- Earnings call transcript Q3 2022

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

Michaela Pewarski

Good morning, everyone. Welcome to the Stagwell Inc. webcast for the Third Quarter of 2022. On today's webcast, Mark Penn, Chairman and Chief Executive Officer, will first provide an overview of Stagwell's third quarter, followed by a full review of the financial results from our Chief Financial Officer, Frank Lanuto.

We will then take questions, which you can submit through the chat function on the video webcast portal.

prepared contains like data. forward-looking our the remind begin discussion following statements, we remarks, to I'd you Before non-GAAP financial

statements detailed referenced including are effect Company, webcast release and included the year about Xst, comparisons to and and earnings Company's Forward-looking historical guidance, are SEC completed presentation earnings full Unless further this in to those combination, on for our forma prior subject the the been in relating periods uncertainties slide cautionary historical in statements if to will stated, XXXX. the as pro otherwise discussed be had results, the to giving results filings. combination January on

reference, an For we've our investor posted website to your presentation at stagwelglobal.com.

morning's definitions, presentation this Chairman financial to and We and I'd of get non-GAAP over Executive you press explanations Penn. And reconciliations to Officer, also for now to like our Chief data. started, to slide and it release turn refer Mark

Mark Penn

joining Stagwell's reduced net thank record quarter growth, expansion, and margin Michaela, Stagwell XXXX new business. strong net of double-digit to another third us you debt you, delivered results. quarter organic Thank for discuss and

revenue pro both organic with increased and XX% XX% from the large We basis. are organic $XXX organic $X.XX reported Net share and growth. XX% on to revenue excludes by of a incumbents. with million XX% global year to was prior revenue $XXX forma grew billion, growth. up pass-through and a XQ which continue marketing Year-to-date, Year-to-date, the technology XX% costs, $X.XX was billion, revenue, million, increase driven was net XX% taking of service over to most outgrow companies XX% growth. organic

Adjusted XX.X% million, XX line XX% profitability were net to $XXX EBITDA to to revenue. to basis expanded EBITDA points million, XX with growth, and $XXX of XX% margins margins up to points third quarter top XX%. margins and increased Year-to-date, is addition basis year-over-year In strong. expanding

investments to and support effectively, while business to generation. labor manage making new growth our continue We costs rapid

million remains and in greater even, Marketing expenses comp XX%. which operating consistent $X services. Cloud, investments in investments as remained minutes incremental roughly a ratio in technology revenue in margin Our our Stagwell Overall, few discuss strong to our at length in include an we'll

net on Third and healthy, pitch new was XXXX. our $XX million, quarter business giving has record, remained going confidence highest activity us into

million Our top revenue per $X.X XX record. also of contributed a client, in clients average an new net

bottom $X.XX share in we and quarter, EPS. Our $XX strong in earnings net of on line to with and $XX GAAP was growth of $X.XX third even significant million per were share adjusted Net the $X.XX an basis. margins income per $X.XX in earnings GAAP million led income generated Year-to-date, more growth. adjusted and have

service are our any emerging. EPS, related believe is looking our track believe we significantly our have in stock in on are underscores in Stagwell, gain maintaining growing layer margin. per while adjusted capability get the $X.XX confidence In in remains marketplace, our undervalued share that has wider the for per far digital than our By to scale to EPS. the relative to add trends facts its story still, but We upside business, long-term creative growth service XX% achieve significant stand keep on full-service Stagwell media at is beginning positioned greater and measure Two, key adjusted of while traction. to alongside with offering. and share an platforms achieved marketplace, not of Stagwell And One, are share is the will scenario some estimated to Stagwell the we new but I costs to it competitors, effective combining into marketplace. four, at and Three, this SaaS we XX% Evidence gaining a managing the year. offerings is both Stagwell and we'll downside. evolving

As but $XX for Lions the Creativity, force Cannes quarter, which Festival after quarter, XXXX. augurs to the new net it went of well in new million I of this second the in in and International record resulted we business reported, picked lagged business up strongly

most to Stella agency pitch creative was million Other Our new had at wins, when $XX Mills. North and chosen year range notably annual the engagements in Bud secured million through agencies the General creator. NFL, this Anomaly and notable scaled assignments Anomaly primarily expansions of numerous marquee impressive wins XM in $X from and XXandSunny, with notable to including Microsoft, revenue. and creative Light's it major American Topgolf manage Salesforce, of Dropbox,

five Bud pitches increasingly with a and them. winning are share Light, holding in As big we against proportionate companies of the

