EEX - Earnings call transcript Q2 2024

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, and welcome to the Emerald Holding, Inc.

Second Quarter 2024 Earnings Conference Call. [Operator Instructions] Before we begin, let me remind everyone that this call will include certain statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These include remarks about future expectations, beliefs, estimates, plans and prospects. In particular, the company's statements about projected results for 2024 are forward-looking statements. by to could of differ cause those or subject other uncertainties materially are indicated that factors actual implied statements a risks, variety and from Such statements. such results to recently subsequent other and XX-K forth company's on are Such filed XX-Q risks reports and factors periodic Form in set the most filings. and Form forward-looking The not any undertake company duty statements. does to update such

presentation accordance believes of will can call, additional during management a discuss U.S. company's non-GAAP non-GAAP as substitute comparable found or for performance. the release. which isolation results company's to the today's The not these GAAP prepared The useful in of be the can be should it in with reconciliation this in measure information in most GAAP. measures earnings be evaluating Additionally, measures considered

As XX. XX:XX is this call company's be recorded. available replay of a Eastern the p.m. conference Time website will And the of Investors August section this on through a reminder, being on

to over I Officer. ahead. now and to Sir, please the Executive President Sedky, like Chief would Herve go Mr. turn call

Herve Sedky

review brief great -- David and second on of Doft, results. It's today then more a financials. morning, will start everyone. provide to with strategy. our of quarter detail then our be and give you, Julie, an with of Thank discuss all a good our or performance our to I'll you overview overview our CFO,

exceptional year ROI due revenue to second our our for less for and EBITDA We had of full relatively QX quarter the expectations a positive reflect is These the and their trends and us half, provide for smaller performance in show strong up budgets. the growth. seasonally combined performance value schedule, what another customers we significant marketing set which with a

trade businesses, #X or the shows of event year. many are selling For marketing their

results to cost. trade and been is proposition and has The value even show will that underscore developing better tools we an metrics the customers investment shows view value-added ROI deliver a our transparent an than experience. more this as by that goal our believe make Our rather

to an intense sense for We customers to value and continue our plan maximize of loyalty. shareholders, fostering

their well between to Our return as The increasing is customers' and engagements as year to reflected consistent conditions to their shows evidence our continued throughout the each in commitment desire clear. event is year. us in

trade Our have a shows profound impact.

shows, been begun At into just selling have our the all for which half XXXX of we trade XXXX. HX of on-site implemented into exhibitor we've space means time first some prebooking, and selling

a us offers XXXX XXXX. Our continued a highly to confidence view out, which sales up our granular data gives forecasts in exhibitor pacing growth year us for into trends into for and

Looking run ahead, rate. above project revenue historical increases industry's continued our in we

Overall, our step original as meaningful profitability the in this of and another indicates, revenue we both year. forward guidance reaffirmation expect

high organic run double-digit growth annual growth growth digits rate to combined Our longer-term the is mid- plan revenue acquisitions overall. from with single deliver to in to drive

Our inspired the strategy optimization. continues portfolio of centricity, value engagement pillars and to Customer be creation: and our by XXX-day three informed

deploy put drive higher customers improves actionable help customers, services, value per we should add-on across investiture return centricity, dollars the This and our work of ultimately the dollars more receive and stickiness them and platform. to investments Emerald customer data marketing Emerald's incentivizes form from experience In with with to revenue focused they customer. marketing customer the and the are picture delivering improving on greater in clear insights a on -- of on

experience and is a the end, rewarding. financially In personally we provide that unique both

prospects by reenergized our their Our by customers innovations discovered. walk feeling trade shows future they inspired the from and away

to trade reinforces In reach content opportunities This increasing acquisition conferences, is attendees have marketing the of scale by where in shows, numerous cost tests intelligence, engagement the events. and their XXX-day and to engagements, our our to and across teams. customer are This media we we're artificial content commerce. markets, their providing down entry the points leveraging brands driving through our most multiple respective where webinars, cycle we seeing

excited implement in the XXXX. of expect areas fully of it We're early business in the to certain results about and some

better proprietary For prospective our help example, future. readers conversion first-party can efficiently, data scale personalization by assets, leveraging in we to messages expect personalize will quickly and improve these rates can efforts AI attendees. we the our and which

event to X time, targeted and portfolio potential growth. through growth overall. Over improve Emerald's we launches, with to and rates an evaluating points have opportunities, acquisition And to in expect acquisitions optimization, contribute stable industries annual always new our new launches X strategy. revenue profile of event growth we We're order percentage in attractive continue this growth is strong, of our to important part organic

