Emerald Holding (EEX) 14 Mar 232022 Q4 Earnings call transcript

Good morning, and welcome to the Emerald Holding, Inc. Fourth Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen only mode. A brief question and answer session will follow the formal presentation. [Operator Instructions]

Reform me that that the constitute the Securities let include call meaning begin, Private statements XXXX. certain forward-looking Litigation we remind this everyone will of Before of Act statements within include about and expectations, estimates, beliefs, These plans remarks prospects. future statements Company's results projected statements. the forward for particular, are looking about In XXXX

most or variety risks Such actual materially differ not Company's results XX-K, a such the filed duty uncertainties implied in periodic such other Such subsequent of Form indicated statements. by forth set statements other are are subject update on factors recently Form filings. and reports factors and to statements. forward-looking to from The risks, to that undertake cause and those XX-Q could Company does any

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

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

Officer. like turn Executive Sedky, the Chief to now and I'd call Hervé over Mr. President to

go ahead. please Sir,

of you discuss and morning results. to to good with everyone. today Melissa, you, all fourth great Thank full quarter It's our year and be

post excited what a growth are guidance events our XXXX is the year live satisfied being our with sector We're very on and exceeded key XXXX by vengeance demonstrates with in pleased all performance strategic that anticipate progress strong and our pillars. We're that with we back BXB COVID.

recovery XXXX of we portfolio We hosted engagements customer slate strategic in reflects optimization. portfolio of all towards COVID to a well as as early XX XXX return of almost including as shows performance XXX two events of years XXXX accelerating and to of terms full centricity, doubling years in major our core events initiatives successful trade continue an of in XXXX, year disruptions. our total the after events in live and our progress business stages Our our a

not Importantly, this year potential. is its recovery full believe in we to trend early strong has XXXX. finished pick reached business the We up continuing momentum and

We the supply COVID easing expect revenue the of beyond. chain international and travel, constraints drive attendance reopening growth help the removal will that the XXXX of incremental and of and overhang in

space trends the shows. to to already growth exhibitors this we're as year encouraging highly paying potential of fact, term in long reserve seeing performance are a pre-booking out. points our In and their up This is these to

Year, which our New future events. buyer proposition has exhibitors have supports we strong and supported a acceleration for the further at significant of also Since shows, rebook attendance seen early value rates for

XXXX event for then XXXX XX led have we For recent to rebooking and and to Kitchen Industry for space the increase as event before XX% still X, most XXXX more directly months square February saw had held on-site which attendees the we in a the on edition, Show January example, through next “KBIS” compared foot sell. to pre-pandemic XX last in we & Bath more

and more provide discuss then will David I roadmap outlook, some our While, begin will beyond. details highlights. the Let XXXX me on with for

of the events. in-person Overall, XXXX as exceptional we value view validating

opportunities looking work connections impaired our in permanently anything, we was people and industry learning. If for increasingly remote are in related for workplace, not by person in As shifts expected, an COVID habits.

to have products touch completing venue that and high to feel and get While been routine for large high the volume and and transactions. for sourcing in leads. buyers selling have provide to back business buying sellers Customers quality that to is an continue buying essential in-person meetings they're shows volumes in-person establish eager trade shifted to to online, essential

A this this training our events, Recent new support study XX% source. the Freeman and and source events most discovering XX% conducted trustworthy results them at as year best view found of XXXX information in-person content products of studies view as live trend. while attendees that prioritize the XX%

those square industry positive As and We an of approximately event a great broadly. success COVID this expectations result were of free these XX%. in revenues with trends, in our levels, consider XXXX our approximately a XX% of was and the aggregate line footage

covers surpasses and in industry there demonstrates XXXX post-COVID significant the that as few for is actively recovery and beyond levels. XXXX and pre-COVID industry back The ahead XXXX, a the remains growth

levels to make we to expect be surpassed We them. expected XXXX this additional year pre-COVID with progress year towards the

acquisitions made all that more we've before means XXXX, and a are than If you we we company since is were pandemic. diversified that what the consider the larger

we're spend how and minutes Let me get a all to external growth our few using of strategy internal on there. levers and available

in growth of growth, active to and embedded e-commerce through our recovery launches the ever our greater been Emerald at platform significant than organic driving events In capabilities live SaaS new show we've and expanding stronger offerings make addition acquisitions, to Elastic.

