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Contact:

Ben Allanson ir@stagwellglobal.com 

NEW YORK, Nov. 25, 2024 /PRNewswire/ — Stagwell Inc. (NASDAQ: STGW), the challenger network built to transform marketing, today announced its participation in several upcoming investor conferences throughout December 2024. 

• December 3: Wells Fargo TMT Summit – Stagwell management will participate in a fireside chat at 3pm PT and 1×1 meetings throughout the day in Los Angeles.
• December 4: UBS Global Technology Conference – Stagwell management will host 1×1 meetings throughout the day in Phoenix.
• December 9: UBS Global Media Conference — Stagwell management will host 1×1 meetings throughout the day in New York.

Visit this page to view upcoming investor events and programming from Stagwell. Reach out to ir@stagwellglobal.com with questions.

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 specialists in 34+ countries are unified under a single purpose: to drive effectiveness and improve business results for their clients.  www.stagwellglobal.com.

IR Contact:
Ben Allanson
ir@stagwellglobal.com   

Originally Released On

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Contact:

Maggie Axford

pr@stagwellglobal.com

A deeper look at each of the new affiliate’s capabilities:

Blue Horse – Malaysia

Blue Horse Digital Marketing is a technology-led, highly personal answer to the ever-growing performance marketing needs of Southeast Asia. Blue Horse Digital Marketing provides specialized solutions that assist in maximizing sustainable profitability while automating day-to-day operations to a wide variety of consumer industries, including Wellness Services, Consumer Goods, and E-commerce centered activities on marketplace platforms, i.e. Shopee, Lazada, TikTok Shop, etc.

“Blue Horse Digital Marketing thrives on the leanness of our operations to provide highly personal services in a massively growing digital economy. We are very excited to be a Stagwell affiliate partner and hope to leverage on their support towards creating more effective and holistic offerings to our current and potential clientele,” said Nicholas Wong, Co-Founder and Director of Blue Horse.

DashDigital – South Africa

DashDigital is a specialized design studio that helps brands connect with their audience, using in-depth research, rigorous strategy, well-built technology and responsive design. DashDigital serves a global client base, building beautiful digital products and impactful web experiences for brands, organizations and agencies alike.

“At DashDigital, collaboration is everything, so the opportunity to join Stagwell’s affiliate program is huge for us,” says Rogan Jansen, co-founder and creative director at DashDigital. “We can’t wait to harness the immense resources and possibilities the partnership will afford us, continuing on our mission to push the boundaries of design and encourage our clients to do the same.”  

About Stagwell

Stagwell (NASDAQ: STGW) is the network created to transform marketing. We deliver creative performance at scale for the world’s most ambitious brands, connecting culture-moving creativity with cutting-edge technology to harmonize the art and science of marketing. Led by entrepreneurs, our more than 13,000 experts in more than 34 countries are united under a single purpose: to generate effectiveness and improve business results for their clients. Join us at www.stagwellglobal.com.

Media contact:

Maggie Axford
PR@stagwellglobal.com

Originally Released On

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Contact:
Carrie Hsu
pr@stagwellglobal.com 

Originally Released On

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Contact:

Madison Wick

pr@stagwellglobal.com 

Survey fielded after the U.S. presidential election reveals 57% of U.S. adults say misinformation and “fake news” are key issues impacting trust in news media

Notwithstanding, 71% of Americans believe companies should advertise in news media, viewing it as essential support for journalism

WASHINGTON, Nov. 15, 2024 /PRNewswire/ — 65% of Americans say advertising in news is important, though trust challenges remain, according to a survey Stagwell (NASDAQ: STGW) released on November 14 as part of its Future of News initiative. The post-election flash poll conducted by Stagwell and its research consultancy HarrisX, which surveyed 1,510 U.S. adults between November 11-12, reveals Americans’ perspectives on the media landscape, factors influencing their trust in news media and public support for brand advertising in news.

