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FEATURING

Record first quarter financial results driven by high-growth digital transformation, consumer insights & strategy, and large client wins in media

• GAAP Revenue grew 254.7% in 1Q and 31.5% on a Pro Forma basis

• Pro-Forma Organic Net Revenue grew 23.6% in 1Q

• Net Income of $33.6M in 1Q or Diluted EPS of $0.10 per share

• Net Income attributable to Stagwell of $12.7M in 1Q

• Adjusted EBITDA of $101.4M in 1Q representing a 19.3% margin on Net Revenue

• Record first quarter Net New Business of $54M

• 56% of 1Q Net Revenue came from high-growth digital services

• Reaffirms 2022 full-year outlook

New York, NY, May 6, 2022 (NASDAQ: STGW) – Stagwell Inc. (“Stagwell”) today announced financial results for the three months ended March 31, 2022.

FIRST QUARTER HIGHLIGHTS:

• Revenue of $642.9 million, an increase of 254.7% versus the prior year period.
• Pro Forma GAAP revenue growth of 31.5% versus the prior year period and 30.2% ex-Advocacy.
• First quarter net revenue of $526.6 million, an increase of 233.2% versus the prior period.
• Pro Forma net revenue growth of 22.8% versus the prior year period and 22.3% ex-Advocacy.
• Pro Forma organic net revenue growth of 23.6% versus the prior year period and 23.2% ex-Advocacy.
• First quarter net income of $33.6 million versus $4.6 million in the prior year period.
• First quarter net income attributable to Stagwell Inc. common shareholders of $12.7 million versus $4.4 million in the prior year period.
• First quarter adjusted EBITDA of $101.4 million, an increase of 325.4% versus the prior year period.
• Pro Forma adjusted EBITDA growth of 33.8% versus the prior period and 32.4% ex-Advocacy.
• First quarter Adjusted EBITDA Margin of 19.3% of net revenue.
• Net New Business wins totaled $54 million in the quarter.

“While the GDP may be contracting, Stagwell is growing strongly. The merger has spurred revenue synergies immediately apparent in the big wins, significant industry awards, and integration of talent and technology across our network,” said Mark Penn, Chairman and Chief Executive Officer of Stagwell. “We grew first quarter net revenue 24% versus the prior year, more than double the pace of legacy holding companies, and grew Adjusted EBITDA at an even faster rate of 34% year-over-year. We also made a key e-commerce acquisition in April with Brand New Galaxy, which connects to our media and digital transformation offerings and provides increased scale in Europe. Our record quarter continues to build on our post-combination track record of delivering growth, free-cash-flow, and growing profitability.”

Frank Lanuto, Chief Financial Officer, commented: “The Company reported strong first quarter results with GAAP revenue of $643 million, net revenue of $527 million and Adjusted EBITDA of $101 million. Organic pro forma net revenue increased 24% over the prior period quarter and also increased sequentially in a typically smaller seasonal quarter. Adjusted EBITDA margin expanded 160 bps year-over-year on a Pro Forma basis to 19.3% of net revenue as the Company began to see the benefits of expected cost synergies.”

Financial Outlook

2022 financial guidance is as follows:

• Pro Forma Organic Net Revenue growth of 18% – 22%

• Pro Forma Organic Net Revenue growth ex-Advocacy of 13% – 17%

• Adjusted EBITDA of $450 million – $480 million, excluding the contribution from 2022 acquisitions

• Pro Forma Free Cash Flow growth of approximately 30%

• Guidance assumes no impact from foreign exchange, acquisitions or dispositions.

Conference Call

Management will host a video webcast and conference call on Friday, May 6, 2022, at 8:30 a.m. (ET) to discuss results for Stagwell Inc. for the three months ended March 31, 2022.  The video webcast will be accessible at https://stagwellq12022earnings.open-exchange.net/. An investor presentation has been posted on our website at www.stagwellglobal.com and may be referred to during the conference call.

A recording of the conference call will be accessible one hour after the call 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 10,000+ 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.

Basis of Presentation

The acquisition of MDC Partners (MDC) by Stagwell Marketing Group (SMG) was completed on August 2, 2021. The results of MDC are included within the Statements of Operations for the period beginning on the date of the acquisition through the end of the respective period presented and the results of SMG are included for the entirety of all periods presented.

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:

Pro Forma Results: The Pro Forma amounts presented for each period were prepared by combining the historical standalone statements of operations for each of legacy MDC and SMG. The unaudited pro forma results are provided for illustrative purposes only and do not purport to represent what the actual consolidated results of operations or consolidated financial condition would have been had the combination actually occurred on the date indicated, nor do they purport to project the future consolidated results of operations or consolidated financial condition for any future period or as of any future date. The Company has excluded a quantitative reconciliation of adjusted Pro Forma EBITDA to net income under the “unreasonable efforts” exception in Item 10(e)(1)(i)(B) of Regulation S-K.

