Emerald Holding, Inc. (NYSE:EEX) Q3 2023 Earnings Call Transcript

Herve Sedky: Yeah. Very good question. So let me try and take each one of the questions. So in terms of our growth and speaking in very general terms, we see our growth in the midterm to be roughly half and half coming from our volume growth and our yields and pricing growth. So that’s how we’re looking at the construct of our growth plan. In terms of launches, we expect somewhere between 1% to 2% revenue growth – organic revenue growth from our launch activities. And that those are from some of the launches that we’ve discussed today and others that you’ve heard about, we launched a number of events over the course of the last two years that will continue to provide us with 1% to 2% organic growth. And in terms of your very good question on cost of labor and recruiting.

The environment has definitely been much better of late than it has been in the past. And so we find it easier to recruit for a couple of reasons. I think the market in general has improved, but also value proposition and where we’ve positioned Emerald in the industry makes it exciting for people to join and to help us achieve the goals and objectives that we have. So a combination of our value proposition and the market easing has certainly benefited us. And as a result, we are going to see – probably going to see some easing of the cost of labor, particularly versus last year.

Sami Kassab: Fantastic. Many thanks, gentlemen.

Herve Sedky: Thank you, Sami.

Operator: Thank you. We have reached end of our questions and answers session. I’d like to turn the floor back over to management for your further or closing comments.

Herve Sedky: Very good. Well, thank you all for joining. And in conclusion, we remain maniacally focused on the three pillars of our growth strategy through value creation. So those are customer centricity, 365-day engagement and portfolio optimization. We continue to see strong performance resulting in year-to-date revenue growth of 21% year-over-year and adjusted EBITDA increase of over 85% versus prior year. And looking forward, our – as I mentioned, our 2024 sales pacing data gives us a great deal of confidence in our ability to deliver double-digit top line growth into next year, with strong operating leverage. I would like to take this opportunity to thank all of the incredible people at Emerald who are doing such amazing work to help us continue to evolve our platform and our business and grow our business. And with that, I thank you all very much for joining our call this morning. Good-bye.

Operator: Thank you. That does conclude today’s teleconference. You may disconnect your lines at this time, and have a wonderful day. We thank you for your participation today.