Earnings call transcript Q1 2023

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Operator

Good day, everyone, and welcome to today's Dolphin Entertainment First Quarter 2023 Earnings Call. At this time, all participants are in a listen-only mode. Later, you will have the opportunity to ask questions during the question-and-answer session. [Operator Instructions] Please note this call may be recorded. [Operator Instructions]

pleasure the my Mr. over now is to conference turn to It Carbonara. James Please go ahead.

James Carbonara

and to call again, quarter you, Mirta once Thank operator, Officer. Financial welcome Chief Officer; call. me Negrini, Chief O'Dowd, XXXX With Dolphin on Bill the are Executive and earnings first Entertainment's

like the Private the forward-looking with for All reading considered of of statements call, in the call I'd Litigation the This of of Reform historical statement. Section this of be on made Exchange Act XXXX. statement XXXX. XXE exception harbor facts, to may and forward-looking XXA safe made Act statements is harbor begin the Securities Securities Act statement pursuant Section within by safe to statements the of described the Securities XXXX

believes reflected prove Although are that that forward-looking statements no assumptions it will such expectations expectations correct. these and reasonable, been in makes assurances have the to company

expressed and materially results the risks various those may forward-looking differ to or Actual uncertainties. implied due in from statements

For on such call. risks reflect in circumstances. obligation well or this forward-looking statements the included of any which call report XX-K earnings subsequent differ forward-looking this results company's uncertainties, events a as subsequent to to Commission. with factors in time discussion actual the in statements, that update knowledge, or from made date reports as Any the company are not time contained supplement from files forward-looking do the expressed Securities the in reports statements to undertake Form or of detailed Exchange only We and implied any filed annual of see could Form to risk those XX-Q on cause please as in and other

Executive turn to the please I'd Officer proceed. call Chief over Now Dolphin Entertainment. like Bill, of O'Dowd, Bill to

Bill O'Dowd

and and afternoon, us joining today. everyone, you and James, thank for hi, Thanks, good

financial a then full it up of highlights, financial with Q&A. we'll and review for open some always, As and review start operating a followed by

is happy we're because marketing first the to by revenue to perspective, revenue grew highlights year-over-year financial a our year-over-year hit QX especially target X% seasonality to quarter business year QX companies, growth our quarter believe be of to report from will and So always that expected lowest Since XX% we're our our million. that and we in XXXX, of influencer our we $X.X revenue for on with XX% revenue saying meaningfully basically track. expect full higher

same influencer as ground second We despite in also them seasonality, the expect firm our the operating per to firms annual ago, QX down a profits make our marketing are adding be QX in up than second expect more year the the to loss into that noted as deliver of just share to we year And but results. to Dolphin. rest due pleased QX to also for a influencer last stayed our

operational occurred spoke since. to this acquired clear to that quarter highlight rights we six announcement and updates. know Moving The Amazon Studios after has the Angels. A I the Blue ago, the occurred ended weeks with just worldwide

length jointly of finance the we recall, development production multiyear agreement slate the last a this announced IMAX to If you documentaries a market. and year, feature time of with global for

project coproduced Bad Zipper and developed Abrams, Robot first The The Productions Films. J.J. Blue was by Bros greenlit and Angels,

last filming The Blue finished Angels started summer has production. and

second of We half to IMAX this in expect film year. the the theaters hit

Dolphin Dolphin to in expect from acquisition terms ticket In which to would of from before the the million XX% any generate a IMAX revenues of from revenue inclusion institutional to theaters. we the of agreement, financial $X.X approximately sales implications, result ROI

next XXX with expect Dolphin taking This in a the account also ventures as the Dolphin The model, in projects Fortune Ventures multiple we concept evaluate that Dolphin Doty boost the Ventures get services Officer. agencies Executive fantastic opportunities in on formidable has return saw Marketing over various XX engage to of The of known on X.X, joined product also to cash veteran is as market. Dolphin working of that receive months, and Ellie Chief Blue to provides proof paid a services in the QX our but equity where opportunities Angels we the we are announcement XX formerly or secure a we that rationale fee the source, wherein we equity marketing. for

what and Chief the work an as of one Ellie will of giving leaders family. platform Ellie's we incredible are Marketing Additionally, leaders communicate built additional within we doing herself. role to be Officer, Dolphin both our to is those the part to have and

