Alpha’s Sam Gibbons Joins Education Panel with Reps from Duolingo, Five Below & Morrow Sodali

 

Another NIRI National Conference is behind us, and Alpha IR sent multiple senior leaders to this year’s event in San Francisco to hear new perspectives from our IR industry colleagues and share our own expertise on panels and industry-specific breakout sessions. For those unable to attend in person this year, here are our team’s key takeaways on the opportunities and challenges that may lie ahead for investor relations professionals.  We hope to see you June 1st – June 3rd, 2025 when the NIRI National Conference returns to Boston, which is home to Alpha’s second largest office in the U.S..

Big Picture

  • Today’s geopolitical and global macro-economic environments seem at odds with North American equity markets that are hovering near all-time-highs, and even some of the best economists are stumped. While it’s true that the U.S. economy has been resilient in the face of a rapidly steepening yield curve, a lot of quantitative evidence demonstrates that risk in the markets has never been greater. The impact of higher interest rates on equities and private credit dynamics are creating more complexities for IROs, and we are shaping up for a climactic end to this year as the U.S. Presidential election approaches. IR teams who can clearly articulate how their companies are positioned to navigate the intricacies of such unique times will separate themselves from the rest of the pack.
  • Artificial intelligence and machine-based learning are here to stay, but IROs too quickly embracing change or unwilling to do so, must recognize the possible positive and negative implications of both their in-house workstreams and those of their buy-side and sell-side counterparts. For example, while passive investors still exist and in the traditional sense are generally unreceptive to IR; the potential of AI could lead to portfolio managers utilizing machine-based learning to analyze corporate messaging in decision making. Most corporations and investment firms are investing behind these megatrends simultaneously, so IROs need to prepare themselves for new AI/machine-based learning curves.
  • There is a growing pushback from investors and companies-alike around the intentionally broad definition of the latest Wall Street acronym, ESG. The importance of good corporate citizenship and responsibility is not in dispute, but some say the lengths and costs undertaken by companies to ‘prove’ their efforts are genuine has gone a bit too far. Regardless of viewpoints, there seems to be consensus amongst NIRI advocates closest to policymakers in Washington, D.C. that implementation of the SEC’s new climate disclosure rules is likely to get delayed by one to two years due to an ongoing appeal process.

Telling Your Most Compelling Story: How the Right Guidance and Financial Metrics Can Elevate Your Investor Communications

Sam Gibbons, Managing Director in our Minneapolis office and current co-president of NIRI Twin Cities spoke to nearly 75 IR professionals on Monday afternoon, opining on selecting the right financial metrics to guide, getting your analysts in line, and not losing site of the long-term strategy.

  • With the shrinking of the sell-side, Sam emphasized the necessity of engaging frequently and often with your analysts to keep them apprised of not only your story, but your broader industry. With only a few analysts comprising your consensus, one rogue estimate can have significant influence over consensus and make the headline difference of beating, meeting, or missing consensus by a penny.
  • Sam stressed the importance of consistent dialogue with the Street and why perception work is critical in developing guidance and disclosure practices. Be open to suggestions from the Street and engage on the merits of respective opinions, and don’t simply rely on GAAP and Non-GAAP financial measures. Operational performance metrics can also be important drivers in building long-term credibility with investors
  • Investor Days are also helpful milestone events that can help combat short-termism on Wall Street by establishing long-term roadmaps for performance. Having a long-term strategy and performance targets in place can make navigating variability in quarterly results a little bit easier for IROs and their executives.
  • Sam explained one of the most common guidance practices observed is to quantitatively guide for the full year and revise as needed over the course of the year. Using qualitative and/or directional commentary on certain measures throughout the year to supplement the full year guide can also help steer analysts to the appropriate places.

Industry Breakout Session: Healthcare: Medical Devices & Services

Jackie Marcus, Managing Director in our Boston office and two-time past president of the Boston chapter, hosted one of NIRI’s industry-specific breakout sessions. Strictly for IROs in the industry, the roundtable provided an opportunity to share wisdom, problem solve, and discuss the hot button issues facing this highly regulated industry.

Attending IROs immediately wanted to hear projections from fellow practitioners on potential impacts should the White House change occupants. From tariffs on medical supplies produced in China, 25/75 Medicare reimbursement, privacy breaches, and the latest class of wonder drugs – GLP1s – Healthcare IROs need to keep an equally close eye on the three branches of government as they do on their industry.

The Flight Home

Our team headed home from the conference with a fresh perspective on how IR professionals must evolve our thinking on even the most fundamental components. Artificial intelligence will one day help us do our jobs better, faster, and smarter, but even the most sophisticated technology can’t replace the ‘relations’ in our job titles.

We’d be happy to speak with you and your team about the key learnings from this year’s event and brainstorm ways to evolve your IR program amidst these shifting dynamics.

We hope to see you in Boston!