Q1 2024 Emerald Holding Inc Earnings Call

Operator: Good morning, and welcome to the Emerald Holding Incorporated First Quarter 2024 Earnings Conference Call. At this time, all lines are in the listen-only mode.

Good morning, and welcome to the Ambarella Holdings incorporated first quarter 'twenty 'twenty four earnings conference call. At this time all lines are in a listen only mode. Following the presentation. We will conduct a question and answer session. If at any time during this call you acquire immediate assistance.

Operator: Following the presentation, we will conduct a question and answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. Before we begin, let me remind everyone that this call will include certain statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These include remarks about future expectations, beliefs, estimates, plans, and prospects. In particular, the company's statements about projected results for 2024 are forward-looking statements.

Please press star zero for the operator.

Operator: 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 discussed in the company's most recent filed periodic reports in Form 10-K and Form 10-Q and subsequent filings. The company does not undertake any duty to update such forward-looking statements. Additionally, during this call, management will discuss non-GAAP measures which it believes can be useful in evaluating the company's performance.

Before we begin let me remind everyone that this call will include certain statements that constitute forward looking statements within the meaning of the private Securities Litigation Reform Act of 1995. This includes remarks about future expectations beliefs estimates plans and prospects in <unk>.

The company's statements about projected missiles for 'twenty 'twenty four are forward looking statements such statements are subject to a variety of.

Uncertainties and other factors that could cause actual results to differ materially from those indicated or implied by such statements such risks and other factors are forth in the company's most recently filed for exotic reports in Form 10-K, and Form 10-Q, and subsequent filings the company does not undertake.

Any duty to update such forward looking statements. Additionally, during this call management will discuss non G. A a P 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 assault.

Operator: The presentation of this additional information should not be considered in isolation or as a substitute for results prepared in accordance with US GAAP. The reconciliation of these non-GAAP measures to the most comparable GAAP measure can be found in the company's earnings release. As a reminder, this conference call is being recorded, and a replay of this call will be available on the Investors section of the company's website through 11.59 p.m. Eastern Time on May 14. I'd now like to turn the call over to Mr. Herve Sedky, President and Chief Executive Officer. Sir, please go ahead.

It's prepared in accordance with U S. G. A a P.

Conciliation of this non G. A a P measures to the most comparable G. A a P measure can be found in the company's earnings release.

Herb Asher: A reminder, this conference is being recorded and a replay of this call will be available on the investors section of the company's website through 11 59 P. M. Eastern time on May 14th I'd now like to turn the call over to Mr. Her base had key president and Chief Executive Officer, Sir. Please go ahead.

Herve Sedky: Well, thank you Evo and good morning, everyone. It's great to be with all of you today to discuss our first quarter I'll start as usual with a review of our performance and then give an overview of our strategy and then David Doctor CFO will then provide more detail on our financials.

Herve Sedky: Well, thank you, Ivo, and good morning, everyone. It's great to be with all of you today to discuss our first quarter. I'll start, as usual, with a review of our performance and then give an overview of our strategy, and then David Doft, our CFO, will then provide more detail on our finances. 2024 is off to a strong start, driven by our unwavering commitment to customer centricity and year-round engagement. This focus has not only fueled early rebookings into 2025 but has also provided us with excellent forward visibility into our revenue trajectory.

Herve Sedky: 'twenty 'twenty four is off to a strong start driven by our unwavering commitment to customer Centricity and year round engagement. This focus has not only fueled early re bookings into 'twenty 'twenty five but it has also provided us with excellent forward visibility into our revenue trajectory.

Herve Sedky: In the first quarter alone, we hosted successful shows with record attendance in some of our strongest categories, including KBiz, our kitchen and bath show, Prosper, the largest gathering of Amazon and other marketplace sellers, and the International Pizza Expo, serving thousands of American pizzerias and their wholesale ingredients and equipment suppliers. Our positive trends in attendee and exhibitor counts, square footage, and pricing are all products of the exceptional value and ROI we provide to our customers for their marketing budget. For many businesses, trade shows are their number one selling or marketing event of the year.

Herve Sedky: In the first quarter alone we hosted successful shows with record attendance and some of our strongest categories, including Cape is our kitchen, and Bath show Prosper the largest gathering of gathering of Amazon and other marketplace sellers and the international Pizza Expo serving thousands.

Herve Sedky: Of American pizzerias in their wholesale ingredients and equipment suppliers.

Herve Sedky: Our positive trends in attendee and exhibitor counts square footage and pricing are all products of the exceptional value in ROI, we provide to our customers for their marketing budgets.

Herve Sedky: For many businesses trade shows or their number one selling or marketing event of the year and a big part of our ongoing efforts has been to highlight this value proposition and make the ROI more transparent by developing value added tools and metrics that we believe.

Herve Sedky: And a big part of our ongoing efforts has been to highlight this value proposition and make the ROI more transparent by developing value-added tools and metrics that we believe will deliver an even better trade show experience. The result is that our customers view our shows as an investment rather than a cost. Our goal is to continue to maximize value for our customers and shareholders, driving loyalty and not only a desire to return, but also a growing engagement between event editions over the course of the year. At all of our trade shows, we've implemented on-site pre-bookings, which means we are already selling exhibitor space into 2025.

Herve Sedky: <unk> will deliver an even better trade show experience. The result is that our customers view our shows as an investment rather than a cost. Our goal is to continue to maximize value for our customers and shareholders driving loyalty and not only a desire to return but also of <unk>.

Herve Sedky: Boeing engagements in between events additions over the course of the year.

Herve Sedky: And all of our trade shows we've implemented onsite pre bookings, which means you are already selling exhibitor space into 'twenty 25, our sales pacing data offers us a highly granular view into exhibitor trends up to a year out which gives us confidence in our forecast for 2012.

Herve Sedky: Our sales pacing data offers us a highly granular view into exhibitor trends up to a year out, which gives us confidence in our forecasts for 2024. Looking ahead, we project continued increases in exhibitor counts and revenue above our industry's historical run rate. In our content business, where we saw advertising budgets under pressure last year in certain end markets experiencing economy-related softness, we're beginning to see signs of stabilization.

Herve Sedky: Before looking ahead, we project continued increases in exhibitor counts and revenue above our industry's historical run rate.

Herve Sedky: In our content business, where we saw advertising budgets under pressure last year in certain end markets experiencing economy related softness we're beginning to see signs of stabilization in.

