Earnings Conference Calls: Tips for Enhancing Investor Relations

Earnings conference calls play a vital role in investor relations. They allow companies to present key insights on their financial performance in front of a large audience. These calls give company executives a chance to share their company’s story with the financial community. Earnings conference calls also provide a unique opportunity for companies to showcase their value. With these calls creating the largest audience that a company will have each quarter, it is important that there is a smooth execution. A poorly orchestrated conference call can undermine a company’s credibility. 

Companies must learn to take advantage of these quarterly events to stay ahead. Each event is another opportunity to remind the investor community of the company’s financial strategy. Through carefully planning each earnings event, companies can continue to grow investor interest and influence stakeholders. An earnings conference call creates the opportunity for company executives to tell the financial community how the previous quarter played into their overall plan.

To better understand the importance of earnings conference calls we need to start with the basics.

 

What are Earnings Conference Calls?

An earnings conference call is a way for companies to relay their financial information to all interested parties. Following the release of their earnings report for the quarter, company executives will plan on hosting an earnings conference call. These calls offer an opportunity for companies to showcase their value to the financial community. 

During the earnings call, executives will share their remarks on the company’s financial performance in the previous quarter. Companies can reiterate their financial strategy and illustrate how the previous quarter helped them advance towards their financial goals. If a company has performed poorly during their last quarter, executives can use their earnings call to reassure investors of their financial strategy.

An important aspect of the earnings conference call is the opportunity to present the company’s story to investors. Establishing the company story, and creating an understanding of the company’s vision, will help create investor trust. 

Companies should not only show their current financial health, but their plans to nurture it as well. Investors want to know how each quarter ties into the company’s long-term financial plan. Proper presentation of this financial information will not only enhance investor relations but foster a positive public image.

 

What are the Components of an Earnings Conference Call

There are three main stages of an earnings call: remarks from company executives, presentation of financial results, and the Q&A session. Companies can enhance their earnings call through the addition of an IR webcast. Implementing webcasting services to your earnings calls allows for a larger audience and in-depth analytics.

 

Opening Remarks

Most earnings calls will start with opening remarks from company executives. These remarks are intended to prime the audience for what is to come during the financial presentation and discussion. The opening remarks also can help safeguard against discrepancies between financial projections and financial results.

 

Presentation and Discussion of Financial Results

This stage of the earnings call goes over the last quarter’s earnings report. It is important to highlight if the company’s performance has helped reach their financial goals, or if it plays into a long-term plan. This will help strengthen the investor’s trust in the company’s financial strategy.

 

Q&A Session
The Q&A session of an earnings conference call holds much importance. This is an opportunity that allows members of the financial community: investors, shareholders, and analysts, to ask questions about the financial results. Answering questions is another opportunity for company executives to establish their values and strategy among investors. Companies must be proactive when preparing for their Q&A session so they can provide answers that help highlight their company’s vision. 

 

IR Webcast

Companies have the option to incorporate a webcast into their earnings call, providing an added dimension to the event. Webcasting boosts the visibility of the earnings call, enhancing investor relations by reaching a broader audience. The webcast offers a required registration, which gathers custom information and provides valuable metrics for executive’s post-event. Additionally, webcasting services enable the earnings call to be recorded, allowing those who missed the live event or wish to review it to watch it at their convenience.

 

How to Run a Successful Conference Call

The goal of each earnings conference call is to effectively communicate important financial information and strategy to the investor community. In order to successfully present the company messages during your earnings call, company executives must take time to plan ahead. 

 

Here are 5 best practices for investor relations to keep in mind when planning your next conference call: 

1. Preparation for the Earnings
   

   Call Preparation for an earnings call is essential for setting yourself up for a successful presentation. Conference call service providers should be contacted 3-4 months prior to your event to ensure all of the planning and logistics are set in place in a timely manner. Booking the date of your earnings call well in advance with a service provider will help create a timeline for the company and IR firms when gathering all of the necessary information. It will also provide the company with enough time to plan if the earnings call will be a live event, pre-recorded and/or streamed through a webcast. Planning in advance with conference call service providers confirms the day and time of your choice is reserved for you.

2. Craft your Narrative
   

   Earnings calls are sensitive in nature due to the discussion of important financial information. This is why these calls require careful consideration. Companies must evaluate their financial situation thoroughly and be diligent in how they plan to present their messages. The tone and clarity of the message is important in maintaining strong investor relations. Services such as pre-recorded earnings calls, can allow executives to refine their remarks prior to the actual event.