Key findings from the post-election survey include:

• Trust and Perception: 65% of U.S. adults say it’s important for companies to advertise in news, and 66% have a more positive perception of companies that do so.
• Preferred News Sources: Local (73%) and broadcast TV (67%), newspapers (66%), and radio (65%) are the top trusted news sources.
• Misinformation’s Role in Breaking Trust: The main issues impacting Americans’ trust in news media are misinformation and fake news (57%), poor separation between news and opinion content (46%), and sensationalism and bias (44%).
• CTA for Younger Generations: 56% of Americans say it’s important for younger generations to watch the news more than they currently do.
• Factors to Increase Trust in News: To build trust in news media, Americans want more emphasis on fact-checking (58%), clear separation between news and opinion content (58%) and a balanced perspective on all issues (54%).

This study follows Stagwell’s U.S. and U.K. News Advertising studies released earlier this year which reveal ads placed adjacent to news topics such as politics, inflation, and crime perform as effectively as those placed next to business, entertainment, and sports stories.

“Americans continue to recognize the importance of news and the importance of advertisers supporting the news industry,” said Mark Penn, Chairman and CEO of Stagwell. “But all is not completely rosy as questions about trust, particularly among Republicans, continue to dog the industry.”

These findings highlight the continued importance of news media as a platform for brand engagement. Stagwell is committed to initiating data-driven discussions with advertisers about their investment in news. This topic and more were discussed at the Future of News post-election summit in Washington on November 14.

To learn more and get involved, please contact futureofnews@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 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.

About HarrisX
HarrisX is a leading global research consultancy that regularly conducts major market research, public policy polling and social science studies and consulting engagements in more than 40 countries around the world. It is a proud member of Stagwell Global (STGW). Learn more at www.harrisx.com.

Contact
Madison Wick
PR@stagwellglobal.com

ABOUT THE AGENCIES BEHIND THE WORK

Instrument is a technology-led brand, product, & marketing agency. Instrument uses the power of design and technology to help brands unlock their full potential.

Frontiers in Focus

Want to explore more of the frontiers of marketing? View more of our work on the cutting edge of AI and immersive brand experiences here. 

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How can a large global B2B enterprise strengthen its position in an international market while establishing trust and credibility as a local player? When Salesforce, a leading global CRM platform, set its sights on reaching mid-market companies in India, it called upon Instrument to help shift perceptions and demonstrate how Salesforce meets the diverse needs of Indian businesses of all sizes and stages of growth. 

To effectively reach mid-market businesses, Instrument crafted a made-for-India brand campaign rooted in the traditional Salesforce brand while tailoring it to the unique needs of the market.  The Instrument team used generative AI to streamline production and get market expert feedback before bringing ideas to life using real humans. The result? The campaign used a vibrant color palette, traditional patterns, and featured real Indian customers, making it relatable and allowing the target audience to easily identify with the brand. 

Our Approach to Transformation

To properly depict Salesforce’s brand identity while incorporating elements authentic to India, Instrument relied on generative AI as a creative partner. The tool allowed the team to create unique assets quickly and get feedback across time zones and from in-market experts. 

Instrument utilized generative AI tools such as Midjourney, Photoshop Beta and Topaz Lab’s Gigapixel to concept and visualize the final product before budget allocation — AI generated placeholder images, allowed the team to experiment with talent, poses, and styling ahead of the shoot. This approach also enabled faster feedback and approval from clients, making the most of their time with real talent. Instrument relied heavily on local market partners to provide a culturally informed lens, but AI-generated drafts gave clients real imagery to react and workshop with the team.  

Our Impact

The campaign beat industry benchmarks and drove an uptick in traffic to the campaign landing page and case studies. A closer look at the numbers: 

• 237 million campaign impressions 
• 758,000 clicks (2.5x industry benchmark) 
• +16ppt unaided awareness 
• +12ppt brand advertising recall 
• +10ppt brand attributes 
• +7ppt familiarity and favorability 

Wondering where to begin with AI 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. 