we four of day is launching per show on year new new expected an we BXB Xcelerator acquired XXXX, the MJBizCon, in leading ramps the to brands associated division, with platform. cannabis shows of which May rate of along six trade In with last the content created that its focused run XXXX, industry On up.

and acquired and platform and addition XX,XXX also of Africa the Week, October, both month last technology premier and launched content hosted Johannesburg, event we Week, pre-pandemic highly successful Africa. focused Advertising Advertising a revenues Advertising marketing, Week together New in in and June, In over media South on attendees a exceeding attendance We York industries. bringing global

summer we're the and [‘XX] for results experience NOW winter portfolio sellers momentum month's into we Last with wholesale platform solid for New NOW integrating the a and (ph). broader last Bulletin, also early acquired e-commerce that and buyers July, the show New to enhance at our York show eventually building York

Action expanding our its and And consumer extending we offering in January Lodestone our consumers reach franchise core BXB to our acquired addition to and XXXX, events in Sports Overland focus. Expo

XX% to Our high of we Elastic a revenue revenue e-commerce XXXX in called XXs dollars base base. customer millions business. in specialized customers late with as e-commerce that its generate in growth continues subscription percent providing in We our teens over product, a mid range Elastic dovetails offer wholesale growth show SaaS environments the business a that acquired based with with trade nicely

to platform year XXX%. its rate XXX active XXXX, finished sticky customers XXXX. of with XXX using revenue with to from In proven customer incredibly retention has base the the Elastic and net in be a grew

rate immediate term. percent the to overall, Emerald expected our is XXs For growth in be the in

live new benefit in through to the the our attendance from events, form this pricing of rebound our higher the better flows growth organic benefit offerings. with we and combined in As of

the range growth digits contribute long full in COVID from plan recovery acquisitions mid-to-high revenue combined Our run to single digit rate out overall. the digits coming to growth of in to with is double organic single post mid-to-high deliver growth growth annual

of properties. to is remain and ahead creation on day executing of the engaging By from goal Looking readily on what extract increase experience the customers In supporting events to pillars ultimately portfolio they other deliver centricity, can make and value our we our uniquely focused we our the our customer on customer brands, rest customer needs. intelligently value investing in continuously optimization. to three XXXX, the XXX engagements and centricity,

at and extremely a live has business sales company high that and are delivers ROI. We scale the events leads marketing an

events making on As in building amount experience most environments. and are platforms. there a in progress people a Emerald's executives a party of what's up generate result, the ours depend substantial all made leads Ultimately, e-commerce and in the by small businesses across our live consolidating data face-to-face of large resources is to technology critical environment. We marketing across we really more mediums first garner when content lot effective like a large

to serve on step tagging assets attendees next activity first our of include products productize effort manage customers, interactions These generate is is and to data data generation. also to shows, for ongoing first and party single and continuous related with portal by lead products, various help ID to here an content better and valuable which customers being We're events role Our track led their of a Emerald's transactions. creating our related which across efforts will Emerald and party sign at across stream Emerald. a exhibitors head these -- new to their a transactions to

platform. rate is space and we growth at events our Emerald on can customers already return pricing Overtime, to goal where to revenue over with with matchmaking they investments were this outcome our customer. marketing incentivizes Emerald's them deploy drive improves with and dollars of provide marketing our levels. per higher help stickiness more our seen XXXX, teens the in mid in This to of picture to intelligent pre-pandemic across be able An more our a drive work from the they at should put customers, dollars percent receive ultimately pricing clear

Our second customer we media webinars, of multiple and to the e-commerce means cycle creation, pillar offerings. engagement the provide shows, value engagement conferences, XXX-day to points entry content year trade that throughout our

offer to industry cutting make and edge stay the and shows Our build of on in-person connections, valuable trade conferences meeting changes. the pipeline time sales

generate capabilities, environments. allows media to and industry content XX advertisers constantly and of sectors on new we for we new show customers is events products invaluable add our where innovations different which our trade audiences outside industry leads an round media, platform and a to knowledge, resource. webinars, Through can basis, reach our share in have content the our year Leverage

Our year themselves for platform e-commerce marketplace digital buyers round a also gives selling.

