Q3 2023 Emerald Holding Inc Earnings Call
Speaker 1: Good morning and welcome to the Emerald Holding Inc. 3rd quarter, 2023 Earnings Conference Call.
Good morning, and welcome to the Atmos holding Inc. Third quarter 2023 earnings Conference call.
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Short answer session will follow the formal presentation.
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Can you may be placed in the question queue at any time by pressing star one on your telephone keypad. As a reminder, this conference is being recorded.
Speaker 1: Before we begin, let me remind everyone that just call will include certain statements that constitute forward-looking statements within the meeting of the private securities of the Gation Reform Act of 1995.
Before we begin let me remind everyone that just call will include certain statements that constitute forward looking statements within the meaning of the private Securities Litigation Reform Act of matching 90 fives.
Speaker 1: to remarks about future expectations, beliefs, estimates, plans, and processes.
These include remarks about future expectations beliefs estimates plans and prospects.
Speaker 1: In particular, the company statements about projected results for 2023 are forward-looking state
Particular, the company's statements about projected results for 2023 are forward looking statements.
Speaker 1: such statements are subject to a variety of risks on certain keys and other factors that could cause aeroosal of different material from those indicated or implied by such 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 set forth in the company's most recently filed periodic reports on Form 10-K, and Form 10-Q, and subsequent filings the company does not undertake.
Speaker 1: Such risks and other factors are set forth in the company's most recently filed periodic reports on Form 10-K and Form 10-Q and subsequent filings.
Speaker 1: The company does not undertake any duty to update such forward-looking statements.
Any duty to update such forward looking statements.
Speaker 1: Additionally, during today's call, management will discuss non- GAAP measures , which it believes can be useful in evaluating the company's performance.
Additionally, during today's call management will discuss non-GAAP measures, which it believes can be useful in evaluating the company's performance. The presentation of this additional information should not be considered in isolation or as a substitute for results prepared in accordance with U S. GAAP.
Speaker 1: presentation of this additional information should not be considered in isolation or as a substitute for results prepared in a Corners with US gap. The reconciliation of these non- GAAP measures to the most comparable gap measure can be found in the company's earning.
A reconciliation of these non-GAAP measures to the most comparable GAAP measure can be found in the company's earnings release.
Speaker 1: As a reminder, this conference is being recorded and a replay of the call will be available on the investors section of the company's website through 1159 p.m. Eastern Time.
As a reminder, this conference is being recorded and a replay of the call will be available on the investors section of the company's website through 11 59 P. M. Eastern time on November 13th.
Speaker 1: I now let you turn the conference over to Mr. Ervei-Seki, President and Chief Executive Officer. Sir, please go ahead.
Now, let's turn the conference over to Mr. If they said keep president and Chief Executive Officer, Sir. Please go ahead.
Well, thank you Kevin and good morning, everyone. It's great to be with all of you today to discuss our third quarter results I'll start with a review of our year to date performance and then give an overview of our strategy focus on our growth pillars customer Centricity 365 day engagement and portfolio optimization they've adopt.
Speaker 2: Well, thank you, Kevin, and good morning, everyone. It's great to be with all of you today to discuss our third quarter results. I'll start with a review of our year-to-day performance and then give an overview of our strategy focused on our growth pillars, customer centricity, 365 day engagements and portfolio optimization. David Doft, our CFO , will then provide more detail on our financial.
Our CFO will then provide more detail on our financials.
Speaker 2: Starting with live events, we continue to see significant year-over-year growth in both revenue and profitability, driven by increases in exhibitors, attendees, and prices.
Starting with my goodness, we continue to see significant year over year growth in both revenue and profitability driven by increases in exhibitors and attendees and pricing.
Speaker 2: as a highly diversified and scaled platform. Emerald continues to benefit from post-COVID-Tailwinds, including the removal of international travel restrictions, with some attendees just beginning to return to shows this year, as well as improvements in our customers supply chain.
As a highly diversified and scaled platform Emerald continues to benefit from post COVID-19 tailwind, including the removal of international travel restrictions with some it's Andy is just beginning to return to shows this year as well as improvements in our customers' supply chains.
Speaker 2: We've implemented on-site pre-booking at most of our trade shows, which means we are already selling exhibitors space for next year's edition.
We've implemented onsite pre booking at most of our trade shows which means we are already selling exhibitor space for next year's edition.
Our sales pacing data gives us high granular view it with different trends up to a year.
Speaker 2: Our sales pacing data gives us high granular view in the different trends up to a year.
Speaker 2: This gives us a great deal of confidence in our growth plan for 2024, where we project continued increases in our exhibitor count and revenue above our industry's historical run rate.
This gives us a great deal of confidence in our growth plans for 2024, where we project continued increases in our exhibitor accounts and revenue above our industry's historical run rates.
Speaker 2: On-site pre-book also frees up our sales force to pursue new business rather than chasing renewal.
Onsite pre book also frees up our sales force to pursue new business rather than chasing renewals.
Speaker 2: In this market environment, we believe our forward visibility is a highly valuable feature of our business along with our free cash flow generation and operating leverage, which we believe should enable us to achieve EBITDA margins of approximately 35% within the next three years.
In this market environment, we believe our forward.
Forward visibility is a highly valuable feature of our business along with our free cash flow generation and operating leverage, which we believe should enable us to achieve EBITDA margins of approximately 35% within the next three years. Our Tradeshow business is also more resilient to changes in broader and more.
Speaker 2: Our trade show business is also more resilient to changes in broader market dynamics due to our business mix. We have greater exposure to a long-term secular growth areas and we're less resilient reliance on standard marketing budgets compared to other industry players.
Dynamics due to our business mix, we have greater exposure to a long term secular growth areas and we're less resilient reliance on standard marketing budgets compared to other industry players.
Speaker 2: The strength and resilience of our business comes from the unique and measurable value we bring to our customers who are themselves business owners looking to maximize the value that they get from their mark marketing.
The strength and resilience of our business comes from their unique and measurable value, we bring to our customers who are themselves business owners looking to maximize the value that they get from their marketing budgets.
Speaker 2: Trachos provide a tangible ROI to exhibitors in the form of purchaser.
Tradeshows provide a tangible ROI to exhibitors in the form of purchase orders for nearly half of small businesses in the U S and participate in at least one trade show per year trade shows or their number one selling events of the year a big part of our ongoing efforts has been to clarify this.
Speaker 2: For nearly half of small businesses in the U.S. that participate in at least one trade show per year, trade shows are their number one selling events of the year.
Speaker 2: A big part of our ongoing efforts has been to clarify this value proposition and make the ROI more transparent by developing value-add tools and metrics which we believe will deliver an even better trade show experience to both exhibitors and attendees.
