Emerald Holding(US:EEX)2024-05-11 13:21Financial Data and Key Metrics Changes - Total revenue for Q1 2024 was $133.4 million, an increase from $122.3 million in the prior year, driven primarily by organic revenue growth [45] - Organic revenue for the connection segment was $118.6 million, reflecting a 13% increase year-over-year [45] - Adjusted EBITDA for Q1 2024 grew 9% to $39.8 million, resulting in an adjusted EBITDA margin of approximately 30% [46] - Free cash flow for Q1 2024 was $3.8 million, down from $5.2 million in the prior year [46] - SG&A expenses increased to $55.5 million from $48.8 million, largely due to acquisition-related costs and severance expenses [47] Business Line Data and Key Metrics Changes - The content business showed signs of stabilization after experiencing pressure on advertising budgets, with new initiatives like the Small Business Exchange gaining traction [41][82] - The commerce business, particularly the Elastic Suite, has expanded into new categories, doubling its total addressable market [42][78] - The company is focused on improving customer experience and increasing revenue per customer through enhanced services and data insights [32] Market Data and Key Metrics Changes - The company noted variability in organic growth rates based on the sectors served, with expectations for stronger growth in Q1 and Q4 compared to the middle quarters [51] - The international sales team is seeing improvements in the mix of business from international exhibitors [55] Company Strategy and Development Direction - The company aims for consistent, profitable growth through customer centricity, 365-day engagement, and portfolio optimization [31] - Plans to leverage new event launches to contribute 1 to 2 percentage points of annual revenue growth [33][76] - The conversion of preferred shares into common stock simplifies the capital structure and is expected to enhance free cash flow for shareholders [30][67] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the revenue trajectory for 2024, supported by strong early rebookings and successful shows [27] - The company is optimistic about the content business due to recent investments and leadership changes aimed at generating leads rather than relying solely on advertising [82] - Management is actively lobbying for improvements in visa processing to enhance international participation in events [74] Other Important Information - The company completed the acquisition of Hotel Interactive, which is expected to contribute to revenue growth through hosted buyer events [69] - The company has a total liquidity of $296.8 million, including cash and credit facility availability [66] Q&A Session All Questions and Answers Question: Can you elaborate on the variability in organic growth rate expectations for this year? - Management indicated that organic growth rates vary by sector and that Q1 and Q4 are expected to show the strongest growth, while the middle quarters may have muted growth [51] Question: What is the materiality of the Hotel Interactive acquisition? - The acquisition is significant as it includes a series of smaller hosted buyer events that provide high ROI for sponsors and attendees [69] Question: How is the company addressing the visa processing issues? - Management is part of an industry effort to lobby for modernization of visa processing and is seeing some progress in Congress [74] Question: Can you discuss the performance of the Elastic Suite and its expansion? - The Elastic Suite has successfully expanded into new categories, significantly increasing its addressable market [42][78] Question: What are the company's expectations for pricing improvements? - Management expects at least mid-single-digit pricing improvements for the year, building on previous years' enhancements [72]