see, round buy flywheel year. greater and offerings sophisticated products. planning create year to at to these a keeping and customers virtual our effect, during allow will are more point and launch a sell interact delivering Together, through engaged complementary value showroom We customers products that our the any

pillar launches includes value portfolio is new of third creation show optimization, and which Our acquisitions.

are a means launch and delivering event growth unit value progressing our led Xcelerator new driving and of creation. is Our by new

food we C-suite targeted over companies DX, attendees. technology towards we executives, new in including or a XXXX, International brands, SIAL launched exhibiting launched XXX is which oriented featuring services and Decentralization four Pizza March, co-located event financial X Web with in Deciphered launched in Expo X,XXX a October. our In platform

In launched year, dedicated the business community shared platform across was two to MJBizCon regulated co-located last reMind, business leveraging with growing a resource fast we remind November, the the industries. audiences psychedelics

summit. Officers content Customers mental May conference Mentera Mentera, this launched host focused looking finally, better scheduled year. optimize solutions. Human are in COO's an exhibition health and virtual Resources inaugural to And we that and here and to is for health solutions mental are platform Chief employee a of

in terms These rapidly allows response by scale to require new leveraging event new commitments investments initially very Emerald. making year Though launches multimillion This competencies. up, commitments. little demand operated potential existing ramping they time our loss capital event to dollar to often without real new of while in the launches from calibrate offer us our core

While not portfolio, not a we're year compared X% of to shows while returns will we permanent capital while contribute growth to expect -- acquisition. our to our launches new do our become X% all per on higher of event revenue organic as typical delivering points fixture a of

to Lastly, to acquisitions strategy. our approach central our portfolio optimization is

two to focused Over the years, integrate to value. platform, core adding Emerald in the so new scalability we and on real stability efficient manner to to do last and intently effective build businesses us an and allowing

percent only a Today, most through we're continue a fragmented acquisitions highly trade represent one the prominent portfolio digit leading with as we a events consolidators live can the In of mid-single growing of of U.S. Emerald market. some industry, shows. of the of

efficiencies build a scale tax of effective a bidders. to million our continue other key $XX been have over our way present over operational generally value of and pipeline providing We acquisitions, structured highlighting of benefits. advantage tax as out with in us Acquisitions

portfolio revenue current of of than show spanning reach. No to and largest the more a single expand is trade continue Our customer percent revenue. and show trade our highly of breadth wide is diverse, in is we our industries digit single X%

market Generally, multiples skilled in arbitrage ours. for industry, there public between in the our like opportunity market assets private is an

us allows truly the things buy to conducive do generate it's so. value so cash we which And create to also to and

that's also beyond signs into it pre-bookings we We've up shown pre-COVID benefiting continue but continue. And ongoing expect to that industry to not shows pre-pandemic has ability well and will size. levels the recovery. fully, the grow of that visibility demonstrated in our scale to from beyond operating many their trend have this the We're post-COVID an will only that its recover

up were our building to are a In we've the that only been acquisitions meantime, company with us bigger going pre-COVID, a strategic make better than capabilities but one. not we

deliver customer per should higher ability revenue events, ROI Our substantial demonstrate continue to and our content to commerce marketing budgets. as for drive we customers' flywheel our

drive a organically and multiple by and to light strong cash growth We supported sheet balance through avenues capital acquisitions. have business flow model both a

we that our Investor not Relations like and and new a highlight against should this responsibility new provides our goals governance. if resource reach page on discuss. details on future I do you websites. Finally, find ESG launched hope recently page our to and sustainability, to commitments social out hesitate The progress latest you'd beneficial and We

turn call let our the CFO. me that, to Dobbs, With David over

Hervé, Thank good morning. and you,

business fourth the Advertising was recovery their Our MJBiz to $XX.X Week, quarter. prior was quarter growth to XX% due delivered acquisitions of the which compared revenue fourth organic quarter. the that million The the million events our $XX.X increase and ongoing underlying in year in and primarily largest of staged

other events staged XXXX well million been organic noted, $XXX.X the as is in as the to the in business. in live in from Note. year million line. events revenue of The insurance revenue that this $XXX.X XXXX. due excludes proceeds figure that to had XXXX benefited compared ongoing XXXX, to on For that due recovery full the growth, income increase primarily just COVID, recognized which XXXX as revenue was canceled as the

EBITDA higher was $XX in offset to million revenue million prior and received in year by partially prior acquisitions quarter. to period, proceeds the from year adjusted compared insurance as was The organic decrease the quarter growth. Fourth $XX due

million quarter EBITDA the Excluding been year-over-year. million, in insurance a in resulting XXXX proceeds, would $X.X have negative adjusted fourth of $XX improvement

for million year primarily full XXXX, $XXX.X adjusted in prior XXXX the events to year XXXX due million $XX.X canceled including proceeds versus were due that to COVID the Full staged in was insurance EBITDA, year.

