Financial Data and Key Metrics Changes - Total revenue for the first quarter was $147.7 million, up from $133.4 million in the prior year, reflecting a year-over-year increase of 10.1% [16] - Organic revenue increased by 5.6% year-over-year to $139.2 million, driven by strong growth in the connections business, which improved by 6.6% [16] - Adjusted EBITDA for the first quarter was $53.6 million, compared to $39.8 million in the prior year, marking an increase of 34.7% [16][17] - Adjusted EBITDA margin for the quarter was approximately 36.3% [17] - Free cash flow generated was $10.8 million, up from $3.8 million in the prior year [17] Business Line Data and Key Metrics Changes - The connections business showed strong organic revenue growth, contributing to the overall increase in total revenue [16] - The acquisition of InsurTech Insights positively impacted adjusted EBITDA and revenue recognition for the quarter [16][42] Market Data and Key Metrics Changes - The company has sold over 90% of its full-year revenue target from international exhibitors, with notable strength from Turkey, Brazil, and the UAE, despite pressures from China and Canada [9][10] - Approximately 10% of total revenue is generated from international exhibitors, with China and Canada each contributing about 2% [10] Company Strategy and Development Direction - The company is focused on portfolio optimization, reducing reliance on slower growth verticals, and enhancing resilience across market cycles [6][12] - A strategic focus on face-to-face engagement aligns with ongoing portfolio optimization efforts, positioning the company for stable performance across cycles [12] - The company received regulatory approval for the acquisition of This Is Beyond, which is expected to complement its portfolio and align with consumer trends [12][13] - The M&A strategy is centered on expanding into high-growth sectors while diversifying the portfolio to drive long-term shareholder value [14] Management Comments on Operating Environment and Future Outlook - Management remains confident in achieving full-year 2025 guidance of $450 million to $460 million in revenue and $120 million to $125 million in adjusted EBITDA [24] - The company is proactively monitoring external factors, including trade tensions and consumer sentiment, to adapt to market dynamics [8][24] - Management emphasized the importance of face-to-face events in the current economic environment, highlighting their role in decision-making and commerce [11] Other Important Information - The company has a strong balance sheet with $276.8 million in cash as of March 31, 2025, and total liquidity of $386.8 million [19][20] - The Board approved a quarterly dividend of $0.15 per share and reauthorized a share buyback program with an additional $25 million allocated [21][20] Q&A Session Summary Question: Update on international attendance and guidance - Management reiterated guidance based on current observations, noting declines in international attendance from China and Canada, but increased sales from other countries [27][32] Question: Impact of InsurTech on EBITDA and future events - InsurTech contributed to EBITDA in the first quarter, with two more events scheduled for June and the fourth quarter [41][43] Question: Seasonal differences in revenue across quarters - The first quarter is expected to contribute about one-third of the annual revenue, with Q2 and Q3 being smaller quarters [49] Question: Expense discipline and efficiency improvements - The company is focusing on consolidating operations onto a single platform and utilizing AI to enhance efficiency [54][56]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $147.7 million, up from $133.4 million in the prior year, reflecting a year-over-year increase of approximately 10.3% [16] - Organic revenue increased by 5.6% year-over-year to $139.2 million, driven by strong growth in the connections business, which improved by 6.6% [16] - Adjusted EBITDA for Q1 2025 was $53.6 million, compared to $39.8 million in the prior year, marking an increase of 34.7% [16] - The adjusted EBITDA margin for the quarter was approximately 36.3% [17] Business Line Data and Key Metrics Changes - The connections business showed strong organic revenue growth, contributing significantly to the overall revenue increase [16] - The InsurTech Insights acquisition positively impacted adjusted EBITDA and revenue recognition for the quarter [16][42] Market Data and Key Metrics Changes - Approximately 10% of total revenue is generated from international exhibitors, with China and Canada each contributing about 2% and Mexico less than 1% [10] - Sales efforts in China and