Stagwell reported 1.2% organic growth for the second quarter and 1.5% growth for the first half. But with significant success on the new business front during the first six months, coupled with other expected back-half headwinds, the company reaffirmed growth guidance of between 5% and 7% for the full year.   

Company Chairman and CEO, Mark Penn said, "Stagwell delivered solid results this quarter with record-smashing net new business wins of $113 million, bringing our last twelve-month net new business figure to $324 million.”  

He noted big wins from General Motors, Macy's, Target, and Zales “just coming online to bolster H2. Additionally, the momentum is continuing, with wins already coming in Q3, and an active political season that has been energized even further by recent developments.”  

He told analysts on an earnings call Thursday morning that the GM win, which came late last month, was the biggest win by revenue in the company’s history. Two Stagwell agencies received assignments including Anomaly and 72andSunny.  

Penn said the company is at a “critical inflection point,” with its capabilities helping to pull in multiple $20-plus million (revenue) accounts. The firm he added is aggressively expanding AI deployment, Stagwell Marketing Cloud capabilities and the firm’s global footprint.   

“We are seeing these strategies come together now to set the stage for a strong H2 and 2025," added Penn.  Also boosting confidence that the company will achieve its full-year growth projection is expected “back-loaded” media spending by clients as well the reinvigorated political activity which received a jolt from recent events including the attempted assassination of Donald Trump and the ascension of Vice President Kamala Harris as the presumptive Democratic presidential nominee after incumbent Joe Biden’s decision to step down.   

Penn also noted that the firm would be unveiling a new content management platform and was ramping up a text-based platform called Wonder Cave, a Stagwell Marketing Cloud offering.  

In Q3 the firm will be rolling out several new “do-it-yourself" survey products from Harris. Penn said he was pushing the team to get those “fully out the door,” quickly given the potential growth opportunity they represent.   

Asked about Sports Beach, the sport-tech-creativity experience that the firm unveiled in June 2023 at Cannes and expanded at the festival this year, Penn said the firm was doing a “full review” of its benefits and how to proceed with it in the future. He said it helped drive new business after its debut last year. It could “have a life beyond Cannes,” he said.   

Reported revenue for Q2 was $671 million, up 6%.  

Organic growth in the U.S. was up 2.4% and up 2.1% for the first half.   

By discipline, the Stagwell Marketing Cloud operation grew by 14% in Q2; Digital Transformation was up 0.3%; performance media and data was up 4.4% and creativity and communications was up 5.8%. Consumer Insights declined 2.2%.  

Pictured above, left to right, CFO Frank Lanuto and Penn.