[Company Presentation and Remarks](index=2&type=section&id=Company%20Presentation%20and%20Remarks) [Q1 2024 Performance Overview (CEO's Opening Remarks)](index=2&type=section&id=Q1%202024%20Performance%20Overview%20(CEO%27s%20Opening%20Remarks)) The company reported a solid Q1 2024 with 1.3% organic revenue growth, driven by strong agency performance, and reaffirmed its full-year guidance despite challenges in digital and tech sectors Q1 2024 Key Financial Metrics | Metric | Q1 2024 Result | | :--- | :--- | | Organic Revenue Growth | 1.3% | | Adjusted EBITA Margin | 9.4% | | Diluted EPS (As Reported) ($) | $0.29 | | Diluted EPS (As Adjusted) ($) | $0.36 | | Share Repurchase (shares) ($) | 1.9 million shares ($62 million) | - Growth was driven by strong performance at IPG Mediabrands, FCB, IPG Health, and particularly Golin, which posted double-digit organic growth[12](index=12&type=chunk) - Key challenges that acted as a drag on growth were the underperformance of digital specialty agencies and the tech & telecom client sector, the latter being primarily due to a large AOR assignment loss from late 2023[14](index=14&type=chunk) - The company maintains its full-year outlook of **1% to 2% organic growth** and an **adjusted EBITA margin of 16.6%**. However, a recent decision by a major client will make achieving the top end of the growth target more challenging[18](index=18&type=chunk) [Detailed Financial Results (CFO's Remarks)](index=5&type=section&id=Detailed%20Financial%20Results%20(CFO%27s%20Remarks)) The CFO detailed Q1 2024 results, reporting **$2.18 billion** net revenue with **1.3%** organic growth, a **9.4%** adjusted EBITA margin, and improved cash flow from operations [Revenue Analysis](index=5&type=section&id=Revenue%20Analysis) Q1 net revenue reached **$2.18 billion** with **1.3%** organic growth, driven by Integrated Advertising and Specialized Communications, while Media and Asia-Pacific declined Q1 2024 Net Revenue Overview | Metric | Q1 2024 ($) | Change vs Q1 2023 | | :--- | :--- | :--- | | Net Revenue | $2.18 billion | +0.3% | | Organic Net Revenue Growth | 1.3% | N/A | Q1 2024 Organic Growth by Business Segment | Segment | Organic Growth (%) (Q1 2024) | | :--- | :--- | | Media, Data & Engagement Solutions | -0.5% | | Integrated Advertising & Creativity Led Solutions | +3.2% | | Specialized Communications & Experiential Solutions | +1.5% | Q1 2024 Organic Growth by Geographic Region | Region | Organic Growth (%) (Q1 2024) | | :--- | :--- | | U.S. | +2.1% | | U.K. | +0.2% | | Continental Europe | +8.9% | | Asia-Pacific | -8.1% | | Latin America | +3.0% | | Other Markets | -6.5% | [Operating Expenses and Margin](index=6&type=section&id=Operating%20Expenses%20and%20Margin) Q1 adjusted EBITA margin was **9.4%**, slightly down year-over-year, reflecting improved SRS ratio from headcount reduction but higher severance and SG&A expenses Operating Expense Ratios (% of Net Revenue) | Expense Ratio (% of Net Revenue) | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Total Salaries & Related Expense (SRS) | 72.1% | 72.5% | | - Base Payroll, Benefits & Tax | N/A (Leverage of 110 bps) | N/A | | - Severance Expense | 2.2% | 1.5% | | Office & Other Direct Expense | 14.8% | 15.2% | | SG&A Expense | 1.7% | 0.6% | - The company achieved **110 basis points** of operating leverage on base payroll, benefits & tax, partly due to a **2.1% decrease** in average headcount compared to Q1 2023[27](index=27&type=chunk)[29](index=29&type=chunk) - Severance expense increased by **70 basis points** year-over-year to **2.2% of net revenue**, with the benefits of these actions expected to positively impact margins later in the year[29](index=29&type=chunk) [Cash Flow and Balance Sheet](index=7&type=section&id=Cash%20Flow%20and%20Balance%20Sheet) Cash used in operations significantly improved to **$157.4 million**, reflecting disciplined working capital management, with the company maintaining a strong liquidity position of **$1.93 billion** cash and **$3.2 billion** total debt Q1 2024 Cash Flow Summary | Cash Flow Item (Q1 2024) ($) | Amount | | :--- | :--- | | Cash Used in Operations | ($157.4 million) | | Cash Used in Investing Activities | ($50.0 million) | | Cash Used in Financing Activities | ($227.1 million) | | Net Decrease in Cash | ($454.5 million) | - The company's working capital use of **$340.3 million** was