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Stagwell (STGW) - 2025 Q1 - Earnings Call Transcript
2025-05-08 13:30
Financial Data and Key Metrics Changes - Stagwell reported net revenue of $564 million for Q1 2025, an increase of 6% over the prior period, with a 9% growth excluding advocacy [23][24] - Adjusted EBITDA for the quarter was $81 million, with a margin of 14.3%, an improvement of approximately 50 basis points over the same period in 2023 [29] - The company achieved a net revenue ratio of 65.3%, an improvement of 175 basis points compared to the same period in 2023 [6] Business Line Data and Key Metrics Changes - Digital transformation net revenue grew 8% to $106 million, with a 15% growth excluding advocacy [24] - Stagwell Marketing Cloud posted $63 million in net revenue, a 32% year-over-year increase, and 45% growth excluding advocacy [24] - Creativity and communications generated $242 million in net revenue, a 7% increase, with a 10% growth excluding advocacy [25] - Performance Media and Data reported $104 million in net revenue, a decline of 10% compared to the prior period [27] Market Data and Key Metrics Changes - Technology clients increased their spending by 18%, while retail clients saw a 52% increase in spending [10] - The Middle East market experienced over 250% year-over-year net revenue growth in Q1 [13] - The company noted a significant increase in revenue from technology clients, driven by expansions at Apple and Google [24] Company Strategy and Development Direction - Stagwell aims to grow, scale, and innovate, focusing on digital transformation and creative capabilities [4][5] - The company is actively pursuing M&A opportunities to expand internationally and strengthen its capabilities [11] - Stagwell is investing in AI and technology solutions to enhance its service offerings and operational efficiency [17][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory, reiterating guidance for 2025 with expected total net revenue growth of approximately 8% [32] - The impact of tariffs on business has been minimal, with management emphasizing that the company is not directly affected by tariff-related issues [49][50] - Management anticipates that new business wins will start reflecting in revenue growth in the second half of the year [44] Other Important Information - The company completed the refinancing of its revolving credit facility, increasing capacity to $750 million [31] - Stagwell's recent acquisitions, including Jet Fuel and Unicepta, are expected to enhance its capabilities in experiential marketing and analytics [12] Q&A Session Summary Question: Can you provide more color on why you're winning more despite a cautious macro environment? - Management noted that the AI era is driving increased assignments to remake consumer experiences, and Stagwell's creative capabilities are being recognized as top-tier amidst industry reorganizations [36][38] Question: Are you getting new clients due to consolidation among larger players? - Management indicated that Stagwell is well-positioned to meet client needs as larger holding companies struggle with their offerings, allowing Stagwell to capture new business [41][42] Question: When will new wins start to be reflected in net revenue growth? - Management expects to see the impact of new wins in the second half of the year, as the first quarter reflects wins from the previous half-year [44] Question: Can you provide details on the turnaround for Performance Media and Data in Q2? - Management explained that a reduction in spend from a single client affected Q1 results, but expects a rebound in Q2 as new clients come on board [46] Question: Have you seen changes in client behavior amid macro uncertainty? - Management reported minimal direct impacts from tariffs and emphasized that the company is not on the front lines of tariff issues, maintaining confidence in their full-year guidance [49][50]
Stagwell (STGW) - 2025 Q1 - Quarterly Results
2025-05-08 11:33
` FOR IMMEDIATE ISSUE STAGWELL INC. (NASDAQ: STGW) REPORTS RESULTS FOR THE THREE MONTHS ENDED MARCH 31, 2025 Q1 YoY Revenue Decline of 3%, Q1 YoY Net Revenue Growth of 6% Q1 YoY Net Revenue Growth excluding Advocacy of 9%, Digital Transformation Net Revenue ex. Advocacy Growth of 15% Q1 Net Loss Attributable to Stagwell Inc. Common Shareholders of $3 million; Q1 Adjusted EBITDA of $81 million; Adjusted EBITDA Margin of 14% Q1 EPS of $(0.04); Adjusted EPS of $0.12 Net New Business of $130 million in Q1; LTM ...
STAGWELL INC. (NASDAQ: STGW) REPORTS RESULTS FOR THE THREE MONTHS ENDED MARCH 31, 2025
Prnewswire· 2025-05-08 11:15
Q1 YoY Revenue Decline of 3%, Q1 YoY Net Revenue Growth of 6%Q1 YoY Net Revenue Growth excluding Advocacy of 9%, Digital Transformation Net Revenue ex. Advocacy Growth of 15%Q1 Net Loss Attributable to Stagwell Inc. Common Shareholders of $3 million; Q1 Adjusted EBITDA of $81 million; Adjusted EBITDA Margin of 14%Q1 EPS of $(0.04); Adjusted EPS of $0.12Net New Business of $130 million in Q1; LTM Net New Business of $446 millionReiterate Guidance for 2025 of Total Net Revenue Growth of ~8%; Adjusted EBITDA o ...
