Stagwell Inc. Files Q2 2024 10-Q Report

TL;DR

Stagwell's Q2 2024 10-Q is in. Check financials for the latest.

AI Summary

Stagwell Inc. filed its 10-Q for the period ending June 30, 2024. The filing details financial performance and operational updates for the second quarter of 2024. Key financial figures and business segments are presented, reflecting the company's ongoing activities in the advertising and services sector.

Why It Matters

This report provides investors and analysts with a detailed look at Stagwell's financial health and operational performance during the second quarter of 2024, influencing investment decisions.

Risk Assessment

Risk Level: medium — Quarterly reports can reveal shifts in financial performance, debt levels, or operational challenges that may impact stock price.

Key Numbers

• 20240630 — Reporting Period End Date (Indicates the end of the fiscal quarter covered by the report.)
• 20240801 — Filing Date (The date the 10-Q was officially submitted to the SEC.)

Key Players & Entities

• Stagwell Inc. (company) — Filer of the 10-Q report
• 20240630 (date) — End of the reporting period
• 20240801 (date) — Filing date of the report
• New York (location) — City of Stagwell's business and mailing address
• MDC Stagwell Holdings Inc (company) — Former company name

FAQ

Key Financial Figures

• $0.001 — stered Class A Common Stock, par value $0.001 per share STGW NASDAQ Indicate by che
• $19.1 million — rolling interests include approximately $19.1 million to Class C shareholders See Notes to

Filing Documents

• stgw-20240630.htm (10-Q) — 2507KB
• non-employeedirectorcompen.htm (EX-10.1) — 14KB
• stgw-2024630xex311xmpenn.htm (EX-31.1) — 12KB
• stgw-2024630xex312xflanuto.htm (EX-31.2) — 12KB
• stgw-2024630xex321xmpenn.htm (EX-32.1) — 7KB
• stgw-2024630xex322xflanuto.htm (EX-32.2) — 7KB
• stgw-20240630_g1.jpg (GRAPHIC) — 9KB
• 0000876883-24-000022.txt ( ) — 9554KB
• stgw-20240630.xsd (EX-101.SCH) — 60KB
• stgw-20240630_cal.xml (EX-101.CAL) — 76KB
• stgw-20240630_def.xml (EX-101.DEF) — 355KB
• stgw-20240630_lab.xml (EX-101.LAB) — 614KB
• stgw-20240630_pre.xml (EX-101.PRE) — 498KB
• stgw-20240630_htm.xml (XML) — 1253KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements 3 Unaudited Consolidated Statements of Operations for the Three and Six Months Ended June 30 , 2024 and 2023 3 Unaudited Consolidated Statements of Comprehensive Income (Loss) for the Three and Six Months Ended June 30, 2024 and 2023 4 Unaudited Consolidated Balance Sheets as of June 30 , 2024 and December 31, 202 3 5 Unaudited Consolidated Statements of Cash Flows for the Six Months Ended June 30 , 2024 and 202 3 6 Unaudited Consolidated Statements of Shareholders' Equity for the Three and Six Months Ended June 30 , 2024 and 202 3 8 Notes to the Unaudited Consolidated Financial Statements 12

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 33

Quantitative and Qualitative Disclosures about Market Risk

Item 3. Quantitative and Qualitative Disclosures about Market Risk 63

Controls and Procedures

Item 4. Controls and Procedures 63

OTHER INFORMATION

PART II. OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 64

Risk Factors

Item 1A. Risk Factors 64

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 64

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 65

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 65

Other Information

Item 5. Other Information 65

Exhibits

Item 6. Exhibits 65

Signatures

Signatures 67 Table of Contents EXPLANATORY NOTE References in this Quarterly Report on Form 10-Q to "Stagwell," "we," "us," "our" and the "Company" refer to Stagwell Inc. and, unless the context otherwise requires or otherwise is expressly stated, its subsidiaries. All dollar amounts are stated in U.S. dollars unless otherwise stated.

Forward-Looking Statements

Forward-Looking Statements This 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. Forward-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 assu

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements STAGWELL INC. AND SUBSIDIARIES UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS (amounts in thousands, except per share amounts) Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Revenue $ 671,168 $ 632,265 $ 1,341,227 $ 1,254,709 Operating Expenses Cost of services 438,912 402,431 883,438 816,329 Office and general expenses 168,133 162,522 331,476 321,358 Depreciation and amortization 42,001 35,488 76,837 68,965 Impairment and other losses 215 10,562 1,715 10,562 649,261 611,003 1,293,466 1,217,214 Operating Income 21,907 21,262 47,761 37,495 Other income (expenses): Interest expense, net ( 23,533 ) ( 23,680 ) ( 44,498 ) ( 41,869 ) Foreign exchange, net ( 1,355 ) ( 1,478 ) ( 3,613 ) ( 2,148 ) Other, net 193 ( 416 ) ( 1,074 ) ( 196 ) ( 24,695 ) ( 25,574 ) ( 49,185 ) ( 44,213 ) Loss before income taxes and equity in earnings of non-consolidated affiliates ( 2,788 ) ( 4,312 ) ( 1,424 ) ( 6,718 ) Income tax expense 1,165 437 3,750 673 Loss before equity in earnings of non-consolidated affiliates ( 3,953 ) ( 4,749 ) ( 5,174 ) ( 7,391 ) Equity in income (loss) of non-consolidated affiliates ( 1 ) ( 216 ) 507 ( 443 ) Net loss ( 3,954 ) ( 4,965 ) ( 4,667 ) ( 7,834 ) Net loss attributable to noncontrolling and redeemable noncontrolling interests 989 1,771 420 6,029 Net loss attributable to Stagwell Inc. common shareholders $ ( 2,965 ) $ ( 3,194 ) $ ( 4,247 ) $ ( 1,805 ) Earnings (Loss) Per Common Share: Basic $ ( 0.03 ) $ ( 0.03 ) $ ( 0.04 ) $ ( 0.01 ) Diluted $ (0.03) $ ( 0.03 ) $ (0.04) $ ( 0.01 ) Weighted Average Number of Common Shares Outstanding: Basic 113,484 115,400 113,059 120,272 Diluted 113,484 115,400 113,059 120,272 See Notes to the Unaudited Consolidated Financial Statements . 3 Table of Contents STAGWELL INC. AND SUBSIDIARIES UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (amounts in thousands) Three Months Ended June 30, Six Months End

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