near the low end of the range for the past 15 years, indicating disciplined cash management[29](index=29&type=chunk) - The company ended the quarter with a strong liquidity position, holding **$1.93 billion** in cash and equivalents. Total debt stood at **$3.2 billion**, with no maturities until 2028[31](index=31&type=chunk) [Strategic Initiatives and Agency Highlights (CEO's Concluding Remarks)](index=9&type=section&id=Strategic%20Initiatives%20and%20Agency%20Highlights%20(CEO%27s%20Concluding%20Remarks)) The CEO emphasized strategic innovation in data, technology, and AI, including partnerships with Adobe and Amazon, while highlighting strong agency performance and reiterating the full-year outlook [Technology and AI Integration](index=9&type=section&id=Technology%20and%20AI%20Integration) IPG is deeply integrating AI and technology, exemplified by its global partnership with Adobe GenStudio and leveraging its 'IPG marketing engine' with Acxiom's data for precision marketing - IPG announced a global partnership with Adobe, becoming the first company to integrate Adobe's GenStudio product to unite the content supply chain using generative AI[39](index=39&type=chunk) - The company's strategy is underpinned by a unified operating system, the 'IPG marketing engine,' which leverages Acxiom's data spine covering **2.5 billion people** to connect insights, media strategy, and creative execution[41](index=41&type=chunk)[48](index=48&type=chunk) - IPG became the first company to integrate Amazon Ads APIs into its proprietary media platform and rolled out an Amazon Marketing Cloud suite of analytics solutions[46](index=46&type=chunk) [Segment and Agency Performance Highlights](index=10&type=section&id=Segment%20and%20Agency%20Performance%20Highlights) Key agencies like IPG Mediabrands, FCB, IPG Health, and Golin achieved strong performance and significant industry awards, underscoring their leadership and innovative capabilities across segments - IPG Mediabrands was named 'U.S. Network of the Year' and UM was named 'Media Agency of the Year' by AdAge[47](index=47&type=chunk) - FCB won 'Global Network of the Year' at The One Show, and IPG Health was named 'Healthcare Network of the Year' on the AdAge A-List for the second consecutive year[51](index=51&type=chunk)[52](index=52&type=chunk) - Golin delivered very strong growth and was named PR Week's 'U.S. Agency of the Year.' The agency also introduced an AI-enabled platform to combat disinformation[55](index=55&type=chunk) [Full-Year Outlook and Capital Allocation](index=12&type=section&id=Full-Year%20Outlook%20and%20Capital%20Allocation) The company reaffirmed its full-year guidance of **1-2%** organic growth and **16.6%** adjusted EBITA margin, while leveraging its strong balance sheet for capital returns and strategic M&A in commerce and digital transformation - Full-year guidance is reaffirmed at **1% to 2% organic growth** and **16.6% adjusted EBITA margin**, though a recent client decision makes the top end of the growth target more challenging[58](index=58&type=chunk) - The company's strong balance sheet enables continued capital returns through dividends and share repurchases[60](index=60&type=chunk) - IPG is positioned to pursue M&A, with a specific focus on broadening its commerce and scaled digital transformation capabilities[60](index=60&type=chunk) [Questions and Answers](index=13&type=section&id=Questions%20and%20Answers) [Discussion on Tech Sector and Digital Agencies](index=13&type=section&id=Discussion%20on%20Tech%20Sector%20and%20Digital%20Agencies) Management clarified that digital specialty agencies and the tech/telecom sector each caused a **1.5%** drag on Q1 organic growth, with the tech sector showing signs of stabilization - In Q1, the drag from digital specialist agencies on IPG's overall growth was approximately **1.5%**[66](index=66&type=chunk) - The tech & telco client sector also represented a drag of about **1.5%** in Q1, an improvement from the **2%-2.5%** drag seen in 2023. About **60-70%** of this drag is due to a single AOR loss[67](index=67&type=chunk) - The company is seeing stabilization in the tech sector, with major bellwether tech clients being just below flat in Q1. The full-year guidance does not assume a return to growth for these challenged areas[68](index=68&type=chunk)[70](index=70&type=chunk) [Impact of Major