<unk> proposition and make the ROI more transparent by developing value added tools and metrics, which we believe will deliver an even better trade show experience to both exhibitors and attendees.
Speaker 2: The result is that our customers view our shows as an investment rather than a cost. They know we understand them and they know our objective is to help them achieve and even surpass the goals they have set for them.
The result is that our customers view, our shows as an investment rather than a cost. They know we understand them and they know our objective is to help them achieve and even surpass the goals we have set for themselves.
Moving now to our third quarter results, while David will speak to our financials in more detail.
Speaker 2: Moving now to our third quarter results. While David will speak to our financials in more detail, as a headline, our third quarter revenue was $72.5 million compared to the $62.4 million in the prior quarter, even with approximately $5 million of revenue shifting out of the quarter due to the timing of events during the year.
The headline our third quarter revenue was $72 5 million compared to the $62 4 million in the prior quarter, even with approximately $5 million of revenue shifting out of the quarter due to the timing of events during the year in July as we previously announced we hosted in.
Speaker 2: in July , as we previously announced, we hosted the inaugural edition of NBACon, first of its kind fan events that Emerald hosted in collaboration with the National Basketball Association.
I'm Real addition of NBA Con a first of its kind fan events that Emerald hosted in collaboration with the National Basketball Association, we're pleased with the execution and attendance at events, which required some upfront launch investments, we expect to build on our NBA partnership in future years.
Speaker 2: We're pleased with the execution and attendance at the events, which requires an up front launch investment.
Speaker 2: we expect to build on our NBA partnership in future years. In September , we had another successful event launch with the inaugural edition of Cocina Sabrosa in Irving, Texas, a trade show focused on the Latin food and beverage industry.
In September we had another successful event launch with the inaugural edition of Casino sub Rosa in Irving, Texas, a trade show focused on the Latin food and beverage industry, we identified the Latin food market as an industry that despite being a large and fast growing category in the U S did not have a nap.
Speaker 2: We identified the Latin food market as an industry that, despite being a large and fast-growing category in the U.S., did not have a national trade show serving wholesalers, retailers, and restaurants. The Cocina Sabrosa show is indicative of the types of new event launches that we're focusing on, underserved markets with high growth supported by long-term consumer and business trends.
<unk> tradeshow, serving wholesalers retailers and restaurants.
She now Sabrosa show is indicative of the types of new event launches that we're focusing on underserved markets with high growth supported by long term consumer and business trends.
Speaker 2: Just a few weeks ago, we also hosted the second iteration of advertising week New York since acquiring the business in June 2022. It was their 20th edition and delivered their largest at 10D levels in its history.
Just a few weeks ago. We also hosted the second iteration of advertising week in New York since acquiring the business in June 2022. It was their 20th edition and delivered their largest attendee levels in its history.
Speaker 2: At the event, I was drawn on a panel by the Chief Marketing Officer of Delta and the CEO of Miele USA, where we highlighted the value of and the ROI inherent in live events across a variety of industries. It was validating to hear from other executive level marketing leaders about the value that they place on face-to-face meetings and the continued importance of prioritizing these types of events in their marketing budgets each year.
As the events I was joined on a panel by the Chief marketing officer of Delta and the C. O M yellow USA, where we highlighted the value of and the ROI inherent in live events across a variety of industries. It was validating to hear from other executive level marketing leaders about the value that they play.
<unk> on face to face meetings and the continued importance of prioritizing these types of events in their marketing budgets each year.
Speaker 2: While the live events business remains strong, we are seeing some softness in our content business primarily within the technology sector. As a reminder, our content business represents approximately 10% of our revenues in a given year. Our content...
While the live events business remains strong we are seeing some softness in our content business, primarily within the technology sector. As a reminder, our content business represents approximately 10% of our revenues in a given year our content serving the technology sector is more exposed to the AD spending side.
Speaker 3: serving the technology sector is more exposed to the ad spending cycle which has felt the effects of a pullback and tech ad spends this year as noted by many companies in the fact
Goal, which has felt the effects of a pullback in AD spend this year as noted by many companies in the sector. This impacted our third quarter and will impact our fourth quarter as well that said, we strongly believe in the long term synergies between our content business and our core trade shows our media assets allows.
Speaker 2: This impacted our third quarter and will impact our fourth quarter as well. That said, we strongly believe in the long-term synergies between our content business and our core trade show.
Speaker 2: Our media assets allow us to advertise and cross-sell Emerald's own events and to maintain year-round engagement with our customers as we serve as the go-to source for business news and trends in each respective industry.
To advertise and cross sell emerald's own events and to maintain year round engagement with our customers as we serve as the go to source for business news and trends in each respective industry. We remain optimistic about the longer range prospects for content, especially given the strong new leadership team that we have put in.
Speaker 3: We remain optimistic about the longer-range prospects for content, especially given the strong new leadership team that we have put in place over the last 12 months. We also expect to see the advertising environment stabilize in 2024. However, the year-term headwinds and ad spends are presenting some risk as we expect a low single-digit percentage impact to our four-year 2023 guidance as a result which David will discuss in more detail in a moment.
Place over the last 12 months, we also expect to see the advertising environment stabilized in 2024, however in the near term headwinds in AD spend are presenting some risk as we expect a low single digit percentage impact to our full year 2023 guidance as a result, which David will disk.
<unk> in more detail in a moment looks.
Speaker 2: Looking ahead, we remain focused on our three pillars of value creation, customer centricity, 365 day engagements, and portfolio optimization. In customer centricity, we're focused on delivering greater value to customers in the form of add-on services, actual data and insights, in a clear picture of the return on investment they receive from the marketing dollars they put to work across Emerald's platform.
Looking ahead, we remain focused on our three pillars of value creation customer Centricity 365, the engagements and portfolio optimization.
And customer Centricity, we're focused on delivering greater value to customers in the form of add on services actual data and insights and a clearer picture of the return on investment they received from their marketing dollars they put to work across Emerald platform.
Speaker 2: This improves our stickiness with customers, incentivizes them to deploy more marketing dollars with Emerald, and ultimately should drive higher revenue for customers.
This improves our stickiness with customers incentivize them to deploy more marketing dollars with Emerald and ultimately should drive higher revenue per customer.
Speaker 2: Our second pillar of 360-fake 65-day engagement is about providing multiple entry points to the customer engagement cycle through trade shows, conferences, webinars.
Our second pillar of 365, 65 day engagement is about providing multiple entry points to the customer engagement cycle through trade shows conferences, Webinars media content, and our e-commerce platform, which gives them buyers and sellers and digital platform for year round selling.
Speaker 3: media content in our e-commerce platform, which gives buyers and sellers a digital platform for year-round selling.
