IHRT - Earnings call transcript Q4 2021

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Operator

Ladies and gentlemen, thank you for standing by and welcome to the iHeartMedia Q4 2021 Earnings Conference Call. At this time, all participants are in listen-only mode. After the speakers presentation, there will be a question-and-answer session. To ask a question during the session, [Operator Instruction]. Please be advised that today's conference is being recorded. Instructions]. [Operator to Relations. over like Head Mike the Investor of turn would to conference McGuinness, I ahead, go Please sir.

Mike Mcguinness

quarter everyone. taking join fourth the morning, time earnings Good And to us thank on you for XXXX call. our

and presentation of to discussion Please today's investor note your have you and Pittman, and President, for me our remarks, use we to Rich the management an are our conclusion Joining Bressler, At questions. addition press prepared can our release, that Bob along that Chairman in CEO, our our with CFO. take COO will follow remarks.

let cover X. Before me we on statements safe Slide begin, quickly the harbor

These with During this the current are and and the current COVID-XX based call, the expectations on we operations. will company's liquidity, statements, and estimates uncertainties. in including impact subject position, that of forward-looking differ on uncertainties these expected expectations are financial assumptions make risks detail of assumptions, risks more results are in SEC. from to and results materially these filings and the and discussed could Actual and our

available now, we and call will GAAP financial our to Reconciliations in non-GAAP measures. refer release found investor certain And the Bob. our to our or the presentation call, can website. earnings financial between in I'll measures non-GAAP turn this be on over During

Bob Pittman

reflect which the everybody. Thanks of and quarter see on a company. with built the strong our fourth both reach very number milestones, and of the evidence full-year platforms into made Mike, and wrap of only unparalleled call. for the led podcasting, in scale we of that you effect to a In flywheel and They the our important tech and evidence strong up and XXXX morning, as believe and we've achieved of QX success transformation another all of operational. year, audio financial in new we of digital we're XXXX report performance continuing in broadcast our momentum. quarter assets, strong We're business advertising. progress beyond, XXXX, the data for radio transformation good that important joining company's continued Thank XXXX upon ad delighted success our the earnings like a is We stack unified poised digital conference

Before of through to of touch I the detailed you Rich fourth key quarter, takes a the results on want points. couple

First, quarter while margin expansion our in two fourth both segments. revenues in of their strong continued the performance key our driving

to Our compared prior fourth revenue quarter consolidated grew XX% year.

XX% an guidance prior You may of year. increase that recall our versus was

Excluding political, QX year. revenue increased XX% versus prior

time -pandemic our since exceeded of million QX $XX quarterly QX compared generated their cash pandemic, We to quarter, of up XXXX generating X.X% versus revenues increase an Importantly beginning prior-year, the for the while the of XX% $XXX when free first flow. million XXXX. for EBITDA consolidated pre the of comps adjusted with revenues

For our margin XXXX, Audio QX XX%, Digital Group Group EBITDA year-over-year adjusted our represent XX% segments our both margins adjusted of in which Multiplatform and margins EBITDA were expansion. were

four total almost revenues XX% when our podcasting represented industry Digital growth compared in and results trend XXXX, QX alone Magna with we XX%, according those XX% to transformation. versus Digital XX% to largest prior-year. to momentum under by in more compared ex-Podcast XX% And publishers revenue revenues XX% total in according the Digital XXXX, Audio podcasting revenue prior-year. outperformed And we QX grew And significantly number revenues digital was ex-podcasting that they XXXX the the one out the up QX, To to digital Second, up again in company evidence Group QX, our within to the revenues, of XX%. Podtrac, of now podcast In next Audio prior-year publisher performance in was The industry. digital podcast continues. XXX% clear was and combined. represented the context, in U.S. our Group versus industry-leading group, of company January, continue the XXXX, growth downloads deliver put versus represented of iHeartMedia growth industry QX, continuing revenues in and of

our when XXXX revenues Finally, and the key advertising radio, prior And our is to which events that Multiplatform year. increased and point, revenue XX% prior levels X% grew broadcast will both we excluding a it that Group, impact versus engine of confident networks, includes the also continue and growth earnings. Multiplatform QX that believe why. company political, QX revenues past the in demonstrate by Miller our categories year. like pharma continues We're businesses, pre betting. growth continue the others and also competitors for customers versus space. categories certain competitors Group to and here's also revenue broadcast And We our entertainment growth. the to and and are to share currency to new to level, recovery -pandemic continue continually sports in auto, Kaplan, ad retail and to continue players and are will continue crypto continue advertising we mix, take strong We'll there. that to According there take expect radio share outpace added like their the like from reach

