| Metric (USD Million) | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 | Q4 2024 |
|----------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| MD&E Revenue         | 981.8  **[0000051644-23-000017_ipg-20230331.htm:16]**  | 1,070.2  **[0000051644-23-000033_ipg-20230630.htm:18]**  | 1,069.3  **[0000051644-23-000051_ipg-20230930.htm:19]**  | N/A | 973.3  **[0000051644-24-000021_ipg-20240331.htm:14]**  | 1,075.4  **[0000051644-24-000036_ipg-20240630.htm:17]**  | 1,043.8  **[0000051644-24-000049_ipg-20240930.htm:22]**  | N/A |
| IA&C Revenue         | 964.1  **[0000051644-23-000017_ipg-20230331.htm:16]**  | 1,010.6  **[0000051644-23-000033_ipg-20230630.htm:18]**  | 966.4  **[0000051644-23-000051_ipg-20230930.htm:19]**  | N/A | 963.8  **[0000051644-24-000021_ipg-20240331.htm:14]**  | 999.4  **[0000051644-24-000036_ipg-20240630.htm:17]**  | 940.6  **[0000051644-24-000049_ipg-20240930.htm:22]**  | N/A |
| SC&E Revenue         | 575.1  **[0000051644-23-000017_ipg-20230331.htm:16]**  | 585.7  **[0000051644-23-000033_ipg-20230630.htm:18]**  | 642.8  **[0000051644-23-000051_ipg-20230930.htm:19]**  | N/A | 558.8  **[0000051644-24-000021_ipg-20240331.htm:14]**  | 635.2  **[0000051644-24-000036_ipg-20240630.htm:17]**  | 644.4  **[0000051644-24-000049_ipg-20240930.htm:22]**  | N/A |
| Total Revenue        | 2,521.0  **[0000051644-23-000017_ipg-20230331.htm:16]**  | 2,666.5  **[0000051644-23-000033_ipg-20230630.htm:18]**  | 2,678.5  **[0000051644-23-000051_ipg-20230930.htm:19]**  | N/A | 2,495.9  **[0000051644-24-000021_ipg-20240331.htm:14]**  | 2,710.0  **[0000051644-24-000036_ipg-20240630.htm:17]**  | 2,628.8  **[0000051644-24-000049_ipg-20240930.htm:22]**  | N/A |

1d6053b3712e365b6bfbe923f2ff3ef4fda6404892c545f23743d224ad7e3a7c

The Interpublic Group of Companies, Inc. (IPG) is a global advertising and marketing services company that offers a comprehensive range of services to support marketers and brands in the digital economy. These services include marketing, communications, business transformation, insights, data, media, creative and production, digital commerce, and healthcare marketing, delivered through a network of specialized agencies across over 100 countries **[0000051644-24-000036_ipg-20240630.htm:21]** **[0000051644-24-000021_ipg-20240331.htm:18]** **[0000051644-24-000013_ipg-20231231.htm:37]** **[0000051644-24-000049_ipg-20240930.htm:27]** **[0000051644-24-000013_ipg-20231231.htm:88]**. IPG's business is structured into three main segments: Media, Data & Engagement Solutions; Integrated Advertising & Creativity Led Solutions; and Specialized Communications & Experiential Solutions, which cover services like media planning, creative advertising, public relations, and data management **[0000051644-24-000013_ipg-20231231.htm:88]** **[0000051644-24-000013_ipg-20231231.htm:68]**. The company aims for competitive organic growth and improved Adjusted EBITA margin by investing in strategic areas such as digital commerce and artificial intelligence **[0000051644-24-000049_ipg-20240930.htm:28]** **[0000051644-24-000013_ipg-20231231.htm:38]**.

1. **Media, Data & Engagement Solutions** - Provides media planning and buying, data management, and audience engagement services to optimize marketing strategies and enhance brand visibility.
2. **Integrated Advertising & Creativity Led Solutions** - Delivers creative advertising and integrated marketing campaigns that combine innovative storytelling with strategic insights to drive brand success.
3. **Specialized Communications & Experiential Solutions** - Offers public relations, experiential marketing, and specialized communication services to create impactful brand experiences and foster consumer connections.