our characteristics Through Emerald Commerce Content our compounder positioning efforts and investments generator and businesses, across in. attractive growth built cash value-added a reliable be and to free Connections, with we're flow earnings

generation, Our Emerald's a with includes modest as have will on of share allows pandemic, cash capital to elaborate. dividend stock shareholders level us focused our common visibility per allocation strategy financial of was David to and leverage, return of the reinitiating stability by during value and capital that driving free the stepped-up expected combined suspended

and Also deeply initiatives central people to that strategy our of lasting the we our customers resonate putting paramount. belief our first, value. is is By create experience personal the always ensure

profitability excess can of growth in we enhancing industry this year. sustain after that confident our and while are deliver year We our trajectory

And the with over David. that, call turn let me to

David Doft

our most continue quarter the guidance. and overview Thank recent of morning. I'll with you, and then financial Herve, discuss and good dividend initiation the

quarter, year revenue, $X.X adjustments impact to adjustments this X.X% several small, events, million profitability quarters the scheduling account scheduling which of increase optimize very acquisitions, as versus For we second was $XX.X by Organic staged the the to look period. show our discontinued takes resource decrease $XX and for was events year calendar; and the discontinued quarter driven primarily events into second year in on XXXX, or the of prior an the last million versus different The where Emerald million compared year of and in portfolio. was slight unprofitable, revenue allocation prior total $XX.X quarter. million

some broad growth other As we've indicative factors. which well discussed, experiencing rates where look we in business our function quarter's industries of basis. of the are one shows, Therefore, a rate and not at than are their as to growth as cycle have faster as is a overall growth of business of year would others full portfolio any you the in a necessarily portfolio, the organic we encourage on

XX.X% excluding $XX.X seasonally Second margin lower EBITDA compared revenue EBITDA, our X.X% the quarter, given base. proceeds, to equates approximately for last This our approximately the $XX.X grew adjusted component against of year. million quarter million adjusted quarter to the an same insurance fixed to cost for of

year $X.X Second quarter quarter. flow million free was cash compared in the to prior $X.X million

expenses. as to is the in SG&A ongoing In Turning in initiatives largely was second million quarter. $XX.X $XX.X efficiency million SG&A versus the prior due to well quarter, year-over-year decrease The year as the incremental remeasurement million closed the SG&A benefit this of acquisitions, from consideration in offset acquisition increase January a Hotel contingent of of that by in estimated Interactive year. $X.X for past

of guidance growth quarter-to-quarter Given the organic Emerald in always some assumed variability has number the rates. serves, our industries

based expected the QX, reaccelerate, to our in assumptions revenue with growth, were while discussed last consistent organic level on specific of QX quarters, and all period, annual the strong mix in reach double-digit that As QX business other that not including guidance. call, QX we expected growth underpin each to contributed earnings our with

sheet. to in $XXX.X $XXX.X XX. Turning of million million balance the XX, as June March We XXXX, as had cash of versus

in simpler As stock, the preferred a a preferred reminder, and dividend completed eliminating in all of the resulting structure. May, equity conversion we early our convertible common

facility. credit Our including $XXX total full liquidity $XXX.X is on million million, our availability

XX, EBITDA, net definition debt credit of our based As of on trailing the our leverage as in million. we credit of $XXX June agreement consolidated leading agreement to million, defined had net $XXX.X XX-month our X.XXx ratio in of a

our rate cash opportunistically our We believe support our has of imply and reflecting sheet that dividend an a $X.XXX note, announce the closing per yield of dividend price. balance as pleased yesterday's business we million, per amount our on of dividend share, On in the $XX of to regular optimize reinitiation ability flow X.X% authorized at share quarterly cash would based Board annualized as an of are Directors value which initial strength a of well generation stock. that to invest our grow and

Prior grow flow. up the to to dividend given And our strong over with coupled intention payer. it dividend historically to generation, COVID, cash cash our with organic a was ratio and quarterly of a our of free is Emerald payout time inorganic growth, target XX%

company's As expected of free cash the visibility stability to to positions the generation ongoing basis. shareholders on position return we an capital us Herve said, believe and

added we financial policy the past presentation quarter, and capital outlining our allocation quarters. deck earnings to over we've discussed that our several slide This a

debt we leverage and $XX remaining in capital, X.Xx dividends share existing back authorization to continue acquisitions; allocation quarter. and after investments our debt shares the in own managing second includes to had to expect returns between our balance We At buying business; on buyback buybacks. any net not capital on quarter end, which opportunistic million EBITDA; below