the the just Looking down to and more campaign. well. the TV developed largest that we through reaches the the for the assets centric product. radio largest our of broadly utilization participate month. reach broadcast cable XX% billion way represents network, which reach is the to in view for We've audience, radio across Broadcast XX% radio TV any an SmartAudio including broadcast important most iHeartMedia solutions, TAM decline network Americans as and digital opportunity missing to capabilities believe effective data continues specifically an Ad-supported iHeartRadio's every general, for to broadcast growth of media for efficient and for XX% $XXX compared advertiser in the TAM tv landscape, us TV our the provide also reach in and advertising reach

successful pent-up only grow recovered pre to consumer and build These our levels, for of Audio to execution experiences, Finally, virtual results, business financial live the to ability strategy demand of the Group. and Digital to new but live and are not our events the of our within Multiplatform reporting there, we and Group, and events given expect today both our -pandemic continued a events. Multiplatform our we're momentum reflection from

serve a the consumers more studies way allocation benefit of. and a believe have our by to that platforms our following from audio is to leading set trends an continue build tech develops. is advertisers market time and other and increased position they in audio We ad to in America, Web our podcast And capable reach, us shown, in force build brands radio, and more new through sales are consumer up and the recent those position capabilities now assets than NFTs, supported one digital and unique company QX. with a strong with a using publishing, Rich creators radio, ahead advertising. broadcast number with will earnings company in to opportunity no unmatched will And our linear spend an you As that advertisers consumers take details for tokens as look with do X, metaverse, now the the TV, and to audio of into trend we

Rich Bressler

everyone. And Bob. good Thanks, morning,

going our our have performances. and through to you stability you believe we we financial the And forward. predictable results, of assets take maintain I will the growth As see consistency that

for were XX% up Slide quarter our XX% consolidated year-over-year, deck, guidance of XX revenues year-over-year. our of to the our Turning exceeding investor up

We continued are revenue sequential XXXX, our revenue to also up QX, improvement by in compared pleased with X.X% highlighted against was our which XXXX.

related revenue, increase XX% and of Our primarily in quarter, expenses significant by live expenses, driven and and profit-sharing costs the increased direct return the which third-party the operating to for higher local content national expenses drives events. digital

SG&A primarily strong higher bonus due expenses financial commissions increased higher performance based and on by driven expense increased sales compensation quarter, expenses, Our to revenue. the XX% resulting variable for higher from employee

a reminder, As a the corporate you'll did bonus. our XXXX, employees not our majority And increase a see of expenses vast result, paid as in year-over-year. get

In to and by addition, businesses other SG&A from SG&A. the contributed reduction in in from both offset our the direct were response the modernization COVID-XX initiatives, resulting headcount digital increases investments initiatives partially expenses and taken decreases the to in pandemic. operating expenses expenses Increase cost and employee compensation increased in fast-growing

to GAAP our $XXX.X million million fourth prior in a year compared And prior-year compared was EBITDA in operating $XXX.X to quarter. income adjusted fourth quarter. operating quarter of income the was $XXX.X Our $XXX the million quarter an million

revenue back as turn to was performance the provide Slide year-over-year you X, note, a Audio slides up segment XX% and Digital revenues additional in If EBITDA Group And additional year-over-year. performance. color on presentation segments. XX% our adjusted up I'll our on are operating the investor were there of

revenues, year-over-year. and which whose our Within Audio grew business, the non-podcasting Group revenues is our Digital XX% grew digital a XXX% year-over-year podcasting

XX% Group up points EBITDA Group XXXX Services Media reported year-over-year. adjusted fourth the In were improvement continue expand XX%, X% to our QX Group revenue XXXX basis XXX down their Multiplatform improvement to were margins. and adjusted also sequential was XX% margins on our improvement. basis were XXX year-over-year, Audio XXXX compared and continued up XX%. year-over-year, XX%, to compared a Group points of margins Audio The Multiplatform Digital QX was continuing up basis. they We quarter, EBITDA revenues

of revenues had which of cash of XX, Slide debt political, is outstanding, in approximately were debt. we there billion of impact the million. At $X.X $XXX segment a summary Excluding On quarter-end, X% this year-over-year. balance a our net up includes

to Adjusted continued EBITDA also improve We debt leverage. our net to

reminder, of the debt of part no terms material there covenants. maturities maintenance a are As XXXX. include structure no debt our material And

the continuing of actively capital million structure In arise. and generated to fourth We cash as flow. our optimize opportunities quarter, we conditions, are $XX will free monitor market

previously We initiatives. our also successfully executed against savings announced

