Stagwell Inc. · NASDAQ:STGW
Stagwell — Q4 2024 Earnings Presentation
28 slides from Stagwell's earnings presentation, Feb 27, 2025
Slide 1: Fourth Quarter and Full Year 2024 Earnings Presentation
Fourth Quarter and Full Year 2024 EARNINGS PRESENTATION February 27 | 2025
Slide 2: Forward Looking Statements & Other Information
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
Slide 3: Definitions of Non-GAAP Financial Measures
DEFINITIONS OF NON-GAAP FINANCIAL MEASURES In addition to its reported results, Stagwell Inc. has included in this earnings presentation certain financial results that the Securities and Exchange Commission (SEC) defines as "non-GAAP Financial Measures." Management believes that such non-GAAP financ
Slide 4: Introducing Full-Year 2025 Outlook
Introducing Full-Year 2025 Outlook FINANCIAL ~ 8% Total Net Revenue Growth Outlook $410M - $460M Adjusted EBITDA > 45% EBITDA Conversion to Free Cash Flow $0.75 - $0.88 In Adjusted Earnings Per Share Note: Guidance as of 02/27/2025. The Company has excluded a quantit ativ e reconcil iation wit h res
Slide 5: Fourth Quarter Highlights
FOURTH QUARTER HIGHLIGHTS NET REVENUE: $630M | NET LEVERAGE RATIO: 3.0x | ADJ. EBITDA: $123M Best-In-Class GROWTH Record-Breaking NEW BUSINESS Revenue growth of 20% year-over-year to $789 million Record $102M of net new business wins in 4Q24, bringing LTM to $382M Digital Transformation grew 22% ove
Slide 6: Summary Combined Financials
SUMMARY COMBINED FINANCIALS Three Months Ended December 31, Twelve Months Ended December 31, $ in Thousands 2024 2023 2024 2023 Net Revenue $ 629,623 $ 551,066 $ 2,296,662 $ 2,152,454 Billable Costs 159,085 103,829 544,554 374,723 Revenue $ 788,708 $ 654,895 $ 2,841,216 $ 2,527,177 Billable Costs 15
Slide 7: 4Q24 Net Revenue
4Q24 NET REVENUE Three Months Ended December 31, 2024 Twelve Months Ended December 31, 2024 $ in Thousands Net Revenue Change Net Revenue Change Dec 31, 2023 $ 551,066 $ 2,152,454 Organic revenue 55,069 10.0% 111,746 5.2% Acquisitions 23,507 4.3% 31,028 1.4% (divestitures), net Foreign currency (19)
Slide 8: 4Q24 Net Revenue by Geography
4Q24 NET REVENUE BY GEOGRAPHY % OF NET REVENUE Organic Growth Y/Y Geography 4Q24 FY24 4Q 14.7% United States 12.3% 6.7% 6.7% United Kingdom (12.6)% (5.4)% Other 10.2% 1.8% 78.6% TOTAL 10.0% 5.2% TOTAL EX-ADVOCACY 6.3% 2.3% Note: Figu res may not foot due to roun din g. 8
Slide 9: Global Network
GLOBAL NETWORK Stagwell’s Affiliate Network Significantly Expands Our Global Footprint Europe • Austria • Ukraine North America • Belgium • France • Bulgaria • Germany • Italy • Netherlands • Canada • Latvia • Poland • USA • Romania • Spain • Mexico • Slovak Republic • Sweden • Slovenia • United Kin
Slide 10: Our Principal Capabilities
OUR PRINCIPAL CAPABILITIES 1 Stagwell Marketing Cloud Group SaaS and DaaS Tools for the Modern Marketer 51% 4Q24 2 Digital Transformation Building & Designing Digital Platforms & Technology 3 Performance Media & Data Addressable on a Global Scale 4 Consumer Insights & Strategy Tracking Across the En
Slide 11: Revenue Growth by Capability
REVENUE GROWTH BY CAPABILITY % OF REVENUE 4Q24 FY24 Organic Organic Revenue Revenue Revenue Revenue Principal Capability Growth Growth Growth Growth Stagwell Marketing 10% 15.8% 24.0% 16.1% 18.8% Cloud Group 4Q 23% Digital Transformation 23.7% 22.0% 11.5% 12.8% 11% 6% Performance 11.6% 11.9% 9.0% 9.
