Loading...
01/11 03:36
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call highlights strong financial performance, particularly in digital transformation and marketing cloud segments. The company is making strategic investments in AI and cloud, enhancing its competitive position. Despite some challenges in performance media, management's optimistic guidance and cost-saving initiatives are promising. The share buyback program further supports shareholder value. The Q&A suggests confidence in growth and client acquisition, though some responses lacked clarity. Overall, the positive elements outweigh the concerns, indicating a likely positive stock price movement.
Net Revenue $564 million, an increase of 6% year-over-year. Excluding Advocacy, total net revenue grew 9%.
Digital Transformation Net Revenue $106 million, an increase of 8% year-over-year. Excluding Advocacy, net revenue grew 15%.
Stagwell Marketing Cloud Net Revenue $63 million, an increase of 32% year-over-year. Excluding Advocacy, net revenue grew 45%.
Creativity and Communications Net Revenue $242 million, an increase of 7% year-over-year. Excluding Advocacy, net revenue grew 10%.
Consumer Insights and Strategy Net Revenue $49 million, an increase of 8% year-over-year.
Performance Media and Data Net Revenue $104 million, a decline of 10% year-over-year.
Adjusted EBITDA $81 million, with a margin of 14.3%, an improvement of approximately 50 basis points year-over-year.
Personnel Costs Ratio 65% in the first quarter, excluding Advocacy, the ratio was 64.8%, 50 basis points lower than last year.
Deferred Acquisition Consideration Balance $93 million, $8 million lower than the same period last year.
Cash Position $138 million in cash at the end of the quarter.
Net Leverage Ratio 3.3 times.
CapEx and Capitalized Software $16 million, broadly in line with targets.
Stagwell Marketing Cloud: The Stagwell Marketing Cloud saw net revenue growth, excluding Advocacy, of 45% in the first quarter.
JetFuel Acquisition: Acquisition of JetFuel to strengthen experiential and shopper marketing capabilities.
UNICEPTA Acquisition: Acquisition of German media monitoring and analytics platform UNICEPTA, which recently won significant multiyear business with the European Commission and the BBC.
Gold Rabbit Acquisition: Acquisition of Gold Rabbit in Q1 to enhance sports offerings.
ADK GLOBAL Acquisition: Anticipated acquisition of ADK GLOBAL to strengthen capabilities in Asia.
Net New Business: Stagwell posted $130 million in net new business for the quarter, almost double a year ago, bringing trailing 12-month net new business to $446 million.
Growth in Technology and Retail Sectors: Technology customers increased their spend by 18% and retail customers by 52%.
Middle East Market Growth: Net revenue in the Middle East grew by more than 250% year-over-year in the first quarter.
Adjusted EBITDA: Stagwell generated $81 million in adjusted EBITDA with a margin of 14.3% on net revenue.
Cost Savings Initiatives: Targeted cost saving initiatives expected to yield $60 million to $70 million in annualized savings.
AI Tools Implementation: Work on implementing AI tools underpinning an $80 million to $100 million efficiency drive.
M&A Strategy: M&A will continue to be a key driver for Stagwell to expand internationally and strengthen capabilities.
Reputation Risk Management: Stagwell's risk and reputation unit is positioned to help brands navigate challenges related to tariffs and political issues.
Tariff Impact: Minimal impact from tariffs in Q1; however, ongoing monitoring is necessary as the business is particularly strong with tech companies.
Reputation Risk: Reputation risk is a concern for executives navigating challenges related to tariffs and political issues.
Supply Chain Challenges: No specific supply chain challenges were mentioned, but the company is aware of potential risks in the evolving landscape.
Economic Factors: Economic factors, including political issues and tariffs, are being monitored, but the company has not seen a direct impact on customer spending.
Competitive Pressures: The company is positioned as a challenger network amidst industry reorganizations and mergers, indicating competitive pressures exist.
Cost Management: The company is implementing cost-saving initiatives, with expectations of $60 million to $70 million in annualized savings, indicating a focus on managing expenses.
Net New Business: Stagwell posted $130 million in net new business for the quarter, almost double a year ago, bringing the trailing 12-month net new business to $446 million.
Acquisitions: Acquisition of JetFuel to strengthen experiential and shopper marketing capabilities, and acquisition of UNICEPTA for media monitoring and analytics.
Digital Transformation Growth: Digital Transformation capability grew net revenue 15% year-over-year in Q1.
AI Initiatives: Appointment of John Kahan as Chief AI Officer and development of proprietary customer ID platform.
Cost Savings Initiatives: Targeted cost saving initiatives expected to yield $60 million to $70 million in annualized savings.
2025 Revenue Growth Guidance: Total net revenue growth is expected to be approximately 8%.
2025 Adjusted EBITDA Guidance: Adjusted EBITDA is expected to be between $410 million to $460 million.
Free Cash Flow Conversion Guidance: Expected to deliver in excess of 45% free cash flow conversion.
Adjusted EPS Guidance: Adjusted earnings per share is expected to be between $0.75 and $0.88.
Share Buyback Program: During the quarter, Stagwell acquired approximately 1 million of its shares at an average price of $6.07 per share for approximately $6 million. The buyback authorization as of the end of the first quarter had $164 million in remaining availability.
The earnings call reflects strong financial performance with record revenue and EBITDA, a robust shareholder return plan with share buybacks, and a positive outlook on copper and gold production. Management's responses in the Q&A suggest stability in project scopes and capital expenditures, although some vagueness in timelines and negotiations. The strong financial metrics, optimistic guidance, and ongoing buyback program are likely to positively influence the stock price in the short term.
The earnings call highlights strong growth across key segments, particularly in digital transformation and marketing cloud, alongside improved EBITDA margins. The strategic partnership with Palantir and substantial technology investments suggest potential for future growth. While there are some uncertainties, such as the unclear TAM for the Palantir partnership, the overall financial performance and optimistic future guidance, including shareholder returns through share repurchases, contribute to a positive outlook for the stock price in the next two weeks.
The earnings call highlights strong financial performance, strategic acquisitions, and significant growth in new business and digital transformation. The Q&A session reveals confidence in future growth, sustainable cash flow improvements, and strategic positioning in AI and government contracts. Despite some vague responses, the overall sentiment remains positive, supported by stock repurchases and improved leverage. The absence of negative financial surprises and optimistic guidance further justifies a positive outlook.
The earnings call highlights strong financial performance, particularly in digital transformation and marketing cloud segments. The company is making strategic investments in AI and cloud, enhancing its competitive position. Despite some challenges in performance media, management's optimistic guidance and cost-saving initiatives are promising. The share buyback program further supports shareholder value. The Q&A suggests confidence in growth and client acquisition, though some responses lacked clarity. Overall, the positive elements outweigh the concerns, indicating a likely positive stock price movement.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
