Emerald Holding (EEX) 7 May 242024 Q1 Earnings call transcript

Good morning and welcome to the Emerald Holding Incorporated First 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. This includes remarks about future expectations, beliefs, estimates, plans, and prospects.In particular, the company's statements about projected results for 2024 are forward-looking statements. Such statements are subject to a variety of risks, uncertainties, and other factors that could cause actual results to differ materially from those indicated or implied by such statements. Such risks and other factors are forth in the company's most recent filed periodic reports on form 10-K and form 10-Q and subsequent filings.The company does not undertake any duty to update such forward looking statements.

management useful non-GAAP performance. in call, believes which this be can evaluating during will measures discuss it Additionally, the company's presentation substitute information isolation additional accordance of be The in considered with should U.S. or results for not a prepared in as this GAAP. found these this be Investors conference of recorded a the reconciliation is measure of most this GAAP release.As company's website the p.m. replay be of the measures being section non-GAAP The company's available call the earnings to comparable XX:XX can in reminder, on will a and through Time turn May to Eastern on call XX.I'd now to Mr. the like over Sedky, Executive Herve Officer. Chief & President Sir, please go ahead.

the products for marketing categories, attendee and our our KBIS, and visibility square forward and we detail strongest in a I'll XXXX, Well, our unwavering financials.XXXX value customer suppliers.Our bath our gathering thousands has into and trends our American Pizza pricing our strategy, good and give we of in also shows provide all Amazon quarter their our engagements. start of kitchen morning equipment This customers into the with fueled of is marketplace of thank alone, CFO, not some sellers, hosted and Prosper, our including exceptional with us the a be performance and provided by has an on footage, successful to with driven overview focus pizzerias show, to ] only serving of our to [ to more early off first ROI commitment and you, everyone. ingredients you largest start, counts, year-round revenue and It's wholesale quarter. and rebookings discuss then the then as and trajectory. provide International of budgets. Expo, review In will but are centricity all attendance their Doft, with Ivo excellent usual of David other and great today to strong then record first exhibitor positive our

trade shows part marketing many value-added our by an been believe trade the that highlight the make or tools our ROI For their big we a and cost. has ongoing a will to experience.The year, proposition efforts are developing this selling of view #X value of businesses, event as rather metrics deliver result transparent show even an than and that customers better our shows more investment and is

engagement continue the and means of but selling to the XXXX. is we've goal prebookings, to return, loyalty our only exhibitor shows, driving and are we also Our a for in shareholders, growing not to event trade value year.At between implemented space into which editions on-site customers a our desire all over of already maximize course

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

signs project run end exhibitor softness, year in saw increases industry's see revenue Looking of content budgets last counts and ahead, markets we continued in we where stabilization. we're beginning rate.In our our advertising pressure certain economy-related business, experiencing to under above historical