Excluding year to adjusted a for million the XXXX been negative million compared in insurance million EBITDA proceeds, full would XXXX, have improvement. $XX.X $XX $XX.X

Free free taxes, million compared proceeds and and to net of cash numerous year as settlement contractual paid XXXX to contingent in flow of ups the below related This deposit to flow million XXXX our original flow our insurance $XX.X of was timing related due excess sign million unusual was working capital items guidance and litigation cash items. included event to items XXXX due to of cash after shifts year consideration the Free cash for for estimate the acquisitions. $XX $XX.X million $XX fiscal in insurance other excluding full other dates.

means. bit a on context this more Let what me all offer

timing business, the have of a solid a line As typically into we payments. sight of customer

down have event paid is advanced which a as booth advance, to make moving before their This full exhibitors attribute. required to Our attractive and one reserve in a year into much working payments space. are capital designated in highly happens as

as the high such COVID-XX Emerald's second half situation. with events in while struggled to timing pandemic dates chain due disruptions. begun shifts XXXX, in the for the precision contractual in and monies supply a the particularly given normalize issues large and have for a timing of our related the all event recovery portion deposit of be the historical on timing marketing However, the lack customers sales momentum travel customer of still clear, pandemic to prior at issues are cash moving Year. precedent our flows gained New a the difficult of the led and calendars, it of significantly in have to as To impacted exact year as level like sign-ups well of lingering making to us This due

free flow sales we working cycles and changes Overtime, affecting more predictable expect cash capital payment fluctuations normalize. and as become to

which this million benefit this as negative cash given capital before expect least will we the means cash do working source believe a the free We capital to of additive in working at achieve of improvements, cash is business flow revenue tradeshow year of enjoys grows. to flow $XX be which XXXX

side. expense the to Turning

We this continue manage structure our to effectively in environment. cost inflationary

Our own largest on-site content Also, minimal or ink exposure for some is contractors exposure FTEs have events. our labor paper to our via assets. costs either and we through at costs our

The we price pass corporate improving efforts protect increases inflation our to limit margin. At increases, allow level, significant In along to ability and purchasing going meaningful general, to XXXX the us cost to us did annual savings has maintain led in expect linked centralize combined structure. with made we've work forward. which we our our should in strides to the helps procurement

We've our including of an and number opened hub a rationalized the a sales and to including We've real quarter fourth ramp estate data six functions Manila workforce. exiting support more in offshore also telemarketing, remote management. towards footprint, in properties office shifting

shift of expect cost ability enhance estimated savings we addition Emerald's this per further year, to nationwide. In top to million attract talent to $X

Our impact abandonment fourth lease quarter the one-time approximately reflect cost million. of of a $X results

of sheet. cash September XXXX. as We XX, $XXX.X balance of versus XXXX had XX, the as $XXX.X million of to Turning December

total including Our revolver undrawn $XXX.X million liquidity, is $XXX our million.

we extension $XXX completed remaining credit in During the the January. million the completed of of million with quarter, $XX facility our

the term now as repaid of leverage our reduce outstanding is also $XXX and We gross balance December million serves our of interest expense. of loan which XX, $XXX.X to and million

opportunistically of cash our support acquisitions, own in and our generation flow between our reduction. grow allocation ability plan buybacks debt invest capital to and We sheet balance to strength and continue business. investments opportunistic the business, to in balance share The