(1) Organic Revenue: “Organic revenue growth” and “organic revenue decline” refer to the positive or negative results, respectively, of subtracting both the foreign exchange and acquisition (disposition) components from total revenue growth. The acquisition (disposition) component is calculated by aggregating prior period revenue for any acquired businesses, less the prior period revenue of any businesses that were disposed of during the current period. The organic revenue growth (decline) component reflects the constant currency impact of (a) the change in revenue of the partner firms that the Company has held throughout each of the comparable periods presented, and (b) “non-GAAP acquisitions (dispositions), net”. Non-GAAP acquisitions (dispositions), net consists of (i) for acquisitions during the current year, the revenue effect from such acquisition as if the acquisition had been owned during the equivalent period in the prior year and (ii) for acquisitions during the previous year, the revenue effect from such acquisitions as if they had been owned during that entire year (or same period as the current reportable period), taking into account their respective pre-acquisition revenues for the applicable periods, and (iii) for dispositions, the revenue effect from such disposition as if they had been disposed of during the equivalent period in the prior year.

(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) 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.

(5) Financial Guidance:  The Company provides guidance on a non-GAAP basis as it cannot predict certain elements which are included in reported GAAP results.

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

This press release contains forward-looking statements. Statements in this press release that are not historical facts, including without limitation the information under the heading “Financial Outlook” and statements about the Company’s beliefs and expectations, earnings (loss) guidance, recent business and economic trends, potential acquisitions, and estimates of amounts for redeemable noncontrolling interests and deferred acquisition consideration, constitute forward-looking statements. Words such as “estimates”, “expects”, “contemplates”, “will”, “anticipates”, “projects”, “plans”, “intends”, “believes”, “forecasts”, “may”, “should”, and variations of such words or similar expressions are intended to identify forward-looking statements. These 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.  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.

Some of the factors that could materially and adversely affect our business, financial condition, results of operations and cash flows 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;
• the effects of the coronavirus pandemic (“COVID-19”), and the impact on the economy and demand for the Company’s services, which may precipitate or exacerbate other risks and uncertainties;
• an inability to realize expected benefits of the combination of the Company’s business with the business of MDC (the “Business Combination” and, together with the related transactions, the “Transactions”);
• adverse tax consequences in connection with the Transactions for the Company, its operations and its shareholders, that may differ from the expectations of the Company, including that future changes in tax law, potential increases to corporate tax rates in the United States and disagreements with the tax authorities on the Company’s determination of value and computations of its attributes may result in increased tax costs;
• the occurrence of material Canadian federal income tax (including material “emigration tax”) as a result of the Transactions;
• 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 which complement and expand the Company’s business capabilities;
• the Company’s 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 conflict between Russia and Ukraine), 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 2021 Form 10-K, filed with the Securities and Exchange Commission (the “SEC”) on March 17, 2022, 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

CONTACT

Beth Sidhu
pr@stagwellglobal.com
202-423-4414

NEW YORK – May 3, 2022 – Stagwell (NASDAQ: STGW), the challenger network built to transform marketing, today released its 2021 Annual Report, highlighting substantial growth propelled by a uniquely high concentration of digital capabilities; strategic investments and acquisitions supporting digital and global growth; and a collaborative organizational model designed to meet the demands of larger clients in need of true integrated marketing services. Download the report here.

“In a digital economy, every screen is a canvas, every experience a data collection point, and every platform a new place for brand interaction. Brands deserve a digital-first alternative marketing network that drives business growth by connecting culture-moving creativity with leading-edge technology,” said Stagwell Chairman and CEO Mark Penn. “We strongly believe the steps we have taken to align Stagwell’s operations to support this transformation created a lasting platform for growth and shareholder value.”

Stagwell has had breakthrough performance since the combination with MDC Partners Inc., forming Stagwell Inc. in August 2021.  This includes $2 billion in combined pro forma revenue for 2021. Penn’s annual CEO letter discusses Stagwell’s 2021 financial performance in the context of five transformative approaches to global marketing services delivery:

