Emerald Holding's 2025 Q1: Contradictions in Global Attendance, EBITDA Growth, and AI Impact

International attendance and impact of global disruptions, EBITDA growth and seasonality impact, international event attendance and impact, cost management and efficiency gains, impact of AI on content and marketing are the key contradictions discussed in Emerald Holding's latest 2025Q1 earnings call.



Revenue and EBITDA Growth:
- Emerald Holding reported double-digit growth in revenue and adjusted EBITDA for Q1 2025, with total revenue reaching $147.7 million compared to $133.4 million in the prior year quarter.
- The growth was driven by strong performance across key initiatives, including a refined event portfolio and successful events like Kbiz and the International Pizza Expo.

International Sales and Exposure:
- Emerald sold over 90% of its full-year target for international exhibitors revenue and reported limited exposure to international markets, with approximately 10% of total revenue from international exhibitors.
- While experiencing pressure on sales from China and Canada, the company saw strength from countries like Turkey, Brazil, and the United Arab Emirates, benefiting from increased sales efforts in these markets.

Acquisitions and Strategic M&A:
- Emerald completed the acquisition of InsureTech Insights in March and received regulatory approval for the acquisition of This Is Beyond, a collection of high-end experiential events.
- These acquisitions align with the company's focus on high-growth sectors and help expand its event portfolio, contributing to revenue growth and EBITDA margin improvement.

Cost Management and Operational Efficiency:
- Emerald reported a year-over-year decline in SG&A expenses and achieved strong free cash flow of $10.8 million, excluding event cancellation insurance.
- Cost efficiency was achieved through lower compensation and travel expenses, the consolidation of Emerald's platform, and the implementation of artificial intelligence applications in various business areas.

Guidance and Financial Outlook:
- The company reiterated its full-year 2025 guidance of a range of $450 million to $460 million in revenue and $120 million to $125 million in adjusted EBITDA.
- The guidance considers potential impacts of tariffs and reassuring sales efforts in new markets, while maintaining flexibility to adapt to changes in the landscape.