ABOUT THE AGENCIES BEHIND THE WORK

Code and Theory works with a best-in-class, diverse, global client base. At the core of our work sits the strategy and analytics teams, which focuses on consumer-first, omni-channel solutions throughout the entire customer journey.

Explore the entire Big Board case study here

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The Ultimate Data Storytelling Platform

NBC’s Big Board processes over 10 million data points from 16 years of electoral history, transforming complex data into clear, actionable insights live on air. Working in tandem with the NBC team, Code and Theory built the Big Board to be both a co-host and a trusted source of truth, ensuring accuracy, timeliness and ease of use as the news unfolds. Its impact has been tangible for NBC and its audience, driving consistently higher viewership across linear and digital streaming channels.

Precision-tested Technology

The Big Board embodies NBC’s commitment to accuracy with its state-of-the-art technology. Code and Theory leveraged AI to simulate millions of real-time election scenarios, built 8 unique apps from scratch—all managed in a single codebase—and dedicated thousands of hours to unifying complex mapping technology for broadcast TV distribution and digital.

The result is an experience without blemish in more than 10,000 broadcast hours.

A Co-host and a Dance Partner — All In One

The Big Board is the perfect “dance partner” for hosts during election coverage. Code and Theory researched how NBC’s hosts interacted with data and behaved under stress. Today, the Big Board anticipates the host’s needs as a presenter to better translate complex election data into an understandable, interactive visual spectacle as the news unfolds.

Fueling the Nation’s Need for Speed

Real-time election results from over 16,000 geographies in the U.S. concurrently — delivered in just 4 seconds. The Big Board has over 100FPS rendering power, making it the fastest on-air data-mapping tool in production today. Advanced caching strategies and system integrations enable swift data processing, instantaneously keeping viewers informed and engaged.

Technology Built for Speed and Scale

Code and Theory’s Engineering team developed the Big Board’s infrastructure to efficiently handle approximately 56 datasets for various elections since 2008, encompassing core race types like presidential, house, senate, and gubernatorial races and additional race types such as Lt. Gov, Secretary of State, and Ballot Measures.

The agency built a scalable architecture that ensures customization across NBC’s top platforms in English and Spanish, including two networks (NBC and MSNBC), various TV shows (Today Show, Meet the Press, Telemundo, Morning Joe, The Rachel Maddow Show), NBC News Now’s YouTube channel and the “Kornacki Cam” YouTube stream.

It took nearly a year of trial and error to achieve zero errors.

A Legacy of Impact

The National Broadcasting Company (NBC) launched on November 15, 1926, making it the oldest broadcasting network in the United States. Almost 100 years later, NBC News is breaking barriers, tapping into innovative technology and cutting-edge design to reimagine the Big Board and political coverage at large.

Impact & Key Takeaways

Impact: 

• :04 Seconds to deliver over 10M data points in real-time from anywhere
• 16 years of elections available during broadcast across multiple networks at once
• 8 Big Board apps, all built and managed in a single codebase
• The fastest on-air data-mapping tool in production, with over 100FPS rendering
• 4X Winner in New York Festival Awards across Innovation, Technological Innovation, Data Storytelling and Data Innovation

Key Takeaways: 

• Set a new standard in data-storytelling, processing and election coverage
• Delivered error-free data that’s reinstilling trust in election reporting
• Developed a flexible design system to scale across NBC’s broadcast and digital properties
• Built technical infrastructure prioritizing advanced data modeling, system integration, and security safeguards

Wondering where to begin with AI 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. 

ABOUT THE AGENCIES BEHIND THE WORK

Code and Theory works with a best-in-class, diverse, global client base. At the core of our work sits the strategy and analytics teams, which focuses on consumer-first, omni-channel solutions throughout the entire customer journey.

