Stagwell’s 2Q revenues slipped 6 percent to $632.3M and fell 5.3 percent on an organic basis.
CEO Mark Penn said Stagwell is “facing headwinds caused by economic uncertainty and especially tech client reorganizations, the effects of which we believe are temporary.”
He is bullish on the second-half and all of 2024.
“We are beginning to see a return to a more normal business environment, and the emergence of Generative AI is providing a runway for future work that we believe will explode in the next 12 to 18 months.”
The company posted a $10.2M net loss during the quarter vs. a $24.5M year ago profit.