STAGWELL INC. (NASDAQ: STGW) REPORTS RESULTS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2024

PR Newswire

2024-11-07

Q3 YoY Revenue Growth of 15%, With 25% Growth in Digital Transformation Q3 YoY Net Revenue Growth of 8%, Organic Net Revenue Growth of 8%, Digital Transformation Net Revenue Growth of 18% Q3 Net ...

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(NASDAQ: STGW) REPORTS RESULTS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2024","media":"PR Newswire","content":"<div>\n<p>Q3 YoY Revenue Growth of 15%, With 25% Growth in Digital Transformation\nQ3 YoY Net Revenue Growth of 8%, Organic Net Revenue Growth of 8%, Digital Transformation Net Revenue Growth of 18%\nQ3 Net ...</p>\n\n<a href=\"https://finance.yahoo.com/news/stagwell-inc-nasdaq-stgw-reports-122500865.html\">網頁鏈接</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>STAGWELL INC. (NASDAQ: STGW) REPORTS RESULTS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2024</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 12.5px; color: #7E829C; margin: 0;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nSTAGWELL INC. (NASDAQ: STGW) REPORTS RESULTS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2024\n</h2>\n<h4 class=\"meta\">\n<p class=\"head\">\n<strong class=\"h-name small\">PR Newswire</strong><span class=\"h-time small\">2024-11-07 20:25</span>\n</p>\n</h4>\n</header>\n<article>\n<div>\n<p>Q3 YoY Revenue Growth of 15%, With 25% Growth in Digital Transformation\nQ3 YoY Net Revenue Growth of 8%, Organic Net Revenue Growth of 8%, Digital Transformation Net Revenue Growth of 18%\nQ3 Net ...</p>\n\n<a href=\"https://finance.yahoo.com/news/stagwell-inc-nasdaq-stgw-reports-122500865.html\">網頁鏈接</a>\n\n</div>\n\n<div class=\"bt-text\">\n\n\n<p> 來源：<a href=\"https://finance.yahoo.com/news/stagwell-inc-nasdaq-stgw-reports-122500865.html\">PR Newswire</a></p>\n<p>為提升您的閱讀體驗，我們對本頁面進行了排版優化</p>\n\n\n</div>\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"NDAQ","symbol_name":"納斯達克OMX交易所","start_time":0,"source_url":"https://finance.yahoo.com/news/stagwell-inc-nasdaq-stgw-reports-122500865.html","article_id":"2481909746","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/ACnHzCyhoEF0LJdKj.YSrA--~B/aD00MDA7dz0zMTA7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/prnewswire.com/78c34cb68024368656e77e405eb31505"],"rights":{"source":"yahoofinance","url":"https://finance.yahoo.com/news/stagwell-inc-nasdaq-stgw-reports-122500865.html","rn_cache_url":null,"customStyle":"img, svg { display: none !important; }","selectors":"article","filters":"","directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2481909746","pubTimestamp":1730982300,"columns":[],"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Q3 YoY Revenue Growth of 15%, With 25% Growth in Digital Transformation. Q3 YoY Net Revenue Growth of 8%, Organic Net Revenue Growth of 8%, Digital Transformation Net Revenue Growth of 18%. Q3 Adjusted EBITDA of $111million; Adjusted EBITDA Margin of 19%. Seventh Consecutive Quarter of Record LTM Net New Business. Net New Business of $101million in Q3; LTM Net New Business of $345million. Reaffirm Guidance for 2024 of Organic Net Revenue Growth of 5% to 7%; Adjusted EBITDA of $400 million to $450 million; Free Cash Flow Conversion of ~50%. NEW YORK, Nov. 7, 2024 /PRNewswire/ -- – Stagwell Inc.  today announced financial results for the three and nine months ended September 30, 2024.Q3 Revenue of $711million, an increase of 15% versus the prior year period; YTD Revenue of $2.1 billion, an increase of 10% versus the prior year period. Q3 Net Revenue of $580million, an increase of 8% versus the prior year period; YTD Net Revenue of $1.7 billion, an increase of 4% versus the prior year per","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"NDAQ":"纳斯达克OMX交易所","BK4588":"碎股","QID":"纳指两倍做空ETF","LU2095319765.USD":"Natixis Thematics Subscription Economy R/A USD","SQQQ":"纳指三倍做空ETF","BK4179":"石油天然气设备与服务","LU2210150020.SGD":"Natixis Thematics Subscription Economy R/A SGD","LU1169590202.USD":"ALLSPRING (LUX)  U.S. SELECT EQUITY \"I\" (USD) ACC","BK4561":"索罗斯持仓","LU2210149790.SGD":"Natixis Thematics Subscription Economy R/A SGD-H","BK4581":"高盛持仓","INC":"VANECK DYNAMIC HIGH INCOME ETF","IE00BKPKM429.USD":"NEUBERGER BERMAN GLOBAL SUSTAINABLE EQUITY \"A\" (USD) ACC","LU1169589451.USD":"ALLSPRING (LUX)  U.S. SELECT EQUITY \"A\" (USD) ACC","FOR":"福里斯特","NINE":"Nine Energy Service Inc.","BK4590":"PTP","TQQQ":"纳指三倍做多ETF","BK4112":"金融交易所和数据","IE00B64PRP62.GBP":"GUINNESS GLOBAL MONEY MANAGERS \"C\" (GBP) ACC","BK4024":"房地产开发","IE00B3QW5Z07.USD":"GUINNESS GLOBAL MONEY MANAGERS \"C\" (USD) ACC","IE00BGHQF748.EUR":"GUINNESS GLOBAL MONEY MANAGERS \"C\" (EUR) ACC","QLD":"纳指两倍做多ETF","BK4161":"工业机械","BK4144":"石油与天然气的储存和运输","ET":"Energy Transfer LP","BK4585":"ETF&股票定投概念",".IXIC":"NASDAQ Composite","PSQ":"纳指反向ETF","STGW":"Stagwell Inc.","BK4009":"广告"},"translate_title":"斯塔格威尔公司。（纳斯达克：STGW）报告截至2024年9月30日的三个月和九个月的业绩","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{".IXIC":1,"B":1,"ET":1,"FOR":1,"MNQmain":0.6,"NQmain":0.6,"INC":1,"NDAQ":1,"NINE":1,"PSQ":0.6,"QID":0.6,"QLD":0.6,"SQQQ":0.6,"STGW":1,"TQQQ":0.6},"content_text":"Q3 YoY Revenue Growth of 15%, With 25% Growth in Digital Transformation\nQ3 YoY Net Revenue Growth of 8%, Organic Net Revenue Growth of 8%, Digital Transformation Net Revenue Growth of 18%\nQ3 Net Income Attributable to Stagwell Inc. Common Shareholders of $3 million\nQ3 Adjusted EBITDA of $111 million; Adjusted EBITDA Margin of 19%\nQ3 EPS of $0.03; Adjusted EPS of $0.22\nSeventh Consecutive Quarter of Record LTM Net New Business\nNet New Business of $101 million in Q3; LTM Net New Business of $345 million\nReaffirm Guidance for 2024 of Organic Net Revenue Growth of 5% to 7%; Adjusted EBITDA of $400 million to $450 million; Free Cash Flow Conversion of ~50%\nCompany Announces $125 Million Increase in Stock Repurchase Program\nNEW YORK, Nov. 7, 2024  /PRNewswire/ -- (NASDAQ: STGW) – Stagwell Inc. (\"Stagwell\") today announced financial results for the three and nine months ended September 30, 2024.