Release Date: August 07, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Emerald Holding Inc (EEX, Financial) reported a positive performance in a seasonally smaller quarter, setting up for strong revenue and EBITDA growth for the full year.
- The company has implemented onsite pre-booking at trade shows, allowing for advanced sales into 2025, providing confidence in future forecasts.
- Emerald Holding Inc (EEX) has a diversified portfolio of B2B events, which helps mitigate risks associated with industry-specific downturns.
- The company is leveraging artificial intelligence to personalize marketing efforts, which is expected to improve conversion rates.
- Emerald Holding Inc (EEX) announced the re-initiation of a regular quarterly dividend, reflecting strong cash generation and a commitment to returning capital to shareholders.
Negative Points
- Total revenue for the second quarter slightly decreased to $86 million from $86.5 million in the prior year, primarily due to scheduling adjustments and discontinued events.
- Some consumer-oriented sectors have not rebounded as well post-pandemic, impacting overall growth.
- The company faces variability in quarter-to-quarter organic growth rates due to the timing of events in its calendar.
- Emerald Holding Inc (EEX) has not fully recovered tech marketing spend, which was impacted last year.
- The NSF growth is slower this year as the post-pandemic tailwind diminishes, indicating a return to normalcy in the trade show business.
Q & A Highlights
Q: Can you explain the quarterly growth cadence and the macroeconomic impact on your clients?
A: Herve Sedky, CEO, explained that Emerald's diversified portfolio across various verticals allows for different growth rates. Consumer-oriented sectors have been slower to recover post-pandemic, while sectors like design are experiencing double-digit growth. David Doft, CFO, added that the quarterly growth depends on the timing of shows and the mix of industries, reiterating confidence in full-year guidance due to portfolio visibility.
Q: What are the key trade shows in the upcoming quarters, and can you provide metrics on bookings?
A: Herve Sedky noted that the trade show calendar is available online, and while specific metrics aren't disclosed, there is strong year-over-year yield improvement. The growth in net square footage is slower as the post-pandemic tailwind diminishes, but pricing remains strong.
Q: How are you expanding internationally, and what progress has been made?
A: Herve Sedky highlighted the creation of an international sales division with geographically-focused leaders to drive international business into the U.S. and access government sponsorship funds. This new group has shown success in attracting international companies to U.S. events.
Q: Can you elaborate on the AI initiatives for personalization and efficiency?
A: Herve Sedky mentioned tests using AI to enhance content and marketing efficiency, focusing on personalized messaging to attract event attendees. David Doft added that AI helps leverage proprietary data to attract leads, benefiting both customers and Emerald.
Q: What is the status of the Hotel Interactive acquisition and its events?
A: David Doft explained that Hotel Interactive hosts buyer events, which are highly valued for their ROI. These events, under the BITAC brand, are spread throughout the year and focus on hospitality and design, aligning with Emerald's strong growth categories.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
