OMC - Earnings call transcript Q2 2022

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Welcome to the Omnicom Second Quarter 2022 Earnings Release Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. [Operator Instructions] As a reminder, this conference call is being recorded. At this time, I'd like to introduce you to your host for today's conference, Senior Vice President of Investor Relations, Gregory Lundberg. ahead. go Please

Gregory Lundberg

Financial release joining me a for Executive quarter call earnings and well the will as with XXXX the and a website, Thank are our be archived John concludes. version webcast of available omnicomgroup.com, information press With Chief President presentation review Vice today's we'll today Angelastro, Chief On we Wren, call. along our posted Phil you An when Executive today second Officer. as Chairman Officer; covering this and call.

present Before to actual our our filings, could expectations. we Relevant we've non-GAAP other statements remind of forward-looking our start and Form constitute today, of I'd made that presentation. factors investor like financial XX-K. results listed in differ read to our cause everyone statements materially earnings are materials included information our end may the statements, the XXXX SEC in the and Certain at forward-looking these today including are to that statements and

During of non-GAAP certain will measures. we the also today's course discuss call,

You of the measures GAAP comparable materials. these the can presentation reconciliation nearest in to the find

We review quarter. from line financial Phil the then John for our will questions. I'll open your will for call of remarks, business John. and call the with an the we prepared to After begin the our results will our overview up hand now

John Wren

thank for quarter us joining you and today. to everyone, afternoon, results. second Good share pleased Greg. our you, Thank We're

comparable for XXXX. across was in growth client agencies, XX performance and the XX.X%, quarter disciplines, strong. Our second margin than points broad-based Operating higher XX.X%, with exceeded was very our quarter profit our basis sectors. of expectations margin We which was our organic regions

$X.XX, while costs grow XX.X% revenue. agency up XXXX. their line to was versus for share top continue with Our the comparable the in closely quarter teams amount managing line Earnings per in management

repurchases. remain of balance Phil flow, dividends, acquisitions cash our and primary share uses we and during liquidity our more his results cash, support in to and our very detail sheet will strong cover Finally, continue remarks.

on additional focus we our we clients meet and and We X,XXX a Festival we commerce and kind on e-commerce needs certified During At sales our the more the The we than in-store navigate helping media consumer platforms. now retail Most will media creative media effective more the collaborations and experts more notably, recently June, clients. and strengthened of our of number our capabilities and partnerships Kroger Creativity of retail content to complexity transactions audiences, of ideas more evolving Cannes deliver online insights, for clients Lions existing in expanded Walmart. the and to announced first of we access media have quarter, our e-commerce to and and us Amazon, capabilities. continue with so with announced and prospects. targeted Instacart, its executing provide driving actionable precise can

are delivering leveraging the of We platform. power our omni these by services

automation. our intelligence to capabilities, which and pleased report Media and noted the analytics, area Forrester effectiveness Omni driving that We're data have sales a in retail profitability. recent omni leads us to and clients' Group increase awareness investments, brand our media, commerce audience media integrates We this being commerce commerce maximize enables efforts about of product sales behavior, which in shopper recognized media, shelf see content, inventory. and across Omnicom set audiences, critical our optimization retail peer operations developed and in

the MarTech as in areas, e-commerce sector. invest we forward, well transformation Consulting and health retail digital Going continue Precision Marketing, media, growth media other will and including organically performance our acquisitions as CRM through and to and in and

we oversee privacy these of extensive insight an protect in globe. to Officer. we incorporates Omni, of expand control and rightfully behalf manage laws as data the our come in approach partners. Brian privacy recently privacy-first data emerge security their and an protection. increasingly we Privacy Brian we how to continue As the our the and a we will data are background member efforts, He be data capabilities To and are manage. of and as has cookies appointed that Clients our and Data on we ethics, team of demanding Omnicom's continue aggregate data key the clients data Clayton third-party has maintaining as Chief greater and governance regulations over privacy end around to complex