f7129d18e831cf3f6f0e9dcead5e8c41705df6fee84ff80ce74a977d306a0371

| Metric (Million USD) | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|----------------------|---------|---------|---------|---------|---------|---------|---------|
| United States        | **$1,683.2**  **[0000051644-23-000017_ipg-20230331.htm:8]**  | **$1,737.2**  **[0000051644-23-000033_ipg-20230630.htm:9]**  | **$1,759.7**  **[0000051644-23-000051_ipg-20230930.htm:9]**  | **62% of net revenue**  **[0000051644-24-000007_earningscalltranscript4q.htm:5]**  | **$1,662.0**  **[0000051644-24-000021_ipg-20240331.htm:7]**  | **$1,755.8**  **[0000051644-24-000036_ipg-20240630.htm:9]**  | **$1,699.5**  **[0000051644-24-000049_ipg-20240930.htm:10]**  |
| International        | **$837.8**  **[0000051644-23-000017_ipg-20230331.htm:8]**  | **$929.3**  **[0000051644-23-000033_ipg-20230630.htm:9]**  | **$918.8**  **[0000051644-23-000051_ipg-20230930.htm:9]**  | **38% of net revenue**  **[0000051644-24-000007_earningscalltranscript4q.htm:5]**  | **$833.9**  **[0000051644-24-000021_ipg-20240331.htm:7]**  | **$954.2**  **[0000051644-24-000036_ipg-20240630.htm:9]**  | **$929.3**  **[0000051644-24-000049_ipg-20240930.htm:10]**  |
| - United Kingdom     | **$195.8**  **[0000051644-23-000017_ipg-20230331.htm:8]**  | **$216.3**  **[0000051644-23-000033_ipg-20230630.htm:9]**  | **$215.5**  **[0000051644-23-000051_ipg-20230930.htm:9]**  | **8% of net revenue**  **[0000051644-24-000007_earningscalltranscript4q.htm:5]**  | **$210.9**  **[0000051644-24-000021_ipg-20240331.htm:7]**  | **$237.5**  **[0000051644-24-000036_ipg-20240630.htm:9]**  | **$236.3**  **[0000051644-24-000049_ipg-20240930.htm:10]**  |
| - Continental Europe | **$193.6**  **[0000051644-23-000017_ipg-20230331.htm:8]**  | **$214.8**  **[0000051644-23-000033_ipg-20230630.htm:9]**  | **$204.5**  **[0000051644-23-000051_ipg-20230930.htm:9]**  | **10% of net revenue**  **[0000051644-24-000007_earningscalltranscript4q.htm:5]**  | **$203.9**  **[0000051644-24-000021_ipg-20240331.htm:7]**  | **$229.5**  **[0000051644-24-000036_ipg-20240630.htm:9]**  | **$211.7**  **[0000051644-24-000049_ipg-20240930.htm:10]**  |
| - Asia Pacific       | **$191.9**  **[0000051644-23-000017_ipg-20230331.htm:8]**  | **$211.7**  **[0000051644-23-000033_ipg-20230630.htm:9]**  | **$203.8**  **[0000051644-23-000051_ipg-20230930.htm:9]**  | **8% of net revenue**  **[0000051644-24-000007_earningscalltranscript4q.htm:5]**  | **$173.1**  **[0000051644-24-000021_ipg-20240331.htm:7]**  | **$202.6**  **[0000051644-24-000036_ipg-20240630.htm:9]**  | **$190.8**  **[0000051644-24-000049_ipg-20240930.htm:10]**  |
| - Latin America      | **$90.7**  **[0000051644-23-000017_ipg-20230331.htm:8]**  | **$110.4**  **[0000051644-23-000033_ipg-20230630.htm:9]**  | **$120.0**  **[0000051644-23-000051_ipg-20230930.htm:9]**  | **6% of net revenue**  **[0000051644-24-000007_earningscalltranscript4q.htm:5]**  | **$92.6**  **[0000051644-24-000021_ipg-20240331.htm:7]**  | **$110.2**  **[0000051644-24-000036_ipg-20240630.htm:9]**  | **$117.9**  **[0000051644-24-000049_ipg-20240930.htm:10]**  |
| - Other              | **$165.8**  **[0000051644-23-000017_ipg-20230331.htm:8]**  | **$176.1**  **[0000051644-23-000033_ipg-20230630.htm:9]**  | **$175.0**  **[0000051644-23-000051_ipg-20230930.htm:9]**  | **6% of net revenue**  **[IPG_3372433_5]**  | **$153.4**  **[0000051644-24-000021_ipg-20240331.htm:7]**  | **$174.4**  **[0000051644-24-000036_ipg-20240630.htm:9]**  | **$172.6**  **[0000051644-24-000049_ipg-20240930.htm:10]**  |
| Total Revenue        | **$2,521.0**  **[0000051644-23-000017_ipg-20230331.htm:8]**  | **$2,666.5**  **[0000051644-23-000033_ipg-20230630.htm:9]**  | **$2,678.5**  **[0000051644-23-000051_ipg-20230930.htm:9]**  | **N/A** | **$2,495.9**  **[0000051644-24-000021_ipg-20240331.htm:7]**  | **$2,710.0**  **[0000051644-24-000036_ipg-20240630.htm:9]**  | **$2,628.8**  **[0000051644-24-000049_ipg-20240930.htm:10]**  |

f50183fe85d5aecb45528865243b7f73a7eca55888653a541d340017b0e47a89

8244864ad7ae50cec995454c3246155caa243f5878ed79aa7d2bb42ac4185814

1. You mentioned that the shift towards principal media buying has impacted your business in media  **[IPG_3403174_2]** ; how do you plan to adapt to this change to remain competitive, and what investments are required to scale your principal buying capabilities?  **[IPG_3403174_2]** **[IPG_3403174_9]** **[IPG_3403174_6]** 

2. With the underperformance and sale of your digital specialist agencies, R/GA and Huge  **[IPG_3403174_1]** **[IPG_3403174_12]** , are there other assets in your portfolio that may face divestiture or restructuring to improve your growth profile?  **[IPG_3403174_9]** **[IPG_3403174_12]** 

3. Considering the $232 million non-cash goodwill impairment related to your digital agencies  **[IPG_3403174_1]** , how confident are you in the valuation of your remaining goodwill, and should investors expect further impairments?  **[IPG_3403174_5]** **[IPG_3403174_1]** 

4. Given the anticipated top-line headwinds in 2025 due to recent large account reviews  **[IPG_3403174_2]** , can you quantify the expected impact on revenue, and what strategies are in place to mitigate this risk?  **[IPG_3403174_2]** **[IPG_3403174_16]** 

5. You plan to pursue M&A to enhance capabilities in specialized data assets, commerce, and retail media  **[IPG_3403174_9]** ; how will these investments affect your capital return commitments, and do you foresee making acquisitions as significant as Acxiom in the near future?  **[IPG_3403174_9]** **[IPG_3403174_13]** 

b40cefd92c5971c341296a294ebdffa922c3345d13fba6594e873c5f90030782

Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Proceeds from / Repayments of Debt [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

1ec7a6bcb959794006e5825e9de9d464a24a924716823eceaefc51e68804f9f6

Total Revenue [USD, Millions]

