Originally Released On

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Contact:

Kara Gelber

pr@stagwellglobal.com 

ARound’s Stadium-Level Technology Transforms the Fan Experience for Sports Teams, Audiences, and Brands

MINNEAPOLIS, August 26 – ARound, the leader in large-scale augmented reality (AR) experiences that is part of Stagwell (NASDAQ: STGW), today launched a groundbreaking in-stadium AR experience for Minnesota United FC in partnership with Target. This marks the first integration of stadium AR technology into an MLS pregame celebration, setting a new standard for fan engagement at Allianz Field.

Building on successful partnerships with the MLB’s Minnesota Twins, NBA’s Cleveland Cavaliers, and NFL’s Los Angeles Rams, ARound’s latest initiative is a significant step in expanding its presence in live sports. Fans continue to be highly engaged with existing ARound experiences, with users interacting for an average of over 15 minutes per game.

“We are excited to bring this immersive AR experience to MLS and fans nationwide,” said Josh Beatty, Founder and CEO of ARound. “These new experiences merge physical and digital worlds in an unprecedented display of team spirit and innovation, bringing fans right into the action.

Starting August 24, 2024 and continuing throughout the season, ARound will bring to life a new Minnesota United tradition, “Loons Liftoff.” This experience allows fans to hit targets and collect points as they work as a community to summon “The Dethloon,” a nod to Minnesota United’s fan culture and beloved mascot. Participants can also scan a QR code for a chance to win a Target gift card.

“This collaboration with ARound and Target exemplifies our commitment to innovation and community,” said Evan Entler, Vice President of Digital Media at Minnesota United. “We’re excited to see how fans react to this unique blend of tradition and cutting-edge technology.”

About ARound

ARound is a first-of-its-kind stadium-level shared augmented reality platform and is part of the Stagwell Marketing Cloud, a proprietary suite of SaaS solutions built for the modern marketer. ARound keeps audiences engaged by capturing their attention through immersive, interactive and shared experiences with fellow fans across the venue. Where other AR products offer isolating, singular experiences, ARound’s massive multi-user AR – which uses 3D spatial computing to localize content – redefines what it means to be part of a connected fan experience. It was the winner of Stagwell’s annual innovation competition which invests in new product ideas proposed by the network’s 13,000+ employees. ARound and the Stagwell Marketing Cloud are a part of Stagwell (NASDAQ: STGW), the challenger network built to transform marketing.

About Minnesota United FC

Minnesota United FC is a professional soccer team based in Minneapolis, Minnesota, competing in Major League Soccer (MLS). Known for their passionate fanbase and strong community ties, Minnesota United FC embodies the spirit of soccer in the North.

About Target

Target Corporation is a leading American retailer headquartered in Minneapolis, Minnesota. Known for its community involvement and innovative partnerships, Target continues to enhance the consumer experience through cutting-edge technology and creative collaborations.

Contact:

Kara Gelber

pr@stagwellglobal.com 

Originally Released On

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Contact:

Ben Allanson ir@stagwellglobal.com 

Management to appear at events hosted by Citi, Benchmark, Goldman Sachs, B. Riley and Deutsche Bank

NEW YORK, Aug. 22, 2024 /PRNewswire/ — Stagwell Inc. (NASDAQ: STGW), the challenger network built to transform marketing, today announced its participation in several investor conferences throughout September 2024. 

• September 4: Citi 2024 Global Technology Conference in New York City – Management will be available for 1×1 meetings.
• September 5: Benchmark 11th Annual TMT One-on-One Conference in New York City – Management will be available for 1×1 meetings.
• September 10: Goldman Sachs Communacopia in San Francisco – Chairman and CEO Mark Penn will host a fireside chat and be available for 1×1 meetings.
• September 12: B. Riley Securities 7th Annual Consumer and TMT Conference in New York City – Management will host be available for 1×1 meetings.
• September 25: Deutsche Bank Leveraged Finance Conference – Phoenix – Chief Financial Officer Frank Lanuto will be available for 1×1 meetings.

Visit this page to view upcoming investor events and programming from Stagwell. Reach out to ir@stagwellglobal.com with questions.

About Stagwell
Stagwell (NASDAQ: STGW) 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 specialists in 34+ countries are unified under a single purpose: to drive effectiveness and improve business results for their clients.  www.stagwellglobal.com.

IR Contact:

Ben Allanson
ir@stagwellglobal.com 

NEW YORK, Aug. 16, 2024 /PRNewswire/ — Stagwell Inc. (NASDAQ: STGW), the challenger network built to transform marketing, will host a virtual fireside chat at the Rosenblatt Securities 4^th Annual Technology Summit on August 20, 2024. The session will feature Mark Penn, Chairman and CEO, discussing the impact of AI on marketing innovation, as well as product development within the company’s AI-enabled Stagwell Marketing Cloud. Management will be available for 1×1 meetings with investors upon request.