\n\n  \n\nTHIRD QUARTER RESULTS:\n\nQ3 Revenue of $711 million, an increase of 15% versus the prior year period; YTD Revenue of $2.1 billion, an increase of 10% versus the prior year period\nQ3 Net Revenue of $580 million, an increase of 8% versus the prior year period; YTD Net Revenue of $1.7 billion, an increase of 4% versus the prior year period\nQ3 Organic Net Revenue increased 8% versus the prior year period; YTD Organic Net Revenue increased 4% versus the prior year period\nQ3 Net Income attributable to Stagwell Inc. Common Shareholders of $3 million versus $1 million in the prior year period; YTD Net Loss attributable to Stagwell Inc. Common Shareholders of $1 million versus $1 million in the prior year period\nQ3 Adjusted EBITDA of $111 million, an increase of 9% versus the prior year period; YTD Adjusted EBITDA of $288 million, an increase of 8% versus the prior year period\nQ3 Adjusted EBITDA Margin of 19% on net revenue; YTD Adjusted EBITDA Margin of 17% on net revenue\nQ3 Earnings Per Share Attributable to Stagwell Inc. Common Shareholders of $0.03 versus $0.00 in the prior year period; YTD Earnings Per Share Attributable to Stagwell Inc. Common Shareholders of $(0.01) versus $(0.01) in the prior year period\nQ3 Adjusted Earnings Per Share attributable to Stagwell Inc. Common Shareholders of $0.22 versus $0.18 in the prior year period; YTD Adjusted Earnings Per Share attributable to Stagwell Inc. Common Shareholders of $0.52 versus $0.45 in the prior year period\nNet new business of $101 million in the third quarter, last twelve-month net new business of $345 million\n\n\n\n\n\nSee \"Non-GAAP Financial Measures\" below for explanations and reconciliations of the Company's non-GAAP financial measures. \n\n\n\n\nMark Penn, Chairman and CEO, said, \"Stagwell delivered 15% year-over-year revenue growth in the third quarter, led by a return to double-digit growth from our Digital Transformation capability as AI has required companies to rethink the ways they engage with consumers. On the heels of our single largest deal to date with Adobe and expanded relationships with leading brands like United and Microsoft, net new business of over $100 million in the third quarter brings our last twelve-month net new business figure to $345 million, another record for Stagwell.\n\"New business momentum, robust performance from Digital Transformation, and the culmination of a political season that broke fundraising records, gives us confidence that our vision is resonating with customers, and sets the stage for a strong close to H2,\" added Penn. \nFrank Lanuto, Chief Financial Officer, commented: \"Stagwell posted growth across all our principal capabilities in the third quarter, as the inflection we anticipated played out. Driven by double-digit growth in both Digital Transformation and the Stagwell Marketing Cloud, we delivered third quarter revenue of $711 million. Simultaneously, we grew our adjusted EBITDA to $111 million, representing a 19% margin on net revenue, an improvement of approximately 15 bps over the prior year. These results give us confidence to reiterate our full-year guidance.\"\nFinancial Outlook\n2024 financial guidance is reiterated as follows:\n\nOrganic Net Revenue growth of 5% to 7%\nOrganic Net Revenue excluding Advocacy growth of 4% to 5%\nAdjusted EBITDA of $400 million to $450 million\nFree Cash Flow Conversion of approximately 50%\nAdjusted EPS of $0.75 - $0.88\nGuidance assumes no impact from foreign exchange, acquisitions or dispositions.\n\n\n\n\n\n* The Company has excluded a quantitative reconciliation with respect to the Company's 2024 guidance under the \"unreasonable efforts\" exception in Item 10(e)(1)(i)(B) of Regulation S-K. See \"Non-GAAP Financial Measures\" below for additional information. \n\n\n\n\nStock Repurchase Program\nOn November 6, 2024, the Board of Directors authorized an extension and a $125,000,000 increase in the size of Stagwell's previously approved stock repurchase program (the \"Repurchase Program\"). Under the Repurchase Program, as amended, Stagwell may repurchase up to an aggregate of $375,000,000 of shares of its outstanding Class A common stock, with any previous purchases under the Repurchase Program continuing to count against that limit. The Repurchase Program will expire on November 6, 2027.\nVideo Webcast\nManagement will host a video webcast on Thursday, November 7, 2024, at 8:30 a.m. (ET) to discuss results for Stagwell Inc. for the three and nine months ended September 30, 2024. The video webcast will be accessible at https://stgw.io/Earnings. An investor presentation has been posted on our website at www.stagwellglobal.com and may be referred to during the webcast.\nA recording of the webcast will be accessible one hour after the webcast and available for ninety days at www.stagwellglobal.com. \nStagwell Inc.\nStagwell is the challenger network built to transform marketing. We deliver scaled creative performance for the world's most ambitious brands, connecting culture-moving creativity with leading-edge technology to harmonize the art and science of marketing. Led by entrepreneurs, our specialists in 34+ countries are unified under a single purpose: to drive effectiveness and improve business results for their clients. Join us at www.stagwellglobal.com. \nContacts\nFor Investors: Ben AllansonIR@stagwellglobal.com \nFor Press:Beth SidhuPR@stagwellglobal.com \nNon-GAAP Financial Measures\nIn addition to its reported results, Stagwell Inc. has included in this earnings release certain financial results that the Securities and Exchange Commission (SEC) defines as \"non-GAAP Financial Measures.