Mr. Wilson continued, "We are proud of our business model's ability to deliver solid and consistent results, while also producing strong cash flow, even during uncertain times. Sometimes it takes a challenging macroeconomic environment to serve the purpose of highlighting how truly differentiated Townsquare is from others in local media. We have transformed and evolved; we began as a traditional broadcast company and we are now a Digital First Local Media Company. Transformations don't have to require a cha ...

Core Insights - Townsquare Media, Inc. reported its financial results for Q1 2025, indicating a slight decline in net revenue but an increase in Adjusted EBITDA, reaffirming its full-year guidance for 2025 [2][6][10]. Financial Performance - Net revenue for Q1 2025 decreased by 1.0% year-over-year to $98.7 million, with a 0.5% decline when excluding political revenue [5][7]. - Adjusted EBITDA increased by 3.5% year-over-year to $18.1 million, exceeding guidance [10][12]. - Net income reported a loss of $1.5 million, a decrease of $3.1 million compared to the previous year [9][24]. Segment Performance - Digital net revenue increased by 6.4% year-over-year, with Digital Advertising net revenue up by 7.6% and Subscription Digital Marketing Solutions net revenue up by 4.2% [12][28]. - Broadcast Advertising net revenue decreased by 9.1% year-over-year [7][28]. Guidance and Future Outlook - For Q2 2025, net revenue is expected to be between $114 million and $116 million, with Adjusted EBITDA projected between $25 million and $26 million [6]. - Full-year 2025 guidance for net revenue remains between $435 million and $455 million, and Adjusted EBITDA between $90 million and $98 million [6]. Capital Structure and Dividends - The Board of Directors approved a quarterly cash dividend of $0.20 per share, reflecting a yield of approximately 12% based on the last closing price [3]. - The company successfully refinanced its debt in February 2025, extending maturities to 2030 and enhancing financial flexibility [2][12].

Core Viewpoint - Kaskela Law LLC is investigating Townsquare Media, Inc. on behalf of long-term investors due to a significant decline in the company's stock value and potential violations of securities laws or fiduciary duties by the company's officers and directors [1][3]. Stock Performance - Since May 2024, Townsquare Media's stock price has dropped from over $12.00 per share to less than $7.00 per share, representing a decline of over 41% [2]. Legal Investigation - The investigation aims to determine if Townsquare Media and its executives breached securities laws or fiduciary responsibilities in relation to recent corporate actions [3].

Group 1 - Townsquare Media (NYSE: TSQ) is often misunderstood as a traditional radio stock, but it is primarily a digital advertising play [1] - The company's roots are in radio, yet its business model has evolved to focus significantly on digital advertising [1]

Company Overview - Townsquare Media, Inc. is a community-focused digital and broadcast media and digital marketing solutions company primarily targeting markets outside the top 50 in the U.S. [4] - The company operates Townsquare Ignite, a digital advertising division that utilizes proprietary programmatic advertising technology and a portfolio of over 400 local news and entertainment websites and mobile apps [4]. - Townsquare Interactive provides subscription digital marketing services to small and medium-sized businesses (SMBs), offering a SaaS business management platform, website design, SEO, and other digital services [4]. Upcoming Financial Results - Townsquare Media will release its first quarter 2025 financial results before the market opens on May 8, 2025 [1]. - A conference call to discuss these results will take place on the same day at 8:00 a.m. Eastern Time [1]. - The conference call can be accessed via a dial-in number and will also be available as a live webcast on the company's investor relations page [2].

