Ben Allanson Good morning from Stagwell's offices in Florida. Welcome to Stagwell Inc.'s Fourth Quarter and Full Year 2024 Earnings Webcast. My name is Ben Allanson and I lead the Investor Relations function here at Stagwell. With me today are Mark Penn, Stagwell's Chairman and Chief Executive Officer; and Frank Lanuto, the Chief Financial Officer. Mark will provide a business update and Frank will share our financial review. After the prepared remarks, we will open the floor for Q&A. You are welcome to sub ...

Fourth Quarter and Full Year 2024 EARNINGS PRESENTATION February 27 | 2025 FORWARD LOOKING STATEMENTS & OTHER INFORMATION This document contains forward-looking statements. within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). The Company's representatives may also make forward-looking statements orally or in writing from time to time. Statements in this document that are no ...

Financial Performance - Q4 revenue reached $789 million, a 20% increase year-over-year; full year revenue totaled $2.8 billion, up 12% from the previous year[6] - Q4 net income attributable to common shareholders was $3 million, compared to $1 million in the prior year; full year net income was $2 million, up from $0.1 million[6] - Adjusted EBITDA for Q4 was $123 million, a 30% increase year-over-year, with an adjusted EBITDA margin of 20%[6] - Organic net revenue growth for Q4 was 10%, while full year organic net revenue increased by 5%[6] - The company reported net new business of $102 million in Q4, with a last twelve-month (LTM) net new business total of $382 million[6] - Revenue for the three months ended December 31, 2024, was $788.7 million, a 20.4% increase from $654.9 million in the same period of 2023[31] - Operating income for the three months ended December 31, 2024, was $43.5 million, compared to $19.3 million in the same period of 2023, representing a 125.5% increase[31] - Net income attributable to Stagwell Inc. common shareholders for the three months ended December 31, 2024, was $3.2 million, up from $1.3 million in the same period of 2023[31] - For the year ended December 31, 2024, total revenue reached $2.84 billion, an increase of 12.4% from $2.53 billion in 2023[31] - Adjusted EBITDA for the year ended December 31, 2024, was $410.8 million, compared to $279.0 million in 2023, reflecting a 47.2% increase[41] - Total net revenue for the year ended December 31, 2023, was $2,152,454,000, representing a significant increase compared to the previous year[50] - Adjusted EBITDA for the year was $360,139,000, reflecting a strong operational performance across segments[50] - Operating income for the year was $90,527,000, indicating a positive trend in profitability despite challenges in certain areas[50] - For the three months ended December 31, 2023, net revenue reached $551,066,000, showcasing robust quarterly performance[46] Future Guidance - Guidance for 2025 includes total net revenue growth of approximately 8% and adjusted EBITDA between $410 million and $460 million[12] - Free cash flow conversion is expected to exceed 45% in 2025[12] - Adjusted EPS for 2025 is projected to be between $0.75 and $0.88[12] Segment Performance - The Integrated Agencies segment reported net revenue of $334.4 million for the three months ended December 31, 2024, a 9.1% increase from the previous year[34] - The Communications Network segment saw a significant increase in net revenue, reaching $107.7 million, a 34.7% increase year-over-year[34] Shareholder Information - The company reported a basic earnings per share of $0.03 for the three months ended December 31, 2024, compared to $0.01 in the same period of 2023[31] - The company reported a diluted EPS of $0.24 for the three months ended December 31, 2024, after adjustments[55] - The company experienced a net income attributable to common shareholders of $25,461,000 for the three months ended December 31, 2024, after adjustments[55] Expenses and Costs - Total operating expenses for the year ended December 31, 2024, were $2.71 billion, up from $2.44 billion in 2023, marking a 11.1% increase[31] - Staff costs for the year totaled $1,389,168,000, highlighting the company's investment in human resources[50] - Administrative costs for the year were $259,780,000, reflecting the company's operational expenditures[50] - Billable costs for the year amounted to $374,723,000, indicating the costs associated with revenue-generating activities[50] - The company incurred stock-based compensation expenses of $57,179,000 for the year[65] Cash Flow and Assets - The company experienced a net cash provided by operating activities of $142,859,000 for the year, compared to $81,007,000 in the previous year[70] - Cash and cash equivalents at the end of the period were $131,339,000, up from $119,737,000[70] - Total assets as of December 31, 2023, amounted to $3,908,221,000, an increase from $3,767,047,000 in the previous year[68] - The total current assets increased to $1,135,148,000 from $1,025,066,000 year-over-year[68] Liabilities and Debt - Stagwell Inc. reported total liabilities of $3,122,904,000 as of December 31, 2023, compared to $2,930,983,000 in the prior year[68] - The company had a long-term debt of $1,353,624,000 as of December 31, 2023, compared to $1,145,828,000 in the previous year[68] Management and Strategy - Stagwell plans to host an Investor Day on April 2, 2025, to discuss future strategies and performance[3] - The company made changes to its internal management and reporting structure in Q1 2024, affecting its reportable segments[46] - The weighted average number of shares outstanding increased to 280,770, resulting in an adjusted diluted EPS of $0.57 for the year[65] - The company reported a gain on the sale of business of $94,505,000, which was included in the adjustments to net income[65]