Canada faced pressure, while countries like Turkey, Brazil, and the UAE showed strength in sales growth [8][10] Company Strategy and Development Direction - The company is focused on portfolio optimization, reducing reliance on slower growth verticals, and enhancing resilience across market cycles [6] - A strategic emphasis on face-to-face engagement aligns with ongoing portfolio optimization efforts, targeting high-growth sectors such as design and construction, food, technology, and luxury travel [12] - The company plans to close the acquisition of This Is Beyond, which aligns with consumer trends for premium experiences [12] Management's Comments on Operating Environment and Future Outlook - Management remains confident in achieving full-year 2025 guidance of $450 million to $460 million in revenue and $120 million to $125 million in adjusted EBITDA [23] - The company is proactively monitoring external factors, including trade tensions and consumer sentiment, to adapt its strategies accordingly [7][23] Other Important Information - The company had $276.8 million in cash as of March 31, 2025, up from $194.8 million at the end of 2024, supporting future acquisitions and investments [19] - A share buyback program was reauthorized with an additional $25 million allocated, reflecting management's confidence in the long-term value of the stock [20][21] Q&A Session Summary Question: Update on guidance considering trade war impacts - Management reiterated guidance based on current observations, noting that international revenues from China and Canada are expected to decline, but sales from other countries are increasing [26][28][31] Question: Impact of InsurTech on EBITDA - InsurTech contributed positively to EBITDA in Q1, with revenue recognized from the event held during the quarter [41][42] Question: Seasonality of revenue across quarters - Q1 is expected to contribute about one-third of annual revenue, with Q2 and Q3 being smaller quarters due to the mix of events [48][49] Question: Future expense discipline - The company is focusing on consolidating operations onto a single platform to find efficiencies and is testing AI applications to improve operational effectiveness [55][56]

Financial Performance - Emerald Holding's Q1 2025 revenue reached $147.7 million, demonstrating a 10.7% year-over-year growth[10, 27] - Adjusted EBITDA for Q1 2025 was $53.6 million, a 34.7% increase compared to the previous year[10, 27] - The company reaffirmed its full-year 2025 revenue guidance, expecting between $450 million and $460 million[10, 35, 36] - Emerald also reaffirmed its full-year 2025 Adjusted EBITDA guidance, projecting between $120 million and $125 million[10, 35, 36] - Free cash flow for Q1 2025 was $10.8 million[27, 41] Capital Allocation - Emerald repurchased $8.8 million of its common stock in Q1 2025, at an average price of $4.33 per share[10, 27] - The Board of Directors authorized an additional $25 million for share repurchases through December 31, 2025[10] - A quarterly dividend of $0.015 per share was declared for the quarter ending June 30, 2025[10] Strategic Initiatives - Emerald received regulatory approval for the acquisition of This is Beyond, a luxury travel event business, expected to close soon[10] - Connections segment accounted for approximately 90% of FY 2024 revenue[11]

Financial Performance - Revenues for Q1 2025 were $147.7 million, an increase of $14.3 million or 10.7% compared to Q1 2024, driven by organic revenue growth and acquisitions[8] - Organic Revenues for Q1 2025 were $139.2 million, reflecting a growth of $7.4 million or 5.6% from $131.8 million in Q1 2024[8] - Net income for Q1 2025 was $15.3 million, up from $11.0 million in Q1 2024, representing a 39.1% increase[11] - Adjusted EBITDA for Q1 2025 was $53.6 million, a 31.4% increase from $40.8 million in Q1 2024[11] - Revenues for the three months ended March 31, 2025, were $147.7 million, a 10.7% increase from $133.4 million in the same period of 2024[35] - Adjusted EBITDA for the same period was $53.6 million, up from $40.8 million year-over-year, reflecting a significant improvement in operational performance[40] - The Connections segment generated revenues of $138.3 million in Q1 2025, up from $123.4 million in Q1 2024, an increase of 12.9%[42] - Adjusted EBITDA for the Connections segment increased to $66.2 million in Q1 2025, up from $56.1 million in Q1 2024, a growth of 17.9%[42] - Income before income taxes improved to $20.7 million in Q1 2025, compared to $14.5 million in Q1 2024, indicating a 42.8% increase[42] Cash Flow and Liquidity - The company ended Q1 2025 with $276.8 million in cash and full availability