are categories growth exhibitors another Over revenue guidance preferred milestone portfolio shares of in creation into our stock. combined plan many value conversion that over our focused future business, e-commerce event the the industry equity commerce a a reorganization delivering launches for percentage expect value our events. Importantly, growth the annual now as first our our few dollars add-on joining was advertising clearer webinars, has to with is launching and months on XXX,XXX of time, hundreds plan York our Since of our X greater and leverage to subscribers.In growth.Lastly, bookings optimization, $XX receive and step acquisitions we points our a next Business dividend incentivizes put to Emerald, conferences, in the improving completed continue be the a and to some to all her with category. ago, line signed to run names revenue goals, industries digits pleased we're the of revenue Sarah product our she experiences profitability value services, off.As working higher across in contribute to in strong and career business high new return-on-investment and expectations. also action simplifies bath per our to to with the an events events. achieve our Executive we more efforts closely kitchen we significant its origins it marked single from conclude, that in with customers, per to into the to and when across Small Through the X the powering these we're in.To indoor to new of addition both large Exchange evidence should more settles Emerald e-commerce have wholesale the remains XXXX burgeoning week they we launches, This creation overall through team is marketing the in-person Elastic strong, Now annual we've of picture all and content the with our and flow Bulletin content, we'll actionable time stickiness tracking we ultimately percentage The start recurring and forward the and preferred to growth growth and outstanding service to forward our KBIS value small Counsel, the generation.As holders profitable with a multiple scaled Business can from the personnel conversion convertible Bulletin an outdoor example, with the Counsel year, acquisitions outstanding to and common impressive both engagement, our we're help portfolio February Altschul, businesses, on our targeted in our with and trade on and customers pleased contribute forward, with we're in deploy connections, spanning look greatly growth experience and rates to on expect revenue underpin with new around in transactions. customer and a performance investments our benefit move significant our digits benefit free addressable our with X investments who's apparel of generator capital paying focus all audience sports welcome we overall.May mid cycle Emerald's and led points value-added Suite, From stable our single compounder high the Small in in. a of Exchange, Elastic to all the software as traction product goals for XXX-day announced and Emerald longer-term to through customer of equipment, that a event the from launched we XXX deliver customer efforts customer.In this mid design seeing we delighted drive travel our Elastic digit market.We customers and positioning the categories Meanwhile, and This delivering content, improves across X portfolio show. holders of characteristics entry growth an commerce such businesses platform the show drive New on cash pipeline centricity, accruing irreplaceable of the as as engagement, them new offering of building insights, expanded rate executing million reliable, than the built engagement that have following at work form its General that and marketing way centricity, shows, point year Sarah doubling recently we is eliminates customer only providing our indicates, platform by cycles. the and structure double forward and be in of Online leveraging consistent, to Emerald's pillars year.Overall, in reaching only buyers time, are cash our platform. were for sectors. General side, total as with platforms.And media we Over sales trade of the engage on-site gaining to flow with organic we're portfolio earnings and is after dollars to data steadfast commerce throughout supplement our in optimization.In a attractive show trade

with David. our trajectory this and turn industry We we in let that, confident are of enhancing meaningful sustain year-after-year.And excess while our that call the can very over to deliver growth me profitability

good Herve, and Thank morning. you,

acquisitions, margin a of XXXX, was no during Turning insurance quarter $X.X to had This XX% X% the XXXX, the an organic $XX.X segment, leading acquisitions.Organic of quarter and impact in a a to recognized cancellation of revenue quarter. quarter first material for was proceeds the our free tied equated to flow prior are compared discontinued growth excluding event the ] to $XXX.X $XXX.X or [ $XX.X million scheduling quarter grew quarter. versus claim period.In event $X quarter proceeds service other revenue the loss year takes The $XX.X same quarter, connection excluding the was XX% adjustments, it's year compared of of prior $X.X to is into an total $XXX.X million our million insurance in year. was revenue our year, XXXX insurance compared increase reflecting million income cash year for primarily prior virtual approximately other of seasonally the Emerald. for claims the million for EBITDA events, adjusted million of for account million largest small for There a which outstanding.First results the quarter recovery to the insurance provider million quarter.First first which first increase to last adjusted driven the disruption EBITDA by of contribution with from technology an we million where

shows ultimately when and in be helpful as price purchase our $XX.X instead the First as edition of recent seasonality, acquisition closed industry retailer million outdoor of of in quarter. acquisition some changes other of review be our restructuring to given align November, cycle. past buying some briefly severance We Outdoor paid.We to to January, of increase $XX.X thought expense which winter show a we the will the and past prior Retailer in recorded Hotel teams, million expenses. charges.Turning costs, calendar the at million calendar. quarter event held acquisition on some costs recent these shows to years, remains timing impact was number it for The integration an of certain contingent the to leadership consolidated nonrecurring free expense, outdoor estimated SG&A it delayer and consideration large in unchanged versus to though payments our retailer quarter year our a changes related senior year, due activity. the the is On QX.Note, flows that would is This a believe to year-over-year ] through acquisitions, the June first better largely in basis, with $X.X P&L shifts and of related January which acquisition well smaller winter in Interactive, moved even integration in cash flow by [ increase the impacted show

the together, be in calendar schedule $X serves, industries show X given in by some organic for can by our always growth rates. variability changes these assumes Along in and top-line the releases.Our QX of our can number these XXXX found Emerald seen be and million earnings full impacted guidance million on website. our QX in XXXX XXXX Taken quarter-to-quarter $X.X lines,