Core Insights - Stagwell Inc. reported a Q4 revenue of $789 million, reflecting a 20% year-over-year growth, and a full-year revenue of $2.8 billion, up 12% from the previous year [4][19] - The company achieved a Q4 net income of $3 million, compared to $1 million in the same period last year, and a full-year net income of $2 million, up from $0.1 million [4][19] - Adjusted EBITDA for Q4 was $123 million, representing a 30% increase year-over-year, with an adjusted EBITDA margin of 20% [4][5] - Stagwell introduced guidance for 2025, projecting total net revenue growth of approximately 8%, adjusted EBITDA between $410 million and $460 million, and free cash flow conversion exceeding 45% [10][6] Financial Performance - Q4 net revenue reached $630 million, a 14% increase year-over-year, while full-year net revenue was $2.3 billion, up 7% [4][19] - Organic net revenue growth for Q4 was 10%, with a full-year organic net revenue increase of 5% [4][19] - The company reported a Q4 adjusted EPS of $0.24, compared to $0.12 in the prior year, and a full-year adjusted EPS of $0.77, up from $0.57 [4][19] Business Development - Stagwell achieved net new business of $102 million in Q4, with a last twelve-month (LTM) net new business total of $382 million [4][19] - The company has experienced eight consecutive quarters of record LTM net new business [4] Strategic Outlook - Mark Penn, Chairman and CEO, emphasized that 2024 was a breakthrough year for Stagwell, highlighting rapid growth in digital transformation and strategic investments to enhance capabilities and geographical reach [4][5] - The company plans to host an Investor Day on April 2, 2025, to discuss future strategies and performance [6]

Core Insights - Assembly, a global media agency within the Stagwell network, has appointed Matt Adams as Global Chief Operating Officer and Clare Chapman as Europe CEO, effective immediately [1][2][4]. Group 1: Leadership Changes - Matt Adams has been promoted to Global COO after serving as CEO of Assembly Europe since 2023, where he led significant growth and expanded operations into Poland [2][3]. - Clare Chapman, previously Chief of Staff for Europe, has been appointed as Europe CEO, focusing on accelerating growth and enhancing client partnerships [5][6]. Group 2: Achievements and Responsibilities - Under Adams' leadership, Assembly Europe secured major clients like Estée Lauder Companies and achieved B Corp certification, highlighting the agency's commitment to social and environmental responsibility [2][3]. - As Global COO, Adams will oversee commercial leadership, global media partnerships, and the Global Delivery offering, which includes over 1,000 experts across multiple countries [3][4]. - Chapman will manage various functions including product, client services, and marketing, aiming to create strategic solutions for brands in Europe [5][6]. Group 3: Vision and Future Goals - Adams expressed enthusiasm for enhancing operational excellence and fostering innovation within Assembly [4]. - Chapman is committed to building on Assembly's momentum in Europe and driving impactful results for clients [7].

DEMOCRATIC PARTY APPROVAL HITS A RECORD LOW AT 36%, NOW 15 POINTS LOWER THAN THE GOP 72% OF VOTERS SUPPORT THE EXISTENCE OF A U.S. GOVERNMENT AGENCY FOCUSED ON EFFICIENCY INITIATIVES VOTERS WANT UKRAINE TO NEGOTIATE A SETTLEMENT WITH RUSSIA, BUT MOST ARE OPPOSED TO TERRITORIAL CONCESSIONS AND WANT THE U.S. TO GIVE SECURITY GUARANTEES NEW YORK and CAMBRIDGE, Mass., Feb. 24, 2025 /PRNewswire/ -- Stagwell (NASDAQ: STGW) today released the results of the February Harvard CAPS / Harris poll, a monthly collaborat ...

