Company: STGW
Filing Date: 2025-03-11
Form Type: 10-K
Source: 0000876883-25-000009
Chunk: 126

Company: Stagwell Inc
Filing Date: 2025-03-11
Form: 10-K
Item: Item 8
Chunk 126
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 to expand its global footprint to support clients in international markets. Historically, some clients have responded to weakening economic conditions with reductions to their marketing budgets, which included discretionary components that are easier to reduce in the short term than other operating expenses.The following table presents revenue disaggregated by geography for the years ended December 31,: Geographical LocationReportable Segment202420232022(dollars in thousands)United StatesAll$2,336,988 $2,058,883 $2,218,681 United KingdomAll165,103 160,954 181,764 OtherAll339,125 307,340 287,347 $2,841,216 $2,527,177 $2,687,792 Contract Assets and LiabilitiesContract assets consist of fees and reimbursable outside vendor costs incurred on behalf of clients when providing advertising, marketing and corporate communications services that have not yet been invoiced to clients. Such amounts are invoiced to clients at various times over the course of providing services. In arrangements in which we are acting as principal, contract assets are included as a component of Accounts receivable on the Consolidated Balance Sheets. These assets were $135.9 million and $141.9 million as of December 31, 2024, and December 31, 2023, respectively. In arrangements in which we are acting as agent, contract assets are included on the Consolidated Balance Sheets as Expenditures billable to clients. These assets were $173.2 million and $114.1 million as of December 31, 2024, and December 31, 2023, respectively.Contract liabilities represent advanced billings to customers for fees and reimbursements of third-party costs, whether we act as principal or agent. Such fees and reimbursements of third-party costs are classified as Advance billings on the Company’s Consolidated Balance Sheets. Advance billings at December 31, 2024, and December 31, 2023, were $294.6 million and $301.7 million, respectively. The change in Advance billings of $7.1 million for the year ended December 31, 2024, was primarily driven by $290.7 million of revenue recognized that was included in the Advance billings balances as of December 31, 2023, the incurrence of third-party costs, and cash payments received or due in advance of satisfying our performance obligations. In arrangements in