Explore the entire ContextLens case study here

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In a media and publishing landscape saturated with data, readers often find polling and election insights challenging to interpret, especially in isolation. With two decades of heritage transforming newsrooms, Stagwell’s Code and Theory recognized that empowering readers with context could turn data points into compelling narratives.

ContextLens addresses this by using generative AI to identify the story behind the numbers, guiding users to more meaningful insights. Code and Theory conceived, built, and launched this tool in the lead-up to the 2024 election cycle in partnership with Real Clear Politics, where understanding trends and shifts is essential for grasping the bigger picture of public opinion.

AI-Powered Anticipatory Design

ContextLens is a groundbreaking anticipatory design system built by Code and Theory, leveraging generative AI to transform how readers interact with data on news sites. Unlike typical AI tools, ContextLens doesn’t just respond to commands — it understands the content users are viewing and intuitively generates contextual visualizations. This approach brings data-driven insights directly to the user’s screen, streamlining the information-gathering process and making digital news experiences more responsive, informative, and visually engaging.

RealClearPolitics — Transformed

For RealClearPolitics’ RealClearPolling site, ContextLens is a game-changer. Instead of navigating multiple pages or manually searching for related content, users now have contextual insights instantly available. If a user is viewing polling data, ContextLens suggests relevant visuals — such as recent polling shifts or battleground state insights — tailored to their immediate interests. This provides RealClearPolitics with a tangible advantage, offering readers a richer, more interactive experience while positioning the site as a leader in digital political analysis.

Signaling A New Era for AI and Publishing

Beyond enhancing user experience, ContextLens opens up new revenue streams, allowing publishers to monetize through non-disruptive, contextual advertising embedded within the tool. For media companies, this is an opportunity to leverage AI to both engage audiences and drive revenue. ContextLens goes beyond traditional news delivery by shifting from one-dimensional, static news to a visually rich experience where AI enhances understanding, making real-time, data-driven journalism more accessible.

Key Takeaways

• Built and launched Context Lens, an anticipatory design system leveraging generative AI to transform how readers interact with data on news sites.
• Instead of navigating multiple pages or manually searching for related content, users now have contextual insights instantly available, powered by AI.
• Less than 3 months from concept and design to build, testing and launch.

Wondering where to begin with AI 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. 

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:

PARENTS GIVE AI FAILING GRADE

Parents are not fans of students using AI to complete their homework, based on the Harris Poll’s latest report on the tech industry.

• Only a third (36%) of adults think the use of generative AI tools for schoolwork has a positive impact on children’s learning experience (grades K-12).
• 79% say children are more likely than adults to struggle to identify misinformation created by generative AI tools.
• Regarding technology overall, only 39% of U.S. adults trust businesses to be responsible with handling their personal information.
• 28% have a worse opinion of an organization if it is involved in a data security event.
• 29% avoid working with organizations that have been involved in a known data security event.

AUTONOMOUS VEHICLES DIVIDE US

U.S. drivers are still split on whether they’re ready to take a ride in an autonomous vehicle, according to the Harris Poll’s annual AutoTECHCAST report, which collects and analyzes consumer insights on advanced automotive technologies and features.

• 51% of Americans would trust an autonomous vehicle (AV) today, and the same number would be willing to buy one.
• AV trust is highest among Gen Z and young Millennials (70%) and lowest among Boomers (30%).
• While only 6% have experienced fully autonomous vehicles, 79% said they were somewhat or much more comfortable with an AV after trying one.
• 34% have used driver assistance features, and 24% have driven partially autonomous vehicles.
• Looking at other new auto technology, 48% of Gen Z and young Millennials believe alcohol detection systems should be mandatory in vehicles (compared with 32% of Gen X and 20% of Boomers).
• Most highly demanded new auto tech: surround-car cameras (desired by 55.7%), low-speed collision avoidance (55.4%) and wireless mobile charging (54.3%).
• Still not in high demand: electric vehicles (desired by 31.9%, down from 33.6% a year ago), fuel cell vehicles (27.9%, down from 30.3%) and in-car payment systems (27.7%, down from 29.9%).

