NYSE$IPG

Interpublic Group of Companies Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Interpublic Group's first quarter results reflected a slight decline in organic revenue and a decrease in net revenue, while confirming the company is on track to achieve its 2023 organic revenue growth target.

Interpublic Group announced first quarter 2023 results with a total revenue of $2.52 billion. Revenue before billable expenses was $2.18 billion, a decrease of 2.3% year-over-year, with an organic decrease of 0.2%. The company reported a net income of $126.0 million and confirmed it is on track to achieve its 2023 organic revenue growth target of 2% - 4%.

  • Total revenue, including billable expenses, was $2.52 billion.
  • Revenue before billable expenses (“net revenue”) was $2.18 billion, a decrease of 2.3% from a year ago, with organic decrease of 0.2%.
  • Net income was $126.0 million as reported.
  • The Company confirms it is on track to achieve its 2023 organic revenue growth target of 2% - 4% and to further expand full-year margin to 16.7%

Headline financials

Total Revenue

$2.52B

Previous: $2.57B-1.8%
EPS (adj)

$0.38

Previous: $0.47-19.1%
Organic Net Revenue Growth

-0.2%

Previous: 11.5%-101.7%
Adjusted EBITA Margin

9.7%

Previous: 12.3%-21.1%
Capital Expenditures

-$32.9M

Previous: -$30.7M-7.2%
Free Cash Flow

-$581M

Previous: -$664M+12.6%
Net Income

$126M

Previous: $159M-21.0%
Operating Income

$188M

Previous: $246M-23.4%
Gross Profit

$269M

Previous: $339M-20.7%
Cash & Equivalents

$1.68B

Previous: $2.4B-30.1%
Total Assets

$16.7B

Previous: $17.9B-6.8%
Stock-Based Comp

$11.1M

Previous: $12.5M-11.2%

Revenue & EPS history

Interpublic Group · Revenue · Quarterly

$2.52B

Q1 2023-1.8%vs Q1 2022
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Forward guidance

Company continues to expect full-year organic growth at the midpoint of our range of 2% - 4%, with fully adjusted EBITA margin of 16.7%.

Tailwinds

  • Company is on track to achieve its 2023 organic revenue growth target of 2% - 4%.
  • Company is on track to further expand full-year margin to 16.7%.
  • Won a number of the industry's most competitive account reviews, encompassing a diverse set of services and client sectors.
  • Demonstrated ongoing strong expense discipline.
  • Strong operating discipline and financial fundamentals.

Headwinds

  • Certain areas of softness, notably among marketers in the technology sector.
  • Slight decline in first quarter organic revenue.
  • Operating income decreased from $245.7 million in 2022 to $188.3 million in 2023.
  • Adjusted EBITA decreased from $273.6 million in 2022 to $210.8 million in 2023.
  • Margin on adjusted EBITA decreased from 12.3% in 2022 to 9.7% in 2023.

Historical earnings impact

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

Avg. return before/after earnings

Based on 15 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

+1.0%

Avg return

Earnings day

-1.2%

Avg return

5 days after

-0.8%

Avg return

30 days after

55%

37 / 67 earnings

Positive

+13.6%

Q4 2010

Best reaction

-18.9%

Q2 2011

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2025-2.0%-2.7%
Q2 2025+6.9%+8.5%+10.4%
Q1 2025+4.5%+4.3%+0.2%
Q4 2024-1.4%-0.4%-2.7%
Q3 2024-5.0%-5.4%-7.7%
Q2 2024+1.1%+5.0%+8.3%
Q1 2024+0.5%+1.4%+1.3%
Q4 2023-4.5%-1.6%+0.0%
Q3 2023-1.2%-2.9%+6.3%
Q2 2023-14.0%-13.5%-14.8%
Q1 2023-2.2%-2.5%+3.2%
Q4 2022-2.7%-1.5%-11.5%
Q3 2022+3.6%+7.2%+17.6%
Q2 2022-1.5%-4.1%+0.8%
Q1 2022-4.1%-2.3%-7.0%
Q4 2021-11.4%-8.0%-16.4%
Q3 2021-2.8%
Q2 2021+9.1%
Q1 2021+7.4%
Q4 2020-6.9%
Q3 2020+6.4%
Q2 2020+0.0%
Q1 2020+4.8%
Q4 2019+7.8%
Q3 2019+2.9%
Q2 2019-0.0%
Q1 2019+5.5%
Q4 2018+6.3%
Q3 2018+8.7%
Q2 2018+1.9%
Q1 2018-3.7%
Q4 2017+12.8%
Q3 2017-5.5%
Q2 2017-16.2%
Q1 2017-2.1%
Q4 2016+6.3%
Q3 2016+1.6%
Q2 2016-4.5%
Q1 2016+0.0%
Q4 2015+1.7%
Q3 2015+3.7%
Q2 2015+4.9%
Q1 2015-1.7%
Q4 2014+5.6%
Q3 2014+4.0%
Q2 2014+3.8%
Q1 2014+3.3%
Q4 2013-4.1%
Q3 2013-6.3%
Q2 2013-0.9%
Q1 2013+5.0%
Q4 2012+0.7%
Q3 2012-4.3%
Q2 2012-7.9%
Q1 2012+5.6%
Q4 2011+8.2%
Q3 2011+6.3%
Q2 2011-18.9%
Q1 2010-5.4%
Q1 2011+1.9%
Q4 2010+13.6%
Q4 2008+13.6%
Q3 2009-2.1%
Q3 2010-2.1%
Q2 2010+10.8%
Q4 2009+10.8%
Q2 2009+10.8%

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