Visit this page to view upcoming investor events and programming from Stagwell. Reach out to ir@stagwellglobal.com with questions.

About Stagwell
Stagwell (NASDAQ: STGW) 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 specialists in 34+ countries are unified under a single purpose: to drive effectiveness and improve business results for their clients.  www.stagwellglobal.com.

Originally Released On

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Contact:

Chris Iles

chris.iles@startribune.com

Stagwell’s Code and Theory, Colle McVoy Lead Digital and Brand Relaunch of The Minnesota Star Tribune

Minnesota’s biggest media outlet announces new platform at a vital time for journalism

MINNEAPOLIS, Aug. 19, 2024 /PRNewswire/ — The Minnesota Star Tribune relaunched today under a new brand platform for its audience as ‘The Heart and Voice of the North.’ Following a reimagination of its technology products, reporting focus, and growth strategy, the company has positioned itself for a new chapter in a dynamic and challenging time for journalism. Adding Minnesota to its nameplate to signal an expanded, state-wide focus going forward, the company’s mission is to connect the people, ideas, and stories that strengthen Minnesota’s communities.

“We’re thrilled to relaunch as the Minnesota Star Tribune at such an important time for our state,” said Steve Grove, CEO and Publisher. “It’s not every day you get to reimagine a 157-year-old publication for a new era – so we don’t take this moment lightly. We’ve spent the last year investing in more journalism in more locations on top of a stronger platform. We’re relaunching ourselves under a new name because we want Minnesotans to know what we believe: that this state deserves the strongest local news organization in America at a time of so much change.”

Driving innovation for a digital future

The Minnesota Star Tribune recently relaunched its entire digital product ecosystem including startribune.com and mobile apps. The greatly enhanced reader experience includes a complete back-end website rebuild in partnership with tech powerhouse Code and Theory. This digital reboot is designed to ensure all news and editorial content is responsive across all platforms while meeting the highest standards for digital integrity and security. The rebuild also positions the Minnesota Star Tribune to take advantage of new and emerging product offerings and was done under the leadership of new Chief Product Officer Aron Pilhofer.

“Today’s news consumers demand best-in-class digital experiences, and we’re now set to provide that well into the future,” said Pilhofer. “Our new tech stack will allow us to continue to innovate to reach our audiences in new ways to keep them better informed and engaged.”

Reimagining news coverage and expanding statewide

Earlier this year, the Minnesota Star Tribune announced plans to expand coverage in Greater Minnesota and embarked on an ongoing series of community conversations across the state including in Mankato, Duluth, Moorhead, St. Cloud, Brainerd, Rochester and several locations throughout the Twin Cities metro area. The Minnesota Star Tribune currently has 10 reporters and editors focused on Greater Minnesota, after adding reporting resources including a Greater Minnesota Columnist, a Southeast Minnesota Reporter, a North Central Minnesota Reporter, and a Southwest Minnesota Reporter, and it will continue growing its reporting roster. It is also forming partnerships with Minnesota news organizations to elevate local news content from other sources on its own platforms and beyond.

In addition, the Minnesota Star Tribune recently announced advancements of its newsroom structure and leadership to better serve readers.  News coverage, leadership and resources will realign around its five key topic areas of News and Politics, Business, Sports, Food and Culture, and Outdoors.

“We’re reshaping our coverage to focus more squarely on issues and topics essential to Minnesotans,” said Suki Dardarian, Editor and Senior Vice President of the Minnesota Star Tribune. “Our readers have helped inform this approach, which aims to provide richer coverage that reflects the diversity, soul and spirit of Minnesota, along with our hallmark enterprise and accountability reporting.”

Representing a diversity of voices

The Minnesota Star Tribune also recently announced the creation of Strib Voices, a reimagination of its opinion and commentary team under the new leadership of award-winning editorial writer and columnist Phil Morris. With a refreshed focus on representing diverse voices from multiple spectrums, Strib Voices will feature greater quantity and breadth of columns and bylined opinion pieces.

In addition, earlier this year, Kavita Kumar was promoted to community engagement director, and is proactively seeking commentary pieces and other content that covers various aspects of geography, demographics and political affiliations across Minnesota.

“By bringing together all of our opinion work under Strib Voices, our hope is to create the most dynamic and thoughtful water cooler for statewide news in the country,” said Phil Morris, Vice President and Opinion Editor for the Minnesota Star Tribune.

