The following is a summary of the Stagwell Inc. (STGW) Q2 2024 Earnings Call Transcript:

Financial Performance:

• Stagwell reported a revenue of $671 million in Q2 2024, marking a 6% increase year-over-year.

• Net revenue, excluding pass-through costs, increased 2% to $554 million.

• Adjusted EBITDA for the quarter stood at $86 million, representing a 15.5% margin on net revenue.

• The company also detailed its investment in growth initiatives, impacting costs and driving the G&A expenses slightly higher by approximately $5 million to $113 million for the quarter.

Business Progress:

• Stagwell achieved a record $113 million in net new business in Q2, driven by wins including Chevy and Cadillac from General Motors.

• The company is making significant investments in internal development and growth, spending an additional $10 million on new business pitches and other expenses, aiming for larger client assignments as a key growth strategy.

• Announced the acquisition of LEADERS based in Tel Aviv to expand social media capabilities.

• Launched new AI-powered features in partnership with Google Cloud across Stagwell Marketing Cloud products.

Opportunities:

• Anticipates substantial growth from the political advertising segment, expecting over 50% growth year-over-year in Advocacy.

• Continues to invest in digital capabilities, set to bring a unique content management platform known as Stagwell Live and expanding global footprint, especially in the Middle East.

Risks:

• The company acknowledged ongoing operational and capital expenditures aimed at growth, impacting short-term financial metrics but expected to provide long-term benefits.

More details: Stagwell IR

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