Originally Released On

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Media Contact

Gabriela Schulte
gabriela.schulte@harrisx.com 

Originally Released On

PR Newswire

Contact

Kara Gelber
pr@stagwellglobal.com 

Award Highlights from H1 2024 include:

• 10+ “Agency of the Year” Distinctions, including Ace Awards “Creative Agency of the Year” for Code and Theory; Ad Age A-List Award for 72andSunny (#8); Ad Age Business Transformation Agency of the Year for Code and Theory; Ad Age Standout Agency of the Year for Colle McVoy; Ad Age Standout Agency of the Year for Team Epiphany; Campaign U.S. “Advertising Agency of the Year” for GALE; Campaign U.S. “Media Agency of the Year” for Assembly; Digiday Media Buying & Planning Awards “Media Agency of the Year” for Movers+Shakers; Observer Top 5 Agencies for Crisis & Reputation Management for SKDK; PRovoke Media IN2 SABRE Awards North America “Disruptive Agency of the Year” for Exponent PR; and PRSA Anvil Awards “Silver Oak Anvil” Award for Agencies for HUNTER.

• 50+ Technology, Product, & Innovation Awards, with highlights including  PRophet – an AI tool for PR professionals – winning at the Webby Awards for Marketing and Content Management App; and at the IN2 SABRE Awards’ Tech Stack category; SMC’s shared augmented reality platform ARound winning Best in Extended Reality at the SBJ Sports Business Awards: Tech; Allison’s campaign measurement tool, BrandGeist IQ, winning in the Tech Stack Awards at the IN2 SABREs; Goodstuff’s innovative OOH green bidding tech for Ovo Energy winning in the Product Innovation category at the Campaign Media Awards;  and Code and Theory’s innovative use of AI for NBC’s “Big Board” winning Gold for Use of Data in the New York Festival Awards.

• Top 5 Awarded Campaigns Globally from Stagwell Agencies Include:
  • “Anti-Choice Ads” from 72andSunny, Wisp, and the Abortion Freedom Fund: This Fast Company “World Changing Ideas” 2024 Winner was an interactive PSA for reproductive rights, which turned the “skip ad” button into an inescapable dilemma for anti-abortion audiences. With top honors won at global shows such as the 28th Annual Webby Awards, Clio Awards, Clio Health Awards, and D&ADs, “Anti-Choice Ads” is a shortlisted campaign for the prestigious Cannes Lions Glass Lions for Change.
  • “The NIL Student Nurse Initiative” from Doner for Saucony and the Galen College of Nursing saw one of America’s largest educators of nurses, Galen College of Nursing, introduce the first ever NIL program developed exclusively for nursing students. In addition to winning a Grand Clio at the 2023 Clio Sports Awards, this campaign has picked up top wins at the 2024 Clio Health Awards and One Show.
  • “Map the Gaps” from YETI and Code and Theory set out to take the “street” out of Google Street View – by locating and integrating some of the world’s last uncharted trails. As digital partner, Code and Theory designed, developed, and launched the digital experience anchoring Map the Gaps, an effort which has won top awards at the 15th Annual Shorty Awards, One Show, The Drum Awards for Marketing Americas, ADC Awards, and 28th Annual Webby Awards, among others.
  • Tequilla Don Julio’s Super Bowl Stunt saw HUNTER partner with the Diageo brand to turn the tallest freestanding observation tower in the U.S., the STRAT Hotel, into a 1,149-feet-tall replica of Tequila Don Julio 1942’s iconic bottle. This first-of-its-kind projection stunt has picked up top accolades at The Drum Marketing Awards for Americas, Muse Creative Awards, and others.
  • “The La-Z Boy Decliner“ from Colle McVoy for La-Z Boy saw Colle McVoy’s creative technology team design and fabricate “The Decliner,” a first of its kind recliner allowing owners to AI-generate a cancellation excuse via SMS simply by pulling the handle. Alongside juicing La-Z-Boy’s website traffic by 200% and increasing brand sales by 50% during the first week of the campaign, The La-Z-Boy Decliner has stunned juries at the PRWeek Awards, PRovoke Media IN2 SABRE Awards North America, MediaPost Planning & Buying Awards, and more.

  To inquire about working with a Stagwell agency, please contact hello@stagwellglobal.com.