Reimagining the brand

To complement the vast transformation, the Minnesota Star Tribune has built a new brand identity and design structure to convey its ambition for audiences everywhere. The company partnered with Minnesota-based creative agency Colle McVoy to develop this brand strategy and identity, built for the future of media consumption. In addition to a new name, the brand refresh includes a new nameplate, new logo, new color systems, new sets of typography, a new mascot (Stribby the Gray Duck), and a new brand platform as ‘The Heart and Voice of the North.’

“Yes, we added ‘Minnesota‘ to our name – yet this rebrand goes far beyond a new title,” said Chris Iles, Vice President of Communications and Brand Marketing for the Minnesota Star Tribune.  “We’re Minnesotans just like our audience, and believe that our state, in an oft overlooked and underestimated region of the country, deserves to view itself for what it is: the ‘Heart and Voice of the North.’ Our campaign leans into all things Minnesota, as we leverage our trusted and established brand to elevate a community and place that loyal subscribers and new audiences will be proud of.”

Positioning for future growth

In addition to the transformational work already completed under new publisher and CEO Steve Grove, the Minnesota Star Tribune has a robust slate of upcoming changes designed to further position it for future success. These include the launch of a philanthropic arm, an enhanced sponsored-content strategy, a novel approach to affiliate marketing and much more.

“The talented team at the Minnesota Star Tribune has accomplished so much over the past year, and we’re just getting started,” said Steve Grove. “As we drive innovation in media to make every Minnesotan’s life better, we hope our loyal and new readers will join us on this journey.”

The Minnesota Star Tribune’s owner, Glen Taylor, said he believes this is the beginning of a new chapter for an institution he cares about deeply.

“I’m incredibly excited by what our new leadership team has put into place at an important moment for our state,” Taylor said. “The Minnesota Star Tribune is a state treasure, one we believe can accomplish truly great things with the support of our audience and partners.”

To celebrate its relaunch, the Minnesota Star Tribune is offering new subscribers the special rate of just $1 for 6 months of premium digital access.

About The Minnesota Star Tribune Media Company
The Minnesota Star Tribune is an innovative modern media organization building on an extraordinary 157-year legacy. With seven Pulitzer Prizes and hundreds of other awards, the Minnesota Star Tribune boasts the Midwest’s largest news organization and is an unrivaled force for journalistic excellence in Minnesota and beyond. As the heart and voice of the north, the Minnesota Star Tribune is on a journey to create the leading model for local news in America – driving innovation in media to make every Minnesotan’s life better. For more information, visit www.startribunecompany.com.

Contact:
Chris Iles
612-366-0427
chris.iles@startribune.com

SOURCE The Minnesota Star Tribune

Originally Released On

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Stagwell:

For Press:

Kara Gelber pr@stagwellglobal.com

For Investors:

Ben Allanson ir@stagwellglobal.com 

Consulum:

Ryan Coetzee 
rc@consulum.com

New York and Riyadh, August 6, 2024 — Stagwell (NASDAQ: STGW), the challenger network built to transform marketing, today announced it has entered into an agreement to acquire Consulum, a leading pan-MENA government advisory consultancy.  

The acquisition — Stagwell’s second in MENA in 2024 — establishes a robust foothold for Stagwell in the Middle East, enriched by Consulum’s tested expertise in strategic communications, public policy, leadership support, and diplomatic outcomes. 

Founded in 2012, Consulum has grown to a team of approximately 160 professionals specializing in strategic communications, public policy, and leadership support, with offices in Riyadh, Manama, Dubai, London, Cape Town, and Kuala Lumpur. The consultancy is a trusted partner to a range of high-profile government clients. 

“Our acquisition of Consulum marks a significant step in expanding Stagwell’s influence and capabilities in MENA as the region’s strategic importance to global marketers continues to grow,” said Mark Penn, Chairman and CEO of Stagwell. “With Consulum’s expertise and established government relationships, we are poised to offer unparalleled strategic communications services to our clients worldwide while bolstering our unique capabilities in advocacy beyond the U.S.”

Consulum Chairman and co-founder, Tim Ryan said: “Consulum was formed 12 years ago to answer a clear need for governments, heads of state and their institutions to have access to a dedicated consultancy focused on strategy, communications and policy. As a result of that singular focus and mission, Consulum is now a market leader and something I and co-founder Matthew Gunther-Bushell are rightly proud of.”

Consulum CEO, Ryan Coetzee, and Consulum Managing Partner, James Davies said: ”We are delighted to be joining the Stagwell Group’s impressive network. It marks a pivotal moment as we move to our next phase of growth. 

The combination of Consulum’s leading government advisory services with Stagwell’s renowned innovation and cutting-edge technologies will significantly enhance our ability to offer clients a wider range of world-class services.” 

The addition of Consulum enhances Stagwell’s presence in the Middle East, complementing the recently-acquired influencer marketing agency and technology platform LEADERS/Influencer Marketing.AI, as well as Stagwell’s omnichannel media agency Assembly Global, global communications agency Allison, and creative collective Forsman & Bodenfors.  