Speaker 3: Our third pillar is portfolio optimization, which includes both acquisitions and new event launches. Over time, we expect new event launches through our Emerald Accelerator units, such as NBACON and Cocina Sabrosa, which I discussed, to contribute one to two percentage points of annual revenue growth.
Our third pillar is portfolio optimization, which includes both acquisitions and new event launches over time, we expect new event launches through our Emerald accelerator units, such as NBA Con and casino Sabrosa, which I discussed to contribute one to two percentage points of annual revenue growth.
Speaker 2: On the acquisition sides, we continue to evaluate a large pool of potential acquisitions with the ability to bring Emerald Scale and operational efficiencies to shows within a highly fragmented industry. This includes some smaller near-term opportunities in the active pipeline that we're working hard to get to the finish line.
On the acquisition side, we continue to evaluate a large pool of potential acquisitions with the ability to bring emerald scale and operational efficiencies two shows within a highly fragmented industry. This includes some smaller near term opportunities in the active pipeline that we're working hard to get to the finish line.
Speaker 3: To conclude, our 2023 results continue to track generally in line with our expectations, despite some softness in parts of our content business.
To conclude our 2023 results continue to track generally in line with our expectations. Despite some softness in parts of our content business, we're especially excited to look ahead to 2024 and beyond where we'll continue to demonstrate our free cash flow generation and compounding abilities.
Speaker 3: We're especially excited to look ahead to 2024 and beyond, where we'll continue to demonstrate our free cash flow generation and compounding abilities as we grow attendance and revenues, expand margins, and continue to realize the benefits of our recent investments into our technology and data systems that deliver greater and greater value to our customers every year that they return to our shows. With that, let me turn the call over to David Doft, our CFO . Thank you.
As we grow attendance and revenues expand margins and continued to realize the benefits of our recent investments into our technology and data systems that deliver greater and greater value to our customers every year did they returned to our shows with that let me turn the call over to David <unk> Our CFO.
Thank you Jorge and good morning.
Speaker 4: Starting with the top line, our third quarter revenue was $72.5 million, compared to $62.4 million in the prior year quarter. The increase was driven primarily by organic revenue growth and revenue from acquisition.
Starting with the topline our third quarter revenue was $72 $5 million compared to $62 $4 million in the prior year quarter. The increase was driven primarily by organic revenue growth and revenue from acquisitions.
Speaker 4: Organic revenue, which takes into account the impact of acquisitions and scheduling adjustments, was $68.5 million, an increase of $12.4 million, or 22.1% versus the third quarter, 2022. This reflects the continued strength of our events business and is, despite the decline in our content business, reflected in the other marketing services line in our disaggregated revenue.
Organic revenue, which takes into account the impact of acquisitions and scheduling adjustments was $68 $5 million, an increase of $12 $4 million or 22, 1% versus the third quarter 2022. This.
This reflects the continued strength of our events business and this despite the decline in our content business.
Reflected in the other marketing services line in our disaggregated revenue.
Speaker 4: Year-to-date, our organic growth is 16.6%.
Year to date, our organic growth is 16, 6%.
Speaker 4: As a reminder, the second and third quarters are seasonally slower following the busy Q1 trade show calendar. Our acquisitions have slightly shifted the seasonality dynamics compared to our historical performance and have made Q4 our second largest quarter, with Q1 remaining our largest.
As a reminder, the second and third quarters are seasonally slower following the busy Q1 trade show calendar, our acquisitions of slightly shifted the seasonality dynamics compared to our historical performance and have made Q4, our second largest quarter with Q1 remaining our largest.
During the third quarter, we received an additional $2 $8 million of event cancellation insurance proceeds due to the settlement of our last remaining COVID-19 related insurance claim.
Speaker 4: During the third quarter, we received an additional $2.8 million of event cancellation insurance proceeds due to the settlement of our last remaining COVID-related insurance claim. Recall that last year, we also received a substantial payment from event cancellation proceeds in the third quarter, and at this point, we have no remaining claims outstanding.
Call that last year. We also received a substantial payment from event cancellation proceeds in the third quarter and at this point, we have no remaining claims outstanding.
Speaker 4: Serve quarter adjusted EBITDA, including these proceeds with $10.8 million, or excluding the proceeds, $8.0 million.
Third quarter adjusted EBITDA, including these proceeds was $10 $8 million or excluding the proceeds $8.0 million.
Speaker 4: For the same quarter last year, adjusted EBITDA was $149.7 million, or negative $1.3 million when excluding the $151 million of insurance proceeds received in the third quarter of 2022.
For the same quarter last year, adjusted EBITDA was $149 7 million or negative $1 $3 million when excluding the $151 million of insurance proceeds received in the third quarter of 2022.
Year to date adjusted EBITDA, excluding insurance proceeds is $59 $1 million, an increase of 86% over the same period last year.
Speaker 4: Year-to-date, a Judged EBITDA excluding insurance proceeds is $59.1 million. An increase of 86 percent over the same period last year.
Speaker 4: Third quarter free cash flow, excluding insurance proceeds, was $2.7 million, compared to an outflow of $0.1 million in the prior year quarter.
Third quarter free cash flow, excluding insurance proceeds was $2 $7 million compared to an outflow of zero point $1 million in the prior year quarter.
Speaker 4: Turning to expenses, third quarter SG&A was $41.6 million versus $48.7 million in the prior year quarter, reflecting the efficacy of our cost efficiency efforts even as we have added businesses through acquisitions. Note that SG&A in the third quarter of 2022 included $7 million of insurance settlement related expenses. Even so, we are pleased with the operating leverage we achieved in the quarter.
Turning to expenses third quarter, SG&A was $41 $6 million versus $48 $7 million in the prior year quarter, reflecting the efficacy of our cost efficiency efforts, even as we've added businesses through acquisitions note that SG&A in the third quarter of 2022.
<unk> included $7 million of insurance settlement related expenses, even so we are pleased with the operating leverage we achieved in the quarter.
Speaker 4: As for the balance sheet, we had $200.3 million in cash as of September 30, 2023, for a $204.7 million as of June 30th. After funding the $8.6 million dividend on our convertible preferred stock, our total liquidity is $310.3 million, including full availability on our $110 million credit facility.
As for the balance sheet, we had $203 million in cash as of September 32023 versus $204 $7 million as of June 30th after funding the $8 6 million dividend on our convertible preferred stock our total liquidity of $310 $3 million, including full availability.
<unk> on our $110 million credit facility.
We believe our balance sheet strength and cash flow generation support our ability to opportunistically invest in and grow our business. We will continue to balance capital allocation between acquisitions investments in our own business managing debt leverage and opportunistic share buybacks on that note on Friday.