Despite Progress, Emotional Isolation, Stigma Persist Around Mental Health, Poll Finds
Prnewswire· 2025-05-07 13:09
Core Insights - Public attitudes toward mental health are improving, but stigma and barriers to care remain significant challenges across the U.S. [1][7] Group 1: Public Perception and Stigma - 88% of U.S. adults believe having a mental health disorder is not something to be ashamed of, yet 84% think the term "mental illness" carries a stigma [2] - More than one-third (35%) of adults would view someone differently if they learned they had a mental health condition, with higher percentages among younger adults [2] - 81% of U.S. adults feel comfortable discussing mental health with friends, indicating a willingness to engage in conversations [3] Group 2: Young Adults' Attitudes - Young adults aged 18-34 are more likely to feel negative about their mental health, with only 41% feeling positive compared to 61% of those aged 55 and older [4] - Over one-third (34%) of young adults cite not having someone to confide in as a barrier to discussing mental health openly [4] - 52% of young adults would feel comfortable discussing mental health with an AI chatbot, compared to 26% of older adults, suggesting a preference for anonymity [5] Group 3: Barriers to Care - Cost (29%) and finding a compatible provider (36%) are cited as top barriers to seeking effective mental health treatment [6] - Only 28% of U.S. adults feel their mental health is better today than a year ago, indicating ongoing challenges [6] - The survey highlights the need for continued efforts to address emotional and financial barriers to mental health support [7]
Stagwell (STGW) Acquires Experiential Marketing and Creative Agency JetFuel
Prnewswire· 2025-05-06 11:01
NEW YORK, May 6, 2025 /PRNewswire/ -- Stagwell (NASDAQ: STGW), the challenger network built to transform marketing, today announced the acquisition of JetFuel, an experiential marketing services agency that accelerates brand awareness through experiences, content and conversations. JetFuel will become a subsidiary of Stagwell's integrated experiential agency TEAM. Stagwell has announced the acquisition of JetFuel, an experiential marketing services agency that accelerates brand awareness through experie ...
Wall Street Analysts Believe Stagwell (STGW) Could Rally 58.01%: Here's is How to Trade
ZACKS· 2025-05-05 15:01
Stagwell (STGW) closed the last trading session at $5.62, gaining 5.4% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $8.88 indicates a 58% upside potential.The average comprises eight short-term price targets ranging from a low of $7.25 to a high of $10, with a standard deviation of $1.10. While the lowest estimate indicates an increase of 29% from the current price level, the mo ...
Here is Why Growth Investors Should Buy Stagwell (STGW) Now
ZACKS· 2025-04-30 17:45
Investors seek growth stocks to capitalize on above-average growth in financials that help these securities grab the market's attention and produce exceptional returns. However, it isn't easy to find a great growth stock.In addition to volatility, these stocks carry above-average risk by their very nature. Also, one could end up losing from a stock whose growth story is actually over or nearing its end.However, the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the trad ...
Stagwell (STGW) Moves to Buy: Rationale Behind the Upgrade
ZACKS· 2025-04-30 17:00
Core Viewpoint - Stagwell (STGW) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which are closely correlated with stock price movements, particularly due to institutional investors adjusting their valuations based on these estimates [4][6]. - For Stagwell, the increase in earnings estimates and the rating upgrade suggest an improvement in the company's underlying business, likely leading to a rise in stock price [5][10]. Earnings Estimate Revisions - Stagwell is projected to earn $0.86 per share for the fiscal year ending December 2025, reflecting a year-over-year increase of 11.7% [8]. - Over the past three months, the Zacks Consensus Estimate for Stagwell has risen by 3.6%, indicating a positive trend in analyst expectations [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with only the top 20% receiving a 'Strong Buy' or 'Buy' rating, highlighting their potential for superior returns [9][10]. - Stagwell's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting a favorable outlook for near-term stock performance [10].
Are Investors Undervaluing Stagwell Inc. (STGW) Right Now?
ZACKS· 2025-04-30 14:46
Core Viewpoint - Stagwell Inc. (STGW) is identified as a strong value stock with a Zacks Rank of 2 (Buy) and an "A" grade in the Value category, indicating it is likely undervalued in the current market [4][7]. Valuation Metrics - The P/E ratio of STGW is 6.21, significantly lower than the industry average of 8.52, suggesting a favorable valuation [4]. - STGW's P/B ratio stands at 1.92, compared to the industry's average P/B of 4.49, indicating solid valuation metrics [5]. - The P/CF ratio for STGW is 3.64, which is much lower than the industry average of 10.37, further supporting the notion of undervaluation [6]. Historical Performance - Over the past 52 weeks, STGW's Forward P/E has fluctuated between a high of 9.95 and a low of 5.41, with a median of 8.14 [4]. - The P/B ratio for STGW has ranged from a high of 2.87 to a low of 1.66, with a median of 2.33 over the past year [5]. - STGW's P/CF has varied from a high of 5.74 to a low of 3.15, with a median of 4.61 in the last 12 months [6].
Half of Americans Feel Financially Adrift Amid Economic Uncertainty
Prnewswire· 2025-04-29 16:00
Core Insights - The 2025 Financial Literacy and Preparedness Survey indicates that pervasive economic and governmental uncertainty is significantly affecting Americans' financial well-being, leading many to feel financially stagnant despite their efforts [1][2][3]. Financial Sentiment - Approximately 53% of U.S. adults feel that no matter how hard they try to improve their financial situation, setbacks always occur [2]. - About 48% of respondents feel they are merely treading water financially, with unexpected expenses posing a significant risk [2]. - One-third of participants (33%) report they are just getting by financially [2]. Economic Concerns - A notable 63% of Americans express concern that partisanship and volatility in the U.S. government will negatively impact their personal finances in the upcoming year [4]. - Additionally, 57% believe that current economic uncertainty makes it impossible to achieve long-term financial goals, and the same percentage finds it more challenging to manage or pay off debt due to this uncertainty [4]. Consumer Confidence - While 65% of respondents rate their ability to make sound personal finance decisions as an A or B, only 56% rate their actual financial state highly, indicating that external pressures are a significant barrier to financial progress [5]. Professional Assistance Gap - Only 5% of Americans experiencing financial problems related to debt would seek help from a professional nonprofit credit counseling agency, equating to approximately 13.1 million adults [6][11]. - The survey highlights the critical need for access to trusted financial guidance amid widespread financial strain and economic uncertainty [6]. Survey Methodology - The survey was conducted online by The Harris Poll from February 20 to March 17, 2025, involving 2,010 U.S. adults aged 18 and older, representative of the general population [8].