Core Insights - Palantir Technologies Inc. and Stagwell have launched a new AI marketing platform aimed at enhancing campaign performance and maximizing returns for global brands [1][6] - The platform integrates Palantir's Foundry engine with Stagwell's Marketing Cloud systems and Code and Theory's orchestration tools to create a central data hub for managing marketing campaigns [2][3] Group 1: Platform Features - The combined product allows corporate teams to manage campaigns, refine audience targeting, and analyze results more efficiently [3][4] - The platform will utilize differential privacy protections to secure client data [3] - It is designed to support large organizations with extensive datasets and complex digital marketing programs [4] Group 2: Expected Benefits - Executives anticipate that the software will enable teams to analyze millions of data points, segment audiences, and automate time-consuming marketing tasks [5] - The platform can be utilized as a standalone product, with potential applications in supply chain planning and regional network management [5] Group 3: Market Impact - Stagwell's CEO described the partnership as a breakthrough for digital marketing, predicting it could generate hundreds of millions in future revenue [6] - Palantir's CEO emphasized the platform's ability to enhance metrics collection speed and data integration capabilities, unlocking value for clients [6] Group 4: Additional Developments - Palantir has also entered into a deal with Valoriza to use its AIP software and Foundry platform for waste collection route analysis and infrastructure tracking in Spain [7] - This collaboration aims to reduce emissions and improve decision-making for local governments [7]

Core Insights - Palantir and Stagwell Inc. have formed a partnership to develop an AI-powered marketing platform that integrates Palantir's Foundry with Stagwell's proprietary data solutions [1][2] - The platform aims to create a flexible AI-based model that combines first-party and third-party data to enhance marketing strategies [4] - The new AI-driven platform is designed to enable large teams to implement marketing programs at scale while ensuring user data protection through differential privacy technology [7] Company Developments - Mark Penn, CEO of Stagwell, emphasized the platform's capability to allow marketers to operate the system independently, using natural language queries to identify target audiences [8] - Kevin Kawasaki from Palantir highlighted advancements in AI models that reduce the need for human coding, enabling faster execution of ideas by domain experts [9][10] - Stagwell has initiated a soft launch of the platform, focusing initially on retail clients, with plans for broader rollout in the coming months [14] Industry Trends - The partnership reflects a growing trend in the marketing industry towards AI-driven solutions that enhance operational efficiency and effectiveness [5][11] - The ability to deliver customized products rapidly based on AI capabilities marks a significant shift from traditional software development timelines [13][14]

