The Case for the Earnings Shareholder Letter
I’ve been noticing a shift lately, especially at tech companies (think Airbnb, Duolingo, Block, Roku, Netflix), where the earnings shareholder letter is no longer just an add-on. It’s becoming the core of their quarterly messaging.
As expectations around earnings communication shift, and with IROs looking to simplify their process, this approach seems to hold promise.
Not to be confused with the annual shareholder letter, this is a quarterly tool shared before earnings calls. It’s visual, long-form, and structured to tell the story clearly.
For some of these cos., the press release is brief and simply points to the letter. Prepared remarks are shorter than usual, and the earnings deck has become optional.
The result is a single, cohesive narrative that’s easy to follow. More room for real discussion on the earnings call.
Let’s take a look at how this approach is playing out and what IROs might take away from it.
What Airbnb and Duolingo Are Doing Differently
The letter carries the story
At both companies, the earnings shareholder letter serves as the primary communication tool. It covers financial performance, strategy, and business updates in one cohesive narrative.
It’s visual and human
Charts, timelines, and product visuals reinforce the story. But it’s not just about design. The tone is clear and approachable. The CEO’s voice comes through. There’s often a personal sign-off. The message feels like it’s written by people, not committees.
Everything else is lighter
The press release is short and simply links to the letter. Prepared remarks on the call are concise. These cos. aren’t posting earnings presentation decks. But the message still lands because the letter does the heavy lifting.
The Takeaways for IROs
1. Let the letter simplify your process
A strong earnings shareholder letter can reduce the need to repeat yourself across formats. It becomes your central narrative while the press release and prepared remarks simply support it.
2. Use it to humanize the message
Leadership’s tone and voice matter. A letter lets them speak directly and build trust, especially when context or nuance is important.
3. Combine narrative and visuals
Slides often need a voiceover. A clear paragraph can do more. A well-written, visual letter can be more engaging than a press release, and clearer than slides alone.
A Quick Reality Check
This model isn’t one-size-fits-all.
If you’re new to public markets or your audience expects more traditional materials, this shift may take time. And some CEOs and CFOs still prefer a more structured script or like to do a walk-through of slides.
Done well, the earnings shareholder letter helps you tell a clearer story. It gives investors and analysts a single source of truth, especially when expectations are shifting. It frees up the earnings call for real discussion and brings a more human tone that’s hard to deliver through a press release alone. And, I think it can save time for IR teams.
It’s certainly worth checking out.
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