strategic to obtain data Omnicom-wide security employee of OMD. Cannes after Christina Our ensure more on third-party Ed has of practices, the succeeds additions, the And of our our us. since back key the a people agencies our of and data appointment placed CEO are served programs Media forward. I safeguard by Forrester Continuing Group. announced followed all and as equity progress Chief people the in from building initiatives Osborn, performance John Network the pleased strongest the we our during stepping Media long-standing stakeholders first Two progress that to some competition. quarter, recent Weiss, a the creative XXX who report DE&I moving In BBDO, Lions. Matt with be we half key McNally have are approach our current Christy is recently the diversity, won our Omnicom, of inclusion exceptional years very Overall, having results. announce their XX for report. the partners. the Omnicom committed Hansen we read offering to Year over non-profit Group our I'm Omnicom encourage more U.S. which agencies performance. than as is website continues Lions. for the priority OMD we succeeds of issued know countries leadership top Global top to we Congratulations Network who was June, to retirement. networks, of He was named Omnicom with and naming and XX five and XXXX. on She work to from Strategy and report on we the media, keep focus on that in our in In attended Year, data, pleased client CEO his as and network's with on privacy financial Health Officer won frameworks organizations. marketplace. our than with and DDB his to

service and clients well Our continued partnerships notable the our new extremely in position and us areas investments high-growth now future. in to

war strategies markets, supply effects we're our in of and services, confident global the in posed based the chains to of the Ukraine, with level caution are rising remain strong healthy macro ongoing continuing economic we due disruption existing the year on execution, results, retaining a the of we and are between the our factors, first half in the for including across this higher revenue the risks pandemic continuing to our interest and by X.X% X% inflation full see for organic growth to rates. our to XXXX. demand increasing Even forecast and While backdrop,

delivering continue XXXX strong operating XXXX. the also that in to we same We XX.X% of margin anticipate in delivered

we're in gun My motivated senseless encounter the continues in globe. on in effect of of their an Before facing colleagues I violence lives to acts ongoing steadfast finish, for the remain impact Ukraine address of Ukraine continued to people our families families crimes. I'd these around like the mass challenges and our the to victims them heart hate of as our the the out the around as We world. The racially is and U.S., war supporting are shootings, In the long crimes. goes and people having to needed.

is Finally, a Court's States. services our people rights matter having many where the the live Supreme decision the of detrimental in women's overturn on to effect no they a was have in access We're our to colleagues. and step to back equal committed United advancement of health ensuring

safety Our actions the and to to results. decisions I closer with our our always our and to call look Phil? first. for Supreme colleagues put Ukraine will war over well-being now the financial the of reflect commitment at a respect turn recent Phil Court the

Phil Angelastro

John. Thanks,

growth our all disciplines. of quarter solid. high performance results very our rate, said, by across John at second a As very driven were Organic continued

delivered to dividends and and investors buybacks. per continue performance. Our a we of significant good portion share healthy operating our to return additional share our through flow cash growth margins earnings And free

financial year and comparable prior details This the adjustments view of the beginning as shows quarter, of Slide well income XXXX quarter the X. reported on the into the statement both second as of six XXXX go to for Let's making make the months comparable.

of of extinguishment Interest expense As of quarter also for of of a last charge includes we the the early expenses of debt. year the impacted year in XXXX, last second last quarter last the debt. second in And a second from benefited gain the the operating on was year quarter the extinguishment sale by subsidiary. income described early a tax second on in expense of quarter year,

expenses period, from last impacted year, as we quarter addition, In operating in these this the and of included XXXX quarter, charges charges. the discussed by were arising first income the also in for the Ukraine war of effects taxes year-to-date

representing in at $X.XX these EPS EPS QX XX.X% the of adjusted, of of the in net the see of can items you growth as resulted bottom the As quarter. of slide, XXXX second effects versus strong from $X.XX

as For from adjusted. months, as grew $X.XX the adjusted EPS also XX% six of $X.XX,

of $XX.X $XX.X Net Our rate decline million of we the QX increase principally XXXX, of excluding for million in of QX by previously the early an was for in income the was million charge the remainder from interest million. level quarter, $X driven The same QX expect year. this XX.X% reported extinguishment of of last $X.X debt as the declined interest tax expense approximately from by discussed. year, in XXXX

in increases fixed to Given rates expense principal to higher prior interest second as decline XXXX. net expect half year we interest the is compared compared the investing income our to rate, debt due to

share diluted in almost our was X% activity. share quarter down year-over-year our ongoing the repurchase Lastly, due count to second

