Earnings: GES and Spiro Parent Company Viad Positive on 2024 After Double-Digit Revenue Growth in Q4 2023
February 15, 2024
Viad Corp., parent of Global Experience Specialists (GES) and Spiro, said it is moving into 2024 with momentum after revenues for the company’s experiential marketing and exhibition management services surged in the fourth quarter (Q4) of 2023, helped by increasing demand for in-person events by corporate clients and exhibiting companies.
On Feb. 8, the company posted revenue of $291.7 million for the last three months of 2023, up 17.6% from the prior-year period. Viad’s full-year 2023 revenues increased 9.9% YOY, from $1.1 billion in 2022 to $1.2 billion in 2023, according to the company’s results for the Q4 and the full year 2023.
GES, which includes Spiro, outperformed expectations with 7% full-year revenue growth and healthy margins, and growth and margin improvement is expected again in 2024.
Viad President and CEO Steve Moster said, “We delivered strong fourth quarter and full year results, with consolidated revenue and adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) exceeding the high-end of our guidance. GES’ results significantly surpassed our expectations due to increased corporate client spending on high-margin experiential marketing services.”
What’s behind the numbers? We take a deeper dive into the data and the shows that are driving the results.
2023 Results
Revenue in 2023 increased $111.4 million from the 2022 full year. GES revenue of $888.4 million increased $60.4 million (7.3%) YOY, primarily due to improved demand for exhibition management and experiential marketing services, which more than offset a $74 million year-over-year revenue impact from the sale of a non-core audio-visual services business in 2022 and the timing of major non-annual shows.
GES adjusted EBITDA of $68.2 million increased $6.9 million (11.3%) YOY, primarily driven by higher revenue and improved margin.
Related: Q3 EARNINGS: VIAD REPORTS REVENUE DOWN YOY WHILE EMERALD RECORDS DOUBLE-DIGIT REVENUE GROWTH
Q4 Results
Revenue of $291.7 million increased $43.7 million (17.6%) from Q4 2022. GES revenue of $249.5 million increased $35.6 million (16.6%) YOY, primarily due to continued underlying growth and about $9 million of incremental revenue from non-annual shows, partially offset by the loss of $13 million in revenue from a non-core audio visual services business that was sold in 2022.
GES adjusted EBITDA of $26.6 million increased $13.9 million YOY, primarily due to higher revenue and improved margin.
In Q4, GES produced a number of major trade shows, including:
- ICSC NEW YORK at the Javits Center
- LDI at the Las Vegas Convention Center
- National Safety Council Congress & Expo at the New Orleans Ernest N. Morial Convention Center
- ISSA Show North America 2023 at the Mandalay Bay Resort and Casino.
- Digital Signage Experience (DSE) at the Las Vegas Convention Center
- SupplySide Network West and Food Ingredients North America at Mandalay Bay Resort and Casino
2024 Outlook
GES is expecting revenues of $225 to $245 million in Q1 and an increase of low-double digits for the full year 2024. The guidance is based on three key assumptions:
- Major non-annual show with about $65 million of incremental revenue, compared with 2023, primarily in Q3
- Strong demand for GES’ experiential marketing and exhibition management services
- Increased exhibition and event show sizes
In January, the company announced leadership changes, with two major executive promotions: Jeff Quade to president of GES Exhibitions – North America and Jason Stead to GES Exhibitions – EMEA. Read our full story here.
Moster said,“We are entering 2024 with great momentum as we see robust demand for our extraordinary experiences at both Pursuit and GES. We expect to deliver full year consolidated adjusted EBITDA year-over-year growth of approximately 16% to 30% in 2024 with strong free cash flow.”
In Q1 2024, GES has already produced a number of trade shows, including:
- The International Production & Processing Expo (IPPE) at Georgia World Congress Center in Atlanta. The show floor was the largest ever with more than 1,400 exhibitors covering more than 621,000 net square feet of exhibit space.
- The launch of MAGIC at the Miami Beach Convention Center
- Safari Club International at Nashville Music City Center
- Seattle Boat Show at Lumen Field with more than 300 exhibitors
- Society of Critical Care Medicine Congress at the Phoenix Convention Center & Venues
- American Library Association’s LibLearnX at the Baltimore Convention Center
- Plant & Animal Genome Conference (PAG) at the Town and Country San Diego with 3000 attendees and 130 exhibitors
- The American Epilepsy Society Annual Meeting at the Orange County Convention Center with more than 160 exhibitors
Related: OUTLOOK FROM THE C-SUITE: FREEMAN AND GES LEADERS SHARE THEIR BIGGEST BUSINESS CONCERNS
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
MGM Resorts is renowned for its exceptional service and diverse venue options across Las Vegas, Detroit, Springfield, National Harbor, Biloxi, and Atlantic City, providing flexible spaces for meetings of any size. Beyond these offerings, MGM Resorts distinguishes itself through a strong commitment to social responsibility and sustainability, making it an ideal choice for your next meeting.
At the core of MGM Resorts' company values is its platform, "Focused on What Matters," dedicated to meeting customer needs while advancing socially responsible practices. This commitment is evident in several key areas:
Protecting Natural Resources
MGM Resorts is home to industry-leading recycling, renewable electricity and water conservation programs. Some highlights include a cogeneration power plant at ARIA, producing ultra-efficient electricity; one of America’s largest contiguous rooftop solar arrays atop the convention center at Mandalay Bay; and onsite wells that provide water for the celebrated Fountains of Bellagio, avoiding reliance on precious Colorado River water. These efforts and many more save on natural resources while boosting attendee satisfaction.
Committed to Community
Always striving to be good neighbors, MGM Resorts works to avoid food waste and combat food insecurity with the Feeding Forward program. In partnership with local food banks, they safely divert unserved food to food insecure members of the community. Since 2016, over 5 million meals have been provided, highlighting MGM Resorts' commitment to minimizing food waste and addressing community needs.
MGM Resorts supports clients in their responsible-meetings efforts, not only with efficient venues but also waste-reducing décor and signage; sustainable food and beverage options; and outreach to help planners communicate sustainability efforts to attendees. What’s more, they offer a Mindful Meetings series that puts attendee wellness first—through fitness and mindfulness activities, and in give-back events with local charity organizations.
Fostering Diversity & Inclusion
To MGM Resorts, a diverse and talented workforce is essential to success. By cultivating innovative strategies that consider multiple perspectives and viewpoints, the company creates an inclusive workplace culture that benefits its employees and community. MGM Resorts takes pride in being a welcoming home for veterans, individuals with disabilities, people from diverse backgrounds, LGBTQ+ community members, and more. This commitment to inclusion is reflected in the company's recruitment and hiring practices and its social responsibility initiatives. From the workplace to the community, MGM Resorts' commitment to diversity, equity and inclusion remains unwavering, and its efforts continue to create a more equitable and sustainable world for all.
MGM Resorts offers unparalleled service and venue options while standing out for its proactive approach to sustainability and community engagement. Choosing MGM Resorts for your next meeting means aligning with a company that values social responsibility, efficiency, and attendee satisfaction, ensuring a meaningful and impactful event experience.
Add new comment