Herve Sedky: Importantly, we're seeing evidence in our forward bookings that our investments and the reorganization efforts are paying off. As an example, we recently launched the Small Business Exchange, our first content product spanning all of Emerald's industry portfolio and reaching a scaled audience of small businesses across all of our events. Since launching Small Business Exchange only a few months ago, it now has over 400,000 subscribers. In our commerce business, we continue to be delighted with the performance of Elastic Suites, our software-as-a-service offering for wholesale e-commerce transactions. From its origins in outdoor and action sports apparel and equipment, we've expanded Elastic into the kitchen and bath and indoor design categories, more than doubling its total addressable market.

Herve Sedky: <unk>, we're seeing evidence in our forward bookings that our investments and the reorganization efforts are paying off.

Herve Sedky: As an example were recently launched.

Herve Sedky: Launched a small business extinct change our first content product spending all of emerald's industry portfolio, and reaching a scaled audience of small businesses across all of our events since launching small business exchange only a few months ago. It now has over 400000 subscribers.

Herve Sedky: In our commerce business, we continue to be delighted with the performance of elastic suites, our software as a service offering for wholesale e-commerce transactions from its origins in the outdoor and action sports apparel and equipment, we've expanded elastic into the kitchen and Bath and indoor design.

Herve Sedky: <unk> more than doubling its total addressable market. We have also signed some large names as new customers that were announced at our cable show in February and led to a burgeoning pipeline for elastic in the category. Meanwhile, our bulletin platform is gaining traction.

Herve Sedky: We have also signed some large names as new customers that were announced at our KBiz show in February and led to a burgeoning pipeline for Elastic in the category. Meanwhile, our Bulletin platform is gaining traction, powering New York now online with hundreds of trade show exhibitors, leveraging the platform to engage with buyers both around the time of and after our trade show. Over time, we plan to leverage Bulletin to supplement the on-site experiences for many of our events to drive commerce throughout the year.

Herve Sedky: Faction powering Europe now online with hundreds of trade show exhibitors leveraging the platform to engage with buyers both around the time of and after our Tradeshow overtime, we plan to leverage bulletin to supplement the onsite experiences for many of our <unk>.

Herve Sedky: <unk> to drive commerce throughout the year.

Herve Sedky: Overall, as our guidance indicates, we expect another significant step forward in both revenue and profitability this year. Our longer-term plan is to deliver run-rate organic growth in the mid to high single digits, combined with growth from acquisitions in the mid to high single digits to contribute to double-digit annual revenue growth overall. May 2nd marked a significant milestone as we completed the conversion of all outstanding convertible preferred shares into common stock. This conversion eliminates a $34 million per year dividend that was only accruing to the benefit of the preferred holders and greatly simplifies our capital structure such that all equity holders can benefit from future value creation and cash flow generation.

Herve Sedky: Overall as our guidance indicates we expect another significant step forward in both the revenue and profitability. This year our longer term plan is to deliver run rate organic growth in the mid to high single digits combined with growth from acquisitions in the mid to high single digits to.

Herve Sedky: Tribute to double digit annual revenue growth overall.

Herve Sedky: My second marked a significant milestone as we completed the conversion of all outstanding convertible preferred shares into common stock.

Herve Sedky: This conversion eliminates a $34 million per year dividend that was only accruing to the benefit of their preferred holders and greatly simplifies our capital structure, such that all equity holders can benefit from future value creation and cash flow generation as we move forward our steadfast.

Herve Sedky: As we move forward, our steadfast focus remains on delivering consistent, profitable growth and building on the value of our irreplaceable portfolio of in-person events. The way we'll achieve these goals is by executing on the three pillars that underpin our value creation goals, customer centricity, 365 engagement, and portfolio optimization. In customer centricity, we are focused on improving the customer experience and delivering greater value in the form of add-on services, actionable data and insights, and a clearer picture of the return on investment customers receive from the marketing dollars they put to work across Emerald's platform.

Herve Sedky: This focus remains on delivering consistent profitable growth and building on the value of our irreplaceable portfolio of in person events.

Herve Sedky: The way we will achieve these goals is by executing on the three pillars that underpin our value creation goals customer centricity $3 65 engagements and portfolio optimization.

Herve Sedky: And customer Centricity, we are focused on improving the customer experience and delivering greater value in the form of add on services actionable data and insights and a clearer picture of the return on investment customers received from the marketing dollars. They put to work across Emerald's platform. This.

Herve Sedky: This improves our stickiness with customers, incentivizes them to deploy more marketing dollars with Emerald, and ultimately should help drive higher revenue per customer. In a 365-day engagement, we're providing multiple entry points into the customer engagement cycle through trade shows, conferences, webinars, media content, and our e-commerce platform. And in portfolio optimization, through our acquisitions and new event launches, we have targeted industries with strong, stable growth rates and product categories with recurring sales cycles.

Herve Sedky: Bruce our stickiness with customers incentivize them to deploy more marketing dollars with Emerald and ultimately should help drive higher revenue per customer is.

Herve Sedky: 365 day engagement, we're providing multiple entry points to the customer engagement cycle through trade shows conferences, Webinars media content and our e-commerce platforms.

Herve Sedky: And in portfolio optimization through our acquisitions and new event launches, we have targeted industries with strong stable growth rates and product categories with recurring sales cycles over time, we expect new event launches to contribute 1% to two percentage points of annual revenue growth.

Herve Sedky: Over time, we expect new event launches to contribute one to two percentage points of annual revenue growth. Lastly, on the personnel side, we're pleased to welcome our new general counsel, Sarah Altschul, who's joining Emerald next week following an impressive career as a general counsel in the advertising and travel sectors. Sarah is an outstanding addition to the executive team, and we look forward to working closely with her when she settles in. To conclude, we're pleased with our strong start in 2024, with the overall business tracking in line with our expectations through our value-added efforts and investments across our connections, content, and commerce businesses.

Herve Sedky: Lastly on the personnel side, we're pleased to welcome our new General Counsel, Sarah Ultra Who's joining Emerald next week following an impressive career as a general counsel in the advertising and travel sectors. Sarah is an outstanding addition to the executive team and we look forward to working closely with her.

Herve Sedky: When she settles in.

Herve Sedky: To conclude we're pleased with our strong start in 2024 with the overall business tracking in line with our expectations through our value added efforts and investments across our connections content and commerce businesses, we're positioning emerald to be a reliable free.

Herve Sedky: We're positioning Emerald to be a reliable, free cash flow generator and earnings compounder with attractive growth characteristics built in. We are very confident that we can sustain this trajectory and deliver meaningful growth in excess of our industry while enhancing our profitability year after year.

