Earnings Per Share attributable to Stagwell Inc. Common Shareholders of $0.16 versus $0.14 in the prior year period.
  • Net new business wins of $66 million in the first quarter, last twelve-month net new business wins of $284 million.
  • Q1 Net Revenue of $532 million, an increase of 2% versus the prior year period.
  • Q1 Organic Net Revenue increased 2% versus the prior year period, led by 54% increase in Advocacy.

Looking ahead, Mark Penn, Chairman and CEO, said, “We are on target for 2024 with a return to growth and strong margin expansion led by the double-digit growth of the Performance Media & Data Capability. We see tailwinds of record new business, growth in advertising generally, and a strengthened market position given growing industry accolades for our work.”

2024 financial guidance is reiterated as follows:

  • Organic Net Revenue growth of 5% to 7%
  • Organic Net Revenue excluding Advocacy growth of 4% to 5%
  • Adjusted EBITDA of $400 million to $450 million
  • Free Cash Flow Conversion of approximately 50%
  • Adjusted EPS of $0.75 – $0.88
  • Guidance assumes no impact from foreign exchange, acquisitions or dispositions.

 

 


 

 

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