of its $110.0 million revolving credit facility[8] - Free Cash Flow for Q1 2025 was $10.8 million, a significant increase of 125.0% compared to $4.8 million in Q1 2024[24] - Net cash provided by operating activities increased to $12.6 million in Q1 2025 from $7.3 million in Q1 2024, representing a 72.6% growth[41] - Free cash flow rose to $10.8 million in Q1 2025, up from $4.8 million in Q1 2024, marking a 125% increase[41] Dividends and Stock Repurchase - The Board of Directors declared a dividend of $0.015 per share for the quarter ending June 30, 2025[17] - Emerald repurchased $8.8 million of its common stock in Q1 2025 at an average price of $4.33 per share[8] - The company expects to continue paying regular quarterly dividends, subject to Board approval and various financial factors[32] Acquisitions and Regulatory Approvals - The acquisition of This is Beyond, a London-based organizer of B2B trade shows, received regulatory approval and is expected to close soon[8] Assets and Expenses - Total assets as of March 31, 2025, were $1,183.0 million, up from $1,048.7 million at the end of 2024, showing a growth of 12.8%[37] - The company’s cash and cash equivalents increased to $276.8 million from $194.8 million, representing a 42.1% rise[37] - Interest expense for Q1 2025 was $17.4 million, compared to $12.1 million in Q1 2024, reflecting increased borrowing costs[35] - Capital expenditures decreased to $1.8 million in Q1 2025 from $2.5 million in Q1 2024, a reduction of 28%[41] - General corporate expenses decreased to $13.3 million in Q1 2025 from $15.5 million in Q1 2024, a decline of 14.2%[42] - Interest expense, net increased to $15.1 million in Q1 2025 from $9.8 million in Q1 2024, a rise of 53.1%[42] Guidance and Projections - The company reaffirms its full-year 2025 guidance of $450 - 460 million in revenue and $120 - 125 million in Adjusted EBITDA[9] - The company is unable to provide reconciliations for projected Adjusted EBITDA to projected net income for 2025 due to uncertainties related to acquisitions and scheduling adjustments[29] Other Income - Other income, net for the Connections segment was $0 in Q1 2025, down from $1.0 million in Q1 2024[42]

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Financial Data and Key Metrics Changes - Revenue for Q4 2024 was $106.8 million, up from $101.5 million in the prior year quarter, driven by organic revenue growth of $6.1 million or 6.5% [28][29] - Full-year revenue totaled $398.8 million, an increase of 4.2% versus the prior year, with organic revenue growth of $21.3 million or 5.9% [30] - Adjusted EBITDA for Q4 was $32.6 million compared to $35.8 million in the prior year quarter, while full-year adjusted EBITDA was $100.2 million, up from $95 million in the prior year [32][33] Business Line Data and Key Metrics Changes - The company launched an aggressive portfolio optimization effort in 2024, pruning unprofitable events and establishing a more nimble portfolio for growth [6][22] - The acquisitions of This is Beyond and Insurtech Insights are expected to contribute approximately $40 million in revenue and $15 million in adjusted EBITDA in 2025 [19][39] Market Data and Key Metrics Changes - The luxury travel market is highlighted as a key growth area, with 85% of luxury travelers considering travel advisors crucial for securing personalized experiences [12] - The insurance technology industry is projected to grow at a CAGR of 5% to 6% globally through 2030, indicating strong market potential for Insurtech Insights [17][18] Company Strategy and Development Direction - The company is focused on three pillars of value creation: customer centricity, 365-day engagements, and portfolio optimization [21] - The strategy includes expanding into high-growth sectors, particularly luxury and technology-oriented events, to enhance margins and growth [7][41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the portfolio and the resilience of the team, anticipating improved growth and margin enhancements in 2025 [8][26] - The ongoing construction at the Las Vegas Convention Center is expected to impact certain events but is projected to be completed by the end of 2025, leading to improved customer experiences in 2026 [24][94] Other Important Information - The company successfully refinanced its debt, enhancing financial flexibility and reducing financing costs by 125 basis points [20][44] - A quarterly dividend of $0.15 per share was declared, reflecting a dividend yield of 1.6% based on the closing price [47] Q&A Session Summary Question: How are the acquisitions being funded? - The acquisitions are funded with cash on hand, with deferred components based