Cost of Goods Sold (COGS) [USD, Millions]

SG&A [USD, Millions]

R&D [USD, Millions]

D&A [USD, Millions]

Interest Expense [USD, Millions]

Operating Income (EBIT) [USD, Millions]

Net Income [USD, Millions]

EPS - Basic [USD, Per Share]

EPS - Diluted [USD, Per Share]

a20e339eb2856ae62a33ed5e78a9409937f0d7c8516847727d7ac877461488b0

MD&E

IA&C

SC&E

Integrated Agency Networks (IAN)

- Net Revenue

IPG DXTRA

Constituency Management Group (CMG)

Corporate and Other

Total Revenue

568826c41606cf66dbed56465ac21a1667cc680fdf5a9a368a473a3a1b123599

### Q3 2024 Earnings Call
   - **Issued Period**: Q3 2024
   - **Guided Period**: FY 2024
   - **Guidance**:
     - **Organic Revenue Growth**: Approximately **1%** for the year  **[IPG_3403174_2]** .
     - **Adjusted EBITA Margin**: Target of **16.6%** for the year  **[IPG_3403174_2]** .

### Q2 2024 Earnings Call
   - **Issued Period**: Q2 2024
   - **Guided Period**: FY 2024
   - **Guidance**:
     - **Organic Growth**: Approximately **1%** for the full year 2024  **[IPG_3394098_9]** **[IPG_3394098_1]** .
     - **Adjusted EBITDA Margin**: Target of **16.6%** for the full year 2024  **[IPG_3394098_9]** **[IPG_3394098_1]** .

### Q1 2024 Earnings Call
   - **Issued Period**: Q1 2024
   - **Guided Period**: FY 2024
   - **Guidance**:
     - **Organic Growth**: Expected to achieve **1% to 2%** for the full year. A recent client decision may impact achieving the top end of this range  **[IPG_3380430_8]** **[IPG_3380430_1]** .
     - **Adjusted EBITDA Margin**: Anticipated to be **16.6%** for the full year  **[IPG_3380430_8]** **[IPG_3380430_1]** .

### Q4 2023 Earnings Call
   - **Issued Period**: Q4 2023
   - **Guided Period**: FY 2024
   - **Guidance**:
     - **Organic Net Revenue Growth**: Expected to be in the range of **1% to 2%**  **[IPG_3372433_3]** **[IPG_3372433_11]** .
     - **Adjusted EBITA Margin**: Expected to be **16.6%** for the full year  **[IPG_3372433_3]** **[IPG_3372433_11]** .

dbe59ae5749fde3bd31ee4b2da181498891e6e092aea69474cf94e97b83b72ef

9341acb75dc2d706d4498791841eaeb7d34c933d8ad0fdc9675028a79d61d995

United States

International

- United Kingdom

- Continental Europe

- Asia Pacific

- Latin America

- Other

fca13887c87dcb8aa33ceaeddb53fb4baf30dfa58ad19baa02385c0c2994d3ee

| Name                  | Position                                                   | Start Date          | Short Bio                                                                                                                                                                                                 |
|-----------------------|------------------------------------------------------------|---------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Philippe Krakowsky    | Chief Executive Officer                                    | January 1, 2021     | **Philippe Krakowsky** is the CEO of Interpublic Group (IPG) and a member of IPG's Board of Directors. He previously served as COO from September 2019 and has held various leadership roles over nearly two decades at IPG  **[0001193125-24-094907_d496315ddef14a.htm:9]** **[0000051644-24-000013_ipg-20231231.htm:16]** **[0001193125-23-102061_d23340ddef14a.htm:8]** .            |
| Ellen Johnson         | Executive Vice President and Chief Financial Officer       | January 1, 2020     | **Ellen Johnson** became the EVP and CFO of IPG on January 1, 2020. She was previously SVP of Finance and Treasurer from February 2013 to December 31, 2020, and held other financial roles at IPG since 2000  **[0000051644-24-000013_ipg-20231231.htm:16]** **[0000051644-23-000010_ipg-20221231.htm:18]** .                            |
| Andrew Bonzani        | Executive Vice President and General Counsel               | February 2021       | **Andrew Bonzani** serves as EVP and General Counsel at IPG. He was hired as SVP, General Counsel and Secretary in April 2012 and promoted to EVP in February 2019. He previously worked at IBM for 18 years in various legal positions  **[0000051644-24-000013_ipg-20231231.htm:16]** **[0000051644-23-000010_ipg-20221231.htm:18]** .   |
| Christopher F. Carroll| Senior Vice President, Controller and Chief Accounting Officer | April 2006          | **Christopher F. Carroll** was named SVP, Controller and Chief Accounting Officer at IPG in April 2006. In 2017, he took on additional responsibilities as CFO for DXTRA. He previously worked at Lucent Technologies and PricewaterhouseCoopers  **[0000051644-24-000013_ipg-20231231.htm:16]** . |

