Stagwell (STGW) - 2024 Q4 - Annual Results

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]