  About Stagwell
  Stagwell (NASDAQ: STGW) is the challenger network built to transform marketing. We deliver scaled creative performance for the world’s most ambitious brands, connecting culture-moving creativity with leading-edge technology to harmonize the art and science of marketing. Led by entrepreneurs, our 13,000+ specialists in 34+ countries are unified under a single purpose: to drive effectiveness and improve business results for their clients. Join us at www.stagwellglobal.com

  CONTACT: 
  Kara Gelber
  pr@stagwellglobal.com 

By: Ray Day

CONTACT:

Ray Day
ray.day@stagwellglobal.com 

We wanted to share our latest consumer and business insights, based on research from Stagwell. Among the highlights of our weekly consumer sentiment tracking:

BUSINESS LEADERS MUCH MORE OPTIMISTIC THAN CONSUMERS

The economic outlook is quite different depending on whether you speak with business leaders or individuals, according to our fifth annual 2024 Milken Institute-Harris Poll Listening Project.

• 81% of business leaders believe the U.S. economy is strong, 84% are optimistic about their industry’s future, and 81% are optimistic about their company.
• In contrast, only 40% of Americans believe that the economy is strong, and 72% say “economists say things are getting better, but we’re not feeling it where I live.”
• AI is the second most disruptive issue for a company today – with 87% of business leaders calling it very or somewhat disruptive, along with financial uncertainty (88%), cybersecurity (84%), changing generational values (82%) and inconsistent government policies (82%).
• 73% of Americans believe the country is losing its global leadership position, and 69% say “America is no longer competitive in the global economy.”
• 71% of Americans believe “innovation is bubbling up in local communities, but national media is missing this story.”

MOST UNPREPARED FOR BUSY HURRICANE SEASON

The 2024 Atlantic hurricane season is expected to be the strongest in recent years, yet more than half of Americans (52%) would only have enough food in their home for one or two days if there were a widespread power outage, according to our Harris Poll research with Generac.

• 71% of Americans would be concerned with food spoilage if their home experienced an extended power outage.
• 50% would struggle financially to replace perishable food lost due to an extended power outage.
• 36% have medical devices powered by electricity that they or someone in their home use daily.
• 77% of pet owners are willing to risk their own comfort to stay with their pets at home during extended power outages.

20 YEARS TO PAY OFF STUDENT LOANS

Most Americans believe it will take more than two decades to pay off their student loans, according to our Harris Poll research with Northwestern Mutual.

• Americans saving for college think it will cost more than $77,000 – a debt they don’t expect to pay off until age 45.
• 2 in 10 Americans who are saving for higher education for a loved one are simultaneously paying off their own college loans.
• Americans’ personal non-mortgage debt edged higher this year to nearly $23,000 – after several years of paying down debts. The leading source is credit cards.
• Millennials and Gen X have the most debt, and many say they’re carrying their highest level of debt ever.
• 40% of Americans do not have an emergency fund.

FUTURE OF NEWS

Stagwell is hosting the “Future of News Summit” next Wednesday, May 15 in New York. The summit is the culmination of groundbreaking Stagwell research on journalism and advertising. While news is the foundation of a thriving democracy, advertising tied to certain kinds of news is increasingly being attacked under the banner of “brand safety.” This has been used to scare businesses into pulling back from news advertising, which, in turn, is weakening the journalism model.

• Along with an overview of the research findings, the summit will include award-winning journalists and top brand leaders who will discuss the continued power in news driving strong business results.
• Among the leaders joining are: Hannah Beckler, Business Insider; Jason Conti, Dow Jones; Jason Rezaian, The Washington Post; Megan Twohey, The New York Times; Tara Carraro, U. S. Steel; Will Doherty, The Trade Desk; Dan Gardner, Code and Theory; Shenan Reed, General Motors; Lou Paskalis, Ad Fontes Media; Mark Penn, chairman and CEO, Stagwell; and Ray Day, vice chair, Stagwell.
• Want to know more about Stagwell’s commitment to news? Sign up to receive the findings at this link or reach out to Alexis.Williams@StagwellGlobal.com.

ICYMI

In case you missed it, check out some of the thought-leadership and happenings around Stagwell making news:

• PRSA’s Strategy to Out-Communicate Misinformation
• Crypto is ‘top of mind for voters’ in US swing states — Harris Poll
• Americans Are Racking Up ‘Phantom Debt’ That Wall Street Can’t Track
• Travel and makeup are popular among boomers, fueling TripAdvisor and Sephora
• New Yorkers are Worried about the Waste Crisis but Don’t See a Plastic Ban as a Solution

By: Ray Day

CONTACT:

Ray Day
ray.day@stagwellglobal.com 

We wanted to share our latest consumer and business insights, based on research from Stagwell. Among the highlights of our weekly consumer sentiment tracking:

BORDER ISSUES VIEWED AS CRISIS

American sentiment on immigration is boiling over, according to latest Axios Vibes by The Harris Poll.