Client Decision and M&A Strategy](index=14&type=section&id=Impact%20of%20Major%20Client%20Decision%20and%20M%26A%20Strategy) A major client decision will challenge the upper end of the **1-2%** organic growth target, while M&A strategy focuses on acquiring commerce and digital transformation capabilities - A recent decision by a significant client has made the upper end of the **1-2%** full-year organic growth target challenging. The financial impact is expected to begin in the back half of 2024 and continue into early 2025[73](index=73&type=chunk)[77](index=77&type=chunk) - The company's M&A strategy is focused on acquiring incremental scale in commerce and deep engineering capabilities in digital transformation to meet growing client demand in these areas[73](index=73&type=chunk)[78](index=78&type=chunk) [Performance of Healthcare and Experiential Segments & Working Capital](index=15&type=section&id=Performance%20of%20Healthcare%20and%20Experiential%20Segments%20%26%20Working%20Capital) The healthcare segment, led by IPG Health, continues to perform well and is accretive, while Q1 working capital usage was the lowest in **15 years**, with normalization expected for the full year - The healthcare business, led by IPG Health, continues to perform well and is accretive to the company's overall results, with broad penetration across major pharmaceutical companies[81](index=81&type=chunk)[82](index=82&type=chunk)[83](index=83&type=chunk) - Regarding working capital, Q1 2024 cash usage was the lowest in approximately **15 years**, and a more normalized result is expected for the full year[81](index=81&type=chunk)[89](index=89&type=chunk) [AI Strategy and Asia-Pacific Performance](index=17&type=section&id=AI%20Strategy%20and%20Asia-Pacific%20Performance) IPG's AI strategy, exemplified by the Adobe GenStudio partnership, aims to enhance creative effectiveness, while Asia-Pacific's weak performance was due to broad spending cuts, excluding India - The weak performance in the Asia-Pacific region, which represents **7% of revenue**, was due to many smaller spending cuts from a broad range of clients, with India being the exception[93](index=93&type=chunk)[94](index=94&type=chunk) - The partnership with Adobe for GenStudio is a key part of the AI strategy, creating a connected content supply chain that links content creation, storage, and distribution to data from Acxiom and Kinesso, enabling better measurement of creative effectiveness[96](index=96&type=chunk)[98](index=98&type=chunk) [Impact of Google's Cookie Deprecation Delay](index=19&type=section&id=Impact%20of%20Google%27s%20Cookie%20Deprecation%20Delay) Management is unconcerned by Google's cookie deprecation delay, viewing it as an incremental opportunity due to IPG's strong first-party data capabilities and client advisory - Management is unconcerned by Google's delay in deprecating third-party cookies, stating the company has been prepared for this eventuality for some time due to its strong data capabilities[107](index=107&type=chunk)[108](index=108&type=chunk) - The company views the eventual move away from cookies as an incremental opportunity, as it has been advising clients on leveraging first-party data and other identity solutions[108](index=108&type=chunk) [Media Growth and SG&A Investment](index=20&type=section&id=Media%20Growth%20and%20SG%26A%20Investment) SG&A expenses are increasing due to strategic investments in senior talent and technology to centralize data and AI capabilities, which are factored into full-year guidance for future growth - SG&A expenses are expected to be higher going forward due to strategic investments in senior enterprise talent and technology. These investments are intended to drive future growth and efficiency and are already factored into the company's financial guidance[111](index=111&type=chunk)[113](index=113&type=chunk) [U.S. GAAP Reconciliation of Non-GAAP Adjusted Results](index=23&type=section&id=U.S.