Evolution of communicating quarterly earnings
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Illustration: Sarah Grillo/Axios
Earnings season has gone from jargon-laced calls and sleepy presentation decks to Instagram reels, livestreams and personalized letters.
Why it matters: Investors have limited time and, like most these days, shrinking attention spans. In response, corporate communicators are retooling how to creatively share the narrative behind the numbers.
The big picture: News consumption habits have changed, with institutional and retail investors increasingly turning to social media to inform their decisions.
- Investors say a company's digital channels are the most important form of communication — and 81% of investors have made recommendations based on a company's digital presence, per a recent Brunswick Group report.
- These owned digital channels are also viewed as highly trusted and outrank some media outlets, according to the report. For example, investors say LinkedIn and email newsletters are as trusted as the New York Times and The Economist.
The intrigue: Platforms that have traditionally been associated with retail investors — like TikTok, Instagram and Reddit — are gaining popularity and importance with institutional investors too.
- "The thing we say all the time is, why does this have to be boring?" Spotify co-head of global communications Grey Munford told Axios. "We are always [reevaluating] how we can make a piece of news or an announcement a little less corporate and a little bit more human."
- The "memification" of news has also made teams rethink how they deploy corporate communications, with the goal of it becoming shareable, added Munford.
Case in point: Spotify CEO Daniel Ek has been delivering earnings previews with direct-to-camera videos posted to Instagram and meme-friendly infographics to explain the quarterly report.
- Meanwhile, Netflix is known for sharing quarterly earnings using video, and T-Mobile has long provided a behind-the-scenes livestream and also takes questions submitted by LinkedIn and X users.
Between the lines: The presentation often highlights the company's product, while the delivery typically highlights the executive's preferred communication style.
- For example, former Twitter CEO Jack Dorsey famously livestreamed earnings on Periscope, while Airbnb CEO Brian Chesky has become known for his conversational-feeling shareholder letters, complete with carefully selected graphic designs.
Zoom in: A majority of investors follow not only the equities they cover, but also the CEO and other key executives from those companies, according to Brunswick's report.
- 43% want to see CEOs active on social media, and investors name LinkedIn, Instagram, YouTube and TikTok as important platforms for information gathering.
Yes, but: It's an all-encompassing strategy. Communication teams must also maintain a detailed investor relations website and work with traditional business media.
- Nontraditional media, like global outlets, podcasters, newsletter writers and business influencers are also prioritized.
What they're saying: Communications professionals are increasingly experimenting and assessing what works best for their corporate brand and business, says T-Mobile chief communications and corporate responsibility officer Janice Kapner.
- "The street no longer expects the same communications playbook for quarterly earnings," she said. "It's about being transparent and confident while standing out," she added.
What to watch: Artificial intelligence could change how analysts and the media engage with earnings reports, which could place more importance on the narrative around the numbers.
💠Thought bubble from Axios senior business reporter Hope King:
- "As retail investors grow in number, public companies are finding it more important than ever to bypass middlemen to reach their intended audience and tell their stories directly."
More from Axios: CEOs are finding new ways to court and communicate with retail investors
