Stagwell reported net revenue of $2.1 billion for full year 2023, down 3.4% with an organic decline of 5.9%. In the fourth quarter, net revenue was down 5.6% to $551,064 with an organic decline (which excludes currency and M&A impact) of 6.7%. 

The company’s major divisions – Integrated Agencies Network, Brand Performance Network and Communications Network – posted organic declines in the fourth quarter and for the full year. 

Bright spots included 31% net revenue growth for the Stagwell Marketing Cloud suite of products and 13% growth in international markets, the company said. 

And the firm expects to turn things around in 2024 with projected organic net revenue growth of 5% to 7%. In part that turnaround will come from strong net new business performance in the fourth quarter, which totaled $65 million. Net new business for the last 12 months was $270 million. The 2024 presidential election cycle will also help.  

Mark Penn, chairman and CEO, stated, "Despite a challenging year for marketing services and digital transformation – accentuated by our client mix – Stagwell grew share with some of our largest customers in 2023, took prudent steps to manage our costs, and invested in digital innovation to stay ahead of the future of marketing." 

New artificial intelligence and augmented reality products will also help with the turnaround, he said.  

Pre-tax earnings for full-year 2024 are expected to be in the $400 million to $450 million-range.