STGW Earnings Prediction
The chart below shows how STGW performed 10 days before and after its earnings report, based on data from the past quarters. Typically, STGW sees a +2.18% change in stock price 10 days leading up to the earnings, and a -1.08% change 10 days following the report. On the earnings day itself, the stock moves by -0.58%. This data can give you a slight idea of what to expect for the next quarter's release.
STGW Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
711.28M
15.17%
5.98%
Gross Margin
30.68%
-2.20%
8.22%
Operating Margin
5.87%
7.51%
77.88%
Net Margin
1.95%
290.00%
-430.51%
EPS
0.03
--
-200.00%
No Data Available
STGW Earnings Analysis
Stagwell Inc. Class A Common Stock Corporation (STGW.O) Earnings Conference Call
Positive
Strong Revenue Increase: Stagwell reported a strong third quarter with revenue of $711 million, reflecting a 15% increase compared to the same period last year.
Net Revenue Increase: The company achieved $580 million in net revenue, marking an 8% increase over the prior period, showcasing solid growth across its segments.
Digital Transformation Revenue Growth: Digital transformation revenue accelerated to $163 million, representing a 25% improvement over the prior period, driven by increased demand for AI-driven solutions.
Marketing Cloud Revenue Surge: Stagwell's Marketing Cloud generated $74 million in revenue, a 30% year-over-year increase, fueled by significant growth in its Wonder Cave platform.
EBITDA Margin Improvement: The adjusted EBITDA for the third quarter was $111 million, with a margin of 19.2% on net revenue, reflecting a 15 basis point improvement over the prior period.
Negative
Win Growth Metrics: The total number of wins increased 32% year-over-year, while the average size of our wins above $1 million increased 74%.
Quarterly Revenue Growth: We achieved $711 million of revenue or 15% growth in the third quarter, led by 85% growth in advocacy, 25% in digital transformation, and 30% growth in the Stagwell Marketing Cloud.
EBITDA Performance and Investment: Our adjusted EBITDA came in at $111 million in 3Q, even as we continue to invest $18 million of OpEx this quarter in growing our cloud and AI-based software solutions.
Revenue and Net Revenue Growth: We reported revenue of $711 million, an increase of 15% as compared to the same period in the prior year and net revenue of $580 million, an increase of 8% over the prior period.
Adjusted EBITDA Margin Estimate: Our adjusted EBITDA margin would have been approximately 22.2%.
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STGW Earning Call Sentiment
Stagwell Inc (STGW) Q3 2024 Earnings Call Transcript
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00:00
00:00
STGW.O
-0.15%Positive
The earnings call reveals strong financial performance with a 15% revenue increase and record net new business. Despite some risks, the company has a robust growth strategy, including AI integration and Middle East expansion. The Q&A highlights positive sentiment towards digital transformation and AI-driven revenue growth. The share repurchase program and optimistic guidance further bolster the outlook. While there are some concerns about investment and acquisition risks, the overall sentiment is positive, suggesting a stock price increase of 2% to 8%.