Company: STGW
Filing Date: 2025-03-11
Form Type: 10-K
Source: 0000876883-25-000009
Chunk: 125

Company: Stagwell Inc
Filing Date: 2025-03-11
Form: 10-K
Item: Item 8
Chunk 125
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 prior to transferring these services to our clients; therefore, we primarily act as agent for production and media buying services. In situations where we are primarily responsible for fulfillment or have discretion in pricing, we have concluded that we have obtained control and act as principal.A small portion of the Company’s contractual arrangements with clients include performance incentive provisions, which allow the Company to earn additional revenues as a result of its performance relative to both quantitative and qualitative goals. Incentive compensation is primarily estimated using the most likely amount method and is included in revenue up to the amount that is not expected to result in a reversal of a significant amount of cumulative revenue recognized. We recognize revenue related to performance incentives as we satisfy the performance obligation to which the performance incentives are related.Disaggregated Revenue DataThe Company provides a broad range of services to a large base of clients across the full spectrum of verticals globally. The primary source of revenue is from Brand arrangements in the form of fees for services performed, commissions, and from performance incentives or bonuses. Certain clients may engage with the Company in various geographic locations, across multiple disciplines, and through multiple Brands. Representation of a client rarely means that Stagwell handles marketing communications for all Brands or product lines of the client in every geographical location. The Company’s Brands often cooperate with one another through referrals and the sharing of both services and expertise, which enables Stagwell to service clients’ varied marketing needs by crafting custom integrated solutions. We reclassified certain brands between principal capabilities in 2024. The prior year (2023) amounts presented have been revised to reflect this change. The following table presents revenue disaggregated by our principal capabilities for the years ended December 31,:  Principal CapabilitiesReportable Segment202420232022(dollars in thousands)Digital TransformationAll segments$718,371 $636,657 $773,677 Creativity and CommunicationsAll segments1,328,916 1,167,432 1,222,289 Performance Media and DataIntegrated Agencies Network and Brand Performance Network323,978 295,304 279,903 Consumer Insights and StrategyIntegrated Agencies Network190,133 192,209 212,869 Stagwell Marketing Cloud GroupAll segments279,818 235,575 199,054 $2,841,216 $2,527,177 $2,687,792 

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Stagwell’s Brands are located in the United States, the United Kingdom, and 33 other countries around the world. The Company continues