82bffc18ac033268bfa086d18d735a5a68532f2ffbe2094a5a4ea4ea7cd85217

| Program Details            | Program 1                | Program 2                |
|----------------------------|--------------------------|--------------------------|
| Approval Date              | February 8, 2023  **[0000051644-24-000049_ipg-20240930.htm:14]** **[0000051644-24-000049_ipg-20240930.htm:47]**   | February 7, 2024  **[0000051644-24-000049_ipg-20240930.htm:14]** **[0000051644-24-000049_ipg-20240930.htm:47]**   |
| End Date/Duration          | Fully utilized during Q2 2024  **[0000051644-24-000049_ipg-20240930.htm:14]** **[0000051644-24-000049_ipg-20240930.htm:47]**  | No expiration date  **[0000051644-24-000049_ipg-20240930.htm:14]** **[0000051644-24-000049_ipg-20240930.htm:47]**  |
| Total additional amount    | **$350.0 million**  **[0000051644-24-000049_ipg-20240930.htm:14]** **[0000051644-24-000049_ipg-20240930.htm:47]** | **$320.0 million**  **[0000051644-24-000049_ipg-20240930.htm:14]** **[0000051644-24-000049_ipg-20240930.htm:47]** |
| Remaining authorization    | **$0**  **[0000051644-24-000049_ipg-20240930.htm:14]** **[0000051644-24-000049_ipg-20240930.htm:47]**             | **$170.1 million** as of September 30, 2024  **[0000051644-24-000049_ipg-20240930.htm:14]** **[0000051644-24-000049_ipg-20240930.htm:47]** **[0000051644-24-000049_ipg-20240930.htm:60]**  |
| Details                    | Fully utilized  **[0000051644-24-000049_ipg-20240930.htm:14]** **[0000051644-24-000049_ipg-20240930.htm:47]**     | Repurchases depend on market conditions  **[0000051644-24-000049_ipg-20240930.htm:14]** **[0000051644-24-000049_ipg-20240930.htm:47]**  |

c1ed9306211b13b4b1192a99fae21699d46519b55b949ed378e4207117ab991d

**Annual guidance for FY 2024:**
- **Organic Revenue Growth**: 1%  **[IPG_3403174_2]**  (no change from prior guidance of 1%  **[IPG_3394098_9]** **[IPG_3394098_1]** )  
- **Adjusted EBITA Margin**: 16.6%  **[IPG_3403174_2]**  (no prior guidance)

83cf8b5abddfa17a9201827be3a8c356c64117f95e3e2b4be2e1046aa8195b15

| Name                        | Start Date | End Date | Reason for Change |
|-----------------------------|------------|----------|-------------------|
| PricewaterhouseCoopers LLP | 1952  **[0000051644-24-000013_ipg-20231231.htm:82]**    | Present  | Current auditor   |

27ccac923afdc50268d7b05270f61fd646092fefa064c4ebbd6e64a3ee0b8ac2

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

- Total Revenue: $2,628.8 million (−2% YoY)  **[0000051644-23-000051_ipg-20230930.htm:19]** **[0000051644-24-000049_ipg-20240930.htm:22]**   
- United Kingdom Revenue: $236.3 million (**+10% YoY**)  **[0000051644-23-000051_ipg-20230930.htm:9]** **[0000051644-24-000049_ipg-20240930.htm:10]**   
- Asia Pacific Revenue: $190.8 million (**−6% YoY**)  **[0000051644-23-000051_ipg-20230930.htm:9]** **[0000051644-24-000049_ipg-20240930.htm:10]**   
- Operating Income (EBIT): $132.9 million (**−65% YoY**)  **[0000051644-23-000051_ipg-20230930.htm:3]** **[0000051644-24-000049_ipg-20240930.htm:3]**   
- Net Income: $24.2 million (**−90% YoY**)  **[0000051644-23-000051_ipg-20230930.htm:3]** **[0000051644-24-000049_ipg-20240930.htm:3]**   
- Diluted EPS: $0.05 (**−92% YoY**)  **[0000051644-23-000051_ipg-20230930.htm:3]** **[0000051644-24-000049_ipg-20240930.htm:3]**   

46e24fc087959866027a2ee59be8109518aadb342b63034c12ee5e52818d2dc1

a82ec23bdbda20218c99ee85d9a52e0a0190b3077fc2b0b6544ff528b8ecad99

06eaf1d6c1c52d04de41f5373331a014385a79672e4e0822b203d834f5c3cb4c

- **IPG recognized a non-cash goodwill impairment charge of $232 million related to the planned sale of underperforming digital specialist agencies R/GA and Huge.**  **[IPG_3403174_3]**
- **The company is undergoing restructuring and considering further dispositions to address underperformance, indicating challenges in its asset mix and operational structure.**  **[IPG_3403174_12]** **[IPG_3403174_9]**
- **Organic revenue growth was flat in the third quarter, and the full-year guidance of approximately 1% organic growth excludes R/GA and Huge, suggesting underlying growth may be weaker than expected.**  **[IPG_3403174_1]** **[IPG_3403174_13]**

16eadafee4f6481dd380dd10e73e14b4e4b175675bffb3d8ef61e1706213a321

1. **Significant Client Loss Impact**  
   **Q:** What's the impact of client loss on 2024 growth?  
   **A:** The loss of a significant client will impact 2024 organic growth, but IPG has incorporated this into their guidance.  **[IPG_3380430_10]**  Without this loss, they would be comfortable at the upper end of their **1–2%** organic growth target range.  **[IPG_3380430_10]**  Now, achieving the upper end will be challenging, but they still expect to be within the range.  **[IPG_3380430_10]** 

2. **M&A in Commerce and Digital**  
   **Q:** Why pursue M&A in commerce and digital transformation?  
   **A:** IPG sees opportunities to enhance capabilities and scale in commerce and digital transformation, driven by client demand.  **[IPG_3380430_10]**  They plan to be strategic and financially disciplined, ensuring any acquisitions are complementary and do not impact capital return commitments.  **[IPG_3380430_10]** **[IPG_3380430_13]** 

3. **AI Opportunities and Threats**  
   **Q:** How will AI impact your business and competition?  
   **A:** AI has been integral to IPG's business, especially in data and media.  **[IPG_3380430_12]**  They are implementing AI broadly, including partnerships like Adobe's Gen Studio to integrate AI into content creation and analytics.  **[IPG_3380430_12]**  AI enhances capabilities by connecting data to content, and they do not view it as a significant competitive threat.  **[IPG_3380430_12]** 

