IPG - Earnings call transcript Q4 2021 | The Interpublic Group of Companies, Inc.

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Operator

Good morning and welcome to the Interpublic Group Fourth Quarter 2021 Conference Call. All parties are in a listen-only mode until the question-and-answer portion. [Operator Instructions] This conference is being recorded.

If you have any objections, you may disconnect at this time. I would now like to introduce Mr. President Relations. Vice Senior Leshne, of Investor Jerry Sir, begin. you may

Jerry Leshne

by you being morning. our On CFO. and our Good CEO, Johnson, us. Krakowsky; by call for joined with Thank our are today, Philippe Ellen we

have our interpublic.com. on We slide website, our and earnings our posted presentation release

Q&A at We begin X:XX by Eastern. with to conclude to be prepared will plan remarks, before call followed our and market open

cautionary our statement call, further During and is slide uncertainties refer company. about These SEC. the will statements the the are filings we other our this and detailed in forward-looking the that included and XX-K earnings to subject to with in release our and presentation

We transparency operating performance. these for Krakowsky. of a my will We and substitute measures. useful in our turn to measures, financial point, this Philippe while believe pleasure non-GAAP over allow for not to the measures things GAAP also review greater that supplemental is it refer certain At provide data that, to

Philippe Krakowsky

thank joining Jerry, you, you're us all well. hope I and keeping Thank morning. this you for

updates our will followed I Q&A. provide our quarter key We're usual the to performance. in full start for our of conclude high at be strong level the performance I'll with Ellen detail. and very year developments and full will share with additional agencies year. then quarter to view a on As pleased by fourth

numbers, than the want another once to Their to results. of to I to continue however, around XX,XXX and colleagues year more turning the thanking central Before be begin dedication our professionalism by again outstanding world.

turn, driving for have margin industry clients growth of world. technology on the and people the consistent a years of that to is integration levels in around and delivering creativity, now. of Interpublic are Our This, sectors number distinguished across the complex and data

the quarter. in our to results Turning fourth

also pandemic. line. as the recall, to XXXX, revenue negative of the organic fourth a trend net was year is relative the due of XX.X%, of our underlying that strong organic to X.X% was to quarter impact you'll note quarter change important our organic two very XXXX fourth It's against increase growth that's X.X% the when, was which positive Our

of the sectors. and double-digit in XX.X% grew again the and Compared public, across and markets. sectors, percentage growth in was well of was in XXXX, X.X%. the segments organic increases We in services broad-based Organic quarter, was to telecom as both XX% led consumer double-digit at double-digit in industrial organic by clients goods. sector strong tech was growth and growth had in the U.S. growth international client the services Staying growth client also world our full our For financial operating auto, our two quarter as and again other XX.X% sectors. and year, growth rates. year retail, we were healthcare Among and regions in

our was IAN At Our Morton data increased McCann, organic by hit the pandemic that increases segment, and by Octagon, a offerings, growth segment DXTRA Huge. were and our of strong organically were MullenLowe ago. media, our and and offerings FCB, XX.X% R/GA there Group, XX.X%, Jack led two by we reflecting year technology hardest

We Weber brand. and also strong Golin had by Shandwick, Future performance

expenses. and profitability to Turning

was growth we supporting to execution evolving in Our as and quarter teams and Fourth million, invest were $XXX.X net income disciplined to offerings. continued able their our our continue further reported.

quarter year $XXX.X program in the shared XX.X%, consistent to a XXXX. brings EBITDA was ago full restructuring the XX% of margin our margin in with adjustment the you to to and is XX.X%. EBITDA with our $X.XX and expectation million, update. That billion relating a October in Our we compares before XX.X% and to year our That was margin XXXX adjusted adjusted an which

expense our quarter. the usual throughout been has than case pandemic, there the As pieces of in were this more base the moving number

chose strong of talent led to base pay that which payroll year also that the due of our support reflects a and expired during fourth was XXXX to to largely comparison severance our end put in the in that in growth, and to at expense as in market expect. in also placed we effect pandemic ago, quarter for performance-based as our year, that compensation, as reflects take operations to Compared investment the well base results benefit on actions expense improve elevated still to and due increased were forward. temporary the reductions last we a Expense but and conditions. efficiency tighter for in further XXXX, significant Our delevered to to increase you'd the quarter our the

