MotiTest Q2 2023 Earnings Report
Key Takeaways
Viad Corp reported revenue of $320.3 million, a slight increase from $319.2 million in the same quarter last year. Net income attributable to Viad was $11.0 million, down from $19.8 million year-over-year. The company raised its full-year guidance due to stronger than expected GES performance. Pursuit's revenue and adjusted EBITDA reached a new all-time high for the second quarter.
Revenue increased slightly to $320.3 million, driven by international tourism and demand for exhibitions and events.
Net income attributable to Viad decreased to $11.0 million due to lower GES adjusted EBITDA, higher interest expense, and higher taxes.
Pursuit's revenue reached a new all-time high for the second quarter, reflecting the strength of the Refresh, Build, Buy growth strategy.
GES' results exceeded expectations with higher than anticipated same-show revenue growth and margin enhancing lean activities.
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Forward Guidance
Viad Corp raised its full year guidance based on GES' second quarter performance and expects continued strong demand for GES' live events and Pursuit's leisure travel markets over the balance of the year. For the third quarter, the company expects another record-breaking quarter at Pursuit with significant growth in adjusted EBITDA, partially offset by lower GES revenue due to show rotation and the sale of ON Services.
Positive Outlook
- Revenue is expected to grow in 2023 driven by the lifting of all COVID restrictions at the Canadian border.
- Revenue is expected to grow in 2023 driven by the acceleration of new experiences.
- Revenue is expected to grow in 2023 driven by the ongoing focus on improving the guest experience.
- Expect FY revenue growth from stronger demand for exhibition and event services.
- Expect FY revenue growth from new Spiro wins.
Challenges Ahead
- GES revenue is expected to be negatively impacted by show rotation ($30M for FY; $50M for Q3).
- GES revenue is expected to be negatively impacted by the sale of ON Services ($50M for FY; $14M for Q3).
- We intend to prudently invest in talent and capabilities at Spiro to fuel growth in 2023 and beyond
- Third quarter will be offset by lower GES revenue due to show rotation
- Third quarter will be offset by lower GES revenue due to the sale of ON Services