Turning to guidance.

our within expect This $XXX $XXX to to COVID. year guidance be We runway continue the adjusted an to we approximately EBITDA we will range guidance of investments XX%. way our million this to number adjusted our we $XXX to made, revenue our prior have margins We implies to time million scale over XXXX of the believe, of improve full performance that continues million and EBITDA. work we we business as of the to saw in have that $XXX leverage and back margin million as

for you the line that, very your for now open much questions. with Thank we'll time. And

Operator

from Your Instructions] Barton Securities. question Rosenblatt comes first Crockett [Operator from

Barton Crockett

you could of kind your David, bit talk more in I little here. a if wondering of was quarterly cadence terms

detail the bit in for you the up little growth quarter. could quarter more the a next give fourth and us what around then slower of drives the kind speed If

us us of underneath bit sense that. bit of Just that unpack one what's more, little a -- more give a a question. little kind That's give little

macro obviously, for then in kind an or -- macro we're Herve, for broader of interesting environment. you either And

healthy. impacting terms with You sense what how little pressure guys points, some of that little kind a broad is people bit might pre-bookings, that your of be lot feeling about you from industries or in bit range the of still I a just macro And seeing the feeling you just maybe could if clients. have talk are what you're that a your verticals the deal pressure, industries of and wondering are sense, obviously, of just was feeling. of of

Herve Sedky

to you I very then question. don't pass thank with start Barton, the that for it and Why on much David.

Emerald have portfolio the of the have across the of portfolio And themselves events diversified range of verticals. broad and this events. we the of in in fact leadership One position is benefits that highly BXB this

different seeing -- that mentioned different events clearly, across as performance of are while ranges different different some at other industries verticals in us, for that are so sectors example perform David -- pandemic remarks, the sure. And his for the use haven't more that prepared rates. as is there serve, well the sectors since and recovered I'll are parts the and different as and we of they The consumer-oriented the of

digits a double design well doing The sectors for been has the sector and just and some at is as has big of consumer-oriented been us nicely. has not growing sector rebounded while extraordinarily

spend another So example for would of marketing year. impacted, that got last -- instance, some and be the tech

While has fully -- bounce not not it has seen back. a bounced back, is bounced

do what definitely it's events that's the diversified beauty the because have on is And positions portfolio. on in a sectors. Emerald whole, the different leadership seeing So different in that portfolio positions the we're respective to the performance highly whole. But their sectors, well a of

to turn and also question. I'll over now second to the add more David that to And to maybe address then it

David Doft

your the Yes. are quarter-to-quarter I mean, staging the shows of rates. cadence into that in around calendar question first growth really It year. leads depends when which the

you our quarters, So guidance, guide overall this performance and when because don't look of we overall. at mix it's know, as we in full year

that the reiterate the the stage. to And guidance the gave year that at entire able so beginning events portfolio of in performance of of year we the where those year we're our because continued in of visibility irrespective full

others digits, double a point are good really one. that is there somewhere that Herve's are portfolio. are so between mix that we growing the sectors is very are And There And not. and in strong a fall some as

on to overall. -- each make making performance And the able view of not organic making macro specific growth. that It's call because business. drives should the we trade within show so a broader statement those we're a that serve it's timing show of of It's reacceleration industries taking the a XQ that shows quarter of that

do called is portfolio The other a And them important looking it's add because but really and growth not is that talked industries looking portfolio. growth we're them the are our word specifically pillars, thing -- acquire profile to one, optimization. Emerald I'd Herve enhance we incremental and not we events talk three within about the of incremental looking only very every to use one we And optimization only launch are of events, to so call. about we that

and successful business. And with looking in mix some overall We're opportunity continue last a that. a And can done, to there's a portfolio in to can so drive lot more that years strategy. that better to we've done we do work but in its do to to place of for the the that there's few the better terms tilt growth if we're we've of continue of lots lot we our

us actively behooves look improve there. launch to there's here business to of a M&A never the in And group. more to opportunity look why because to more we for That's continue opportunities accelerator because perfection our that's we it continue and at a mix to the why machine continue have

Barton Crockett

I Okay. wondering the important in by I the could are the I of -- third us quarters. All shows trade wondering leading in growth trade probably you right. tell think that kind what the the have each just if are follow was and quarter? in you shows be quarter If back if up. fourth of half influenced the I in was could the certainly, trajectories

paid sense kind If can terms here. if booking exhibitors metrics you're any under kind booking. any or a to -- you you us then what there's us of what's give of Herve's And expand use have number square or of in metrics upon give footage your kind booking you rates to of seeing can of of per outlook

