Conference Call

What Is a Conference Call?

A conference call is an event in which investors can stand by listening to a company's management team detail aspects of the current quarter as well as forward, or projected, earnings growth. The call typically starts with a continuous message from management wherein the chief executive officer, chief financial officer, and other C-level executives welcome participants and congratulate the internal team for a great quarter. This prompts a bigger discussion about the company's financials and other key performance indicators (KPI) that drive business operations.

For a company like Meta (META), formerly Facebook, Mark Zuckerberg may additionally address the waiting data and privacy issues ruling titles nowadays. After comments from management conclude, the meeting is opened up for questions. While the average investor can stand by listening to the call, the reporting company will frequently address inquiries from analysts. This type of conference call is otherwise called an "earnings conference call," "expert call," "earnings call" or "results-earnings call."

How a Conference Call Works

Conference calls are held four times per year, typically after each quarterly earnings announcement. More often than not, the calls are recorded and broadcast live on the internet. A few services likewise transcribe conference calls for investors to consume the content through written text. The company management participating in the call as a rule includes a blend of the CEO, CFO and senior vice presidents.

The CEO might offer general comments about the quarter, any controversy that might have occurred, and some 10,000 foot view forward-looking statements. The goal for the CFO and other C-suite executives is to address specific financial metrics that impacted quarterly outcomes. That might include revenue growth, profitability, margin expansion and any KPI specific to the company. For instance, Twitter frames a considerable lot of these high level numbers notwithstanding [monthly active users](/month to month active-client mau) (MAU) and promotion revenue.

After some time, the operator will open the line with a responsive period from analysts. A few inquiries you typically hear on a conference call include financials, forward-looking statements, and background on business operations.

Benefits of a Conference Call

For some companies, the conference call can alleviate fears created during the quarter or reinforce the message of positive future growth. In the event that a company was the center of controversy, missed examiner's evaluations or issued weak guidance, the call is an opportunity for management to address that weakness. It's beneficial for analysts to get the extra background about financial performance and business operations before they change price targets or recommendations.