Consulum joins Stagwell as the challenger network seeks expansion into 10 new markets in 2024 alone, and follows the acquisitions of LEADERS (MENA), BERA (Global), Business Traveler (Global), Luxine Publique Relations (Canada), What’s Next Partners (France), Sidekick (U.K.), and Team Epiphany (U.S.).  

About Stagwell  

Stagwell (NASDAQ: STGW) 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.  www.stagwellglobal.com. 

About Consulum  

Consulum is a government advisory firm dedicated to helping governments develop, lead and deliver positive programmes that successfully promote their global interests. With decades at the highest levels of government, Consulum’s 160 specialists have the experience and expertise to help governments enhance their standing on the world stage and achieve their global objectives. The integration of strategy, policy and communications – in both the design and execution of programmes – sits at the heart of our philosophy, because silos dilute impact while integration maximises it. 

CONTACTS: 

Stagwell  
 
For Press:  
Kara Gelber 
pr@stagwellglobal.com 

For Investors: 
Ben Allanson 
ir@stagwellglobal.com 

Consulum 
Ryan Coetzee 
rc@consulum.com

Originally Released On

PR Newswire

Media Relations Contacts at Assembly:

James Wilde, Head of Growth & Marketing: James.Wilde@assemblyglobal.com
Michelle Chan, Marketing Manager: Michelle.Chan@assemblyglobal.com

Media Relations Contacts at Pipedrive:

Mariliis Beger, Global Head of PR: mariliis.beger@pipedrive.com

Enhancing the effectiveness of Pipedrive’s performance media efforts was at the heart of the brief. Assembly developed an integrated approach that empowers Pipedrive to supercharge its marketing and media effectiveness through innovative data utilisation and digital transformation, as it continues its mission to be the leading AI sales CRM for small businesses.

Assembly is committed to supporting Pipedrive’s mission of helping more small businesses grow around the world.

Dominic Allon, CEO of Pipedrive, said: “We’re thrilled to be partnering with Assembly for our next chapter as we continue to build our brand and accelerate our growth. Assembly boasts a fantastic combination of creativity and commercial drive, all powered by proven tech savvy. I’m confident that this new partnership will advance our mission to help small businesses grow.”

Matt Adams, CEO of Assembly Europe, said: “This is a client that has ambition, speed and an abundance of innovation at their core – exactly the brand and team that we partner best with. Using advanced technology, audience targeting and AI-led planning we are looking forward to finding the change that will fuel their growth.”

Assembly will partner with creative agency DEPT on Pipedrive’s upcoming brand campaigns and other capabilities within Assembly’s parent network, Stagwell (NASDAQ: STGW), will be also harnessed in the coming months, such as performance linguistics specialists Locaria and B2B marketplace Multiview.

Supported by global investment firm Vista Equity Partners and bolstered by its robust SMB community, Pipedrive is committed to pushing the boundaries of what an easy-to-use yet effective CRM can achieve, helping small businesses secure more deals. Pipedrive’s powerful and intuitive sales CRM is primarily designed to help sales teams manage leads and deals, track communication, and automate sales processes. Recently, the company launched Pipedrive AI, a broad range of AI tools that help teams work smarter and faster.

The process was assisted throughout by Tuffon Hall Consultancy.

ABOUT PIPEDRIVE
Founded in 2010, Pipedrive is the easy and effective sales CRM that drives small business growth. Today, Pipedrive is used by revenue teams at more than 100,000 companies worldwide. Pipedrive is headquartered in New York and has offices across Europe and the US. The company is backed by majority holder Vista Equity Partners, and Bessemer Venture Partners, Insight Partners, Atomico, and DTCP. Learn more at www.pipedrive.com.

ABOUT ASSEMBLY EUROPE
Assembly is a leading global omnichannel media agency, operating in 26 offices worldwide. Our Europe headquarters in London serves as a dynamic regional hub, with presence in Paris, Milan, Amsterdam, Hamburg, Warsaw, Barcelona, Madrid, and Tel Aviv. With a team of over 400 experts specialising in omnichannel strategies, digital brand and performance, e-commerce, data science, and sustainability, we are committed to finding the change that fuels growth for the world’s top brands. As a trusted strategic partner, our collaborations have predominantly centred around renowned brands in the spheres of luxury, fashion, beauty, retail, and technology. Assembly is honoured to be named one of the few recipients of the prestigious Google Premier Partner of the Year 2023. Our work is powered by our proprietary in-house technology solution, STAGE, and supported by our global talent base of over 2,600 professionals. Assembly is a proud member of Stagwell, the challenger network built to transform marketing. For more information, visit assemblyglobal.com. 