David Doft

trade our So show is website. calendar our on

events there dates. the are listed their All with of

given pretty you events earnings which if the see. try take individual see it's in online -- shows I we reporting, not data think it's we that name the where. I We on to are think for you segment easy a look, there to calls. pretty But to publish -- really our it's

In terms of exact details of the metrics, we publish don't metrics. those

a digit the our of year-over-year, across strong events. talked portfolio continue we front, see quite surely we work and yield or think bit have the better, improvements I about the pricing on to mid-single

gets been expected we This settling slower that's normalcy the world years as smaller year, because tailwind kind year. X pandemic, of moved show But the business. growth is from than into smaller and trade out the it NSF of or X post-pandemic the back has last to we're we've as of the because

Operator

Your from next from question Klee comes Allen Maxim Group.

Allen Klee

CEO company I the his from just to basically cover potential signed show. I was in customers he confident other up I the me improvement mentioned and the reason that he's talking two And telling there's revenue trade why another day. he's a was main

guys So think say. it corroborates I what lot of you a kind of

in the wanted quarter -- the something one to So mentioned on with, some your I to said start just and during off Barton scheduling changes impacts that conferences. quarter. said of of up you some And you describing follow something guys the that was

they to new if type had events were of to? where moved, some the quarters question there new in or were last -- like Which see quarter time? what moved things I that we would So expect weren't is,

David Doft

timing calendar, every could events and next that couple X in shift been and or and in have shifts they're they're -- So might and in in July. of are of year, it year out out have quarters. might there in weeks they in The year June, March April, been in of a the the it

Herve Sedky

sometimes day, shift quarter... the the Or X in

David Doft

yes. day, exactly. Or X

-- between we so probably that in of last dozen QX adds events. do in main -- Overland events, QX all the quarter some aggregate, a the But to our QX. type a of -- of that. things of out moved from QX, the year, were it moved year that was with second was year there smaller hosted quarters that which this So so or number a that of it for expos some into But one QX run, one the there were that up. then last really has moved events The half buyer

impact it could last year quarters, impacted of on the based impacted reconciliation the you in of it organic So growth, base those this the in movement. shows the see our from whether each or dollar of year

make calculations. So can those you

Allen Klee

one you talk opportunities your about you and In Can said international. we've past, that about had that the you're the think growing doing there of you was what now? that how

Herve Sedky

of course. Yes,

And So with invested in what we've putting we division. number that an have of course done by of international over of are and really resourced that resourced it the sales focused. geographically a sales XX months last a leaders head is underneath the creating

assigned is that around leadership different world. the have to we So territories

While are couple representatives, and -- or work agents of they're they're own do different things. a to representatives territories government representatives, around with offices they world, whether counselor U.S.-based, the they different or

sign and agents businesses to that import help their into market. companies funds, can to put funds, so really have international some One, bring allow But us sponsorship into feet these agents -- street tap to business the really U.S. also the that governments us help grow U.S. international to governments, encourage the on drive U.S., access the and some government businesses

group helping to fact and funds this And these companies so the attract U.S. new these is access in

And to we're was So strong now. that in underweight success that Emerald them is had peers, the we're area some forward looking time while half us, continuing an team strengthen to and new good relative we've pleased. It's for it's about short And up that. fairly a group they've very had and a to yes, running. dozen where

Allen Klee

you Could just testing little remarks, doing more? about AI personalize the some bit to then a and better talked some that go guys Great. them you with metrics. In and your of you're improve into

Herve Sedky

course. of Yes,

ways all, I'm if a of leverage technology. number like not are testing And sure many, companies So different we to have tests.

in more for to off-the-shelf technology, order efficient. technology, we're AI really us effective So leveraging and be

and marketing. so I opening largely my around as and remarks, And our -- it's business in around, mentioned content

So efficiently? write be do it's How what so personalize copy a to effective that messaging effectively an do to more the That's, to in we copy and we and concept more do. be to more we that personalized? more more And effective really can trying is and how a attract can nutshell, allow whole the this events so efficient way. in efficient people our attend we're we

David Doft

So example. other of areas. There's that's one number a

test, few use you is some finding been are Some and of in is and where there areas not when a real as areas, opportunity, we've there not -- But everything successful works. them. one cases, this

the And generate can some when we about one leads for attract which And about, our could Emerald, benefit this talk you what customers. our has we promise that here Emerald. the data better for attract at of benefits long-term is other proprietary for of the But us. is leads nice that's better is we implications