\" Management believes that such non-GAAP financial measures, when read in conjunction with the Company's reported results, can provide useful supplemental information for investors analyzing period to period comparisons of the Company's results. Such non-GAAP financial measures include the following:\n(1) Organic Net Revenue: \"Organic net revenue growth\" and \"Organic net revenue decline\" reflects the year-over-year change in the Company's reported net revenue attributable to the Company's management of the entities it owns. We calculate organic net revenue growth (decline) by subtracting the net impact of acquisitions (divestitures) and the impact of foreign currency exchange fluctuations from the aggregate year-over-year increase or decrease in the Company's reported net revenue. The net impact of acquisitions (divestitures) reflects the year-over-year change in the Company's reported net revenue attributable to the impact of all individual entities that were acquired or divested in the current and prior year. We calculate impact of an acquisition as follows: (a) for an entity acquired during the current year, we present the entity's prior year net revenue for the same period during which we owned it in the current year as impact of the acquisition in the current year; and (b) for an entity acquired in the prior year, we present the entity's prior year net revenue for the period during which we did not own the entity in the prior year as impact of the acquisition in the current year. We calculate impact of a divestiture as follows: (a) for a divestiture in the current year, we present the entity's prior year net revenue for the same period during which we no longer owned it in the current year as impact of the divestiture in the current year; and (b) for a divestiture in the prior year, we present the entity's prior year net revenue for the period during which we owned it in the prior year as impact of the divestiture in the current year. We calculate the impact of any acquisition or divestiture without adjusting for foreign currency exchange fluctuations. The impact of foreign currency exchange fluctuations reflects the year-over-year change in the Company's reported net revenue attributable to changes in foreign currency exchange rates. We calculate the impact of foreign currency exchange fluctuations for the portion of the reporting period in which we recognized revenue from a foreign entity in both the current year and the prior year. The impact is calculated as the difference between (1) reported prior period net revenue (converted to U.S. dollars at historical foreign currency exchange rates) and (2) prior period net revenue converted to U.S. dollars at current period foreign exchange rates.\n(2) Net New Business: Estimate of annualized revenue for new wins less annualized revenue for losses incurred in the period.\n(3) Adjusted EBITDA: defined as Net income excluding non-operating income or expense to achieve operating income, plus depreciation and amortization, stock-based compensation, deferred acquisition consideration adjustments, and other items. Other items include restructuring costs, acquisition-related expenses, and non-recurring items.\n(4) Adjusted Diluted EPS is defined as (i) Net income (loss) attributable to Stagwell Inc. common shareholders, plus net income attributable to Class C shareholders, excluding amortization expense, impairment and other losses, stock-based compensation, deferred acquisition consideration adjustments, discrete tax items, and other items, divided by (ii) (a) the per weighted average number of common shares outstanding plus (b) the weighted average number of Class C shares outstanding, (if dilutive). Other items includes restructuring costs, acquisition-related expenses, and non-recurring items, and subject to the anti-dilution rules.\n(5) Free Cash Flow: defined as Adjusted EBITDA less capital expenditures, change in net working capital, cash taxes, interest, and distributions to minority interests, but excludes contingent M&A payments. Free Cash Flow Conversion is the percentage of adjusted EBITDA.\nIncluded in this earnings release are tables reconciling reported Stagwell Inc. results to arrive at certain of these non-GAAP financial measures.\nThis document contains forward-looking statements. within the meaning of Section 27A of the Securities Act of 1933, as amended (the \"Securities Act\"), and Section 21E of the Securities Exchange Act of 1934, as amended (the \"Exchange Act\"). The Company's representatives may also make forward-looking statements orally or in writing from time to time. Statements in this document that are not historical facts, including, statements about the Company's beliefs and expectations, future financial performance, growth, and future prospects, the Company's strategy, business and economic trends and growth, technological leadership and differentiation, potential and completed acquisitions, anticipated operating efficiencies and synergies and estimates of amounts for redeemable noncontrolling interests and deferred acquisition consideration, constitute forward-looking statements. Forward-looking statements, which are generally denoted by words such as \"aim,\" \"anticipate,\" \"assume,\" \"believe,\" \"continue,\" \"could,\" \"create,\" \"develop,\" \"estimate,\" \"expect,\" \"focus,\" \"forecast,\" \"foresee,\" \"future,\" \"goal,\" \"guidance,\" \"in development,\" \"intend,\" \"likely,\" \"look,\" \"maintain,\" \"may,\" \"ongoing,\" \"opportunity,\" \"outlook,\" \"plan,\" \"possible,\" \"potential,\" \"predict,\" \"probable,\" \"project,\" \"should,\" \"target,\" \"will,\" \"would\" or the negative of such terms or other variations thereof and terms of similar substance used in connection with any discussion of current plans, estimates and projections are subject to change based on a number of factors, including those outlined in this section. \nForward-looking statements in this document are based on certain key expectations and assumptions made by the Company. Although the management of the Company believes that the expectations and assumptions on which such forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. The material assumptions upon which such forward-looking statements are based include, among others, assumptions with respect to general business, economic and market conditions, the competitive environment, anticipated and unanticipated tax consequences and anticipated and unanticipated costs. These forward-looking statements are based on current plans, estimates and projections, and are subject to change based on a number of factors, including those outlined in this section. These forward-looking statements are subject to various risks and uncertainties, many of which are outside the Company's control. Therefore, you should not place undue reliance on such statements. Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update publicly any of them in light of new information or future events, if any.\nForward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statements. Such risk factors include, but are not limited to, the following:\n\nrisks associated with international, national and regional unfavorable economic conditions that could affect the Company or its clients;\ndemand for the Company's services, which may precipitate or exacerbate other risks and uncertainties;\ninflation and actions taken by central banks to counter inflation;\nthe Company's ability to attract new clients and retain existing clients; \nthe impact of a reduction in client spending and changes in client advertising, marketing and corporate communications requirements;\nfinancial failure of the Company's clients;\nthe Company's ability to retain and attract key employees;\nthe Company's ability to compete in the markets in which it operates;\nthe Company's ability to achieve its cost saving initiatives;\nthe Company's implementation of strategic initiatives;\nthe Company's ability to remain in compliance with its debt agreements and the Company's ability to finance its contingent payment obligations when due and payable, including but not limited to those relating to redeemable noncontrolling interests and deferred acquisition consideration;\nthe Company's ability to manage its growth effectively;\nthe Company's ability to identify, complete and integrate acquisitions that complement and expand the Company's business capabilities and realize cost savings, synergies or other anticipated benefits of newly acquired businesses, or that even if realized, such benefits may take longer to realize than expected;\nthe Company's ability to identify and complete divestitures and to achieve the anticipated benefits therefrom;\nthe Company's ability to develop products incorporating new technologies, including augmented reality, artificial intelligence, and virtual reality, and realize benefits from such products;\nthe Company's use of artificial intelligence, including generative artificial intelligence;\nadverse tax consequences for the Company, its operations and its stockholders, that may differ from the expectations of the Company, including that future changes in tax laws, potential increases to corporate tax rates in the United States and disagreements with tax authorities on the Company's determinations that may result in increased tax costs;\nadverse tax consequences in connection with the Transactions, including the incurrence of material Canadian federal income tax (including material \"emigration tax\");\nthe Company's unremediated material weaknesses in internal control over financial reporting and its ability to establish and maintain an effective system of internal control over financial reporting, including the risk that the Company's internal controls will fail to detect misstatements in its financial statements;\nthe Company's ability to accurately forecast its future financial performance and provide accurate guidance;\nthe Company's ability to protect client data from security incidents or cyberattacks;\neconomic disruptions resulting from war and other geopolitical tensions (such as the ongoing military conflicts between Russia and Ukraine and in the Middle East), terrorist activities and natural disasters;\nstock price volatility; and\nforeign currency fluctuations.\n\nInvestors should carefully consider these risk factors, other risk factors described herein, and the additional risk factors outlined in more detail in our 2023 Form 10-K, filed with the Securities and Exchange Commission (the \"SEC\") on March 11, 2024, and accessible on the SEC's website at www.sec.gov, under the caption \"Risk Factors,\" and in the Company's other SEC filings.\n\n\n\n\nSCHEDULE 1 \n\n\nSTAGWELL INC. \n\n\nUNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS \n\n\n(amounts in thousands, except per share amounts) \n\n\n\n\n\n\nThree Months Ended September 30, \n\nNine Months Ended September 30, \n\n\n\n2024 \n\n2023 \n\n2024 \n\n2023 \n\n\nRevenue \n$    711,281 \n\n$    617,573 \n\n$ 2,052,508 \n\n$ 1,872,282 \n\n\nOperating Expenses \n\n\n\n\n\n\n\n\n\nCost of services \n457,018 \n\n384,980 \n\n1,340,456 \n\n1,201,309 \n\n\nOffice and general expenses \n176,440 \n\n160,021 \n\n507,916 \n\n481,379 \n\n\nDepreciation and amortization \n36,044 \n\n38,830 \n\n112,881 \n\n107,795 \n\n\nImpairment and other losses \n— \n\n— \n\n1,715 \n\n10,562 \n\n\n\n669,502 \n\n583,831 \n\n1,962,968 \n\n1,801,045 \n\n\nOperating Income (Loss) \n41,779 \n\n33,742 \n\n89,540 \n\n71,237 \n\n\nOther income (expenses): \n\n\n\n\n\n\n\n\n\nInterest expense, net \n(23,781) \n\n(25,886) \n\n(68,279) \n\n(67,755) \n\n\nForeign exchange, net \n1,312 \n\n(140) \n\n(2,301) \n\n(2,288) \n\n\nOther, net \n249 \n\n(271) \n\n(825) \n\n(467) \n\n\n\n(22,220) \n\n(26,297) \n\n(71,405) \n\n(70,510) \n\n\nIncome before income taxes and equity in earnings of non-consolidated affiliates \n19,559 \n\n7,445 \n\n18,135 \n\n727 \n\n\nIncome tax expense \n5,691 \n\n4,324 \n\n9,441 \n\n4,997 \n\n\nIncome (loss) before equity in earnings of non-consolidated affiliates \n13,868 \n\n3,121 \n\n8,694 \n\n(4,270) \n\n\nEquity in income (loss) of non-consolidated affiliates \n(4) \n\n(4) \n\n503 \n\n(447) \n\n\nNet income (loss) \n13,864 \n\n3,117 \n\n9,197 \n\n(4,717) \n\n\nNet (income) loss attributable to noncontrolling and redeemable noncontrolling interests \n(10,593) \n\n(2,464) \n\n(10,173) \n\n3,565 \n\n\nNet income (loss) attributable to Stagwell Inc. common shareholders \n$         3,271 \n\n$            653 \n\n$          (976) \n\n$       (1,152) \n\n\nEarnings (Loss) Per Common Share: \n\n\n\n\n\n\n\n\n\n   Basic \n$           0.03 \n\n$           0.01 \n\n$         (0.01) \n\n$         (0.01) \n\n\n   Diluted \n$           0.03 \n\n$              — \n\n$         (0.01) \n\n$         (0.01) \n\n\nWeighted Average Number of Common Shares Outstanding: \n\n\n\n\n\n\n\n\n\n   Basic  \n108,198 \n\n110,787 \n\n111,436 \n\n118,772 \n\n\n   Diluted \n112,190 \n\n265,006 \n\n111,436 \n\n274,864 \n\n\n\n\n\n\n\n\nSCHEDULE 2 \n\n\nSTAGWELL INC. \n\n\nUNAUDITED COMPONENTS