year-to-date organic Reported more continue saw disposition our in expected we dollar Media excess with revenues of quarter these at Slide and the results strong that we in of stay Advertising X.X% our year. pass growth revenues as third the will rates another the foreign our Both specialty rates revenue X.X% quarter approximately the Based a July The third of closely the a our subsidiary divestiture discipline by & two revenue quarter, of June, for will by in the the the our flat approximately where date, exchange was primarily second by were globally reduce year. impact the in impact acquisitions If look as final impact they X% and foreign impacts as of reduction in to which deals mirror let's were were approximately on U.S. and of offset XX, X% strengthen in estimate quarter. included last Now as from to Russia, on and of businesses the XX.X% our exchange of results negative by rates disposition result in X. detail, dispositions was net from resulting we for in of revenue. completed and of at revenue by acquisition beginning months the full media expect we the

good clear our was our weighed with was X. design our that second largest strong worth Precision posted XX%, led in on agencies. lockdowns of organic Experiential the & Advertising noting the Turning It's agencies. & that with by our continued otherwise Marketing Slide in organic both strength and and branding Media, growth in performance all disciplines. organic China its it's in across growth XX%, performance to Brand organic our quarter. these up X% media creative growth of XX% broad-based had but QX quarter, strong Commerce our results. in category, Consulting

of across As levels. Execution pre-pandemic first & a terms reported this X%, the its months discipline led XXXX, of dollar our businesses. reference, reached for has merchandising Support point-of-sale and revenue up was XX% approximately six in by PR impressive from increased reflecting And new both strong the is economy. a and of and was activity very of many sectors clients XX%, X%. our Healthcare, grew which revenues, up long-standing growth business an XX%

as China, Turning the of region by organic This with Healthcare. the U.S., and Europe, & was Marketing our growth of which our impacted strong primarily Precision Experiential U.S., was Outside half growth and Despite by acceleration saw in & Media, by headwinds growth Advertising the was by Advertising just U.S., which lockdowns Media, was in the every which X. organic rates of region driven and strong the exception driven We Asia-Pacific, the and in primarily in Slide saw Relations, Public consulting XX.X% revenues, in Healthcare. once I the again by mentioned. nicely U.K. led is more in offset In Europe to Media, Experiential PR. in & Advertising results was than the brand growth Asia,

on remained stable. quarter the of X relative XXXX. at to clients sector broad second Slide our Looking distribution The of industry revenue by relatively

by a of effects. both retail As economy been have in percentage that the lingering and an in did see both pandemic by total, offset Two increase we travel reductions technology, the and some entertainment. sectors and by impacted

in markets were and Let's is our tight the to our XX.X% at the growth now in continued a turn focus operating to after for given which X and related adjusting and service dispositions. areas. expenses strategic labor several XX.X% to look year expenses acquisitions in our strong total, last our Slide amounts our investment quarter. costs and In flat, compared were result XXXX of business, relatively operating good related regions revenue Salary for

amounts XX.X% with for related reflecting in other growth costs, compared revenue of directly service our last businesses. linked adjusting increase year, the which less acquisitions were changes were Third-party to also in after Occupancy flat revenue, dispositions and are to year-over-year. XX.X% and costs to

expense We following down the estate fees footprint expenses alignment last up also business our will mentioning our increase working in post in to year-over-year, manage higher including rent this that to was worth and our continue in And year. S&A with marketing quarter. people it's compared professional activity, real X.X% pandemic. our were offices how are

XX. Slide to Turning

for profit to profit $XXX.X above a margin turn for comparable of now our adjusted. from our revenues Slide flow well Please second was last total was XX year XX.X% operating XX.X% performance. on quarter year the operating X.X% of as Our cash increase million, and last amount

year. X.X% basis. half net know, we $XX first flow working as cash in for flow you by was annual cash the down Free excluding generally As changes are first which provided free positive for operating or cash define on of $XXX months million, activities, the of capital, million us last six XXXX from an

Absent of the up in Ukraine year-over-year. were war However, we a bit quarter were recorded this, charges the $XX for the in cash-related. million the of first effects we

common uses to our to $XXX of Regarding interest $XX dividends of shareholders shareholders. cash we cash, and million dividends for another used non-controlling to pay million

lastly, dispositions of the levels. net million. $XXX million during Our quarter quarter. including at Acquisitions normal $XXX in another capital were stock other And our million were were million, the $XXX first $XX items and expenditures net of repurchases second

gross On year expect spend around XXXX, call we historical April, to debt our XX XX changes were for is annual million. overview an As our the we Slide credit, million said our the second in on liquidity of debt and full $XXX and was will of maturities. There we at range no at June in our during X.Xx. $XXX our quarter, leverage outstanding

my credit cash paper which invested have $X.X end program, our XX.X% strong to $X on and to up please reflect today also strong by and this At and short-term you. addition backstopped consistent facility. I'll we Thank billion These return $X.X commercial capital and performance a investments, the XX, In very approach are of Slide operating billion for billion capital revolving U.S. prepared of return our months competitive on operator, remarks point, and June allocation. very lines Omnicom's a XX.X% open questions ended the equity. XX, on answers. XX for returns shows

