An investor relations (IR) press release isn’t the sort of thing PR professionals think they’ll be writing when they start in the industry. After all, this is a press release written for the purpose of sharing business news with investors via the media.
That’s different from the usual job in public relations, which is to focus on the public and building relationships with audiences to boost a brand’s image.
But it’s through investor relations that companies build confidence with shareholders and communicate what’s happening in the business. Investor relations is therefore an important – if sometimes overlooked – area of brand management that keeps the shareholder base happy.
Understanding the broader industry landscape is crucial in crafting effective investor relations press releases, as it helps companies highlight their unique strengths and ensure clear messaging that aligns with industry context.
What’s more, it’s through press releases that companies can most easily share financial results, major business updates, and strategic plans.
After all, an investor relations press release is a formal statement that publicly traded companies send out to share important information with shareholders and the financial community. It might not be published in the Wall Street Journal, but it will be available to those who need to know.
Why Do I Need These Press Releases?
Normal press releases go out to a wide range of media outlets with the aim of informing audiences about everything from new products and services, to campaigns, achievements, and positive news.
It’s rare that a company will communicate openly about detailed market performance. That sort of data is shared with the investment community on more private channels.
Well, part of an effective IR strategy is to share headline news with relevant audiences, using the press release style to outline the key points. Transparency in addressing challenges that may impact a company's performance is crucial, ensuring stakeholders understand any deviations from expected results.
Your story will go to trade websites and business community groups, rather than newspapers or TV networks. It gives investors immediate, useful context of what to expect in a wider company report, which may be attached to the press release.
In this guide, we’ll look at what goes into a press release for investors, and the best practices for writing one. Then we’ll look at the types of news they cover and some common mistakes to avoid.
In this article:
What Is an Investor Relations Press Release?
Key Elements of an Investor Relations Press Release
Best Practices for Writing Investor Relations Press Releases
Types of News Covered in Investor Relations Press Releases
Big Mistakes You Can Easily Avoid in Investor Relations Press Releases
Why Strong Investor Communication Matters
Frequently Asked Questions
What Is an Investor Relations Press Release?
Any effective investor relations strategy depends on press releases to help spread the right message to the right people. They keep stakeholders informed about important company news and financial updates, in a formal and professional way.
This professionalism is important in business. Investors who discover the financial results of their investment via social media or TV news won't be happy. The press release is there to help inform investors directly of what's going on.
Now, these press releases are usually published on news wires, such as Cision PR Newswire and Bloomberg News Service. Media vendors can then pick up the news and publish it.
Financial-focused publications are the main recipient of these types of press releases, although big stories can make it into the newspapers.
There are a few things that you'll typically see on one of these press releases. Mostly it's financial results and projections, which are often paired with quotes from company executives and updates on business strategy. A quarterly earnings release, for example, is the sort of thing shareholders expect to receive.
Remember, these releases are just one tool in your investor toolkit.
Key Elements of an Investor Relations Press Release
Now, let’s look at these press releases in a little more detail. Remember, a press release for investors will look quite different to one intended for the general public. Here are a few pointers to help you stay on track.
Including key performance indicators (KPIs) in your investor relations press releases is crucial. KPIs help align your company's performance with market expectations, build credibility, and facilitate comparisons with peers, contributing to a strong strategic narrative and long-term investor confidence.
Start With a Clear and Concise Headline
Being direct is important when it comes to speaking to investors. They need to know if your release is good news or bad news for their investment. So, be clear with your headline.
Keep it short and concise, and put important figures front and center. If your business doubled its sales across Q2 then that's what you can lead with. If you're suffering a cash flow problem, then you need to be up front about that too.
Avoid hype or exaggeration. Stick to facts and simple things like quarterly updates. Make sure the headline matches the content of your release.
Top the Piece With the Most Important Details
Like with any news release, it’s crucial you lead with the important info. Investors hate it if they feel you’ve buried bad news somewhere down the article.
Explain the company's story in simple English. A clear and compelling narrative is essential to communicate why this release is being issued and what it means for investors.
Remember, you want your investment community to understand what’s going on. You can’t expect them to dig through the release looking for hidden info.
Use of Financial Data and Performance Metrics
Your key numbers should be really easy to understand. This covers:
Sales growth
Turnover figures
Share values
Market analysis
Imagine you're putting the numbers up on a screen in investor meetings. Include all the important elements like trends, year-over-year comparisons, and anything else you think an investor needs to know.
If there's anything that looks a bit off, explain why it's unusual. Perhaps a one-time event affected your results. This is where you can start to reassure investors if you have bad news to share.
Quotes from Leadership
Having a few words in there from the leadership team is a nice touch when your press release contains good news. If you’re sharing bad news, then you need a leader to make a statement.