on performance through 2027 [56] Question: What is the expected annualized revenue and EBITDA from the acquisitions? - The expected annualized impact of the acquisitions is built into the guidance, with a moderate shift in seasonality anticipated [59][62] Question: Are the EBITDA figures provided pre or post-synergies? - The EBITDA figures are pre-synergies, with potential synergies expected to materialize in 2026 and beyond [73] Question: What is the outlook for free cash flow conversion? - The company expects free cash flow of $50 million plus, indicating a positive step forward in conversion from EBITDA [81] Question: Will there be further portfolio optimization in 2025? - Continuous assessment of the portfolio will occur, with actions taken if underperforming elements are identified [102]

Financial Data and Key Metrics Changes - Revenue for Q4 2024 was $106.8 million, up from $101.5 million in the prior year quarter, driven by organic revenue growth of $6.1 million or 6.5% [28][29] - Full-year revenue totaled $398.8 million, an increase of 4.2% versus the prior year, with organic revenue growth of $21.3 million or 5.9% [30] - Adjusted EBITDA for Q4 was $32.6 million compared to $35.8 million in the prior year quarter, while full-year adjusted EBITDA was $100.2 million, up from $95 million in the prior year [32][33] Business Line Data and Key Metrics Changes - The company launched an aggressive portfolio optimization effort in 2024, pruning unprofitable events and establishing a more nimble portfolio for growth [6][22] - The acquisitions of This is Beyond and Insurtech Insights are expected to contribute approximately $40 million in revenue and $15 million in adjusted EBITDA in 2025 [19][39] Market Data and Key Metrics Changes - The luxury travel market is highlighted as a key growth area, with 85% of luxury travelers considering travel advisors crucial for securing personalized experiences [12] - The insurance technology industry is projected to grow at a CAGR of 5% to 6% globally through 2030, providing a strong growth characteristic for Insurtech Insights [17][18] Company Strategy and Development Direction - The company’s strategy focuses on three pillars: value creation, customer centricity, and portfolio optimization, with an emphasis on high-growth industries [21][22] - The company is open to pursuing strategic opportunities for future acquisitions and new launches, aiming to enhance its portfolio mix towards high-growth sectors [22][40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the portfolio and the resilience of the team, expecting significant pull-through to the bottom line as organic growth accelerates [8][26] - The company anticipates revenue for 2025 to be in the range of $450 million to $460 million, with adjusted EBITDA expected to increase to $120 million to $125 million [26][48] Other Important Information - The company completed a refinancing of its debt on January 30, enhancing financial flexibility and reducing financing costs by 125 basis points [20][44] - A quarterly dividend of $0.15 per share was declared, reflecting a dividend yield of 1.6% based on the closing price [47] Q&A Session Summary Question: How are the acquisitions being funded? - The acquisitions are funded with cash on hand, with deferred components based on performance through 2027 [56] Question: What is the expected annualized revenue and EBITDA from the acquisitions? - The expected annualized impact of the acquisitions is built into the guidance, with a moderate shift in seasonality anticipated [59][62] Question: Are the EBITDA figures provided pre or post-synergies? - The EBITDA figures are pre-synergies, with potential synergies expected to materialize in 2026 and beyond [73] Question: How should free cash flow conversion be viewed this year? - The company expects free cash flow of $50 million plus, indicating a positive step forward in conversion from EBITDA to free cash flow [81] Question: Will there be ongoing evaluation of underperforming trade shows? - The company will continuously assess the performance of its portfolio and take action on underperforming elements as necessary [102]

Emerald Holding, Inc. Fourth Quarter and Full Year 2024 March 14, 2025 Legal Disclaimer Forward-Looking Statements This presentation also includes certain non-GAAP financial measures. These non-GAAP financial measures are in addition to, and should not be considered as a substitute for or superior to, measures of financial performance prepared in accordance with generally accepted accounting principles ("GAAP"). The non-GAAP measures included herein may be different from similarly titled non-GAAP measures u ...