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in already. Powerhouse the resulting helped awards on Tony year XXth leaders worked who nominations have and like our this projects at at Film South five the and We Festival clients XXWest, has Film film four Festival by for Southwest awards four the PR Sundance Awards, television and

billion billion, realized of were PR I The yes, Media Shore work resulted the Top in should Sound Gun: in right, office an instead rounded billion. honored which Maverick Additionally, a I But, nominations, Best again campaign all of Fire six Power $X.XX have Oscar Award Academy XXXX. by Cruise’s of XXWest unsurprisingly just and box biggest to up Tom $X.XX once and the List. for worldwide date, follows client XXWest on total to Observer’s $X.XX career

good clients Fine welcomed ever-growing to space. leading just of Door, PR We have leaders their packaged like Carbone our Food The roster lifestyle hospitality consumer a and who culinary firm in

to Viceroy in hotels Socialyte our travel best made XXX of Be Hadid hundreds stunning the custom that with top represent Leisure’s influencer Lagerfeld Gala Karl top of list. XXXX XXX a in millions tribute talent dress may While client paid the Hotels on social DaVinci marketing and steps XXXX Met Gigi agencies followers of leading media. Leaders Social creator over like on and client

talent Our and creators Hyundai, Social recently like campaigns Jose lastly, join for were date among image Tequila, creators News managers And campaign Pinterest Viewpoint to and and creative production and Creative, of PayPal, Big QX. named leaders New Dolphin’s Red’s relations Sachs, for a for were – in asked dozens boutique by agency, others Hot work Revlon course. Business Be year The of Insider. Socialyte me. included top York, respected brand CBS to agency video Viewpoint’s and excuse in creative Cuervo Sauce, QX

best-in-class Dolphin meaningful industries. the turn holds manages the for I’ll and updates Midnight while and are upside on Dolphin that and as Hidden publicity shareholders in enable equity all entertainment commercial culinary relationships marketing Leaf, a clients. restaurant reminder, to also companies some have Theatre, Theatre for and its the participate ownership a Now of Midnight venture. its stake our within Starting and also in of and aspects facilitating talent providing regularly projects our where marketing Dolphin with

week summer, at Midnight Day. a the schedule we after have ramp to Labor the Theatre day up shortly full throughout As program a aiming seven

summer with Cabaret, Moth, who Andrew upcoming Lawrence definition few. array hit, an an that Daily of Wood Roy Dinner. just Jennifer talent, of in all comedy like Basketball’s including incidentally The from a Gloria Academy The well be played co-stars New White as as have screenings XK-high Steinem, and looks hosts NCAA The We film Rachel to Everywhere Award-winning Feldman, hosted House name at Blue accounts who Everything could Show’s Amy just Barth in Sony Go Schumer Madness a Broadway’s All to the by March it Shows, York Jays. Correspondents Jr., Feinstein, Once

our production We called A putting in Midnight first also Brief original of Magic July. Theatre History out in anticipate

double We’re as this allow what very to shows month should did number per and that this of versus winter summer for we the spring. excited us it

theater into so is And the gear. kicking

with to production finance IMAX agreement development length slate and multi-year jointly a of our to the back feature documentaries. Turning of

that Blue You The sale heard have better project partnership not a could call first Studios of our the of to this top with start. that together, at off the Amazon Angels gotten the of

and We’re evaluating second our for opportunities for together. now looking documentary

with We shows we also Theatre into developing anticipate doing broadcast more Midnight from and them work with live that IMAX, actively we’re nationwide. theatres sourcing can IMAX

lot We more and a talk expect between to have our topic this earnings on QX now to call. about