For full year, on payroll expense. leverage we the had operating strong

increased a temporary of We've from to direct ago growth. strong very progress expense for in with our significant year result staffing consistent made a as labor Our revenue. levels revenue

So forward. going that's a cost abate that should

in way, other expense leverage our office we occupancy. for the Going expense, had our on and other significant

our full significant from we acquiring key have reflecting transaction XXXX, Since last Acxiom, we maturing continue metrics was and million several to prior and items. fourth per decreased share the paid senior full relative share. expenses track EBITDA to year expense quarter Acxiom XXXX. all since EBITDA, a was growth, diluted were against material continue at financial related With Further, cash notes strong low as $X.XX grown the our as than adjusted of operating $X.XX adjusted financial performance, very year our In they Fourth year's EBITDA our the year sum, while quarter. to as per completes a to to adjusted debt have in for grown $X.XX but paid ago, by of $XXX XX% reported deleveraging Acxiom, cash our that debt fourth earnings million, key in we and to a XXX program metrics. credit history, resulting quarter on fact flow, our a to earnings higher October levels longer last down from Our we strengthened in billion. bad levels travel-related at the improvements very

year XX% years, four same by margin industry we've from marking Over organic compared we've significant points XXX period, outperformance to those direct four XX.X% and adjusted XX.X% over competitors. expanded growth to the our driven compounded basis of

growth, addressable landscape We're forward growth reflects driving with therefore, successfully seeing. economic Confused creative the and our data accountable to are transformation with our move clients and delivering integrated are business recovery world-class by cyclical storytelling helping to a the than changing that our relationships, solutions and as marketing more value of offerings validate as investments capabilities. and and Our enhance models. rapidly marketers has well environment amid increasingly and the complex that strategic client journeys Heading that adapt we're change performance an we're media technology, XXXX, look our positioned higher in seeking success client their solid is of focus strength our global caliber our the confident for macroeconomic of of a The us with our longstanding our as business clients marketing, talent and of and environment. underscore teams. dynamic of continuing coupled programs into operating which well own focus

XXXX course, comparables. another growth, are ahead, COVID to the that ahead of and on look be of that Yet Of anticipate we geopolitical multi-year top aware year strong inflation risk. uncertainties industry-leading we we and of will as year challenges from

consolidate that at in such, XXXX. EBITDA with in level are X% months the organic significant As margin expect XX XX.X%. we over we growth full adjusted approximately targeting achieved that, of very of growth, level past we the And year in gains revenue a will XXXX, of

levels will In to with that and compensation history. normalized travel inflationary closer help target our performance-based outlook investment of includes development the growth. expense at consistent current have business across to that include margin year, environment, pandemic running number and Our trends puts we're business. expenses, range fall mostly the to we're that on impact costs will all with a longer-term managing I strong our levels for We actively within begin employee future to support been a and That a their our other of during norms. as industries. takes of the anticipate reported incorporates also world. our low more categories. our unusually employee growth of is a of consistent are post-COVID which operations begin to believe this related build This our broad the seeing in normalize return range should which modest to a These both what Certain historic the investments in light incentives and expenses offset retrace

XX.X% be expect evident we continue with in going also healthy We structural to Further, cost of which we incremental which we've our XXXX to to generated benefits growth organic expect of forward. see in the With revenue is to actions, of growth, continue margins delivered will revenue which XXXX a factor underlying that expect and the further adjusted saw most in that margin of and the EBITDA margins a approximately under period years with consistently continued remains that, then years, we ahead. expand growth, X% opportunity over XXXX at play. many

now allocation. Turning to capital

We well. positive share developments have to as

Given $X.XX consecutive to which period This of pleased share decision the dividends, announced per strength the our share. program. of pandemic. raise by of X% our repurchase also once operating to resume year higher We're continuing Board's we've to this morning our quarterly results, IPG's our continued dividend marks XXth again uninterrupted through

program On our And to an maintain resources Board call order and You'll up view credit in recall as results. enhance under ratings. time deleveraging. our we flexibility a sheet in-depth our while our We're restart as this the on focus more seems appropriate our of for that share $XXX our of plan we million. of announcement authorization had we and financial more to a continue following program, of like the of resuming balance operating repurchase we'll commitment suspended hand transaction Ellen do to note, well to the our to Acxiom financial an to the manner in debt now and