Herve Sedky: Free cash flow generator and earnings compounded with attractive growth characteristics built in we are very confident that we can sustain district trajectory and deliver meaningful growth in excess of our industry, while enhancing our profitability year after year and with that let me turn the call over to David.

David B. Doft: Thank you, Herve, and good morning.

David: Thank you everybody and good morning.

David B. Doft: Turning to our results for the first quarter, which is our seasonally largest quarter of the year, total revenue was $133.4 million, compared to $122.3 million in the prior year quarter. The increase was driven primarily by organic revenue growth, with a small contribution from acquisitions.

David: Turning to our results for the first quarter, which is our seasonally largest quarter of the year total revenue was $133 4 million compared to $122 3 million in the prior year quarter. The increase was driven primarily by organic revenue growth with a small contribution from acquisitions.

David B. Doft: Organic revenue for the connection segment, which takes into account the impact of acquisitions, scheduling adjustments, and discontinued events, was $118.6 million for the first quarter of 2024, an increase of $13.6 million, or 13% versus the prior year period. In the first quarter of 2024, we recognized $1 million of other income reflecting an insurance claim recovery tied to a virtual event during 2021 where our technology service provider had a disruption leading to a loss for Emerald. There are no other material insurance claims outstanding.

David: Organic revenue for the connection segment, which takes into account the impact of acquisition scheduling adjustments and discontinued events was $118 6 million for the first quarter of 2024, an increase of $13 6 million or 13% versus the prior year period.

David: In the first quarter of 2020, we recognized $1 million of other income, reflecting an insurance claim recovery tied to a virtual event during 2021, where our technology service provider had a disruption leading to our walk for example, there are no other material insurance claims outstanding.

David B. Doft: First quarter adjusted EBITDA excluding insurance proceeds grew 9% to $39.8 million compared to $36.5 million for the same quarter last year. This equated to an adjusted EBITDA margin of approximately 30% for the quarter. First quarter free cash flow, excluding event cancellation insurance proceeds, was $3.8 million, compared to $5.2 million in the prior year quarter. First quarter free cash flow is impacted by non-recurring costs related to acquisition integration and some restructuring charges. Turning to expenses, on a reported basis, first quarter SG&A was $55.5 million versus $48.8 million in the prior year quarter.

David: First quarter adjusted EBITDA, excluding insurance proceeds grew 9% to $39 8 million compared to $36 5 million for the same quarter last year. This equated to an adjusted EBITDA margin of approximately 30% for the quarter.

David: First quarter free cash flow excluding event cancellation insurance proceeds was $3 8 million.

David: Compared to $5 $2 million in the prior year quarter.

David: First quarter free cash flow was impacted by nonrecurring costs related to acquisition integration and some restructuring charges.

David: Turning to expenses on a reported basis first quarter, SG&A was $55 $5 million versus $48 8 million in the prior year quarter.

David B. Doft: The year-over-year increase is largely due to the impact of the acquisition of Hotel Interactive, which closed in January, and its expense related to recent changes to de-layer some of our senior leadership team, acquisition integration costs, and a $1.5 million increase in estimated contingent consideration payments for past acquisitions, which flows through the P&L at an expense, even though it will be purchase price when ultimately paid. We thought it would be helpful to briefly review our show calendar and seasonality, given some shifts in the timing of certain large shows in recent years, as well as our acquisition activities.

David: Year over year increase is largely due to the impact of the acquisition of hotel interactive, which closed in January severance expense related to recent changes to <unk>. Some of our senior leadership team acquisition integration costs, and a $1 $5 million increase in estimated contingent consideration payments for past acquisitions with flows.

David: Through the P&L as an expense, even though it will be purchase price when ultimately paid.

David B. Doft: This past year, we moved the winter edition of Outdoor Retailer to November instead of January, and consolidated a number of smaller shows in Q1. Note that our other Outdoor Retailer event held in June remains unchanged on the calendar.

David: We thought it would be helpful to briefly review our show calendar and seasonality given some shifts in the timing of certain large shows in recent years as well as our acquisition activity.

David: This past year, we moved the winter edition of outdoor retailer can November instead of January and consolidated a number of smaller shows in Q1 note that our other outdoor retailer event held in June remains unchanged on the calendar.

David B. Doft: We believe these changes better align the winter outdoor retailer show with the industry buying cycle. Taken together, these changes impacted the top line in Q1 2024 by $2 million and in Q1 2023 by $7.2 million, and can be seen in Schedule 1 in our earnings release. Our full show calendar for 2024 can be found on our website.

David: We believe these changes better align the winter outdoor retailer show with the industry buying cycles.

David: Together these changes impacted the top line in Q1 2024 by $2 million in Q1, 2023 by $7 $2 million and can be seen in schedule one in our earnings release.

David: Our boat show calendar for 2024 can be found on our website.

David B. Doft: Along these lines, given the number of industries Emerald serves... Our guidance always assumes some variability in quarter-to-quarter organic growth rates. While Q1 contributed strong double-digit organic revenue growth, other quarters are not expected to reach that level based on the mix of business in each specific period, all consistent with the assumptions that underpin our annual guidance, which we reaffirm today. Turning to the balance sheet, we had $186.8 million in cash as of March 31st, 2024, versus $204.2 million as of December 31st, 2023, after funding the $8.6 million dividend on our convertible preferred stock and the hotel interactive acquisition.

David: Along these lines given the number of industries Emerald serve.

David: Our guidance always assumes some variability in quarter to quarter organic growth rate, while Q1 contributed strong double digit organic revenue growth other quarters are not expected to reach that level based on the mix of business in each specific period, all consistent with the assumptions that underpin our annual guidance, which we reaffirmed today.

David: Turning to the balance sheet, we had $186 $8 million in cash as of March 31, 2024 versus $204 $2 million as of December 31, 2023. After funding the $8 6 million dividend on our convertible preferred stock and the hotel interactive acquisition, our total liquidity.

David B. Doft: Our total liquidity is $296.8 million, including full availability 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, as well as optimize the per share value of our stock. We expect to continue to balance capital allocation between acquisitions, investments in our own business, managing debt leverage, and returns of capital. At quarter end, we had $23 million remaining on our existing buyback authorization after buying back approximately 295,000 shares in the first quarter.

David: $296 $8 million, including full availability on our $110 million credit facility.