Acquisitions and Investments - The company acquired Hotel Interactive on January 19, 2024, enhancing its hosted buyer platform with 15 events in hospitality, food service, and healthcare sectors [27]. - On May 7, 2024, the company acquired the Blockchain Futurist Conference to expand its offerings in the blockchain sector [28]. - In 2025, Emerald completed acquisitions including JD Events LLC, This is Beyond Limited, and Insurtech Insights Limited, expanding its portfolio in the food service and insurance technology sectors [177]. - Onex committed to invest more than $300 million in Convex Group Limited, which is the lead underwriter of the Company's event cancellation insurance policies for 2022 to 2026 [134]. Financial Performance - Revenues for the year ended December 31, 2024, were $398.8 million, an increase of 4.0% compared to $382.8 million in 2023 [165]. - Net income for 2024 was $2.2 million, compared to a net loss of $8.2 million in 2023 [165]. - Operating income for 2024 was $46.8 million, compared to $34.7 million in 2023, reflecting a 34.0% increase [165]. - Adjusted EBITDA for 2024 was $101.7 million, up by $3.9 million or 4.0% from $97.8 million in 2023 [209]. - Free Cash Flow increased to $37.0 million in 2024, representing an increase of $8.2 million or 28.5% compared to $28.8 million in 2023 [209]. Revenue Sources and Trends - The Commerce division's revenue consists of subscription revenue, implementation fees, and professional services from its Elastic Suite and Bulletin platforms [46]. - The majority of exhibit space is sold within twelve months prior to each trade show, leading to potential lag time in revenue recognition based on economic conditions [190]. - Seasonal trends indicate that trade show revenues typically peak in the first and fourth quarters, influenced by the timing of events [190]. - Organic revenue for 2024 was $385.3 million, reflecting a growth of $21.3 million or 5.9% from $364.0 million in 2023 [209]. Operational Challenges - The company has faced challenges in securing desirable dates and locations for trade shows, which can significantly impact profitability and operations [80]. - Increased competition in the trade show market could adversely affect the company's business, financial condition, cash flows, and results of operations [84]. - The company has historically depended on a concentrated number of top trade shows for revenue generation, making it vulnerable to declines in performance [85]. - The company is subject to significant restrictions and covenants in its Second Amended and Restated Senior Secured Credit Facilities, including a financial covenant requiring a total first lien net secured leverage ratio of 5.50 to 1.00, tested quarterly [114]. Insurance and Risk Management - The aggregate limit for the renewed 2025 primary event cancellation insurance policy is $100 million, with additional policies for specific events covering approximately $8.3 million and $7.8 million [67]. - The company maintains various insurance policies, but coverage may not fully offset losses from business interruptions or event cancellations, particularly due to natural disasters [98]. - The company’s event cancellation insurance policies do not cover losses due to communicable disease outbreaks, which could materially affect financial results [1]. - The company faces risks associated with event cancellations, which may not be fully covered by insurance, impacting financial results [98]. Corporate Governance and Shareholder Matters - Onex beneficially owns approximately 91.6% of the company's outstanding common stock, allowing it to control major corporate decisions, potentially conflicting with the interests of other shareholders [130]. - The Company is classified as a "controlled company" under New York Stock Exchange rules, with Onex owning the majority of outstanding common stock [136]. - The board of directors approved a share repurchase program allowing for the repurchase of $25.0 million of common stock through December 31, 2025 [157]. - A total of 1,776,884 shares were repurchased during the fourth quarter of 2024, with an average price of $4.76 per share [158]. Environmental and Social Responsibility - The company aims to reduce greenhouse gas emissions by 50% by 2030 as part of its commitment to achieving net zero carbon emissions by 2050 [61]. - The company is committed to fostering a culture of respect and inclusion, with initiatives to support diverse backgrounds and perspectives among employees [62]. - The company has eliminated the college-degree requirement for various positions to expand the applicant pool and promote skills-based hiring [63]. Cybersecurity and Compliance - The Company has implemented an enterprise-wide information security program to manage cybersecurity risks, including third-party monitoring and incident response services [147]. - The company faces evolving cybersecurity risks that could lead to loss or theft of confidential information, resulting in reputational damage and financial losses [117]. - The company is subject to various U.S. and international privacy and consumer protection laws, and non-compliance could result in significant penalties or legal liabilities [122]. - The evolving data protection landscape, including the California Consumer Privacy Act, may require substantial operational changes and incur additional costs for compliance [123].