%20GAAP%20Reconciliation%20of%20Non-GAAP%20Adjusted%20Results) [Reconciliation for Q1 2024](index=23&type=section&id=Reconciliation%20for%20Q1%202024) Q1 2024 reconciliation details adjustments from reported operating income of **$184.2 million** to adjusted EBITA of **$205.5 million**, and diluted EPS from **$0.29** to **$0.36** Q1 2024 GAAP to Non-GAAP Reconciliation | Q1 2024 Reconciliation ($) | As Reported | Adjustments | As Adjusted (Non-GAAP) | | :--- | :--- | :--- | :--- | | Operating Income | $184.2M | $21.3M | $205.5M (Adj. EBITA before Restructuring) | | Net Income Available to IPG | $110.4M | $24.9M | $135.3M | | Diluted EPS | $0.29 | $0.07 | $0.36 | [Reconciliation for Q1 2023](index=25&type=section&id=Reconciliation%20for%20Q1%202023) Q1 2023 reconciliation adjusts reported operating income of **$188.3 million** to adjusted EBITA of **$210.8 million**, and diluted EPS from **$0.33** to **$0.38** Q1 2023 GAAP to Non-GAAP Reconciliation | Q1 2023 Reconciliation ($) | As Reported | Adjustments | As Adjusted (Non-GAAP) | | :--- | :--- | :--- | :--- | | Operating Income | $188.3M | $22.5M | $210.8M (Adj. EBITA before Restructuring) | | Net Income Available to IPG | $126.0M | $20.9M | $146.9M | | Diluted EPS | $0.33 | $0.05 | $0.38 |

Financial Data and Key Metrics Changes - The company reported Q1 2024 organic revenue growth of 1.3%, with adjusted EBITDA margin at 9.4% [5][8][11] - Diluted earnings per share was $0.29 as reported and $0.36 adjusted for acquired intangibles and other impacts [8][11] - The company repurchased 1.9 million shares for $62 million during the quarter [8][11] Business Line Data and Key Metrics Changes - Media, Data and Engagement Solutions segment saw a 50 basis points organic decrease, while Integrated Advertising and Creativity Led Solutions segment grew 3.2% [11][13] - Specialized Communications and Experiential Solutions segment achieved 1.5% organic growth, driven by strong performance in public relations [11][13][36] Market Data and Key Metrics Changes - US organic growth was 2.1%, while international markets saw a 50 basis points organic decrease [11][15] - Continental Europe experienced an 8.9% organic increase, while Asia-Pacific decreased by 8.1% [15][16] Company Strategy and Development Direction - The company aims to enhance existing offerings and integrate advanced technologies like generative AI into marketing services [10][26] - Focus on data-driven media offerings and healthcare marketing expertise as key growth areas [9][39] - The company is committed to capital returns and exploring M&A opportunities to broaden commerce and digital transformation capabilities [40][52] Management's Comments on Operating Environment and Future Outlook - Management noted improved marketer sentiment and a more active new business pipeline compared to the previous year [23][39] - Full-year organic growth is expected to be in the range of 1% to 2%, with challenges anticipated due to a significant client decision [9][39] - The company is focused on leveraging its strong balance sheet for strategic investments and capital returns [40][41] Other Important Information - The company published its 9th annual ESG report, emphasizing its commitment to environmental, social, and governance priorities [38] - The partnership with Adobe aims to integrate generative AI into the marketing technology platform, enhancing creative processes [26][66] Q&A Session Summary Question: Can you see the tech segment growing in Q2 and later this year? - Management indicated that while the tech segment has stabilized, it is too early to confirm growth for Q2 [44][45] Question: What was the drag from R/GA and Huge on organic growth this quarter? - The drag from Digital Specialist Agencies was about 1.5% in Q1, with tech and telecom clients contributing similarly [44][45] Question: Can you unpack the impact of a significant client decision on 2024 organic growth? - Management stated that the decision will likely challenge achieving the upper end of the growth target, with impacts expected in the latter half of the year and early 2025 [50][51] Question: What are the expectations for working capital in 2024? - Management expects a more normalized working capital result in 2024, following a low usage in Q1 [61] Question: Can you discuss the opportunities and threats posed by AI? - Management highlighted that AI is being integrated into various business areas, enhancing efficiency and product offerings, while also acknowledging potential competitive threats [63][66]

FIRST QUARTER 2024 EARNINGS CONFERENCE CALL Interpublic Group April 24, 2024 Overview — First Quarter 2024 • Total revenue including billable expenses was $2.5 billion ◦ Organic growth of revenue before billable expenses (“net revenue”) was +1.3% ...