December Directors to X.X the of the XXXX. in at XXXX Last we of of since On of share through million approved of repurchase year our shares price program buybacks, stock $X.XX million quarter, an for total to the XX, bringing buyback repurchase and XXXX. start repurchased expansion X.X common average allow million full our an our $XX Board shares extension of

draw the to trailing not ratio of X.XX as our a do as on our in leverage credit in defined times agreement. months EBITDA net reflecting Our near-term. yearend of consolidated debt million We expect net revolver was XX $XXX.X

review a as the at those as preference easily can of well of outstanding. business. XX.X common are convertible of shares to of we convertible end, who compounds $X.XX preferred have stock annual accreting that XX.X per December quarterly. I'd stock had shares to so briefly At more time, The structure shares our value as this of quarter an share new like our outstanding, At story X% million million while XXXX, which preferred liquidation XX, rate capital

equates of divide XX, preference into multiplied When to shares share, of shares number preferred When an as of price as being million basis. total the on by that stock the X.XX each initial converted common of it preferred of it XXX.X share $X.XX to by of stock stock. convertible outstanding convertible of you approximately equates shares convertible common conversion stock December liquidation per

Add already shares to million of that, total of XXX.X the basis stock common XX.X million December shares as of a on outstanding converted and XX, XXXX. outstanding has as an Emerald common

As million. of closing to $XXX cap this our common on of price converts approximately yesterday's stock, market a

$XX an have We balance debt deferred value made asset of worth in our consideration net million past over sheet acquisitions value given well $XX.X estimated as tax of acquisitions. treatment of as discounted million million the for $XXX This enterprise on an to three to a our of lead the outstanding. certain contingent years based on present tax our

the right of stock exceeds consecutive we XX the if $X.XX trading preferred price force stock XXth days. year, As reminder, to convertible of have common a conversion this our June starting for

Turning now to guidance.

EBITDA EBITDA $XXX increase The $XXX generate growth to XX% million adjusted an proceeds. in in million. expect of adjusted over excluding and reflects excess revenue We XXXX XXXX adjusted insurance EBITDA of in excess in approximately

on margin of as have XX% approximately prior believe we to COVID. we margins work continue way adjusted we this we an EBITDA runway and our to back implies improving to number guidance saw plus XX% Our substantial

accounting adjusted the time, to This $XX capital flow our incremental one ratio of free in working debt to for bring expect closer cash EBITDA of inflows. over benefits would assuming We no M&A. before million XXXX net

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

Instructions]. [Operator . you. Thank

Our with question. from your the line Please first of question Rosenblatt Crockett Barton Securities. comes with proceed

great. taking the for Thanks question. Okay, Thanks for the presentation.

retain we was kind of more what this articulated of need wondering that belief the come. to those that you former develop still do margin what to kind kind of levels? expectation year had there is could pre-pandemic? You for the are just margins I your margin and And below to delta? you Why the be

is This Barton. Thanks, David.

are had maintain that margins benefit not because even there think full I to underlying long-term. of we in made business continue to in revenue important our are three the versus the was to though the SG&A our One, the around the choice is we at business invest items the and keep insurance proceeds, mind in capacity. near-term

through maintained that the we've now on the means that the SG&A post is entire that pandemic to So, these impact right flows initially build events future. smaller the for our EBITDA difference because

that's is versus also create those scale launching losing investing new years money second while value The for build that's And of a initiative And Emerald events. initial a we pre-pandemic. endeavor that and item in the new in events. we're couple and

get three, to money year four to losing We begin margin event do be from new making money that expect as accretive initiative will launch and year of we to pivot forward. it the then going

actually the The that is we've third, made. in acquisitions

ready One me, of more businesses to at loss. at and meaningfully get software the or running effective order a we're two more businesses, of bought term, margin businesses a currently longer to excuse scale that that in the we our

And been the plan so that's business. at the

you higher is And so business overall. a margin points few exclude we're than what already if the underlying reporting that

and on can remarks, account to you to we're have we scale clearly normalcy we then levels. as high And you into tell that if visibility prior should back our those seeing prepared returning as margin take from

just time to follow-up of those and take get some You've what How some more about maybe think back timing margin course levels? get pre-pandemic long to kind the to back will Okay. how take there's that to of those investments you given? their do of investments coming. run would would that, sense And kind on margins it then to a be to got

joining. in years. about Hi, levels us these would to for expect thanks Barton, Hervé. to this three return I is margin

of and part that right. And been I that's you've if an could flagged kind give internationally can, to I that come kind about things question of then as degree back? exhibition of the something to if was is what know recovered has and you disrupted, important and some that what All know Okay. wondering lost return. to more have what yet I another color going international kind of was business you I

