Stagwell Inc. Reports Significant Growth in FY 2024 with Strong Q4 Performance

Stagwell Inc. (NASDAQ: STGW) has announced its financial performance for the three and twelve months ending December 31, 2024, showcasing an impressive revenue growth of 20% year-over-year (YoY) in Q4. With digital transformation initiatives at the forefront, the company achieved a 22% growth in this particular sector, emphasizing its strategic shift in the marketing landscape.

In the fourth quarter, Stagwell experienced a net revenue growth of 14%, alongside a notable organic net revenue increase of 10%. The company reported total revenues of $789 million for Q4, while the full-year revenue surged to $2.8 billion, marking a 12% increase compared to the previous year. This performance is attributed to the successful implementation of digital strategies that align with the evolving demands of clients in today's digital-first marketplace.

During the same period, Stagwell recorded a net income attributable to common shareholders of $3 million, compared to $1 million for the same quarter last year. The adjusted EBITDA for Q4 stood at $123 million, representing a remarkable 30% increase from the prior year, and the adjusted EBITDA margin reached 20% on net revenue. Furthermore, earnings per share (EPS) for Q4 was reported at $0.03 while adjusted EPS was at $0.24, reflecting substantial improvements in operational efficiency.

As part of its ongoing growth strategy, Stagwell secured net new business of $102 million in Q4, contributing to a record $382 million in net new business for the last twelve months (LTM). This marks the eighth consecutive quarter of record LTM net new business, showcasing the company's competitive edge in attracting and retaining clients. Mark Penn, Chairman and CEO of Stagwell, remarked, "2024 was a breakthrough year for Stagwell and has fueled a strong start to 2025. We re-established ourselves as the fastest growing business in the industry and accelerated rapidly in Digital Transformation."

Looking ahead, Stagwell has introduced guidance for 2025, anticipating a total net revenue growth of approximately 8%. The adjusted EBITDA is projected to be between $410 million and $460 million, with an expected free cash flow conversion exceeding 45%. This forward-looking strategy was communicated through their recent investor day announcement set for April 2, 2025.

Stagwell’s Chairman emphasized the importance of strategic investments the company made during 2024, which not only enhanced their capabilities but also expanded their geographical reach in the competitive marketing landscape. CFO Frank Lanuto commented on the double-digit revenue growth across four of their five principal capabilities, indicating their effective management and operations.

As Stagwell continues to drive innovation and leverage technology, it remains poised to navigate the challenges and opportunities of the future marketing landscape. With a focus on integrating creativity with technology, Stagwell aims to provide cutting-edge solutions to the world’s most ambitious brands. This strategic approach is set to propel Stagwell and its clients into a prosperous future, making them a key player in transforming the marketing industry.

To learn more about Stagwell’s offerings and developments, explore their official website and stay updated on their progress as they prepare for another impactful year ahead.