IPG(IPG) - 2024 Q3 - Quarterly Results

Revenue Performance - Total revenue including billable expenses was $2.63 billion in Q3 2024, compared to $2.68 billion in Q3 2023[1][3] - Revenue before billable expenses ("net revenue") was $2.24 billion in Q3 2024, a reported decrease of 2.9% from Q3 2023[1][3] - Total revenue for Q3 2024 decreased by 1.9% to $2,628.8 million compared to $2,678.5 million in Q3 2023[22] - Revenue before billable expenses for Q3 2024 was $2,242.7 million, a decrease from $2,309.0 million in Q3 2023[33] - Total revenue for the nine months ended September 30, 2024, decreased by 0.4% to $7,834.7 million compared to $7,866.0 million in the same period in 2023[24] - Revenue before billable expenses for the nine months ended September 30, 2024, was $6,752.7 million, down from $6,814.4 million in the same period in 2023[33] Profitability Metrics - Adjusted EBITA was $385.8 million in Q3 2024, with a margin of 17.2% on revenue before billable expenses[1][5] - Adjusted EBITA for Q3 2024 was $385.3 million, with an Adjusted EBITA margin of 17.2% on revenue before billable expenses[33] - Adjusted EBITA before restructuring charges for Q3 2024 was $385.8 million, slightly higher than $397.2 million in Q3 2023[33] - Adjusted EBITA for the nine months ended September 30, 2024, was $928.8 million, with a margin of 13.8% on revenue before billable expenses[33] - Adjusted EBITA before restructuring charges for the nine months ended September 30, 2024, was $930.2 million, slightly lower than $938.2 million in the same period in 2023[33] - Operating Income and Adjusted EBITA before Restructuring Charges reported at $875.8 million, with adjustments leading to an Adjusted EBITA of $938.2 million[38] Net Income and Earnings Per Share - Net income available to IPG common stockholders was $20.1 million in Q3 2024, resulting in earnings of $0.05 per diluted share[7] - Net income available to IPG common stockholders for Q3 2024 was $20.1 million, a significant drop from $243.7 million in Q3 2023[22] - Net income available to IPG common stockholders for Q3 2024 was $20.1 million, compared to $243.7 million in Q3 2023[33] - Net income available to IPG common stockholders for the nine months ended September 30, 2024, was $345.0 million, down from $635.2 million in the same period in 2023[24] - Net income available to IPG common stockholders for the nine months ended September 30, 2024, was $345.0 million, compared to $635.2 million in the same period in 2023[33] - Earnings per share (diluted) for Q3 2024 was $0.05, a significant decrease from $0.63 in Q3 2023[22] - Weighted-average number of common shares outstanding - diluted for Q3 2024 was 378.7 million, with diluted earnings per share of $1.66[31] - Earnings per Share Available to IPG Common Stockholders - Basic and Diluted were $1.65 and $1.64 respectively, adjusted to $1.82 and $1.81[39] Expenses and Costs - Staff cost ratio decreased to 65.3% in Q3 2024 from 66.3% in Q3 2023, with total salaries and related expenses at $1.46 billion[12] - Office and other direct expenses increased to 14.6% of revenue before billable expenses in Q3 2024, up from 13.8% in Q3 2023[13] - Salaries and related expenses for Q3 2024 increased by 4.4% to $1,464.0 million compared to $1,531.1 million in Q3 2023[22] - Selling, general, and administrative expenses for Q3 2024 increased by 23.1% to $20.8 million from $16.9 million in Q3 2023[22] - Total (Expenses) and Other Income amounted to $(91.7) million, adjusted to $(71.3) million[38] - Amortization of Acquired Intangibles was $(63.1) million[38] Impairment and Restructuring - Non-cash goodwill impairment expense of $232.1 million related to digital specialist agencies and the sale process for R/GA and Huge[1][2] - Impairment of goodwill for Q3 2024 was $232.1 million, compared to no impairment in Q3 2023[22] - Impairment of goodwill for Q3 2024 was $232.1 million, significantly impacting net income[33] Cash and Share Repurchases - Cash and cash equivalents totaled $1.53 billion at September 30, 2024, compared to $2.39 billion at December 31, 2023[17] - The Company repurchased 7.3 million shares of its common stock at an aggregate cost of $230.1 million during the first nine months of 2024[18] Other Financial Metrics - Organic revenue growth over the first nine months of 2024 was 1.0%[1][4] - Operating income for Q3 2024 declined by 64.7% to $132.9 million from $376.8 million in Q3 2023[22] - Operating income for the nine months ended September 30, 2024, decreased by 27.5% to $635.3 million from $875.8 million in the same period in 2023[24] - Income Before Income Taxes was $784.1 million, adjusted to $866.9 million[38] - Provision for Income Taxes was $135.9 million, adjusted to $152.3 million[38] - Equity in Net Loss of Unconsolidated Affiliates was $(1.7) million[38] - Net Income Attributable to Non-controlling Interests was $(11.3) million[38]