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Segment Information
 9 Months Ended
Sep. 30, 2021
Segment Reporting [Abstract]  
Segment Information Segment Information
The Company determines an operating segment if a component (i) engages in business activities from which it earns revenues and incurs expenses, (ii) has discrete financial information, and is (iii) regularly reviewed by the Chief Operating Decision Maker (“CODM”), who is Mark Penn, Chief Executive Officer and Chairman, to make decisions regarding resource allocation for the segment and assess its performance. Once operating segments are identified, the Company performs an analysis to determine if aggregation of operating segments is applicable. This determination is based upon a quantitative analysis of the expected and historic average long-term profitability for each operating segment, together with a qualitative assessment to determine if operating segments have similar operating characteristics.
The CODM uses Adjusted EBITDA (defined below) as a key metric, to evaluate the operating and financial performance of a segment, identify trends affecting the segments, develop projections and make strategic business decisions. Adjusted EBITDA is defined as Net income excluding non-operating income or expense to achieve operating income, plus depreciation and amortization, stock-based compensation, deferred acquisition consideration adjustments, and other items. Other items include restructuring costs, acquisition-related expenses, and non-recurring items.
The Company has three reportable segments as follows: “Integrated Agencies Network,” “Media Network” and the “Communications Network.” In addition, the Company combines and discloses operating segments that do not meet the
aggregation criteria as “All Other.” The Company also reports corporate expenses, as further detailed below, as “Corporate.” All segments follow the same basis of presentation and accounting policies as those described throughout the Notes to the Unaudited Condensed Consolidated Financial Statements included herein.
•The Integrated Agencies Network reportable segment is comprised of Constellation (72andSunny, Crispin Porter Bogusky, Instrument, Team Enterprises, Harris, and Redscout brands), the Anomaly Alliance (Anomaly, Concentric, Hunter, Mono, YML and Scout brands), the Doner Partner Network (Doner, 6 Degrees, KWT Global, Union, Bruce Mau Design, Vitro, Harris X, Northstar, Veritas and Yamamoto brands) and the Code & Theory Network (Code & Theory, Forsman & Bodenfors, National Research Group, Observatory, Hello Design, and Colle McVoy brands) operating segments.
The Integrated Agencies Networks provide a range of services for their clients, primarily including strategy, creative         and production for advertising campaigns across a variety of platforms (digital, social media, television broadcast and print) as well as public relations and communications services, experiential, social media and influencer marketing. These operating segments share similar characteristics related to (i) the nature of their services; (ii) the type of clients and the methods used to provide services; and (iii) the extent to which they may be impacted by global economic and geopolitical risks. In addition, these operating segments compete with each other for new business and from time to time have business move between them.
•The Media Network reportable segment is comprised of a single operating segment that combines media buying and planning across a range of platforms (out-of-home, paid search, social media, lead generation, programmatic, television broadcast) with technology and data capabilities and includes the Assembly, GALE, MMI Agency, Ink, Multiview, and Kenna brands.

•The Communications Network reportable segment is comprised of a single operating segment that provides advocacy, corporate communications, public relations and other services and includes SKDK, Allison & Partners, and Targeted Victory brands.
•All Other consists of the Company’s our central innovations group, Reputation Defender (sold in September 2021) and infancy stage digital products such as Prophet.
•Corporate consists of corporate office expenses incurred in connection with the strategic resources provided to the operating segments, as well as certain other centrally managed expenses that are not fully allocated to the operating segments. These office and general expenses include (i) salaries and related expenses for corporate office employees, including employees dedicated to supporting the operating segments, (ii) occupancy expenses relating to properties occupied by all corporate office employees, (iii) other office and general expenses including professional fees for the financial statement audits and other public company costs, and (iv) certain other professional fees managed by the corporate office. Additional expenses managed by the corporate office that are directly related to the operating segments are allocated to the appropriate reportable segment and the All Other category.
Three Months Ended September 30,Nine Months Ended September 30,
2021202020212020
Revenue:(Dollars in Thousands)
Integrated Agencies Network$288,479 $55,293 $441,229 $163,540 
Media Network103,418 60,777 235,539 185,714 
Communications Network67,348 106,909 157,794 210,100 
All Other$7,389 $5,118 $22,874 $15,616 
Total Revenue$466,634 $228,097 $857,436 $574,970 
Adjusted EBITDA:
Integrated Agencies Network$68,356 $11,270 $100,960 $28,913 
Media Network15,371 8,131 29,789 14,993 
Communications Network10,312 20,231 28,302 39,139 
All Other419 (193)(1,316)(749)
Corporate(6,940)(2,316)(7,656)(3,325)
Total Adjusted EBITDA$87,518 $37,123 $150,079 $78,971 
Depreciation and amortization$(24,790)$(9,974)$(46,122)$(29,838)
Impairment and other losses(14,926)— (14,926)— 
Stock-based compensation(53,465)— (53,465)— 
Deferred acquisition consideration(3,422)(149)(9,456)(1,270)
Other items, net(10,549)(554)(15,298)(2,976)
Total Operating Income (Loss)
$(19,634)$26,446 $10,812 $44,887 
Three Months Ended September 30,Nine Months Ended September 30,
2021202020212020
(Dollars in Thousands)
Other Income (expenses):
Interest expense, net$(11,912)$(1,778)$(15,197)$(4,665)
Foreign exchange, net(893)(856)(1,955)794 
Gain on sale of business and other, net45,621 263 46,806 948 
Income before income taxes and equity in earnings of non-consolidated affiliates13,182 24,075 40,466 41,964 
Income tax expense5,183 2,618 9,205 3,211 
Income before equity in earnings of non-consolidated affiliates7,999 21,457 31,261 38,753 
Equity in losses (income) of non-consolidated affiliates(76)(35)(75)7 
Net income7,923 21,422 31,186 38,760 
Net income attributable to noncontrolling and redeemable noncontrolling interests(9,994)(3,614)(10,987)(4,636)
Net income (loss) attributable to Stagwell Inc. common shareholders$(2,071)$17,808 $20,199 $34,124 
Depreciation and amortization:
Integrated Agencies Network$14,396 $2,292 $19,816 $6,715 
Media Network6,597 4,903 17,041 14,751 
Communications Network2,110 1,455 5,087 4,210 
All Other493 815 2,013 2,696 
Corporate1,194 509 2,165 1,466 
Total$24,790 $9,974 $46,122 $29,838 
Stock-based compensation:
Integrated Agencies Network$32,443 $— $32,443 $— 
Media Network2,608 — 2,608 — 
Communications Network15,384 — 15,384 — 
All Other16 — 16 — 
Corporate3,014 — 3,014 — 
Total$53,465 $— $53,465 $— 
The Company’s CODM does not use segment assets to allocate resources or to assess performance of the segments and therefore, total segment assets have not been disclosed.
See Note 5 of the Notes included herein for a summary of the Company’s revenue by geographic region for the three and nine months ended September 30, 2021 and 2020.