Speaker 4: We believe our balance sheet strength and cash flow generation support our ability to opportunistically invest in and grow our business.
Speaker 4: We'll continue to balance capital allocation between acquisitions, investments in our own business, managing debt leverage, and opportunistic share buybacks. On that note, on Friday, our board authorized the expansion of our share buyback program to $25 million versus the $3 million remaining on the previous authorization and the extension of the program to December 31, 2024.
Our board authorized the expansion of our share buyback program to $25 million versus the $3 million remaining on the previous authorization and the extension of the program to December 31 2024.
Speaker 4: As of September 30th, we had a net debt of $214 million dollars, leading to a net leverage ratio as defined in our credit agreement of 2.42 times our trailing 12-month consolidated EBITDA based on the definition in our credit agreement of $88.5 million dollars.
As of September 30th we had net debt of $214 million, we didn't do a net leverage ratio as defined in our credit agreement of 2.42 times, our trailing 12 months consolidated EBITDA.
EBITDA based on the definition in our credit agreement of $88 $5 million.
Speaker 4: As of July 1st, the company now has the right, quarter by quarter, to choose to pay the quarterly dividend of her convertible preferred stock in cash or PIP.
As of July 1st the company now has the right quarter by quarter to choose to pay the quarterly dividend of our convertible preferred stock in cash or Pik.
Speaker 4: Prior to July 1st, we were required to pay in kind. As we noted before, announced on the second quarter earnings call, given the conversion price of the convertible preferred stock of $3.52 as compared to the current share price, the independent members of our board approved management's decision to pay the September 30th payment in cash. The total payment for the third quarter was $8.6 million, which means we avoided the issuance of 2.4 million shares on an as-converted basis.
Prior to July 1st we were required to pay in kind as we noted before announced on our second quarter earnings call given the conversion price of the convertible preferred stock and $3.52 as compared to the current share price. The independent members of our board approved management's decision to pay the September 30th payment in cash.
The total payments in the third quarter was $8 $6 million, which means we avoided the issuance of two 4 million shares on an as converted basis.
Speaker 4: This is an option we will carefully consider in our capital allocation analysis going forward. Notably, for the fourth quarter, the independent directors on our board have again authorized a convertible preferred dividend in December to be paid in cash thereby minimizing dilution of our carbon shares. .
This is an option we will carefully consider in our capital allocation analysis going forward, notably for the fourth quarter. The independent directors on our board has again authorized the convertible preferred dividend in December to be paid in cash, thereby minimizing dilution of our common shares.
Speaker 4: With respect to our capital structure, an overview can be found on the slide 11 of our earnings presentation deck. Factoring in 62.9 million of common shares outstanding at September 30th, and then additional 139.9 million common shares represented by the convertible preferred shares as of September 30th. Our total share count on an as converted basis would be 202.8 million. 8 million.
With respect to our capital structure and overview can be found on slide 11 of our earnings presentation deck factoring in $62 9 million of common shares outstanding at September 30th and an additional $139 9 million common shares represented by the convertible preferred shares as of <unk>.
Timber 30th our total share count on an as converted basis would be $202 8 million $8 million.
Speaker 4: Excuse me, 202.8 million. Based on Friday's closing price, this equates to a market cap of $1.1 billion on an as converted basis. Adding in our net debt, estimated contingent consideration of $6.8 million on our balance sheet for prior acquisitions, and a deferred tax asset worth approximately $70 million. This leads to an enterprise value of approximately $1.2 billion.
Excuse me $202 8 million based on Friday's closing price this equates to a market cap of $1 $1 billion on an as converted basis, adding in our net debt estimated contingent consideration of $6 $8 million on our balance sheet for prior acquisitions, and a deferred tax asset worth approximately $70 million.
This leads to an enterprise value of approximately $1.2 billion.
Speaker 4: in our full year guidance for 2023 at Survey Disgust. Okay?
In our full year guidance for 2023 AD survey discussed.
Yeah.
Speaker 4: We see modest risk to our original estimate, largely based on some weakness in our content business, resulting from a pullback in customers' ad spend in the technology sector, as well as deferral of a planned new event launch into 2024.
We see modest risk to our original estimate largely based on some weakness in our content business, resulting from a pullback in customers AD spend in the technology sector as well as deferral of a planned new event launch into 2024.
Speaker 4: As a result, we now expect revenue for the full year to come in between $385 and $395 million.
As a result, we now expect revenue for the full year to come in between 385 and $395 million.
Speaker 4: Given the strength of our core trade-chode business, this guidance still reflects an increase of between 18% and 21% over last year.
Given the strength of our core Tradeshow business. This guidance still reflects an increase of between 18% and 21% over last year.
Speaker 4: We also now expect adjusted EBITDA in the range of $95 to $100 million, reflecting continued strength and margin improvements in our overall business.
Excuse me.
We also now expect adjusted EBITA in the range of $95 million to $100 million, reflecting continued strength in margin improvement in our overall business.
Speaker 4: Our adjusted EBITDA guidance represents an increase of between 67% and 76% over 2022 adjusted EBITDA, excluding insurance proceeds.
Our adjusted EBITDA guidance represents an increase of between 67% and 76% over 2022 adjusted EBITDA excluding insurance proceeds.
Speaker 4: This guidance implies an adjusted EBITDA margin of approximately 25%. And we believe we have runway to improve this number as we work our way back to the 35% plus margins we saw prior to code.
This guidance implies an adjusted EBITDA margin of approximately 25% and we believe we have runway to improve this number as we work our way back to the 35% plus margins we saw prior to Covid.
Speaker 4: Thank you very much for your time and with that we will now open the line for questions.
Thank you very much for your time and with that we'll now open the line for questions.
Speaker 1: Thank you and I'll be conducting a question and answer session. If you'd like to be placed in the question queue, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 if you'd like to move your question from the queue.
Thank you will now be conducting a question and answer session if you'd like to be placed in the question queue. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question queue. You May press star two if you'd like to move your question from the Q1 moment. Please while we poll for questions. Our first question.
Speaker 1: Our first question today is coming from Barton Crockett from Rosenblatt. Your line is now live.
Today is coming from Barton Crockett from Rosenblatt. Your line is now live.
Speaker 5: Great. Thanks for taking the question. I was curious about one other thing you guys were talking about on guidance, which was free cash flow. I think you had been formally saying that you saw 65 million or so of free cash flow excluding working capital benefits in 2023. And I was just wondering if there's any update about that with the guidance revision here.
Okay, great. Thanks for taking the question.
I was curious about one other thing you guys were talking about on our guidance.
Guidance, which was free cash flow I think you had been formally saying that you saw a $65 million or.