investment still QX X.X to year QX in institutional on revenues QX the a significantly with it’s the years, record and to enjoy known return its fantastic Angels And come. IMAX previous Dolphin been with confident as that great we revenues as summary, from than previously higher in are will theaters even will in revenues. be The Ventures start Blue Dolphin a In

over turn And for joining you Thank it to now to Mirta. end, us. that I’ll

Mirta Negrini

Thank good March for now you, the XXXX. above XXXX. quarter March for everyone. XX, the quarter XX, Revenue will ended and Bill, million, XX, XXXX X% results quarter March discuss approximately for ended revenue I afternoon, $X.X was the ended the

fees. Overall, of amortization ended prior the $XX.X in million, million compared and approximately XX, depreciation same SG&A, cost, legal months value operating were in payroll period and of benefits, the to expenses, direct changes expenses March and and consideration, year. for general professional and composed expenses the fair the are in administrative Operating three selling, XXXX $XX.X approximately contingent

the compared in costs prior cost XX, Payroll same for million to same ended year. million period year. $X.X approximately in quarter March $X.X compared to were $X Direct the $XXX,XXX, were the in XXXX prior period the in million,

for in the year. $XXX,XXX, compared $X.X professional million to $XXX,XXX Legal in same period the SG&A and compared the year. expenses in fees million, prior of same $X.X were period prior to

amortization loss non-recurring from XXXX primarily from consideration and from operating along the the professional with fair $XX,XXX, a of time change consideration fees the of quarter related $XXX,XXX, loss to ended XXXX along $XXX,XXX, of a approximately value compares This fee expenses of of an $XXX,XXX the of XXXX non-recurring of a depreciation for audit change items includes $XXX,XXX. March March of for which and of amortization time $X,XXX,XXX, the items contingent $XXX,XXX, Operating audit. value quarter of loss contingent and XX, one loss with and non-cash includes fair to and depreciation ended one in from $X,XXX,XXX in non-cash the XX, the

XXXX of of XX, and depreciation along included the for $XX,XXX, of time contingent for of of from loss This March $X,XXX,XXX, loss of loss value approximately fair $XXX,XXX, a one compares the ended of loss fair contingent a quarter non-cash consideration ended quarter expenses amortization time XXXX the a XX, fees with audit. a change which non-recurring amortization in from March to items from $XXX,XXX of with items in net related from consideration XXXX includes depreciation along the to audit the the primarily change one $X,XXX,XXX non-cash professional and and $XXX,XXX, of of and $XXX,XXX. and non-recurring the Net value fee $XXX,XXX,

Basic fully year. diluted $X.XX based share per X,XXX,XXX per was outstanding. shares $X.XX on per weighted same based outstanding of period on share loss fully and XX,XXX,XXX $X.XX X,XXX,XXX diluted to weighted weighted per basic the in average loss compares share average average in This and prior and share shares loss shares the

cash of $X.X equivalents and XX, XXXX. of March March as cash million as Unrestricted to XXXX as compared million XX, $X.X of

my you for the phone for operator Operator, now ask open concludes remarks. That financial can question? Q&A. to will I the poll please lines

Operator

Maxim Instructions] Allen Klee Thank from come with first you. Our question Group. will [Operator

Allen Klee

Good afternoon. Congratulations quarter. on the

Bill O'Dowd

Thank you.

Allen Klee

Questions on, hi, Angel. Blue

the you heard I in revenue becomes theaters. hit the with goal theaters Amazon? Remind recognize this goes the then and long? think for you us do is from available for And How I when that say it to when Thank you’re done it when the you. many So production. how

Bill O'Dowd

Sure. big deal. Yes, is this a

it such So we first one and gate. should out to result unpack expect a of certainly on didn’t an amazing bit the little the have

