Company: STGW
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0000876883-25-000017
Chunk: 73

Company: Stagwell Inc
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 1
Chunk 73
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 quarter, we reclassified a certain Brand from the Digital Transformation into the Performance Media and Data principal capability, to better align with our service offerings. Prior period presented has been recast to reflect this change. The following table presents revenue disaggregated by our principal capabilities for the three months ended March 31: Principal CapabilitiesReportable Segment20252024(dollars in thousands)Digital TransformationAll segments$116,466 $115,759 Creativity and CommunicationsAll segments303,034 291,653 Performance Media and DataIntegrated Agencies Network and Brand Performance Network109,817 157,020 Consumer Insights and StrategyIntegrated Agencies Network48,891 45,769 Stagwell Marketing Cloud GroupAll segments73,532 59,858 $651,740 $670,059 As of March 31, 2025, Stagwell’s Brands were located in the United States, the United Kingdom, and 33 other countries around the world. The Company continues 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 three months ended March 31: Geographical LocationReportable Segment20252024(dollars in thousands)United StatesAll$512,542 $563,548 United KingdomAll37,884 37,761 OtherAll101,314 68,750 $651,740 $670,059 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, 

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contract assets are included as a component of Accounts receivable on the Unaudited Consolidated Balance Sheets. These assets were $181.2 million and $135.9 million as of March 31, 2025, and December 31, 2024, respectively. In arrangements in which we are acting as agent, contract assets pertaining to reimbursable outside vendor costs are included on the Unaudited Consolidated Balance Sheets as Expenditures billable to clients. These assets were $163.7 million and $173.2 million as