Backdrop
Public Company underperformed internal financial projections leading to a reduction in guidance, stock price underperformance, increased shareholder turnover. As a result, management had increased IR responsibilities of assuaging existing investors and meeting with new investors, given the stock performance.

Gilmartin Assignment
Gilmartin’s role as IR advisor was expanded to support the CFO office with Financial, Planning and Analysis with the goal of creating a more reliable internal forecast to be used a basis to reset external guidance. The objective was to review the current year forecast and analyze operating assumptions to build management’s confidence in the outlook so as to be able to update guidance with new insight and credibility around the business.

Gilmartin Role, Support & Execution
Gilmartin’s role as IR advisor was expanded to support the CFO office with Financial, Planning and Analysis with the goal of creating a more reliable internal forecast to be used a basis to reset external guidance. The objective was to review the current year forecast and analyze operating assumptions to build management’s confidence in the outlook so as to be able to update guidance with new insight and credibility around the business.

• Gilmartin developed a novel analytical framework to evaluate forecast assumptions vs prior period results.
• Gilmartin created a financial modeling infrastructure to evaluate real time performance in the context of the forecast period.
• Gilmartin built an independent company financial model and forecast use to challenge operational assumptions from business unit leaders.

Gilmartin’s tools and analysis drove more thoughtful discussion around forecast assumptions and business unit performance expectations in the c-suite. Gilmartin modeling analyses lead to broader strategic discussion around investment priorities to drive revenue growth.

Results
Management was more informed about the underlying forecast and implied performance of the business units. Management was able to confidently provide financial guidance for the current period that represented a credible update for investors. The following quarters of financial performance were consistent with the updated guidance which allayed investor and analyst concerns. The CFO was able to articulate an updated forecasting methodology which resonated with key top shareholders, resulting in lower investor turnover…and fewer updates.