OF NET REVENUE CHANGE \n\n\n(amounts in thousands) \n\n\n\n\n\n\n\n\nNet Revenue - Components of Change \n\n\n\n\n\nChange \n\n\n\nThree Months Ended September 30, 2023 \n\nForeign Currency \n\nNet Acquisitions (Divestitures) \n\nOrganic \n\nTotal Change \n\nThree Months Ended September 30, 2024 \n\nOrganic \n\nTotal \n\n\n\n\n\n\n\n\n\n\nIntegrated Agencies Network \n$        306,327 \n\n$               217 \n\n$               906 \n\n$         16,294 \n\n$         17,417 \n\n$       323,744 \n\n5.3 % \n\n5.7 % \n\n\nBrand Performance Network \n153,169 \n\n767 \n\n— \n\n2,984 \n\n3,751 \n\n156,920 \n\n1.9 % \n\n2.4 % \n\n\nCommunications Network \n62,416 \n\n79 \n\n2,970 \n\n20,755 \n\n23,804 \n\n86,220 \n\n33.3 % \n\n38.1 % \n\n\nAll Other \n12,952 \n\n(253) \n\n(263) \n\n873 \n\n357 \n\n13,309 \n\n6.7 % \n\n2.8 % \n\n\n\n$        534,864 \n\n$               810 \n\n$           3,613 \n\n$         40,906 \n\n$         45,329 \n\n$       580,193 \n\n7.6 % \n\n8.5 % \n\n\n\n\n\n\n\n\n\n\n\nNet Revenue - Components of Change \n\n\n\n\n\nChange \n\n\n\nNine Months Ended September 30, 2023 \n\nForeign Currency \n\nNet Acquisitions (Divestitures) \n\nOrganic \n\nTotal Change \n\nNine Months Ended September 30, 2024 \n\nOrganic \n\nTotal \n\n\n\n\n\n\n\n\n\n\nIntegrated Agencies Network \n$        930,660 \n\n$               200 \n\n$           2,408 \n\n$           5,118 \n\n$           7,726 \n\n$       938,386 \n\n0.5 % \n\n0.8 % \n\n\nBrand Performance Network \n459,291 \n\n2,145 \n\n2,252 \n\n12,902 \n\n$         17,299 \n\n476,590 \n\n2.8 % \n\n3.8 % \n\n\nCommunications Network \n177,032 \n\n(70) \n\n6,421 \n\n$         42,718 \n\n$         49,069 \n\n226,101 \n\n24.1 % \n\n27.7 % \n\n\nAll Other \n34,404 \n\n(822) \n\n(3,559) \n\n(4,061) \n\n(8,442) \n\n25,962 \n\n(11.8) % \n\n(24.5) % \n\n\n\n$     1,601,387 \n\n$           1,453 \n\n$           7,522 \n\n$         56,677 \n\n$         65,652 \n\n$    1,667,039 \n\n3.5 % \n\n4.1 % \n\n\n\n\n\n\n\n\n\n\n\n(1) See Non-GAAP Financial Measures section above for the definition of Adjusted EBITDA and Other items, net. \n\n\n\n\n\nNote: The Company made changes to its internal management and reporting structure in the first quarter of 2024, resulting in a change to its reportable segments (Networks). Specifically, certain agencies previously within the Brand Performance Network are now in the Integrated Agencies Network. Periods presented prior to the first quarter of 2024 have been recast to reflect the reclassification of certain reporting units (Brands) between operating segments. \n\n\n\n\n\n\n\n\nSCHEDULE 3 \n\n\nSTAGWELL INC. \n\n\nUNAUDITED SEGMENT OPERATING RESULTS \n\n\n(amounts in thousands) \n\n\n\n\n\nFor the Three Months Ended September 30, 2024 \n\n\n\n\n\n\nIntegrated Agencies Network \n\nBrand Performance Network \n\nCommunications Network \n\nAll Other \n\nCorporate \n\nTotal \n\n\nNet Revenue \n$     323,744 \n\n$        156,920 \n\n$                 86,220 \n\n$       13,309 \n\n$               — \n\n$    580,193 \n\n\nBillable costs  \n65,924 \n\n15,429 \n\n49,760 \n\n(25) \n\n— \n\n131,088 \n\n\nRevenue \n389,668 \n\n172,349 \n\n135,980 \n\n13,284 \n\n— \n\n711,281 \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nBillable costs \n65,924 \n\n15,429 \n\n49,760 \n\n(25) \n\n— \n\n131,088 \n\n\nStaff costs \n198,252 \n\n98,716 \n\n42,644 \n\n9,207 \n\n13,160 \n\n361,979 \n\n\nAdministrative costs \n31,593 \n\n22,600 \n\n9,034 \n\n3,978 \n\n2,351 \n\n69,556 \n\n\nUnbillable and other costs, net \n15,993 \n\n16,498 \n\n424 \n\n4,574 \n\n— \n\n37,489 \n\n\nAdjusted EBITDA (1) \n77,906 \n\n19,106 \n\n34,118 \n\n(4,450) \n\n(15,511) \n\n111,169 \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nStock-based compensation \n11,000 \n\n1,500 \n\n855 \n\n379 \n\n3,201 \n\n16,935 \n\n\nDepreciation and amortization \n19,878 \n\n7,295 \n\n3,023 \n\n2,573 \n\n3,275 \n\n36,044 \n\n\nDeferred acquisition consideration \n1,114 \n\n(6,949) \n\n6,778 \n\n(383) \n\n— \n\n560 \n\n\nOther items, net (1) \n3,664 \n\n8,076 \n\n1,432 \n\n98 \n\n2,581 \n\n15,851 \n\n\nOperating income (loss) \n$       42,250 \n\n$            9,184 \n\n$                 22,030 \n\n$       (7,117) \n\n$     (24,568) \n\n$      41,779 \n\n\n\n\n\n\n\n\n\n\n\n(1) See Non-GAAP Financial Measures section above for the definition of Adjusted EBITDA and Other items, net. \n\n\n\n\n\nNote: The Company made changes to its internal management and reporting structure in the first quarter of 2024, resulting in a change to its reportable segments (Networks). Specifically, certain agencies previously within the Brand Performance Network are now in the Integrated Agencies Network. Periods presented prior to the first quarter of 2024 have been recast to reflect the reclassification of certain reporting units (Brands) between operating segments. \n\n\n\n\n\n\n\n\nSCHEDULE 4 \n\n\nSTAGWELL INC. \n\n\nUNAUDITED SEGMENT OPERATING RESULTS \n\n\n(amounts in thousands) \n\n\n\n\n\nFor the Nine Months Ended September 30, 2024 \n\n\n\n\n\n\nIntegrated Agencies Network \n\nBrand Performance Network \n\nCommunications Network \n\nAll Other \n\nCorporate \n\nTotal \n\n\nNet Revenue \n$    938,386 \n\n$        476,590 \n\n$               226,101 \n\n$    25,962 \n\n$              — \n\n$ 1,667,039 \n\n\nBillable costs  \n189,134 \n\n86,966 \n\n109,195 \n\n174 \n\n— \n\n385,469 \n\n\nRevenue \n1,127,520 \n\n563,556 \n\n335,296 \n\n26,136 \n\n— \n\n2,052,508 \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nBillable costs \n189,134 \n\n86,966 \n\n109,195 \n\n174 \n\n— \n\n385,469 \n\n\nStaff costs \n579,979 \n\n296,411 \n\n123,039 \n\n24,635 \n\n35,421 \n\n1,059,485 \n\n\nAdministrative costs \n96,097 \n\n69,196 \n\n26,117 \n\n3,447 \n\n11,396 \n\n206,253 \n\n\nUnbillable and other costs, net \n56,301 \n\n46,677 \n\n1,270 \n\n9,465 \n\n— \n\n113,713 \n\n\nAdjusted EBITDA (1) \n206,009 \n\n64,306 \n\n75,675 \n\n(11,585) \n\n(46,817) \n\n287,588 \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nStock-based compensation \n25,170 \n\n4,988 \n\n2,731 \n\n729 \n\n5,308 \n\n38,926 \n\n\nDepreciation and amortization \n58,731 \n\n26,524 \n\n9,007 \n\n9,938 \n\n8,681 \n\n112,881 \n\n\nDeferred acquisition