Many of our customers schedule periodic conference calls with the investment community where a carefully selected panel or presentation team delivers the current performance of a business. Unfortunately, we know that things don't always work out as planned. That's why we've put together some helpful tips and tricks that will help you to get the most out of your next earnings call.
ALWAYS Stick to your call formatIt can be tempting to deviate from the earnings call format - for example you may have received some important news that you want to share with your investors, or your company CEO would really like to address a concern by bringing in an “expert ” to calm the waters. However, no matter your good intentions, it important to remember that the purpose of this call is to focus on your results.
An investors time is valuable and the reason they are attending your call is to understand managements view of how well the company is doing financially and operationally. Any deviation from this, could result in frustration amongst your investor community, which really isn't the result you were hoping for.
BE MORE STRATEGIC WITH YOUR SCHEDULING (especially WHEN SHARING BAD NEWS)If you are planning to share bad news on your call it may be wise to consider scheduling your call strategically in front of an earnings call scheduled by your competitors. Analysts are likely to ask these companies about the same issues that you have reported on your call.
You could also consider scheduling your earnings call to be a few days later than the earnings calls of other companies in the same industry. This clever scheduling allows you to listen to their earnings call recordings and provides you with a distinctive advantage, so that you can address any important questions being asked.
MAKE SURE THAT YOU Address difficult questions EARLYIf a difficult question is anticipated during your conference call, such as the departure of a key member of staff, it is advised that you address this within the scripted part of the conference call. This ensures that you can cover every aspect of this concern in its fullest form, without the risk of an ill prepared response during the Q&A.
Use call analytics and transcriptions to improve PERFORMANCEIf there are aspects of an earnings call that did not go well and if your conference call provider has the right technology at hand, you should be able to easily revisit, download and analyse any section from a recorded call and listen to it with the responsible person.
Using a tool like Speakserve’s automated transcription services and innovative keyword spotter you can easily pinpoint key conversations and replay any particular areas of concern, allowing you to follow up the discussion with actionable and strategic next steps.
make sure everyone keeps their emotions in checkEarnings calls can be high intensity conversations and individuals who are passionate about their business or the market place may sometimes respond emotionally (see Elon Musk's response on the Tesla Earnings Call for a lesson in what not to do).
In these instances, it is imperative that those who are speaking on the call keep their emotions in check, which is why conference calls are a fantastic tool in the IRO tool set. It allows us to have these high intensity conversations without the risk of wearing an emotionally charged response to a direct question on our face and carefully plan our response.
A good example of this is when a short seller is on the call and asks questions designed to rile up the CEO or CFO, the temptation to react can be strong. However, the best course of action is not to engage emotionally and to make a direct or factual response to any question asked and move swiftly and politely on to the next caller.
Capture post-call feedback from your participantsIt may be useful to reconnect with some of the participants in an earnings call to get further feedback or comments about how the call was managed and whether its contents should be altered in the future.
If you are using a professional operator that is supplied by an event call specialist such as Speakserve it is also important to feed any important information or format changes back to your call operator as well, so that you can work together to improve the next call experience.
Want to find out more about our Event Call Services for Investor Relations and Financial PR contact us or download our service document now.