Allen Klee

was Just give wondering about names last reminder when talked Hotel. just an acquisition and events And I you you quarter, their how their they're of update And that what looks, called, Hotel of having if of on events. your Interactive. a the could they're just

David Doft

Sure.

called have resort series a are authority, is where events buyer days. a that events. for time So a of location Interactive about to budget are hosted events authority, in-market couple of of buying invite executives smaller a small to Hotel from group that We've these They time. talked we

funded products and sponsors we to why host get who them. buyer in with pay it's called services. for their come. hosted And want by them front We because to it's of them That's

for studies. in to we to on about to their paying us and this products come conference, best schedule case attendees, that's meetings with And practices, learn suppliers to build services. to a of short from interest number their have peers a to them exchange so conference hear do then for to And they the of learn

that offer. is And it's the highest-ROI amongst reality products the we

of sponsors part attendees the love is because bringing that buyers in-market Our we're the process we these vetting event. it that recruiting in. through in It's go to

return so very on investment. And their a it's high

scores events. NPS these at We have phenomenal

that bunch Emerald so in CPMG, were we so through for called in of we looking Group. expand it's us Interactive. area, this this was runs acquired Point that XXXX events well And like already Marketing and a footprint a to And our Connected acquired business Hotel gone

XX And Herve They events lot under for throughout brand spread that of name. about as a type the year run B-I-T-A-C growth are really us. a mentioned, has evenly a events, BITAC, which of category design-related strong year, them been hospitality-related the and organic most

Allen Klee

updates Commerce the Any in area?

David Doft

leading Per Commerce underlying continues to the Elastic new progress. our pipeline, strong business subscription into industries. drive continues road area to product strategy, continues to its that's to software at perform The extension well, a map

we've As increases we're the broken the that we growth kitchen we've think that and category into excited about, quarters. before, in bath opportunity very sector for and coming the mentioned

that. So we're very excited about

a on driven Monday. integrated and And week -- by platform. was a side first of with the Because were on Bulletin Commerce activity of Bulletin, Herve into the demo Bulletin, a big brand is actually and tremendous to of continue going speak. The traction New incubator York of is lot I brands a This week the buyers drive which as vendors has other for but is that. section, is of event that the them. around New NOW was the we area of for the to platform and York amount it NOW, And also from kind there original

integrated it is show, But for into the website. event this

approved us. week And been it's Commerce-enabled for and for buyers is site taking the So an transactions place. are exciting

Allen Klee

create question in or also and opportunity you just That's great. would My M&A accelerator how pipeline then do think for yourself the your trade on that about that new the last you side? -- be shows

Herve Sedky

through. X-gate the as we We on Both looking that a strong that with up we use I'm side, process. number And have disciplined as we here. speak we have have are good, process -- a of going it very a accelerator review pipeline. candidates you know,

very XX it's going review. in gates about for accelerator. concepts I different to initial about dozen ideas X, -- yes, that a think, gate I In are different XX in the phases are the think through it's of different that

advanced that in in of they've and to X approvals and steps through going initial means gone together now vetting That And putting the research final the advanced more next more the phases. cases formal are budgets business and X through and there or launch.

in hopefully, hearing And the so term. about short you'll more those, be

As to hope a midsized pipeline, to and And a good, those aggressively announce it's have I would assets. of say M&A, to it we mix continue relates pursue we pipeline. strong a and is we've acquiring to committed strategy, because as M&A portfolio to and an continue part to events. launching that portfolio, as our important We through transactions do of and optimization mentioned. growing diversify they're small the continue to both want we'll David

Allen Klee

on and Okay. a -- quarter, the guidance. I'm That what Great. Congrats initiating like dividend I reiterating seems your hearing.

Herve Sedky

Allen. Thank so much, you

Operator

And questions I time. there call are remarks. for Herve back will over no this further at turn the closing to

Herve Sedky

foreseeable as In you positioned well years, thank for portfolio, optimize Well, you performance throughout growth of go-to-market has believe sustained many much. us organization, very few capabilities, the best upgrading as of you driving business, optimizing this And the practices mix mentioned. the know, continued our over to we've closing, for that I the -- future. the we've of very last the

want Have I for forward day. all to talking on next call. you to thank to look today, and a great you the your participation

Operator

this concludes Ladies and gentlemen, conference today's call.

Thank disconnect. now may You you.

Emerald Holding (EEX) 7 Aug 242024 Q2 Earnings call transcript