Financial Performance - Total revenue for Q3 2025 was $743.0 million, an increase of $31.7 million or 4.5% compared to Q3 2024 revenue of $711.3 million[169]. - Operating income for Q3 2025 was $60.9 million, up $19.1 million or 45.8% from $41.8 million in Q3 2024, driven by a $34.3 million increase in net revenue[172]. - Net revenue for Q3 2025 was $614.5 million, reflecting a 5.9% increase from $580.2 million in Q3 2024[170]. - Revenue for the three months ended September 30, 2025 was $297.2 million, an increase of $29.5 million or 11.0% compared to $267.7 million for the same period in 2024[188]. - Operating Income for the three months ended September 30, 2025 was $37.5 million, representing an increase of $16.5 million or 78.6% from $21.0 million in the same period of 2024[190]. - Revenue for the nine months ended September 30, 2025 was $2,101.6 million, an increase of $49.0 million or 2.4% compared to $2,052.5 million for the same period in 2024[218]. - Operating income for the nine months ended September 30, 2025 was $102.4 million, an increase of $12.8 million or 14.3% compared to $89.5 million for the same period in 2024[217]. - The Company reported a net income attributable to common shareholders of $16.4 million for the nine months ended September 30, 2025, compared to a net loss of $1.0 million in 2024[231]. Segment Performance - The Marketing Services segment saw a revenue increase of $20.7 million, or 9.2%, from $225.4 million in Q3 2024 to $246.1 million in Q3 2025[170]. - Digital Transformation revenue increased by $10.1 million, or 11.9%, from $85.3 million in Q3 2024 to $95.4 million in Q3 2025[170]. - Communications segment revenue decreased by $16.1 million, or 14.3%, from $112.6 million in Q3 2024 to $96.5 million in Q3 2025[170]. - Revenue in the Media & Commerce segment for the three months ended September 30, 2025, was $174.7 million, an increase of $15.1 million or 9.5% compared to the same period in 2024[198]. - Revenue for the Communications segment was $420.2 million, down $53.7 million or 11.3% from $474.0 million in 2024[254]. Adjusted Metrics - Adjusted EBITDA for Q3 2025 was $114.6 million, a 3.1% increase from $111.2 million in Q3 2024[168]. - Adjusted EBITDA for the three months ended September 30, 2025 was $114.6 million, an increase of $3.4 million or 3.1% compared to $111.2 million for the same period in 2024[186]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $288.0 million, a slight increase of $0.4 million compared to $287.6 million in 2024[234]. Costs and Expenses - Cost of services increased by $13.9 million, with staff costs rising due to the inclusion of costs from acquired entities[173]. - Office and general expenses decreased by $10.0 million, primarily due to a reduction in deferred acquisition consideration expense[174]. - Staff costs for the three months ended September 30, 2025 increased by $3.2 million, primarily due to higher insurance claims[216]. - Cost of services increased by $62.6 million, primarily due to expenses from acquired entities, despite a decline in billable costs of $60.8 million[222]. Cash Flow and Debt - Net cash provided by operating activities was $30.7 million, an increase of $99.9 million or 144.4% compared to the same period in the prior year[269]. - The Company had cash and cash equivalents of $132.2 million as of September 30, 2025, compared to $131.3 million as of December 31, 2024[268]. - As of September 30, 2025, the Company's total debt was $1,526.3 million, an increase from $1,353.6 million as of December 31, 2024, reflecting a growth of approximately 12.8%[280]. - The Company maintained a Total Leverage Ratio of 3.45 as of September 30, 2025, which is below the maximum permitted ratio of 4.25 under the Credit Agreement[284]. Strategic Focus - Stagwell's strategy focuses on building, growing, and acquiring market-leading businesses to deliver modern marketing services[148]. - The Company emphasizes the importance of retaining and attracting key employees and adapting to clients' changing needs in marketing communication[151]. - The Company monitors key financial indicators including revenue, operating expenses, net income, and non-GAAP measures like Adjusted EBITDA and Adjusted Diluted EPS[149]. Market Risks - The Company is exposed to market risks related to interest rates, foreign currencies, and impairment risk, which could affect its financial performance[293]. - The Company has contractual commitments with media providers and other third parties that may exceed revenue from services, which could expose it to risks in case of client defaults[286].

Financial Data and Key Metrics Changes - The overall revenue for the quarter was $743 million, with net revenue of $615 million, reflecting year-over-year increases of 12% and 10% respectively, excluding advocacy [3][15] - Adjusted earnings per share increased by 9% to $0.24, and year-to-date cash flow from operations rose by $100 million [4][16] - Ex-advocacy EBITDA jumped 23% year-over-year to $103 million, with an ex-advocacy margin of 18%, the highest in two years [3][4] Business Line Data and Key Metrics Changes - Marketing services' total net revenue grew by 9%, while digital transformation increased by 12% [4] - The marketing cloud segment saw a significant net revenue growth of 138%, driven by a 57% organic growth in the Harris Insights suite [9][18] - Digital transformation delivered $95 million in net revenue, representing growth of 11.9% [17] Market Data and Key Metrics Changes - The U.S. market remained the largest, with net revenue rising 1.1% year-over-year, while international total net revenue grew by 25.9%, led by EMEA with a 39.6% increase [16] - Excluding advocacy, total growth in the U.S. was 5.9%, with organic growth at 5.2% [16] Company Strategy and Development Direction - The company is pivoting from M&A to technology development, focusing on AI as a key driver for growth [6][10] - A partnership with Palantir was announced to create an AI-based audience platform aimed at enhancing marketing ROI [7][8] - The company is expanding its owned media properties, particularly in the news and politics sector, to leverage increased viewership and engagement [11][35] Management's Comments on Operating Environment and Future Outlook - Management noted that the client base is undergoing transformation, with larger clients growing while smaller clients are turning over, which is expected to lead to higher and more consistent growth in the future [5] - The company anticipates a strong finish to the year, reiterating guidance of approximately 8% total net revenue growth and $410 million-$460 million in adjusted EBITDA [12][24] - Management expressed confidence in the strength of core services and the potential for significant revenue from the new partnership with Palantir by the end of 2026 [13][32] Other Important Information - The company has invested about $35 million in strengthening tech capabilities, including the marketing cloud and the Stagwell Content Supply Chain [10][22] - A cost savings initiative is on track to deliver $80-$100 million in annualized savings by the end of 2026 [20] Q&A Session Summary Question: Background of the Palantir partnership - The partnership arose from discussions on combining Palantir's AI capabilities with the company's marketing expertise, leading to the development of prototypes over five months [26][27] Question: Total Addressable Market (TAM) and infrastructure investments - The TAM is considered enormous, with installations potentially costing $5 million to $10 million, and the company is shifting acquisition funds to technology CapEx [29][31] Question: Timing of P&L impact from the partnership - Significant revenue from the partnership is expected by the end of 2026, with ongoing development of advanced versions of the product [32] Question: CapEx increase explanation - The uptick in CapEx is driven by investments in technology, including the Machine and the Stagwell Content Supply Chain [33] Question: Media business strategy - The company aims to enhance media capabilities through technology rather than scale, focusing on owned media in the news and politics sector [34][35] Question: Communication sector performance - The communication sector faced challenges due to reduced advocacy work and broader industry headwinds, but management expects improvement as advocacy work resumes [37] Question: Impact of government shutdown on opportunities - The government shutdown has not significantly impacted the company as it previously did not have government contracts, but management is positioned to capitalize on future opportunities [40] Question: Criteria for potential spin-off of the marketing cloud - A spin-off would depend on achieving sustainable revenue levels of at least $250 million to $300 million, with substantial growth in all product lines [42] Question: Current strategy and focus for the next 12-24 months - The company is focused on becoming a leader in AI technology for marketing, transitioning from an acquisition-focused strategy to one centered on technology development [46][47]

