Earnings: Emerald Delivers Double-Digit Organic Revenue Growth in Q1
May 10, 2024
U.S. B2B trade show and conference producer Emerald posted a 9.1% increase in revenues in the first quarter (Q1) 2024, compared with the same period last year, according to its 2024 Q1 financial results released on May 7.
Emerald generated Q1 revenues of $133.4 million, an increase of $11.1 million compared with Q1 2023 revenues of $122.3 million. Company officials attributed the growth to increased exhibitor and attendee metrics for events in its strongest categories, such as The Kitchen & Bath Industry Show KBIS, Prosper and the International Pizza Expo, as well as the acquisition of Hotel Interactive.
By the numbers: Organic revenues, a non-GAAP measure that takes into account the impact of acquisitions, scheduling adjustments and discontinued events, were $128.6 million for Q1, an increase of $13.5 million, or 11.7%, from $115.1 million for Q1 2023, primarily due to higher volume of exhibitors and improved pricing. Net income amounted to $11.0 million for Q1, compared to net income of $7.1 million for Q1 2023.
What they are saying: “2024 is off to a strong start, driven by our unwavering commitment to customer centricity and year-round engagement,” said Emerald President and CEO Hervé Sedky. “This focus has not only fueled early re-bookings into 2025 but has also provided us with excellent forward visibility into our revenue trajectory.”
Why it matters to exhibitors: “For many businesses, trade shows are the No. 1 selling or marketing event of the year, and a big part of our on-going efforts has been to highlight this value proposition and make ROI more transparent by developing value-added tools and metrics that we believe will deliver an even better trade show experience,” said Sedky in the recorded Q1 earning call.
Q1 trade show highlight: KBIS 2024 posted record attendance of 41,500 KBIS registered visitors and more than 670 exhibitors, a 30% increase from 2023, according to a press release. Held Feb. 27-29 in Las Vegas, the 60-year-old show, which is produced by Emerald and owned by the National Kitchen and Bath Association (NKBA), was part of Design & Construction Week (DCW), the co-location of KBIS and The National Association of Home Builders (NAHB)’s International Builders’ Show (IBS).
Operational highlights: Emerald reported its core trade show business is strong with year-over-year growth in revenue driven by increases in exhibitors, attendees and pricing. In January, Emerald acquired Hotel Interactive, a producer of hosted buyer events serving the hospitality, senior living and casino industries via the BITAC series of events.
Deeper dive: According to Emerald CFO David Doft, the company’s successive quarter of solid organic revenue growth was supported by strong exhibitor counts and pricing trends. “Our customers rely on Emerald’s events to generate new leads and transact in high volumes, leading them to view our shows as an investment rather than an expense,” Doft explained. “As we grow our revenues, we expect to better leverage our operating cost base to drive even greater profitability and free cash flow generation.”
RELATED: Earnings: Emerald Reports Double-Digit Growth in Year-Over-Year Revenue for 2023
Looking ahead: “After completion of the first quarter and with the visibility we have into the remainder of the year, we believe the company is on track to deliver on our growth and profitability targets for the year of between $415 million and $425 million of revenue and between $110 million and $115 million of adjusted EBITDA,” Sedky said.
Stock conversion: “Last week marked a significant milestone for us as we completed the conversion of our outstanding convertible preferred stock into common stock,” Doft said. “This milestone not only simplifies our capital structure but also positions Emerald as an even more attractive investment opportunity as all shareholders can now share equally in the free cash generation of the business.”
Don’t miss any event-related news: Sign up for our weekly e-newsletter HERE, listen to our latest podcast HERE and engage with us on LinkedIn!
Partner Voices
One of the most iconic names on the Las Vegas Strip just got an upgrade. Mandalay Bay has everything that your business needs from a refreshed convention space designed to inspire productivity and creativity, to an impressive selection of world-class restaurants and amenities. If you're looking for a venue that's both inviting and innovative, you have to be here.
New Wave Experiences
Mandalay Bay continues to invest in a new wave of enhancements both in the convention space and within the resort as a whole. New restaurant openings including Orla by Michael Mina, drawing inspiration from the award-winning chef’s childhood in Egypt and with flavors and décor inspired by the spices found in markets common to coastal Mediterranean towns, as well as Caramá by Wolfgang Puck, bringing the essence of Italy and spirit of Wolfgang into one concept, are recent additions. The Four Seasons Hotel Las Vegas also experienced a recent remodel of all 424 rooms. Swingers, a high-end, adults-only golf and entertainment concept will debut in Fall 2024.
Enhanced Technology
Creating a truly effective conference venue requires careful thought into what a business needs: the right technology, capacity, and inspiration to bring ideas to the next level. As part of the resort’s refresh, Mandalay Bay implemented state-of-the-art technology upgrades, installing cutting-edge Cat6A Ethernet cabling throughout the convention center. This advancement doubles the frequency of data transmission, enabling lightning-fast speeds up to 9400% faster. The convention center now boasts 11 dynamic digital walls, spanning up to 24' x 13', strategically positioned for brand placements, sponsorships and targeted event messaging. Additionally, attendees can benefit from 20 double-sided 55" mobile flexible display units, facilitating effortless navigation to meeting rooms and events. RFID locks were installed on all meeting room doors, and over 200 motion detection cameras have been placed throughout the space.
Refreshing New Design & Fine Art
The newly remodeled convention space provides a bright and vibrant atmosphere that complements Mandalay Bay's tropical-inspired brand. Featuring white-washed walls and ceilings adorned with bold floral patterns in cerulean and coral tones, the space is complemented by warm walnut accent walls. In addition to the redesign of all pre-function spaces, meeting rooms and ballrooms, Mandalay Bay's 1 million square feet of exhibit space has undergone a rejuvenation, including new paint, covered pillars and relocated strobe lights.
Sustainable Spectacles
Mandalay Bay is committed to Focused on What Matters and creating more responsible meetings. Refillable water stations all available around the resort, cutting unnecessary plastic usage from single-use bottles.
The Mandalay Bay campus’ recent upgrades represent a bold step forward in redefining the Las Vegas experience. With a focus on innovation, sustainability, and unparalleled service, Mandalay Bay sets a new standard for excellence in business hospitality. Whether you're seeking cutting-edge conference facilities, world-class dining options, or simply a luxurious retreat, an unparalleled meeting experience awaits.
Add new comment