• 64% of Americans say the current U.S. southern border situation is a crisis, not a politically driven media narrative.
• 51% – including 42% of Democrats – would support mass deportations of undocumented immigrants.
• The survey also found discrepancies between Americans’ perceptions of immigration and facts: 64% wrongly believe immigrants receive more in welfare and benefits than they pay in taxes, and 56% wrongly assume that illegal immigration is linked to spiking U.S. crime rates.
• Americans strongly support immigration as long as it is lawful, with 65% thinking the U.S. should make it easier for anyone seeking a better life to enter legally.
• 58% support expanding legal pathways for orderly immigration.

MOOD OF COUNTRY REMAINS FLAT

Americans’ views of how things are going remains little changed from last month, according to our most recent poll with the Center for American Political Studies at Harvard University.

• 34% of Americans say the country is on the right track (equal with 34% a month ago), and 35% say the economy is on the right track (up slightly from 34% last month).
• 48% say their personal financial situation is becoming worse (compared with 47% a month ago), while 29% say it is improving (compared with 27% a month ago).
• Top issues for Americans remain immigration (35%) and price increases/inflation (35%), followed by the economy (with a 3-point improvement in perception from a month ago).
• Right now, Americans are more focused on domestic issues than foreign policy: 59% say this is a time in world affairs that enables the U.S. to focus primarily on domestic issues, rather than spend more on military and foreign affairs (Democrats: 58%, Republicans: 57% and Independents: 63%).
• 58% say the U.S. does not have the leadership necessary to handle world affairs.
• 56% support sending $26 billion in aid to Israel; 49% support sending $8 billion in aid to the Indo-Pacific, including Taiwan; and 48% support sending $61 billion in aid to Ukraine.

RELIGION AS PART OF DEI RECEIVES MIXED REVIEWS

As employees’ needs and employers’ budgets have evolved, so have DEI teams. Based on our latest Harris Poll research with HR Brew, sharing religious beliefs at work is causing conflict among some coworkers.

• 67% of Americans think companies should have a formal DEI program.
• Yet only 49% of employees report that their company has a formal initiative, and 22% are not sure.
• 43% report having religious/faith DEI programming, yet employees are split over whether or not religion should be part of DEI: 54% said it would be appropriate to integrate it into DEI, while 41% said it shouldn’t – more than those who said the same about disability (26%), race (31%) and gender (33%).
• Workplace tensions might be driving the split: 41% say that conflicts related to faith/religion have caused tension at their workplace.
• Also, while 78% of Americans want companies to reflect the diversity of the U.S. population, 49% find the acronym “DEI” to be divisive, based on our previous research.

HOW YOU SHOWER SHOWS YOUR AGE

You might think your shower habits are random, yet new data from The Harris Poll reveals that showering is indicative of your age.

• The older you are, the shorter your shower time: Gen Z spends the longest time in the shower, at an average of 21.2 minutes, nearly twice as long as the 12.3 minutes for Boomers.
• 17% of Boomers shower five minutes or less.
• Gen X is mostly likely to take a daily shower (at 69%).
• Men are more likely to shower in the morning, while women are more likely to shower in the evening.
• The time of day that a person showers also varies by age group: 51% of Gen X say they typically are showered by 9 a.m., while 50% of Gen Z report showering after 8 p.m.

GEN Z LIKES USED HERMES AND CARTIER PRODUCTS

Surging demand for secondhand luxury goods is helping to boost the image of upscale brands Hermès and Cartier among Gen Z, according to our Harris Poll research with Ad Age.

• Hermès tops our latest Gen Z brand tracker, while Cartier comes in ninth. The tracker ranks brands that made significant progress in gaining attention from Gen Z in the first quarter of 2024.
• Other brands cracking the top five are Peppa Pig, Firehouse Subs, Coinbase and StubHub.