Financial Data and Key Metrics Changes - In Q4 2024, net revenue increased by 2.6% year-over-year to $117.8 million, exceeding the guidance range [31] - Full year net revenue declined by 0.7% year-over-year to $451 million, within the guidance set at the beginning of the year [31] - Adjusted EBITDA for Q4 increased by 25.8% year-over-year to $31.2 million, while full year adjusted EBITDA was approximately flat, increasing by 0.4% to $100.4 million [32] Business Line Data and Key Metrics Changes - Digital Advertising net revenue grew by 5.5% year-over-year to $159 million, contributing 35% of total company net revenue [12][33] - Townsquare Interactive returned to year-over-year revenue growth in Q4 with a 1.9% increase, although full year revenue decreased by 8.4% [35] - Broadcast Advertising net revenue decreased by 4.1% in Q4 and declined by 1.3% for the full year, but segment profit increased by 11.1% year-over-year [36][38] Market Data and Key Metrics Changes - Digital revenue accounted for 52% of total net revenue, significantly higher than the industry average [11] - Digital Advertising growth accelerated to 15.5% in Q4, driven by strong programmatic advertising [17][33] - The company expects Digital Advertising revenue growth rates to continue in the high-single-digits for Q1 2025 [48] Company Strategy and Development Direction - The company is focused on a Digital First strategy, with plans to invest heavily in digital platforms and solutions [11][45] - The Media Partnership Division was launched to expand third-party revenue streams, with expectations of significant growth in the coming years [15][91] - The company views the Broadcast segment as a mature cash cow, while anticipating continued declines in revenue but maintaining strong profit margins [28][102] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the advertising market's health despite economic uncertainties, expecting strong growth in Digital Advertising [110][114] - The company anticipates a continued shift from traditional advertising to digital, benefiting from its comprehensive digital solutions [28][80] - Management expects to maintain a strong cash flow generation and continue to reduce debt while supporting a high-yielding dividend [40][46] Other Important Information - The company ended 2024 with $33 million in cash and generated $49 million in cash flow from operations [8][40] - A successful refinancing of debt was completed, extending maturities until 2030 [42][54] - The Board approved a dividend increase to $0.20 per share, reflecting confidence in the company's strategy and cash flow [46] Q&A Session Summary Question: Can you provide more details on Townsquare Interactive's subscriber numbers and expectations for Q1 2025? - Management noted that subscriber growth has returned, with expectations for revenue growth to double from Q4's 2% to at least 4% in Q1 2025, alongside a projected profit increase of 20% [63][64] Question: What are the current subscription rates for Townsquare Interactive? - The average revenue per user (ARPU) remains around $300, with some offerings exceeding $400, but management expects this to remain stable over the next two years [69][72] Question: How does the company view potential M&A opportunities in light of deregulation? - Management believes they are well-positioned to acquire radio assets, particularly in markets outside the top 50, and sees potential for both acquisitions and partnerships to drive growth [86][90] Question: What is the outlook for Broadcast revenue trends excluding political advertising? - Management expects Broadcast revenue to decline in line with previous years, projecting a 6% decline for 2025, while emphasizing the growth potential in Digital Advertising [101][102] Question: How is the company managing economic uncertainty in its Interactive and Ignite businesses? - Management reported that despite economic challenges, the advertising market remains healthy, with strong growth expected in Digital Advertising and Interactive segments [110][114]

Investor Presentation INVESTOR PRESENTATION March 2025 FORWARD-LOOKING STATEMENTS AND NON-GAAP FINANCIAL MEASURES This presentation contains, and our other communications may contain, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements can be identified by the fact that they do not relate strictly to historical or current facts. Forward-looking statements, written, oral or ...

Core Viewpoint - Townsquare Media reported quarterly earnings of $0.60 per share, matching the Zacks Consensus Estimate, and showing an increase from $0.34 per share a year ago [1] - The company posted revenues of $117.81 million for the quarter ended December 2024, slightly missing the Zacks Consensus Estimate by 0.01%, but up from $114.79 million year-over-year [2] Financial Performance - Townsquare's earnings per share (EPS) for the last four quarters have not surpassed consensus estimates, with the most recent quarter's earnings aligning with expectations [2] - The company has exceeded consensus revenue estimates twice in the last four quarters [2] Stock Performance - Townsquare shares have declined approximately 14.3% since the beginning of the year, compared to a 4.1% decline in the S&P 500 [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating expectations of underperformance in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.11 on revenues of $103.48 million, and for the current fiscal year, it is $1.12 on revenues of $450.65 million [7] - The outlook for the Broadcast Radio and Television industry, where Townsquare operates, is currently in the top 27% of Zacks industries, suggesting a favorable environment for performance [8]

Financial Data and Key Metrics Changes - In Q4 2024, net revenue increased by 2.6% year over year to $117.8 million, while full year net revenue declined by 0.7% to $451 million [21][22] - Adjusted EBITDA for Q4 increased by 25.8% year over year to $31.2 million, with full year adjusted EBITDA approximately flat at $100.4 million, a 0.4% increase [22][25] - The company ended 2024 with $33 million in cash and generated $49 million in cash flow from operations [5][25] Business Line Data and Key Metrics Changes - Digital revenue grew by 1% year over year to $234 million, contributing 52% of total net revenue and 50% of total segment profit [7][18] - Townsquare Ignite, the digital advertising segment, saw net revenue increase by 5.5% year over year to $159 million, accounting for 35% of total company net revenue [8][22] - Townsquare Interactive, the subscription-based digital marketing solutions segment, returned to year-over-year revenue growth in Q4 with a 1.9% increase, although full year revenue decreased by 8.4% [23][24] Market Data and Key Metrics Changes - Broadcast advertising net revenue declined by 1.3% year over year, with a 4.1% decrease in Q4 [24][19] - Political revenue for the full year was $13.4 million, with Q4 political revenue at $7.2 million [21][22] - The company expects broadcast revenue to continue declining, projecting a similar decline of approximately 6% for 2025 [65][68] Company Strategy and Development Direction - The company is focused on being a digital-first local media company, with significant investments in digital advertising and marketing solutions [7][10] - A new Media Partnership Division was launched to expand digital programmatic advertising solutions to other local media [11][60] - The company plans to continue investing in digital product technology and maintain a strong competitive advantage in markets outside the top 50 cities [28][60] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate economic uncertainty, expecting high single-digit growth in digital advertising [71][73] - The company anticipates strong profit growth in Townsquare Interactive for Q1 2025, with expectations of $2.5 million to $3 million in profit for the year [38][47] - Management views the broadcast business as a mature cash cow, with expectations of continued revenue decline but strong cash flow generation [19][65] Other Important Information - The company successfully refinanced its debt, extending maturities until February 2030, and repurchased approximately $24 million worth of shares in 2024 [26][27] - A dividend increase of 1.3% year over year was approved, raising the annualized dividend to $0.80 per share [29][30] Q&A Session Summary Question: Can you provide more details on Townsquare Interactive's subscriber numbers and outlook for Q1 2025? - Management highlighted a successful turnaround in Townsquare Interactive, expecting revenue growth to double from Q4's 2% to at least 4% in Q1 2025, with profit growth expected to be around 20% [36][38] Question: What are the current subscription rates for Townsquare Interactive? - The average revenue per user (ARPU) remains around $300, with some offerings exceeding $400, and management expects this to continue over the next two years [42][43] Question: Are there updated revenue goals for Interactive and Ignite? - Management expressed confidence in achieving strong growth in digital advertising and expects Townsquare Interactive to return to historical profit levels in the coming years [46][47] Question: How does the company view potential deregulation in radio and M&A opportunities? - Management believes deregulation is likely and positions the company as a potential acquirer of radio assets, particularly in markets outside the top 50 [52][56] Question: What is the outlook for broadcast revenue growth excluding political revenue? - Management expects broadcast revenue to decline in line with previous years, projecting a 6% decline for 2025 [65][68]