Third Quarter 2025 EARNINGS PRESENTATION November 6 | 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 not historical fac ...

Financial Performance - Q3 2025 revenue of $743 million, a 4% increase year-over-year; year-to-date revenue of $2,102 million, a 2% increase year-over-year[4] - Q3 net income attributable to Stagwell Inc. common shareholders of $25 million, compared to $3 million in the prior year period; year-to-date net income of $16 million, compared to a net loss of $1 million in the prior year[4] - Q3 adjusted EBITDA of $115 million, a 3% increase year-over-year; adjusted EBITDA margin of 19% on net revenue[8] - Q3 adjusted EPS of $0.24, a 9% year-over-year increase; year-to-date adjusted EPS remains at $0.53[8] - Operating income for the three months ended September 30, 2025, was $60.913 million, up 45.8% from $41.779 million in the prior year[24] - The company reported an adjusted EBITDA of $114.582 million for the three months ended September 30, 2025[31] - Adjusted EBITDA for the same period was $288,019,000, with a margin of approximately 16.2%[34] - The diluted earnings per share (EPS) for the same period was $0.04, while the adjusted diluted EPS was $0.53[45] Revenue Growth - Net new business of $122 million in Q3; last twelve-month net new business totaled $472 million[3] - Guidance for 2025 includes total net revenue growth of approximately 8% and adjusted EBITDA between $410 million and $460 million[9] - Digital transformation net revenue growth of 12% in Q3[2] - Strong organic growth in nearly all areas, with non-advocacy work showing double-digit growth[6] - Organic net revenue growth for the three months ended September 30, 2025, was 5.9%, with total net revenue reaching $614.522 million[26] - Marketing Services segment generated $246.094 million in net revenue for the three months ended September 30, 2025, reflecting a 6.5% increase[31] - Digital Transformation segment reported net revenue of $95.376 million, representing an 11.9% increase year-over-year[31] - Media & Commerce segment's net revenue was $154.157 million, a 5.9% increase compared to the previous year[31] - For the nine months ended September 30, 2025, total net revenue was $2.101556 billion, a 2.4% increase from $2.052508 billion in the same period of 2024[24] Cash Flow and Costs - Free cash flow conversion expected to exceed 45% in 2025[9] - Total staff costs for the nine months ended September 30, 2025, amounted to $1,136,742,000, reflecting a strategic investment in human resources[34] - The company incurred $222,775,000 in administrative costs during the nine months ended September 30, 2025[34] - Billable costs for the nine months ended September 30, 2025, totaled $324,718,000, indicating effective cost management[34] - The company reported $15,627,000 in stock-based compensation for the nine months ended September 30, 2025[34] - Stock-based compensation for the nine months ended September 30, 2025, was $44,143,000, compared to $38,926,000 in the same period of 2024[52] Assets and Liabilities - Total assets increased to $4,261,895,000 as of September 30, 2025, compared to $3,908,221,000 at the end of 2024, reflecting a growth of approximately 9%[50] - Cash and cash equivalents at the end of the period were $132,238,000, slightly up from $131,339,000 at the beginning of the period[52] - The company reported net cash provided by operating activities of $30,713,000 for the nine months ended September 30, 2025, compared to a net cash used of $69,230,000 in the same period of 2024[52] - Stagwell Inc. had total current liabilities of $1,376,240,000 as of September 30, 2025, which is relatively stable compared to $1,367,296,000 at the end of 2024[50] - The company’s long-term debt increased to $1,526,291,000 as of September 30, 2025, up from $1,353,624,000 at the end of 2024[50] Future Outlook - Future outlook includes continued focus on market expansion and new product development to drive revenue growth[34] - Announced a groundbreaking partnership with Palantir, enhancing Stagwell's leadership in AI for marketing[6]