Media Relations Contacts at Assembly:
James Wilde, Head of Growth & Marketing: James.Wilde@assemblyglobal.com
Michelle Chan, Marketing Manager: Michelle.Chan@assemblyglobal.com

Media Relations Contacts at Pipedrive:
Mariliis Beger, Global Head of PR: mariliis.beger@pipedrive.com

Photo – https://mma.prnewswire.com/media/2474251/Pipedrive_and_Assembly.jpg 

Logo – https://mma.prnewswire.com/media/2430305/assembly_logo.jpg

Associated Materials:

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Originally Released On

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CONTACT:

IR Contact:
Ben Allanson
ir@stagwellglobal.com

PR Contact:
Beth Sidhu
pr@stagwellglobal.com

Revenue Growth of 6%, Led by 42% Growth in Advocacy

Net Loss Attributable to Stagwell Inc. Common Shareholders of $3 million

Adjusted EBITDA of $86 million; Adjusted EBITDA Margin of 16%

EPS of $(0.03); Adjusted EPS of $0.14

Announces Record Net New Business Led by Largest New Business Win

Net New Business of $113 million in Q2; LTM Net New Business of $324 million

Reaffirm Guidance for 2024 of Organic Net Revenue Growth of 5% to 7%; Adjusted EBITDA of $400 million to $450 million; Free Cash Flow Conversion of ~50%

New York, NY, August 1, 2024 (NASDAQ: STGW) – Stagwell Inc. (“Stagwell”) today announced financial results for the three and six months ended June 30, 2024.

SECOND QUARTER RESULTS:

• Q2 Revenue of $671 million, an increase of 6% versus the prior year period; H1 Revenue of $1.3 billion, an increase of 7% versus the prior year period
• Q2 Net Loss attributable to Stagwell Inc. Common Shareholders of $3 million versus $3 million in the prior year period; H1 Net Loss attributable to Stagwell Inc. Common Shareholders of $4 million versus Income of $2 million in the prior year period
• Q2 Adjusted EBITDA of $86 million, a decrease of 6% versus the prior year period; H1 Adjusted EBITDA of $176 million, an increase of 8% versus the prior year period
• Q2 Adjusted EBITDA Margin of 16% on net revenue; H1 Adjusted EBITDA Margin of 16% on net revenue.
• Q2 Earnings Per Share Attributable to Stagwell Inc. Common Shareholders of $(0.03) versus $(0.03) in the prior year period; H1 Earnings Per Share Attributable to Stagwell Inc. Common Shareholders of $(0.04) versus $(0.01) in the prior year period.
• Q2 Adjusted Earnings Per Share attributable to Stagwell Inc. Common Shareholders of $0.14 versus $0.18 in the prior year period; H1 Adjusted Earnings Per Share attributable to Stagwell Inc. Common Shareholders of $0.30 versus $0.31 in the prior year period.
• Net new business wins of $113 million in the second quarter, last twelve-month net new business wins of $324 million.
• Q2 Net Revenue of $554 million, an increase of 2% versus the prior year period; H1 Net Revenue of $1.1 billion, an increase of 2% versus the prior year period
• Q2 Organic Net Revenue increased 1.2% versus the prior year period; H1 Organic Net Revenue increased 1.5% versus the prior year period

Mark Penn, Chairman and CEO, said, “Stagwell delivered solid results this quarter with record-smashing net new business wins of $113 million, bringing our last twelve-month net new business figure to $324 million. Success for the year continues to build, with new business wins from General Motors, Macy’s, Target, and Zales just coming online to bolster H2. Additionally, the momentum is continuing, with wins already coming in Q3, and an active political season that has been energized even further by recent developments.

We are at a critical inflection point as we grow our capabilities, enabling us to land $20 to $40 million remits, while expanding our AI deployments, Stagwell Marketing Cloud capabilities, and our global reach. We are seeing these strategies come together now to set the stage for a strong H2 and 2025,” added Penn.

Frank Lanuto, Chief Financial Officer, commented: “Driven by record-breaking net new business and strong growth in Creativity & Communications, Advocacy, and Performance Media & Data, Stagwell delivered solid second quarter revenue of $671 million, a 6% increase over the prior year. While improving our comp-to-net revenue ratio, we invested in initiatives to build and convert our revenue pipeline into new business, including the successful SPORT BEACH activation at Cannes. The multiple $10 million-plus wins in Q2 and early Q3 confirm our growth strategy and bolster our confidence in our full-year guidance.”

Financial Outlook

2024 financial guidance is reiterated as follows:

• Organic Net Revenue growth of 5% to 7%
• Organic Net Revenue excluding Advocacy growth of 4% to 5%
• Adjusted EBITDA of $400 million to $450 million
• Free Cash Flow Conversion of approximately 50%
• Adjusted EPS of $0.75 – $0.88
• Guidance assumes no impact from foreign exchange, acquisitions or dispositions.

