Dolphin Entertainment(DLPN) - 2020 Q2 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Revenue for Q2 2020 was $5.1 million, down from $6.3 million in Q2 2019, attributed to the pandemic's impact [40] - Operating loss for Q2 2020 was approximately $179,000, significantly improved from a loss of $1.2 million in Q2 2019, despite including $500,000 in depreciation and amortization [21][44] - Net loss for Q2 2020 was approximately $2.9 million, compared to a net loss of $800,000 in Q2 2019 [45] Business Line Data and Key Metrics Changes - 42West achieved a record of 145 Emmy nominations, indicating strong performance in PR for entertainment [22] - The Door's hospitality segment is struggling, but the Consumer Products Division is performing well, with Q3 expected to show marked improvement [27] - Viewpoint had the best performance among subsidiaries in Q2, driven by consistent demand for video marketing [28][60] Market Data and Key Metrics Changes - The hospitality industry is still facing challenges due to COVID-19, with a slow recovery expected [26] - Streaming services have increased demand for PR services, benefiting 42West [67] - The production environment is improving, with studios beginning to resume operations [70] Company Strategy and Development Direction - The acquisition of Be Social is a strategic move to enhance influencer marketing capabilities and integrate them with existing PR services [8][19] - The company aims to build a comprehensive entertainment marketing Super Group, having successfully acquired five companies in targeted verticals [38] - Future growth is anticipated through cross-selling opportunities among the acquired companies [52][58] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery of the hospitality and entertainment sectors, with expectations for growth across all subsidiaries [75] - The company is preparing for potential further acquisitions and is focused on expanding its online presence through Be Social [78] Other Important Information - The company reported beneficial conversion features on notes payable amounting to $856,863, recorded in interest expense [46] - There were net losses on changes in fair value of liabilities amounting to approximately $1.7 million in Q2 2020 [47] Q&A Session Summary Question: Can you provide historical run rate for Be Social's revenue and operating income? - Management did not disclose historical financials for Be Social due to competitive reasons but confirmed it is a profitable and well-run company [50] Question: What are the cross-selling opportunities created by the acquisition of Be Social? - Be Social is expected to enhance cross-selling across all existing divisions, particularly benefiting the Door and Shore Fire Media [51][55] Question: How is 42West expected to perform in the coming quarters? - 42West is anticipated to grow as production resumes, with a strong pipeline of projects from streaming services [68] Question: What is the current status of production in the U.S.? - Studios are beginning to resume production, but independent productions are still facing challenges due to insurance issues related to COVID-19 [74]