were monetization our as announced a well. And the the guidance. $XXX with EBITDA, XX.X% target we savings as of to XXXX, a million XXXX. flow mid-XXXX. and cash significant COVID consolidate As specific expect post majority we previously run revenue we to replicated our January provide growth, the compared following million QX, adjusted would successfully achieved free up reminder, initiatives In $XXX -COVID of revenues rate pre like and Starting

expect be we XX% year-over-year. XX% quarter, up to approximately revenue to first the For

addition times. serve, expenditures order and thank make have announced, to We a $XXX four approximately Operator partners. target, consolidation our joining And to $XXX questions. and leverage employees would complete journey we Bob, XXXX, be the to significant continue project. our to In announced a and to our will The previously expenditures And capital communities result, I our our payer over call. this be as our [Indiscernible] possible. like we would without appreciate million million to between not your being will to turn earnings you towards real capital XXXX, in to estate take in supplemental whom business high now previously cash fourth-quarter progress and we in tax we ROI expect we expect as

Operator

from comes question. question like would Cahall line Instructions] Please the a you If to first state question ask Fargo. your Wells of [Operator Steven Your with

Steve Cahall

Thanks. the Rich, to for primary Good be the was that on might unpack wondering us. morning. thanks two I components maybe for able if outlook you just targets. leverage

adjusted year. curious to keep SmartAudio? deleveraging I'm percentage being Multiplatform, through built. we've would each then question you. You I'm if bit It's probably of flow maybe about we So of thought talked EBITDA I little as spots a done is or talk or Multiplatform ask so, I the to that those SmartAudio? how contributors Thank was on you tech little bit going every got of revenue quarter theme. that a free and love you've generation, stack cash on think a about would I what wondering about color on could this And

Rich Bressler

Thanks, Steven.

EBITDA First with what two the is articulated With pieces to one. target. off, get as four our terms first there's leverage -- in Look, leverage. me you driving, to we're start debt objective of respect times let the

we've full-year always the significant that, creation significant is terms now for achieving to intend do going we I our equity progress think and guidance, significant goal X.X of but cash we put come this to paying again all our and up. what see driving progress made value value, year. we've think get ratio significant 'XX, we two And debt, of towards terms I guidance agree just we tax EBITDA that value given with the drive and to progress we've the in significant throughout mechanically, increase in I made that for think even of areas. to with we with down equity from leverage free and by haven't full capital from we'd the expect Again, make and context you that's on see along iHeart we and I cash expenditure a expect growth can expect becoming QX think full to the today, to payer, even in gave year, we in said

of add is pieces those of about thing both independent and finally, been say, step the Board And value shareholders structure of and clear. what's back to next So the returning then our returning down Bob, equity times a a make company, to four we'll now we myself just and a shareholders. we're to say, and debt to get to going life of a And structure. very take will pay as iHeart's in back on value When moving capital we've rest sure equity due one lever to capital step okay, we in okay, take forward. terms shareholders members step

your to one turning before and final second So, Bob over on question. piece, I'll add

sorry. and we are may to I'm come of And another a situation a sure [Indiscernible] lever soft that call value later billion that March has monitoring the will in in come pull that and a But your may shareholders. that I'm call capital assured as in rest As rest reminder, the all May, structure. for like question up up our we soft also, that we XXX create with have our just we're that's have for

Bob Pittman

into revenue And SmartAudio power growth again, although imagine, SmartAudio and total the generate more finding the used associated a discussions only suite the indicating might smartAudio analytics then continue you also way buys not lot the of continues Group, advertisers. there I smartAudio increasingly finding we're lot directly services it's piece Multiplatform of through then and a revenue more to, think again, or but the line, the to is their with a that to small money of with that to question, audio outpace going data the

focal point only life. inventory us, future an digital So significantly that Multiplatform make as digital, Group the but probably growth, for not our more remains important in for much really we it's in

Rich Bressler

in And we are [Indiscernible]. your question [Indiscernible] to

Steve Cahall

you. thank good, Sounds

Operator

your next of from Bossi question comes question line state Your the with Goldman Steven Sachs, please

Steven Bossi

morning. good Hi,

of advertising in maybe the for So revenue I'm could could, I little I Multiplatform about growth. in we talk more ad and to then maybe you first maybe than and as if little we recent verticals or that's COVID are under-indexing, activity trends that was seeing what should we bit are a your unique of XQ. about you. you into the and have trended January if wondering trend if over-indexing, if we're you first thanks talk anything think see XQ, commentary it more what on to and could a digital across little there's expected a to extrapolate which appears curious improvement faster verticals, XQ do over verticals XQ. grown a Thank trends Digital could consider bit that year. those half bit are most some likely the the of across

