Dolphin Entertainment(DLPN) - 2022 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Revenue for the year ended December 31, 2022, was approximately $40.5 million, a 13% increase from $35.7 million in 2021 [35] - Operating expenses for 2022 were approximately $45.1 million, compared to $41.2 million in the prior year [35] - Net loss for 2022 was $4.7 million, an improvement from a net loss of $6.5 million in 2021 [38][39] - Basic loss per share for 2022 was $0.49, compared to $0.85 in the prior year [40] Business Line Data and Key Metrics Changes - The addition of Socialyte and Be Social has created a leading influencer marketing firm, expected to represent 25% or more of revenues in 2023 [18] - The influencer marketing industry has seen strong double-digit CAGR, increasing from less than $2 billion in 2016 to an estimated $14 billion in 2022 [17] - The company expects to add 3 to 4 new 2.0 deals each year, which will create meaningful cash flow [30] Market Data and Key Metrics Changes - The influencer marketing segment is one of the fastest-growing areas in marketing, with expectations for continued growth in the coming years [18] - The company has expanded its reach in the influencer marketing space, now fully bicoastal with operations in New York, Miami, and Nashville [72] Company Strategy and Development Direction - The company aims to complete its original vision of building a Super Group with the acquisition of a live events production company [32] - The hiring of a seasoned CMO is expected to enhance brand-building capabilities and support the growth of 2.0 opportunities [4][10] - The company is focused on building ventures where it can receive equity stakes without upfront cash investments [29] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2023, expecting strong double-digit revenue growth and positive results from 2.0 ventures [31][88] - The company anticipates that the completion of its acquisition strategy will simplify financial reporting and align net income results more closely with operating income [3] Other Important Information - The company has paused the development of new NFT collections while awaiting improved market sentiment [25] - The IMAX documentary project is expected to be released in the second half of 2023, which could significantly impact revenues [26][69] Q&A Session Summary Question: What is the financial outlook for 2023? - Management expects to achieve double-digit growth, potentially exceeding $50 million in revenue, and aims to be EBITDA positive [88] Question: How will the acquisition of Socialyte impact growth? - The integration of Socialyte and Be Social is expected to create synergies and enhance the company's influencer marketing capabilities [70] Question: What are the expectations for operating expenses in 2023? - Operating expenses are expected to increase only slightly due to the full-year impact of Socialyte, with no significant surprises anticipated [87]