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Stagwell Inc. (STGW+0.59%) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing an increase in revenue to $711.3 million from $617.6 million in the same quarter the previous year. The increase is attributed to new client wins and increased spending in the technology and retail sectors.
Cost of services for the quarter was $457.0 million, representing 64% of revenue, compared to 62% in the same quarter of the previous year. This increase in cost ratio is due to higher billable and staff costs.
The company reported an operating income of $41.8 million for the quarter, compared to $33.7 million in the previous year, with the increase attributed to higher revenue.
Interest expense, net, for the quarter was $23.8 million, down from $25.9 million in the previous year, primarily due to lower levels of debt outstanding under the Credit Agreement.
Net income for the quarter was $13.9 million, up from $3.1 million in the previous year. After accounting for noncontrolling and redeemable noncontrolling interests, net income attributable to Stagwell Inc. common shareholders was $3.3 million, compared to $0.7 million in the previous year.
Cash used in operating activities was $69.2 million, while cash used in investing and financing activities was $66.5 million and $159.1 million, respectively.
Stagwell had cash and cash equivalents of $145.8 million as of September 30, 2024. The company expects to maintain sufficient cash and/or available borrowings to fund operations for the next twelve months and subsequent periods.
The filing also details various acquisitions, including the acquisition of Consulum for $71.2 million, and the extension and increase of its stock repurchase program to $375.0 million.
The company identified material weaknesses in its internal controls over financial reporting and is working on a remediation plan.
Stagwell continues to focus on expanding its global footprint and enhancing its service offerings to meet the evolving needs of its clients.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Stagwell Inc. quarterly 10-Q report dated November 7, 2024. To report an error, please email earnings@qz.com.