Stagwell Inc. (NASDAQ:STGW) Q3 2023 Results Earnings Conference Call November 6, 2023 8:30 AM ET

Company Participants

Ben Allanson - Director, Investor Relations

Mark Penn - Chairman and Chief Executive Officer

Frank Lanuto - Chief Financial Officer

Conference Call Participants

Ben Allanson

Good morning from Stagwell's offices in Miami, Florida. And welcome to Stagwell Inc's Earnings Webcast for Q3 2023. My name is Ben Allanson and I lead the Investor Relations function here at Stagwell.

With me today are Mark Penn, Stagwell's Chairman and Chief Executive Officer, and Frank Lanuto, the Chief Financial Officer. Mark will provide a business update and Frank will share a financial review. After the prepared remarks, we will open the floor for Q&A. You're welcome to submit questions through the chat function.

Before we begin, I'd like to remind you that the following remarks include forward-looking statements and non-GAAP financial data. Forward-looking statements about the company, including those related to earnings guidance, are subject to uncertainties and risk factors addressed in our earnings release, slide presentation and the company's SEC filings.

Please refer to our website, stagwellglobal.com/investors, for an investor presentation and additional resources. This morning's press release and slide deck provide definitions, explanations and reconciliations of non-GAAP financial data.

And with that, I'd like to turn the call over to our Chairman and CEO, Mark Penn.

Mark Penn

Thank you, Ben. And thank you, everyone, joining us for our earnings call. Our company is emerging from a more challenging economic environment this year stronger and more nimble than ever and poised to return to growth. This quarter demonstrates that we have our costs under control as we invest in expanding our digital and global footprint.

2023 threw a number of curveballs at US – tech companies that engaged in mass firings and cutbacks, which adversely affected our digital transformation business; a banking crisis that knocked out the First Republic Bank, a significant client; a B2B recession as clients held back marketing and digital projects, fearing a recession that was always around the corner; rising interest rates; an auto strike that froze auto marketing; and a writers' strike in Hollywood that downed our entertainment research business.

Throughout this, we stayed on our mission, bringing costs in line, installing central data and information systems, expanding our presence and footprint in the industry, winning new business, and now just about all of those negative factors are in retreat, and we've returned to earning over $100 million of EBITDA a quarter, even in a low point of the political cycle.