consideration \n5,690 \n\n(6,454) \n\n9,097 \n\n(383) \n\n— \n\n7,950 \n\n\nImpairment and other losses \n1,500 \n\n— \n\n— \n\n— \n\n215 \n\n1,715 \n\n\nOther items, net (1) \n13,204 \n\n16,363 \n\n2,104 \n\n702 \n\n4,203 \n\n36,576 \n\n\nOperating income (loss) \n$    101,714 \n\n$          22,885 \n\n$                 52,736 \n\n$  (22,571) \n\n$    (65,224) \n\n$       89,540 \n\n\n\n\n\n\n\n\n\n\n\n(1) See Non-GAAP Financial Measures section above for the definition of Adjusted EBITDA and Other items, net. \n\n\n\n\n\nNote: The Company made changes to its internal management and reporting structure in the first quarter of 2024, resulting in a change to its reportable segments (Networks). Specifically, certain agencies previously within the Brand Performance Network are now in the Integrated Agencies Network. Periods presented prior to the first quarter of 2024 have been recast to reflect the reclassification of certain reporting units (Brands) between operating segments. \n\n\n\n\n\n\n\n\nSCHEDULE 5 \n\n\nSTAGWELL INC. \n\n\nUNAUDITED SEGMENT OPERATING RESULTS \n\n\n(amounts in thousands) \n\n\n\n\n\nFor the Three Months Ended September 30, 2023 \n\n\n\n\n\n\nIntegrated Agencies Network \n\nBrand Performance Network \n\nCommunications Network \n\nAll Other \n\nCorporate \n\nTotal \n\n\nNet Revenue \n$    306,327 \n\n$         153,169 \n\n$                   62,416 \n\n$    12,952 \n\n$              — \n\n$    534,864 \n\n\nBillable costs  \n51,742 \n\n10,904 \n\n20,089 \n\n(26) \n\n— \n\n82,709 \n\n\nRevenue \n358,069 \n\n164,073 \n\n82,505 \n\n12,926 \n\n— \n\n617,573 \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nBillable costs \n51,742 \n\n10,904 \n\n20,089 \n\n(26) \n\n— \n\n82,709 \n\n\nStaff costs \n185,034 \n\n95,488 \n\n37,412 \n\n10,391 \n\n10,589 \n\n338,914 \n\n\nAdministrative costs \n30,983 \n\n20,580 \n\n7,626 \n\n1,849 \n\n1,301 \n\n62,339 \n\n\nUnbillable and other costs, net \n14,173 \n\n12,868 \n\n84 \n\n4,717 \n\n— \n\n31,842 \n\n\nAdjusted EBITDA (1) \n76,137 \n\n24,233 \n\n17,294 \n\n(4,005) \n\n(11,890) \n\n101,769 \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nStock-based compensation \n6,051 \n\n2,399 \n\n1,252 \n\n268 \n\n2,095 \n\n12,065 \n\n\nDepreciation and amortization \n22,817 \n\n8,971 \n\n2,784 \n\n2,138 \n\n2,120 \n\n38,830 \n\n\nDeferred acquisition consideration \n1,018 \n\n2,130 \n\n3,757 \n\n(504) \n\n— \n\n6,401 \n\n\nOther items, net (1) \n6,047 \n\n3,337 \n\n244 \n\n292 \n\n811 \n\n10,731 \n\n\nOperating income (loss) \n$      40,204 \n\n$             7,396 \n\n$                      9,257 \n\n$    (6,199) \n\n$    (16,916) \n\n$      33,742 \n\n\n\n\n\n\n\n\n\n\n\n(1) See Non-GAAP Financial Measures section above for the definition of Adjusted EBITDA and Other items. \n\n\n\n\n\nNote: The Company made changes to its internal management and reporting structure in the first quarter of 2024, resulting in a change to its reportable segments (Networks). Specifically, certain agencies previously within the Brand Performance Network are now in the Integrated Agencies Network. Periods presented prior to the first quarter of 2024 have been recast to reflect the reclassification of certain reporting units (Brands) between operating segments. \n\n\n\n\n\n\n\n\nSCHEDULE 6 \n\n\nSTAGWELL INC. \n\n\nUNAUDITED SEGMENT OPERATING RESULTS \n\n\n(amounts in thousands) \n\n\n\n\n\nFor the Nine Months Ended September 30, 2023 \n\n\n     ...\n     \n\n\n\nIntegrated Agencies Network \n\nBrand Performance Network \n\nCommunications Network \n\nAll Other \n\nCorporate \n\nTotal \n\n\nNet Revenue \n$    930,660 \n\n$        459,291 \n\n$                177,032 \n\n$    34,404 \n\n$              — \n\n$ 1,601,387 \n\n\nBillable costs  \n134,249 \n\n83,443 \n\n53,229 \n\n(26) \n\n— \n\n270,895 \n\n\nRevenue \n1,064,909 \n\n542,734 \n\n230,261 \n\n34,378 \n\n— \n\n1,872,282 \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nBillable costs \n134,249 \n\n83,443 \n\n53,229 \n\n(26) \n\n— \n\n270,895 \n\n\nStaff costs \n572,893 \n\n288,932 \n\n115,846 \n\n31,124 \n\n25,850 \n\n1,034,645 \n\n\nAdministrative costs \n93,000 \n\n64,163 \n\n25,096 \n\n1,244 \n\n13,343 \n\n196,846 \n\n\nUnbillable and other costs, net \n53,665 \n\n38,534 \n\n336 \n\n12,202 \n\n— \n\n104,737 \n\n\nAdjusted EBITDA (1) \n211,102 \n\n67,662 \n\n35,754 \n\n(10,166) \n\n(39,193) \n\n265,159 \n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nStock-based compensation \n15,470 \n\n3,840 \n\n2,177 \n\n427 \n\n12,701 \n\n34,615 \n\n\nDepreciation and amortization \n62,277 \n\n25,160 \n\n8,216 \n\n6,152 \n\n5,990 \n\n107,795 \n\n\nDeferred acquisition consideration \n8,118 \n\n1,112 \n\n3,403 \n\n(1,752) \n\n— \n\n10,881 \n\n\nImpairment and other losses \n10,562 \n\n— \n\n— \n\n— \n\n— \n\n10,562 \n\n\nOther items, net (1) \n13,822 \n\n8,493 \n\n1,337 \n\n1,079 \n\n5,338 \n\n30,069 \n\n\nOperating income (loss) \n$    100,853 \n\n$          29,057 \n\n$                  20,621 \n\n$  (16,072) \n\n$    (63,222) \n\n$       71,237 \n\n\n\n\n\n\n\n\n\n\n\n(1) See Non-GAAP Financial Measures section above for the definition of Adjusted EBITDA and Other items, net. \n\n\n\n\n\nNote: The Company made changes to its internal management and reporting structure in the first quarter of 2024, resulting in a change to its reportable segments (Networks). Specifically, certain agencies previously within the Brand Performance Network are now in the Integrated Agencies Network. Periods presented prior to the first quarter of 2024 have been recast to reflect the reclassification of certain reporting units (Brands) between operating segments. \n\n\n\n\n\n\n\n\nSCHEDULE 7 \n\n\nSTAGWELL INC. \n\n\nUNAUDITED RECONCILIATION OF ADJUSTED DILUTED EARNINGS PER SHARE (NON-GAAP MEASURE) \n\n\n(amounts in thousands, except per share amounts) \n\n\n\n\n\nFor the Three Months Ended September 30, 2024 \n\n\n\n\n\n\n\nGAAP \n\nAdjustments \n\nNon-GAAP \n\n\nNet income attributable to Stagwell Inc. common shareholders \n\n$              3,271 \n\n$            19,762 \n\n$            23,033 \n\n\nNet income attributable to Class C shareholders \n\n— \n\n36,060 \n\n36,060 \n\n\nNet income attributable to Stagwell Inc. and Class C shareholders