Brand against eight Last integrated major offering increased reflect Performance over and now year, record flight Stagwell to of the these marketplace. pitches of have a this commerce. the and Media we rebranded its a have result to pitch month, in $X connected opportunities our competitors, scale the Network creative Network billion we'll as of media in officially of We

move media As marketing Irwin as will the partner, exclusive the holistic recently, put offering". it network opposed view "Stagwell as clients potential clients and a meets to a

the digital performance consumer XX% growth and 'XX Combined, quarter XQ, on and XX% year-to-date. media layers, data performance. transformation, impressive grown insights they grew revenue and their net continue XX% in top digital and Our strategy have in of

ramps environment. week. engagement leads -- in Presidential growing into off the relative fundraising a up low persistent next September especially got cycle. Victory. to leading online to driven at theory which growth XX% Our quarter contested net has businesses in Targeted growth of the dollar by somewhat markets with XQ, network revenue driven and code muted to low political another for since elections Poll start our business dollar hotly midterm a season, and double-digit and and digital network show lower fundraising growth late with triple-digit XXXX fewer growth Targeted digital fund The clients integrated donors, fully XXX% by leading fundraising Republican our Creative GALE technology grown was the delivered Victory's advocacy inflationary led transformation agency XXXX.

a quarter well and We onetime potential from larger could be also into a during in the the our even Senate. control which decides October. pausing if it a impact At operations a pushed Hurricane Florida, Ian, in would and runoff sizable the same of Georgia provide time, key market saw boost, important

engagement to year, normalize kick what We as in primaries a expect next be cycle off or Presidential record undoubtedly will XXXX.

returned XX% Travel well Our Media TV increased pandemic, our Data connected Performance as the travel businesses growth as strong after and in demands driven by business, year out-of-home the XX% versus volumes offerings. Media as for digital and prior

into Fortune Harris divisions strategy the strategy continued into dedicated with are consumer C-level layer is and increased strong Poll, XX%, are leading discrete brand XXX A executives critical structure experienced Stagwell digital and where also by part organized third insights assignments. larger Our we and leaders. at demand The that now of

that we some of with so others the have their revenue balance remained labor comp While in ratio industry costs, control, have get quarter. level has costs productivity to let out our labor this

rapidly accounting core putting to and in schedule accounting standardized Our on HR enable services cost is systems services capture lower and team synergies.

goal reduce allowed free ratio X.Xx. the $XXX done net flow on We quarter by expect substantially by to the Strong leverage during this middle cash to our million long-term towards net of debt our of XXXX. to X.Xx our be us with process

Mansoor specific of a include, markets. to architecture data enhance data this empower from Intelligence map, Stagwell for divisions, Accenture, companies road with Officer, data of Fortune Technology substantial by artificial upon September, we will unified in-house our These a and marked solutions He addressable generated for executing offerings. suite believe first, also At we technology a analysis, cloud being marketers. SMC connect leadership transformation convenient serving of and quarter welcoming our Practice. around development hub, real-time Cloud, expanded joins four Mansoor is research the the our SMC's multibillion-dollar SaaS DAS progress data and for senior of who marketer third cloud billion In across The Basha, $X XXX cloud Chief integration wealth Marketing structured including and applied us data Applied each leading intelligence. the research marketplace. on advised professionals tools and is against which Accenture's is type proprietary

second firms unit, worldwide. the nearly and artificial X.X is communications through tools professionals sold PR will million the enhances be which context in The intelligence. These U.S., into PR XX,XXX division cloud empowers professionals the