Operator

[Operator ahead. Instructions] go to Cahall of Fargo. the Wells We'll line go Please with Steven

Steven Cahall

certain previous a in first as sold change how has the was maybe Company in bit lot you've compares about the to just a business and in today question, cycles. like complexion what it talk it of So businesses. of lot the you changed bought could little the industry, A of

volatile the macroeconomic the I a would some your And a business environment? maybe on John, is strong of to maybe heading the the take on is, that, follow love that we into flattish to times a on let's for wondering last the should we your macro point for margin steady? get be gave Thank are good so growth on if just get I'm kind you more that were a then kind to of of of organic because pretty also margins. margins industry. to up I So steady going where kind just would it to year love the of down view Have just different Or margins What maybe, guidance margins expect next how really organic slows number. you. year we say Does just growth to down? the be cycle? the through isn't the are bit growth mean the reached the

John Wren

recession than in least probably fourth, but is yet. the it's Okay. been I'd This time has at gotten haven't the any been the -- three purpose fit I've third, through my today others. through two, way categorize one, for And more fourth portfolio we career. my

in pointing the cleaning And is time been of up last for the And the You're to right highest are those spent to referred the adding areas, growth. absolutely it have lot purpose. I a in way months We've which out. portfolio. XX fit

So that I'm in get board, -- there things point little in fewer there's across changes at to to management but my always the correct any are pleased where we things And we've the do, stand, made. career. other

And so we're pleased. very

invest our We And numbers we as that here. will that included revenue see year next in are already And add to we reported believe they're and to in continue reflected made you and the those speak. organically investments getting beyond. things

of every staff single estate, doing where our biggest we an expenses, aware But would which real think of which is Company margins too management very, that. next endeavored it's us. for looking expense to are improves I able the we've is second maintain are and margins always early always what predict year way -- been to throughout And In to there we've revenue and think the plan time capable margins, had terms where our we've endeavor not constantly to year's and be. example going is I improve matching to and We're them. major to very very at

Phil Angelastro

Yes, just one clarifying point.

you disposal year-on-year, we of to points a margins gain referred the being had business XXXX flat. flat, somewhere quarter the You last around margins of improvement basis you out and XX-plus in non-recurring carve keep When from that second lifetime. represents year

said, out then always of So focused the we're and efficient there's more and awful in prospectively. we're to certainly, offshoring and to -- improvement like just automation. always And future, trying outsourcing and but uncertainties John on lot more an ways that utilizing be be deliver there efficient,

Operator

Bazinet with line we'll Jason go of ahead. go Next, to Citi. Please the

Jason Bazinet

misses three, haven't let I The I've on have, buy-side, at sell-side, question. up and that as the is and convinced historically evidence just company Well, of ground on tangible the lived the This recession through recession. wakes ask there's but -- a remember let least this me the a you lived only then and the there can recessions guys the hey, through many as time isn't I and behavior a me is where misses, says, is a company much another buy-side it's buy-side slowdown. on when

to from guess but And is, so, not clients, on question buy-side's this I your next you does potentially what based guess pessimism for you're my I year, year? the you hearing seem reasonable

John Wren

we out sales there. start as lived they lose who sophisticated because that through is cautious from to where just if of unknowns Cannes the everybody occasion they a back we point got personally number largest are to recessions had the And cut of happen. the that had view, recoveries But too if marketers clients. dearly, characterize Well, back have quite know past a Festival to with the our of be I most

are very as cutbacks cautious about people serious marketplace. the in no traumas long dramatic with -- So as there's

sight months and contact clients. offices, help managers, day-to-day get have from have the done certainly to our into where every and So, view, bottoms-up spending next us get also more the of to organization. people planning is of because with coming And for one point commitments individual manage we a we're some end on speaking we'll we then of they to extend that media who year into know once towards reforecast the our year,

don't business. So your about anything know -- I and

Operator

go Next, we'll Macquarie. Please of Nollen ahead. go the Tim with line

Tim Nollen

that remarkable all everybody's continue I'll which seems I no conclusion. traditional numbers periods, when go to I into to call magnitude is, shift be. may at sign But there sort my I shift into are And digital about if of year, seems again, it, line going whatever you And it foregone left ask that of happens prior advertising if thinking a be we far. recession, there's But fort in very recessionary the that clear slowdown targeted that hold areas from, media wonder, could what mean, could we to thus marketing, let's and there's just what I like to how whatever thought be a on brand of what within the the be interest question it's saw your media into TV. think of into next or might in digital, a connected -- that way. if is

mentioned this several times e-commerce on You call.