Core Insights - Stagwell Inc. is actively participating in two investor conferences in February and March 2025, indicating its commitment to engaging with investors and enhancing its market presence [1][5]. Company Overview - Stagwell is described as a challenger holding company focused on transforming marketing by delivering scaled creative performance for ambitious brands, integrating creativity with advanced technology [3]. Upcoming Events - The company will participate in the J.P. Morgan 2025 Global Leveraged Finance Conference on February 24, where management will engage in one-on-one meetings in Miami Beach [5]. - On March 3, Stagwell management will take part in a fireside chat at the Morgan Stanley Technology, Media & Telecom Conference, scheduled from 4:50 PM to 5:25 PM PST, and will also be available for one-on-one investor meetings in San Francisco [5].

Core Insights - Stagwell's agencies aired four notable commercials during Super Bowl LIX, achieving three spots in the top 10 highest-rated commercials on the USA TODAY Ad Meter, highlighting their creative and strategic impact in sports marketing [2][3] Advertising Highlights - The Super Bowl has become a significant cultural event where sports and marketing intersect, with Stagwell's agencies recognized for their creativity and cultural relevance [3] - Key advertisements included: - NFL "Somebody | It Takes All of Us" by 72andSunny, featuring NFL players mentoring children, ranked in the top three by The New York Times [6] - NFL "Flag 50," a nostalgic ad promoting varsity flag football, received 4.5 stars from Ad Age [6] - Bud Light's "Big Men on Cul-de-Sac," featuring Post Malone and Peyton Manning, ranked in the top three by Bleacher Report [6] - Starbucks' "Hello Again," promoting a personal touch initiative, featured AC/DC's "Thunderstruck" [6] - Perdue Chicken's "Wing It," with comedian Wayne Brady, encouraged viewers to rethink Super Bowl rituals [6] - Frank's RedHot's ad with Paris Hilton invited fans to showcase their recipes [6] Off-Field Campaigns - Stagwell agencies executed high-impact off-field campaigns for various clients, securing hundreds of media placements and millions of impressions [6] - Notable activations included: - Dexcom's diabetes management campaign featuring Mike Golic Sr. [6] - Good Sports promoting youth sports accessibility with Kyle Rudolph [6] - GNC's branded Lyft cars and smoothie hut [6] - Special Olympics' initiatives discussed by Broncos LB Alex Singleton [6] Collaborative Efforts - Anomaly collaborated with Don Julio and Popeyes for a limited-edition Championship Lineup menu [10] - Code and Theory enhanced the NFL app for a better fan experience [10] - HUNTER supported media relations for various brands, including TurboTax and STōK Cold Brew Coffee [10]

Group 1 - Stagwell (NASDAQ: STGW) will report its financial results for the three and twelve months ended December 31, 2024, on February 27, 2025, before market open [1] - A video webcast will be hosted by Stagwell to review the financial results on the same day at 8:30 AM (ET) [1] - A replay of the webcast will be available on Stagwell's website following the event [1] Group 2 - Stagwell is a challenger holding company focused on transforming marketing by delivering scaled creative performance for ambitious brands [2] - The company connects culture-moving creativity with leading-edge technology to harmonize the art and science of marketing [2] - Stagwell operates in over 40 countries, unifying specialists under a single purpose to drive effectiveness and improve business results for clients [2]

Core Viewpoint - Assembly, a global media agency, has achieved B Corp Certification in Europe, highlighting its commitment to balancing purpose, profit, and performance, and marking a significant step in its transformation agenda [1][4]. Certification - B Lab, the organization behind the B Corp movement, evaluates companies on their impact in governance, community engagement, and environmental stewardship, with Assembly excelling in employee wellbeing and engagement metrics [2]. Company Initiatives - Assembly is focused on sustainable innovation and ethical practices, with recent initiatives including the development of Clean Media Lab for media decarbonization, the launch of Partners for Progress to support diverse-owned businesses, and alignment with the UN's Sustainable Development Goals [5][6]. Future Commitment - The agency plans to enhance sustainability initiatives, engage in community-driven campaigns, and invest further in employee development, viewing B Corp Certification as a journey rather than a destination [6][7]. Company Overview - Assembly operates in 26 offices globally, with a team of over 400 experts in various fields, and is recognized as a Google Premier Partner of the Year 2023, emphasizing its role as a strategic partner for top brands [9].