Studio do-it-yourself basis, a buyers planned capabilities across comprehensive with build estimate media audience, the campaigns to we resulting will Media by as be media on division billion the which empower a market. self-service channels Third, $XX to and analyze nearly

division others. This sponsor will are augmented and we large-scale league and and will in as Media major Twins. out will just key ARound, But to than team ARound form dining. and Specialty the planning stadiums among a three well, of the our travel, channels globally, more started. getting NFL, innovative ARound, with experiences to launched rolling is new stadiums with with take Finally, rolled In news across out late-stage across be soon reach, segments. we numerous X,XXX a with reality Minnesota that able media August, media for and buyers we bases shared major to engage sports, soccer fan ways experience the sports, consumer was are brands empower monetize advertise in enhance

this rate the believe businesses a formally our in them Learn roughly to we've expect well million grow made the X,XXX more We'll leverage the as as be here we million have clients to bring our $XXX quarters, we road own over in generate and Marketing year, this next these as now XXXX. to products Cloud, it revenue select run has we be execute acquisitions, at X it Marketing the Stagwell we networks, years. to against coming across opportunity the more $XXX to www.stagwellmarketingcloud.com. profitable Including marketplace. products the the Over deploying Stagwell transitioning will defined We to map. and Cloud, plus

most Of sheet, do course, balance slowdown? there cash our what a you if position one? question Frank is, DAC payments. will is the there will and frequently improved reduced discuss And is asked

we into Cloud year, expenses as the drive gaining Marketing competitors. our share cash will closely responsibly flow. the year while next watching we our trade the from to Stagwell debt use with have and believe focus next We and ratio launching a maximizing I on further, always can down cautiously

adjusted consolidated to growth Moving into Advocacy growth, to outlook. XX% year. the to reaffirming contribution revenue visibility expect XX% excluding our additional from of XX% million $XXX full XX% the We're million of guidance With we EBITDA. net to revenue $XXX net for fundraising, and for Advocacy our

We also earnings roughly adjusted to per expect in share. generate $X.XX

growing are how our As high our We're and level. next digital transforming wins, that talent new is developing margin and business gaining rivals, can I Stagwell understand fast value outpace high-tech increasing to of of combination to services, with managing offerings new the are products achieving technology marketing and record our and think continues us to rapidly even share more unique take coming growth.

movie, a quarter, followed will film CFO, the delve earnings Now who Presentation] here call short encapsulating more is Lanuto, our [Audio-Video what of I into by Frank the numbers. the

Frank Lanuto

our us morning, Mark. We're have discuss results. you pleased Thanks, Good today join QX nine-month and everyone. to to

period case with discussion As X, combined forma has be will our period $XXX for combination recent results. year was XXXX. or versus million results, supplemented in XX%. been of our which same of January revenue, if business increase my post-merger limited increase pro the million results, our occurred prior in the GAAP an QX as with $XXX a the million on or comments results, the with reported $XXX will include Starting versus today costs, prior was million XX%. Net excluding pass-through $XXX Revenue an for of the

million company common In and Stagwell for period. adjusted available $X.XX prior available over adjusted $X.XX GAAP. deferred compensation, the $X.XX share billion tax to months common to is introduced performance adjusted and an increase same versus by or QX shareholders Adjusted income and attributable and performance adjusted increase share $X.XX was stock-based prior acquisition the EPS nine and shareholders period items was C $XX.X U.S. other over and Adjusted and by or measures. and diluted the shareholders common ended, months, per $XXX the Net and pass-through amortization are expense, versus the million $X.XX periods. higher and earnings months weighted the respectively, in and GAAP For and for the revenue, net $XX.X of income period Class EPS costs, adjustments, in ended, excluding more anti-dilution evaluate the to income income discrete XXX%. income revenue XXX%. net year was an ended, $XX.X net $X.XX prior $XXX million EPS the the net as for We company defined billion as earnings QX million losses, $X.XX million nine the the believe QX, defined of per share fully. Stagwell income respective of higher as million consideration nine per prior $XX.X was the Net useful $X.XX is respectively. net to nine available additional excluding Adjusted to were other. metrics adjusted to rules Stagwell QX shareholders outstanding plus of subject income to is months for net impairment and investors