David: We believe our balance sheet strength and cash flow generation support our ability to opportunistically invest in and grow our business as well as to optimize the per share value of our stock. We expect to continue to balance capital allocation between acquisitions investments in our own business managing debt leverage and returns of capital.

David: At quarter end, we had $23 million remaining on our existing buyback authorization after buying back back approximately 295000 shares in the first quarter.

David B. Doft: As Herve mentioned, we completed the conversion of all of our outstanding preferred shares subsequent to quarter end. Following the conversion, our total outstanding share count is approximately $203.8 million, equating to a market cap of $1.2 billion as of yesterday's close. We paid the final first quarter preferred dividend in cash, thereby avoiding the issuing of an additional $2.4 million common shares.

David: Our survey mentioned, we completed the conversion of all of our outstanding preferred shares subsequent to quarter end.

David: Following the conversion our total outstanding share count is approximately $203 8 million.

David: Equating to a market cap of $1 2 billion.

David: As of yesterday's close.

David: We paid the final first quarter preferred dividend in cash, thereby avoiding the issuance of an additional $2 $4 million million common share.

David B. Doft: We expect our shareholders will benefit from our newly simplified capital structure and improved free cash flow. As of March 31st, we had net debt of $225.4 million, leading to a net leverage ratio, as defined in our credit agreement, of 2.17 times our trailing 12-month consolidated EBITDA, based on the definition in our credit agreement, of $103.9 million. Turning to guidance, we are reaffirming our full-year guidance for 2024 in the range of $415 million to $425 million of revenue and $110 million to $115 million of adjusted EBITDA.

David: We expect our shareholders will benefit from our newly simplified capital structure and improve free cash flow.

David: As of March 31, we had net debt of $225 4 million, leading to a net leverage ratio as defined in our credit agreement of $2. One seven times, our trailing 12 month consolidated EBITDA based on the definition in our credit agreement of $103 9 million.

David: Turning to guidance, we are reaffirming our full year guidance for 2024 in the range of $415 million to $425 million of revenue and $110 million to $115 million of adjusted EBITDA. This guidance implies an adjusted EBITDA margin of approximately 27% and includes a three.

David B. Doft: This guidance implies an adjusted EBITDA margin of approximately 27% and includes a 300 basis point drag from continued investment in the growth initiatives I noted in our last call. We believe as our business continues to scale and we leverage the investments we have made, we have runway to improve this number as we work our way back over time to the margins we saw prior to COVID. Thank you very much for your time, and with that, we'll now open the line for questions.

David: Hundred basis point drag from continued investment in the growth initiatives I noted on our last call.

David: We believe as our business continues to scale and we leverage the investments we have made that we have runway to improve this number as we work our way back over time to the margins we saw prior to Covid.

Speaker Change: You very much for your time and with that we'll now open the line for questions.

Operator: Thank you. Ladies and gentlemen, we will now begin the question and answer session. Should you have a question, please press star followed by number one on your touchstone phone. You will hear a prompt that your hand has been raised. Should you wish to decline from the polling process, please press star followed by number two. If you are using a speakerphone, please leave the handset before pressing any key. One moment, please, for your first question. Your first question comes from the line of Barton Crockett of Gross & Black. Your line is now open.

Speaker Change: Thank you ladies and gentlemen, we will now begin the question and answer session should you have a question. Please press star followed by number one on your Touchtone phone, you'll hear a problem that you had this been raised should you wish to decline from the polling process. Please press star followed by number two if you are using a speaker phone. Please.

Speaker Change: Leap the handset before pressing any Q1 moment. Please for your first question.

Speaker Change: Your first question comes from the line of Barton Crockett of clothes from Black Your line is now open.

Barton Evans Crockett: Okay, thanks for taking the questions. I was curious if you guys could elaborate a little bit more on some of the variability you flagged in the organic growth rate expectations for this year. Um, you know, if there's any quarter that looks, you know, particularly stronger, particularly weaker, and a little bit of color underneath that. And then, on top of that, I do note that you've got this acquisition of a hotel interactive here in January.

Barton Evans Crockett: Okay. Thanks for taking the questions.

Barton Evans Crockett: I was curious if you guys could.

Barton Evans Crockett: Elaborate a little bit more on some of the variability you flagged in the organic growth rate expectations for this year.

Barton Evans Crockett: You know if theres any quarter that looks particularly stronger, particularly weaker and a little bit of color underneath that.

Barton Evans Crockett: And then on top of that I do note that you've got this acquisition.

Barton Evans Crockett: If a hotel interactive.

Barton Evans Crockett: Here in January.

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

Barton Evans Crockett: So I was wondering if you could maybe give us a little bit more color around the materiality of that and the importance of that and also around the acquisition contribution do you expect for this year and how those kind of compare to your long term kind of aspirations.

David B. Doft: Sure. Thank you, Barton.

Speaker Change: Sure. Thank.

Speaker Change: Barton.

David B. Doft: You know, one of the things we've talked about, I think, a bit over the last several quarters is the volatility quarter-to-quarter of organic growth relating entirely to the sectors in which we have events in a particular quarter. So, if you recall, in the fourth quarter, our organic growth was lower than it was in the first quarter, but we gave visibility of an acceleration ahead, and it's purely based on the business mix.

Speaker Change: <unk>.

Barton Evans Crockett: You know one of the things we've talked about I think a bit over the last.

Speaker Change: Several quarters is.

Barton Evans Crockett: The volatility quarter to quarter of organic growth relates entirely to the sectors in which we have events in a particular quarter. So if you recall in the fourth quarter organic growth was lower than it was in the first quarter, but we gave visibility.

Barton Evans Crockett: Of an acceleration ahead and it's purely based on the business mix one thing about our business is that.

David B. Doft: One thing about our business is that while what we execute are events, they're all different businesses with different dynamics based on the industries they serve, and they happen once or twice a year, typically. And so, the quarter that a particular event takes place would greatly impact the results of that quarter but have nothing to do with the quarter before or the quarter after.

Barton Evans Crockett: While we execute our events.

Barton Evans Crockett: They are all different businesses with different dynamics based on the industries, they serve and they happened once or twice a year typically and so one quarter that a particular event stages in.

Barton Evans Crockett: With would greatly impact the results of that quarter, but have nothing to do with the quarter before the quarter after.

David B. Doft: And so, with that, the way we see the year playing out is the first and fourth quarters; we're expecting the strongest growth rates, and then the middle two quarters of the year have a bit more muted organic growth, but we still expect organic growth in those quarters based on the mix of the business and what stage it is at the different times of the year. From an acquisition standpoint, Hotel Interactive is a series of about 15 smaller hosted buyer events.