Core Viewpoint - The Interpublic Group of Companies, Inc. (IPG) reported mixed first-quarter 2024 results, with earnings meeting expectations while revenues exceeded estimates but showed a year-over-year decline [1] Financial Performance - Adjusted earnings per share were 36 cents, meeting the Zacks Consensus Estimate but down 5.3% year-over-year [1] - Net revenues were $2.2 billion, slightly surpassing consensus estimates but down 13.4% year-over-year [1] - Total revenues reached $2.5 billion, a decline of 1% and in line with estimates [1] - Operating income was $184.2 million, a decrease of 2.2% from the previous year and below the expected $245.9 million [2] - Operating margin on net revenues improved to 11.3% from 8.6% year-over-year, meeting estimates [2] - Adjusted EBITA was $204.9 million, down 2.1% year-over-year and missing the estimate of $265.4 million [2] - Adjusted EBITA margin on net revenues decreased to 9.4% from 9.6% in the prior year, lagging behind the anticipated 12.2% [2] Balance Sheet & Cash Flow - Cash and cash equivalents at the end of the quarter were $1.9 billion, down from $2.4 billion in the previous quarter [3] - Total debt remained flat at $3.2 billion compared to the previous quarter [3] - The company repurchased 1.9 million shares at an average cost of $32.4 per share, totaling $62.4 million [3] - A common stock cash dividend of 33 cents per share was paid out, amounting to $126.6 million [3] 2024 Guidance - The company anticipates organic net revenue growth of 1-2% for 2024 [4] - Adjusted EBITA margin is expected to be 16.6% [4] - Currently, Interpublic holds a Zacks Rank 4 (Sell) [4]

Core Insights - Interpublic Group (IPG) reported revenue of $2.18 billion for Q1 2024, reflecting a 0.3% increase year-over-year and a surprise of +0.39% over the Zacks Consensus Estimate of $2.17 billion [1] - Earnings per share (EPS) for the quarter was $0.36, unchanged from the consensus estimate but down from $0.38 in the same quarter last year [1] Revenue Performance - Revenue before billable expenses from International operations was $706.60 million, slightly above the average estimate of $698.27 million, with no year-over-year change [2] - Domestic revenue before billable expenses was $1.48 billion, matching analyst estimates and showing a +0.4% change from the previous year [2] - Revenue before billable expenses from Asia Pacific was $142.80 million, below the average estimate of $164.79 million, representing a -10.3% year-over-year decline [2] - Revenue before billable expenses from Other International regions was $119.20 million, exceeding the estimate of $96.45 million, but down -7.2% year-over-year [2] - Revenue before billable expenses from Continental Europe was $179.50 million, surpassing the estimate of $175.11 million, with a +9.7% year-over-year increase [2] - Revenue before billable expenses from the United Kingdom was $178 million, above the estimate of $174.84 million, reflecting a +4.6% year-over-year increase [2] - Revenue before billable expenses from Latin America was $87.10 million, below the estimate of $94.81 million, but showing a +2.8% change from the previous year [2] Stock Performance - Interpublic shares have returned -3.3% over the past month, slightly underperforming the Zacks S&P 500 composite's -3% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

[PART I. FINANCIAL INFORMATION](index=5&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) The unaudited consolidated financial statements for Q1 2024 show a slight decrease in total revenue and net income compared to Q1 2023, with reduced total assets and a net cash outflow from operations Q1 2024 vs Q1 2023 Consolidated Statements of Operations Highlights | Metric | Q1 2024 ($M) | Q1 2023 ($M) | Change | | :--- | :--- | :--- | :--- | | Revenue before billable expenses | 2,182.9 | 2,176.9 | +0.3% | | Total revenue | 2,495.9 | 2,521.0 | -1.0% | | Operating Income | 184.2 | 188.3 | -2.2% | | Net Income Available to IPG Common Stockholders | 110.4 | 126.0 | -12.4% | | Diluted EPS | $0.29 | $0.33 | -12.1% | Consolidated