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Emerald Holding, Inc. (EEX)·Q2 2024 Earnings Summary

Executive Summary

  • Q2 revenue was $86.0M, down 0.6% year over year, while organic revenue rose 3.3% to $82.1M; Adjusted EBITDA increased 4.8% to $15.3M and diluted EPS improved to $(0.03) from $(0.29) in Q2 2023 .
  • Management maintained FY 2024 guidance of $415–$425M revenue and $110–$115M Adjusted EBITDA (implies ~27% margin), signaling confidence in re-bookings, pricing, and operating leverage .
  • Emerald reinstated a regular quarterly cash dividend of $0.015 per share (annualized $0.06/share, ~$12M), citing strong and visible free cash flow; share count now ~203.9M following preferred conversion .
  • Key catalysts: continued 365-day engagement and AI-enabled personalization driving marketing efficiency, ongoing portfolio optimization (new launches, M&A), and reinforced capital return policy .

What Went Well and What Went Wrong

  • What Went Well

    • Organic revenue growth (+3.3%) despite seasonal softness; Adjusted EBITDA up 4.8% y/y, margin ~17.8% in Q2 .
    • Strong forward visibility via on-site prebooking and higher re-bookings; reiterated FY guidance; pricing yields mid-single-digit or better across portfolio .
    • Dividend reinstatement underscores free cash flow durability and balanced capital allocation (target up to 25% FCF payout over time) .

  • What Went Wrong

    • Total revenue declined slightly (-0.6%) due to discontinuation of small, unprofitable events and scheduling shifts across quarters .
    • Content revenues faced pockets of softness; SG&A benefited from efficiency efforts but still includes non-recurring costs (integration, restructuring, legal) .
    • No explicit Street consensus available to benchmark Q2 revenue/EPS; therefore estimate-beat/miss context is unavailable (S&P Global data request limit reached).

Financial Results

MetricQ4 2023Q1 2024Q2 2024
Revenue ($USD Millions)$101.5 $133.4 $86.0
Net Income ($USD Millions)$(17.9) $11.0 $(2.8)
Diluted EPS ($USD)$(0.46) $0.00 $(0.03)
Operating Income ($USD Millions)$19.9 $24.3 $6.4
Adjusted EBITDA ($USD Millions)$35.8 $40.8 $15.3
Adjusted EBITDA Margin (%)——~17.8%
Cash from Operations ($USD Millions)$15.6 $7.3 $9.8
Capital Expenditure ($USD Millions)$2.1 $2.5 $2.7

Segment and Revenue Mix

Segment / CategoryQ4 2023Q1 2024Q2 2024
Connections Revenue ($M)$90.3 $123.4 $75.0
Content Revenue ($M)$6.2 $4.7 $5.9
Commerce Revenue ($M)$5.0 $5.3 $5.1
Adjusted EBITDA – Connections ($M)$39.7 $56.1 $26.4
Adjusted EBITDA – All Other ($M)$1.6 $0.2 $1.8

KPIs and Liquidity

KPIQ2 2024
Organic Revenues ($M)$82.1
Free Cash Flow ($M)$7.1
Cash & Equivalents ($M)$193.2
Net Debt ($M)$218.0
Net Debt / EBITDA (TTM)2.1x
Deferred Revenues ($M)$175.5

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueFY 2024$415–$425M $415–$425M Maintained
Adjusted EBITDAFY 2024$110–$115M $110–$115M Maintained
Adj. EBITDA Margin (Implied)FY 2024~27% ~27% Maintained
Dividend per ShareQ3 2024 onwardNone$0.015 per share quarterly (annualized $0.06/share, targeted payout up to 25% of FCF) Introduced

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 2023, Q1 2024)Current Period (Q2 2024)Trend
AI/Technology initiativesBuilding first‑party data; commerce platform integration; digital engagement AI tests in content/marketing to personalize outreach and improve conversion; planned broader implementation in 2025 Expanding pilots → operationalization
Supply chain & macroSupply chain improvements, international travel rebound aided 2023 performance Mixed macro; diversified portfolio mitigates variability; pricing yields mid-single digit+ Stable; diversified cushion
Tariffs/InternationalNoted broader travel recovery Watching trade/tariff dynamics; offset declines in China/Canada with targeted international selling via agent network Managing headwinds; targeted offsets
Product/portfolio performanceNew launches (NBA Con, Cocina Sabrosa), M&A (Overland Expo) Hosted buyer events (Hotel Interactive) tracking well; commerce updates with Bulletin/NY NOW integration –Portfolio optimization continues
Re-bookings/PricingStrong pacing and attendance; re-bookings into 2024 On-site prebooking into 2025; sustained pricing strength High visibility maintained

Management Commentary

  • “We are pleased to report another quarter of solid growth in organic revenue and Adjusted EBITDA… we are reinstituting a regular quarterly dividend… This decision reflects the strong, reliable, cash flow-generating nature of our business” — Hervé Sedky, CEO .
  • “Organic revenue… was $82.1 million… Adjusted EBITDA… $15.3 million… We continue to expect that our 2024 performance will be within our full year guidance… implies… ~27%” — David Doft, CFO .
  • “At all of our trade shows, we've implemented on-site prebooking… selling exhibitor space into the first half of 2025… gives us confidence in our forecasts for 2024 and continued growth into 2025” — Hervé Sedky .
  • “We continue to see strong yield improvements year-over-year, surely mid-single digit or better, across the portfolio” — David Doft .

Q&A Highlights

  • Cadence and mix: Quarter-to-quarter organic growth variation driven by show scheduling and vertical mix; Q4 expected to reaccelerate given calendar composition .
  • Pricing and yields: Mid-single-digit+ yield improvements; NSF growth normalizing vs post-pandemic tailwind .
  • International/tariffs: Expected declines in China/Canada mitigated by targeted efforts in Turkey, UAE, Brazil; broadened agent network to drive international exhibitors .
  • Hosted buyer events: Hotel Interactive’s BITAC series delivers high-ROI sessions for sponsors; complements existing CPMG model .
  • Commerce platform: Bulletin integrated into NY NOW online/website enabling transactions; Shopify app announced to sync products/orders –.

Estimates Context

  • Wall Street consensus (S&P Global) for Q2 2024 EPS and revenue was unavailable due to data access limits at the time of analysis; therefore, we cannot determine beat/miss versus consensus. S&P Global consensus not available — comparison omitted.

Key Takeaways for Investors

  • Maintained FY 2024 guidance with improving organic growth and Adjusted EBITDA trajectory; visibility anchored by on-site pre-bookings and pricing strength .
  • Dividend reinstatement and targeted FCF payout indicate growing capital return capacity alongside disciplined leverage (2.1x) and liquidity ($193M cash, full revolver) .
  • Portfolio optimization remains a growth lever (new launches, hosted buyer expansion, commerce enablement), supporting mid-to-high single-digit organic growth ambitions .
  • Near-term trading: Narrative favors cash generative, dividend-paying event platforms with pricing power; seasonal Q3 softness historically and scheduling mix should be contextualized against full-year trajectory .
  • Medium-term thesis: Margin expansion back toward pre-COVID levels via operating leverage and mix improvement; AI-driven marketing efficiency could enhance lead generation and conversion .
  • Watch items: Content revenue softness/intra-quarter variability, non-recurring integration costs, and international/tariff developments impacting specific categories .