With higher-than-expected growth for the first half of the year, Martin Sorrell-led S4 Capital has raised its full year 2021 organic net revenue growth guidance for the third time, to 40%. Initially the firm had projected a 25% organic growth gain.
The company issued the revised guidance along with its first-half earnings report.
Net revenue for the first six months of the year nearly doubled to £236.7 million ($328 million) with organic growth (which excludes currency and M&A impact) of 56%. Organic growth in Q1 was 33% and in Q2 66%.
Executive Chairman Sorrell stated, “We are clearly in a disruptive, growth sweet spot and our digital only, faster, better, cheaper, unitary, holy trinity” model, which combines first party data with digital content, data and digital media is gaining traction, particularly in a cookieless world.”
New assignments in the first half of 2021 came from existing clients such as Google, Facebook, HP, Netflix, Procter & Gamble and AB InBev, and new clients like Amazon Fashion, FIFA, Burberry, Toblerone (Mondelez), Shopify, Instacart, McLaren and OLX.
The company now boasts five so-called “whopper” clients (i.e., clients spending $20 million or more) including Google, BMW/MINI, Mondelez and Facebook. The firm said it is under a non-disclosure agreement with the fifth client.
The Company, which Sorrell started in 2018 after leaving WPP, now has nearly 6,000 people in 33 countries across the Americas, Europe, the Middle East and Africa and Asia Pacific and a current market capitalization of approximately £4.5 billion ($6.3 billion).