ICYMI

In case you missed it, check out some of the thought-leadership and happenings around Stagwell making news:

• Businesses Are Way More Optimistic Than Consumers, Poll Finds
• Stagwell Announces ‘Future of News’ Summit on May 15 Featuring Trailblazing Panelist Discussions and 50,000-Respondent Study Revealing the Importance of Investing in News
• Human Progress Report: Continuous learning is critical to achieving security and well-being.
• Navigating a new era of streaming
• Why Trees And Green Spaces Are Good For Our Health And Wellbeing

Originally Released On

PRNewswire

Media Contact

Canadian Press:
Nina Kalos
kalos@veritasinc.com

U.S. Press:
Sarah Arvizo
pr@stagwellglobal.com

Originally Released On

PR Newswire

CONTACT:

IR Contact:
Ben Allanson
ir@stagwellglobal.com 

PR Contact:
Sarah Arvizo
pr@stagwellglobal.com 

Revenue Growth of 8%, Led by 13% Growth from Performance Media & Data

Net Loss Attributable to Stagwell Inc. Common Shareholders of $1.3 million

Adjusted EBITDA of $90 million, An Increase of 25% Year-Over-Year

Adjusted EBITDA Margin of 17%, An Increase of 320 Basis Points Year-Over-Year

EPS of $(0.01); Adjusted EPS of $0.16, An Increase of 14% Year-Over-Year

Net New Business of $66 million in Q1; LTM Net New Business of $284 million

Reaffirm Guidance for 2024 of Organic Net Revenue Growth of 5% to 7%; Adjusted EBITDA of $400 million to $450 million; Free Cash Flow Conversion of ~50%

NEW YORK, May 1, 2024 /PRNewswire/ — (NASDAQ: STGW) – Stagwell Inc. (“Stagwell”) today announced financial results for the three months ended March 31, 2024.

FIRST QUARTER RESULTS:

• Q1 Revenue of $670 million, an increase of 8% versus the prior year period.
• Q1 Net Loss attributable to Stagwell Inc. Common Shareholders of $1.3 million versus Income of $1.4 million in the prior year period.
• Q1 Adjusted EBITDA of $90 million, an increase of 25% versus the prior year period.
• Q1 Adjusted EBITDA Margin of 17% on net revenue, an improvement of 320 basis points versus the prior year period.
• Q1 Earnings Per Share Attributable to Stagwell Inc. Common Shareholders of $(0.01) versus $0.00 in the prior year period.
• Q1 Adjusted Earnings Per Share attributable to Stagwell Inc. Common Shareholders of $0.16 versus $0.14 in the prior year period.
• Net new business wins of $66 million in the first quarter, last twelve-month net new business wins of $284 million.
• Q1 Net Revenue of $532 million, an increase of 2% versus the prior year period.
• Q1 Organic Net Revenue increased 2% versus the prior year period, led by 54% increase in Advocacy.

Mark Penn, Chairman and CEO, said, “We are on target for 2024 with a return to growth and strong margin expansion led by the double-digit growth of the Performance Media & Data Capability. We see tailwinds of record new business, growth in advertising generally, and a strengthened market position given growing industry accolades for our work.”

“We continue to invest in technology with the Stagwell Marketing Cloud setting the pace for innovation and we believe that we will see growth in AI-related digital transformation assignments building in the second half of the year along with a strong advocacy season. At the same time, we are successfully expanding our global presence, and we are seeing that pay dividends with enhanced growth.”

Frank Lanuto, Chief Financial Officer, commented: “Revenue in Q1 grew by 8% year-over-year to $670 million. Cost actions taken in 2023 contributed to 25% growth in adjusted EBITDA or $90 million, representing a 17% adjusted EBITDA margin, an improvement of 320 basis points over the prior year. We are well positioned to achieve our 2024 targets, as we continue to focus on efficiency, especially through the implementation of AI on our shared services platform.” 

Financial Outlook

2024 financial guidance is reiterated as follows:

• Organic Net Revenue growth of 5% to 7%
• Organic Net Revenue excluding Advocacy growth of 4% to 5%
• Adjusted EBITDA of $400 million to $450 million
• Free Cash Flow Conversion of approximately 50%
• Adjusted EPS of $0.75 – $0.88
• Guidance assumes no impact from foreign exchange, acquisitions or dispositions.

* The Company has excluded a quantitative reconciliation with respect to the Company’s 2024 guidance under the “unreasonable efforts” exception in Item 10(e)(1)(i)(B) of Regulation S-K. See “Non-GAAP Financial Measures” below for additional information.