Ellen Johnson

our their accomplishments. is I I safe healthy. hope for you. to that Thank and thank would people everyone join and Philippe like terrific

valuation a facility. and reversal. small restructuring tax our loss the was $X.XX with EBITDA XX.X%. as net with the and sheet operating and share was position top in $X.X presentation, of exclude credit quarter acquired organic defined ago to again That industry. from intangibles, XX.X% adjusted X.Xx to our the earnings before per accompany reported was, on webcast. as the revenue year charge, the business net as As the XXXX balance X the of of the debt was $X.XX dispositions a year amortization XX.X% our in for track to at presentation year growth restructuring brings program, margin of the from growth EBITDA organic growth fourth Adjusted the XX.X%. net Slide quarter million, to on Beginning and of remarks adjustments will a on and reminder, a of two after-tax slides X.X%, year in gross to a increased with financial We benefit $XXX.X concluded cash the amount that impact billion strong Diluted our revenue a my

quarterly Board under Our we this increased and pleased a share $XXX our dividend authorization. are new year to to million repurchase resume $X.XX

P&L to for revenue expenses in X, you'll in quarter. Turning the I'll see and the Slide operating our slides follow. that detail cover

year fourth the revenue to Slide quarter Turning X. on and full

quarter a increase $X.XX in QX was XXXX, disposition points, impact basis certain basis billion, agencies. Compared ago. exchange Our the was negative reflects of non-strategic which revenue the points. an were small to in million year our $XXX.X change XX net Net of divestitures XX from of rates positive the

increase the we to year. the the At the our is segment segments. double-digit segment the in quarter, growth organic slide, the XX.X%, year. quarter in right Our had brings which XX.X% us organically. In of break net grew revenue We full this slide, IAN out both on bottom revenue and the for XX.X% was

segments offerings. to worth We marketing similarly have notably services XX.X%, major was with double-digit growth our strong It's this DXTRA, noting IPG first will new At reflecting two growth quarter number reportable increasing growth three. of the here we report, across introduce beginning that across segments, disciplines. all organic year's from

opportunities organize reflect new order how around our our to Our capabilities, we reflect business changes markets of run the in to scale. and expanded to IPG the the and services further value of help segments evolution

IPG. segment provide will reporting of changes updated for reformulated be an and these Our view

segments to April. more report of at quarter our have share will in first our about We the new time

Slide to on Moving X.

quarter Performance Our was region and by decrease segments quarter. the revenue our broad-based grew across of and XX.X% organically against year both ago. IAN The X.X% and growth was in strong U.S. a of full a DXTRA revenue revenue markets The and the for U.S. our was in the quarter our across XX% and were the XX% net of organically. XX% year. XX% net International client increased in sectors.

X%, by same McCann the largest includes markets Europe all which and organically, increased Italy, media, that recall reflects Germany, ago. IPG and of led a The France by tech markets XX.X% Spain, decreased You'll our the by data increases Netherlands. and offerings our Continental X.X% year grew DXTRA. in national that U.K. across

Australia, and notably we strong. see a XX.X% Japan. Brazil organically, a performance X.X% the from with all Argentina, China Singapore, in with increased decreased continue growth LatAm, ago. of strong Pac quarter. results to Colombia, Asia organic and were In in year India Chile exceptional

Our of and and Canada other those which the international each markets Middle of reflects XX.X% group, organically, Africa consists grew across double-digit growth which markets. East

operating Moving on in X, expenses. Slide to

adjusted Our XX.X% to XX.X% margin XX.X% compared and the was Fourth XX% a for EBITDA year in quarter XX.X% compared year was in XXXX. fully ago. XXXX with margin

for quarter some this was our as and senior XX.X% pay with compared salaries total temporary slide, a still year's on our in of see net can when revenue related ratio were teams. you of of expense reductions last XX.X% place fourth As in percentage

compensation was incentive lower severance. for was notably expense employee Our ago performance-based expense our year also as a for

our see recall, a to continue in as globally actions, of XX% which, resulted may reduction estate the We strategic to real the benefit X,XXX you well XXXX footprint. elimination restructuring our positions of as

mainly Our lower direct office estate our and the growth. occupancy by and to expense expense on decreased XX.X%. points restructuring That of reflects our real net leverage a XX of revenue percent as basis to due other

for office and on compared We all of lower percent revenue, to reflects also year other bad a our last direct expense reduced growth. other leverage revenue which and debt expense as

expenses, to they which higher not related levels, pre-pandemic than and still travel While are year back ago. a were

an leverage X.X% the X points. points categories. we XXXX. XX of full XXXX, increase With XX.X% of Our of for basis Slide year operating SG&A compared expense had our same revenue, depicts in margin leverage those XXX was net basis of to operating

can XX direct and our by of salary you on XXX As see this related and and our expense. points ratio have basis office improved basis on we leverage slide, points other