Balance Sheet Highlights | Metric | March 31, 2024 ($M) | Dec 31, 2023 ($M) | Change | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | 1,931.2 | 2,386.1 | -19.1% | | Total Assets | 17,286.1 | 19,267.3 | -10.3% | | Total Liabilities | 13,367.0 | 15,221.2 | -12.2% | | Total Stockholders' Equity | 3,883.1 | 4,003.8 | -3.0% | Q1 2024 vs Q1 2023 Consolidated Statements of Cash Flows Highlights | Metric | Q1 2024 ($M) | Q1 2023 ($M) | | :--- | :--- | :--- | | Net cash used in operating activities | (157.4) | (547.6) | | Net cash used in investing activities | (50.0) | (34.7) | | Net cash used in financing activities | (227.1) | (274.3) | | Net decrease in cash | (454.5) | (866.3) | [Note 2: Revenue](index=11&type=section&id=Note%202%3A%20Revenue) Revenue before billable expenses remained flat at $2.18 billion, with growth in the US and Continental Europe offset by a decline in the Asia Pacific region Revenue Before Billable Expenses by Geography (Q1 2024 vs Q1 2023) | Region | Q1 2024 ($M) | Q1 2023 ($M) | | :--- | :--- | :--- | | United States | 1,476.3 | 1,470.6 | | United Kingdom | 178.0 | 170.2 | | Continental Europe | 179.5 | 163.7 | | Asia Pacific | 142.8 | 159.2 | | Latin America | 87.1 | 84.7 | | Other | 119.2 | 128.5 | | **Total International** | **706.6** | **706.3** | | **Total Consolidated** | **2,182.9** | **2,176.9** | Revenue Before Billable Expenses by Segment (Q1 2024 vs Q1 2023) | Segment | Q1 2024 ($M) | Q1 2023 ($M) | | :--- | :--- | :--- | | MD&E | 961.3 | 965.9 | | IA&C | 881.4 | 870.5 | | SC&E | 340.2 | 340.5 | [Note 3: Debt and Credit Arrangements](index=13&type=section&id=Note%203%3A%20Debt%20and%20Credit%20Arrangements) Total long-term debt was stable at $3.17 billion, and the company maintained significant liquidity with an undrawn $1.5 billion credit facility after repaying matured notes - Total long-term debt stood at **$3,168.6 million** as of March 31, 2024[42](index=42&type=chunk) - The **$250.0 million 4.200% Senior Notes** due in 2024 matured on April 15, 2024, and were repaid using cash on hand[43](index=43&type=chunk) - The company has a **$1.5 billion revolving credit facility** maturing in November 2026, with no borrowings outstanding as of March 31, 2024, and availability of **$1,490.5 million**[46](index=46&type=chunk) [Note 10: Segment Information](index=20&type=section&id=Note%2010%3A%20Segment%20Information) The IA&C and MD&E segments drove EBITA growth, with IA&C being the largest contributor, while increased corporate expenses led to a slight decline in total Segment EBITA Segment EBITA (Q1 2024 vs Q1 2023) | Segment | Q1 2024 ($M) | Q1 2023 ($M) | Change | | :--- | :--- | :--- | :--- | | MD&E | 93.2 | 79.8 | +16.8% | | IA&C | 107.9 | 98.1 | +10.0% | | SC&E | 43.9 | 45.2 | -2.9% | | Corporate and Other | (40.1) | (13.9) | -188.5% | | **Total** | **204.9** | **209.2** | **-2.1%** | - The company operates across three reportable segments: Media, Data & Engagement Solutions (MD&E), Integrated Advertising & Creativity Led Solutions (IA&C), and Specialized Communications & Experiential Solutions (SC&E)[88](index=88&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Organic revenue grew 1.3% in Q1 2024, driven by domestic client wins, though adjusted EBITA margin slightly decreased amidst a mixed macroeconomic environment - Organic increase of revenue before billable expenses was **1.3% in Q1 2024**, compared to a decrease of (0.2)% in Q1 2023[132](index=132&type=chunk) - Adjusted EBITA margin on revenue before billable expenses **decreased to 9.4%** from 9.6% in the prior-year period[133](index=133&type=chunk) - The macroeconomic backdrop is characterized by global crosscurrents, with improved market tenor from H2 2023 but continued uncertainty coloring the market for IPG and its clients[121](index=121&type=chunk) [Results of Operations](index=30&type=section&id=Results%20of%20Operations) Organic revenue growth was led by a 2.1% domestic increase, particularly in Continental Europe, while cost controls helped reduce the ratio of salaries to revenue Organic