XXXX, XX, cash funding underpin consistent QX in revenue acquisition. strong are as December the convertible XXXX. on specific balance we of mix versus growth, today.Turning that March organic guidance, of preferred and had expected based period, other stock dividend that double-digit on as not reaffirmed annual our assumptions our After XX, contributed Interactive with $X.X While sheet, to of million business all the we to million $XXX.X the the which the level each million $XXX.X Hotel reach quarters in

opportunistically believe including is strength facility.We generation invest credit optimize share liquidity million, total full to flow our our the Our per stock. on value $XXX and and support sheet grow million well of cash as business, our availability our ability as our balance in $XXX.X

At managing quarter first on business, buyback our subsequent to back acquisitions, our the we after outstanding approximately quarter.As Herve of balance expect mentioned, quarter shares allocation preferred million shares and We XXX,XXX remaining capital. all to returns own continue end, in of of we between the completed debt $XX buying investments authorization, our existing capital conversion leverage, in had end. to

conversion, yesterday's close.We additional count issuing $XXX.X in approximately share million the quarter Following to of avoiding paid billion final an dividend total X.X million, a cash, outstanding first shares. thereby as cap of preferred of market is common our equating the $X.X the

as leverage our XX-month improved newly free capital our have you believe shareholders revenue from guidance of range guidance, leading EBITDA XX, our of a of million net definition approximately back are million our EBITDA. credit of leverage based our the and call. your noted our now $XXX we initiatives we investments implies scale defined reaffirming as we have EBITDA, we of that, to to XX% I guidance to $XXX will that to benefit and questions. an We saw to Thank our $XXX expect of made, we continues in in last on agreement ratio business as on margin the to for the time.And very to with We for of includes XXX consolidated adjusted cash XXXX simplified growth flow.As $XXX.X point had we time structure number million.Turning we COVID. and much $XXX.X runway million trailing in a from and our margins of net investment this This improve line March adjusted continued the debt the credit drag the to basis work full-year million, we'll for million our prior $XXX in X.XXx over open agreement way

first Your of line instructions] the Rosenblatt. question [Operator comes of from Barton Crockett

rate curious of in guys for more If a this on could the expectations little flagged some if I growth there's variability any you elaborate you bit the that year. color was Interactive here particularly organic on note January. underneath do little acquisition a and that, of top bit stronger, looks this Hotel weaker, got I you've particularly of a that.And then, that in quarter of

And so the acquisition your a aspirations. compare that long-term materiality color the the that. how if you kind was for give also, bit expect of maybe wondering little do of contributions this more importance around could and of to us those And year I and you of around kind

bit quarter. talked Barton. Sure. sectors volatility, the growth Thank the -- I of several over quarters of the about, we last The the events you, organic quarter-to-quarter a is one relates we've things to particular have think a entirely in which in

stages happen quarter, quarter quarter we purely particular mix. organic So once would that event with we if what in, based first One dynamics events, the quarter, but our so business to different of the in fourth a an quarter and with visibility than you about before a and impact on they acceleration recall, the and the based have is nothing of growth lower while typically, results they're the year in was that serve, do ahead it's the business but execute businesses gave are was all industry thing different the our or and quarter, after. on that the they twice greatly it