So our free cash flow, excluding working capital benefits in 2023 and.
I was just wondering if there's any update about that with the guidance revision here.
Speaker 4: Sure. Thanks, Barton. Our prior guidance was over 60 million prior to working capital. Now I think with the with the moderate risk on EBITDA, we're looking at something between 50 and 60 million now for 2023.
Oh sure. Thanks Barton.
Prior guidance was with over 60 million a proud of working capital now I think with the with the moderate risk on EBITDA, we're looking at something between 50 and $60 million now for 2023.
Okay.
Speaker 5: And then, you've spoken to your application for double-digit growth in 2024. And obviously we've had a little bit of a guidance hiccup here, but...
And then.
You know you've spoken to your your expectation for double digit growth in 2024, and you know obviously, we've had a little bit of a guidance hiccup here, but can.
Speaker 5: Can you talk about what visibility you have into 2024? I know you talk about that as an advantage of this model. I was wondering if you could detail a little bit more what underlies your expectation for double-digit growth next year.
Can you talk about what visibility you have into 2024 I know you talk about that as an advantage of this model and I was wondering if you could detail a little bit more what underlies your expectation for double digit growth next year.
Yes, given that Barton. This is herve. Thanks for the question given the events are 85 plus percent of the company and we have the strong visibility into our into pacings are particularly strong visibility into Q1 and H one events.
Speaker 3: Yeah, given that, Barton, this is Herve, thanks for the question. Given that events are 85 plus percent of the company and we have this strong visibility into pacing, particularly strong visibility into Q1 and H1 events.
Speaker 3: We are seeing that a very large number, and we're not going to get into the details of the brands, but a very large number of the brands have sold a majority of what they need to sell to meet our internal forecast for 2024. And that's where we're seeing continued double-digit increase year on year.
We are as we are seeing.
That's a very large number and we're not going to get into the details of the brands, but a very large number of their brands.
Have sold a majority of what they need to sell to meet our our internal forecast for 2024, and that's where we're seeing continued double digit increase.
The increase year on year.
Okay, Alright, that's encouraging and then just on the advertising exposure here, which is something that we hadn't really thought much about with you guys.
Speaker 5: All right, that's encouraging. And then just on the advertising exposure here, which is something that we hadn't really thought much about with you guys.
Speaker 5: I know you said it's contained within the other revenue line, which I think was other marketing services, which was $30 million or so last year.
I know you said it's contained within the other revenue line, which I think was on the marketing services, which was $30 million or so last year.
Speaker 5: And can you detail a little bit more specifically what it is that that revenue has derived from? And, you know, and I know you said there are two things, results of that and an event that was deferred into 2024.
And could you detail a little bit more specifically what it is that that revenue is derived from and you know and I know you said there were two things ourselves so that in and out of that that was deferred into 2024.
Speaker 5: Um, you know, given that that line was only 30 million last year and the variance here is 15 million.
You know given that that line was only $30 million last year and the very insurance 15 million.
Speaker 5: It seems like that other event might be a notable portion, so I was wondering if you could give us a little bit more detail around that.
It seems like that other are that might be a notable portion. So I'm wondering if you could give us a little bit more detail around that as well.
Speaker 4: Sure. So the event that got pushed out and it was a new launch that we were expecting in the low single digit millions of revenue. So it's a smaller amount of the impact, which is why we're emphasizing more on the content side.
Sure. So the event that got pushed out or was a new launch that we were expecting in the low single digit millions of revenue. So it's just a smaller amount of the impact which is why we're emphasizing more on the content side.
Speaker 4: The content business, admittedly, we had high hopes for improvement in that business in the year, and so our budget and our forecast was for meaningfully more than
The content business is admittedly, we had we had high hopes for improvement in that business in the year and so our budget and our forecast was for meaningfully more than that $30 million that you're talking about a $30 million range and the other marketing services line ultimately as the year progressed.
Speaker 4: the $30 million that you're talking about or $30 million range in the other marketing services line. Ultimately, as the year progressed, particularly in the technology sector, which took a pretty hard hit this year, we were unable to get close to what our budget was and led to the change in our revenue forecast for the year.
Early in the technology sector, which took a pretty hard hit this year, we were unable to get close to what our budget was in and led to the change in our revenue forecast for the year.
Okay, Alright, that's helpful. Thank you very much.
Thank you.
Yeah.
Speaker 1: Thank you. Next question today is coming from Alan Clee from Maxim Group Relive. Is that live?
Thank you next question today is coming from Allen Klee from Maxim Group. Your line is that life.
Yeah.
Speaker 6: I own. Yes. Good. Good morning. Just a definitional question.
I am yes.
Morning, Okay, just a definitional question you.
Speaker 6: Your segments changed from commerce, design, creative and tech and all other now.
Your segments changed from a commerce design creative and Tech and all other now.
Speaker 6: I think it's trade shows, other events, subscription software and services and other marketing services. Could you tell us like what went into where?
I think it's trade shows other events subscription software and services and other marketing services could you tell us like what went into where.
Yeah.
Speaker 4: Just to be clear, our segments have not changed.
I'm, just just to be clear our segments have not changed.
Speaker 4: Although we are evolving them likely at year-end, and there's some language in the 10-Q around that, you're looking at the disaggregated revenue section. We've disclosed that for a long time to give...
Though we are evolving them likely at year end and there was some language in the 10-Q around that.
You're looking at the Disaggregated revenue section, we've disclosed that for for a long time to give a greater cover a greater color on the source of our revenues by product we sell so trade show and other events Tradeshows are pure trade shows other events or conferences.
Speaker 4: a greater cover, a greater color on the source of our revenues by product we sell. So trade show and other events, trade shows are pure trade shows. Other events are conferences and other smaller marketing type events that we hold for many of our brands.
And other smaller marketing type events that we hold for many of our brands are the subscription software and services are our subscription products.
Speaker 4: The subscription software and services are subscription products.
Speaker 4: largely in that is elastic, but also our subscription education products, which is a much smaller piece.
Largely in that is elastic, but also our subscription education products, which is a much smaller piece that we have and then our other marketing services is generally are the media and content business.
Speaker 4: that we have and then other marketing services is generally the media and content business.
Speaker 4: but it's only the revenue disclosed. The full segment disclosure, including P&Ls, have not changed from before. Okay, thank you.
But it's only the revenue disclosed the full segment disclosure, including P&l's have not changed from before.
Okay. Thank you Hum.
Or.
Speaker 6: Media content are there any is there anything you could that you're trying to do proactively to to improve the
Media content or are there any is there anything you could sit there trying to do proactively too.
To improve the results there.
Speaker 3: Absolutely. And about a year ago, we've hired, we've made some changes where we...