Thanks, This again. David, Barton. is

pre-pandemic was in for XX% our of revenue States. the events about of terms to United and it's attendees events, it's international our But and in frankly others, close So, more some coming to exhibitors our here of for zero.

the that so on that on weren't coming players others they're is XX% impact But back was And attending, if real as that and to impact beginning trickle-down that we'll key a not about event, effect not had just it's because exhibitors and some talk there the well. in a not second. coming domestic to the attending international

chain And months come international work travel China it attendees so, up and recent pick we begins are and not as to again back up, supply the see as only definitely out, to as in opens restrictions beginning themselves recent to international the of weeks that particularly coming were only ‘XX. begun of there that U.S. up, into because We States its still the has it since pandemic. the pick forget really borders the summer was United opened on in issues

That -- towards expect then prior zippers prior as to the we of return the and attendees domestic and effect with levels work both back alternative to international we scale. returning them exhibitors

the the I was Emerald thing sales some had other that not would company. only have add events some while case across is, The international at resources,

to of outside processes U.S. and that have so sure States to recently now have and the we international we dedicated the U.S., customers to are the facilitate making come their in we created prospecting United actively sales resources And participation the in group that XXXX,

So, of part that we will a forward. that believe be going our revenue bigger

of of knock-on the were to of benefits of kind that, kind to how and attendance international year? people. of said that on it the and follow-up was course did What just pre-pandemic And was during Okay. impact XX% you the terms the in year kind ramp it last attracting

first eight a So, In it in Chinese the until weeks bit, saw little China. we mean exhibitors. we're an half, it ramp began overall. from just half single I still to year, ago, digit the almost percent in six, trickle was up now nobody but we're low see last anecdote, second to beginning And just in as of of now And the of a zero. really

for have that. some are and There international meaningful. excited we're XX% have I zero. that our about Again, events said, of others So, it's that as events, more

for those to we'll international, bounce expect XXXX that we more So that are more XXXX exposed meaningfully have then meaningful backs. and

one question, could taking if you've final this appreciate, talk year then you're little start And you I the of event. Prosper about wondering and I questions. meaningful seeing terms if can these events got you're of was I in the like just some a bit in Okay. what

year? your at are of seeing of you what at macroeconomic so, at that start you type And headwinds suggest the this there's this of any And are anything seeing would point? all business

Sure.

we're nicely the year-on-year. than And could on in pleased is which continues on So It that. established economy, tailwinds. short-term event, some And offsetting any event know grow volatility like Prosper general post-pandemic now. and of we're overall those the an sellers see for is the seeing more question right going But with that to actually your economy. as we are Walmart you marketplace Amazon and so forth,

optimistic remain to we major see is and impact perspective our to forecast our economic we our business or in. outlined any So, don't as

cycles have to its just business? a But your of ask cycles that. recession little more bit Okay. in on through trend this impacts you on experience? How does impact What your in industry seen recession terms

to year you look for in. exhibitors cycle. up data, discussed advance to if So, late we've because that the into be many they're pre-book already so historical a locked And that tends in at as is the reason industry our the

if highest other return on marketing amongst The the investment reason is that budget. not highest, trade proven have the for to be shows their

the But living tailwind. in zero. more it. been that shallower delivers. impact that coming I recession on And warrants our on trade business Hervé's because in spend historically reality to it a than think of The continuing And post-pandemic it's so, already been much also we've that about shown from the We're value a to the point, show echo is business. that has back

and pipelines shut from businesses their very we is their And we a in efficient can build so, less to the find at tailwind so of more the and when had that world the ways powerful time economy. was what tailwinds that tell they looking do where is have sales volatility to any build offsetting to businesses than down,

that's guys it. much. helpful. you Okay. very, very very appreciate Well, I Thank

you. Thank

Thanks, your Barton, questions. for

you. Thank

question Please line Maxim Group. proceed from question. comes Derek next with Our with Greenberg of the your

to the it a might of starting rate this the wanted I just quarters. view than kind to off some going forward? I be this how past lot in has saw quarter guys. Hey, on with you of financials was been lower wondering run I that what from the touch attributable SG&A. than and this historically was

