Along with quarterly financial statements, earnings calls are some of the most anticipated events in the stock market. An earnings call transcript is a written conference call record wherein the Chief Executive Officer (CEO), Chief Financial Officer (CFO), and other relevant executives discuss the company’s current and expected performance. Many companies release earnings calls as part of their explicit regulatory obligation to the Securities And Exchange Commission (SEC) to release financial results to the public.
Transcripts are sometimes provided in lieu of uploading the actual calls, giving investors faster access to the information they need. However, choosing the right transcription company may be trickier than just getting someone to type up the call.
In this article, you’ll learn that:
- Earnings call transcription is a delicate process that requires skill, precision, and effective time management. Public companies looking for transcription providers must consider accuracy, expertise, and price factors. Delivery times are especially important, as earnings call transcripts are typically released within the day.
- Earnings call transcription provides numerous benefits for private and publicly traded companies, including accessibility, fostering positive investor relations, promoting coverage, and legal and regulatory compliance.
- The best transcription companies need to provide a balance between accuracy, quality, and affordability. Ditto Transcripts offers all three with no compromises.
What Are Earnings Calls?
Before we start with this ultimate guide, let’s get definitions out of the way.
Earnings calls are events wherein executives discuss the company’s past performance and future outlook. These calls typically happen at or after the release of a company’s financial results, an event eagerly awaited by the market since it tends to contain plenty of information that investors and analysts can use to guide their trading strategies. They are also done over a conference call or a webcast, which allows executives to answer questions from analysts and investors.
Earnings calls often accompany an official press release that puts the numbers into proper context.
What Are The Things To Expect In An Earnings Conference Call?
Here are just some of the topics discussed during an earnings call:
|Company executives provide prepared remarks summarizing financial results and key highlights.
|Discussion of revenue, profits, losses, earnings per share, and other financial metrics for the reporting period.
|Overview of the company’s strategic plans, initiatives, and any significant events.
|Explanation of factors influencing the company’s annual report and financial results and contextualizing the reported numbers.
|Outlook and Guidance
|Forward-looking statements, forecasts, and guidance for future performance.
|Analysis of market conditions, industry trends, and competitive landscape.
|Highlights of operational activities, changes, and milestones achieved.
|Analysts and investors ask questions, and executives provide responses and additional insights.
|Risks and Challenges
|Discussion of potential risks, challenges, and uncertainties affecting the business.
|Plans for capital expenditure, dividends, share buybacks, or debt management.
|Declaration or update on dividends for shareholders.
|Updates on governance practices, changes in leadership, or other corporate governance matters.
|Safe Harbor Statements
|Outlines provisions and protective safeguards against legal liability and the conditions that need to be met to qualify for such protection.
|Discussion of environmental, social, and governance (ESG) initiatives and performance.
Earnings calls can provide a wealth of information, which might be hard to sit and listen to. Additionally, some analysts might seek answers to certain questions or specific information, like gross margins, EPS, revenue, net income, etc. So, what can companies do to ensure investors and analysts get the information they need from earnings conference calls without spending too much time?
Simple. They can transcribe their earnings press releases.
What Are Earnings Call Transcripts?
Earnings call transcripts are written verbatim records or summaries of the spoken discussions during a company’s quarterly earnings call. Current and previous earnings calls are typically available in the investor relations section of their websites.
Transcribers listen to the earnings call and type the audio into a text file, typically verbatim. Once proofread and edited to specifications, these transcripts are sent back to the client for immediate release.
Transcribing earnings report calls can offer a wide range of benefits for the company, analysts, and investors. Here are some of them.