year a rates. in events. have so with the the Interactive those about XX is based more growth what's series times quarters business smaller a Hotel year.From quarters fourth the of we growth, hosted but and acquisition way still the expecting buyer quarter, strongest standpoint, expect and in organic growth middle an of of mix muted playing staging the And first the different on the at the that, X organic then the see out And year the bit we're is

are that with in buyers hosted attendees, buyer for aware, sponsors the particular market ROI selling a with really executives sponsors model looking not a industry attractive meetings they're is by with of model of at high and days as the who as a couple their nature, those buying for. in products couple together are networking, niche one-on-one but a bring a well smaller, budgets our and we the for venue hundred For where education

the see for the that similar of effective so and And over and the assume we've high out spread this that a in score here year. course for they're QX at rate run other the can tangible alike.And NPS much So over this pretty pretty you closed the sponsors of the year for rest no very ROI attendees There's spread really sponsors course on Interactive. you that Hotel model out direct, evenly is of year. acquisitions point and

time tell there revenue quarters. other acquisition in will impacts from so And would be future what

of front, like there can opportunities our the And we this on more that X a that year. We are close M&A is pursuing. of X, smaller on course over the number X, are the hope ambitious we're opportunities

have commentary to And your the follow-up your to guidance, relative acquisition do in just acquisition on revenues you guidance?

guidance -- we the deal the have in announced it in The and guidance. gave closed acquisitions already -- and future Interactive January had guidance the because of the guidance sorry, We deal and numbers. don't March has Hotel have we don't always implied future early was our acquisitions don't in have had in we

were bit little referring kind I could to you I you're footage question, us referring talking others. and underlie there's on detail point. metrics, about ask And you I growth the to any could numbers were in seeing give can if were was give you if those some then around of a us And that of in what you wondering metrics, what -- just square another Herve, of key you think if

I'll David. So this this. is take

in to a years year-to-date, far, drives a -- -- and top of pandemic So of we exposures, little the last year. see initiatives we rates kind from commentary to for pandemic.NSF's based NSF to benefit the over of we've over drive from put still particular place Emerald better sales front. well price longer over And of part the the certain there, of think hope business growth would term.I'll the to meaningful to couple more mid-single-digit on we the opportunity from seeing the to what expect the out historical our improvements out in mix We're tailwind up get That we're team, shout a able pricing a as is expect in growth sectors, improvement continuing we there's as to strong than coming we pricing under couple operated bit on to The the the more momentum we as so but were least that's sophisticated incremental that's here and on better organic on exhibitors years U.S. rolled the begun at there to some year. see international mid-single-digit industry last and and of course our which implying particular than has of of prior improvements our event-to-event, that is in a recovery percent. algorithm than of in up pricing continue driving events few what a give the variability pricing growth for a international

I on you visa visa in sense some are in and backlog the And has final wondering terms question. one what's ask at the there. prospects had the that could to impact update forward happening point us you then problematic. just the situation it if if But you've the of that on know makes going timing what interest guys one, has offer industry And this was this I'll that I could and I for also in. Herve something been just It's you. if And

about, part as Exhibitions is participate association, the us very it's some in of I the continue Democrats and that And industry bills industry, not still really which on good already and visa that to as lobbying Conference and Sure, pre-pandemic an both need really that visa modernize The ECA, there secured -- an a processing that we're and for excited is issue restore of on are for Alliance, are from have are others there's in which that funding, Congress Republicans. and effort. to just processing to we visa sitting to number something getting operations for. support government we happen some We push levels. focused Emerald, an some Chair,

will think and Hill more we're end of of from there's bit so needed.And I It's point, But of the continue on industry was, benefit And it's tailwind is actually Congress to the And an up where be industry Exhibitions good Day a it events. mind as all coming very all and David's week, but I international last can little direction. to can right some think think participation lot of I benefit making of our of it's the we a increasing lobbying spent moving colleagues something, in progress, month time Capitol for to push. I top in Emerald. our certainly industry

of LLC. question comes Group next of Maxim line from Your Klee the Allen

talk you them improve little you're did and a from of performance what Can to from 'XX? kind about launches you're looking Accelerator, the thinking potential last about you how in upon new year them