Moving to sheet. our balance

the creation Apollo, adaptation the a an and acquisitions intelligence-powered During of platform. company; Group omnichannel completed company Holdings, and content the real-time quarter, production artificial software PEP

a equity and October, creative insights Experience, company strategy did to and an it experience. company patterns XX% data behavior software interest, already Maru leverages not map acquired enterprise agency leading complex During the that consumer Limited, and own a software consultancy, with platform and Epicenter technology Group location company. Wolfgang, remaining combined mobile experience the in data

acquisition of and M&A at company's $XXX were has XXth, As deferred million completed company compared obligations in the year-end. QX year. million the now $XXX its activities consideration $XXX for million September substantially The with

XXXX, make For to in expect approximately back we million payments in to XXXX. compared cash $XX million $XX

During shareholders. stock our to program, under repurchase X capital we our for acquired quarter, million the $XX.X million shares approximately returning

previous approximately with and total the $XXX the year-to-date approximately million the the million, authorization. was $XX.X For quarter million for months have X for of CapEx line respectively, $XX.X under Net nine shares in of X.X% acquired have approximately million we $XX a million and remaining or million revenue, our and estimates. year, $XX

Moving to liquidity.

XXth, with reduced operating during cash we million, our $XXX the and quarter million quarter cash as X.X leverage X.X as our of at As to reduce million down times our me, debt At ratio net the times, portion a year-end debt our million $XXX in quarter flows September the we ago, $XXX our strong quarter from excuse in by year against times $XXX anticipated, to drawn used cash ended net level. we flow a free debt -- and last net declined X.X revolver.

year million and to of year. the in in of prior the This cyclical nine Net Ex-Advocacy, revenue We year was quarter, the billion $XXX recently ended an my $X.XX and and $XXX increased operations increase in from $X.XX and strong $XXX XX% exceeding net the $X.XX to for rating rating QX. increase XX% revenue for increase BB- million to our increased the deeper or costs, from BX. S&P expect And debt XX% basis, quarter of pro XX%. Revenue cash the costs, increased from respectively. revenue of pass-through nine revenue from decline to billion will revenue our operating citing of remainder the billion pass-through months, an leverage. the ratio XX% expectations respectively. net or material respectively. XX%. leverage rating Moody's and $XXX BX billion The B+ XXth. increased Ex-Advocacy, from in increase organic increased increase On anticipated forma comments in reduce results of to performance, million further in focus quarter by the and months flows September X%, a XX% excluding Global on revenue excluding the and our QX million credit net family versus increased company's for revenue revenue, and prior an discussion and net credit to increased prior third for an months, for nine Net XX%, the in the year or followed prior XX%. $X.XX

capabilities. principal our to Turning

up from X travel in in to Digital into at and growth year-to-date at and Targeted Multiview performance year-to-date and continued well basis, have election reductions expansions Poll an on Performance following Harris on continued XX% transformation basis, and Theory. the Creativity The organically. and steady and at growth in and fueled their and at exceptional from strong year-to-date growth demand strong and Data at Double-digit deliver strong at in growth of up up some XXXX rebounding and business, expanding Code was high the Communications by experienced across steady by at organic transformation, We brands. organically, growth wins continued at relations communications. Ink, client at was at repositioning grew strategy, Street media an very Media Insights cycle, strong as pandemic, X% Main Consumer new quarter ahead XX% election experiential QX grouped and We insights by QX agencies our by growth the NRG XX% and strong continued portfolio, by growth in growth driven and growth as was Assembly. Advocacy wins Necabaca, business contributions in business team the organic driven creativity our our demand. driven Victory contributions offset including and XX% strong and areas, ongoing and new by Strategy SKD, Hunter. consumer XXXX, combining in Doner and steady digital business our across X% cycle year-to-date midterm QX X% business data, GALE, year. Instrument, growth business, XX% Anomaly, Allison from led media & and Modern growth and public

prior in increased period prior to margin of $XXX or with in an XX $XXX higher basis Adjusted points. from million to EBITDA costs. period Turning XX%, nearly the by QX from EBITDA the approximately XX% million

or EBITDA period higher EBITDA months, with For to $XXX approximately $XXX growth prior adjusted the margin XX% period XX from in prior of million the an basis points. XX%, million approximately versus increased nine the by

net net contribution and million and decline revenue revenue earnings additional expect And With manage of guidance We net Advocacy relative for This morning. to The to under to a $X.XX. to fundraising approximately while our and markets. to for year-to-date, the our reflects inflation to for just a cycle fundraising, into closely adjusted EBITDA of for and XXXX ratios incremental XX% XX% large company we is consolidated more in to EBITDA compensation XX% growth, at to year-to-date. $XXX XX% to in prepared QX XX% in QX That from $X.XX concludes impact excluding of efficient our per races, continue of XX% contribution the Advocacy modest share due to the guidance. full remarks this reaffirming presidential contested hurricane from $XXX revenue million Advocacy visibility XX% revenue its moving year. finally, persistent adjusted delivering and