Change in Revenue Before Billable Expenses by Geography (Q1 2024) | Region | Organic Change | | :--- | :--- | | Domestic | +2.1% | | International | -0.5% | | - United Kingdom | +0.2% | | - Continental Europe | +8.9% | | - Asia Pacific | -8.1% | | - Latin America | +3.0% | | - Other | -6.5% | | **Consolidated** | **+1.3%** | - Salaries and related expenses as a percentage of revenue before billable expenses **decreased to 72.1%** in Q1 2024 from 72.5% in Q1 2023, driven by lower base salaries, benefits, and tax[138](index=138&type=chunk) - Office and other direct expenses **decreased by 2.5% YoY**, driven by lower client service costs, meetings, and professional fees[140](index=140&type=chunk) [Segment Results of Operations](index=32&type=section&id=Segment%20Results%20of%20Operations) The IA&C segment led organic growth at 3.2%, while the MD&E segment significantly improved its EBITA margin to 9.7% through effective cost management Segment Performance Summary (Q1 2024) | Segment | Organic Revenue Change | Segment EBITA Margin | Key Drivers | | :--- | :--- | :--- | :--- | | MD&E | -0.5% | 9.7% | Decreased operating expenses outpaced revenue decline | | IA&C | +3.2% | 12.2% | Revenue growth exceeded expense increase | | SC&E | +1.5% | 12.9% | Increased operating expenses, particularly salaries | [Liquidity and Capital Resources](index=35&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains a strong liquidity position, significantly improving operating cash flow through better working capital management while continuing shareholder returns - Net cash used in operating activities was **$157.4 million**, a significant improvement from a use of $547.6 million in Q1 2023, primarily due to a smaller use of cash for working capital[166](index=166&type=chunk)[172](index=172&type=chunk) - Key financing activities in Q1 2024 included **$126.6 million for common stock dividends** and **$62.4 million for share repurchases**[174](index=174&type=chunk) - The company's 4.200% senior notes (**$250.0 million**) matured on April 15, 2024, and were repaid with cash on hand[178](index=178&type=chunk) - As of March 31, 2024, the company had **$337.7 million remaining** under its share repurchase authorizations[181](index=181&type=chunk)[63](index=63&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=42&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's market risk exposure remained unchanged in Q1 2024, with interest rate risk mitigated by having 99% of its debt at fixed rates - There has been **no significant change** in the company's exposure to market risk during the first quarter of 2024[203](index=203&type=chunk) - As of March 31, 2024, approximately **99% of the company's debt obligations bore fixed interest rates**, mitigating exposure to interest rate fluctuations[203](index=203&type=chunk) [Item 4. Controls and Procedures](index=42&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of quarter-end, with no material changes to internal controls over financial reporting - The CEO and CFO concluded that as of March 31, 2024, the company's disclosure controls and procedures were **effective**[204](index=204&type=chunk) - **No changes** in internal control over financial reporting occurred in Q1 2024 that materially affected or are likely to materially affect the controls[206](index=206&type=chunk) [PART II. OTHER INFORMATION](index=43&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=43&type=section&id=Item%201.