Sure.

a of that we So highlighted. we have launches number

And so in that that dedicated which a successful events. will adjacent very, Sabrosa, continue XXXX. let a to and food that's Commercial highlight the a in Casino event our to was Latin market another food Latin that beverage successful to XXXX. launch was one grow was September is we launch an of It and that couple. market, was integrator was very expect CEDIA successful me

successful Another launch infrastructure. leveraging CEDIA the

scaling customer base, cost attracting base, existing launch its successfully businesses customer. but existing little customer in -- event. case, Another versus the platform. was existing the XXXX.And of we're educating in the so in excited across different professional infrastructure, we multiple space with we're name and really different it's sense, is about ] to is a we that a It's as own we're customer it able channel integration other expecting this call the the content. WebX that it leveraging a in good and innovation. we'll that all In [ and of one DX. growth residential terms -- way Decentralization alongside still an has events, where And about One around it interested some some well to RICE that same like, are unique and launch Deciphered it one makes good where see audiences that but in that growth events others a also have And conference, its

particular so launches like us that's us those with the us And growth in opening launches X to X opportunities.And really over really Emerald for my instances, I they seeing benefit time highlighting, we're that some we are provide we're believe points give mentioned this organic exciting to because in what good remarks, growth opportunities, of growth which will overall.

For business, bottomed that. sounded on you you more out? you into you a kind think go the a like, maybe but sounded that content why of -- positive bit just little last detail little year, that's that more struggled Could of it

Yes, I'll it David. to over I'll start and turn

We are X more positive about our content primary business for really reasons.

the show -- investments The for business. that We business we basically, attached have foremost trade a was some that first is content reason Emerald business. to made and in that was

generating the type business that capability, we business plus business. and time can to we and is business advertising and where leadership from show perspective, which with it. a that that separated made content the lead that in separate it of in business. have did the into shift we so pure reliant be over an year last investments on over trade some that a go a that is and really less separated business, So create more leadership hired intend infrastructure of the expertise What course business we We was completely inside of

gave So and been across Emerald really we databases has create feel -- have the this all successful. this the of to that that example product brand of terms one in I one and brand, creating one we leveraging

we the some we've successes focus it, early give signs of to has we part it, some gives tech of and see up. forward the So we of who have sectors the on is ] that product hit, the launched gate out particularly we and leadership to feel harder good [ that that us us some that year, -- confidence.The we've last the that some starting had that were put visibility success do start are second put on open

confident we in feel David with forward more business And to well. that over business. turn visibility it I'll in the so But as content some

et and -- the cetera, business, it build to being just media one shared the vertical the think can the modernize technology it's media went platform, operations, And more own leverageable that change events the that forward understanding we of improve so practices, I to that, seen out And on sell Yes, And of on also to businesses but more -- can a different business the consolidated comes their and and really has industry massive editorial, opportunity.And being where the years an cetera. not editorial, their run not meaningfully a we've successfully from of years XX just meaningful that XX on separation with each to own ago, run approach bookings from whole. the strategy. effort us will which in allowed the the analytics leverage best how drive as editorial calendar reorg incremental turn. should modern et business, ago, And we're a platform, excited be about. with can sales a business better XX that as sell leadership that's well drive a large vertical, across and opportunity individual that that expect

had And QX decline our year year-over-year, the so up. are a bookings for still while

growth some of of confident the we're takes bettering lead course so the team should get efforts to on of always start time to this we once sales real this year it rest that based little then the contributor meaningfully that a momentum year. to But the a that and does, over be it its will once to see on And footing front the has, performance up. the