4. **Health Care and Experiential Outlook**  
   **Q:** Will health care and experiential accelerate this year?  
   **A:** Health care performed well and is expected to continue contributing positively, with broad client penetration.  **[IPG_3380430_11]**  While one experiential brand underperformed, they expect these areas to be accretive to growth.  **[IPG_3380430_11]** 

5. **Media Growth and SG&A Investments**  
   **Q:** Can you quantify media growth and SG&A increases?  
   **A:** Media continues to perform strongly.  **[IPG_3380430_15]**  SG&A increased due to strategic investments in senior enterprise talent and technology, aiming to drive growth and efficiency; this is factored into guidance.  **[IPG_3380430_15]** 

6. **Asia Performance Decline**  
   **Q:** What caused the decline in Asia?  
   **A:** The decline in Asia was due to small cuts across various clients, except in India where performance remains strong.  **[IPG_3380430_12]**  Asia represents **7%** of revenue, and no major event caused the decline.  **[IPG_3380430_12]** 

7. **Chrome Cookie Deprecation Delay**  
   **Q:** How does Google's delay affect your business?  
   **A:** The delay in cookie deprecation is not seen as dramatic.  **[IPG_3380430_14]**  Clients have been preparing by focusing on first-party data and alternative strategies, so discussions remain unchanged.  **[IPG_3380430_14]** 

8. **Tech Segment Growth Prospects**  
   **Q:** Can the tech segment grow in Q2 and beyond?  
   **A:** The tech and telco sector is stabilizing, with key clients just below flat in Q1.  **[IPG_3380430_9]**  While not predicting growth in Q2 or Q3, there's progress; full-year guidance doesn't assume growth in this sector.  **[IPG_3380430_9]** 

9. **Working Capital Expectations**  
   **Q:** What are your 2024 working capital expectations?  
   **A:** Working capital is an area of focus, and IPG expects a more normalized result this year. Q1 had the lowest use in about **15 years**.  **[IPG_3380430_11]** 

10. **Revenue Defense in New Business**  
    **Q:** How much revenue are you defending this year?  
    **A:** Specifics aren't disclosed due to client confidentiality, but a significant review is ongoing and important to IPG.  **[IPG_3380430_9]** 

11. **Quantifying Media Growth**  
    **Q:** Can you quantify media growth this quarter?  
    **A:** Specific figures weren't provided, but media continues to perform well.  **[IPG_3380430_15]** 

12. **Strategic Investments in Leadership**  
    **Q:** Should we expect increased investments over the year?  
    **A:** SG&A will be higher due to strategic investments in senior talent and technology, leading to growth and efficiency; this is included in guidance.  **[IPG_3380430_15]** 

fdab944b50b86955cd0716a6ed95f5f19ffe3d092a7b07ec357fc00cb37b5eec

1. **2024 Growth Guidance**

   **Q:** Why is IPG guiding 1%-2% growth for 2024?

   **A:** IPG is guiding **1%-2% growth** for 2024 due to strong performance expected in media, healthcare, experiential, and earned marketing services.  **[IPG_3372433_12]**  However, growth is pressured by ongoing challenges in the tech and telecom sectors, which will continue to impact results, though less than last year.  **[IPG_3372433_12]**  Additionally, net new business is projected to be broadly flat, as sizable wins are offset by two significant losses whose headwinds will carry through the year.  **[IPG_3372433_12]** 

2. **Margin Outlook and AI Investments**

   **Q:** Can IPG continue to expand margins amid investments?

   **A:** IPG anticipates margins to remain approximately flat in 2024, down about **10 basis points**, due to the need for organic investments in areas like AI.  **[IPG_3372433_13]**  While AI investments are significant, estimated around **$80 million** in 2024, they plan to fund this spend internally and do not see it as a significant drain on profitability.  **[IPG_3372433_15]**  IPG remains confident in its ability to convert growth into margin improvements over the longer term.  **[IPG_3372433_13]** 

3. **Growth Guidance vs. Peers**

   **Q:** Why is IPG's growth guidance lower than peers?

   **A:** IPG's **1%-2%** growth guidance is lower than peers like Omnicom and Publicis, which are guiding **3.5%-5%** and **4%-5%** respectively.  **[IPG_3372433_16]**  This difference is attributed to the impact of tech and telecom sectors reducing IPG's organic growth by **3 percentage points** in 2023.  **[IPG_3372433_16]**  Additionally, they're adding media buying capabilities, which may account for some of the gap.  **[IPG_3372433_16]**  The company notes that comparisons may not be exactly like-for-like due to different accounting and business models.  **[IPG_3372433_16]** 

4. **Tech and Telecom Stabilization**

   **Q:** What is the outlook for the tech and telecom sector?

   **A:** IPG observed stabilization in the tech and telecom sectors during the fourth quarter, which is expected to continue into 2024.  **[IPG_3372433_13]**  However, they are not seeing meaningful upside and have not factored significant growth from this sector into their 2024 guidance.  **[IPG_3372433_13]**  The tech and telecom sectors had previously reduced IPG's organic growth by **2.2%** in 2023.  **[IPG_3372433_16]** 

5. **Data and Media Reorganization**

   **Q:** How is IPG simplifying its data and media organization?

   **A:** IPG has recombined and integrated units like Kinesso, Matterkind, and Reprise into a single unit aligned with Mediabrands, aiming for a more streamlined value chain.  **[IPG_3372433_14]**  This simplification is intended to enhance efficiency, help clients drive better returns on spending, and win more business.  **[IPG_3372433_14]**  The performance of this integrated unit was strong last year.  **[IPG_3372433_14]** 

