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]

Financial Performance - Total Digital Net Revenue increased by 10.8% year-over-year in Q4 2024, reaching $117.8 million[9] - Digital Advertising Net Revenue grew by 15.5% year-over-year, amounting to $41.6 million in Q4 2024[9] - Adjusted EBITDA for Q4 2024 rose by 25.8% year-over-year to $31.2 million[11] - Net income for Q4 2024 was reported at $25.0 million, an increase of $26.9 million compared to a net loss of $1.9 million in Q4 2023[10] - For the full year 2024, net revenue decreased by 0.7% to $451.0 million, with Digital Advertising Net Revenue increasing by 5.5%[12] - Net revenue for Q4 2024 was $117.813 million, a slight increase from $114.786 million in Q4 2023, while total revenue for the year decreased to $450.982 million from $454.231 million[30] - Operating income for Q4 2024 was $21.326 million, compared to a loss of $7.890 million in Q4 2023, indicating a significant improvement in operational performance[30] - Net income for Q4 2024 was $25.041 million, a turnaround from a net loss of $1.878 million in Q4 2023, reflecting a positive shift in financial results[30] - Basic income per share for Q4 2024 was $1.59, compared to a loss of $0.14 in Q4 2023, demonstrating improved earnings performance[30] - Net loss for the twelve months ended December 31, 2024, was $10,928, significantly improved from a net loss of $43,022 in 2023[37] Cash and Debt Management - The company repurchased $36 million of debt and $24 million of equity in 2024, enhancing its financial position[1] - The company ended 2024 with a cash balance of $33 million and net leverage improved to 4.33x[15] - Long-term debt decreased to $465.756 million from $499.658 million, showing a reduction in financial leverage[28] - Cash and cash equivalents decreased to $32.990 million from $61.046 million, indicating a decline in liquidity[28] - Cash flows from operating activities for the twelve months ended December 31, 2024, were $48,748, down from $67,827 in 2023[33] - Cash and cash equivalents at the end of the period were $32,990, down from $61,549 at the end of 2023[35] Strategic Initiatives - Townsquare Ignite's digital advertising solutions are positioned as a key growth driver, aligning with the company's Digital First strategy[2] - The company continues to focus on digital technology development and market expansion as part of its strategic initiatives[22] Revenue Breakdown - Digital Advertising revenue increased by 15.5% to $42,074 for the three months ended December 31, 2024, compared to $36,434 in 2023[37] - Subscription Digital Marketing Solutions revenue increased by 1.9% to $19,495,000 in Q4 2024, while it decreased by 8.4% for the full year to $75,343,000[38] - The Digital Advertising net revenue excluding political revenue was $41,608,000, reflecting a 14.4% increase from $36,359,000 in Q4 2023[38] - The subscription segment generated $42,074,000 in net revenue for Q4 2024, up from $36,434,000 in Q4 2023, marking a growth of 15.5%[42] - Digital advertising solutions contributed $55,546,000 to net revenue in Q4 2024, compared to $57,903,000 in Q4 2023, reflecting a decline of 4.1%[42] Cost Management - Total operating costs and expenses decreased by 9.3% to $429,289 for the twelve months ended December 31, 2024, compared to $473,370 in 2023[37] - Direct operating expenses for Q4 2024 totaled $80,581,000, an increase from $83,896,000 in Q4 2023, resulting in a decrease of 3.8%[42] - Direct operating expenses for the subscription segment in 2024 were $117,916,000, compared to $104,381,000 in 2023, an increase of 13.1%[42] Segment Performance - Segment Profit for the three months ended December 31, 2024, rose by 20.5% to $37,232,000 compared to $30,890,000 in 2023[40] - Adjusted Net Income for the three months ended December 31, 2024, was $10,321,000, up from $6,072,000 in 2023[40] - Adjusted EBITDA for the three months ended December 31, 2024, increased to $31,179,000 from $24,778,000 in 2023[41] - Political revenue for the three months ended December 31, 2024, surged by 334.5% to $7,199,000 compared to $1,657,000 in 2023[38] - Yearly segment profit for 2024 was $124,200,000, compared to $125,034,000 in 2023, showing a marginal decline of 0.7%[42] - The digital marketing segment reported a profit of $19,852,000 in Q4 2024, up from $15,705,000 in Q4 2023, representing a growth of 26.7%[42] - The company reported a segment loss of $259,000 in the other category for Q4 2024, an improvement from a loss of $398,000 in Q4 2023[42]

