NASDAQ$STGW

Stagwell Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Reported industry-leading double-digit growth, strong margin expansion, record free cash flow, record earnings per share, and a net debt ratio significantly below target.

Stagwell Inc. reported Q4 revenue of $708 million, a 16% increase year-over-year, and Adjusted EBITDA of $123 million. The Adjusted EBITDA margin was 21.1% on net revenue. The company issues 2023 Organic Net Revenue growth guidance of 7.5%-10% and 10%-14% ex-Advocacy and 2023 Adjusted EBITDA guidance of $450M-$490M and Free Cash Flow conversion of 50%-60%.

  • Q4 revenue of $708 million, an increase of 16% versus the prior year period.
  • FY22 Pro Forma revenue growth of 21%; 16% in Q4
  • Q4 Adjusted EBITDA of $123 million, an increase of 19% versus the prior year period.
  • Q4 Adjusted earnings per share for Stagwell Inc. common shareholders of $0.22.

Headline financials

Total Revenue

$708M

Previous: $612M+15.7%
EPS (adj)

$0.22

Previous: $0.01+2100.0%
Adjusted EBITDA Margin

21.1%

No prior period
Net New Business

$42M

No prior period
Free Cash Flow

$268M

No prior period
Net Income

-$27.6M

No prior period
Operating Income

-$13.8M

No prior period
Cash & Equivalents

$221M

No prior period
Total Assets

$3.99B

No prior period

Revenue & EPS history

Stagwell · Revenue · Quarterly

$708M

Q4 2022+15.7%vs Q4 2021
Beat estimate in 6 of 14 quarters(43%)
ActualEstimate

Revenue by segment

Stagwell · $79M total across 1 segment · Q4 2022

  • Communications
    $79M

Forward guidance

2023 financial guidance is as follows:

Tailwinds

  • Organic Net Revenue growth of 7.5% – 10%
  • Organic Net Revenue growth ex-Advocacy of 10% – 14%
  • Adjusted EBITDA of $450 million – $490 million
  • Free Cash Flow Conversion of 50% – 60%
  • Adjusted EPS of $0.90 – $1.05

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 Q4 2022

Historical avgQ4 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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