XX by deleveraged expense SG&A points. Our basis

begins results fourth of our side give left-hand reported comparable to detail quarter to EPS. results EBITDA, our with our through on This transparency diluted and excluding Slide on restructuring order present in performance. X. better Turning adjustments to you to This picture a and steps and the adjusted adjusted

Our expense the operating column million, was The adjustment Below benefit loss of acquired the we the $X.X $XX.X X, tax in amortization was in $XX expenses had million. related restructuring intangibles and second was a for disposition small Column the had businesses. on this quarter, in mainly the of the of few quarter small to in Column nonstrategic benefit $XXX,XXX right, a due in of Slide of which tax The to in of full expense result the the million $X.XX X as European due To reversal the is we comparability. $XX.X one other slide, the At of tax similar slide, EPS impact our share. see is share and per diluted continuity adjusted which markets. profitability improvement. our the for the each per diluted reported adjustments, of foot $X.XX again, at of diluted for these per earnings of bridges X to can benefit the depicts adjustments $X.XX year, you valuation allowance share. after-tax the sustained in was This diluted million.

$XX.X was expense million. amortization Our

of were for Dispositions over a book in the million. $XX.X year course $XX.X the restructuring million. of charge resulted loss Our

level which our Cash for that to tax EPS disciplines adjusted cash strong better of $XXX.X incentive lower few That Also, a of to our cash XXXX. is result in the which factors of to a to strong diluted reversals for As A in our On was anticipated growth in seen, was we The our million, compensation capital. XXXX. the effective $X.XX, generate compares results. allowance first of over working highest the adjusted The working accrual by from in XXXX. stronger-than-expected on for is capital had, Note tax XX% from the million. billion and impact you've turn million comparable was to is $XX.X again, we net in quarter ago. notably, operations $X.XX of Slide when increased was early rate billion, XXXX for full the full contributed year increase year of our we full the history. profitability compared diluted was program valuation result extinguishment million. company's year quarter. working in capital Cash $X.XX Most an XX $XX due XX, $XXX.X XX%, flow from performance-based million jurisdictions. EPS loss $XXX another in debt to year tax strong benefit than

As we pointed can out component a volatile highly cash flow. total of in the be past, our working and capital is seasonal

our this area in to in continued capabilities of invest We important have insights operations. and

used the Our million million. activities investing $XXX.X year, $XXX.X CapEx reflecting in mainly of

sheet. net Slide and our $XXX.X our ended the Our for is diversified representing Our debt financing was over the cash level. cash summary, of billion accomplishments was current of that, activities well-positioned it to track notes, the XX outstanding to liquidity schedule, our performance our XX, in having the teams I'll equivalents. high billion, down and depicts year-end common would at $X.XX the $XXX We Slide in our environment. maturity balance growth. with two-years strength an their the And Slide dividend continue of increase $X at In our unprecedented paid our XX year balance of continue people and pay billion. a turn especially Philippe. of portion the stock on like back of again $X.X used recognize off totaled million. senior and record execute last of maturities of debt the with million October have The our to us profitable to in sheet I year

Philippe Krakowsky

Thank you, Ellen.

had success. back in Previously, IPG for media accelerated the and in strong creativity pandemic and strategy, technology-driven the drive collaboration we've behavior, of consumer anticipated built few which shifts that in going talent innovation, ways quite to invested and continues discussed IPG, that the client see from results, you combination can culture at we've years. As and a fuel our

As well-positioned of able commerce, increasingly were to a democratization a in and that contributing disciplines, Throughout and performance effective brands layer, agency clients remain for range inclusive management, creative our and help this expertise client direct-to-consumer media, look our of with to ad Across into data win outcomes. partners expertise the economy. marketers and data technology range and data is best-in-class of cases, solutions channels increasingly Acxiom, foundational IPG's digital XXXX, with use in first-party Kinesso we tech growing can of tap Matterkind.