6. **Shift from Creative to Media**

   **Q:** Is there a long-term shift from creative to media spend?

   **A:** IPG acknowledges a trend where clients focus more on media over traditional creative, with creative becoming more project-driven.  **[IPG_3372433_15]**  However, they emphasize that creativity remains valuable, especially when integrated with data insights and precise goal-setting.  **[IPG_3372433_15]**  Clients desire both brand building and performance, indicating that both creative and media are important.  **[IPG_3372433_15]** 

7. **M&A in Digital Transformation**

   **Q:** Will IPG invest in digital transformation capabilities?

   **A:** IPG is interested in scaling its digital transformation capabilities, particularly in premium digital agencies, recognizing that scale matters in this space.  **[IPG_3372433_14]**  They see investing in this area as a priority to enhance their offerings and meet client needs.  **[IPG_3372433_14]** 

691c5fae3cdfa7afe194631b306ce399909655d6c43e41d269e208c1da58e6c8

| Year | Amount Due (in millions) | Debt Type               | Interest Rate | % of Total Debt                                                                                     |
|----------|------------------------------|-----------------------------|-------------------|---------------------------------------------------------------------------------------------------------|
| 2028     | $497.5 **[0000051644-24-000049_ipg-20240930.htm:12]**               | 4.650% Senior Notes **[0000051644-24-000049_ipg-20240930.htm:12]** | 4.650% **[0000051644-24-000049_ipg-20240930.htm:12]**    | 17.0% = (497.5 / 2,919.8) * 100 **[0000051644-24-000049_ipg-20240930.htm:12]** **[0000051644-24-000049_ipg-20240930.htm:5]**                                                         |
| 2030     | $644.3 **[0000051644-24-000049_ipg-20240930.htm:12]**               | 4.750% Senior Notes **[0000051644-24-000049_ipg-20240930.htm:12]** | 4.750% **[0000051644-24-000049_ipg-20240930.htm:12]**    | 22.1% = (644.3 / 2,919.8) * 100 **[0000051644-24-000049_ipg-20240930.htm:12]** **[0000051644-24-000049_ipg-20240930.htm:5]**                                                         |
| 2031     | $496.5 **[0000051644-24-000049_ipg-20240930.htm:12]**               | 2.400% Senior Notes **[0000051644-24-000049_ipg-20240930.htm:12]** | 2.400% **[0000051644-24-000049_ipg-20240930.htm:12]**    | 17.0% = (496.5 / 2,919.8) * 100 **[0000051644-24-000049_ipg-20240930.htm:12]** **[0000051644-24-000049_ipg-20240930.htm:5]**                                                         |
| 2033     | $293.8 **[0000051644-24-000049_ipg-20240930.htm:12]**               | 5.375% Senior Notes **[0000051644-24-000049_ipg-20240930.htm:12]** | 5.375% **[0000051644-24-000049_ipg-20240930.htm:12]**    | 10.1% = (293.8 / 2,919.8) * 100 **[0000051644-24-000049_ipg-20240930.htm:12]** **[0000051644-24-000049_ipg-20240930.htm:5]**                                                         |
| 2041     | $494.3 **[0000051644-24-000049_ipg-20240930.htm:12]**               | 3.375% Senior Notes **[0000051644-24-000049_ipg-20240930.htm:12]** | 3.375% **[0000051644-24-000049_ipg-20240930.htm:12]**    | 16.9% = (494.3 / 2,919.8) * 100 **[0000051644-24-000049_ipg-20240930.htm:12]** **[0000051644-24-000049_ipg-20240930.htm:5]**                                                         |
| 2048     | $493.0 **[0000051644-24-000049_ipg-20240930.htm:12]**               | 5.400% Senior Notes **[0000051644-24-000049_ipg-20240930.htm:12]** | 5.400% **[0000051644-24-000049_ipg-20240930.htm:12]**    | 16.9% = (493.0 / 2,919.8) * 100 **[0000051644-24-000049_ipg-20240930.htm:12]** **[0000051644-24-000049_ipg-20240930.htm:5]**                                                         |

7d12c0aa57611523bd3f82caf674dd11bc372a484639ebe01fd12c09f7b7c253

- **Stabilization in the tech and telecom client sector**, with large clients "just a hair below flat" in Q1; any improvement would be a net positive, as the full-year guidance doesn't factor in a return to growth for these agencies or client sector.  **[IPG_3380430_9]**
- **Strategic investments in senior enterprise talent and technology, including AI**, are expected to lead to increased growth and efficiency, and are factored into the company's guidance  **[IPG_3380430_15]** ,.  **[IPG_3380430_12]**
- **Strong performance and leadership in IPG Health**, likely the largest in the space and recognized as a leader; health care continues to perform well and is expected to be accretive to overall results.  **[IPG_3380430_11]**

636d28cd218ca40d6165760953bfc5cbf3bfc628367e5a236190197f79526abf

- **IPG expects margins to resume their upward trajectory in the years ahead**, leveraging growth and reengineering processes, with AI playing a significant role in generating efficiencies.  **[IPG_3372433_13]** **[IPG_3372433_15]**
- **Significant investments in AI, approximately $80 million in 2024**, are expected to enhance efficiency and profitability without significantly draining margins, as incremental spend is funded internally.  **[IPG_3372433_15]**
- **IPG's strong media offering and forward-thinking agencies like FCB**, which integrate data insights with creative processes, position the company well to meet evolving client needs for both brand and performance marketing.  **[IPG_3372433_16]** **[IPG_3372433_15]**

