Stagwell Inc. (NASDAQ:STGW) Q2 2024 Earnings Conference Call August 1, 2024 8:30 AM ET

Company Participants

Ben Allanson - Investor Relations
Mark Penn - Chairman & Chief Executive Officer
Frank Lanuto - Chief Financial Officer

Conference Call Participants

Jason Kreyer - Craig-Hallum
Mike Ng - Goldman
Cameron McVeigh - Morgan Stanley
Mark Zgutowicz - Benchmark
Jeff Van Sinderen - B. Riley

Ben Allanson

Good morning from Stagwell’s global headquarters in One World Trade Center, New York, and welcome to Stagwell Inc.’s earnings webcast for the Second Quarter of 2024. 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 are 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. Thank you to everyone joining us for our earnings call. The state of the Stagwell business is strong and getting stronger. We’re on the verge of renewed growth spurt as new business is climbing, client pullbacks seem over and the political season is heating up. The results for first half of this year puts us in solid shape to make or exceed guidance for the year as multiple sizable wins occurred late in the second quarter and in the first month of the third quarter that significantly strengthened our position for H2.

Importantly, the industry and its consultants and gatekeepers are now beginning to view Stagwell differently. They see us increasingly as a full on competitor to the majors, and we are receiving far more opportunities that are in the $10 million-plus range. Last year, by this time, we had one. This year, we’ve had 11 of them. We are also very much a tech company’s tech company, and our client roster includes the biggest names and technology collaborating with us on how they can integrate AI into their consumer experiences. The result is a record smashing $113 million of net new business this quarter and LTM net new business of $324 million, significantly ahead of expectations.