Video Webcast

Management will host a video webcast on Wednesday, May 1, 2024, at 8:30 a.m. (ET) to discuss results for Stagwell Inc. for the three months ended March 31, 2024. The video webcast will be accessible at https://stgw.io/Earnings. An investor presentation has been posted on our website at www.stagwellglobal.com and may be referred to during the webcast.

A recording of the webcast will be accessible one hour after the webcast and available for ninety days at www.stagwellglobal.com.

Stagwell Inc.

Stagwell is the challenger network built to transform marketing. We deliver scaled creative performance for the world’s most ambitious brands, connecting culture-moving creativity with leading-edge technology to harmonize the art and science of marketing. Led by entrepreneurs, our specialists in 34+ countries are unified under a single purpose: to drive effectiveness and improve business results for their clients. Join us at www.stagwellglobal.com.

Contacts

For Investors: 
Ben Allanson
IR@stagwellglobal.com

For Press:
Beth Sidhu
PR@stagwellglobal.com

Non-GAAP Financial Measures

In addition to its reported results, Stagwell Inc. has included in this earnings release certain financial results that the Securities and Exchange Commission (SEC) defines as “non-GAAP Financial Measures.” Management believes that such non-GAAP financial measures, when read in conjunction with the Company’s reported results, can provide useful supplemental information for investors analyzing period to period comparisons of the Company’s results. Such non-GAAP financial measures include the following:

(1) Organic Revenue: “Organic revenue growth” and “Organic revenue decline” reflects the year-over-year change in the Company’s reported net revenue attributable to the Company’s management of the entities it owns. We calculate organic net revenue growth (decline) by subtracting the net impact of acquisitions (divestitures) and the impact of foreign currency exchange fluctuations from the aggregate year-over-year increase or decrease in the Company’s reported net revenue. The net impact of acquisitions (divestitures) reflects the year-over-year change in the Company’s reported net revenue attributable to the impact of all individual entities that were acquired or divested in the current and prior year. We calculate impact of an acquisition as follows: (a) for an entity acquired during the current year, we present the entity’s prior year net revenue for the same period during which we owned it in the current year as impact of the acquisition in the current year; and (b) for an entity acquired in the prior year, we present the entity’s prior year net revenue for the period during which we did not own the entity in the prior year as impact of the acquisition in the current year. We calculate impact of a divestiture as follows: (a) for a divestiture in the current year, we present the entity’s prior year net revenue for the same period during which we no longer owned it in the current year as impact of the divestiture in the current year; and (b) for a divestiture in the prior year, we present the entity’s prior year net revenue for the period during which we owned it in the prior year as impact of the divestiture in the current year. We calculate the impact of any acquisition or divestiture without adjusting for foreign currency exchange fluctuations. The impact of foreign currency exchange fluctuations reflects the year-over-year change in the Company’s reported net revenue attributable to changes in foreign currency exchange rates. We calculate the impact of foreign currency exchange fluctuations for the portion of the reporting period in which we recognized revenue from a foreign entity in both the current year and the prior year. The impact is calculated as the difference between (1) reported prior period net revenue (converted to U.S. dollars at historical foreign currency exchange rates) and (2) prior period net revenue converted to U.S. dollars at current period foreign exchange rates.

(2) Net New Business: Estimate of annualized revenue for new wins less annualized revenue for losses incurred in the period.

(3) Adjusted EBITDA: defined as Net income excluding non-operating income or expense to achieve operating income, plus depreciation and amortization, stock-based compensation, deferred acquisition consideration adjustments, and other items. Other items include restructuring costs, acquisition-related expenses, and non-recurring items.

(4) Adjusted Diluted EPS is defined as (i) Net income (loss) attributable to Stagwell Inc. common shareholders, plus net income attributable to Class C shareholders, excluding amortization expense, impairment and other losses, stock-based compensation, deferred acquisition consideration adjustments, discrete tax items, and other items, divided by (ii) (a) the per weighted average number of common shares outstanding plus (b) the weighted average number of Class C shares outstanding, (if dilutive). Other items includes restructuring costs, acquisition-related expenses, and non-recurring items, and subject to the anti-dilution rules.

(5) Free Cash Flow: defined as Adjusted EBITDA less capital expenditures, change in net working capital, cash taxes, interest, and distributions to minority interests, but excludes contingent M&A payments. Free Cash Flow Conversion is the percentage of adjusted EBITDA.

Included in this earnings release are tables reconciling reported Stagwell Inc. results to arrive at certain of these non-GAAP financial measures.

