Stagwell Inc. · NASDAQ:STGW
Stagwell — Q1 2022 Earnings Presentation
20 slides from Stagwell's earnings presentation, May 6, 2022
Slide 1: First Quarter 2022 Earnings Presentation
First Quarter 2022 EARNINGS PRESENTATION MAY 6 | 2022
Slide 2: Forward Looking Information & Other Information
FORWARD LOOKING INFORMATION & OTHER INFORMATION This presentation contains forward-looking statements. Statements in this presentation that are not historical facts, including without limitation the information under the heading "Financial Outlook" and statements about the Company’s beliefs and expe
Slide 3: Definitions of Non-GAAP Financial Measures
DEFINITIONS OF NON-GAAP FINANCIAL MEASURES Non-GAAP Financial Measures: In addition to its reported results, Stagwell Inc has included in this presentation certain financial results that the Securities and Exchange Commission (SEC) defines as "non-GAAP Financial Measures." Management believes that s
Slide 4: Reiterating Full-Year 2022 Outlook
FINANCIAL Reiterating Full-Year 2022 Outlook OUTLOOK 18% - 22% Organic Net Revenue Growth 13% - 17% Organic Net Revenue Growth Ex-Advocacy $450M - $480M Adjusted EBITDA (excludes any contribution from acquisitions completed in 2022) ~30% Free Cash Flow Growth Note: All figures presented on a Pro For
Slide 5: First Quarter Highlights
FIRST QUARTER HIGHLIGHTS NET DEBT: $1,105M | LTM ADJ. EBITDA: $404M | NET DEBT RATIO: 2.7X Accelerated GROWTH Increasing DIGITAL MIX 24% Organic Net Revenue Growth 56% of Net Revenue from Digital Capabilities 23% organic net revenue growth, ex-advocacy 39% digital organic net revenue growth year-ove
Slide 6: Summary Pro Forma Combined Financials
SUMMARY PRO FORMA COMBINED FINANCIALS Three Months Ended, $ in Thousands March 31, 2022 March 31, 2021 Net Revenue $ 526,637 $ 428,781 Billable Costs 116,266 60,046 Revenue $ 642,903 $ 488,827 Billable Costs 116,266 60,046 Staff costs 340,638 281,166 Administrative costs 56,294 51,904 Unbillable and
Slide 7: 1Q Pro Forma Net Revenue
1Q PRO FORMA NET REVENUE Three Months Ended, March 31, 2022 $ in Thousands Net Revenue Change March 31, 2021 $ 428,781 Organic revenue 101,379 23.6% Acquisitions (divestitures), net (1,048) -0.2% Foreign currency (2,475) -0.6% Total Change $ 97,856 22.8% March 31, 2022 $ 526,637 Note: All figures pr
Slide 8: Net Revenue Mix by Principal Capability
NET REVENUE MIX BY PRINCIPAL CAPABILITY 1 Digital Transformation 29% 56% Building & Designing Digital Experiences for Clients 2 Performance Media & Data Addressable on a Global Scale 18% 3 Consumer Insights & Strategy Tracking Across Consumer Journey 10% 4 Creativity & Communications Blue-Chip Custo
Slide 9: 1Q Year-over-Year Growth by Capability
1Q YEAR-OVER-YEAR GROWTH BY CAPABILITY % OF NET REVENUE 29% Organic Net Net Revenue Adjusted EBITDA* 18% Principal Capability Revenue Growth Growth Growth 10% 44% Digital Transformation 49% 48% 61% Performance Media & Data 18% 23% 85% Consumer Insights & Strategy 56% 55% 69% % Creativity & Communica
Slide 10: Q1 Net Revenue by Geography
Q1 NET REVENUE BY GEOGRAPHY % OF NET REVENUE Organic Growth Y/Y Geography 1Q22 11% 24% 7% United States United Kingdom 51% 1Q Other 12% 82% TOTAL 24% TOTAL EX-ADVOCACY 23% Note: Figures presented on a Pro Forma basis giving effect to the combination as if completed on January 1, 2020. 10
Slide 11: Q1 Ex-Advocacy Net Revenue & Adjusted EBITDA
Q1 EX-ADVOCACY NET REVENUE & ADJUSTED EBITDA $ in Millions Three Months Ended, March 31, March 31, % Change 2022 2021 NET Total Net Revenue $527 $429 22.8% REVENUE Advocacy Net Revenue 37 29 29.8% Ex Advocacy Net Revenue $489 $400 22.3% Three Months Ended, March 31, March 31, % Change 2022 2021 ADJ.
Slide 12: New Business Update
NEW BUSINESS UPDATE Notable Business WINS Net New Business Q1 2022 $54M Large Contract Wins1 Q1 2022 2 Cumulative2 10 Note: All figures presented on a Pro Forma basis giving effect to the combination as if it was completed on Jan. 1, 2020. 1. Expected to generate $10M or more in annual revenue. Base
Slide 13: Strategic M&A
STRATEGIC M&A 100% ACQUISITION 100% ACQUISITION (closed in April) (closed in March) A scaled provider of end-to-end e-commerce services such A leading multicultural full-service marketing agency as DTC strategy, digital content production, automation, and in depth, breadth, and size based in Canada.
Slide 14: Appendix
| me SL ASWELL Appendix
Slide 15: 1Q GAAP Consolidated Operating Performance
1Q GAAP CONSOLIDATED OPERATING PERFORMANCE Three Months Ended, Mar 31, $ in Thousands 2022 2021 Revenue $ 642,903 $ 181,242 Cost of services 411,970 111,999 Office & general expenses 144,512 52,278 Depreciation & amortization 31,204 10,950 Impairment & other losses 557 - Total operating expenses $ 5
Slide 16: Net Income & Diluted Earnings Per Share Detail
NET INCOME & DILUTED EARNINGS PER SHARE DETAIL Three Months Ended, $ in Thousands March 31, 2022 Net income $ 33,622 Net income attributable to Class C shareholders (17,721) Net income attributable to other equity interest holders (3,226) Net income attributable to noncontrolling interests $ (20,947
Slide 17: Liquidity
LIQUIDITY $ in Millions Available Liquidity (as of 3/31/22) Commitment Under Credit Facility $500 Drawn 140 Undrawn Letters of Credit 25 Undrawn Commitments Under Facility 335 Total Cash & Cash Equivalents 135 Total Available Liquidity $470 17
Slide 18: Year-End Pro Forma Capital Structure
YEAR-END PRO FORMA CAPITAL STRUCTURE Net Debt & Debt-Like ($M, as of 3/31/22) Pro Forma Common Equity (Thousands, as of 5/6/22) Revolving Credit Facility $ 140 Class A & B 133,156 Bonds 1,100 NCI1 33 Class C 164,815 DAC 224 RNCI & Other2 82 Awards Out. 4,739 Less: Cash 135 TOTAL NET DEBT & DEBT-LIKE
Slide 19: Global Network
GLOBAL NETWORK Stagwell’s Affiliate Network Significantly Expands Our Global Footprint Europe North America • Austria • Turkey • Belgium • Ukraine • Bulgaria • France • Italy • Germany • Canada • Latvia • Netherlands • USA • Lithuania • Poland • Mexico • Romania • Spain • • Slovak Republic Slovenia
Slide 20: Thank You
Thank You Contact Us: IR@StagwellGlobal.com