Video Webcast

Management will host a video webcast on Thursday, August 1, 2024, at 8:30 a.m. (ET) to discuss results for Stagwell Inc. for the three and six months ended June 30, 2024. The video webcast will be accessible at https://stgw.io/Earnings. An investor presentation has been posted on our website at www.stagwellglobal.com and may be referred to during the webcast.

A recording of the webcast will be accessible one hour after the webcast and available for ninety days at www.stagwellglobal.com.

Stagwell Inc.

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 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.

Contacts

For Investors:

Ben Allanson

IR@stagwellglobal.com

For Press:

Beth Sidhu

PR@stagwellglobal.com

Non-GAAP Financial Measures

In addition to its reported results, Stagwell Inc. has included in this earnings release certain financial results that the Securities and Exchange Commission (SEC) defines as “non-GAAP Financial Measures.” Management believes that such non-GAAP financial measures, when read in conjunction with the Company’s reported results, can provide useful supplemental information for investors analyzing period to period comparisons of the Company’s results. Such non-GAAP financial measures include the following:

(1) Organic Revenue: “Organic revenue growth” and “Organic revenue decline” reflects the year-over-year change in the Company’s reported net revenue attributable to the Company’s management of the entities it owns. We calculate organic net revenue growth (decline) by subtracting the net impact of acquisitions (divestitures) and the impact of foreign currency exchange fluctuations from the aggregate year-over-year increase or decrease in the Company’s reported net revenue. The net impact of acquisitions (divestitures) reflects the year-over-year change in the Company’s reported net revenue attributable to the impact of all individual entities that were acquired or divested in the current and prior year. We calculate impact of an acquisition as follows: (a) for an entity acquired during the current year, we present the entity’s prior year net revenue for the same period during which we owned it in the current year as impact of the acquisition in the current year; and (b) for an entity acquired in the prior year, we present the entity’s prior year net revenue for the period during which we did not own the entity in the prior year as impact of the acquisition in the current year. We calculate impact of a divestiture as follows: (a) for a divestiture in the current year, we present the entity’s prior year net revenue for the same period during which we no longer owned it in the current year as impact of the divestiture in the current year; and (b) for a divestiture in the prior year, we present the entity’s prior year net revenue for the period during which we owned it in the prior year as impact of the divestiture in the current year. We calculate the impact of any acquisition or divestiture without adjusting for foreign currency exchange fluctuations. The impact of foreign currency exchange fluctuations reflects the year-over-year change in the Company’s reported net revenue attributable to changes in foreign currency exchange rates. We calculate the impact of foreign currency exchange fluctuations for the portion of the reporting period in which we recognized revenue from a foreign entity in both the current year and the prior year. The impact is calculated as the difference between (1) reported prior period net revenue (converted to U.S. dollars at historical foreign currency exchange rates) and (2) prior period net revenue converted to U.S. dollars at current period foreign exchange rates.

(2) Net New Business: Estimate of annualized revenue for new wins less annualized revenue for losses incurred in the period.

(3) Adjusted EBITDA: defined as Net income excluding non-operating income or expense to achieve operating income, plus depreciation and amortization, stock-based compensation, deferred acquisition consideration adjustments, and other items. Other items include restructuring costs, acquisition-related expenses, and non-recurring items.

(4) Adjusted Diluted EPS is defined as (i) Net income (loss) attributable to Stagwell Inc. common shareholders, plus net income attributable to Class C shareholders, excluding amortization expense, impairment and other losses, stock-based compensation, deferred acquisition consideration adjustments, discrete tax items, and other items, divided by (ii) (a) the per weighted average number of common shares outstanding plus (b) the weighted average number of Class C shares outstanding, (if dilutive). Other items includes restructuring costs, acquisition-related expenses, and non-recurring items, and subject to the anti-dilution rules.

(5) Free Cash Flow: defined as Adjusted EBITDA less capital expenditures, change in net working capital, cash taxes, interest, and distributions to minority interests, but excludes contingent M&A payments. Free Cash Flow Conversion is the percentage of adjusted EBITDA.

Included in this earnings release are tables reconciling reported Stagwell Inc. results to arrive at certain of these non-GAAP financial measures.