Barton Evans Crockett: So with that the way, we see the year playing out.

Barton Evans Crockett: The first and fourth quarter, we're expecting the strongest growth rates.

Barton Evans Crockett: And then the middle two quarters of the year.

Barton Evans Crockett: A bit more muted organic growth, but still expect organic growth in those quarters based on the mix of the business and what staging into different times of the year.

Barton Evans Crockett: From.

Barton Evans Crockett: And acquisition standpoint, Holdco interactive is a series of about 15 smaller hosted buyer events for those not aware the hosted by our model is a really attractive high ROI model for our sponsors and attendees.

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

Barton Evans Crockett: Their nature, they are smaller where we bring together a couple of hundred.

Barton Evans Crockett: Executives with buying budgets in a particular niche industry for a couple of days at a venue with education and networking as well as a one on one meetings with sponsors who are selling the products that the buyers are in market are working for it so very direct tangible ROI.

Barton Evans Crockett: For sponsors.

Barton Evans Crockett: Really effective and high NPS score model for for attendees and sponsors alike.

David B. Doft: And so they're spread out pretty much evenly over the course of the year for Hotel Interactive, and you can assume that the run rate that you see here in Q1 is pretty similar spread out over the course of the rest of the year. There are no other acquisitions at this point that we've closed on this year, and so time will tell what other impacts there will be from acquisition revenue in future quarters.

Barton Evans Crockett: And so there.

Barton Evans Crockett: They are spread out pretty much evenly over the course of the year for hotel interactive.

Barton Evans Crockett: And you can assume that the run rate that you see here in Q1 is pretty similar are spread out over the course of the rest of the year or there is no other acquisitions at this point.

Barton Evans Crockett: That we've closed on this year and so.

Barton Evans Crockett: Time will tell what other impacts there would be from acquisition revenue.

Barton Evans Crockett: Future quarters, we are ambitious on the M&A front there are a number of opportunities that we're pursuing and our hope is that we can close on two or three or four more smaller opportunities like this over the course of the year.

David B. Doft: We are ambitious on the M&A front. There are a number of opportunities that we're pursuing, and our hope is that we can close on two, three, four more smaller opportunities like this over the course of the year.

Barton Evans Crockett: And just to follow up on the acquisition commentary relative to your guidance. Do you have acquisition revenues in your guidance?

Speaker Change: Okay, and just to follow up on the acquisition commentary relative to your guidance.

Barton Evans Crockett: Do you have acquisition revenues in your guidance.

David B. Doft: We don't have future acquisitions in the guidance. The guidance has always had Hotel Interactive because the deal closed in January and we gave the guidance in early March, and we had already announced the deal, and it was implied in our number.

Speaker Change: We don't have guidance.

Speaker Change: We don't have acquisitions of future.

Barton Evans Crockett: So we don't have future acquisitions in the guidance. The guidance has always had hotel interactive because the deal closed in January and we gave the guidance in early March.

Barton Evans Crockett: And had already announced the deal and it was implied in our numbers.

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

Speaker Change: Okay, and then if I could ask another question you were referring Herve I think you were referring to growth and.

Speaker Change: Some of the key metrics.

Barton Evans Crockett: We're footage and.

Barton Evans Crockett: Others and I was just wondering if you could give us a little bit of detail around what you're seeing in those metrics. There's any numbers you can.

Barton Evans Crockett: Give us the kind of underlying when you were talking about.

Speaker Change: On that point.

David B. Doft: David, I'll take this. So we continue to see a strong opportunity on the pricing front. We're seeing prices up better than mid-single-digit so far year-to-date and would expect at least a mid-single-digit pricing improvement over the course of the year. And that's on top of the more meaningful price improvements we were able to get over the last couple of years as we rolled out what we think is a more sophisticated pricing algorithm than we operated under prior to the pandemic.

Barton Evans Crockett: So this is David I'll take this so we continue to see a strong opportunity on the pricing front, we're seeing pricing up better than mid single digit so far year to date and would expect.

David: Our mid single digit pricing improvement over the course of the year.

Speaker Change: And that's on top of the more meaningful price improvements, we were able to get over the last couple of years as we rolled out what we think is a more sophisticated pricing.

David: Algorithm than we operated under a prior to the pandemic NSS up a few percent.

David B. Doft: NSF is up a few percent. There is variability there event to event, and that's kind of the part of what drives the organic growth commentary based on industry exposures. But we're continuing to see better than historical growth rates in NSF for the year and implying there's still a little bit of tailwind from a pandemic recovery in certain sectors as well as we hope and expect to benefit from some of the initiatives that we've begun to put in place over the last couple of years to drive incremental growth for Emerald over the long term. I'll give a shout out in particular to our international sales team, which has particular momentum for driving improvements to our mix of business from international exhibitors coming to our events here in the US.

David: There is variability there event to event and Thats kind of the part of what drives the organic growth commentary based on industry exposures, but we're continuing to see.

David: <unk> than historical growth rates.

David: The NSF.

David: Sure.

David: For the year.

David: Acquiring theres still a little bit of tailwind from a pandemic recovery in certain sectors as well as we hope and expect.

David: The benefit from some of the initiatives that we've begun to put in place over the last couple of years to drive incremental growth for Emerald all longer term.

David: Give a shout out in particular to our international sales team, which has a particular momentum on driving improvement to our.

David: Our mix of business from international exhibitors coming to our events here in the U S.

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

Speaker Change: Okay, and then if I could just ask one final question.

Speaker Change: And this one I'll also offer to herve if it if it makes sense for you but.

Herve Sedky: I know that the <unk>.

Speaker Change: The situation has been problematic.

Herve Sedky: That you've had some interest in and I'm just wondering if you could update us on what's happening in terms of the visa timing backlog.

Herve Sedky: And the impact that has on you guys in the industry at this point and what the prospects are going forward there.

Herve Sedky: Sure, visa processing is still an issue for us as an industry, not just for Emerald, and it's something that we participate in as part of an industry effort. The association, ECA, the Exhibitions and Conference Alliance, which I happen to chair, is very focused on lobbying the government to modernize visa processing and restore visa operations to pre-pandemic levels.

Herve Sedky: Sure.

Herve Sedky: These are processing is it still an issue for us as an industry not just for Emerald and it's something that we participate in as part of of an industry effort.

Herve Sedky: The Association ECA, the exhibition and conference Alliance, which I happened to chair is very focused on.