848aa05188928309a37f6a359b65a87874976466409aaaea2dc6ad26ba4539c0

- **Interpublic Group (IPG) is expanding into principal-based media buying**, which represents a significant new avenue for growth as they move thoughtfully but at pace into this area over the next year.  **[IPG_3394098_13]**
- **IPG is considering strategic M&A opportunities in high-growth areas such as commerce, retail media, and business transformation**, aiming to transform their growth profile and provide significant upside, potentially with deals larger than previous modest acquisitions.  **[IPG_3394098_13]**
- **Despite industry challenges, IPG remains committed to integrating creativity with data and technology**, which continues to be a differentiator and important to clients, leading to significant client wins and strong performance in creative competitions.  **[IPG_3394098_13]**

8c3f733321299b5ea2661510cb16296bbfaae7d27b25d320559ee943951c2106

1. **2025 Organic Growth Impact**  
   **Q:** How will current factors affect 2025 organic growth?  
   **A:** Management cannot quantify the 2025 impact yet but acknowledges potential headwinds from recent client decisions and net new business being essentially neutral. They will focus on new business pipelines and growing capabilities with existing clients. Recovery in tech and strategic assessments may change the outlook.  **[IPG_3394098_10]** 

2. **Client Sentiment and Uncertainty**  
   **Q:** What are clients’ confidence and investment levels amid uncertainty?  
   **A:** The operating environment has become more challenging due to geopolitical and social uncertainties and stagnant fiscal policy. Clients are showing more caution, and decisions on reviews and spend are taking longer or are delayed. This incremental uncertainty is factored into the company's outlook.  **[IPG_3394098_11]** 

3. **Principal-Based Media Buying**  
   **Q:** How will principal media buying enhance competitiveness?  
   **A:** The foundational work for principal media buying is complete and up and running, though it will need time to ramp up over the next year. It will allow IPG to approach clients and media partners with multiple buying models, improving competitiveness in situations where efficiency is a priority.  **[IPG_3394098_11]** **[IPG_3394098_12]** 

4. **M&A and Inorganic Growth**  
   **Q:** What is the appetite for significant M&A opportunities?  
   **A:** IPG is open to larger inorganic opportunities, particularly in commerce, retail media, and business transformation sectors. While deals may not be at the scale of Acxiom, they could be larger than previous modest acquisitions, aiming to change the growth profile of the business.  **[IPG_3394098_12]** 

5. **Impact of AI on Creative Revenue**  
   **Q:** How does AI affect creative revenue and output?  
   **A:** AI presents opportunities to increase creative output and efficiency. It helps in mass personalization and allows resources to be reinvested as unit costs decrease. IPG sees AI as an incremental opportunity across media, data, performance, production, commerce, and CRM, and is training staff and clients in its use, which has become a line of business.  **[IPG_3394098_14]** 

6. **1% Organic Growth Guidance**  
   **Q:** Why move to precise 1% growth guidance?  
   **A:** Management adjusted guidance to approximately **1%** organic growth due to increased uncertainty and cautious client behavior since the last call. The figure reflects their current outlook, acknowledging some variability but indicating a move from the previous 1–2% range closer to 1%.  **[IPG_3394098_15]** 

7. **Europe's Outperformance**  
   **Q:** Why is Europe outperforming the U.S. despite GDP differences?  
   **A:** Europe's growth, representing **9%** of revenue, is driven by client-specific factors and success across major markets like Spain, Germany, and France. Wins at creative agencies, particularly McCann, and growth at IPG Health contributed to the outperformance.  **[IPG_3394098_10]** 

8. **Google's Cookie Deprecation Delay**  
   **Q:** How does Google’s delay impact Acxiom's business?  
   **A:** The delay is not unexpected, and while a complete deprecation would modestly accelerate Acxiom's value, clients are already realizing the need to control their first-party data. IPG continues to benefit as clients seek help in building and owning their ID graphs and is prepared for a world without third-party cookies.  **[IPG_3394098_13]** 

9. **Unified Production Capability**  
   **Q:** Is your production capability unified under one roof?  
   **A:** IPG has a global integrated production engine that has evolved to become strategic and upstream, moving towards scaled platform services, data, and centralized media activation. While there are still some specific capabilities, they are well on the way to operating as a unified whole.  **[IPG_3394098_15]** 

1e2745bfe5d27f2bff2f6633afa0befecf397b241ce7ec599398391502350300

- **IPG is projecting lower organic growth of 1-2% for 2024**, significantly below peers Omnicom and Publicis who are guiding 3.5-5%, due to ongoing challenges in the tech and telecom sectors and with their digital specialist agencies.  **[IPG_3372433_16]**
- **IPG plans to invest approximately $80 million in AI-related initiatives in 2024**, which may impact margins in the near term.  **[IPG_3372433_15]**
- Despite a history of margin expansion, **IPG expects flat to slightly lower margins in 2024**, citing necessary investments and ongoing pressures, suggesting margin challenges ahead.  **[IPG_3372433_13]**

75260a8df39c12f75722ae21a80fa387d7185e6f0b93619eca1bcf85d567921f

- **Digital specialist agencies continue to be a drag on growth, causing a negative impact of about 1.5% per quarter, which persists into Q1.**  **[IPG_3380430_12]**
- **The tech and telecom client sector remains weak, negatively impacting growth by about 1.5% in Q1, with no expected return to growth in the near term.**  **[IPG_3380430_12]**
- **SG&A expenses are expected to be higher going forward due to increased investments in senior enterprise talent and technology, potentially impacting margins.**  **[IPG_3380430_15]**

bd1c0b55a249059965e3f405f22d0d853cf9a6a97a3b61716ca80a5017f95ffb

- **Interpublic Group (IPG) has lowered its full-year organic growth guidance to approximately 1%**, down from the previous range of 1% to 2%, indicating reduced expectations for revenue growth.  **[IPG_3394098_17]**
- **The company is experiencing increased uncertainty, with clients delaying spending decisions**, which may further impact revenue growth in the near term.  **[IPG_3394098_11]**
- **IPG plans to pursue larger-scale acquisitions to transform its portfolio**, particularly in commerce and retail media, which could introduce integration risks and financial strain.  **[IPG_3394098_13]**