We're Laura to and Internet we're now Director One could with us. some she delighted We Needham be Managing with and going to will World Center, joining Trade Q&A. & turn start and is Company. at questions here Senior Laura at us live from media Martin, analyst here

If you let's And button submit turn top screen. via the the some of your stream, please to them have live at on questions now the chat questions.

Laura Martin

Great.

Okay.

record guys So income business, to When business? $XX have you you now lag guys the opportunities, of like things us how Could the get $X to listening time have looks one it new just you through from they the statement? in said does million which of tell billion a pitches call, the the is P&L? flow was pitch and in you you between flowing it XQ. What's into start new

Mark Penn

of was when just pitches. the I context to about old Sure. put million $XXX I in of Look, in, year, was a think about what as MDC, there started some CEO

will I the fair central win get then in great you go we combined through team $XX of could immediately the the XX% the Now then into out don't executed $X that life will days. into generally, of we lighter These previous be we size. see from months a could take our context to came see marketing going participate monitor in million share really kind where the new coming give that, you we then between that XX of into and about reported business over pitches that two was little they pattern strong will make almost somewhere that you new depending about upon you and really you've six have. seen in to a and But million business, a see XX I quarter. immediate QX, that We and award. of their to into then, will as year flow of following the ramp up we're and year They of the think coming billion number. call, them, Con we're this in this company new pitches this usually and were see first you day a business going They transition with And an could the generally $XXX expect we remaining. to

have that. as it you Con If at at this have a of and be kind that we lot result I there we a our a And pitch where little that the people pause marketplace, there like opportunities continuing also the and think goes waited a to really look scale of then in the I little sizably of chart, And boom. showed out really was think increased and bit, there unabated. activity seems pitch

Laura Martin

Yesterday on Roku had that in on stay morning. let's fourth said ad point. talking They uncertainties. the toys in that about down and telecom campaigns, is this big cancellations insurance the Roku they quarter So seen Call,

So in in seeing toes, in marketing cancellations, advertising, the tell us for QX both you're now? what off, marketplace view marketplace a happening broader because pushing have tell terms services the guys right much what's ad campaign and us you of lowering of

Mark Penn

that is economy yet. strong. being considered caution in push-offs see I tamed is to, off the anything pandemic the given they we've compared and see we haven't clients nothing or I managed that the I business a that in would in extraordinary right hot, some too but other work I the but projects, XXXX. Look, marketplace, see Fed's say, some consider. quite us nothing seen concern like could I Remember, or at properties now. push have that new problem level when that that don't

at rates. to they going maybe of we the So interest going keep see someday, sweet raising we're But why year, to see that, next right spot it. are maybe we're it,

Laura Martin

all in them you what not Okay. from Roku, hearing which of is XQ QX horrible. is we're Paramount, Google, said haven't Meta, seen have But slowdowns

Mark Penn

that A position. lot share gaining we're this a in of is

you it's marketplace when as I fragmentation that the know don't you opposed So the those in at what would services a of our to turning marketing, unique look people I digital, at growing look be you numbers and economy combination are look like at roaring our do is back. obvious at think an an to come when Amazon there push also that TikTok in marketplace, the analysis The of Walmart did where and digital more recently marketplace. we has in the dollar.

are there, And fragmentation necessarily competitors many lot a are of only part so think, there I of and out eyeballs over and so or slowdown. there this, is just

Laura Martin

Okay.