Digital Revenue and Advertising - Digital revenue reached $234.0 million in 2024, accounting for 52% of total net revenue, compared to $232.5 million and 51% in 2023[37] - Digital Advertising segment generated $158.6 million in 2024, up from $150.3 million in 2023[38] - Subscription Digital Marketing Solutions segment revenue was $75.3 million in 2024, down from $82.2 million in 2023[40] - Broadcast Advertising segment revenue was $209.0 million in 2024, a slight decrease from $211.7 million in 2023[46] - The company generated approximately 83% of its net revenue from local and regional advertisers in various industries for the year ended December 31, 2024[52] - Political advertising revenue can vary significantly between even and odd-numbered years, impacting overall revenue[108] Digital Strategy and Market Position - The company emphasizes a "Digital First" strategy, with digital advertising expected to grow to represent approximately 80% of all advertising spend by 2029[34] - The total addressable market for Townsquare Interactive is approximately $32 billion, targeting around 8.8 million small and medium-sized businesses[44] - The digital programmatic advertising platform provides access to over 250 billion impressions per day, positioning the company among the largest in-house media trading desks[38] - The company is dependent on retaining its digital audience to maintain business performance[108] Radio Operations and Market Reach - The company operates 344 radio stations across 74 local markets, significantly expanding its reach since its founding in 2010[33] - As of March 11, 2025, the company owns and operates 344 radio stations across 74 local markets, all outside the top 50 markets in the U.S.[47] - The company operates a total of 6 radio stations in Abilene, TX, and 5 in Albany-Schenectady-Troy, NY, among other markets[86] - The company has an estimated market share of over 35.0% in radio advertising revenue in many of its markets[101] - The company estimates that it has more than a 35.0% share of local radio advertising revenue in many of its markets, which may attract scrutiny from the DOJ[101] Financial Performance and Investments - Revenue from the "Other" category, which includes live events, was $8.1 million in 2024, down from $10.0 million in 2023[51] - The company recorded $17.4 million in capital expenditures for the year ended December 31, 2024, representing 3.9% of net revenue[56] - The company plans to continue investing in digital businesses, including Townsquare Ignite and Townsquare Interactive, to drive further growth[58] - The company’s substantial indebtedness could adversely impact its financial condition[108] Employee Relations and Corporate Governance - As of December 31, 2024, the company employed 2,049 full and part-time employees[78] - The company has no employees covered by collective bargaining agreements and considers employee relations satisfactory[78] - The company has instituted diversity training for newly hired employees and ongoing training during employment[76] - The company has a 401(k) plan with matching contributions as part of its employee benefits[8] - The company reported that no single customer accounted for more than 1% of revenue in the years ended December 31, 2024, and 2023[53] Regulatory and Compliance Issues - The FCC granted all license renewal applications for the company's radio stations for full eight-year terms in the last renewal cycle[82] - The next license renewal cycle for the company's radio stations begins in 2027[82] - The company has been subject to several EEO audits without receiving notice of any violations that could materially affect operations[97] Risks and Challenges - The company faces risks related to its acquisition strategy, including potential inability to complete future acquisitions due to market and financial conditions[108] - The company must respond to technological changes to remain competitive in the industry[108] - The company is subject to risks associated with potential future asset impairment of its FCC licenses and goodwill[109] - The company’s engagement with third-party service providers increases exposure to security and data privacy risks[110] - The company monitors economic conditions closely and may implement precautionary measures in response to observed or anticipated reductions in revenue due to economic challenges[71]