Absolutely.
About a year ago.
We've hired we've made some changes where we separated.
Speaker 2: separated our content and our media business from our trade show business. So that was the first step of really creating a standalone media and content business. We've hired leadership across a number of areas, someone to head up the entire unit, but also a editor in chief and a head of marketing and a head of sales. All those hires were done Q1, I believe, of this year.
Separated our contents in our media business from our Tradeshow business. So that was the first step of really creating a standalone media and content business. We've hired our leadership across a number of areas somewhat to head up the entire unit, but also a editor in chief and head of marketing and a head of sales.
All of those hires were done Q1, I believe of of this year.
Speaker 2: And so, our goal here is to be less reliant on advertising spend actually, and to transform and to convert that business from an advertising driven model to a more lead generating model. And we are just at the beginning of that transition, but we are optimistic that we will continue to make progress. I would like to also mention that if you look at the entire content and media business,
And and so our goal here is to be less reliance on advertising spend actually add to transform and to convert that business from an advertising driven model to a more lead generating.
<unk> model and we are adjusted at the beginning of that transition, but we're optimistic that we'll continue to make make progress I would like to also mentioned that if you look at the entire content and media business a while we have talked about the softness in the tech sector. There there are many other sectors because our media.
Speaker 3: While we have talked about the softness in the tech sector, there are many other sectors because our media properties are...
Our properties are support the sectors that we offer a trade shows and the other sectors are meeting.
Speaker 3: support the sectors that we operate trade shows in. And the other sectors are meeting and are hitting the goals that we have for that business. So it's really largely the tech sector that is impacted. But things like the food sector.
Are hitting.
The goals that we have for that business. So it's really the largely the tech sector that is that is impacted but things like that.
The food sector.
Speaker 2: and designing construction, which is a big one, and so forth, are on track.
And designing design and construction, which is a big one and so forth are on track.
Okay.
Thank you art.
Speaker 6: In terms of lead generation offerings, do you think that could happen in 2024?
In terms of lead generation offerings.
Do you think that could happen in 2024.
Speaker 3: I absolutely do. We just launched, for instance, a newsletter for small businesses that cross all of the different sectors, and in a very short amount of time, we've built a significant database for them. And we're very proud of it. We're very proud of it.
I absolutely do we just launched for instance, a a.
A news newsletter for small businesses that cross all of the different sectors and in a very short amount of time, we've built a significant database.
Speaker 2: with hundreds of thousands of people signing up for it, which allows us to really start building this business. So, it'll take some time. We see the continued evolution of that business over the course of the next few years, but we will see some progress in 24 for sure.
With hundreds of thousands of of of of Av.
Of people signing up for it which allows us to really start building. This business. So we know it'll take some time.
We don't we don't see it.
We don't see it we don't we see the continued evolution of that business over the course of the next few years, but we will see some progress in 'twenty four for sure.
Speaker 4: Yeah, Alan, one of the things that I think is important to keep in mind is, as Hervé indicated,
Yeah.
Well one of the things that I think is important to keep in mind.
Is as survey indicated.
Speaker 4: Not only was there weakness in advertising budgets this year, and I think you're probably well aware of that.
Not only was there weakness in advertising budgets this year and I think.
You're probably well aware of that.
Speaker 4: given what's gone on with a lot of other players in the space, ad agencies or other media companies that are exposed to the tech sector. But we're in the middle of substantial change in that unit.
Given what's gone on with a lot of other players in the space are AD agencies or other media companies that are exposed to the tech sector, but we're in the middle of a substantial change in that unit.
Speaker 4: and maybe it wasn't the ideal time side-by-side, but you gotta do what you gotta do for the business to set it up for the future. But we went through a change in the sales force by separating the sales teams from the...
And you know.
Maybe it wasn't the ideal time side by side, but you Gotta do what you Gotta do for the business to set it up for the future.
But we went through a change in the sales force by separating the sales teams from the events.
Speaker 4: and into a more dedicated media and content unit. We created a central newsroom so that all of our editors and reporters weren't operating independently and we can get leverage.
And into a more dedicated.
Media and content unit.
We create.
Created a central newsroom, so that all of our editors and reporters Werent operating independently and we can get leverage we began to leverage the consolidated database that survey indicated by launching new products against it it's pretty.
Speaker 4: We began to leverage the consolidated database, as survey indicated, by launching new products against it. It's pretty.
Speaker 4: pretty stunning to us because it's not something Emerald had ever done before, but to stand up a new content product and within a few weeks.
Pretty stunning to us because it's not something emerald had ever done before but to stand up a new content product and within a few weeks have almost 300000 subscribers to that product that horizontal cuts across all of our sectors. As an example, and there's massive opportunity then.
Speaker 4: have almost 300,000 subscribers to that product that horizontally cuts across all of our sectors.
Speaker 4: as an example. And there's massive opportunity then as we continue to refine the new approach to then monetize at a much higher level and in a much more consistent level with a bigger focus on leads.
As we continue to refine the new approach.
To then monetize at a much higher level.
And in a much more consistent level with the bigger focus on leads and so while it's a disappointing year in the financial results of that business. It was actually a very successful year in the transformation of that business and we're really excited about the prospects of what that could mean in 2024 and 25 and beyond.
Speaker 4: And so while it's a disappointing year in the financial results of that business.
Speaker 4: It was actually a very successful year in the transformation of that business, and we're really excited about the prospects of what that can mean in 2024 and 2025 and beyond.
Speaker 6: Thank you. Could you provide an update on your software business in terms of...
Thank you can you provide an update on your software business in terms of.
Speaker 6: Plans of expanding that to new verticals and how you're thinking about the.
Plans of expanding to new verticals and how you're thinking about the.
Speaker 6: that's shifting to profitability over time.
That shifting to to profitability overtime.
Absolutely so.
Speaker 3: Absolutely. So the trends are similar to what we have shared in the past.
The trends are similar to what we have shared in the past, we still see an average of $1 billion per month in gross merchandise value going through our platforms.
Speaker 2: see an average of a billion dollars per month in gross merchandise value going through our platforms. We grew our customer base by 30% year on year.
We grew our customer base by 30% year on year or customer net revenue retention rate is at 110%. So we're seeing some very strong metrics around retention or an acquisition of new customers and while we weren't we are not going to give the details.
Speaker 2: Our customer net revenue retention rate is at 110%, so we're seeing some very strong metrics around retention, around acquisition of new customers, and while we are not going to give the details of our expansion into other sectors.
<unk> of our expansion into other sectors are I will say that we have made some very good progress with our with assigning with recent signings and and others that are.
Speaker 3: I will say that we have made some very good progress.