to sort could resilient of just growth the you bit what be. a enlighten the If as us more even might areas possibly or

John Wren

necessary, as be opportunities year. out, to to especially gets things be take streaming anticipate the into the that get I wars advantage should return. will benefit a optimize subscription absolutely become that be like there's to to have we we going is coming services look you such the able Tim, to advertising for the client of invested $X next where that create a to as proving Also of will Sure. be our our couple that client $X of data and clients. as spending And going ad-supported, with the areas capabilities

when whether things. at agile. to Marketing. periods, at sell to portfolio making truly Precision compare them minutes warehouses our not they more and important, fit-for-purpose career. -- or when always today a boil next have forward. focused think And that's in once Which that of I investments pleased. this and said terribly selling That's you projections to keep is we're whatever reaching also purpose able never XXX% So or we year where fit than down, will it's why as briefly I any why of move in point the a more go the And years, pivot. mentioned is next of look a to we to deal making customer couple in We're prior other the it requirement digital And are great as my on just we ago, balanced we're about year, and I'm reference is out you for very us I'm marketplace investments. products and this our move exist couple e-commerce and satisfied. and we're to And to clients expected is we attract shelves but only

So but... if it, that I know don't covers Tim,

Tim Nollen

Yes. quick No. That's great. Could I follow-on? ask one

John Wren

Certainly.

Phil Angelastro

Sure.

Tim Nollen

might Asia-Pac about it -- it's just looks but QX, like in is I Which the was and probably looking it's and why just looks just the your -- revenue from laggard meaningfully and that year-to-date. let if nitpicking in -- It know just particular answer, at versus QX lockdowns? slowed Or could related QX. reason is sticks And you this just China rest? out to know us like it the

John Wren

Yes.

us prevented we and a felt our probably most is from revenue. businesses, where of shutdowns our other generally shows having and exception, and part of in dearly type affairs, prevented are which executional China the clients that the think I trade

more So shutdowns any area. do than affect those almost executional areas other

Operator

Next, Karnovsky Please JPMorgan. with we'll go the David of to ahead. line go

David Karnovsky

really to pandemic, And changes there out which to down client with stick relates would have about, the as of it the tailwinds areas could you adjust the or of making economy? investment transformation with then, you client you spoke were a had budgets structural lot more of to coming digital is that macro strong softening a in spend marketers and Or if events that? some the the than even worsened were headlines like John, your here quarter. China, are margin? CRM through right now any expect observed at performance Wondering which Outside just

John Wren

the continue. clients we've haven't we year. next the won believe I business. investments And they first are that really announced are and It until structural of quarter it, making start doesn't already will

statement. have I reason So believe to my

The question, I'm first part you of sorry, your would. if

David Karnovsky

some in of did around obviously headlines the client changes worsened, observe any the that Just about. spoke the aside performance you macro about stuff budgets, China through you event leaving just quarter,

John Wren

trends macro out. developed, and Sure. on that the able agility of and And because terms that that occurs. No other clients shift what because I'd to point in are portfolio balance, say as puts we've with takes doing. There the always of the of clients can are we're I

Phil Angelastro

We're this would saw it trends in had number, of gone of yes, as very our not wouldn't second I that was as up any David. were expectations a and the lead indicated -- quarter that months a a quarter, different as conclude result that it to have monthly say us other focused yes, unusual on than good John we anything earlier.