– for finished just you The last deal did, filming this we thank I’m So And March. summer. we going announced tomorrow. the ago, Allen. a we in We highlighting [indiscernible] year where week in it, filming started

now. it editing We’re

of late plan is to now, fall, as in to, this September, expect October. We be the theaters

up move would current Amazon wide can back plan. so Of goes variety of on factors, theaters. It a course, things into it the but after days that’s depending or those or XX hit

certainly would around we’re a X.X capture and the a the which XX%, come this by not very time to turning of us Gun: by accounts to the missing recognize the tailwinds Maverick, maybe would a Amazon on helped if the We at analogy beautiful. last it that Top least stages. bit full excitement it flying But million goes try and service, be would the XX% And film, hype in With documentary recognized with shortly we’d of revenue, like is out it XXX. of if all thereafter. this this, love do little

year, the we So released this the recognize it and films all were year us. exciting if should for that’s during

Allen Klee

great. That’s

look out there in thinking we’re could revenue of through we as – you what XXXX this already of Ventures, go into said kind that are publicly you So, you’ve and that about yourselves year? Dolphin for could hit projects have

Bill O'Dowd

being Sure. really Dolphin is, Angels revenue Yes, off, of recognize kicking able really from this Ventures. is Blue kind to

So time. an exciting obviously, fantastic, with that us. is should I’m will Amazon deal me, which it’s happen Angels the Well, point kill for forget sure out I the Blue is I and somebody before and would to, fabulous

the have project will revenue also IMAX additional on We forever. from theaters institutional

believe will But that us. well we a we with exciting and IMAX, annuity share this that’s film. creatives So of for nice course, the the on have as

than so And months not XX less XX% later. bad, that ROI,

annualized. that’s So

be the years. increase So continue XX less months than over will to will higher

in So leads answer And next we’ll streaming more our that me. we that’ll got we’ve restaurant to give and question weeks, week documentary of be more some we theater in a shortly. that, We’ve night magic we’re be projects three Allen, three the IMAX. our three comfort to July, there be call. out as But talk a – seven more nights week, do – QX will With whole then then XXXX. revenue Midnight me, directly might to some the a or Theatre show we’re have expect and up Labor have that Day. on could in with excuse ability that happens open, us the will to our we weeks, a four got earnings and the many about about in during include result shortly now be running very what excited your shows that generally after shortly range, five When Day, with after IMAX days up operational fully about when Labor live could week. excuse

believe then put when for Theatre Ventures we be will magic we release and for So about does here happen us. that nice the on show. in are revenue, Be no a works. We an a company of Dolphin a the have investment lookout to in do our be XXXX I many gets wherein Crafthouse super fans group. of know We but cash, own Cocktails. the money. that And our Those deals Midnight meaningful press catalyst in types make stake on we access generating call will people other up don’t of

a And cash promoting. So every that in a announce month of from venture announcements. giving paid are thunder – or anticipate identified future without company this stealing Those shortly equity next and weeks. closing the coming we towards working those we I kidding believe couple able do and being to specific in not we’ve next that the we’re the promoting or get get fee one we structure. the we’re and number in the

at it leave just Let’s that.

figures, obviously type give entering it seven to it maybe qualify a expect QX Dolphin. three year if holidays our be six our it’s slate maybe exit results. wouldn’t we’re an we that Blue types goal those to like them doing the And it the so in our is have it’s in eight to have strategy. that, from will Each an to of portfolio. having venture But earnings years working us of of wouldn’t that selling there cetera. a exit company call, a certainly for our two ventures et would of to fundraise, result Maybe of a portfolio. with, have Ahead within us Angels some It

hopes have be or we could eight of figures high were, it that them of few exits a more. And

is for our $XX obviously company a of So million size, a exit extremely meaningful.

handle putting excited we’re and of able we’re that to place eight six manage to up once to more being Ellie, say So the able for for because that in We’ll them and ventures. management that the to over ramp and have success. summer, of those team hiring at to on

from those big highlights. I’d that’s are a So XXXX say perspective, the

be share Midnight everyone. ventures IMAX, to more Theatre we'll with more that able and So

Allen Klee

That's be have business? – time great on Thank that's on, an impact Or for do it you happen? have strike that on for going to your The you. that color. long a to does writers' does going

Bill O'Dowd

kind it We're year. it the films, not in the Angels Those affect we're to similar And the insulated how been we're the not this the to if Blue no, of summer. it go right? year, end But middle be more may through we're in this would – are optimistic next could think So our like on be, Yes. is we've No, happy promote already about of affect production projects blessed. that to early of to of finished already I industry will theaters at the most wish but a time hired terms identifying it movie long throughout of to projects I have be I to on much would because goes quickly over, say. TV business, optimistic moment. will promote

Allen Klee

That's Okay. great.