• Digital transformation and innovation, helping clients reposition their enterprises for growth in the new digital economy. Innovation shops Code and Theory, GALE, Instrument, and YML spotlight path-breaking work for Amazon Ads, MilkPEP, Google TV, Polestar and more within the report.
• Scaling creative performance for modern brands, bringing world-class creativity and modern media together to drive powerful campaign results. Work from 72andSunny for Tinder/Match Group; Anomaly for Expedia; Assembly for Nike; Doner for CUE Health; Forsman & Bodenfors for Polestar; and more illustrate ways Stagwell unleashes creative effectiveness for the modern marketer.
• Building integrated marketing solutions that align the right mix of core marketing capabilities and specialist expertise for ever-more-complex clients, exemplified in Sloane & Co., KWT Global, TEAM Enterprises, and GALE’s collaborative marketing efforts supporting Hertz’s vision for the future of electric vehicles.
• Agile global expansion, fueled by Stagwell’s Affiliate Program spanning 50+ partners across Latin America, the Middle East, Africa, Asia-Pacific, and Eastern Europe, and investments in market leaders Instrument and Goodstuff.
• Product innovation through the Stagwell Marketing Cloud, a proprietary product suite of SaaS and DaaS solutions that leverage artificial intelligence, machine learning, and mixed-reality business transformation for in-house marketers. SMC’s services span audience segmentation, influencer marketing, public relations, immersive experiences, and brand insights. The newest platform in the Cloud, ARound, helps brands create, manage, and scale augmented reality experiences for live events and retail.

To read the full report, please visit Stagwell’s website. Viewers can use QR codes throughout the document to explore referenced case studies.

About 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 10,000+ 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.

PR Contact:
Beth Sidhu
pr@stagwellglobal.com
+1. 202.423.4414

IR Contact:
Michaela Pewarski
ir@stagwellglobal.com
646-429-1812

Originally released on

CONTACTS

PR Contact
Beth Sidhu
pr@stagwellglobal.com
202-423-4414

IR Contact

Michaela Pewarski

NEW YORK, NEW YORK, APRIL 20, 2022 – Stagwell (NASDAQ: STGW) announced today the Company will report financial results for the three months ended March 31, 2022 on Friday, May 6, 2022, before the market open.

Stagwell will host a video webcast to review those results the same day at 8:30 AM (ET). To register and view the webcast, visit this link.

A replay of the webcast will be available following the event at Stagwell’s website, https://www.stagwellglobal.com/investors/.

About 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 10,000+ 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.

IR Contact: 
Michaela Pewarski
ir@stagwellglobal.com
646-429-1812

PR Contact: 
Beth Sidhu
pr@stagwellglobal.com
202-423-4414

Originally released on

CONTACT:

Beth Sidhu
pr@stagwellglobal
(202) 423-4414

New global office led by Vinicius Reis will anchor Stagwell’s investment in Latin America, connecting best-in-class services in the region for accelerated growth  

New York, New York – April 13, 2022 – Stagwell (NASDAQ: STGW), the challenger network built to transform marketing, today announced the opening of a new global office in Brazil to accelerate the company’s growth in Latin America and drive collaboration across its local agencies and affiliate partners. Stagwell Brazil is the second international office the company has opened in 2022; in January, Stagwell launched an office in Singapore to accommodate its growth throughout Asia-Pacific.  

Vinicius Reis will lead the office as President, Stagwell Brazil, alongside CCO & Partner CPB Brazil Andre Kassu and CCO & Partner CPB Brazil Marcos Medeiros. They will work to drive growth and bolster capabilities to serve regional and global clients seeking to reach consumers in the Latin American market. Reis will also continue to lead operations at Stagwell agency CP+B Brazil where he, Marcos, and Andre, have built the agency into a regional force for blue-chip clip engagements with Stella Artois, AB InBev, McCain, Amazon, Activision, Blizzard, Bauducco, PicPay, 99 (DiDi), Diageo, and others. Prior to CP+B Brazil, Reis served as CEO of Havas Digital and held international executive roles at DDB Miami and Lowe Worldwide. 

“We’re excited to enter this new chapter of our ambitious global expansion, returning to a region I’ve long believed to be the front door to international expansion for modern brands,” said Mark Penn, Chairman and CEO, Stagwell. “Stagwell Brazil will be a crucial player in the LATAM marketing ecosystem as we continue to grow our best-in-class offering for global clients.”  

“Stagwell’s mission to transform marketing with the power of creativity, data and technology is a powerful differentiating force in the market right now, and we’re excited to contribute the network’s growth,” added Reis. “Our agencies and partners across Latin America represent the best in modern marketing expertise. With Stagwell Brazil, we have the opportunity to drive region-wide collaboration in service of our clients.”  

Stagwell agencies in Brazil include global travel media firm Ink, communications network Allison+Partners, CP+B Brazil, YML, Locaria, and Code & Theory. Additionally, Stagwell has significantly expanded its footprint across LATAM over the past year via affiliate partnerships with recognized content and media agency networks Anchor Worldwide, Grupo Garnier and The Lab, with teams distributed across Aruba, Costa Rica, Colombia, Curacao, Mexico, Nicaragua, and Panama. Stagwell’s Global Affiliate program has to date signed over 50 affiliates worldwide, representing countries across Latin America, Asia-Pacific, Middle East and North Africa, and Eastern Europe.   

About Stagwell  

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 10,000+ 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.