IR Magazine has released a new report investigating common practice and investor interest in earnings calls. The report examines how companies typically set up earnings calls and how investors engage with them. The report also looks at how both companies and investors evaluate the calls, as well as what useful practice and common mistakes investors find in earnings calls.
Findings are based on the IR Magazine Global IR Survey conducted from Q4 2021 to Q1 2022, as well as the IR Magazine Global Investor Survey conducted in Q4 2021. Data in the report is broken down by region, job title and company size.
- A quarter of companies pre-record their prepared remarks in earnings calls.
- More than seven in 10 investors say it is important for earnings calls remarks to be given live.
- Three in 10 companies use video for their earnings calls.
- More than half of investors say they consider having video with earnings calls important, with 21 percent considering it very important to have.
- The CFO typically has the most influence in preparing remarks for earnings calls, while investors are most interested in hearing from the CEO.
- More than six in 10 investors say they generally ask questions during earnings calls.
- When IROs are seeking to assess the success of an earnings call, the quality of analyst notes is considered the most important factor.
- The most important factor for investors in evaluating earnings calls is the extent to which prepared remarks provide a business update, closely followed by the quality of answers provided to analyst questions.