TOO MANY ADS

Consumers have reached the tipping point on advertisements that interrupt viewing and streaming – especially ads with the same message, according to our Harris Poll research with AD-ID.

• 49% have skipped a purchase from a brand due to repetitive ads during their viewing.
• 61% say they are less likely to buy products when inundated with advertisements.
• 59% say repeatedly seeing the same ads hurts their viewing experience.
• 3 in 4 consumers say they would like to see ads targeted at their interests.
• 33% don’t mind watching relevant ads.

ICYMI:

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

• Mark Penn Finds the Many Ties Between Politics and Marketing
• 5 Stagwell takeaways from the ANA Masters of Marketing event
• Hiring managers are fielding questions about DEI and want employers to take a stand, survey finds
• Travel Experts Urge Early Booking for Holiday Flights Amid Price Hike
• Left on the table, remembered in our hearts: Heineken’s winning campaign

Associated Materials:

Download schedules here

Originally Released On

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Link to Webcast

Watch Now

CONTACT:

IR Contact:
Ben Allanson
ir@stagwellglobal.com

PR Contact:
Beth Sidhu
pr@stagwellglobal.com

Q3 YoY Revenue Growth of 15%, With 25% Growth in Digital Transformation

Q3 YoY Net Revenue Growth of 8%, Organic Net Revenue Growth of 8%, Digital Transformation Net Revenue Growth of 18%

Q3 Net Income Attributable to Stagwell Inc. Common Shareholders of $3 million

Q3 Adjusted EBITDA of $111 million; Adjusted EBITDA Margin of 19%

Q3 EPS of $0.03; Adjusted EPS of $0.22

Seventh Consecutive Quarter of Record LTM Net New Business

Net New Business of $101 million in Q3; LTM Net New Business of $345 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%

Company Announces $125 Million Increase in Stock Repurchase Program

New York, NY, November 7, 2024 (NASDAQ: STGW) – Stagwell Inc. (“Stagwell”) today announced financial results for the three and nine months ended September 30, 2024.

THIRD QUARTER RESULTS:

• Q3 Revenue of $711 million, an increase of 15% versus the prior year period; YTD Revenue of $2.1 billion, an increase of 10% versus the prior year period
• Q3 Net Revenue of $580 million, an increase of 8% versus the prior year period; YTD Net Revenue of $1.7 billion, an increase of 4% versus the prior year period
• Q3 Organic Net Revenue increased 8% versus the prior year period; YTD Organic Net Revenue increased 4% versus the prior year period
• Q3 Net Income attributable to Stagwell Inc. Common Shareholders of $3 million versus $1 million in the prior year period; YTD Net Loss attributable to Stagwell Inc. Common Shareholders of $1 million versus $1 million in the prior year period
• Q3 Adjusted EBITDA of $111 million, an increase of 9% versus the prior year period; YTD Adjusted EBITDA of $288 million, an increase of 8% versus the prior year period
• Q3 Adjusted EBITDA Margin of 19% on net revenue; YTD Adjusted EBITDA Margin of 17% on net revenue
• Q3 Earnings Per Share Attributable to Stagwell Inc. Common Shareholders of $0.03 versus $0.00 in the prior year period; YTD Earnings Per Share Attributable to Stagwell Inc. Common Shareholders of $(0.01) versus $(0.01) in the prior year period
• Q3 Adjusted Earnings Per Share attributable to Stagwell Inc. Common Shareholders of $0.22 versus $0.18 in the prior year period; YTD Adjusted Earnings Per Share attributable to Stagwell Inc. Common Shareholders of $0.52 versus $0.45 in the prior year period
• Net new business of $101 million in the third quarter, last twelve-month net new business of $345 million

See “Non-GAAP Financial Measures” below for explanations and reconciliations of the Company’s non-GAAP financial measures.