%20Legal%20Proceedings) Ongoing legal proceedings from normal business operations are not expected to have a material adverse effect on the company's financial condition or results - The company is involved in various legal proceedings from the normal course of business, but management believes the outcomes will **not have a material adverse effect** on its financials[110](index=110&type=chunk)[209](index=209&type=chunk) [Item 1A. Risk Factors](index=43&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors disclosed in the 2023 Annual Report on Form 10-K occurred during the first quarter of 2024 - **No material changes** to the risk factors disclosed in the 2023 Annual Report on Form 10-K occurred in the first quarter of 2024[210](index=210&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=43&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased 2.34 million shares of common stock for an average price of $32.39 per share during the first quarter of 2024 Share Repurchases in Q1 2024 | Period | Total Shares Purchased | Average Price Paid per Share | Shares Purchased Under Program | | :--- | :--- | :--- | :--- | | Jan 1 - 31 | 186,271 | $32.79 | 175,000 | | Feb 1 - 29 | 622,888 | $32.38 | 225,000 | | Mar 1 - 31 | 1,529,593 | $32.35 | 1,527,000 | | **Total Q1** | **2,338,752** | **$32.39** | **1,927,000** |

Wall Street analysts forecast that Interpublic Group (IPG) will report quarterly earnings of $0.36 per share in its upcoming release, pointing to a year-over-year decline of 5.3%. It is anticipated that revenues will amount to $2.17 billion, exhibiting a decline of 0.1% compared to the year-ago quarter.The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this tim ...

Core Viewpoint - The Interpublic Group of Companies, Inc. (IPG) is expected to report its first-quarter 2024 results on April 24, with a history of earnings surprises, having exceeded the Zacks Consensus Estimate in three of the last four quarters, averaging a surprise of 10.2% [1] Q1 Expectations - The Zacks Consensus Estimate for IPG's revenue is $2.2 billion, indicating a slight decline from the previous year's figure, attributed to declines in digital specialist agencies and client losses in the telecom sector at McCann [2] - Revenue estimates for Specialized Communications & Experiential Solutions (SC&E) are $573.4 million, showing a slight decline from the previous year [3] - Integrated Advertising & Creativity Led Solutions (IA&C) revenues are estimated at $928.7 million, reflecting a 3.7% decrease from the year-ago quarter [3] - Media, Data & Engagement Solutions (MD&E) revenues are projected at $1 billion, suggesting a 3.1% increase from the first quarter of 2023, driven by growth at IPG Mediabrands [3] EBITA Estimates - EBITA for MD&E, SC&E, and IA&C segments is expected to increase by 65.5%, 8.5%, and less than 1% to $130.9 million, $49 million, and $98.5 million, respectively [3] - For Corporate and Other, EBITA is anticipated to rise 5.7% to negative $13.1 million [3] Earnings Per Share - The consensus estimate for earnings per share is 36 cents, indicating a 5.3% decline from the previous year's figure, primarily due to revenue dips in SC&E and IA&C segments [4] Earnings Prediction Model - The current model does not predict an earnings beat for IPG, with an Earnings ESP of 0.00% and a Zacks Rank of 4 (Sell), indicating lower odds of exceeding earnings expectations [5] Stocks to Consider - Other companies in the Business Services sector with favorable earnings predictions include Automatic Data Processing (ADP) and Envestnet (ENV), both showing positive growth estimates and past earnings surprises [6][7]

New York, NY, April 08, 2024 (GLOBE NEWSWIRE) -- Interpublic Group (NYSE:IPG) today announced that it will release earnings for the first quarter ended March 31, 2024 on the morning of April 24, 2024. Following the release, the company will hold a conference call for investors at 8:30 a.m. Eastern Time on the same day to review results. To join the conference call, please call (800) 593-9891. Outside the United States, please call (517) 308-9356. The participant passcode is 6123844. The call will be availab ...

TEL AVIV, Israel, April 8, 2024 /PRNewswire/ -- Savage Ventures, the leading investors, acquirers, and operators of high-growth digital-first businesses, signed a two-year exclusive contract with Primis for American Songwriter. Primis, the leading video discovery platform for publishers and founder of Sellers.guide, is excited to continue its partnership with Savage Ventures under this new agreement. American Songwriter, an esteemed songwriting and music publication established in 1984, has been enriching t ...