Look to include quotes from the people at the top. That could be your CEO, CFO, or other top executives.
The idea is that these will provide context for your results, as well as articulating company strategy. You could also ask them to look ahead to future goals, or explain how they’ll help the company – and its investors – out of a difficult situation.
Whatever they want to say, these quotes should be short and focused. Align leadership quotes with the company's strategy to ensure they address key questions. If more info is needed, then phone interviews and shareholder meetings are far more effective for reassuring people.
Forward-Looking Statements
When it comes to wrapping up your release, it's a good idea to look to the future.
For example, you could end on some revenue or earnings forecasts, or a sneak peek at your company's long term strategy. Perhaps you've got some planned initiatives or investments that stakeholders would be interested to hear about.
Of course, predictions can be tricky territory. It's always a good idea to stick to phrases like "we expect" or "we aim to" rather than making firm promises.
A brief legal disclaimer about forward-looking statements might be a good idea, too.
Best Practices for Writing Investor Relations Press Releases
The goal of a press release aimed at the investment community is to get key financial information in front of shareholders, analysts, and potential investors.
To do that, you'll need to make sure the information is clear and accurate.
Getting your investor relations strategy right will also come in handy should you face any need for crisis management, as you'll be able to share information in a well-prepared and thoughtfully planned manner.
Indeed, an effective press release simply needs to keep investors informed, regardless of the news contained within it.
Ensure Regulatory Compliance
As you write your press release, you need to be sure that it follows all the relevant regulations. It's a good idea to check SEC guidelines for public companies and include required disclosures.
Keep your compliance details clear and simple when explaining financial results.
You should also include a safe harbor statement for forward-looking information. That means you're not legally-tied to any predictions you might make about the future. If you say "we're on track" to reach a particular financial goal, no one can sue you if you don't!
Yes, that sounds a little scary, but it's the sort of small detail that is required when you're releasing financial information to long-term investors, who will be watching how the company performs in the future.
Obviously, you want to make sure that any publicly available data is accurate too. Double-check all numbers for accuracy before releasing. If you're unsure about compliance, check in with your legal team.
Timing and Distribution
Press release timing can be a bit of a minefield. First of all, you need to coordinate with your financial team to ensure all data is ready and accurate. You also need to make sure you file certain releases within regulatory timeframes, in order to adhere to investor terms.
Be mindful of the time and day you issue a release. You'll look like you're burying bad news if you release a statement on a major public holiday.
When you're ready to hit send, a newswire service like Cision PR Newswire might be the best way to distribute your release widely.
You'll probably also want to publish it on your website, especially if you have a section that's targeted at investors.
Types of News Covered in Investor Relations Press Releases
So, what should you include in your press release? Basically, it's anything that impacts shareholders and the financial community.
Putting this information out in the form of announcements keeps investors informed about important developments and financial performance. That means they're more likely to trust and stick with your company.
After all, have you ever heard of an investor who doesn't want to know how their money is being spent? Here's what you should include:
Earnings Reports and Financial Results
Earnings releases are a crucial part of investor communications. They give a snapshot of a company’s financial health over a specific period, usually quarterly or year-on-year.
Addressing a company's performance in these reports is essential, especially during challenging times. After all, it's these releases that usually include things like revenue figures, net income, earnings per share (EPS), and year-over-year comparisons.
You’ll often see bullet points highlighting the main results at the top of the release. This makes it easy for readers to grasp key information quickly.
Press releases also explain factors that affected the results. That could be things like market conditions, new product launches, or cost-saving measures.
Mergers, Acquisitions, and Partnerships
Companies need to tell investors right away when they join forces or make big deals. Often the news is already out there, especially if a merger or acquisition takes a long time to complete.
In this case, your press release should explain who's involved in the deal, the financial terms, and the expected benefits for the company. It needs to be positive, especially if the news requires a fresh search for potential investors.
It's good to get a timeline in there too, if it's a merger in process. This can give investors confidence in a company's ability to keep operating even during unique times.
Make sure it's clear how the deal fits into the company's strategy. For example, the release could talk about expanding into new markets or adding new products.
It can be a nice touch to include quotes from leaders of both companies. These statements help build excitement and show that everyone is working together.
Stock Splits, Buybacks, or Dividends
Now this is where investors suddenly start reading a little more intently. Companies can use press releases to announce changes that affect their stock. In turn, it affects the investors.
There are a few examples here. The press release could be announcing stock splits, which is when a company increases its number of outstanding shares. It could also share news about buybacks. That's when a company purchases its own stock from the market.
Finally, it might share updates about dividends (regular payments to shareholders), with an explanation on why a dividend has been issued.