In you have integrate Social, two Be now feel about working you combining how of with two and Socialyte and companies do terms the opportunity powerful of these together? the the

Bill O'Dowd

most we've over of a new I November, the entertainment. yes. couple, of most which they companies agency influencer this formidable excitement to these and ready we together, be, what in these terms Dolphin will to announcing summer combination, in is our integrate call know going probably and we'll think, been – bought around when are name two merge the earnings earnings calls working get X.X, the and all and quite – largest frankly, we our of marketing be exciting mean, the the core because on Well, businesses, thing day Socialyte in in as of last listeners back

because it's grow in the I area only marketing, five in followed to we're said, anything is to but the And it's last in if all in know that's years marketing, segments, not, going very it's more got only if knows influencer we because platforms the that top. near going anybody to growth one the don't direction. more of of marketing that invest on marketing more combined going be that company, it's With promote divisions, fastest-growing influencer

the years five are industry mean, from Instagram Because now when that different segments with XX affected right? in bloggers. thing. it it, have come of about challenged campaigns. a think mommy think promoted And started talk's you industry, book online, to with the TikTok all you video. short-form years ago, And every it's ago, might books, remember, I

we talk I'm college in know Let's who played different athletes, world a me I met basketball terms NIL, seven at It's have than played Those of feet when tall. are don't person in with I do have Creighton. the large firms, marketing far influencers. video really video today can within our We influencers, NIL. create XXWest today. synergies which we business and gaming Those gaming influencer

the female a heavily, how wellness is We if marketing. year, lifestyle, marketing saying of will three considering revenues, strong today. our And Social, half leader, I'd Be of before in five us from right? story core is marketing PR to This bought would are our twice a heavily which cornerstone big zero But as lot which next beauty, love firms be influencer our are. years, marketing in influencer of be up we represent is revenues, five XX% to influencer to great years three and and success the see the big, influencer market Xx are in as it

into lot doing growth fall, summer up So the for the on years. business, merger us a future it and that right set this will and that of in our core combination

Allen Klee

Thank you.

events into we events kind a call, got you you that in Subsequent do that's said company desire what the educated what up like a does had good a But is. about acquire could to think live space. things On that, picked play and of company the how on how it live that, to business last a do? you I you

Bill O'Dowd

last have right? company Well, clients space. of it's us said firms we group they we piece the to influencer just to wanted and to always that firehoses right going It was the be potential agencies XXXX, part for type that, we that our will place first the had there'll because nothing be be of for since in new of deals would in water in because was company our the water PR live events marketing – something

mean the a Saturday, movie And agencies it year? Every we things Look of going people, can think a I'm represent lot they business, is the premiere all a how to live of events lot of Why? sister premiering very streaming a will. can show different service blessed – in live of lucrative a it. Killers when Every He's to to though, That's Cannes. event. of event. Moon be live especially, got premiere Because a is you've this represent Flower got Scorsese. live movies. the Caprio's every Martin many We're event. Di those like

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my oh XX premieres not now. I hosted, Theatre? XX, know We’ve Midnight We’re fully at Is it open. don’t even goodness,

live publisher. a hard it’s big, good big that’s So that’s – listening now I magazine on friend it very have call events, in this experiential marketing. call call very it a

cornerstone piece earned his our in, events say, experiential media, PR, he’s live specialize his money of from marketing experiential is marketing, the what That strategy. other we which That I made magazines. from than marketing. it’s like influencer has type is he the probably more I think of, of and

while TV in just the answer, riffing marketing. right, unquestioned XXWest last, One and this on leader, I’m is film

