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
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Partner Voices
MGM Resorts is committed to fostering an inclusive and diverse culture, not just among employees and guests but also within its supply chain. The company prioritizes procuring goods and services from businesses owned by minorities, women, veterans, people with disabilities, LGBTQ individuals and those facing economic disadvantages. This commitment is integral to MGM Resorts' global procurement strategy.
Through its voluntary supplier diversity program, MGM Resorts actively identifies and connects certified diverse-owned suppliers to opportunities within its supply chain. The company is on track to spend at least 15% of its biddable procurement with diverse-owned businesses by 2025, demonstrating that supplier diversity is not only a social responsibility but also a strategic business imperative.
Supplier diversity isn’t just the right thing to do – it’s good for business. A diverse supply chain allows access to a broader range of perspectives and experience, helping to drive innovation, entrepreneurship and resilience, while strengthening communities. At MGM Resorts, engaging diverse suppliers ensures best-in-class experiences for guests and clients. Supplier diversity ensures a more resilient supply chain while supporting economic development in the communities in which it operates.
The impact of MGM Resorts' supplier diversity initiatives is significant. In 2023, these efforts supported over 3,500 jobs across more than 30 states, contributed over $214 million in income for diverse-owned businesses and generated more than $62 million in tax revenue. The story extends beyond the numbers – it reflects the tangible benefits brought to small and diverse-owned businesses, fostering economic empowerment in their communities.
MGM Resorts also supports the development and business skills of diverse-owned businesses through investment, mentorship and education. Through the MGM Resorts Supplier Diversity Mentorship Program, the company identifies, mentors and develops diverse-owned businesses to fill its future pipeline, while providing businesses with tools and resources to empower and uplift. Since 2017, the program has successfully graduated 105 diverse-owned businesses and is on track to achieve its goal of 150 graduates by 2025.
MGM Resorts’ commitment to supplier diversity not only enhances its business operations but also plays a crucial role in uplifting communities and fostering economic development. This approach reinforces the idea that diversity is a powerful driver of innovation and resilience, benefiting both the company and the wider community.
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