Mark Penn, Chairman and CEO, said, “Stagwell delivered 15% year-over-year revenue growth in the third quarter, led by a return to double-digit growth from our Digital Transformation capability as AI has required companies to rethink the ways they engage with consumers. On the heels of our single largest deal to date with Adobe and expanded relationships with leading brands like United and Microsoft, net new business of over $100 million in the third quarter brings our last twelve-month net new business figure to $345 million, another record for Stagwell.

“New business momentum, robust performance from Digital Transformation, and the culmination of a political season that broke fundraising records, gives us confidence that our vision is resonating with customers, and sets the stage for a strong close to H2,” added Penn.

Frank Lanuto, Chief Financial Officer, commented: “Stagwell posted growth across all our principal capabilities in the third quarter, as the inflection we anticipated played out. Driven by double-digit growth in both Digital Transformation and the Stagwell Marketing Cloud, we delivered third quarter revenue of $711 million. Simultaneously, we grew our adjusted EBITDA to $111 million, representing a 19% margin on net revenue, an improvement of approximately 15 bps over the prior year. These results give us confidence to reiterate our full-year guidance.”

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.

Stock Repurchase Program

On November 6, 2024, the Board of Directors authorized an extension and a $125,000,000 increase in the size of Stagwell’s previously approved stock repurchase program (the “Repurchase Program”). Under the Repurchase Program, as amended, Stagwell may repurchase up to an aggregate of $375,000,000 of shares of its outstanding Class A common stock, with any previous purchases under the Repurchase Program continuing to count against that limit. The Repurchase Program will expire on November 6, 2027.

Video Webcast

Management will host a video webcast on Thursday, November 7, 2024, at 8:30 a.m. (ET) to discuss results for Stagwell Inc. for the three and nine months ended September 30, 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 Net Revenue: “Organic net revenue growth” and “Organic net 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 and completed 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,” “develop,” “estimate,” “expect,” “focus,” “forecast,” “foresee,” “future,” “goal,” “guidance,” “in development,” “intend,” “likely,” “look,” “maintain,” “may,” “ongoing,” “opportunity,” “outlook,” “plan,” “possible,” “potential,” “predict,” “probable,” “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;
• 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;
• the Company’s ability to identify, complete and integrate acquisitions that complement and expand the Company’s business capabilities and realize cost savings, synergies or other anticipated benefits of newly acquired businesses, or that even if realized, such benefits may take longer to realize than expected;
• the Company’s ability to identify and complete divestitures and to achieve the anticipated benefits therefrom;
• the Company’s ability to develop products incorporating new technologies, including augmented reality, artificial intelligence, and virtual reality, and realize benefits from such products;
• the Company’s use of artificial intelligence, including generative artificial intelligence;
• 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 that 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, including the risk that the Company’s internal controls will fail to detect misstatements in its financial statements;
• the Company’s ability to accurately forecast its future financial performance and provide accurate guidance;
• 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 the Middle East), 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

PR Newswire

Contact:

Kenneth Hein
kenneth.hein@codeandtheory.com 

Unlike generic AI tools that only focus on text input and output responses, ContextLens leverages generative AI to understand what information you are looking at on a web page. It then anticipates other content you may be interested in and creates a dynamic visual representation without making you leave the page. 

This generative AI tool functions by reading the site’s metadata structures to understand the “context” the user is reading and provides a “lens” to go deeper into content via AI prompts (either pre-populated or freeform). 

The independent, nonpartisan media company RealClearPolitics (RCP) has selected its RealClearPolling website to be the first to employ this powerful new tool. RealClearPolling offers an aggregated, unbiased look at the dynamics of the presidential, Senate, House, and statewide races during this unprecedented 2024 election cycle. RealClearPolling is an extension of the RCP family, dedicated to delivering the most comprehensive, engaging look at U.S. election polls and public opinion surveys.