your heard you which sort that verticals added verticals, how about could that of you about contributing?And when could and go after. then when Could means? more all you're you the going double gaining trade some Now other commerce, powering of under you've a new I say little into then And think were a they also things, audience York the talk expanded about and X can was New that what little just second, and users shows. and traction explaining start Bulletin, talked some detail for you

to. happy Sure,

very on forth. So little and of -- we're in spent roots apparel have focused, the bit traditionally has outside we by focused addressable call Elastic so been on its we very on expanding outdoor market the how last and space were and the been time Elastic a

to the we so very moved asset kitchen that call last have very and that KBIS and particular bath the last brands industry on event. the on that moved And announced this inside. we've with signed We've and earnings large in at space focusing some that we large really and

So the kitchen itself us, product. addressable bath of the been that in industry has more strategy. actually And that in our industry for of double market to particular and or the allows addressable double us than always just that itself allows market

leverage to this and serve. Our product, strategy is excellent we large go been customers from very integrated which has industry highly that to a industry for product

across smaller Bulletin is businesses, wider product really much track And much Bulletin there.In customers. Bulletin, of as scale, a for products integrated product. different range terms is is [ not of a an a ] we're on to so type for Bulletin easier scale much, much product.

customers our of plus businesses. XX% know, you small As are

so faster we scale customers. smaller can that And needed to our easier something and

that the home point And we entry in started Bulletin's Now, York with was New given space. so

my remarks, opening quite as has has, been mentioned that I so successful. in And

now, is do so I mentioned, over to are do to as categories what exactly is we've then done as we across Elastic then other with to time. that scale And looking

of full-year benefits where to How from the process feel about your you XX-hour, getting And where customers. to sorry, you pillars and try then from get I'm that would are that? in one you're just engagement is

engagement the X XXX-day think I the that just Yes, we are talked basically parts about.

this offer attend then commerce and allows events. customers through through them our the to through The our offer So business and also in events in Those working connections be those episodic. leads, us XXX-platform. And content with with for to us ability X the tandem are the business touch happen business. or them value stay business, editorial, with to those our through

to So very I tracking it's we're think that. Obviously, a well journey.

that feel are our to we increasing value the big and do value we why and and that to pricing That's our and to the customers. customers. focused on focused in track be mentioned, pricing we mentioned to on we we able on to more, part on of customers, value we well deliver pricing the compensated David strategy as plan, a delivering we're create -- I want continue for We create command very the that our but reason is that about to maniacally value track pricing. do we good is create. What value price our creation. getting to are on We very based then for we

how so a strategy, XXX therefore, the constantly connections look we entire to the our for allows constantly And And year. days is that content for so our business, of pool and customers. do business us value create we customer do commerce to that

in you shows, you're Can are who you've My doing matching last trade are and talk shows. trade how this the that? those value for is, feedback at to terms you a like, what going technology of the question gotten, adds use forward where at with about you those

lead tools -- do. well as matchmaking solutions use we tools and are Yes, sharing our using trade of shows. We at as all we now

score, that solutions. a net the because solutions really those we all that it's and value types than stronger. well. loyalty. doing have net They that's the And measure trade higher going we us we a see they're such have utilize that shows customers have higher promoter -- And Where promoter So higher score don't. creation. implemented measure scores reason loyalty we now can rate know and for linked these of Again, well we is to

efforts this date make our and we the many of all And to been adoption adoption making as making events. events. our we've have on so sure that focused not using got of -- and have all are customers efforts to on as visitors making sure the good possible that very progress our And usage sure both And and now we're are across exhibitors it across our these we're that tools. across really

strong the on quarter. Congrats

have continue. any at this Presenters, don't questions We time. further please

Thank teams what this Emerald. to expectations on our accomplished pleased Well, quarter. just and your all all all for the very made. I'm questions. you in I'm with Great. glad your to we've to quarter. Have deliver forward day. a you with have interest wanted the And for we've you I that thank next been that speaking I able look commitments great And

This concludes today's conference call. Thank you for your participation.

You may now disconnect.