Benefits of Earnings Call Transcripts
|Transcriptions make content accessible to a broader audience, including those who prefer reading or have hearing impairments, ensuring easy access and understanding. They are also digitally searchable, making it easier to find the required information.
|Reference for Analysts and Investors
|Analysts, investors, and financial professionals use transcripts for accurate and detailed information, reviewing specific details and management commentary at their own pace. It also fosters open discussion of financial results.
|Research and Analysis
|Transcripts are valuable for researchers and analysts conducting in-depth studies on company performance, industry trends, and market conditions, facilitating keyword searches.
|Transcripts help company management meet regulatory requirements for disclosure and transparency, as some authorities may require companies to provide them.
|Training and Onboarding
|Helpful in training new employees or educating team members on financial modeling and reporting practices, providing a detailed account of the company’s financial communication.
|Media and Press Coverage
|Journalists and media outlets rely on transcripts to accurately report on a company’s financial results, providing reliable information sources for news stories and analyses.
|Creating a historical archive of the company’s financial performance and strategic discussions is valuable for tracking management sentiment and business evolution.
|Serving as a transparent communication tool with shareholders, allowing them to review and understand the company’s financial results and future plans.
|In legal matters or disputes, transcripts can clarify statements made by company executives, mitigating misunderstandings.
|Transcripts can be repurposed for various content formats like blog posts, articles, or social media updates, extending the reach of earnings call information to a wider audience.
Factors To Consider On How To Get Earnings Call Transcripts
Googling “earnings call transcription” will yield many transcription companies offering their services. It can be overwhelming to sift through all that information. However, due diligence is important in business, investing, and choosing transcription partners. So, let’s discuss the factors you need to consider before choosing.
First and foremost, earnings calls are formal, professional events. The number of executives may vary depending on the company, but you can be sure that a handful are there. Then, there are analysts, investors, and reporters asking questions. After the call, the transcripts are released. Can you imagine releasing a transcript full of errors to them and the public?
A lot can ride on the accuracy of your earning call transcripts. Here are just some of the potential consequences of errors:
- Misinterpretation of company performance
- Incorrect financial analysis by investors and analysts
- Misleading information for shareholders
- Regulatory compliance issues
- Loss of investor and market trust
- Legal implications for the company
- Damage to company reputation
- Erroneous media and press coverage
- Flawed research and academic studies
- Inaccurate historical record of company performance
- Misguided business decisions based on incorrect data
- Potential impact on stock prices and market perception
Always look for a company that offers 99% accuracy. Anything less puts your company’s reputation and stock price at risk. This is also why we don’t suggest using automated transcription solutions, as they are only 86% accurate. Ditto Transcripts offers 99% accuracy guarantees for all earnings calls and 100% human-powered transcription solutions.
Financial terminology can be complex to the inexperienced and uninitiated. That’s why choosing a company with substantial and provable financial transcription experience is essential to maintain accuracy and quality. Otherwise, you’d be stuck with a transcription partner who has to look up EBITDA or how to transcribe the word “P/E ratio.” Whether accuracy or turnaround times will be affected by their lack of skill would be a coin toss—and it will surely land on one or the other.
With Ditto, you’re getting the services of pros. We create accurate, high-quality transcripts tuned to your specifications without spending weeks on one.
Financial data may be public, but that doesn’t mean you should be skimping on security. Ensure your chosen transcription provider has strict confidentiality policies and secure handling of sensitive financial data. Look for providers with top-of-the-line encryption, elevated user access management, redundant security measures for additional protection, and VPN integration like Ditto Transcripts.
Earnings call transcripts are typically released within the day of the call. If the call happens in the evening, the transcripts should be available in the morning at the latest. With this time crunch, you need professional transcription services to ensure that transcripts are delivered on time without sacrificing quality or accuracy.
Customization And Flexibility
Companies often have specific documentation formats for performance and future plans or discussing their financial results for a given reporting period. Transcription services must be able to accommodate such requests and provide transcripts that are in line with the company’s official image.
Ditto Passes All Technical And Fundamental Analysis For Transcription
Choosing the right transcription company should be easier than running complex analyses for financial metrics. Ditto Transcripts offers everything you can possibly need from a transcription service provider.
Any transcription project comes with our near-perfect accuracy rates, affordable and flexible prices, fast turnaround times, excellent security, and top-notch customer service. And unlike with quarterly earnings calls, you have the opportunity to ask us about anything related to transcription at any time within business hours.
Ditto Transcripts is a Denver, Colorado-based FINRA, HIPAA, and CJIS compliant transcription services company that provides fast, accurate, and affordable transcripts for individuals and companies of all sizes. Call (720) 287-3710 today for a free quote, and ask about our free five-day trial.