• Total Revenue: $147.7 million, up from $133.4 million in the prior year quarter.
• Organic Revenue Growth: Increased 5.6% year over year to $139.2 million.
• Adjusted EBITDA: $53.6 million, up 34.7% from $39.8 million in the prior year period.
• Adjusted EBITDA Margin: Approximately 36.3% for the quarter.
• SG&A Expenses: $54.1 million, down from $55.5 million in the prior year quarter.
• Free Cash Flow: $10.8 million, excluding event cancellation insurance, compared to $3.8 million in the prior year period.
• Cash Balance: $276.8 million as of March 31, 2025, up from $194.8 million as of December 31, 2024.
• Share Buyback: Approximately 2 million shares repurchased for $8.8 million at an average price of $4.33 per share.
• Quarterly Dividend: $0.015 per share.
• 2025 Revenue Guidance: $450 million to $460 million.
• 2025 Adjusted EBITDA Guidance: $120 million to $125 million.

• Warning! GuruFocus has detected 4 Warning Sign with EEX.

Release Date: May 01, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Emerald Holding Inc (NYSE:EEX) reported double-digit growth in revenue and adjusted EBITDA for the first quarter of 2025.
• The company's refined portfolio spans high-growth sectors, reducing reliance on slower growth verticals and enhancing resilience.
• Emerald Holding Inc (NYSE:EEX) is seeing increasing rebook rates for Q1 2026, reflecting customer trust and ongoing ROI from their events.
• The company has successfully executed a refinancing of its existing debt, enhancing financial flexibility with no significant maturity due until 2030.
• Emerald Holding Inc (NYSE:EEX) has a strong cash position with $276.8 million as of March 31, 2025, supporting strategic investments and growth opportunities.

Negative Points

• Emerald Holding Inc (NYSE:EEX) is experiencing pressure on sales efforts with customers in China and Canada due to global trade tensions.
• The company is facing declines in international attendance from China and Canada, impacting revenue from these regions.
• There are ongoing challenges from shifting consumer sentiments and global economic pressures that could influence the company's trajectory.
• Emerald Holding Inc (NYSE:EEX) has limited international exposure, which could restrict growth opportunities in global markets.
• The integration of recent acquisitions, such as Insurtech Insights and This Is Beyond, presents potential challenges in achieving expected synergies and growth.

Q & A Highlights

Q: Can you provide an update on international attendance and how it aligns with your guidance, considering potential trade war impacts? A: Herve Sedky, President and CEO, stated that they are seeing the expected declines in international attendance from China and Canada. However, they are offsetting this with increased attendance and sales from countries like Turkey, UAE, and Brazil. The initial guidance already accounted for these declines, and the company remains confident in its ability to meet its full-year guidance.

Q: The first quarter's EBITDA seems higher as a percentage of the full year compared to previous years. Is there a reason for this, such as acquisitions or changes in show schedules? A: David Doft, CFO, explained that the Insurtech acquisition contributed to the first quarter results, and some shows moved from the second quarter last year to the first quarter this year. Additionally, cost management and operational efficiencies have improved margins. The first quarter results are in line with expectations and support the full-year guidance.

Q: Regarding Insurtech, did it contribute to EBITDA in the first quarter, and what is the schedule for its events? A: David Doft confirmed that Insurtech's London event contributed to the first quarter's EBITDA. Insurtech has three events: London in the first quarter, New York in June, and Hong Kong in the fourth quarter. The London and New York events are similar in size, while Hong Kong is smaller.

Q: How are you funding the acquisition of This Is Beyond, and how many of their events will you capture in 2025? A: David Doft stated that the acquisition will be funded entirely from cash on the balance sheet. Emerald will capture all seven events from This Is Beyond in 2025, with two in the second quarter, one in the third quarter, and four in the fourth quarter.

Q: Can you discuss your approach to expense discipline and any early benefits from AI applications? A: Herve Sedky highlighted that Emerald has consolidated its operations onto a single platform, allowing for efficiencies. They are also testing AI applications in marketing and content, which have shown promise in improving efficiency. Additionally, a procurement function has been established to centralize purchasing and achieve cost savings.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.