Financial Performance - Q3 2025 revenue reached $743 million, a 4% increase year-over-year, while net revenue grew by 6% to $615 million [9] - Excluding advocacy, Q3 revenue was $686 million, reflecting a 12% increase, and net revenue was $578 million, up 10% year-over-year [9] - Net income attributable to Stagwell Inc. common shareholders was $25 million, compared to $3 million in the prior year [9] - Adjusted EBITDA for Q3 was $115 million, a 3% increase year-over-year, with an adjusted EBITDA margin of 19% [9][4] - Q3 earnings per share (EPS) was $0.09, while adjusted EPS was $0.24, up from $0.22 in the prior year [9][4] Business Growth and New Partnerships - Stagwell reported net new business of $122 million in Q3, with a last twelve-month (LTM) net new business total of $472 million [9] - The company announced a partnership with Palantir, emphasizing its leadership in applying AI for marketing [4][2] - Guidance for 2025 indicates total net revenue growth of approximately 8%, with adjusted EBITDA projected between $410 million and $460 million [2][10] Cash Flow and Operational Efficiency - Year-to-date cash flow from operations increased by $100 million compared to the prior year [9] - The company achieved a 19% adjusted EBITDA margin, driven by cost discipline and labor efficiency [4]

Core Insights - Palantir Technologies Inc. and Stagwell have formed a partnership to create an AI-driven marketing platform aimed at enhancing marketing ROI for corporate marketers [1][2][5] Company Overview - Palantir's Foundry will be integrated with Code and Theory's software and The Marketing Cloud's data solutions to develop advanced marketing tools [2] - Stagwell is a marketing holding company focused on transforming marketing through technology and creativity [6] Product Features - The new platform will serve as a central hub for marketing, enabling audience alignment optimization and campaign management [3] - It allows enterprises to analyze millions of records to better understand audiences and improve brand performance strategies [4] - The platform will be available as a standalone solution for companies to monitor and enhance their marketing efforts [4] Market Impact - The partnership is expected to generate significant revenue, potentially reaching hundreds of millions of dollars over the coming years [5]

Core Insights - Stagwell Inc. (NASDAQ:STGW) is identified as one of the best stocks under $5 with significant upside potential, with a Buy rating and a price target of $9 set by Rosenblatt Securities analyst Barton Crockett [1][2] Company Overview - Stagwell Inc. is a global marketing company that specializes in performance media and data, digital transformation, creativity and communications, and consumer insights and strategy [4] - The Brand Performance Network segment includes creative media consulting and business-to-business marketing capabilities, while the Communications Network focuses on strategic corporate communications, advocacy, public relations, investor relations, and online fundraising services [4] Product Launch - On October 21, Stagwell announced the public launch of Agent Cloud, a secure and unified platform designed to simplify access to leading AI tools and marketing assistants [2] - Agent Cloud provides agencies and brands with instant access to top multimodal LLMs and image/video tools, streamlining the process by eliminating the need for multiple subscriptions [3]

Core Insights - The Marketing Cloud has launched Agent Cloud, a unified platform that provides secure access to leading AI tools and marketing assistants, aimed at simplifying the marketing process for brands and agencies [2][3]. Group 1: Product Features and Benefits - Agent Cloud offers a single entry point to top multimodal AI models, including GPT-5 and Gemini 2.5 Pro, eliminating the need for multiple subscriptions and ensuring compliance with client data requirements [3][4]. - The platform allows marketers to build, deploy, and manage AI-powered workflows across various teams, facilitating the creation of custom AI assistants that can be shared organization-wide [4][6]. - Key benefits include enhanced productivity, streamlined workflows, and the ability to innovate confidently while maintaining data security, as none of the organization's data is used to train any LLMs [8][6]. Group 2: Market Reception and Future Outlook - Early users of Agent Cloud have reported significant improvements in AI adoption and productivity, with some stating it has been a game-changer for their operations [7][6]. - The Marketing Cloud aims to provide organizations with the foundation needed to compete in an increasingly AI-driven landscape as they head into 2026 [6][8]. - The launch coincides with The Marketing Cloud's presence at the ANA Masters of Marketing event, highlighting its commitment to innovation in marketing technology [7].