and adjusted net income \n\n$              3,271 \n\n$            55,822 \n\n$            59,093 \n\n\n\n\n\n\n\n\n\n\n\nWeighted average number of common shares outstanding \n\n112,190 \n\n1,497 \n\n113,687 \n\n\nWeighted average number of common Class C shares outstanding \n\n— \n\n151,649 \n\n151,649 \n\n\nWeighted average number of shares outstanding \n\n112,190 \n\n153,146 \n\n265,336 \n\n\n\n\n\n\n\n\n\n\n\nDiluted EPS and Adjusted Diluted EPS \n\n$                0.03 \n\n\n\n$                0.22 \n\n\n\n\n\n\n\n\n\n\n\nAdjustments to Net income (1) \n\n\nAmortization \n\n\n\n$            28,659 \n\n\n\n\nStock-based compensation \n\n\n\n16,935 \n\n\n\n\nDeferred acquisition consideration \n\n\n\n560 \n\n\n\n\nOther items, net \n\n\n\n15,851 \n\n\n\n\n\n\n\n\n62,005 \n\n\n\n\nAdjusted tax expense \n\n\n\n(15,615) \n\n\n\n\n\n\n\n\n46,390 \n\n\n\n\nNet loss attributable to Class C shareholders \n\n\n\n9,432 \n\n\n\n\n\n\n\n\n$            55,822 \n\n\n\n\n\n\n\n\n\n\n\n\n\nAllocation of adjustments to Net income \n\n\n\n\n\n\n\n\nNet income attributable to Stagwell Inc. common shareholders - add-backs \n\n\n\n$            19,762 \n\n\n\n\n\n\n\n\n\n\n\n\n\nNet income attributable to Class C shareholders - add-backs \n\n\n\n26,628 \n\n\n\n\nNet income attributable to Class C shareholders \n\n\n\n9,432 \n\n\n\n\n\n\n\n\n36,060 \n\n\n\n\n\n\n\n\n$            55,822 \n\n\n\n\n\n\n\n\n\n\n\n\n\n(1) Adjusted Diluted EPS is defined within the Non-GAAP Financial Measures section of the Executive Summary. \n\n\n\n\n\n\n\n\nSCHEDULE 8 \n\n\nSTAGWELL INC. \n\n\nUNAUDITED RECONCILIATION OF ADJUSTED DILUTED EARNINGS PER SHARE (NON-GAAP MEASURE) \n\n\n(amounts in thousands, except per share amounts) \n\n\n\n\n\nFor the Nine Months Ended September 30, 2024 \n\n\n\n\n\n\n\nGAAP \n\nAdjustments \n\nNon-GAAP \n\n\nNet income (loss) attributable to Stagwell Inc. common shareholders \n\n$               (976) \n\n$            58,177 \n\n$            57,201 \n\n\nNet income attributable to Class C shareholders \n\n— \n\n83,442 \n\n83,442 \n\n\nNet income (loss) attributable to Stagwell Inc. and Class C and adjusted net income   \n\n$               (976) \n\n$          141,619 \n\n$          140,643 \n\n\n\n\n\n\n\n\n\n\n\nWeighted average number of common shares outstanding \n\n111,436 \n\n5,780 \n\n117,216 \n\n\nWeighted average number of common Class C shares outstanding \n\n— \n\n151,649 \n\n151,649 \n\n\nWeighted average number of shares outstanding \n\n111,436 \n\n157,429 \n\n268,865 \n\n\n\n\n\n\n\n\n\n\n\nDiluted EPS and Adjusted Diluted EPS \n\n$              (0.01) \n\n\n\n$                0.52 \n\n\n\n\n\n\n\n\n\n\n\nAdjustments to Net Income (loss) (1) \n\n\nAmortization \n\n\n\n$            91,870 \n\n\n\n\nImpairment and other losses \n\n\n\n1,715 \n\n\n\n\nStock-based compensation \n\n\n\n38,926 \n\n\n\n\nDeferred acquisition consideration \n\n\n\n7,950 \n\n\n\n\nOther items, net \n\n\n\n36,576 \n\n\n\n\n\n\n\n\n177,037 \n\n\n\n\nAdjusted tax expense \n\n\n\n(41,268) \n\n\n\n\n\n\n\n\n135,769 \n\n\n\n\nNet loss attributable to Class C shareholders \n\n\n\n5,850 \n\n\n\n\n\n\n\n\n$          141,619 \n\n\n\n\n\n\n\n\n\n\n\n\n\nAllocation of adjustments to net income (loss) 1 \n\n\nNet income attributable to Stagwell Inc. common shareholders - add-backs \n\n\n\n$            58,177 \n\n\n\n\n\n\n\n\n\n\n\n\n\nNet income attributable to Class C shareholders - add-backs \n\n\n\n77,592 \n\n\n\n\nNet income attributable to Class C shareholders \n\n\n\n5,850 \n\n\n\n\n\n\n\n\n83,442 \n\n\n\n\n\n\n\n\n$          141,619 \n\n\n\n\n\n\n\n\n\n\n\n\n\n(1) Adjusted Diluted EPS is defined within the Non-GAAP Financial Measures section of the Executive Summary. \n\n\n\n\n\n\n\n\nSCHEDULE 9 \n\n\nSTAGWELL INC. \n\n\nUNAUDITED RECONCILIATION OF ADJUSTED DILUTED EARNINGS PER SHARE (NON-GAAP MEASURE) \n\n\n(amounts in thousands, except per share amounts) \n\n\n\n\n\nFor the Three Months Ended September 30, 2023 \n\n\n\n\n\n\n\nGAAP \n\nAdjustments \n\nNon-GAAP \n\n\nNet income attributable to Stagwell Inc. common shareholders \n\n$                 653 \n\n$            20,844 \n\n$            21,497 \n\n\nNet income attributable to Class C shareholders \n\n33 \n\n26,530 \n\n26,563 \n\n\nNet income attributable to Stagwell Inc. and Class C and adjusted net income \n\n$                 686 \n\n$            47,374 \n\n$            48,060 \n\n\n\n\n\n\n\n\n\n\n\nWeighted average number of common shares outstanding \n\n113,357 \n\n5,663 \n\n119,020 \n\n\nWeighted average number of common Class C shares outstanding \n\n151,649 \n\n— \n\n151,649 \n\n\nWeighted average number of shares outstanding \n\n265,006 \n\n5,663 \n\n270,669 \n\n\n\n\n\n\n\n\n\n\n\nDiluted EPS and Adjusted Diluted EPS \n\n$                    — \n\n\n\n$                0.18 \n\n\n\n\n\n\n\n\n\n\n\nAdjustments to Net income (1) \n\n\nAmortization \n\n\n\n$            31,182 \n\n\n\n\nStock-based compensation \n\n\n\n12,065 \n\n\n\n\nDeferred acquisition consideration \n\n\n\n6,401 \n\n\n\n\nOther items, net \n\n\n\n10,731 \n\n\n\n\n\n\n\n\n60,379 \n\n\n\n\nAdjusted tax expense \n\n\n\n(13,005) \n\n\n\n\n\n\n\n\n$            47,374 \n\n\n\n\n\n\n\n\n\n\n\n\n\n(1) Adjusted Diluted EPS is defined within the Non-GAAP Financial Measures section of the Executive Summary. \n\n\n\n\n\n\n\n\nSCHEDULE 10 \n\n\nSTAGWELL INC. \n\n\nUNAUDITED RECONCILIATION OF ADJUSTED DILUTED EARNINGS PER SHARE (NON-GAAP MEASURE) \n\n\n(amounts in thousands, except per share amounts) \n\n\n\n\n\nFor the Nine Months Ended September 30, 2023 \n\n\n\n\n\n\n\nGAAP \n\nAdjustments \n\nNon-GAAP \n\n\nNet income (loss) attributable to Stagwell Inc. common shareholders \n\n$            (1,152) \n\n$            57,927 \n\n$            56,775 \n\n\nNet income attributable to Class C shareholders \n\n(2,702) \n\n73,725 \n\n71,023 \n\n\nNet income (loss) attributable to Stagwell Inc. and Class C and adjusted net income   \n\n$            (3,854) \n\n$          131,652 \n\n$          127,798 \n\n\n\n\n\n\n\n\n\n\n\nWeighted average number of common shares outstanding \n\n118,772 \n\n10,736 \n\n129,508 \n\n\nWeighted average number of common Class C shares outstanding \n\n156,092 \n\n— \n\n156,092 \n\n\nWeighted