Herve Sedky: On lobbying really government to modernize visa processing and restore.

Herve Sedky: <unk>.

Herve Sedky: Operations to pre pandemic levels and there are a number of bills that are sitting in Congress that are getting some some support on from both Democrats and Republicans.

Herve Sedky: And there are a number of bills that are sitting in Congress that are getting some support from both Democrats and Republicans. There are some that have already secured some really good funding, which we're excited about, and others that we continue to push for. And so I think we're making some very good progress, but more is needed. And I spent a little bit of time on Capitol Hill, actually, last week, I think it was, and there is Exhibitions Day coming up at the end of the month, where a lot of industry colleagues will be lobbying Congress to continue to push.

Herve Sedky: We need there's some that have already secured some really good funding, which we're excited about and others that we continue to push forward.

Herve Sedky: And so I think we're making some very good progress, but more is more is needed and I spent a little bit of time on Capitol Hill actually last week I think it was and there is exhibitions day coming up end of the month, where a lot of industry colleagues will be lobbying.

Herve Sedky: Congress to continue to push but I think it's moving in the right direction, it's something to Davids point, we all as an industry.

Herve Sedky: But I think it's moving in the right direction. It's something, to David's point, we all, as an industry, can benefit from the tailwind of increasing international participation in all of our events. And it's top of mind for our industry and certainly can benefit Emerald. Okay.

Herve Sedky: Can benefit from the tailwind of increasing international participation in all of our events and it's top of mind for our industry and certainly can benefit emeralds.

Herve Sedky: Yeah.

Barton Evans Crockett: Okay. All right. Thank you, David and Herve. I appreciate it.

Speaker Change: Okay, Alright, Thank you, David and Herve I appreciate it.

Speaker Change: Thank you Barton.

Allen Robert Klee: Your next question comes from the line of Allen Klee of Maxim Group LLC. Your line is now open.

Speaker Change: Your next question comes from the line of Allen Klee of Maxim Group LLC. Your line is now open.

Allen Robert Klee: Yes, good morning.

Allen Robert Klee: Yes, good morning. Can you talk a little about the new launches you did last year from Accelerator, kind of what you're looking to improve upon them, and how you're thinking about potential performance from them in 24.

Allen Robert Klee: Can you talk all about.

Speaker Change: Hi, Hi.

Allen Robert Klee: Numerous new launches you did last year.

Allen Robert Klee: From accelerator kind.

Allen Robert Klee: What you are looking to.

Allen Robert Klee: To improve upon them in and how youre thinking about potential performance from them in 2004.

Herve Sedky: Sure, I am. So we have a number of launches that we have highlighted. And so, let me highlight a couple. Casina Sobrosa, which was an event that's dedicated to the Latin food market, the Latin food and beverage market, was a successful launch in September of 2023. It was a very, very successful launch, and we expect that that will continue to grow in 2024. Commercial Integrator was another one that was successful that was adjacent to our Cedia events. Another successful launch leveraging the Cedia infrastructure.

Allen Robert Klee: Sure.

Speaker Change: We have a number of launches that we do.

Allen Robert Klee: We.

Allen Robert Klee: That we highlighted.

Allen Robert Klee: So let me highlight a couple casinos sabrosa, which was.

Allen Robert Klee: An event, that's dedicated to the Latin food market Latin food and beverage market was the successful launch in September of 2023.

Allen Robert Klee: It was a very very successful launch and we expect that that will continue to grow.

Allen Robert Klee: In 2024 <unk>.

Allen Robert Klee: Commercial integrator is another one that was successful that was.

Allen Robert Klee: Jason to our CTO.

Allen Robert Klee: Events.

Allen Robert Klee: Another successful launch leveraging the <unk> infrastructure, another way to launch successfully leveraging an existing infrastructure existing customer base existing cost base.

Herve Sedky: Another way to launch successfully, leveraging an existing infrastructure, existing customer base, existing cost base, but still attracting a different customer. In this case, it was a professional customer versus a residential customer in the integration channel space that we're excited about, and we'll see some good growth and expect to see some good growth in 2024. The same with one that we call D2.

Allen Robert Klee: But still attracting a different customer in this case it was a professional customer versus a residential customer.

Allen Robert Klee: In the.

Allen Robert Klee: And then in the integration.

Allen Robert Klee: Channel space that that we're excited about and we will see some some good growth and we're expecting some good growth in our in 2024 and the same with one that we call <unk>. It's in the decentralization decipher. It is the name of the event and it's really all about educating businesses around web <unk>.

Herve Sedky: It's in decentralization. Deciphered is the name of the event, and it's really all about educating businesses around Web3 innovation. That one is a little different as well in terms of its platform, one that we're scaling across multiple events, so it has its own unique conference, but we're also able to launch it alongside other events where it makes sense, where we have audiences like RSE and others that are interested in that content.

Allen Robert Klee: <unk> innovation.

Allen Robert Klee: And that one is a little different as well in terms of its platform one that we that we're scaling across multiple events. So it has its own unique conference, but we're also.

Allen Robert Klee: <unk> to launch it alongside other events, where it makes sense, where we have audiences.

Allen Robert Klee: Like our IC and others that are interested in in that content.

Allen Robert Klee: So in those particular instances the launches that we're highlighting where we're seeing some really good growth opportunities and that's what I mentioned in my opening remarks launches like this are exciting for us because.

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

Allen Robert Klee: They they really provide us with growth opportunities, which we believe over time will will give us one to two points of organic growth benefit to Emerald overall.

Allen Robert Klee: Okay.

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

Speaker Change: Thank you.

Allen Robert Klee: Content.

Allen Robert Klee: Content business you.

Allen Robert Klee: Is that struggled last year, but it sounded like you had sounded a little more positive on that.

Allen Robert Klee: Could you just go into that a little bit more detail of why you think that's kind of maybe bottomed out.

Herve Sedky: I'll start, and I'll turn it over to David. We are more positive about our content business for really two primary reasons. The first and foremost reason is that we have made some investments in that business. Basically, content for Emerald was a business that was attached to the trade show business. So, the content business was inside of the trade show business. What we did over the course of the last year plus is we separated it.

Speaker Change: Yeah, I'll I'll start and I'll turn it over to David we are more positive about our content business for for really two primary reasons.

David: The first and foremost reason is that.

David: We have made some.

David: Some investments in that business, we basically content for Emerald was a business that was attached to the tradeshow business. So the content business was.

David: Was inside of the Tradeshow business, what we did over the course of the last year plus is we separated that we.

