Stagwell Inc. · NASDAQ:STGW
Stagwell — Investor Presentation (May 2025)
29 slides from Stagwell's investor presentation, May 2025
Slide 1: Investor Presentation May 2025
Investor Presentation MAY | 2025
Slide 2: Disclaimer: Forward-Looking Statements
DISCLAIMER Forward-Looking Statements This presentation 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 repre
Slide 3: Disclaimer
DISCLAIMER Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statements. Such risk factors include, but are not limited to, the following: • risks associated w
Slide 4: Stagwell at a Glance
at a Glance Mark Penn CHAIRMAN & CEO $2.8B 57% FY24 GAAP REVENUE DIGITAL IN FY24 “ Stagwell is a holistic, technology-first enterprise services company, owing to $411M ~$380M its combination of ad agency creative and technology enterprise. FY24 ADJ. EBITDA FY24 NET NEW BUSINESS We differentiate ours
Slide 5: From Zero to Market Hero
INTRODUCTION TO STAGWELL THE STAGWELL STORY Founded in late 2015 with a vision for a new digital-first From Zero to Market Hero marketing company, Stagwell has grown to become the first Marketing Services company in 40+ years to reach competitive scale Stagwell is driven by 2015 2017 2019 2021 TODAY
Slide 6: The Legacy Advertising Market Is Ripe For Disruption
STAGWELL OPPORTUNITY THE LEGACY ADVERTISING MARKET Is Ripe For Disruption $18B ~ $60B $2.5B spent with the OTHERS $37B top 4 legacy holding $16B companies1 Stagwell represented only $7B $15B ~ $145B IBM iX 2% of the global advertising $12B Deloitte and marketing services Digital $11B spent on advert
Slide 7: Stagwell Is Uniquely Positioned To Deliver Outsized Growth
STAGWELL OPPORTUNITY STAGWELL IS UNIQUELY POSITIONED To Deliver Outsized Growth Industry Recognition Driving Increase in Opportunities & Size of Wins M&A Engine Growing Digital & Geographical Footprint Geographical Diversification Expanding Global Client Remit Digital Transformation Leading Growth D
Slide 8: Visionary Leadership From An Industry Veteran
STAGWELL OPPORTUNITY VISIONARY LEADERSHIP From An Industry Veteran Mark Penn CHAIRMAN & CEO Steve Ballmer A Record of Vision FORMER CEO, MICROSOFT FIRST INVESTOR, STAGWELL & Accomplishment In 2015, Mark believed that the marketing industry was ripe “I have known Mark for many, many years. for disrup
Slide 9: Experienced Leadership Team With A Proven Record Of Success
STAGWELL OPPORTUNITY EXPERIENCED LEADERSHIP TEAM With A Proven Record Of Success FOUNDER & POLLSTER Founded Penn and Schoen in 1975 with his Harvard roommate Doug Schoen GROWER Under Penn’s leadership, firm expanded to 200+ people with offices around the world. Mark Penn ADVISOR Served key corporate
Slide 10: Integrated Platform For The Modern Marketer
STAGWELL TODAY INTEGRATED PLATFORM For The Modern Marketer Stagwell Marketing Cloud Group SaaS and DaaS Tools for the In-House Marketer 10% Digital Transformation Building Digital Platforms & Consumer Experiences 25% Performance Media & Data Integrated Omnichannel Media, Data & E-Commerce 14% Consum
Slide 11: Blue-Chip Customer Base: Demonstrated Ability To Land & Expand
STAGWELL TODAY BLUE-CHIP CUSTOMER BASE Demonstrated Ability To Land & Expand 80% CLIENT RETENTION $400M+ YEAR-OVER-YEAR2 GROWTH 8% REVENUE FROM TOP 10 CUSTOMERS1 IN AVERAGE RELATIONSHIP TOP 10 CUSTOMERS3 4K+ BLUE CHIP CUSTOMERS 1 FY24 net revenue from 10 largest customers by 2024 net revenue 2 Clien
Slide 12: Strategic Value-Added Investment Platform
STAGWELL TODAY STRATEGIC THE VALUE-ADDED PLATFORM Investment Platform Global Media Affiliate Client Marketing Network Reach Services Unified & engaged corporate team delivering value-added $ Growth shared services driving both Central M&A Innovation Group Investment revenue & cost synergies Incentiv
Slide 13: Driving Significant Growth In Opportunities & Wins
STAGWELL GROWTH ACCELERATORS INCREASING INDUSTRY RECOGNITION Driving Significant Growth In Opportunities & Wins 25+ $382M TRAILING TWELVE MONTH “Stagwell’s Sport Beach was NET NEW BUSINESS1 the highlight of the festival” A-LIST ATHLETES ~20% GROWTH IN VALUE OF RFP’S IN FY24 “Sport Beach was a master
Slide 14: Systematically Expanding Our Digital & Global Footprint
STAGWELL GROWTH ACCELERATORS ACQUISITION STRATEGY Systematically Expanding Our Digital & Global Footprint INCREASING OUR GROWING OUR REVENUE FROM DIGITAL REVENUE MIX OUTSIDE OF NORTH AMERICA 57% 65% 20% 40% FOCUS Digital Transformation: Platform design, Increasing our global footprint AREAS optimiza