Financial Performance - For the year ended December 31, 2024, the estimated total revenue is projected to be at least $400 million, with Adjusted EBITDA expected to be at least $100 million[29]. - As of September 30, 2024, the company reported total revenue of $393.5 million and Adjusted EBITDA of $103.5 million[18]. - FY 2024 revenue is expected to be at least $400 million, with adjusted EBITDA projected to be at least $100 million[60]. - FY 2023 revenue reached $382.8 million, up from $325.9 million in FY 2022, representing a growth of approximately 17.4%[63]. - Adjusted EBITDA for FY 2023 was $98 million, compared to $240 million in FY 2022, indicating a decline of about 59%[70]. - Adjusted EBITDA excluding insurance proceeds for FY 2023 was $95 million, compared to $57 million in FY 2022[70]. Liquidity and Capital Structure - The company has ample liquidity of $299 million, consisting of $189 million in cash and cash equivalents and $110 million of undrawn revolver capacity[18]. - The estimated total capitalization is $1.367 billion, with a market capitalization of $958 million[21]. - The total debt to Adjusted EBITDA ratio is 4.0x, while the net debt to Adjusted EBITDA ratio is 2.1x[21]. - The net leverage ratio as of September 30, 2024, is 2.1x, within the targeted long-term range of 2.0 - 3.0x[66]. - Emerald is seeking to raise a new $415 million First Lien Term Loan to refinance its existing $409 million First Lien Term Loan due in 2026[18]. - A common stock dividend has been reinstated at an annualized rate of $12 million, or $0.06 per share, with a target payout ratio of up to 25% of free cash flow[66]. Business Segments and Market Position - The company operates across three business lines: Connections (~90% of revenue), Content (~5% of revenue), and Commerce (~5% of revenue)[32]. - The Connections segment includes leading B2B trade shows and conferences, generating revenue from booth space sales, registration fees, and sponsorship fees[33]. - The US B2B trade show market represents a total addressable market (TAM) of $13.5 billion, with the largest trade show organizers accounting for only 8% of the overall market[43]. - Emerald's largest five shows contribute 29% of FY 2024E revenues, with no single customer exceeding 1% of total revenue[51]. - 90% of FY 2024E revenues are expected to come from live events, with over 90% of trade show franchises holding market-leading positions[51]. - The company has completed over 30 acquisitions in the last decade, totaling $897 million in capital deployed, enhancing its market position[52]. - The company completed 9 acquisitions over the past 3.5 years to supplement organic growth and diversify exposure[66]. Growth and Strategic Initiatives - The company anticipates continued growth and expansion in its market presence, leveraging its diversified portfolio across various sectors[32]. - The company anticipates a CAGR of approximately 3.0% in the US market from 2024E to 2028E[43]. - The company aims for adjusted EBITDA margin expansion to over 35% in the coming years, driven by organic growth and value-based pricing strategies[68]. - The long-term growth plan targets mid-high single-digit organic growth, supported by enhanced enterprise and international sales efforts[68]. - Significant revenue visibility is noted due to advanced booking of events, contributing to steady organic revenue growth[68]. Technology and Innovation - The company is investing approximately $5-6 million annually in upgraded technology related to its Elastic Suite offering[55]. - The average number of new leads generated per trade show is 60%, with 64% of CMOs planning to increase investments in in-person events[47].