And benefits again specific technology digital a require media the and see to model, in focused and teams, highly at the effective remain well led think e-commerce client our down strong also branded builds by brands and deep specific all York media, continue architecture consultative partners by In investment we have customized, to combination to ability to We Awards excellence recognized capability. changes of the channels Festival's is Awards. by in increasingly open on New Data the our are right the the addressable That ecosystem, them from who us Within the We and are of XXXX, a to data leader. USFC see teams. needs, quarter, we And marketers our integrated call realize holding media, we company and sector. now the Company of to highly understanding be which capable highlights tech offerings. strong Year looking And growth continue Holding delivering data in agencies. why the of of and this integrate deep drilling with at expertise at disciplines That's and resourced. the granular Year Company Holding I audiences. creative were most the once results major of and tools helped were One where of this the named as also Club. backed the Advertising Media media, we

ING and the UM Age defended saw to successfully won a Best Ad significant And year, business. highly markets. and recently number as Group very as in During named account its strong partner its by QX global we a as H&M of key by with a out a with at also Work closed Grubhub being domestically Henkel quite was QuickBooks win in of international Dyson. review. a named quarter, the media competitive in Initiative also UM January, win a It Place well

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Operator

you. Instructions] Our with [Operator Thank first question from JPMorgan. is David Karnovsky

ahead. go may You

David Karnovsky

market in strength like hoping by factors you ad much outsized capitalize to consumption? moment. at recovery you. the your of do in on spend some could the structural you media generally the trying expand changes see How changes versus cyclical Hi, was the thoughts behavior, in is highlighted, driven of thank on marketers Philippe, you advertising consumer I on

Philippe Krakowsky

welcome? Look, environment characterize overall healthy. the you are I and How would is

a seeing the I deepening think of to clearly, clearly we're relationships think think for that's marketplace. host clients, consumers. of understand across I the focus And a I broad although range is and reasons, the of right? value in to, on channels, want active need both, So being with

highest we make I at Bowl. a the feature mean happen then for integrated to this And And demand campaigns. to kind so of what's are data-driven is capabilities weekend. got I that surprise absolutely So strong platform. is of need which other It's place Super for right? accountability, clients media, a that's and But component, We've of won't for are life see services digital to who you, kind say clearly thinking work look and to demand, still very news and a got effective the key, for on you've there's right? component, of the precision going of going in going still bring greater I'd sort brand mass where area and number

a land, an their and a because value to you when articulate see that, want range they then the I So looking again, touch product, differentiate service, idea all to of full launching land when points think those. of new of across marketer a is

when it when think were about, that – I'd you mind there, sort healthy. factors you kind I think what come out of in other put about of Now QX to was as say, activity QX project

interest also our there's an work in are doing. that services of and agencies marketing kind So activation the

tracked to a small overall the back important quarter. still of we about think circa of I piece So probably event, sort That that offering. the modestly QX of level in an XXXX. if experiential then growth our of offering, north XX% think the overall but part you in And was of of that were seeing

think speed think broader things an there's on, going we're – a shift that marketplace can you to also on. I the what's have given a and But the you of all what definitely that a going combination of understanding that going So seeing There's is the those of what's I a in recovery both. of you have to on. tell complexity voice

business in some they points their that story, of to the and terms pressure of their drive other need their forward. And feeling how are clients franchise

David Karnovsky

for Okay. And then if just could. Ellen, I two

Is has investors inflationary think some expand for I quantify at any actions impact base about on Thank the the it second to the you. repurchases think salary gone? that should your how and taking sense pace? then I And mentioned XXXX. can of buyback, on look the know if to don't pre-Acxiom for you some was you're fair manage?

Ellen Johnson

Sure. Good morning.

of our a start a That So and budgeting very starting was target. margin – with product process. thorough long I'll first with

I there, it there a in the be the have normalize. you expect we a severance is margin. inflation record go yes, takes, confident of believe managing modest proven implicit bunch restructuring we would very puts will would that So manageable. as We're all while comp, XXXX. temp and there fact some And in Incentive of track And back is in should to savings.

points. If I mean, you years, our increased go back we've margin basis XXX four

our that. So we manage in ability confident feel very to

allocation. on, Acxiom your consistent that. proud And of as result capital a delevered to we've share now happy to the be acquisition, buyback, we're question disciplined early resuming done it. to had We we on Turning we've very and approach a and said from

on I would basis back of both spending, as to well history go So as to it. our components look past at the annualized an seasonal