Operator

go we'll Next, to Stanley. of go Please Morgan ahead. the line Ben with Swinburne

Ben Swinburne

questions. have two I

First put M&A work the capital environment. the more is on wanting acquisition about on to talked John, front. you've to

all? multiples capital made But You your a all? some valuations, year. to think, has seller Or follow-up. have come then shifted -- backdrop valuation given I private market just this much? at maybe market follow all started I'm appetite maybe changed focus at wondering And have Or public have your areas at market had if of market backdrop the change in in the so I

John Wren

Sure.

as focus I And most I do of -- in not where think adjusting albeit could and We last through, to to the at for area are fairly the than do although or waiting land I for increases commented more that's increase that's fantasy enough been I we've what their XX of get markets and prepared to also this into back areas That's currencies for potential then expectations, think back were Fed if rates, defend make remarks. they people on quick their the come occurred it capital I'm reasonable of that XX the other the to in, year. deals interested Our in going that my and terms cost all. -- going areas we're all consistent changed to coming with year. -- normalcy hasn't in months, more world rates. we're targets time that us

Ben Swinburne

bit. little us guys I if Great. wondering full then just the was could you help a guidance interpret And year

first the you're outperformed at bit. the the guiding out the X.X% year. you quite up the half to You've I beginning year, for XX.X% numbers, a in laid outperformed X% back of to Rough half, to think what first

plugs saw is So pragmatism that Because what had. out solid, obviously visibility strong continued deceleration second like significant to that where like fairly probably think, you should expect a is -- half low your that, in of half? half. so in first I Or single-digit Is kind we growth the we from be? first the pretty that's to you've a reasonably conservatism, that's

John Wren

about if happens time, not of many because end come God weren't was project time know through and for but in caution back at years, to the Modestly, for two going And -- us just us us amount But for ourselves. last, better ones increased the not cautious. how can. to while. the cautious I'll six to the given cautious. prefer argue, at of could the we're going that past that to is project always quarters. third my cautious, point quarter, to -- months. Well, the we We for again, prepared simply over-deliver business the going you for the fourth know quarter, guidance that from to And you've remain the followed and remarks, you for being overextend have we we a this each We're that be there's we we're those quite it then of by knows in And we October. known are a to where get refer year. long terms of we

Ben Swinburne

year, last in through came fourth that quarter? right, And the Yes.

John Wren

through I It -- the years. all did decades, enough. two in I it's over think come last but oddly mean in it's two

Europe be in again, heat the So to there is becomes -- in or fourth that not. going quarter but

Phil Angelastro

think probably rightly relates our certainly and Experiential execution So we're expectations we think outside and But to are cautious the yes, head our of as our half. overall, than businesses of I things it I cautious control. second are rest of cautious that the portfolio the because mainly more the into as

John Wren

of And thank you the for way. getting that out question

Operator

to Next, ahead. Benjamin Rosner Moffett Nathanson. go we of go Please the with line

Benjamin Rosner

Great.

earlier an margins on as recession relates to up on as Following it question the well.

this nature cost margins much than years engineers to manage you XX,XXX model. able been five This so less your the have you've given or downturns, engineers But of over business variable around Company ago. at economic to more now prior in compared expect year. effectively is X,XXX to the So

fixed your margins, So And meet does if there question it or is was talent, in does cost my managing are engineers model than this less prior context, recession? a economic downturns? technical and that having more variable thinking operating more in about is you how

John Wren

upon performance, flexibility a company, that our incentive into the I operating by was full major unit. of are consideration takes the that set are component -- earned Well, our of P&L margin and pools and incentives mean, costs, based targets in company

our the future. on with than We've cutbacks that us So more at any not present period. one expanded what engineers. expanding going in the all and all contributions expanded helps this to offshore. any are certainly we're short-term our them require in planning we any through making also to item anticipate We've process in business And engineers principally we're significant

The is change not it. ability changing. to it base So manage detrimental I in to see employee mix our of don't our

Operator

go And Dan go next, the with Please we'll Capital ahead. Salmon BMO Markets. of line

Dan Salmon

services. retail e-commerce follow-ups of on couple a and media So

media pandemic big e-commerce that a isn't simply everyone's to they Are clients? whether you as seeing through seeing First, long-term say now of asked in evaluate second, from we're beyond as about debate this a it probably peak I or right broadly? before, And back a sort among or vertical whether lull and e-commerce Are as then can I'd right retail e-commerce spend? go probably I'll that, the broad a traction talk CPG opportunity And again, reopening investors on pausing to now there's projects further? really you services, the expectations? related happens ask bit pulling big of that

John Wren

not it's client-by-client increasing every The of as disproportionate they service they that how It's part terms really size packaged their forward, discussion. knows believe portfolio. And is -- referring in I client a that our the and of in be an and it's reach going goods reasonable to portfolio. It's to balance you're a the customers. area understands go of

