Pre-Recorded Earnings Call: What is it and why is it important?

A Pre-Recorded Earnings Call is becoming increasingly popular among companies. Statistics show 45% of companies that held quarterly earnings calls from July 2023 to July 2024 chose to have them pre-recorded prior to their event. This is due to the potential that pre-recorded earnings calls can have on reducing the stress of these crucial quarterly events. Following the release of each quarter’s earnings reports, the financial community awaits the remarks of company executives to discuss the financial health and future plans for the company.

Earnings calls potentially cover sensitive topics and using the wrong type of language, or disclosing information that was not intended, could affect a company’s market perception or worse, land them in legal troubles. No executive wants to be speaking live to members of the investor community and suddenly blank on the state of their company’s financial health. Lucky for them, there are Investor Relations Officer’s that will work alongside executive teams, offering pre-record sessions that will eliminate the chances of making a mistake on the company’s big day.

There are various upsides for a company to choose to record their calls prior to their event, but before we can dive into the benefits of pre-recording, we need to start with the basics.

What is a Pre-recorded Earnings Call?

At the end of each quarter companies submit earnings reports on their financial performance. Following the release of these reports, most companies will host an earnings call. An earnings call is a conference call between company executives and members of the financial community—analysts, investors, media, etc.—and are a vital part of a company’s investor relations. As such, it is crucial that these calls are clear, concise, and well planned to maintain positive market perceptions and avoid any potential legal implications. With the impact that these calls can have on stock price and investors’ confidence, companies need to control as many factors as possible, especially when delivering remarks on their financial performance. One solution, used by nearly half of the market, is to record the call prior to the event.

Many companies use pre-recorded earnings calls as an investor relations solution that has given more control over their financial remarks and safeguards them against the possibility of making a mistake when speaking live. Pre-recording provides the opportunity to edit and review the presentation. This ensures proper articulation of the message and reduces stress on the event day.

Benefits of a Pre-Recorded Earnings Calls compared to live Calls

Each earnings call typically begins with the reading of scripted comments which goes over the company’s quarterly earnings report. The clarity and overall message of these remarks matter greatly because they can significantly impact the company's stock price. These quarterly events also impact the public’s perception of a company’s brand. Pre-recording allows for more control over the earnings call by providing a chance to review and revise the presentation, allowing for a carefully constructed narrative and better articulation of the overall message. By pre-recording the earnings call, companies can also carefully craft and polish their scripted comments. This ensures that the message is clear, concise and aligned with the company’s strategic objectives. In return there is a reduced risk of miscommunication or off-script remarks that could impact the stock prices or influence public perceptions.

The benefits of pre-recording your earnings call:

Simplicity: Reduce the stress on the day of your event by having control over all the factors of your company’s remarks to the financial community. Find relief in knowing there won’t be any awkward silences or accidental slip ups
Enhanced Clarity: Provides more control over the company’s messaging which in return allows for a meticulously crafted speech that accurately portrays the company’s financial performance and future plans
Refine your presentation: Recording your call prior to the event gives you an opportunity to edit and revise the presentation to ensure a successful and positive affect on investor relations
Sensitive Disclosures: Allows for the crafting of a careful and considerate narrative around sensitive topics ensuring the use of appropriate language and compliancy with regulatory standards
Inclusion: Speakers who can't attend on the day of the call can still participate by recording their remarks beforehand. Providing an opportunity for all members of the executive team to be included during the presentation will promote an idea of togetherness which will have a positive impact on IR
Better safeguard: Recording in advance provides the opportunity for editors and legal teams to review prior to the event to guarantee a flawless presentation that will not lead to negative implications

Optimize your Earnings Calls

Knowing how to utilize the various benefits of pre-recording can allow a company to elevate their quarterly earnings call and in return gain stronger shareholder communication and a more positive market perception. ViaVid, a leading provider of comprehensive conference call solutions, are experts in leveraging the benefits of pre-recording. Their senior team will provide guidance every step of the way, from the initial planning of an event to post call analytic reporting. With over 20 years of industry experience, ViaVid has hosted more than 50,000 events with operator assisted conference calls and pre-recorded sessions, leading to enhanced corporate communication and investor relations.

Companies typically hold pre-record sessions 24-48 hours before the actual earnings call, allowing time for editing and review. An editor will join the scheduled pre-record session to capture the presentation. Following the session, an editor processes the audio file and sends it back to the client for review and approval.

There are two ways to record a call:

Traditional:An assigned editor captures the audio presentation as the speaker dials into a phone line to record the content.
Digital (HD): The audio presentation is recorded digitally with the assistance of an editor. Recording digitally offers a higher quality of recording for speakers who can join using computer audio. An additional fee is required for this option

Optimizing your earnings calls with a pre-recorded session will help foster a strong investor community and ViaVid remains one of the top partners to have throughout this process. By leveraging ViaVid’s proven expertise with their extensive range of conference call and webcast solutions, companies can ensure each earnings call is delivered with utmost quality and impact.

Curious how a ViaVid pre-record session can help enhance your quarterly earnings calls?

To speak with a member of our team contact us.