This document contains forward-looking statements. within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The Company’s representatives may also make forward-looking statements orally or in writing from time to time. Statements in this document that are not historical facts, including, statements about the Company’s beliefs and expectations, future financial performance, growth, and future prospects, the Company’s strategy, business and economic trends and growth, technological leadership and differentiation, potential and completed acquisitions, anticipated operating efficiencies and synergies and estimates of amounts for redeemable noncontrolling interests and deferred acquisition consideration, constitute forward-looking statements. Forward-looking statements, which are generally denoted by words such as “aim,” “anticipate,” “assume,” “believe,” “continue,” “could,” “create,” “develop,” “estimate,” “expect,” “focus,” “forecast,” “foresee,” “future,” “goal,” “guidance,” “in development,” “intend,” “likely,” “look,” “maintain,” “may,” “ongoing,” “opportunity,” “outlook,” “plan,” “possible,” “potential,” “predict,” “probable,” “project,” “should,” “target,” “will,” “would” or the negative of such terms or other variations thereof and terms of similar substance used in connection with any discussion of current plans, estimates and projections are subject to change based on a number of factors, including those outlined in this section.

Forward-looking statements in this document are based on certain key expectations and assumptions made by the Company. Although the management of the Company believes that the expectations and assumptions on which such forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. The material assumptions upon which such forward-looking statements are based include, among others, assumptions with respect to general business, economic and market conditions, the competitive environment, anticipated and unanticipated tax consequences and anticipated and unanticipated costs. These forward-looking statements are based on current plans, estimates and projections, and are subject to change based on a number of factors, including those outlined in this section. These forward-looking statements are subject to various risks and uncertainties, many of which are outside the Company’s control. Therefore, you should not place undue reliance on such statements. Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update publicly any of them in light of new information or future events, if any.

Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statements. Such risk factors include, but are not limited to, the following:

• risks associated with international, national and regional unfavorable economic conditions that could affect the Company or its clients
• demand for the Company’s services, which may precipitate or exacerbate other risks and uncertainties;
• inflation and actions taken by central banks to counter inflation;
• the Company’s ability to attract new clients and retain existing clients;
• the impact of a reduction in client spending and changes in client advertising, marketing and corporate communications requirements;
• financial failure of the Company’s clients;
• the Company’s ability to retain and attract key employees;
• the Company’s ability to compete in the markets in which it operates;
• the Company’s ability to achieve its cost saving initiatives;
• the Company’s implementation of strategic initiatives;
• the Company’s ability to remain in compliance with its debt agreements and the Company’s ability to finance its contingent payment obligations when due and payable, including but not limited to those relating to redeemable noncontrolling interests and deferred acquisition consideration;
• the Company’s ability to manage its growth effectively;
• the Company’s ability to identify, complete and integrate acquisitions that complement and expand the Company’s business capabilities, to identify and complete divestitures and to achieve the anticipated benefits therefrom;
• the Company’s ability to develop products incorporating new technologies, including augmented reality, artificial intelligence, and virtual reality, and realize benefits from such products;
• the Company’s use of artificial intelligence, including generative artificial intelligence;
• adverse tax consequences for the Company, its operations and its stockholders, that may differ from the expectations of the Company, including that future changes in tax laws, potential increases to corporate tax rates in the United States and disagreements with tax authorities on the Company’s determinations that may result in increased tax costs;
• adverse tax consequences in connection with the Transactions, including the incurrence of material Canadian federal income tax (including material “emigration tax”);
• the Company’s unremediated material weaknesses in internal control over financial reporting and its ability to establish and maintain an effective system of internal control over financial reporting, including the risk that the Company’s internal controls will fail to detect misstatements in its financial statements;
• the Company’s ability to accurately forecast its future financial performance and provide accurate guidance;
• the Company’s ability to protect client data from security incidents or cyberattacks;
• economic disruptions resulting from war and other geopolitical tensions (such as the ongoing military conflicts between Russia and Ukraine and in Israel and Gaza), terrorist activities and natural disasters;
• stock price volatility; and
• foreign currency fluctuations

Investors should carefully consider these risk factors, other risk factors described herein, and the additional risk factors outlined in more detail in our 2023 Form 10-K, filed with the Securities and Exchange Commission (the “SEC”) on March 11, 2024, and accessible on the SEC’s website at www.sec.gov, under the caption “Risk Factors,” and in the Company’s other SEC filings.

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Contact

Christina Lojek
christina.lojek@harrispoll.com

Originally Released On

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Media Contact

Contact:
Kenneth Hein
kenneth.hein@codeandtheory.com

Originally Released On

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Contact:
Kara Gelber
pr@stagwellglobal.com 

Originally Released On

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Media Contact

Kara Gelber
pr@stagwellglobal.com

Investor Relations Contact

Ben Allanson
ir@stagwellglobal.com

Founded by Eran Nizri and Yehonatan Arami in 2017, LEADERS and IMAI combine high-value digital and influencer marketing strategy with a cutting-edge, AI-powered SaaS influencer marketing platform. IMAI leverages advanced AI technologies to connect brands with over 300 million creators worldwide. The platform allows users from anywhere in the world to launch campaigns in just a few clicks, offering robust analytics, sales prediction models, and campaign management tools. Clients include Nespresso, Samsung, and Colgate-Palmolive; notable SaaS clients include Coca-Cola, Playtika, Estée Lauder, and Superdry. IMAI will supplement the bench of influencer marketing platforms currently in use by Stagwell’s agencies around the world, including existing tools in the PRophet Comms Tech Suite.