Let's stay on video.

to You a it some does maybe and space mobile. and taking from is share brought a digital TikTok, of other be which video, tech the seem

You big in for XX% channels, CTV, sector weaknesses that the about quarter shift seeing and had where includes rate CTV towards talk CTV. growth what Can a in you was you're different a talk television? the about small screens, was strengths Can that included you screens? connected

Mark Penn

of seeing shift. issue we're I Look, going be here really to that Yes. I think big Netflix. something a is the think

be, been over And kind mixture very think here. heavy a a that's of going to in not Google shop I of we're very, video. we've

to in Netflix think in our in mix fact, in increase think, really, of the hugely an But going is I service. that, video, disruptive I marketplace. increase So kind the is be of

Laura Martin

And too? Disney

Mark Penn

the eyeball of before came eyeballs, astronomical. of before advertising. came has Netflix people Facebook the but are just and advertising, hours tells TV again, number so TV Disney number our, Facebook of let's

positive ads way. those really will the think in I upset marketplace a

Laura Martin

Driving down CPMs?

Mark Penn

Yes. competition. hope provide it will I more

to their it Our for goal on an consumers make marketers efficient to get to basis. is easier

So good a and is more clients. for for good fragmented our competitive advertising us marketplace

Laura Martin

Great. Okay.

What's what on Victory, over going Targeted heck? So there? the

Mark Penn

going what's nation, the to have our is you Well, question understand. there in on

Laura Martin

this political is donations. USDXX So from and $XX fundraising

Mark Penn

prices fund up, that's down. went that an it given be From as So our went raising earnout allocate readjusted so gas actually, We available could cash will people year next related think funds, it to anyway. position, was temporary. to,

presidential has don't net a nature. is we in this to we think And So as cash race if impact the on will that think be it I short-term long-term a effect. anything, Fed have come the And the largest won't business inflation. the was it impact. back race But X-year history. donations a the back presidential We really turns or that think going think

Laura Martin

Right.

you want some If to do great.

Michaela Pewarski

some Yes, Cloud, and how the longer we characterize incremental through next years? monetization prospects Zgutowicz each which would over of the Benchmark, from three questions versus the four Mark the the analysts to at segments investors investment you Stagwell Marketing for segments require near from and have two most chat will

Mark Penn

there's very I have we platform Yes, substantial because see platforms. there. you the that in think media travel in And already revenue the

you And sponsorship so show do I of, I and stadiums. with for have a a those new then think revenue is an of And at look people engagement earliest think thing, a like really AR stick. experience an ability the generate kind fans hockey promise a around at stadium and to the which you realize really kind that's new media giving platform, to

that I promise. revenue, lot a has So a of immediate lot think of

snowballing. been in out there the the think slowly we've I Comtech it's marketplace,

this acquired Maru. and I We more recently think those are investment products tech than sales at require point. largely built

we've technologies the the again, a we're there as $XX nearly largely million in are to moving I think starting biz. research substantial again, So point in sales. developed revenue and got And

I think making useful the biggest refining the media commitment studios. in the and is technology to

But will the we time roll be. lot product, course, be that think of to where commitment I take the that's longer technology out. a that will premier will and a of hope

Michaela Pewarski

you the and revenue Steve how at cumulative Wells much Fargo, from currently that to on what's staying topic from generating Perhaps Marketing the make? investment Cloud Cahall are that expect you

Mark Penn

we year. in basket the have as million to expect Cloud, define coming that we said, about I As Marketing the in $XXX

just I think when acquired. you figure that Maru was

I would it. characterize so I think way And that's the

of buy we expertise, have that think of because of the ground But the we have I'm thing technologies. and therefore, is because have our $X client that the billion already base, and we have remarkable because we proving I advantages one investing media big of able the the for an $XX low. in investments the invest year. really next keep, quite We're a we maybe eye towards able level OpEx way million $X of profit. in this are developing to we'll to also million and And here, OpEx, we're OpEx keep

huge to So money future. looking that we're put have there the that companies of they not sums out mistakes our make of hope into to things

We we the getting of way very lot We're power. this. are in do cautious a

a every on we out that an $X stadium there take the was or some experience, marketplace the million, a infrastructure we there. beat there in-stadium I look competitors and of fact of is invested small have cloud this out lot allows Microsoft, this to and or were that Remember, a have don't out million with to service this big thing, $X of maybe Officer You the we Chief and an competitor the there to Strategy understanding advantage way. our business in to compared off companies infrastructure ground. it for ability apply full startups or that the relatively unique And us technology the of other get investments

Michaela Pewarski

by A are about revenue? macro to follow-up this to from Could some as Steve. Advocacy guidance? persisting the remark reaction inflation the advertisers? Or related signaling clarify you it you relates Is

Mark Penn

on contributors. impact That and specifically Advocacy was prices gas to just low related the dollar of to the and food prices

Michaela Pewarski

XQ? see flow in cash to and in How do follow-up A consider? the Nice takes results free line Any at the you puts Mark from quarter. third Benchmark. trend

Mark Penn

Frank?

