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Sep 30, 2022
MotiTest Q3 2022 Earnings Report
Reported significant growth, driven by stronger demand in Pursuit and GES, and surpassing 2019 levels.
Key Takeaways
Viad Corp reported net income of $40.1 million for Q3 2022, with revenue increasing by nearly 64% year-over-year. Consolidated Adjusted EBITDA reached $82 million, surpassing Q3 2019 levels, driven by strong performances in both Pursuit and GES.
Q3 2022 results were significantly ahead of 2021 and in line with prior guidance.
Pursuit posted record revenue, driven by new experiences and strengthening international leisure travel.
GES delivered strong growth, driven by continued industry recovery, improved cost structure, and solid execution.
Viad is accelerating growth by scaling Pursuit, transforming GES Exhibitions’ cost structure, and strengthening Spiro’s capabilities.
MotiTest
MotiTest
Forward Guidance
Viad expects the strong recovery across its businesses to continue into the fourth quarter. Pursuit anticipates higher adjusted EBITDA compared to Q4 2021, driven by improved same-store revenue and growth in newer year-round attractions. GES expects positive trends in same-show revenue and corporate client spending to persist, resulting in higher fourth quarter revenue than in 2021.
Positive Outlook
- Canada Q4 same store revenue improves year-over-year during this seasonally slow quarter (vs. negative $9.9 in 2021)
- New year-round experiences continue to ramp up as guest awareness builds
- Revenue management efforts and pricing power help offset wage rate and other inflationary pressures
- Exhibitions same-show revenue will generally remain at or better than 90% of pre-pandemic levels in Q4
- Experiential marketing budgets of major Spiro clients will remain at 80%+ of pre-pandemic levels
Challenges Ahead
- Canada Q4 same store revenue improves year-over-year during this seasonally slow quarter (vs. negative $9.9 in 2021)
- Canada Q4 same store revenue improves year-over-year during this seasonally slow quarter (vs. negative $9.9 in 2021)
- Canada Q4 same store revenue improves year-over-year during this seasonally slow quarter (vs. negative $9.9 in 2021)
- SG&A higher year-over-year to support increased business activity and future revenue growth
- Run rate remains similar to YTD