NASDAQ$STGW

Stagwell Inc · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Stagwell's first quarter was marked by record financial results, propelled by growth in digital transformation, consumer insights & strategy, and significant client wins in media.

Stagwell Inc. reported a strong first quarter with significant revenue and adjusted EBITDA growth. Key drivers included high-growth digital services and net new business wins. The company reaffirms its 2022 full-year outlook.

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

Headline financials

Total Revenue

$643M

Previous: $308M+109.0%
EPS (adj)

$0.11

Previous: $0.01+1000.0%
Adjusted EBITDA Margin

19.3%

Previous: 16.9%+14.2%
Net New Business

$54M

No prior period
Capital Expenditures

-$6.54M

Previous: -$13.4M+51.3%
Free Cash Flow

$6.14M

Previous: -$8.41M+172.9%
Net Income

$12.7M

Previous: $5.01M+153.0%
Operating Income

$54.7M

Previous: $27.7M+97.6%
Gross Profit

$231M

Previous: $121M+91.4%
Cash & Equivalents

$135M

Previous: $113M+19.2%
Total Assets

$4.05B

Previous: $1.56B+159.6%

Revenue & EPS history

Stagwell · Revenue · Quarterly

$643M

Q1 2022+109%vs Q1 2021
Beat estimate in 2 of 7 quarters(29%)
ActualEstimate

Revenue by segment

Stagwell · $62.5M total across 1 segment · Q1 2022

  • Communications
    $62.5M

Forward guidance

Stagwell reaffirms its 2022 financial guidance, expecting continued growth in organic net revenue and adjusted EBITDA.

Tailwinds

  • 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.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

+0.7%

Avg return

Earnings day

+0.2%

Avg return

5 days after

+1.3%

Avg return

30 days after

61%

38 / 62 earnings

Positive

+34.9%

Q1 2020

Best reaction

-59.3%

Q3 2016

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.1%+2.1%+11.8%
Q4 2025+17.8%+17.9%+23.9%
Q3 2025+16.9%+4.4%+19.3%
Q1 2025-14.0%-6.9%-22.7%
Q4 2024-5.4%-10.1%-11.6%
Q3 2024+10.1%+7.7%+7.0%
Q2 2024-8.1%-9.3%+7.6%
Q1 2024+19.5%+16.0%+16.5%
Q4 2023-26.0%-22.4%-11.4%
Q3 2023+5.6%+11.7%+26.5%
Q2 2023+1.3%-10.8%-14.3%
Q1 2023-5.3%-4.5%+32.9%
Q4 2022+11.6%+32.5%+9.3%
Q3 2022-5.0%-2.2%+1.4%
Q2 2022-9.7%-13.4%-9.4%
Q1 2022+6.0%+5.4%+19.7%
Q4 2021-0.7%+5.7%-7.7%
Q3 2021+15.1%+16.0%-8.0%
Q2 2021+3.1%+9.5%+46.3%
Q1 2021+9.3%+6.4%+10.6%
Q4 2020+2.2%-5.8%+5.8%
Q3 2020+10.4%+8.0%+10.8%
Q2 2020-7.3%-6.5%-4.3%
Q1 2020+34.9%+17.9%+24.5%
Q4 2019+20.1%+8.1%-34.9%
Q3 2019-13.1%-13.4%-28.3%
Q2 2019+10.1%-1.8%+9.2%
Q1 2019+27.2%+37.8%+31.3%
Q4 2018+3.0%-8.4%+4.4%
Q3 2018+6.8%+29.9%+1.7%
Q2 2018+9.1%+7.1%-2.0%
Q1 2018-31.2%-41.8%-34.0%
Q4 2017-6.4%-9.6%-28.9%
Q3 2017+6.5%+1.9%+9.3%
Q2 2017+12.4%+10.9%-3.1%
Q1 2017+2.3%-0.6%-6.3%
Q4 2016-2.2%+0.6%+4.5%
Q3 2016-59.3%-57.5%-25.7%
Q2 2016-29.8%-26.1%-32.4%
Q1 2016-13.9%
Q4 2015+10.7%
Q3 2015-3.4%
Q2 2015+16.2%
Q1 2015-28.9%
Q4 2014+5.7%
Q3 2014-3.3%
Q2 2014+3.7%
Q1 2014+1.5%
Q4 2013-6.3%
Q3 2013+10.8%
Q2 2013+6.4%
Q1 2013+0.1%
Q2 2012+6.5%
Q4 2012+6.3%
Q3 2012-3.2%
Q1 2011+2.2%
Q1 2012+2.2%
Q4 2011-8.1%
Q2 2011-8.1%
Q3 2011+7.3%
Q3 2010+7.3%
Q2 2010-8.6%

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