average number of shares outstanding \n\n274,864 \n\n10,736 \n\n285,600 \n\n\n\n\n\n\n\n\n\n\n\nDiluted EPS and Adjusted Diluted EPS \n\n$              (0.01) \n\n\n\n$                0.45 \n\n\n\n\n\n\n\n\n\n\n\nAdjustments to Net income (loss) (1) \n\n\nAmortization \n\n\n\n$            86,605 \n\n\n\n\nImpairment and other losses \n\n\n\n10,562 \n\n\n\n\nStock-based compensation \n\n\n\n34,615 \n\n\n\n\nDeferred acquisition consideration \n\n\n\n10,881 \n\n\n\n\nOther items, net \n\n\n\n30,069 \n\n\n\n\n\n\n\n\n172,732 \n\n\n\n\nAdjusted tax expense \n\n\n\n(41,080) \n\n\n\n\n\n\n\n\n$          131,652 \n\n\n\n\n\n\n\n\n\n\n\n\n\n(1) Adjusted Diluted EPS is defined within the Non-GAAP Financial Measures section of the Executive Summary. \n\n\n\n\n\n\n\n\nSCHEDULE 11 \n\n\nSTAGWELL INC. \n\n\nUNAUDITED CONSOLIDATED BALANCE SHEETS \n\n\n(amounts in thousands) \n\n\n\n\n\n\n\n\n\nSeptember 30, 2024 \n\nDecember 31, 2023 \n\n\n\n\n\n\n\n\nASSETS \n\n\n\n\n\nCurrent Assets \n\n\n\n\n\nCash and cash equivalents \n$                  145,807 \n\n$                  119,737 \n\n\nAccounts receivable, net \n716,394 \n\n697,178 \n\n\nExpenditures billable to clients \n137,443 \n\n114,097 \n\n\nOther current assets \n108,187 \n\n94,054 \n\n\nTotal Current Assets \n1,107,831 \n\n1,025,066 \n\n\nFixed assets, net \n77,766 \n\n77,825 \n\n\nRight-of-use assets - operating leases \n223,194 \n\n254,278 \n\n\nGoodwill \n1,521,005 \n\n1,498,815 \n\n\nOther intangible assets, net \n769,596 \n\n818,220 \n\n\nOther assets \n97,425 \n\n92,843 \n\n\nTotal Assets \n$               3,796,817 \n\n$               3,767,047 \n\n\nLIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS (\"RNCI\"), AND SHAREHOLDERS' EQUITY \n\n\n\n\n\nCurrent Liabilities \n\n\n\n\n\nAccounts payable \n$                  338,649 \n\n$                  414,980 \n\n\nAccrued media \n206,512 \n\n291,777 \n\n\nAccruals and other liabilities \n210,146 \n\n233,046 \n\n\nAdvance billings \n338,789 \n\n301,674 \n\n\nCurrent portion of lease liabilities - operating leases \n61,897 \n\n65,899 \n\n\nCurrent portion of deferred acquisition consideration \n8,618 \n\n66,953 \n\n\nTotal Current Liabilities \n1,164,611 \n\n1,374,329 \n\n\nLong-term debt \n1,463,925 \n\n1,145,828 \n\n\nLong-term portion of deferred acquisition consideration \n53,055 \n\n34,105 \n\n\nLong-term lease liabilities - operating leases \n250,388 \n\n281,307 \n\n\nDeferred tax liabilities, net \n41,728 \n\n40,509 \n\n\nOther liabilities \n60,220 \n\n54,905 \n\n\nTotal Liabilities \n3,033,927 \n\n2,930,983 \n\n\nRedeemable Noncontrolling Interests \n18,618 \n\n10,792 \n\n\nCommitments, Contingencies and Guarantees \n\n\n\n\n\nShareholders' Equity \n\n\n\n\n\nCommon shares - Class A & B \n110 \n\n118 \n\n\nCommon shares - Class C \n2 \n\n2 \n\n\nPaid-in capital \n287,941 \n\n348,494 \n\n\nRetained earnings \n11,416 \n\n21,148 \n\n\nAccumulated other comprehensive loss \n(13,057) \n\n(13,067) \n\n\nStagwell Inc. Shareholders' Equity \n286,412 \n\n356,695 \n\n\nNoncontrolling interests \n457,860 \n\n468,577 \n\n\nTotal Shareholders' Equity \n744,272 \n\n825,272 \n\n\nTotal Liabilities, Redeemable Noncontrolling Interests and Shareholders' Equity \n$               3,796,817 \n\n$               3,767,047 \n\n\n\n\n\n\n\n\nSCHEDULE 12 \n\n\nSTAGWELL INC. \n\n\nUNAUDITED SUMMARY CASH FLOW DATA \n\n\n(amounts in thousands) \n\n\n\n\n\n\nNine Months Ended September 30, \n\n\n\n2024 \n\n2023 \n\n\nCash flows from operating activities: \n\n\n\n\n\nNet income  \n$                     9,197 \n\n$                   (4,717) \n\n\nAdjustments to reconcile net income to cash used in operating activities: \n\n\n\n\n\nStock-based compensation \n38,926 \n\n34,615 \n\n\nDepreciation and amortization \n112,881 \n\n107,795 \n\n\nAmortization of right-of-use lease assets and lease liability interest \n58,052 \n\n57,583 \n\n\nImpairment and other losses \n1,715 \n\n10,562 \n\n\nDeferred income taxes \n(3,446) \n\n(5,635) \n\n\nAdjustment to deferred acquisition consideration \n7,950 \n\n10,881 \n\n\nOther, net \n6,371 \n\n(4,248) \n\n\nChanges in working capital: \n\n\n\n\n\nAccounts receivable \n(6,212) \n\n(25,405) \n\n\nExpenditures billable to clients \n(15,705) \n\n(36,217) \n\n\nOther assets \n(9,068) \n\n6,539 \n\n\nAccounts payable \n(94,160) \n\n(49,204) \n\n\nAccrued expenses and other liabilities \n(121,647) \n\n(152,216) \n\n\nAdvance billings \n23,984 \n\n(1,759) \n\n\nCurrent portion of lease liabilities - operating leases \n(63,956) \n\n(67,095) \n\n\nDeferred acquisition related payments \n(14,112) \n\n(9,021) \n\n\nNet cash used in operating activities \n(69,230) \n\n(127,542) \n\n\nCash flows from investing activities: \n\n\n\n\n\nCapital expenditures \n(16,728) \n\n(12,205) \n\n\nAcquisitions, net of cash acquired \n(23,781) \n\n(6,678) \n\n\nCapitalized software \n(19,320) \n\n(19,026) \n\n\nOther \n(6,656) \n\n(6,939) \n\n\nNet cash used in investing activities \n(66,485) \n\n(44,848) \n\n\nCash flows from financing activities: \n\n\n\n\n\nRepayment of borrowings under revolving credit facility \n(1,176,000) \n\n(1,250,500) \n\n\nProceeds from borrowings under revolving credit facility \n1,492,000 \n\n1,562,500 \n\n\nShares repurchased and cancelled \n(101,249) \n\n(203,958) \n\n\nDistributions to noncontrolling interests \n(23,583) \n\n(24,538) \n\n\nPayment of deferred consideration \n(28,721) \n\n(31,666) \n\n\nPurchase of noncontrolling interest \n(3,316) \n\n— \n\n\nDebt issuance costs \n— \n\n(150) \n\n\nNet cash provided by financing activities \n159,131 \n\n51,688 \n\n\nEffect of exchange rate changes on cash and cash equivalents \n2,654 \n\n(1,182) \n\n\nNet increase (decrease) in cash and cash equivalents \n26,070 \n\n(121,884) \n\n\nCash and cash equivalents at beginning of period \n119,737 \n\n220,589 \n\n\nCash and cash equivalents at end of period \n$                 145,807 \n\n$                   98,705 \n\n\n\n\n\n  \n\n View original content to download multimedia:https://www.prnewswire.com/news-releases/stagwell-inc-nasdaq-stgw-reports-results-for-the-three-and-nine-months-ended-september-30-2024-302298720.html\nSOURCE Stagwell Inc.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0}}}