“We are excited to welcome LEADERS to the Stagwell family. This acquisition strengthens our Stagwell Marketing Cloud offering with cutting-edge AI solutions for influencer marketing while marking our first agency in Israel amid a substantial global expansion push from Stagwell this year,” said Mark Penn, Chairman and CEO, Stagwell. “Eran and his team share our vision of transforming marketing with technology, and we look forward to working together to deliver value to our clients across the globe.”

“Combining with Eran and the LEADERS team is a force multiplier for PRophet and Stagwell to expand global reach, integrate advanced AI technologies and leverage domain expertise around high performance digital and influencer marketing strategy for customers,” said Aaron Kwittken, Founder and CEO of SMC’s Comms Tech Suite.

“This acquisition marks a transformative milestone for LEADERS and InfluencerMarketing.AI,” added Nizri. “With Stagwell’s extensive network and resources, we are set to redefine the landscape of influencer marketing. Our goal is to become the world’s leading influencer and digital marketing powerhouse, delivering unparalleled value and innovation to our clients. We look forward to integrating our capabilities into Stagwell’s Comms Tech Unit and leading the industry into a new era of excellence.”

LEADERS’ and IMAI’s success is driven by a strong leadership team. Eran Nizri will continue to serve as Group CEO, reporting into Aaron Kwittken, Founder and CEO of Stagwell Marketing Cloud’s PRophet Comms Tech Suite. Itamar Gonsherovitz will continue to spearhead LEADERS’ digital agency operations as CEO. Yehonatan Arami, will continue to lead business development, expanding the company’s reach within the Stagwell network.

The acquisition comes as Stagwell expands its global footprint and invests further in AI-enabled solutions at the forefront of digital marketing. LEADERS is Stagwell’s seventh acquisition of 2024, following Team Epiphany (U.S.), Sidekick (U.K.), What’s Next Partners (France), PROS (Brazil), Business Traveller (Global), and BERA (U.S.).

About Stagwell Marketing Cloud

Stagwell Marketing Cloud (SMC) is a suite of data-driven SaaS solutions built for the modern marketer. Born out of Stagwell’s (NASDAQ: STGW) network of award-winning marketing agencies, SMC empowers marketers to drive business and brand impact by giving them intuitive tools equipped with proprietary, actionable data. SMC’s portfolio of solutions powers market research, communications, and media for brands worldwide by leveraging technology such as generative and predictive artificial intelligence, machine learning, augmented reality, and more. Get your head in the cloud at www.stagwellmarketingcloud.com.

About PRophet

Founded in 2020 by PR industry leader Aaron Kwittken, PRophet is an award-winning suite of essential, AI-powered Comms Tech tools purpose-built to empower modern communicators to perform more efficiently by quickly uncovering and authentically engaging with high-authority journalists and leading influencers. PRophet was awarded PRovoke Media’s Innovation SABRE in 2023 and 2024, a 2024 Webby Award, and was included in PR News’ 2024 Tech Hotlist. The all-in-one platform offers three core solutions:  PRophet Earn creates and tests “mediable” PR content to predict earned media interest and sentiment.  PRophet Influence combines vertical AI, analytics, discovery and tracking technologies to inform and manage influencer marketing campaigns. PRophet Monitor delivers real-time, earned and social media monitoring, reporting and analytics to alert teams of emerging trends, threats, brand mentions, and opportunities for real-time response. PRophet is part of the Stagwell Marketing Cloud (SMC), a suite of data-driven SaaS solutions built for the modern marketer. Visit prprophet.ai to learn more.

About LEADERS
Established in 2017, LEADERS is a digital agency specializing in influencer marketing. With a focus on performance and sales, LEADERS provides comprehensive services that harness the power of influencer marketing and social media.

About InfluencerMarketing.AI
Established in 2020, InfluencerMarketing.AI is a SaaS influencer marketing platform that connects brands with a vast network of influencers. Utilizing advanced AI and machine learning technologies, InfluencerMarketing.AI offers robust analytics, sales prediction models, and management tools to optimize influencer marketing campaigns, focusing on e-commerce brands to track conversions and ROI.

Contacts:
Kara Gelber
Stagwell 
pr@stagwellglobal.com

Stephanie Hernandez

PRophet Comms Tech
v-stephanie.hernandez@prprophet.ai