Core Insights - Townsquare Media, Inc. reported a net revenue growth of +2.6% year-over-year for Q4 2024, with total digital net revenue increasing by +10.8% [2][11] - The company achieved an Adjusted EBITDA growth of +25.8% year-over-year in Q4 2024, driven by strong performance in digital segments and political revenue [2][11] - Townsquare's digital advertising segment, Townsquare Ignite, saw a net revenue increase of +15.5% year-over-year in Q4 2024 [2][11] Financial Performance - For Q4 2024, net revenue was $117.8 million, up from $114.8 million in Q4 2023, with digital advertising contributing $41.6 million [10][11] - The company reported a net income of $25.0 million for Q4 2024, an increase of $26.9 million compared to a net loss of $1.9 million in the same period last year [12][30] - Adjusted EBITDA for Q4 2024 was $31.2 million, up from $24.8 million in Q4 2023 [13][30] Segment Performance - Digital Advertising segment revenue increased by $5.6 million, or 15.5%, while Subscription Digital Marketing Solutions revenue rose by $0.4 million, or 1.9% in Q4 2024 [10][33] - Broadcast Advertising segment revenue decreased by $2.4 million, or 4.1%, in Q4 2024 [10][33] - For the full year 2024, Digital Advertising revenue increased by $8.3 million, or 5.5%, while Subscription Digital Marketing Solutions revenue decreased by $6.9 million, or 8.4% [14][33] Capital Management - The company repurchased $36 million of Senior Secured Notes and $24 million of common stock in 2024 [2][11] - Townsquare completed a debt refinancing, entering into a new $490 million credit agreement with maturities extended to 2030 [2][11] - The Board of Directors approved a quarterly cash dividend of $0.20 per share, reflecting a +1.3% increase from the previous dividend [3][2] Guidance - For Q1 2025, net revenue is expected to be between $98 million and $100 million, with Adjusted EBITDA projected between $17 million and $18 million [9] - For the full year 2025, net revenue is anticipated to be between $435 million and $455 million, with Adjusted EBITDA expected between $90 million and $98 million [9]

Core Points - Townsquare Media, Inc. will release its fourth quarter 2024 financial results on March 17, 2025, before market opens [1] - A conference call to discuss the financial results will take place on the same day at 8:00 a.m. Eastern Time [1] - The conference call will be accessible via dial-in numbers and a live webcast on the company's investor relations page [2] Company Overview - Townsquare Media is a community-focused digital media and marketing solutions company with a strong presence in local radio stations outside the top 50 U.S. markets [4] - The company operates a subscription digital marketing services business, Townsquare Interactive, which offers website design, SEO, social media management, and other digital services [4] - Townsquare Ignite is the company's digital advertising division, featuring over 400 local news and entertainment websites and a proprietary programmatic advertising technology stack [4] - The company owns 345 local terrestrial radio stations across 74 U.S. markets, focusing on local media brands and national music brands [4]

Core Insights - Townsquare Media, Inc. has announced the promotion of three employees to newly created positions to enhance its management structure and leadership team in response to evolving opportunities in the advertising industry [1][2]. Management Changes - Cristina Cipolla has been promoted to Chief Data Officer (CDO), a role aimed at leveraging data to drive marketing decisions and company strategy. She has been with Townsquare since June 2013 and previously served as Senior Vice President, Data & Analytics [2][4]. - Matt Kiger has been appointed as Chief Revenue Officer, Local Media, focusing on sales initiatives to drive growth across Townsquare's 74 local media markets. He joined the company in March 2012 and has held the position of Senior Vice President, Sales since January 2022 [5][6]. - Kelly Quinn has been promoted to Chief Revenue Officer, Ignite, overseeing the company's programmatic digital advertising solutions. He has been with Townsquare since its inception in May 2010 and also served as Senior Vice President, Sales [7][9]. Company Overview - Townsquare Media operates a community-focused digital media and marketing solutions business, primarily outside the top 50 U.S. markets. Its assets include local radio stations, a subscription digital marketing services business, and a robust digital advertising division [10][11].

Core Insights - Townsquare Media, Inc. has announced a strategic digital advertising partnership with Steel City Media, enhancing its digital advertising capabilities in non-competing markets [1][2] - The partnership aims to leverage Townsquare Ignite's advanced digital advertising solutions to benefit Steel City Media's customer base [2] - Townsquare's digital revenue now constitutes over 50% of its total revenue and profit, indicating a strong focus on digital growth [2] Group 1: Partnership Details - The partnership with Steel City Media follows a previous alliance with SummitMedia, expanding Townsquare's reach into new markets [2] - Townsquare Ignite will provide Steel City Media with customized, data-driven strategies to enhance their digital business alongside their existing broadcast operations [2][3] Group 2: Company Overview - Townsquare Media operates over 400 local news and entertainment websites and mobile apps, along with 345 local terrestrial radio stations in 74 U.S. markets outside the Top 50 [4] - Steel City Media has a strong presence in Pittsburgh and Kansas City, reaching nearly 2 million listeners weekly through its six radio stations [5]

Core Insights - Townsquare Media, Inc. announced preliminary estimated financial results for Q4 and full year 2024, aligning with previous guidance [2] - Full year net revenue is expected to be between $450 million and $452 million, with Q4 net revenue projected between $117 million and $119 million [2] - Adjusted EBITDA for the full year is anticipated to be approximately $100 million, with Q4 expected to be around $31 million [2] Financial Performance - Digital divisions showed strong performance in Q4, with Digital Advertising net revenue growth exceeding +15% year-over-year [2] - Total Q4 Digital revenue is expected to increase approximately +11% year-over-year, representing 52% of Townsquare's net revenue in 2024 [2] - The company repurchased approximately $12 million of Senior Secured Notes in Q4, totaling $36 million for the year, ending with $467 million in debt and $33 million in cash [2] Business Strategy - Townsquare Media is transitioning from a local broadcast radio company to a Digital First Local Media Company, focusing on digital marketing solutions and partnerships [2][3] - The company is expanding its Media Partnerships division, recently entering agreements with local media providers in non-overlapping markets [2] - Townsquare's strategy emphasizes markets outside the Top 50 U.S. cities, enhancing its competitive position in local media [2]

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