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 representatives may also make forward-looking statements orally or in writing from time to time. Statements in this document that are not historical facts, including, statements about the Company’s beliefs and expectations, future financial performance, growth, and future prospects, the Company’s strategy, business and economic trends and growth, technological leadership and differentiation, potential acquisitions, anticipated operating efficiencies and synergies and estimates of amounts for redeemable noncontrolling interests and deferred acquisition consideration, constitute forward-looking statements. Forward-looking statements, which are generally denoted by words such as “aim,” “anticipate,” “assume,” “believe,” “continue,” “could,” “create,” “estimate,” “expect,” “focus,” “forecast,” “foresee,” “future,” “goal,” “guidance,” “in development,” “intend,” “likely,” “look,” “maintain,” “may,” “ongoing,” “opportunity,” “outlook,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would” or the negative of such terms or other variations thereof and terms of similar substance used in connection with any discussion of current plans, estimates and projections are subject to change based on a number of factors, including those outlined in this section. 

Forward-looking statements in this document are based on certain key expectations and assumptions made by the Company. Although the management of the Company believes that the expectations and assumptions on which such forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. The material assumptions upon which such forward-looking statements are based include, among others, assumptions with respect to general business, economic and market conditions, the competitive environment, anticipated and unanticipated tax consequences and anticipated and unanticipated costs. These forward-looking statements are based on current plans, estimates and projections, and are subject to change based on a number of factors, including those outlined in this section. These forward-looking statements are subject to various risks and uncertainties, many of which are outside the Company’s control. Therefore, you should not place undue reliance on such statements. Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update publicly any of them in light of new information or future events, if any.

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 with international, national and regional unfavorable economic conditions that could affect the Company or its clients;
• and demand for the Company’s services, which may precipitate or exacerbate other risks and uncertainties;
• inflation and actions taken by central banks to counter inflation;
• the Company’s ability to attract new clients and retain existing clients;
• the impact of a reduction in client spending and changes in client advertising, marketing and corporate communications requirements;
• financial failure of the Company’s clients;
• the Company’s ability to retain and attract key employees;
• the Company’s ability to compete in the markets in which it operates;
• the Company’s ability to achieve its cost saving initiatives;
• the Company’s implementation of strategic initiatives;
• the Company’s ability to remain in compliance with its debt agreements and the Company’s ability to finance its contingent payment obligations when due and payable, including but not limited to those relating to redeemable noncontrolling interests and deferred acquisition consideration;
• the Company’s ability to manage its growth effectively, including the successful completion and integration of acquisitions that complement and expand the Company’s business capabilities;
• the Company’s ability to develop products incorporating new technologies, including augmented reality, artificial intelligence, and virtual reality, and realize benefits from such products;
• adverse tax consequences for the Company, its operations and its stockholders, that may differ from the expectations of the Company, including that future changes in tax laws, potential increases to corporate tax rates in the United States and disagreements with tax authorities on the Company’s determinations may result in increased tax costs;
• adverse tax consequences in connection with the Transactions, including the incurrence of material Canadian federal income tax (including material “emigration tax”);
• the Company’s unremediated material weaknesses in internal control over financial reporting and its ability to establish and maintain an effective system of internal control over financial reporting;
• the Company’s ability to protect client data from security incidents or cyberattacks;
• economic disruptions resulting from war and other geopolitical tensions (such as the ongoing military conflicts between Russia and Ukraine and in Israel and Gaza), terrorist activities and natural disasters;
• stock price volatility; and
• foreign currency fluctuations.

Investors should carefully consider these risk factors, other risk factors described herein, and the additional risk factors outlined in more detail in our 2023 Form 10-K, filed with the Securities and Exchange Commission (the “SEC”) on March 11, 2024, and accessible on the SEC’s website at www.sec.gov, under the caption “Risk Factors,” and in the Company’s other SEC filings.

Originally Released On

PRNewswire

Media Contact

IR Contact
Ben Allanson
ir@stagwellglobal.com 

Media Contact:
Sarah Arvizo
pr@stagwellglobal.com 

Originally Released On

PR Newswire

CONTACT:

Sarah Arvizo
pr@stagwellglobal.com

Frontiers in Focus

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ENGAGEMENT WITH CONSUMERS: HARNESSING ‘FOURTH PARTY’ DATA

A eureka moment while developing a game-changing campaign for Tipico is driving a new approach to capturing “fourth-party data” at Code and Theory, Stagwell’s digital transformation network. When tasked by European brand Tipico to break into the Ohio sports betting market, Code and Theory leveraged ChatGPT to create living personas. These synthetic humans not only answered the agency’s questions, they delivered real-time, effective “fourth-party data” that helped Tipico beat every one of their campaign goals. Code and Theory defines “fourth-party data” as a dataset made synthetically by AI from pre-existing first- and third-party data. The new data is essential to anticipating what consumers will want in the future, as opposed to reflecting what they have already wanted.  