03ef0d734e40a0f834927e5655b3592ac7ec5d28a8d96762d80cda6b128e2d3e

- **IPG is actively restructuring its portfolio by divesting underperforming assets like R/GA and Huge**, which is expected to improve the company's growth profile and allow better focus on high-growth areas  **[IPG_3403174_12]** ,  **[IPG_3403174_13]** .
- **The company is focusing on strategic investments in high-growth areas such as retail media tech platforms, specialized data assets, and commerce activities connected to retail media**, which are expected to drive future growth  **[IPG_3403174_12]** ,  **[IPG_3403174_13]** .
- **Despite previous challenges, IPG's tech sector has stabilized and is showing signs of improvement, and their health care sector remains a consistent strong performer**, indicating a positive outlook for these key sectors  **[IPG_3403174_16]** .

d227721e9c78e565bd607489782caf0400b60bc97e66adbcc54c20792771ec99

1. **Q4 Outlook and Client Tone**  
**Q:** What is driving the expected Q4 improvement despite U.S. uncertainty?  
**A:** Philippe Krakowsky stated that the **tone of business is improving**, with clients looking past global uncertainties and U.S. fiscal policy moving in a positive direction.  **[IPG_3403174_10]**  Activity is picking up, with increased opportunities in projects and an active pipeline, contributing to a better Q4 compared to Q3.  **[IPG_3403174_10]** 

2. **2025 Organic Growth Headwinds**  
**Q:** How significant will net new business headwinds be for 2025?  
**A:** While it's hard to forecast a year ahead in October, Philippe acknowledged they are likely facing **headwinds going into next year on the top line** due to some headline reversals.  **[IPG_3403174_10]**  However, he did not provide specific figures for the potential impact.  **[IPG_3403174_10]** 

3. **Divestitures and M&A Plans**  
**Q:** Can you update on R/GA and Huge sales and other potential divestitures and M&A?  
**A:** Philippe mentioned they are **well down the tracks** on the sales of R/GA and Huge, with a **line of sight to a conclusion**.  **[IPG_3403174_12]**  They are open to further dispositions when assets hold them back and see **inorganic growth playing a role**, particularly in **retail media tech platforms and specialized data assets**.  **[IPG_3403174_12]** 

4. **Impact of R/GA and Huge on Guidance**  
**Q:** How does removing R/GA and Huge affect your organic growth guidance?  
**A:** Ellen Johnson confirmed that their **1% organic growth guidance for the year excludes R/GA and Huge**.  **[IPG_3403174_13]**  She stated that nothing has fundamentally changed in the underlying business, and the adjustment is consistent with their accounting practices.  **[IPG_3403174_13]** 

5. **Principal Media Buying Growth Potential**  
**Q:** Why is principal media buying additive to growth rather than just shifting spend?  
**A:** Philippe explained that principal media buying is a **bundled solution** combining inventory, data, and technology, allowing them to offer new product offerings and drive **incremental organic opportunities with existing clients**.  **[IPG_3403174_11]**  This approach creates value by selecting strategic partnerships, benefiting both clients and the company.  **[IPG_3403174_11]** 

6. **Impact of Net Losses on 2025 Growth**  
**Q:** What is the expected headwind from net losses for 2025 organic growth?  
**A:** Philippe stated they cannot provide a specific figure as it's not how they run the business and it's difficult to forecast a year ahead in October.  **[IPG_3403174_15]**  He emphasized focusing on growth opportunities rather than quantifying potential headwinds.  **[IPG_3403174_15]** 

7. **Sector Performance: Health Care and Tech**  
**Q:** How did health care and tech sectors perform year-over-year?  
**A:** Philippe noted that the tech sector, impacted by issues at Huge and R/GA and reduced activity from large tech clients, has **found a floor and is healthier**, though not yet thriving.  **[IPG_3403174_16]**  The health care sector was weighted down by the loss of a big client, impacting first-quarter results, but their health care asset remains a **consistent strong performer**.  **[IPG_3403174_16]** 

8. **Economic Uncertainty vs. Client Activity**  
**Q:** Are clients moving ahead despite macro concerns?  
**A:** Philippe observed that although macro uncertainty was earlier a negative, it has been **baked in**, and clients are proceeding with more conviction.  **[IPG_3403174_11]**  The tone of business has improved as clients **get on with it** despite the noise.  **[IPG_3403174_11]** 

9. **Internal Reorganizations Scope**  
**Q:** Can you elaborate on internal reorganizations and potential asset sales?  
**A:** Philippe said they are realigning the portfolio and being thoughtful due to the scale and complexity of their assets.  **[IPG_3403174_12]**  They are considering centralizing leadership for some assets and are open to dispositions where appropriate.  **[IPG_3403174_12]** 

10. **Client Response to Principal Media Approach**  
**Q:** What is the client response to your principal media buying approach?  
**A:** Philippe stated that adoption is **tracking ahead of expectations**, with many client conversations underway.  **[IPG_3403174_14]**  They have **line of sight to rolling it out** into 6 to 8 international markets next year, seeing significant upside as a fast follower.  **[IPG_3403174_14]** 

b086706f0df1b9d4f541ab97b166eabb259abf6fdbeda4caa1868b616d86085c

Interpublic Group of Companies Inc (IPG)

Financials