Slide 15: Global Diversification To Service Widening Global Client Remits
STAGWELL GROWTH ACCELERATORS GLOBAL DIVERSIFICATION To Service Widening Global Client Remits 9 80+ INTERNATIONAL GLOBAL $504M FY24 INTERNATIONAL REVENUE1 ACQUISITIONS TO GROW FOUNDATIONAL SERVICES IN KEY REGIONS2 AFFILIATES EXTENDING OPERATIONAL REARCH FOR THE COMPANY Adds digital creative › Affilia
Slide 16: Digital Transformation: Leading Growth Driven By Emerging Tech
STAGWELL GROWTH ACCELERATORS DIGITAL TRANSFORMATION Leading Growth Driven By Emerging Tech EXPERIENCE Emerging technologies, like AI and AR, are driving monumental CHANGE shifts in the way consumers interact with the world around them. THIS REQUIRES TECHNOLOGY & The C-Suite are focused on accelerati
Slide 17: Stagwell Marketing Cloud: SaaS & DaaS Tools For The In-House Marketer
STAGWELL GROWTH ACCELERATORS STAGWELL MARKETING CLOUD SaaS & DaaS Tools For The In-House Marketer $198M Building complementary software solutions leveraging the domain NET REVENUE expertise and distribution channels already in place at Stagwell from SMC Group in FY23 31% Y/Y GROWTH DIGITAL SERVICES
Slide 18: Product Incubation Playbook
STAGWELL GROWTH ACCELERATORS STAGWELL MARKETING CLOUD GROUP Product Incubation Playbook WE BUILD We've developed a proven strategy to develop and incubate new technologies, making informed product roadmap decisions based off agency clients while ADVANCED leveraging our world-class tech team Faster S
Slide 19: Product Spotlight
STAGWELL GROWTH ACCELERATORS STAGWELL MARKETING CLOUD GROUP Product Spotlight Bringing a whole new level of stadium entertainment and fan engagement to sports and INTEGRATION WITH MLB’S NATIVE entertainment through shared AR BALLPARK APP Revolutionizing the PR process through AI, saving the PR profe
Slide 20: Financial Model: Adding It All Up
STAGWELL FINANCIAL MODEL ADDING Potential Equation for Success* ($M) It All Up ~12% Total Revenue CAGR driven by: Marketing Services (~5%) Media & Commerce (~10%) OPPORTUNITY Digital Transformation (~15%) TO GROW TO Advocacy (~10%) $5 BILLION Stagwell Marketing Cloud (~25%) M&A Growth (~$100M annual
Slide 21: Stagwell Is Under-Appreciated
STAGWELL is UNDER- APPRECIATED Industry-leading Stock price doesn’t reflect NET REVENUE GROWTH how Stagwell is disrupting marketing landscape Best-in-Class ADJ. EBITDA MARGIN UNDER-VALUED Efficient CONVERSION OF EBITDA TO FCF On Virtually All Metrics (P/S, EV/EBITDA, P/E) Sustainable LEVERAGE POSITI
Slide 22: Appendix
= me SL ASWELL Appendix
Slide 23: GAAP Consolidated Operating Performance
GAAP CONSOLIDATED OPERATING PERFORMANCE Three Months Ended March 31, Twelve Months Ended Dec 31, $ and Shares in Thousands 2025 2024 2024 2023 Revenue $ 651,740 $ 670,059 $ 2,841,216 $ 2,527,177 Cost of services 412,087 444,526 1,842,978 1,621,174 Office & general expenses 179,362 163,343 711,803 66
Slide 24: 1Q25 Results
1Q25 RESULTS We believe that total net revenue growth is one of the best ways to measure the progress of Stagwell as it goes from zero to nearly $3 billion in revenue and beyond, especially when looking at quarterly numbers which can be affected by the tax season, the political season, the Super Bow
Slide 25: 1Q25 Net Revenue Growth By Capability
1Q25 NET REVENUE GROWTH BY CAPABILITY % OF NET REVENUE Total Principal Organic Net Net Revenue Revenue Capability Growth Growth 11% Stagwell Marketing 6.0% 32.0% Cloud Group 1Q 19% 18% Digital Transformation 8.3% 7.9% 9% Performance (9.3)% (9.8)% 43% Media & Data Consumer Insights 3.6% 7.6% & Strate
Slide 26: 1Q25 Net Revenue Ex. Advocacy Growth By Capability
1Q25 NET REVENUE EX. ADVOCACY GROWTH BY CAPABILITY Ex. Advocacy % OF NET REVENUE EX. ADVOCACY Ex. Advocacy Ex. Customer Principal Organic Net Net Organic Net Net Revenue Revenue Revenue Revenue Capability Growth Growth Growth Growth 11% Stagwell Marketing 15.4% 44.8% 15.4% 44.8% 17% Cloud Group 1Q 1
Slide 27: 1Q25 Advocacy Net Revenue
1Q25 ADVOCACY NET REVENUE +7.6% Organic Net Revenue Growth $29.5M $27.4M 1Q23 1Q25 Notes: Advocacy includes Targeted Victory, SKDK, Wondercave and TMA Direct. Figures may not foot due to rounding
Slide 28: Capital Structure
CAPITAL STRUCTURE Net Debt & Debt-Like ($M, as of 3/31/2025) Share Count5 (Thousands, as of 4/30/2025) Revolving Credit Facility $ 375 Class A 265,765 Bonds 1,100 NCI1 21 DAC2 93 Class C6 - (equal voting & economic rights to Class A) RNCI3 29 Less: Investments4 16 Share-based awards7 7,881 Less: Cas
Slide 29: Thank You
= me SL ASWELL Thank You