David Karnovsky

helpful. you. Very Thank

Philippe Krakowsky

you. Thank

Operator

with from The next is you. Thank Ben Swinburne question Morgan Stanley.

go ahead. may You

Ben Swinburne

everybody. morning, good Hey

Philippe Krakowsky

Ben. Hi,

Ben Swinburne

buybacks company your in think have a we leverage then, on have think us in cases, products Just that addressable is guys little going Hello. over sort that XXXX? the of both Philippe, well which to something think even, brought to a maybe of balancing leverage time? your media target there couple grade. is guided about and or help of around want spend to the disciplines acquisition secular market, think to example? maybe or to ahead numbers. looking could to areas as like sort guidance, you Ellen, both. Particularly lot the with growers, But you of out leader. next be front parts being haven't I the competitors as you a recovered compared who talk the some bit your that years drive – manage over a about guys events, imagine higher of you you And about would their comparing are a helpful. you for of that that also totally any about trying Anything level can is growth Thank investment but we business just expectations

Philippe Krakowsky

which areas of the think, think it mean, I head as are lease we sort of at think to of QX, the sort the strongest we surprise new I you look of into I what kind bid. okay, Look, to year? Sure. going if aren't you in helps growth seeing

region good kind really to a were help, in we strength pull So from media, of think data and of disciplined the quarter. care, had about Health view. U.S. is it view. where McCann the is it a tech sector if as if Acxiom I particular. had point a Clearly, FCB across mean, of of board. strong. you brand there a Media point as sort strong, you

kind where to But you've line connect events So the what you're data I out, at ability on capabilities side my we of clearly of the things more it's layer. tech to look helped creative this ideation and think we called that in when that of the those the got and you experiential and data by businesses, to the services XXXX. fact in the do through terms they're and levels to comparing fairly depressed recovery, mind, as marketing on of

be going not kinds to we're of societal kind restrictions, that that lockdowns of what's the is clearly of response COVID seems see there to lingering think of effects positive the normalizing. I to whatever

of those their assets. But are place a first-party probably to But a And repository continued are place do so something can they modest I areas the as sub our very part think X% we data. we lot which going a we marketers we of of way It's going to as say, portfolio. where of it portfolio. smart – of other as as think through with some there. all we're on, places the clients where the see a all it where integrate build I see at that It's look opportunity see can is focused I

So with they're settings. live consumers in interacting

think build you through you so And that think going a on be in beneficial that is when can to experiences I a basis, going-in for really marketer. a those way

Ellen Johnson

to business, need question, very CapEx our consistently them. of and very we've with the in well answer both to too. having to as ratings. maintaining valued, We're flexibility We dividend happy through maintaining a invest both been M&A and we through your to our in to organically also sheet strategic area, we're excited We've very have consistently capital. maintain be balance And our And as this a that increased returning But share return going to consistent financial and that's strong plan repurchases. to credit change. not balanced

Ben Swinburne

in delevered like lean that into Is again Acxiom? post that now looking XXXX? to you you're guys you've acquisitive to Would be something

Philippe Krakowsky

the connected that's the the whatever When clearly like because call available we've can we – been worked and where e-commerce like areas those it an well for areas commerce is business. thoughtful, and the that Acxiom where always experience, Look, having capability commerce, you and – if to it's asset moving sort us. I definitely that's of integrated now effectively technology areas it really having is and consumer deleveraging. preferred obviously, or an And you in as build brings going breadth avenue it about, that's to change we're are high. it think, a a of of in invest help through IP been accelerate distinctive, clearly us I But of find that can think disciplined whether you having over digital through that's clearly I And it, rate ourselves, think said, be approach but time. and come very the

in looking, be areas So think, to thoughtful we're way. in those I going a definitely

Ben Swinburne

Right. Thank very you much both.

Ellen Johnson

Thanks.

Philippe Krakowsky

Thank you.

Operator

is you. MoffettNathanson. with next Nathanson Michael question Thank The from

You may go ahead.

