Earnings Per Share

12 Months Ended

Dec. 31, 2022

6. Income (Loss) Per Share

The following table sets forth the computations of basic and diluted income per common share for the year ended December 31, 2022:


	Year Ended December 31,
	2022
Income Per Share - Basic
Numerator:
Net income	$	65,842
Net income attributable to Class C shareholders	(24,452)
Net income attributable to other equity interest holders	(14,121)
Net income attributable to noncontrolling and redeemable noncontrolling interests	(38,573)
Net income attributable to Stagwell Inc. common shareholders	$	27,269

Denominator:
Weighted Average number of common shares outstanding	124,262

Income Per Share - Basic	$	0.22

Income Per Share - Diluted
Numerator:
Net income attributable to Stagwell Inc. common shareholders	$	27,269
Net income attributable to Class C shareholders	24,452
	$	51,721

Denominator:
Basic - Weighted Average number of common shares outstanding	124,262
Dilutive shares:
Stock appreciation rights	1,896
Restricted share and restricted unit awards	4,467
Class C shares	165,971
Diluted - Weighted average number of common shares outstanding	296,596
Income Per Share - Diluted	$	0.17

Restricted stock awards of 2,292 as of December 31, 2022 are excluded from the computation of diluted income per common share because the performance contingency necessary for vesting had not been met as of the reporting date.

The following table sets forth the computations of basic and diluted loss per common share for the year ended December 31, 2021:


	Year Ended December 31,
	2021
Numerator:
Net loss attributable to Stagwell Inc. common shareholders	$	(3,706)

Denominator:
Weighted average number of common shares outstanding	90,426
Loss Per Share - Basic & Diluted	$ (0.04)

Anti-dilutive:
Class C shares	179,970
Stock Appreciation Rights and Restricted Awards	9,509

On September 23, 2021, the Company provided notices of conversion to each holder of record of each share of the Company’s Series 6 and Series 8 Preferred Stock. Pursuant to the notices, the 50,000 issued and outstanding shares of Series 6 Preferred Stock were converted into 12,087 shares of Class A Common Stock, in the aggregate, on October 7, 2021, and the 73,849 issued and outstanding shares of Series 8 Preferred Stock were converted into 20,949 shares of Class A Common Stock, in the aggregate, on November 8, 2021.

SMG’s equity structure, prior to the combination with MDC, was a non-unitized single member limited liability company, resulting in all components of equity attributable to the member being reported within Members’ Capital. Given that SMG was a non-unitized single member limited liability company, net income (loss) prior to the combination is not applicable for purposes of calculating earnings per share. Therefore, the net income (loss) in the table above includes the income or loss for the period beginning on the acquisition date through the end of the respective reporting period and as such will not reconcile to the respective amounts presented within the Consolidated Statements of Operations.