Emerald Holding Inc (EEX) Reports 16% YoY Revenue Growth in Q3 2023
Emerald Holding Inc (NYSE:EEX) reported a 16.2% YoY increase in Q3 2023 revenues, reaching $72.5 million.
Net income for Q3 2023 was $10.7 million, a significant decrease from $93.0 million in Q3 2022.
The company adjusted its full-year 2023 guidance, expecting to generate revenue in the range of $385 million - $395 million.
The Board of Directors approved an extension and expansion of the company's share repurchase program.
On November 6, 2023, Emerald Holding Inc (NYSE:EEX), America's largest producer of trade shows and their associated conferences, content, and commerce, released its financial results for the third quarter ended September 30, 2023.
Financial Performance
The company reported revenues of $72.5 million for Q3 2023, a 16.2% increase over Q3 2022, primarily due to growth in events that staged in both quarters, new launches, and acquisitions. However, net income for Q3 2023 was $10.7 million, a significant drop compared to the net income of $93.0 million for Q3 2022.
Adjusted EBITDA and Cash Flow
Adjusted EBITDA for Q3 2023 was $10.8 million, compared to $149.7 million for Q3 2022. The company reported $200.3 million in cash at the end of the quarter and full availability of its $110.0 million revolving credit facility.
Full Year 2023 Guidance
Emerald Holding Inc (NYSE:EEX) is adjusting its full-year 2023 guidance due to some softness in its content business. The company now expects to generate revenue in the range of $385 million - $395 million and Adjusted EBITDA in the range of $95 million - $100 million.
Share Repurchase Program
The company's Board of Directors approved an extension and expansion of the company's share repurchase program, which allows for the repurchase of $25.0 million of the company's common stock through December 31, 2024.
Operational Highlights
The company's core trade show business remains strong as the post-COVID recovery cycle continues to drive growth in exhibitor and attendee counts. The company successfully launched the first edition of Cocina Sabrosa, a trade show focused on the Latin food and beverage industry, in September 2023.
Management Commentary
Emerald's President and Chief Executive Officer, Herve Sedky, expressed satisfaction with the continued double-digit growth in their live events business. However, he noted that the performance of their content business was somewhat muted in the quarter, driven by cautious ad spending trends within the technology sector.
David Doft, Emeralds Chief Financial Officer, added that revenue and profitability trends in their core trade show business remain strong. He also mentioned that the company anticipates its FY 2023 revenue guidance will now be in the range of $385 million to $395 million due to reduced ad spend in the tech sector.
Explore the complete 8-K earnings release (here) from Emerald Holding Inc for further details.
This article first appeared on GuruFocus.