Investors need to know this information as it directly impacts their investment. Dividends are a nice return, while stock splits might make shares more affordable. Buybacks often signal confidence in the company's value and the right investors will appreciate the news.
Leadership Changes or Corporate Governance Updates
Investors will always want to be the first to know if there are any leadership updates in your company.
That includes new appointments at CEO or CFO level, or board member changes. It could also include changes to company policies.
In this case, the announcements usually include the new leader's background and qualifications. They should be quoted with a few sentences about their role, while another senior member of the company should issue a short statement too.
For governance updates, releases might cover changes to voting rights or board structure. They explain how these shifts align with shareholder interests and industry best practices.
Big Mistakes You Can Easily Avoid in Investor Relations Press Releases
In case you hadn't guessed, this is an area where it's important to get things right.
Errors can ruin even the best investor relations strategy, and you'll need careful attention to detail and a clear understanding of your audience in order to issue a good release time and again. Get it wrong and your company could be sued.
Here are some common pitfalls that you should try to avoid.
Overly Technical Language
Using too much jargon or complex terms can confuse your readers – even experienced investors don't need it to be complicated.
Any tricky financial concepts should be explained in plain English. Don't assume that your readers will automatically understand, as they might be new investors.
Remember, your shareholder base might have a mixed financial background. Your goal is to communicate clearly, not to impress with fancy words.
Lack of Transparency or Missing Key Details
Hiding or omitting important information can damage trust with investors. They may be the lifeblood of your company, so you better make sure you're being honest with them.
As tempting as it may be, you want to avoid putting too much spin on bad news.
Instead, just be upfront about both positive and negative news. If something impacts performance, make sure there's some context in there.
Include all relevant data points, such as revenue, profit margins, and growth rates. Don't cherry-pick only the best numbers. Instead, you can highlight them in your copy.
Following these golden rules will leave recipients feeling confident that they have a clear picture of your company's financial health and future outlook.
Why Strong Investor Communication Matters
There's no two ways about it: strong investor communication is great for business.
It shows investors that you value them and want to keep them informed. It also demonstrates your commitment to creating shareholder value.
Remember, if you don't treat your main investors well, then you're going to struggle to attract additional investors. As you build strong relationships, you'll be in a better position to attract more.
Press releases are just one small part of effective communication between a company and its investors.
Just be sure you're open about both good news and challenges your company faces. Share financial results, business updates, and future plans regularly. Ultimately, these sorts of press releases are a great way to highlight your company’s strengths and strategies.
By communicating well, you build investor confidence in your company. With any luck, that will lead to more support and better long-term relationships with your shareholders.
Frequently Asked Questions
Any investor relations strategy needs to include press releases as one of the means of speaking to shareholders. Press releases are a great way of controlling a corporation's message, being open with investors, and relevant too.
As we reach the end of our guide, let's cover some common questions about creating and distributing effective IR press releases.
What are the latest best practices for crafting an engaging investor relations press release?
Keep your press release concise and focused, with good news at the top. You need to start with a clear, attention-grabbing headline. Bullet points are great for highlighting key financial data and it's the sort of headline messaging that investors like.
If you need to add more context, you could include one or two quotes from company leaders for a bit of context and insight.
Your audience probably won't be reading every word, so make sure your press release is easy to scan and understand quickly.
How can I find examples of effective investor relations press releases?
It's easy if you know where to look! You can actually find great examples on company websites in their investor relations sections. Check out press releases from industry leaders and award-winning IR teams.
Alternatively, financial news websites and the Cision PR Newswire is where you'll find noteworthy investor relations announcements.
What elements should be included in an investor relations press release to ensure clarity and impact?
Driving impact when feeding information back to your investors is what you need from a press release.
So, start with a compelling headline, dateline, and lead paragraph summarizing key points. Then go in with your financial highlights, relevant quotes, and context about company performance.
Finish with a throw forward. Whether that's projections for the next quarter, an optimistic spin for investors, or a shout out for the next earnings call. Whatever it is, that positivity will carry forward even if your press release has bad news.
Who are the key contacts to reach out to when distributing a press release for investor relations purposes?
Obviously, your first point of contact should be your major shareholders. But it's also a good idea to include financial media outlets and investment analysts in your communication.
For example, you could reach out to wire services that specialize in financial news distribution.
Consider reaching out to industry-specific publications and influential financial bloggers, too.
What role does an investor relations department play in managing press releases?
The IR team generally crafts the press release content and strategy. They coordinate with finance, legal, and executives to ensure accuracy.
After that, IR pros handle distribution and follow-up with key stakeholders. They also field inquiries from media and investors about the announcement. When it's all done, this team also tracks and reports on the release's impact.
