Emerald Holding Reports Mixed Q3 Results, Net Loss Amid Revenue Growth

Emerald Holding, Inc. reported its financial results for the three and nine months ended September 30, 2024, highlighting a mixed performance in revenue and profitability compared to the previous fiscal period. For the three months, revenues reached $72.6 million, a slight increase from $72.5 million in the same period of 2023. However, the company experienced a net loss of $11.1 million, a significant decline from a net income of $10.7 million in the prior year. This shift was attributed to lower tax benefits and higher intangible asset impairment charges, which totaled $6.3 million for the quarter.

For the nine-month period, Emerald's revenues increased to $292.0 million, up from $281.3 million in 2023, reflecting a 3.8% growth. Operating income for this period also improved to $26.0 million, a 75.7% increase from $14.8 million in the previous year. Despite this, the company reported a net loss of $2.9 million, contrasting with a net income of $9.7 million for the same period in 2023. The decline in net income was influenced by increased interest expenses and non-cash impairment charges.

Emerald's cash and cash equivalents decreased to $188.9 million as of September 30, 2024, from $204.2 million at the end of 2023. Total assets rose slightly to $1,059.8 million, while total liabilities increased to $668.7 million. The company’s stockholders’ equity improved significantly to $391.1 million, compared to a deficit of $92.5 million at the end of 2023, largely due to the conversion of redeemable convertible preferred stock into common stock.

Emerald continued its strategic growth through acquisitions, including GRC World Forums and Over the Pond Media, both completed in August 2024. The company also reported a decrease in selling, general, and administrative expenses, which totaled $40.8 million for the third quarter, down from $41.6 million in the previous year.

Emerald's business remains heavily reliant on trade shows, which accounted for approximately 86% of total revenues in the third quarter. The company is focused on organic growth and enhancing participation in its events, while also navigating challenges posed by economic conditions and industry cyclicality. The share repurchase program was extended, allowing for an additional $25 million in repurchases through December 31, 2024.