Derek. Thanks,

the So items are contingent the the size a adjusted back brought and pretty of EBITDA. in to decent could most add a the and and the SG&A quarter in quarter this that release was The that it, the tend in press other number meaningful has to of an was Those we number you bunch the see items in down paid, adjustment that estimated consideration notes. unusual year. which

in there underperformed some that acquisitions target. earn instances versus their ultimately, were And out

be estimated to earn have the where quarter, estimate future. have down It's estimate. the paid to bring that's out we that what will be we going so to And every a in mark-to-market

actually made. the extremely that's driver so will we've the with quarter. acquisitions on add I we're overall, that this And that key pleased

prices pandemic One align recoveries on we're to of early us active outcomes we're Emerald. being ensure on of post the pandemic period and the with return driving M&A going to the, to and of I forward capital purchase proper and think period trajectory able our during benefit

it And great benefits is so of the flexibility the this structure and of example how a us.

Okay, got it.

software entire just next terms just if segments and levels in growth have obviously was in $XXX business, content different that your how that higher view year I growth business, to just of compared on legacy events you in you're growth and wondering significant how guidance guys software the for events versus for revenue this looks the you profile? to Moving say your million seeing versus and of

we've expect we the are XXs rate that consistent continue business growth just that ago. out work actually years that Sure. Overall, seen will across surely business the a mid high growth software groups. it of this It we've since rates couple to that way business is in growth kind of fairly acquired year. and The higher happened the

of otherwise back that The content stable little bit business the the more content the more was the during little well events. have pandemic because the similar a events growth just events and as fairly versus profiles business a and bounce of obviously

the So, but a on generally weighted little far a less content, more and little apart. not events they're too on

down million towards that you stated leverage quarter. entire $XXX target to if then you situation? how got ratio on hand any wondering the I continuing maybe more cash maybe And this paid use down how just and there's debt just was you that just Okay, you that view a worth color like future in pay to you're looking it. as plan on some

Sure.

keep in potential mentioned the go One, where as sense see uses have ahead that. script, investment. So, high we'll and doing I four internal it we capital, we makes is continued returns And of and cash. where on

believe incremental we incremental margin value market multiples businesses with of market for buy drive to to benefits EBITDA public growth continue can the pretty and those business come of single we down and and arbitrage. digit surely and and acquisitions a the platform in incremental private part mid-to-high is multiples synergies, quickly as our second The

look to that, opportunity ultimately world. give. gross And It's we honest leverage You then the that's answer plan only values as recent see of or most out on post And and (ph) will depend what informal share continue private the to to there. bid those partners the asset equity buybacks. the return balance levels. to the to space look really Hyve announced at by opportunistically transactions the in we look the need pandemic do in sales Outside space buying of the the [tar] are our at at for to

There's no going might look right set look the numbers the buyback or there on those to to gross -- more do ultimately if to reduce drive we leverage on the might we forward. then value and aren't acquisitions

three we from debt now, run times less and settlement We're the As normalcy, to EBITDA. the plan get net less and do we've benefit than inflow the to back at of had insurance the we've because than cash that to we had. business

that right going the does value to flexibility to business the a increase lot so decisions give forward. of shareholder And make for us

you. Thank great. Okay,

launches if that's addition Xcelerator was that organic contribute resources division? was wondering allocate kind to could And one just if that in do you or the I event? event on I to up the Emerald curious new you that's Moving of stated just points entire division, then growth. percentage of like how to slate that, two plan per to to to just

to entire do. is the that's expect So, we that slate what

ones. I scale and we new million year simply those businesses as increases, $X million we're revenue new incremental grow for our if to of and $X think -- revenue $XXX themselves year, launch as as of increasing guiding we million as and a this underlying have And launches business and so,

the As Barton helps drive scale That that in question XXXX. going an was is reduces mid single around investment from And in a million dollar those we short-term. investment we margin discussed incremental digit forward. as made that the in and business investment us businesses, margins,

Okay, great. you. Thank

you. Thank

our Sedky and Ladies floor question back concludes for gentlemen, comments. to and final turn you. any Mr. Thank I'll that answer the session.

Excellent. pleased a want call. great very on you Well, we're all and foundation I provides your to our to day. continued solid for look very speaking you today the performance participation to and next that Have with And time a thank growth. forward for XXXX

Thank you. concludes This today's conference.

your disconnect may You for Thank you now participation. your lines.