Stagwell Inc. (NASDAQ:STGW) Q2 2022 Earnings Conference Call August 4, 2022 8:30 AM ET
Company Participants
Michaela Pewarski - IR
Mark Penn - Chairman & CEO
Frank Lanuto - CFO
Michaela Pewarski
Good morning, everyone. Welcome to the Stagwell Inc. webcast for the second quarter of 2022.
On today's webcast, Mark Penn, Chairman and Chief Executive Officer, will first provide an overview of Stagwell's second quarter, followed by a full review of the financial results from our Chief Financial Officer, Frank Lanuto. We will then take questions which you can submit through the chat function on the video webcast portal.
Before we begin our prepared remarks, I'd like to remind you that the following discussion contains forward-looking statements and non-GAAP financial data. Forward-looking statements about the company, including those relating to earnings guidance, are subject to uncertainties referenced in the cautionary statements included in our earnings release and slide presentation, and are further detailed in the company's SEC filings. Unless otherwise stated, comparisons to prior year periods and historical results discussed on this webcast will be pro forma for the combination giving full effect to historical results as if the combination had been completed on January 1, 2020. For your reference, we posted an investor presentation to our website at stagwellglobal.com. We also refer you to this morning's press release and slide presentation for definitions, explanations and reconciliations of non-GAAP financial data.
And now to get started, I'd like to turn it over to our Chairman and Chief Executive Officer, Mark Penn.
Mark Penn
Thank you, Michaela. Good morning, and thank you for joining us to discuss Stagwell's Second Quarter 2022 Results. Stagwell delivered another quarter of strong growth with strong margins, keeping us on track with our full year plan of 18% to 22% organic growth. We're demonstrating that our combination of creativity and technology is working, and helping us expand our market share. We delivered industry-leading organic net revenue growth of 16% in the face of our toughest quarterly comparisons for the year. We achieved this 16% growth on top of 29% in 2Q 2021, bringing our 2-year stack to 45%.
Our digital capabilities propelled our growth, increasing 28% organically on top of the last year's 39% organic growth in the second quarter. Digital services contributed to 57% of net revenue and 62% of adjusted EBITDA in the quarter. Our unique mix of digital services is contributing to growth significantly higher than legacy companies in the industry, and will continue to propel us higher.