Michael Nathanson

about, out the the be gave there in three the you've Thanks. company mid-teen stack we and in Is anything those guide quarter, regions an have in term organic marketers digit period that of one long term Philippe, you and to in better organic fourth position where right? that out? you tailwinds So, wanted the of given term. wouldn't company thanks. part just like to I and you came two positioning why coming aren't of next So for accelerating short looks are things or your the organic it Was of figure the in just there like growth that in growth. the and kind out I'm growth, us, is, Short why two-year anything one or the UK years pandemic stepping your And trying XXXX? reason XXXX? going? thought and then that the there about back is call And the how that of thinking consistent for Europe

Philippe Krakowsky

question of would same is out, put you the But who frame average. it, take I by, to there. I'll need competitors a the stack assume I'd on think scenario you Well, be, some mean, pandemic that take whatever to volatility a okay, and so I we that about – period, still three-year industry growth think multiyear I if doing out do you say, stack, we you four-year, say, do. Xx then of backwards. a I target I think guided and say, Look, just do roll them deliver out three-year a you going the do our over And kind right? the if growth growth of that your

that's midst a it. sustainable gotten of competitive our of trying says that modernize business, still out places And more a It's successful so assess been where in to ahead ways think platform importantly, a And I you see to growth. and mind, says it move go. there's that. But offerings. lot of reasonable the and big and And through the to very for we're go-forward and we've

and to the tends the performing. us sort a a of regions. year, take nature So whether But couple of in I'd size in mind, marketing for that there, not into marketing assets very the and the would assets performance. all in, but or an the be, whether that, that out project assets, a few for overall any quarter. a services And to or a how we to look of We think a hockey I didn't had think, question not us – a all did the sort got call indicator my the business at And that what it to international that's quite I UK of we you specific to perform in Oddly on which But had represents opportunity. strong on stick. quarter services doesn't was enough, I region Ben's any that specifics, call the region, perform them is well. looking it's was the sort client, the UK I we've variable it's of that a – then also, of question, of our specific at business say, then to of as that well. translate And had and put bunch a of going sort to had we we're

Michael Nathanson

what asked. That’s I Thank Okay. you.

Philippe Krakowsky

Thank you.

Operator

Thank you.

comes from Jason Citi. Our Bazinet final with question

go ahead. may You

Jason Bazinet

the the [Indiscernible] the disconnect you to it your expansion lot over than industry seems of years. in perceives are firm overall how the this so me growing and between guys a faster there's margin the where and on still side ground, economy that facts the buy

come containment? question way more And of you that more much more you has of value from XX% talk that your this from value margin this to buy higher to much my three-segment think to world? as the XX%, has expansion it how have a expand that And side from margin add that services the just you've about to How had is, understand your mid-XX? allow will clients? date move or complex there might to adding sort of so you reporting, of is range to apart when to value in disciplined do cost come to allowed the clients tease you And sort Thanks. the up

Philippe Krakowsky

other I think will strong that to the is very the then is many segment because additional asked. brought of clearly unlikely And then line I in to you we And also case in that is in only point, our the that and business, we've are be accretive growth very over in and our integrated the also really they're seen try are the sight margin. segment I to thing you growth, of to evolve mean, years better fact think sight question where – our the of broad Look, view you into precisely to the last data view large care give the behind it's that a call we're media, that try thinking do not range clearly, your adding we that to three-segment because of out few a accretive they're the thinking but give with performers into stronger you've where is of the direct business to and But to it health places tech, could growers, about are how right? clients, run, third they're be continuing going that services to bear. a or in line

– also, that building, got progress clearly you say, how cost of the business There's But our work – clients, they of the we're and trying in you fact move but sight of we've restructuring. engage that of into how going there going. more and as line commercial as terms the give as through you well teams is as model, of in do say, So generating we are of still with clearly we in the model in for benefit is to the terrific disciplined management, to we're nature regard. process, that's some this value evolving there's what we keep how in terms terms clients,

Jason Bazinet

you much. That’s great. Thank very

Philippe Krakowsky

No, please, thank you.

Operator

back it closing speakers I'll turn any to And for remarks.

Philippe Krakowsky

that's line particular both again, as And and for just fact we're we're about on a on side a time. a the going what's our recapping excited execute. giving year you to on all We ahead. because call said, look, cover very thank of know Well, everybody to require this the focused to there's sight. that you lot But quarter we're we

in relatively short So you got thank up. coming and you, call We've we'll talk order. the to

Operator

Thank This concludes you. today's conference.

may time. You disconnect at this

The Interpublic Group of Companies, Inc. (IPG) 10 Feb 222021 Q4 Earnings call transcript