Herve Sedky: We completely separated it into a separate business, hired leadership that had expertise in that business, and made some investments in that business from a leadership and an infrastructure perspective so that we could shift that business and be less reliant on pure advertising over time and really create more of a lead-generating type capability, which is where we intend to go with that business. So, we feel that the example that I gave in terms of creating this one brand, leveraging all of the databases that we have across Emerald to create this one brand and this one product has been really successful.

David: Completely.

David: Separated it into a separate business hired leadership that have expertise in that business and made some investments.

David: And in that business from a leadership and and an infrastructure perspective, so that we can shift that business and be less overtime reliant on pure advertising and really create more of a lead generating type capability, which is where we intend to go with that business. So.

David: We feel and the example that I gave in terms of creating.

David: Creating this one brands leveraging all of the databases that we have across Emerald's to create this one brand and one product has been really successful. So the the focus that we've put on it the leadership that we've put on it the product that we launched was had some good successes out of the gate gives us.

Herve Sedky: So, the focus that we've put on it, the leadership that we've put on it, the product that we launched that has had some good successes out of the gate gives us some early signs of success that give us confidence. The second part is that we do have some forward visibility, and we are starting to see some of the sectors that were harder hit, particularly tech, last year start to open up. So, we feel more confident in that business with some forward visibility in the content business, but I'll turn it over to David as well.

David: Some.

David: Some early signs of success that give us confidence the second part is that we do have some forward visibility.

David: And we feel and we're starting to see.

David: Some of the sectors that were harder hit, particularly tech last year.

David: Start to.

David: Start to open up and so we feel more confident.

David: In that in that business with some forward visibility.

David: In the content business, but I'll turn it over to David as well.

David B. Doft: Yeah, I think the, just to build on the reorg of the business and the separation out from the events. Conceptually, we went from 20 different businesses being run on their own to one business being run on shared technology, platform, best practices, et cetera, where each industry vertical can leverage the whole. And it's a massive change in approach that has allowed us to meaningfully improve the operations but also modernize it to be a modern media business, not a media business of 10 years ago, 15 years ago, et cetera.

David: Yes, I think the.

David: Just to build on the rework of the business and.

David: And the separation out from the event.

David: Conceptually we went from 20 different business is being run on their own to one business.

David: <unk> run on shared technology platform best practices Etsy.

David: Et cetera that can where each industry vertical can leverage the hole.

David: And it's a.

David: Massive change in approach that.

David: It's allowed us to meaningfully improve the operation, but also modernize it to be a modern media business not a media business. So 10 years ago, 15 years ago et cetera, and that's a really large opportunity that we're excited about it and with that Tom.

David B. Doft: And that's a really big opportunity that we're excited about. And with that comes more and better editorial, more leverageable editorial, understanding the analytics of readership and how that should drive an editorial calendar and strategy, as well as a consolidated sales effort that can sell across the platform, not just sell their own individual verticals, which we expect will drive meaningful incremental opportunity. And so with that, we've seen forward bookings turn. And so while Q1 still had a decline year over year, our bookings for the year are up.

David: More and better editorial more leverage avoid editorial understanding the analytics.

David: Our leadership in <unk>.

David: And how that should drive an editorial calendar and strategy.

David: And as well as our consolidated sales effort that can sell across the platform not just selling their own individual vertical, which we expect will drive meaningful incremental opportunity and so with that we've seen the.

David: Forward bookings turn until while Q1 still had a decline year over year.

David: Bookings for the year our op.

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

David: And so we are confident that this will be a contributor to growth. This year based on the efforts of the team.

David: <unk> always takes a little time to get its footing, but once it does.

David: Once it has and we start to see some real momentum on the sales front that should lead to meaningfully better in performance over the course of the rest of the year.

David: Yeah.

Allen Robert Klee: That's great. Thank you very much. And then also, under commerce, I heard you say that you've expanded some of your verticals, which could double the audience you're going after. Two things. Could you talk a little about when the new verticals were added and sort of think about when they could start contributing? And then, second, for Bulletin, you talk about how that was gaining traction and empowered New York Now and some other users and trade shows. Could you just go into a little more detail explaining what that all means? Thank you. Sure. I'll be happy to. So on the last call...

Speaker Change: That's great. Thank you very much and then also under commerce.

Speaker Change: Or would you say that you've expanded some of your verticals, which could double the audience you're going after.

Speaker Change: Two things could could you talk a little about.

Speaker Change: When the new verticals were added in.

Speaker Change: Think about when when they can start contributing and then second for Bulletin you talk about how that was gaining traction and powering New York now and some other users and Tradeshows could you just go into a little more detail explaining what that all means. Thank you sure happy to so on the last call.

Herve Sedky: Sure, happy to. So, on the last call, we spent a little bit of time on Elastic and how we're expanding the addressable market. We were very focused on, Elastic has traditionally been very focused on the outdoor space, and its roots have been in outdoor apparel and so forth. And so, we've moved inside.

Speaker Change: We spend a little bit of time on on the on the elastic and how we are.

Speaker Change: How we are expanding the addressable market by.

Speaker Change: We were very focused elastic has traditionally been very focus on the outside space.

Speaker Change: And in its roots have been in outdoor.

Speaker Change: Apparel and so forth.

Herve Sedky: We've moved to the kitchen and bath industry and are really focusing on this very large asset that we have with that particular industry and signs. Some very large brands in that space that we announced on the last earnings call and at the last KBiz event. So that industry, in itself, allows us, just the kitchen and bath industry, in itself, allows us to double the addressable market or actually more than double the addressable market for that particular product. And that has always been our strategy.

Speaker Change: So we've moved.

Speaker Change: We've moved inside we have moved to the.

Speaker Change: To the kitchen, and Bath and really focusing on this very large asset.

Speaker Change: That we have with that particular industry and signs.

Speaker Change: Some very large brands in that space that we announced in the last on the last earnings call.

Speaker Change: And at the last <unk> events, so that but that industry in of itself allows us just the kitchen and bath industry in of itself allows us to double.

Speaker Change: The addressable market or actually more than double the addressable market for that particular product and that has always been our strategy. Our strategy has been to to leverage this excellent products, which is a highly integrated product for very large customers.

Herve Sedky: Our strategy has been to leverage this excellent product, which is a highly integrated product for very large customers, and go from industry to industry that we serve, and so we're on track there. In terms of Bulletin, Bulletin is a different type of product. Bulletin is not an integrated product. Bulletin is really a product for much, much smaller businesses, much easier to scale, and scale across a much wider range of products as customers. As you know, 85% plus of our customers are small businesses, and so we needed something that could scale faster and easier to our smaller customers, and so we started with New York Now, given that Bulletin's entry point was in the home space.

