NEW YORK, May 2, 2023 /PRNewswire/ — Stagwell (NASDAQ: STGW), the challenger network built to transform marketing, released its 2022 Annual Report, highlighting six consecutive quarters of double-digit growth powered by digital acceleration across core segments of Stagwell’s business, and a record year of net new business and account expansions with blue-chip global clients in every sector. Download the report here.
“Our growth is a reflection of our guiding thesis that every company needs to be a digital marketing company, or risk getting left behind, and nearly two years after our inception, we’re leading the world’s most notable brands through the global transition into the digital economy,” said Stagwell Chairman and CEO Mark Penn. “This forward-looking approach has allowed us to innovate for the future with game-changing augmented reality (AR) and artificial intelligence (AI) products. We continue to grow and transform our business and the industry; looking ahead, we expect more growth, innovation, and an expanded market share.”
Drivers of Growth in 2022
Penn’s annual CEO letter discusses Stagwell’s 2022 financial performance driven by:
- Digital acceleration: Stagwell is the only global marketing network with a majority-digital revenue services mix, with 57% of FY22 revenue hailing from “high-growth digital services” including digital transformation (up 33% in 2022), performance media and data (up 18% in 2022), and consumer insights and strategy (up 32%).
- Maturing into a truly global network: With expansion through strategic acquisitions, the opening of regional hubs and offices in Asia-Pacific and Latin America, and partnerships with affiliates to fill regional gaps, Stagwell’s scaled operations resulted in FY22 international revenue that grew twice as fast as domestic revenue.
- Full-network integrated services: Further alignment of Stagwell’s core integrated services networks – the Anomaly Alliance, Brand Performance Network, Constellation, Code and Theory Network, and the Doner Partners Network – enabled collaboration between agencies, each leveraging complementary capabilities to win larger pieces of business and service more complex accounts.
- Prudent financial management: Controlled labor costs, the benefits of the even-year advocacy cycle, and a reduced comp-to-net revenue ratio resulted in $270M of free cash flow, driving Stagwell’s debt ratio down significantly below the previous target of 2.5x to 2.17x Adjusted EBITDA.
Penn also discusses advancements in the Stagwell Marketing Cloud (SMC), the company’s proprietary suite of SaaS solutions powering research, communications, and media activation for in-house marketers. With investments in the frontiers of marketing technology, including the development of original products fueling augmented reality and artificial intelligence, Stagwell sees SMC as a key part of the company’s future strategy.
To read the full report, please visit Stagwell’s website. Viewers can use QR codes throughout the document to explore referenced case studies.
Stagwell is the challenger network built to transform marketing. We deliver scaled creative performance for the world’s most ambitious brands, connecting culture-moving creativity with leading-edge technology to harmonize the art and science of marketing. Led by entrepreneurs, our 13,000+ specialists in 34+ countries are unified under a single purpose: to drive effectiveness and improve business results for their clients. Join us at www.stagwellglobal.com.
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SOURCE Stagwell Inc.