Speaker 3: with recent signings and others that are in the works to really penetrate new sectors from the ones that we're in today, but today's not the day to announce that.
That are in the works to really penetrate new sectors from the ones that were in today, but today is not the day to to announce that.
Speaker 6: Great, thank you. In your trade show business, I think last quarter you talked about around
Great. Thank you.
In your trade show business I think last quarter, you talked about around.
Speaker 6: being at around 80% of where you had been.
E being at around 80% of.
Where you had been.
Speaker 6: I'm just wondering, could you just give a comment on where you feel the attendance and the amount of exhibitors are and how you're thinking about pricing and the opportunity to, you know, what pricing has gone up and what the opportunity potentially increases in the future?
And just wanted to ask could.
Could you just give a comment on where you feel the attendance and the amount of exhibitors are in and how youre thinking about pricing and the opportunity to.
You know what pricing has gone up and what the opportunity to potentially increase it and in the future.
Speaker 4: So the numbers we gave last quarter were our expectations for the year. And so that hasn't changed generally on attendance and revenues versus the pre-pandemic period. So those numbers are consistent with our expectations.
So the numbers, we gave out last quarter were our expectations for the year and so that hasnt changed generally on.
On attendance and revenues.
Versus.
The pre pandemic period. So so those numbers are consistent with our expectations.
Yeah.
And the the.
Speaker 4: The volatility on the guidance is related to the content side, not the event side, so it doesn't change that progression that we spoke about before. We continue to see strong improvements in our
Tony on the on the guidance is related to the content side not the events side. So it doesn't change that progression.
That we spoke about before we continue to see.
Our strong improvements in our overall yield.
Speaker 4: We're pushing kind of 9-10%.
We're pushing kind of 910% increases.
Speaker 4: increases year over year right now in yield in 2023. We surely expect that to moderate a little bit as we go forward, but we have a very significant focus.
Increases year over year right now in yield than in 2023.
Do you expect that to moderate a little bit as we go forward, but we have a very significant focus on pricing here, we've talked before about creating.
Speaker 4: on pricing here. We've talked before about creating the centralized and dedicated
Our centralized and dedicated pricing function that bring science the pricing.
Speaker 4: pricing function that brings science to pricing, that allows us to think about pricing to value.
That allows us to think about pricing to value.
Speaker 4: and optimize overall yield. And so when you think about optimizing overall yield, it becomes more of a function of a
And optimize overall yield.
And so when you think about optimizing overall yield it becomes more of a function of them.
Yeah.
Speaker 4: Where have we delivered more value to our customers? How do we...
Where have we delivered more value to our customers how do we.
Speaker 4: price against that value, so we get credit for it. Some areas may not have price increases, some areas may have prices go down, but an aggregate overall yield is going up because customers are doing business with us.
Against that value. So we get credit for it some areas may not have price increases some areas may have prices go down but in aggregate overall yield is going up because customers are doing business with us on the terms that they want to do business with us there they are buying the products and services.
Speaker 4: uh... on the terms that they want to do business with us there they're buying the products and services
Speaker 4: and assigning value to those products and services, and we could price against that value. And so we've made some really strong strides, a little bit of catch-up, admittedly in 23, relative to what was being done before, but surely think that it's a mid-single-digit opportunity for us annually going forward in optimizing the yield that we get out of our products and services.
And assigning value to those products and services and we could price against that value and and so we've made some some really strong strides a little bit of catch up immediately and in 'twenty three.
Relative to what was being done before but surely think that it's a mid single digit opportunity for us annually going forward.
In optimizing the yield that we get out of our products and services.
Yeah.
Speaker 6: Thank you. I know that one of the comments that I was really impressed by during advertising week and the panel that Harvey was on, which was shared by the participant in a trade show for kitchen and bath type appliances, was that the size of the kitchen and bath events was greater than CES.
Thank you I know that one of the comments that I was really impressed by doing advertising week in the panel that everybody was on live which was shared by the <unk>.
Uh huh.
Discipline in our trade show for kitchen and.
Beth type appliances was that the.
Number of attendance.
Size of the kitchen, and Bath events was greater than E. S.
Speaker 6: and I guess I didn't appreciate how valuable for industries what you guys can do.
And.
I guess I didn't appreciate like what.
How valuable for for certain for industry is what you guys can do.
And so the whole.
Speaker 6: And then I know I get emails almost every day from Advertising Week from attending it. So if you could just, my last question is kind of related to, as you're pushing to try to be,
And then I know I get emails almost never could take from advertising week from attending it. So if you could just my last question is kind of related to as you are pushing to try to be you know.
Speaker 6: touching the customers every single year, all year round and get them more engaged. Could you talk a little about what you're actually doing to do that and the potential benefits from it? Thank you.
Touching the customers every single all year round and get them more engaged but could you talk a little about.
What you're actually doing to to do that and the potential benefits from it. Thank you.
Speaker 3: Sure. On the CS comment, I didn't make that comment. I think that the person on stage did. I have not compared our performance to CS's, but it was an interesting comment. In terms of what we're doing on a 365-day year engagement, this goes back...
Sure.
The CX comment I Didnt make that comment I think the personal savings Tonight I have not.
I have not compared our performance to see s's, but.
It was an interesting comment on.
In terms of what we're doing on a 365 day year engagement.
This goes back to one of our key growth pillars of $3 65 day engagement, where are what we have is this unique and incredible platform of events that we can leverage with our with people that are attending events that are looking to discover new and sellers are looking to get.
Speaker 2: to one of our key growth pillars of 365-day engagement, where
Speaker 2: What we have is this unique and incredible platform of events that we can leverage with people that are attending events.
Speaker 2: that are looking to discover new and sellers are looking to get more leads. And we take that and then the content business, as I mentioned, is evolving into more of a lead generating engine for our customers where not only will they get leads at the events as we're now doing at most of our large trade shows, but now they will also get them through the content business on a year-round basis. And then we can close the loop through the marketplace. That gives us an incredible amount of data.
More leads and we take that and then the content business as I mentioned is evolving into more of a lead generating engine for our customers where not only will they get leads and the events as we're now doing at most of our large tradeshows, but now they will all.
Also get them through the content business on a year round basis, and then we can close the loop through the marketplace that gives us an incredible amount of data that compares what people are interested in who they're seeing through the matchmaking, what whether what leads there theyre getting both at the events.
Speaker 2: that compares what people are interested in, who they're seeing through the matchmaking.
Speaker 2: what leads they're getting, both at the events, but also through the content business, and then ultimately, what they're looking to buy, what they're looking to sell, as well as what's actually being bought and sold. And so, as you continue to build this ML platform, this richness of data will allow us to build more products and services on top. And we've hired, as I think we announced in the last quarter or two, a head of product to really help us.