3. Smooth Presentation of Financial Results
   

   It is important to take the necessary precautions to ensure a smooth presentation. Having company messages be delivered in a clear and concise manner will help enhance investor relations. Partnering with a trusted conference call service provider is the best way to eliminate potential disruptions during the event. Using the expertise of a service provider allows for professional event management and will increase the effectiveness of your call. If you’re working with a new service provider or have new staff, it’s a good idea to request a demo or dry run. This is to ensure everyone is comfortable with the software for managing Q&A, advancing slides, playing videos and other functions. This investment of time will pay off.

4. Preparing for Questions
   

   An important stage of an earnings conference call is the Q&A session. Investors, stakeholders and analysts are allowed to ask direct questions, providing clarity on the company’s financial performance, strategies and future plans. These answers give executives an opportunity to foster investor trust and provide real time insights.

5. Engaging the Audience During an Earnings Call
   

   Taking time to craft a compelling narrative about your company’s story will help audiences resonate with it more. Having effective audience engagement during your call will help create active dialogue and will elevate your investor relations. Using interactive engagement strategies such as live Q&A, short video clips, polls and surveys will help the audience feel more involved.

Conference Call Services Providers

Companies should partner with conference call service providers for their earnings calls to ensure a professional, seamless, and secure event. Conference call providers, such as ViaVid, offer high-quality audio and video components, and help minimize technical issues that can disrupt the call. Partnering with conference call service providers will offer conferencing solutions such as a skilled operator, call recording and Q&A management. These solutions allow companies to handle investor questions efficiently and allows for the call to be reviewed for further insights.

By leveraging the services of specialized providers like ViaVid, companies can focus on delivering their financial messages, knowing that the technical and logistical aspects are expertly managed. It’s time to alleviate your stress and enhance your investor relations with the help of a conference call service provider. 

If you are using an Investor Relations Firm, ask them for their conference call service provider of choice. Many IR Firms have strong relationships with conference call service providers and sometimes have negotiated discounts in place for their customers.

 

ViaVid Conference Call Hosting

Are you ready to transform your earnings calls into engaging, dynamic events that captivate your audience and leave a lasting impression? Look no further! 

Unlike other conference call providers, ViaVid’s sole focus is hosting high quality and effective investor relations earnings events.  For over 25 years ViaVid has proven their expertise in earnings calls, annual general meetings and investor days, having hosted more than 50,000 investor relations events.

ViaVid also partners with the largest investor relations firms in the industry to put together all the pieces so that clients can achieve their desired outcome. The experienced staff at ViaVid work alongside IR firms to maintain strong communication among all of the involved parties. 

At ViaVid, they understand the importance of delivering an outstanding presentation during your earnings calls. That’s why they’re excited to introduce their tailored solutions designed specifically for your company’s earnings events. 

 

Here’s how ViaVid can help your company stand out:

1. Engaging content: With the help of ViaVid you can craft compelling scripts and presentations that resonate with your investors, stakeholders and analysts. They’ll help you articulate your financial results and strategic insights with clarity and impact.
2. Interactive features: ViaVid conference call and webcast solutions will enhance audience participation. Through live polling, Q&A sessions, and interactive multimedia elements, ViaVid helps keep the audience engaged throughout the presentation.
3. Professional Support: From pre-event planning to post-event analysis, ViaVid’s experience team will be by your side every step of the way. Their senior operators will ensure seamless execution and provide valuable insights for future improvements.
4. Customized solutions: Tailor ViaVid services to meet your unique needs and objectives. Whether you are looking for a simple audio call, an audio call with a webcast, a Zoom managed event with a live Q & A session, or a fully managed video event, ViaVid will help you to put the right solution in place for your event. 

 

ViaVid Conference Call Services: 

• Traditional earnings teleconferencing
• Customizable IR webcast
• Pre-recorded earnings call
• Video event management 
• Conference call transcription

ViaVid offers many additional benefits over typical conference call service providers. By partnering with them you can be assured of excellent customer service, consistent staff, a centralized booking team, and increased flexibility. 

Don’t settle for mediocre earnings calls. Elevate your presentation and stand out from the crowd with ViaVid’s conference call services.

 

Ready to make a lasting impression?

Email us or schedule a consultation at your convenience to discuss how we can help you achieve your communication goals.