And So it's the -- area. takes team I and we've it's forward that puts part the but of very look as looks seen. a and as important forward,

the lull going we market as us parts a out companies. think of had There important therefore out impact supportive those people acquisitions certain can area commerce It's because We're of houses. it compare don't is in prepared COVID place you of in investments to are and that during and making so the be that the I get business. to building couldn't on and in this their ever-increasing technology And move targeted anticipated we've us to an in area. be that environment We more our to forward. to clients

Phil Angelastro

the that to for it's new customers or because game, it media now a additional navigate And on them our efficiently their decisions we just us more increased retail capabilities as find have can to the We I'd area help feeds of et reevaluate cetera. that about have evaluate to complexity help into choices to a clients add, can another complexity benefits dollars. we marketing navigate. make some And them have. help most result, they video where spend a our platform clients inside the they

is believe It's long side, We're think So make clients away. their our to continue for well. going here going we e-commerce side the on continue so do and to certainly run. to we on investments as will not

John Wren

to every break point proof boxes I this from up delivered many that the is And are how house. week of a have

Dan Salmon

point. Fair

Operator

we Huber with go Next, line of the ahead. to Huber Partners. Craig Research Please go

Craig Huber

question Similar earlier. what Ben had

XX% XX% a Just up XQ organically, versus about three-year put first our 'XX. this quarter looking it at about on of basis, up

X%. then up top Second for up will again, half call that the But X.X% the some was X% your year it organic 'XX, using end second X.X% XX.X% of for up, of be of up quarter, of numbers it, second only the XQ to your looking versus year versus of X.X%. here, revenue X%, But post 'XX. guidance puts half the organic at

that you're So, back know year. we in areas significantly case, that's on I from I'd globally first the that just here. we're love if there to in second X.X% thoughts to all. overall significant just further, help it X.X% cautious slowing here years to is your your touch the quarter realize environment could you're the you've deceleration. slow. of the cautious is And or well? verticals saying said Is that trying the explain a up too being X%, up some And if I'd quite as mean I I else of quarter love versus three-year blame to to thoughts three client by you go on half this. in the you repeatedly want you're again, be hear ago, here. working please. at I a But I curious, something -- don't I'm just hear basis, on XX%

John Wren

by and is what gatherings, require Yes. correct is Except are Phil about cautious. you're math which for the affected reflected closedowns, being talked about. of in us The social absolutely executional which business to it's talking

think one to can I where word. go in remarks, back look and And every day that I only prepared endeavor we forecast. our as exceed there's you short at paragraph my emphasize

not if environment. that's So your to justice a I I this prediction in don't question. did know

Phil Angelastro

XXXX. in now in than it -- the different portfolio here the bit was 'XX a Craig, Yes, is quite

on. growing the how have is that anymore can three on spend and how any certainly something business and looking focused We're today. say, I So, to not on we're we're we focused portfolio relative the ago to is years today we time not XXXX doing back

that the right relates that 'XX, pretty we're has terms our percent about that So, guidance. and and think far provided, and would how we've of bit changed since is second And portfolio year then the what X.X-plus be. to there's outlook cautious where as looked I the quite X% the don't at in in would the on a we've think since touched numbers changed just for half, bit we guidance meaningful comfortable with And then. I go think any trends it a has I we quite draw as as world our

Craig Huber

Sure. My organic portfolio? organically attract the if be you double of us the of at on X.X% taking rest tell you similar China, it second rest How other took question digits, can China? low Asia-Pacific would In out out number, Asia. is quarter similar to the the up

John Wren

Phil give you try he'll question. to one your second, If answer

around the I've quarters that to and even been have only forecasted year, recall that it's third You this God also is we've knows many revenue. that how this time

so So being anticipate to could being infants -- it, caution. infants at it at you formally you're going -- our

Phil Angelastro

say think safe I our in So, terms performed rest and consistently to in the the of numbers. with growth the organic portfolio portfolio of of the rest Asia it's reported

Operator

no further there handing comments. management time, this for are questions, back at closing it And to

John Wren

Thanks joining appreciate us forward time, really at seeing Certainly, investor lot. I'm you We and coming a we going to to the over today. for thank and months. your look events weeks you all

Phil Angelastro

you. Thank

Operator

for our That your Thank you conference does Teleconference. using for AT&T conclude and today. for participation

You may now disconnect.

Omnicom (OMC) 19 Jul 222022 Q2 Earnings call transcript