But also to the content business and then ultimately what they're looking to buy what they are looking to sell.
What's actually being bought and sold and so as you continue to build the same old platform AR. The richness of data will allow us to build more products and services on top and we've hired as I think we announced in the last quarter or two ahead of product to really help us think and design new products.
Speaker 2: think and design new products that sit on top of this customer data hub that will continue to add value to our clients. So another one of the exciting developments that we've been building and investing in over the course of the last couple of years that will produce value to clients. And therefore, as David mentioned, our entire pricing strategy and philosophy is all around pricing for value.
Sit on top of this customer data hub, where that will continue to add value to our clients. So another one of the exciting exciting developments that we've been building and investing in over the course of the last couple of years.
That will that will produce value to clients and therefore as David mentioned, our entire pricing strategy and philosophy is all around pricing for value. So as we deliver value to our customers, we want to recapture that value and that is in essence the basis of how we monetize the.
Speaker 2: So as we deliver value to our customers, we wanna recapture that value, and that is in essence the basis of how we monetize the work that we've been doing.
The work that we've been doing.
That's great. Thank you so much.
Thank you.
Speaker 1: Thank you. Next question today is coming from Sami Kassab from BNP Parabyte. Your line is now live.
Thank you next question today is coming from Sami Kassab from BNP Paribas. Your line is now live.
Speaker 7: All right, Sammy. Thank you. Good morning. Have a good morning, David.
Hi, Thank you good morning.
David.
Yeah.
Speaker 7: Two questions, if I may, please. The first one, you talked about pricing to value. You talked about mixing digit annual contribution from pricing.
Two questions. If I may the first one you talked about pricing to value you talked about a mid single digit and contribution from our pricing.
Speaker 7: take a mid-term outlook can we can we discuss how much
If you take can meet them or can we oh can we discuss how much.
Speaker 7: volume growth we may add on top of the mid-single-digit pricing and how much contribution from
Volume growth.
On top of the mid single digit pricing and how much contribution from new show launches.
Nicole's characteristic of the company.
Speaker 8: in the great characteristics of the company, please.
And secondly.
Speaker 8: Can you comment on labor cost inflation and how difficult it may be to recruit people? And whether you see the pressure easing into next year?
Can you comment on labor cost inflation, and how difficult maybe to recruit people.
And whether you see the pressure.
Into next year.
And perhaps whether profit margins may benefit from lower labor cost inflation in the U S rights for industry. Thank you yeah very.
Speaker 8: benefit from lower labor cost inflation in the U.S. wage range.
Speaker 3: Very good question. So let me.
Very good question, So let me.
Speaker 3: Let me try and take each one of the questions. So in terms of our growth, and speaking in very general terms, we see our growth in the midterm to be roughly half and half coming from our volume growth and our yield and pricing growth.
Let me try and take each one of the questions. So in terms of our growth and speaking in very general terms, we see our growth in the midterm to be roughly half and half coming from our volume growth and our and our and our yields and price.
<unk> growth. So that's how we're looking at the construct of our of our growth plan in terms of launches, we expect somewhere between 1% to 2% revenue grow organic revenue growth from our launch activities and.
Speaker 3: So that's how we're looking at the construct of our growth plan.
Speaker 3: In terms of launches, we expect somewhere between 1-2% organic revenue growth from our launch activities.
Those are you know from some of the launches that we've discussed today and others that you've heard about launched.
Speaker 3: Those are, you know, from some of the launches that we've discussed today and others that you've heard about, we've launched a number of events over the course of the last two years that will continue to provide us with one to two percent organic growth.
A number of events over the course over the last two years that that will.
Continued to to provide us with a 1% to 2% organic growth.
Speaker 3: And in terms of your very good question on cost of labor and recruiting, the environment has definitely been much better of late than it has been in the past.
And and in terms of your very good question on <unk>.
On cost of labor and and recruiting.
Environment has definitely.
Ben much better of late than it has been in the past.
Speaker 3: And so we find it easier to recruit for a couple of reasons. I think the market in general has improved, but also the value proposition and where we've positioned emerald in the industry makes it exciting for people to join and to help us.
So we find it easier to recruit for a couple of reasons I think the market in general has has improved but also the value proposition and where we've positioned emerald in the industry makes it exciting for people to join and to help us.
Speaker 2: Achieve the goals and objectives that we have so a combination of our value proposition and the market easing has certainly Benefited us and as a result We we are going to see
Achieve the goals and objectives that we have so a combination of our value proposition in the market easing has certainly benefited us in as a result, we we are going to see it.
Speaker 3: some easing of the cost of labor, particularly versus last year.
See some easing of you know of the cost of labor, particularly versus last year.
Fantastic many thanks gentlemen.
Thank you Sami.
Okay.
Speaker 1: Thank you. We've reached the end of our question and answer session. I'd like to turn the floor back over to management for your further closing.
Thank you reach end of our question answer session I'll turn the floor back over to management for any further or closing comments.
Speaker 2: Very good. Well, thank you all for joining. And in conclusion, we remain maniacally focused on the three pillars of our growth strategy through value creation. So those are customer centricity, 365-day engagement, and portfolio optimization.
Very good well. Thank you all for joining and in conclusion, we remain maniacally focused on the three pillars of our growth strategy through value creation. So those are customers interested the 365 day engagement and portfolio optimization, we continue to see strong performance results.
Speaker 2: We continue to see strong performance resulting in year-to-date revenue growth of 21% year-over-year and adjusted EBITDA increase of over 85% versus prior year.
In year to date revenue growth of 21% year over year, and adjusted EBITDA increase of over 85%.
Versus prior year and looking forward are as I mentioned, our 2024 sales pacing data gives us a great deal of confidence in our ability to deliver double digit top line growth into next year with strong operating leverage I would like to take this opportunity to thank all of the incredible people at Emerald who are doing.
Speaker 2: And looking forward, as I mentioned, our 2024 sales spacing data gives us a great deal of confidence in our ability to deliver double-digit top-line growth into next year with strong operating leverage.
Speaker 2: I would like to take this opportunity to thank all of the incredible people at Emerald who are doing such amazing work to help us continue to evolve our platform and our business and grow our business. And with that, I thank you all very much for joining our call this morning. Goodbye.
Such amazing work to help us continue to evolve our platform and our business and grow our business and with that I. Thank you all very much for joining our call. This morning.
Goodbye.
Speaker 1: Thank you. That does conclude today's teleconference and we disconnect your line at this time and have a wonderful day. We thank you for your participation.
Thank you that does conclude today's teleconference. You may disconnect. Your lines at this time and have a wonderful day, we thank you for your participation today.
Yes.