Here’s how it works on RealClearPolling: The ContextLens is a purple bar in the bottom corner of a web page. Based on what you are looking at on the page, it anticipates what related content you may be interested in and auto-prompts suggestions. The user can engage with it right there on the page. The results expand by dynamically creating a graphic to give you more context. 

For example, if a user looks at the “Electoral College: Top Battlegrounds” chart on RCP’s home page, the ContextLens will suggest “Explore Electoral College.” When a user clicks on it, three related options pop up: “Recent changes in support,” “Who leads in key states,” and “Electoral College forecast.” 

A graphic representation of the current data is generated once a user clicks on one of the topics. Users can also “Ask a question” to find other information.

Key features include:

• Contextual Understanding: The AI interprets the data users view and predicts where additional context is needed.
• Generative Visuals: Instead of overwhelming users with paragraphs of text, the system designs dynamic visuals to illustrate the point, offering more precise insights.
• Seamless Integration: Users don’t need to leave the page they are looking at. The system provides expanded context right there, reducing disruption.

The new tool has many advantages: It gives users an unparalleled ability to explore and understand complex information without being overwhelmed. It allows sites with massive amounts of data to streamline it and represent it clearly. It also provides publishers with a new location to sell advertising inventory. 

The ContextLens is currently in beta and available to other publishers.

RCP co-founder and executive editor Tom Bevan says: “For nearly a quarter of a century, RealClearPolitics has served as an innovator and an unbiased source of accurate information. ContextLens allows our users to pull from our years of data to form a complete picture of their topics of interest. Technology is breathing new life into the powerful data and reporting we are dedicated to providing. This marks a bold step in how people interact with complex information on the web.”

Dan Gardner, co-founder of Code and Theory, says: “Polling is a perfect application for our first use of this technology. It is often confusing and hard to interpret. ContextLens simplifies this by dynamically designing visual elements based on the users’ needs and the context in which they view them. It’s the first anticipatory design system that intuitively creates elements on demand, giving more insight and clarity. Typical AI use cases have been limited to just text responses. We know people are also visual. This is the next step forward in how AI can be used in publishing to enhance reader experience, instead of solely focusing on AI as only an efficiency tool. ContextLens offers a glimpse into the future of AI and design, where context, anticipation and visual interpretation come together to create a fluid user experience.”

Code and Theory has had a historic year when it comes to shaping how political information is conveyed. In addition to the launch of the ContextLens, it created Steve Kornacki’s “Big Board.” Kornacki uses the Big Board daily to visualize and explain complex polling data live on the air for millions. Code and Theory also relaunched the Minnesota Star Tribune as the heart and voice of the North, a week before Vice Presidential nominee Tim Walz was announced. The new site performed at the highest level during the biggest traffic day in the history of the site. 

Code and Theory has launched nearly 200 newsrooms throughout its 23-year history. The new TechCrunch, which debuted this month, and Ringier’s Blick, launched last month, are just the latest examples.

About Code and Theory Network
Code and Theory Network is the only network with a balance of 50% creative and 50% engineers at scale. The technology-first group within Stagwell is built to partner with businesses to navigate the complexity of changing consumer behaviors, emerging technologies and AI. With a global footprint and the capabilities to work across the entire consumer journey, we crave the hardest problems to solve. The network includes the flagship agency Code and Theory as well as Kettle, instrument, Left Field Labs, Mediacurrent, Rhythm and Truelogic. Code and Theory clients include Amazon, JPMorganChase, Microsoft, MSNBC, NFL, Pfizer and Yeti. For more, visit codeandtheory.com

About RealClearPolitics
Since its founding in 2000, RealClearPolitics has become the most trusted nonpartisan platform for political news. Washington insiders and interested outside-the-Beltway citizens alike rely on RCP as the authoritative source for reporting, commentary, and analysis on campaigns and elections, and they return for its presentation of all sides of pressing public policy issues coming to the fore in 2024.

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

Contact:
Kenneth Hein
kenneth.hein@codeandtheory.com