Frank Lanuto

cash for customers take to that It's QX factors. it's quarter and more is media the spend of revenues, it's a production cyclical strongest so, intend historically And dollars place. that the generation. flow activities but combination forecasted

then Super spend. dollars and lot quarter in will five similar generate spots, the that have outflows in QX going a you if some in the Bowl media patterns for production result you're more to So

stable, line improved over is if should indicator are says an trend So history of QX. things see the we the QX that

Michaela Pewarski

flow on investor And will to an zero the possible free use QX. revolver a draw sheet? down or you on the carry at cash expected balance Will repay XQ in from free it cash be you flow If year-end? follow-up revolver, cash paying to by is the

Frank Lanuto

of excess couple We take arrangements. We generally under cash U.S. the a borrow revolver. to down different the in will use the

to And to so We XX, have you SOFR facility, a leads periods. commit then to daily borrowing borrowing a have XX-day XX, facility, which speak. borrowing we

ourselves but ladder to next borrowing, the or extra so on to zero just yourself you that you window flow never the to we to a your interest to sheet still through on find may that have see down the take you're expense paying it find cash in try sometimes how We in too we days. we daily that with So And based revolver. business mandatory hold by opens you can't cash the use down much position your moving that the up. XX may cash and have balance XX offset

out. a a of exercise a it's timing that So it's of and plan an to bit bit

Mark Penn

cash also we're particularly Frank, in efficient, more the U.K. making And international

Frank Lanuto

against to which more recently again, apply We home now cash that flows in U.S. use, we can bring to states a and probably our together there us pooling arrangement U.K., the believe cash Yes. is based. which safely the allow put revolver, we the will aggregate cash generally

Michaela Pewarski

'XX moderate Jeff at as caution in Sinderen seeing marketplace, that you're by cautionary that growth Based a a organic advertisers? to substantially marketing fiscal From the there is in Van B. slowing your will and of the result reason think Riley. on

Mark Penn

look, the in I Advocacy terms structuring think here. year preparing units kind we've and of XXXX ex a during for lot restructuring of of Well, been our

a So for we're ready good XXXX.

of into the my I'd sitting be million. million here a next and be I start any not record point, at a an to, well. probably business up if sitting you at to we're the were new then to that, I'm going $XX here guidance give really saying, look in slowdown, we're this $XX business, here our new on sitting says jump obvious there's record here going be But with able well, that with year. think fewer when we I'd out is face, level you quite business, to smiles with

emphasizing, well, as are So keep I I'm we gaining share. obviously, saying,

out is there that are And that, keep into be of marketplace. you Powell better lots so, to as turns opportunity managers, have the as we and that one market But in at does we We a, in have and the the growing get as did now or lot headroom. plan soft an the carefully a clients would pitches long pitches another, of will to Sure. get we a business and very growing share out as cushions sense long been of up increasing have down, good a from how look if and pandemic. rotate here we landing. it in It if

go our we're if of of business in curve about against cost terms and organic industry to variable the allow here, look what a at of should high the an And rest on are. whatever But go we're has. a have how you rest the importantly basis, comparisons competitors, they or double have share to competitors. our things the most We the we're down. running than up us growth gaining more than And better industry two digital those factors

we So credit will give that. hope investors for us that

Michaela Pewarski

I'll that the questions to Mark And for it comments. chat. closing back concludes from turn our

Mark Penn

review at everything you another growth that you. hope this Stagwell, been the carefully us Inc. has just Thank and Thank moving all. strong of in here quarter direction double-digit you I right

Stagwell (STGW) 5 Nov 222022 Q3 Earnings call transcript