“AI’s power and real opportunity is enabling businesses to make better decisions and anticipate customer needs. AI can study your behaviors, actions and patterns and anticipate what you might want, in seconds,” said Dan Gardner, Founder and Executive Chairman, Code and Theory network. “It also allows businesses to reduce the friction and pain points we all experience when we are trying to book a service or buy an item. The steps to getting what you want will simply fall away.”

EFFICIENCY IN MARKETING: HOMEGROWN STORI TOOL ENHANCES SALES RATE

Stori innovates the case study creation process for Instrument’s delivery teams, employing advanced language models and integrations with Google Cloud services to streamline and accelerate the production of tailored case studies. The tool contributed to a record win streak of 50+ new clients for Instrument in 2023. 

“Case studies are the essential proof points for our products and services. Stori enabled us to democratize the case study creation process across the agencies,” said Mike Creighton, Instrument’s Director of AI Research and Development. “Its deployment brought efficiency, quality and consistency to the case study creation process; helped boost enthusiasm for generative AI across the company; and ultimately let teams focus on what truly matters – delivering exceptional results for our clients.” 

ENABLEMENT ACROSS OPERATIONS: REARCHITECTING A TOP PERFORMER WITH AI AT ITS CORE

GALE — our fast-growing business agency — has revolutionized its offering with AI at its core. Called Alchemy.Ai, the private enterprise cloud platform is trained on all aspects of data at the agency and reduces the time spent on critical tasks across all disciplines. The tool can improve the output efficiency of core workflows like audience insight development by as much as 80%. 

“The unveiling of Alchemy.Ai reshapes GALE as we know it, marking a massive shift in how we work and the democratization of data across all teams,” GALE CEO Brad Simms says. “When GALE was founded in 2014, we were first-to-market with our unique blend of creative and consultancy centered around data. While we’ve continued to build our model over the last decade to become one of the most celebrated agencies in North America, Alchemy.Ai is the most significant product update we’ve ever made.”

ABOUT GALE

GALE is a Business Agency. Founded in 2014, the agency currently has offices in New York, Singapore, Toronto, Denver, Los Angeles, London, Austin, Kansas City, and Bengaluru. GALE has received top industry awards including Ad Age’s A-List, Ad Age’s Data & Analytics Agency of the Year, Adweek’s Fastest Growing Agency, the Grand Effie and Adweek’s Breakthrough Media Agency of the Year. 

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Bomb Pop is the most popular ice pop that nobody can remember. GALE’s mission was simple: get tweens to remember the brand’s name. The team brought the favorite summertime snack into the virtual world of Restaurant Tycoon 2 in Roblox, where Roblox restaurant owners could serve eight virtual Bomb Pop flavors to their customers. Gamers served 48.5 million Bomb Pops — making it the #1 selling food item in Roblox history. 

Our Approach to Transformation

Introducing the Bomb Pop Update in Restaurant Tycoon 2. For two weeks, Roblox restaurant owners could serve virtual bomb pops to their hungry customers and earn limited edition gear to upgrade their restaurants – turning Restaurant Tycoon into a red, white, and blue bonanza, and making restaurant owners within the platform our very own virtual brand ambassadors, interior designers, and architects. In the process, using our limited-edition items, players completely transformed the restaurants into gaming lounges, family style buffets, and even high-end beach clubs with an average of 28 minutes engaged across the experience.  

Our Impact

Time spent was 133% beyond Roblox branded experience benchmarks. We also had over 500,000 unique users enlist as virtual bomb pop distributors who sold over 48.5 million bomb pops, making it the most sold food item in Roblox ever. Even more significantly, sales in the real world were also up with an immediate 28.6% increase. We proved that the virtual world can spur epic real world business results.

Wondering where to begin with immersive experience implementation in your organization?

Email Beth Sidhu, Chief Brand and Communications Officer at Stagwell, to discuss how we can support your organization’s digital goals.