Stagwell Inc., a leading marketing transformation company, has announced its financial results for the third quarter of 2024. The company reported a robust YoY revenue growth of 15%, reaching $711 million in Q3. This growth was primarily driven by a 25% increase in digital transformation services, as companies increasingly adopt AI-driven strategies to engage with consumers.
Furthermore, Stagwell achieved a net revenue growth of 8% YoY, amounting to $580 million in Q3. The company’s organic net revenue also saw an 8% increase compared to the previous year. Net income attributable to Stagwell Inc. Common Shareholders for Q3 reached $3 million, a significant improvement from $1 million in the same period last year.
Stagwell’s adjusted EBITDA for Q3 stood at $111 million, with an adjusted EBITDA margin of 19% on net revenue. The company’s earnings per share (EPS) for Q3 were $0.03, while adjusted EPS reached $0.22. These figures demonstrate Stagwell’s strong financial performance and its ability to deliver consistent growth.
In addition to its financial achievements, Stagwell also reported net new business of $101 million in Q3, bringing the last twelve-month net new business figure to a record-breaking $345 million. The company’s Chairman and CEO, Mark Penn, expressed confidence in Stagwell’s vision, citing the successful partnerships with Adobe, United, and Microsoft as key contributors to the company’s growth.
Frank Lanuto, Chief Financial Officer of Stagwell, highlighted the growth across all principal capabilities in Q3, particularly in digital transformation and the Stagwell Marketing Cloud. The company’s positive results have led to the reaffirmation of its guidance for 2024, which includes organic net revenue growth of 5% to 7%, adjusted EBITDA of $400 million to $450 million, and free cash flow conversion of approximately 50%.
In a move to further enhance shareholder value, Stagwell also announced a $125 million increase in its stock repurchase program. This program allows the company to repurchase up to $375 million of its outstanding Class A common stock, with the Repurchase Program set to expire on November 6, 2027.
Stagwell’s strong financial performance, new business momentum, and continued focus on digital transformation position the company for a successful second half of the year. With its innovative marketing solutions and global presence, Stagwell remains committed to driving effectiveness and improving business results for its clients.