Speaker Change: And go from industry industry that we serve and so we're on track there.

Speaker Change: In terms of Bulletin Bulletin is a different type product bulletin is.

Speaker Change: It is not an integrated product bulletin is.

Speaker Change: It was really a product for a much much smaller business is much easier to scale scale across a much wider range of products.

Speaker Change: As with customers as you know, 85% plus of our customers are small businesses and so we needed something that can scale faster and easier to to our smaller customers.

Speaker Change: So we started with New York now given the bulletins entry point was in the in the home space and.

Herve Sedky: And so that, as I mentioned in my opening remarks, has been quite successful. And so what we are looking to do now, as I mentioned, is to then do exactly as we've done with Elastic and then to scale that across other categories over time.

Speaker Change: And so that has as I mentioned in my opening remarks has been quite successful and so what we are looking to do now as I mentioned is to then do exactly as we've done with elastic is then to scale that across other categories over time.

Speaker Change: Yes.

Allen Robert Klee: That that's great. And then just one of your pillars is to try to get 24 hour, I'm sorry, full year engagement from customers. How would you feel about where you are in that process and where you're getting the benefits from that? Yeah.

Speaker Change: That's great and then just just one of your pillars is to.

Speaker Change: Try to get 24 hour I'm, sorry, full year engagement from from customers. How how would you feel about where you are in that process and where we're getting the benefits from that.

Herve Sedky: Yeah, I think the 365-day engagement is basically the two parts that we just talked about. So customers attend our events. Those are episodic.

Speaker Change: Yes, I think the the.

Speaker Change: The 365 day engagement is basically are basically the two.

Speaker Change: Parts that we just talked about so customers attend our events those are episodic the ability for us to stay in touch with them and offer them.

Herve Sedky: The ability for us to stay in touch with them and offer them value through our content business, those happen to be through the editorial, through leads, and also through the commerce business. And those two, working in tandem with our connections business or with the events business, allow us then to offer this 365 platform. So I think we're tracking very well to that. Obviously, it's a journey.

Speaker Change: Our value through our content business those happened to be through the editorial through leads and also through the commerce business.

Speaker Change: And those two working in tandem with our connections business or with the events business allows us then.

Speaker Change: Two to offer this 365 platform. So I think we're tracking very well.

Speaker Change: To that obviously, it's a journey, we we continue to do more and but we are very well on track to deliver on our plan and and we feel good about as I mentioned, we track the value that we create to our customers David mentioned.

Herve Sedky: We continue to do more, but we are very well on track to deliver on our plan, and we feel good about, as I mentioned, tracking the value that we create for our customers. David mentioned pricing. That's a big part of our pricing strategy, and the reason why we're able to command increases in pricing is that we are very focused on pricing for value creation. We price based on the value that we create for customers.

Speaker Change: Reising, that's a that's a big part of our pricing strategy and the reason why we're able to command increasing in pricing is that we are very focused on pricing for value creation.

Speaker Change: We price based on the value that we create to customers. What we want to do is be maniacally focused on delivering value to our customers and then and getting compensated for the value that we create and so that is our strategy and so we constantly look for how do we constantly create value 300.

Herve Sedky: What we want to do is be maniacally focused on delivering value to our customers and getting compensated for the value that we create. That is our strategy, and so we constantly look for how do we constantly create value 365 days a year. Therefore, the content business, the commerce business, allows us to do that for our entire customer pool of Connections customers.

Speaker Change: 65 days, a year and therefore, the content business. The commerce business allows us to do that for our entire customer pool.

Speaker Change: Of of connections customers.

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

Speaker Change: That's great My last question is.

Speaker Change: You use a matching technology.

Speaker Change: For those who are at trade shows.

Speaker Change: Can you talk about.

Speaker Change: Where you are in terms of like the feedback you've gotten and how does it add value to those at the trade shows and what Youre doing.

Speaker Change: Going forward with that okay. Thank you.

Herve Sedky: Yes, we do. We are now using matchmaking tools and solutions as well as lead sharing tools at all of our trade shows. All trade shows now have implemented these types of solutions, and again, that's linked to value creation. They're doing really well. The reason we know it's going well is because we measure net promoter scores, and we measure loyalty, and we can see that customers that utilize such solutions have a higher RATUS.

Speaker Change: Yes, we do we use we now are using matchmaking.

Speaker Change: Tools and solutions as well.

Speaker Change: Lead.

Speaker Change: Yeah.

Speaker Change: Lead sharing tools at all of our Tradeshows for all trade shows now have implemented these types of solutions again, that's linked to the value creation, and they're doing really well, where we and the reason we know its going well is because we measure.

Speaker Change: Net promoter scores and we measure loyalty and we can see that customers that utilize such solutions have a higher rate us a stronger they have a higher net promoter score higher loyalty score than those that don't and so our efforts are not for our efforts.

Herve Sedky: They have a higher net promoter score and higher loyalty score than those that don't. Our efforts to date have been to make sure that we have it across all of our events. Now we're very focused on adoption and usage and making sure that as many customers as possible, across both the exhibitors and the visitors, are using these tools. We're making really good progress on making sure that we've got this adoption across all of our events.

Speaker Change: <unk> have been to make sure that we have it across all of our events and now we're very focused on adoption and usage and making sure that as many customers as possible across both exhibitors and the visitors are using these tools and we're making really good progress on making sure that we've got this adoption across our all of our events.

Allen Robert Klee: That's great. Thank you. Congratulations on the strong quarter. Thank you very much.

Speaker Change: That's great. Thank you congrats on the strong quarter.

Herve Sedky: Thank you very much. Thanks, Allen.

Speaker Change: Thank you very much thanks Alan.

Speaker Change: Okay.

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

Speaker Change: We don't have any further questions at this time presenters. Please continue.

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

Speaker Change: Great well I just wanted to thank you all for your questions. Thank you for all for your interest in Emerald I'm very pleased with what our teams have accomplished this quarter and.

Speaker Change: I'm glad that we have we've been able to deliver on the expectations and the commitments that we've made and.

Speaker Change: I look forward to speaking with you all next quarter have a great day.

Operator: This concludes today's conference call. Thank you for your participation. You may now disconnect.

Speaker Change: This concludes today's conference call. Thank you for your participation you may now disconnect.

Speaker Change: Yes.