Slide 12: Net Revenue Growth by Capability
NET REVENUE GROWTH BY CAPABILITY % OF NET REVENUE 4Q24 YTD Organic Net Net Organic Net Net Revenue Revenue Revenue Revenue Principal Capability Growth Growth Growth Growth 10% Stagwell Marketing 9.1% 18.7% 10.5% 13.7% Cloud Group 4Q 24% Digital Transformation 17.0% 15.2% 7.1% 8.7% 14% 8% Performance
Slide 13: Adj EBITDA Growth by Capability
ADJ EBITDA GROWTH BY CAPABILITY Adj. EBITDA* Growth Y/Y % OF ADJ. EBITDA* Principal Capability 4Q24 FY24 0% Stagwell Marketing Cloud Group (107.2)% (58.5)% 32% Digital Transformation 4Q 33.9% 18.4% 12% Performance Media & Data 150.6% 28.3% 7% 48% Consumer Insights & Strategy (30.8)% (10.3)% Creativi
Slide 14: Ex-Advocacy Revenue, Net Revenue & Adjusted EBITDA
EX-ADVOCACY REVENUE, NET REVENUE & ADJUSTED EBITDA $ in Millions Three Months Ended, Twelve Months Ended, REVENUE Dec 31, Dec 31, % Change Dec 31, Dec 31, % Change 2024 2023 2024 2023 Total Revenue $789 $655 20.4% $2,841 $2,527 12.4% Advocacy Revenue 127 70 80.0% 363 211 71.9% Total Ex Advocacy 662
Slide 15: New Business Update
NEW BUSINESS UPDATE Notable Business WINS & EXPANSIONS Net New Business 4Q24 $102M LTM $382M Avg. Net Revenue 4Q24 $6.9M PER CLIENT AT TOP 25 15
Slide 16: Stagwell Marketing Cloud Group
STAGWELL MARKETING CLOUD GROUP Net Revenue1 Adj. Net EBITDA $ in Millions Revenue Margin $65M Advanced $55M $47.8 6.9% Media Platforms Stagwell $17.4 (23.3)% Marketing Cloud TOTAL $65.3 (1.1)% 4Q23 4Q24 GROWTH (y/y) 18.7% 1. Defined as GAAP Revenue minus Bill able Costs – Includes both the Advanced
Slide 17: Liquidity
LIQUIDITY $ in Millions Available Liquidity (as of 12/31/2024) Commitment Under Credit Facility $ 640 Drawn 264 Letters of Credit 15 Undrawn Commitments Under Facility $ 361 Total Cash & Cash Equivalents 131 Total Available Liquidity $ 492 Note: Numbers may not foo t due to ro unding. 17
Slide 18: Maintaining Discipline Around Deferred Acquisition Costs
MAINTAINING DISCIPLINE AROUND Deferred Acquisition Costs DAC INCREASED BY $1M FROM FY23 YEAR-END BALANCE AS STAGWELL CLOSED 10 ACQUISITIONS $101M $102M 4Q23 4Q24 Numbers may not foot due to rounding. 18
Slide 19: Adjusted Earnings Per Share
ADJUSTED EARNINGS PER SHARE Three Months Ended Dec 31, 2024 Twelve Months Ended Dec 31, 2024 Reported Reported $ and Shares in Thousands (GAAP) Adjustments Non-GAAP (GAAP) Adjustments Non-GAAP Net income attributable to Stagwell Inc. common shareholders $ 3,235 $ 22,226 $ 25,461 $ 2,259 $ 80,403 $ 8
Slide 20: GAAP Consolidated Operating Performance
GAAP CONSOLIDATED OPERATING PERFORMANCE Three Months Ended Dec 31, Twelve Months Ended Dec 31, $ and Shares in Thousands 2024 2023 2024 2023 Revenue $ 788,708 $ 654,895 $ 2,841,216 $ 2,527,177 Cost of services 50 2,522 419,865 1,84 2,978 1,621,174 Office & general expenses 20 3,887 179,871 711,803 6
Slide 21: Capital Structure
CAPITAL STRUCTURE Net Debt & Debt-Like ($M, as of 12/31/2024) Share Count5 (Thousands, as of 12/31/2024) Revolving Credit Facility $ 264 Class A 114,845 Bonds 1,100 NCI1 22 DAC2 102 Class C 151,649 (equal voting & economic rights to Class A) RNCI3 27 Less: Investments4 15 Share-based awards6 8,618 L
Slide 22: Applying a Proven Playbook to Scale Stagwell Marketing Cloud Group
APPLYING A PROVEN PLAYBOOK to scale Stagwell Marketing Cloud Group Building complementary software solutions leveraging the domain expertise and distribution channels already in place at Stagwell Digital Services Technology Digital Transformation Advanced Media Platforms 1 Building Digital Platforms
Slide 23: Product Incubation Playbook
STAGWELL MARKETING CLOUD GROUP Product Incubation Playbook We've developed a proven strategy to develop and incubate new technologies, making informed product roadmap decisions based off agency clients while leveraging our world-class tech team Faster WE BUILD Shared infrastructure + tech expertise
Slide 24: Product Spotlight: Real-Time Insights
REAL-TIME INSIGHTS Product Spotlight Customer Benefit Unlocking continuous brand tracking on an affordable, global, modern basis for research professionals 24
Slide 25: Product Spotlight: Artificial Intelligence
ARTIFICAL INTELLIGENCE Product Spotlight Customer Benefit Revolutionizing the PR process through AI, saving PR professionals from millions of tedious working hours 25
Slide 26: Product Spotlight: Augmented Reality
AUGMENTED REALITY Product Spotlight Customer Benefit Bringing a whole new level of stadium entertainment and fan engagement to sports and entertainment through shared AR 26
Slide 27: Pricing Model
STAGWELL MARKETING CLOUD GROUP Pricing Model Modern, flexible pricing models that fit the needs and budgets for the modern marketer Subscription Pricing Consumption Fee Advertising-Based Annual SaaS contract Data and media spend Sponsorship fees 27
Slide 28: Thank You
Thank You Contact Us: IR@StagwellGlobal.com