Principals: Peter Prodromou, CEO and president (pictured); and Larry Weber, chairman
Ownership: W2 Group
Offices: Global: 9; U.S.: Boston, Detroit, San Francisco, and Washington, DC
Revenue: Global: $29 million; U.S.: $22.8 million
Racepoint Global’s era of growth continued, after it restated its 2015 numbers at $26.9 million globally and $20.9 million in the U.S., having mistakenly submitted gross revenue last year. The firm saw global revenue rise 7.8% to $29 million in 2016. It also saw a 9% uptick in U.S. revenue to $22.8 million.
Bottom-line growth was 16.9%. President Peter Prodromou says that resulted in the most profitable year since chairman Larry Weber founded the agency in 2003.
The momentum carried into 2017. In March, Panasonic System Communications Company of North America named the agency as PR AOR of its mobility business, which includes its Toughbook and Toughpad lines, and the company’s Rugged laptops, tablets, two-in-one, and handheld devices. Dan Carter, Racepoint’s EVP, MD, North America, is leading a team of roughly 15 on the account.
"We’re growing our major client base," notes Prodromou of the growth. "Huawei continues to be a global flagship client."
Racepoint has helped the Chinese tech giant launch mobile phones and tablets, particularly in Europe. "We’re also working with the company on its broader strategy in Shenzhen, where it is headquartered," he explains.
In March 2017, Racepoint opened an office in the Chinese city. Still, Prodromou says some of the key people on the account are based in other locations. "We’ve taken our best people from all over the globe onto the account," he adds.
Racepoint is also attempting to attract more large Chinese brands looking to expand in the U.S. and Europe.
The new normal
While the firm brought on smaller, emerging companies to its roster in 2016, the focus has been on existing global clients, including IBM, AT&T, and Dassault Systèmes.
"The new normal in our industry is that you have to work harder for every client dollar because the [agency] market is so competitive," explains Prodromou.
Staff turnover remains high at 30%. New hires include Tom Parnell, who came on from Weber Shandwick as VP in the Boston office, while the firm’s most senior departure was Matt Bennett, who was SVP, Washington, DC, practice lead. He left for the Motion Picture Association of America.
In the U.S., Racepoint is looking for growth from its Washington, DC, office. "With any new administration in power, there is an opportunity to do some work," Prodromou notes. A new office in Germany may also be in the cards to provide a stronger foothold for the firm in Europe.