We to this, out next see proud week. release a on or week promoting, this say, are press you’ll

New We’re coming promoting the Potter exhibition Harry that’s to York.

public to big exhibition, over a that I’ll right? that’s Well, obviously open Friends the Friday, con. got I’ve have Thursday, I in think be right, and and We if a it’s Family big,

it’s do food to think owns it financially. immersive music obviously, Those Van Bros. Warner exhibitions, about of well but whether I’ll of types going opportunities, festivals, they’re if festivals, experiences, the now. think wonder the that, of IP said I to does just going point. those that before. that And for would we a types I company if bring the else at which events, that celebrities think everything your you’re look world’s I to and oyster exhibits Gogh on

live events be for So I a should future, do think sure. of part yes, our that

Allen Klee

That’s last exciting, but more is not question financial… great. My as

Bill O'Dowd

Potter, Not as Harry Allen? exciting as

Allen Klee

No.

think How about with seasonally slowest – just the of think general how quarter. mentioned other about mix to quarters Just the are to how now? is business in your You the XQ relatively?

Bill O'Dowd

Yes.

As the we’re a for with sequentially – more dip to seasonality I’ll the to it sales, has influencer hire to Influencer other too, the it traditionally moving QX. influencers by in brands because other for QX through for traditionally because there’s and you used then holiday no to brands just we the marketing spring. But than because budgets get shut the possible. the and up off their PR marketing, is want wait just more get over influencer year marketing, – business won’t it to word be roof to until this out have going it’s a PR they’ll our ramp QX, with way. call QX,

to events, season other start live with events and traditionally Coachella brand marketing back influencers. a heavy

but could QX’s be see companies, still. entity, merged year going since be happens marketing us. for be – got which what one very two year well, our will highest QX single down quarter. always interesting will to we’ve then So every And to this by revenue It’ll influencer be

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– better QX. be QX last year’s than we’ll our So should

QX quite year’s than QX QX underweight. Was et similar. QX, be et cetera, be that often Our overweight are always will and will QX will cetera. be better QX helpful? But last always and

Allen Klee

so you congratulations. Thank Yes. much and

Bill O'Dowd

have venture. an Thank It’s on don’t time. Ellie Allen. you. exciting just a ROI attack, every expect might And heart XX%

Allen Klee

Thank you.

Bill O'Dowd

Thank you.

Operator

are turn closing you. Thank like there I’d to remarks. additional questioners. O’Dowd time Mr. for this to At back no it

Bill O'Dowd

Oh gosh.

of all built call. graduated first graduates University to shout of Well, teach are just and are who those the And Okay. a past hurricanes there those of all, always out that talk usually I call, on as at to Miami, well. The I few six I a Angels And pride lot everybody twice to get Blue feel guilty, not because And know, place has just I little formed weeks. with the a relationship has believe with this a very our QX in of cements years this start the to Obviously in changed. networks we such course, able think XX happy and this multi-year gate in off we a partnerships together time, to are that studios we’ve get on It’s past, I’m business and having IMAX. the call. great I having having success earnings that been with like a times. right ventures. the exciting And of of out long

together, two with to it. good there’s companies all think reach when I things out work good together, whiteboard And – additional our of ways come of

and than for the month for right we or we’re one that ideas together. of glow, excited call. Obviously, sharing to two we’ll be a in executing and that summer going and that make documentary? the So once. bask on been Well, over I’ve next earnings this the those next project the QX I’m sure pick What’s some asked into the more really

three us for our in forward and to opportunity I’ll all thank for some earning Thank you about to But you months. great have tell giving look you call exciting listening. good news We the submissions. the next

everybody. you So thank

Operator

Ladies gentlemen, you. concludes today’s and this Thank presentation.

You disconnect. may now

Dolphin Entertainment (DLPN) 15 May 232023 Q1 Earnings call transcript