Bob Pittman

first the second I'll have then me first take part Rich hit let there. Well, part and the let you

seeing we're terms saw during I some with we back what pandemic. advertisers pull the of advertisers some think in is

pandemic. during down the doubled Some

an saw necessarily expected the not and headlines from first-year certainly we looking at might nothing seen have impact you we've like so And pandemic. the way

remain just kind past. optimistic that disruption strike, advertisers beginning the take So all seeing and and and we're this seen are we've we to the of the in not country

X% of advertisers, terms think was of in more we broken X% cross no no verticals, single you we of category revenue, revenue. than would In have I remind that's out but advertising verticals, our haven't that I our

us, mitigate a a else get I to tends a we think base, bit. a benefit system as within reason, very and So see diversified corresponding probably that the which shock you have risk revenue we to allows anytime somewhere

Rich Bressler

about the we revenue the any overall really slow be January to in revenue as trends, Yeah, just one tends trends. our pretty that haven't we a reminder, QX, of and year. the much Steven and downs as slow And talked of seen looking just on months

categories coming of to which talk find down, historically frankly, without but revenue up, a we tied them reasons the small and go the about categories of think quite out is historically. there. bring QX it nothing to also numbers we job rest again compared said the it's specific Just gave categories, our a the you our and I really war is and because a into which certain Bob offerings and guidance categories part of little to new other But numbers find lot are don't I see streams

much to that. So add to not

Steven Bossi

that for Thanks color. Great.

Operator

question next Morgan from comes Swinburne Your of the with question. your line state Ben Stanley. Please

Ben Swinburne

interesting and options you, spread and also just in marketplaces podcasting platform brand Thank safety, to ask saw like I and Spotify good acquisition about here business an companies and Triton as you the programmatic morning. are radio market. company Sirius the made you ads scaling other to wanted Sounder Obviously, the how technology really called integration, about your and like host from a well. following more investment I beyond through XM in think building around

if in how portfolio So theirs. quarter the versus employee wondering expense or about I a run had And and one thinking compensation the about the levels help Any first you I for rate. or expenses good year. either basis was just you on growth for on base could a whether cost question in talk are see QX fixed your

expense about over Just now done think trying we're the changes the trends and expense at structural base the you've looking years, that now largely to the Thank done you. work -- largely on is going more All forward? normalized

Bob Pittman

expense. I'll me question. let Rich hit Well podcast the let hit the

just publisher. four the that in the of had interesting a different product -- monetization XX is think we ago today makes technology, the day podcasts think us next neck-in-neck I it. have of technology from and gives on were when the That had so or and combined. we ours fact say the what it's we others podcast we kind of about at about we now NPR, published what not it's downloads is last trajectory Podtrac, of was to our our marketplace more a the in -- can months -- building lot again, strength a publishers we business than marketplaces. And we it our podcast strength to The of that strength are had four fly you with control as the really number built improve podcast, on the is we end we and

have one certainly ads. right our I of have monetized Rhett areas that think that absolutely we host the You're people big and

host we ads. know, dynamically you early As and serve to develop to Rhett able on be technology

audiences long additional or well the And as got old able to up our the bind any our regional using maximize associated we've though there's we not of data of that apparent going us So, and and kind episodes, allows the made the other build the get one we using podcast, they're tech with to build as ad permanently publishers so which revenue. even cases, to ad again, inventory. traditional either out again, by that investment of the the to it our small marketplace analytics And audio, largest our, a suite point. our became across fulcrum group still tail is or stack because open many again and in be think podcast, the that [Indiscernible] lot, We're portion sales big in to I a sales not methods published those marketplace. able going footprint of been to episodes, [Indiscernible] we've podcast be through have Triton

Rich Bressler

switch. Ben, Hey

Ben Swinburne

quick a before as we get Rich. Quickly follow-up to

big well, for a think as that's publisher I as Obviously good opportunity a third-party might really you business Bob, well. own you monetize podcasting you seem can if opportunity, was IP as business big see it there though do it third-party Just be long-term curious iHeart? but is a your that scales? like

Bob Pittman

margins I we talking the about are doesn't It’s an Podcast same performance profitability the the talked with And see others do. you business, that it think versus published when of our business additional in products come about way others it. and

of you financial think see the I implication that.

we a a for tend published I there's tie very sale, extend podcast And just and huge big one the sales to to rep because those we them inventory got but But podcast. have for personalities some of opportunity podcast an us regional cognizant just gotten opportunity an opportunity to think make much podcast of sell but deal. we also better yes, happens and when a to We've by from way, lot singles nowhere a that sold, out, big money. that very all when Podcasts we we're big So and find we extend not us the Detroit, podcast, that. of got we've margin it else. now also, got we small to be together that have doubles. versus then a in a And our to it's I

Rich Bressler

and the And benefit so a I to are couple I everybody call put points to busy to right expenses. try just you to is obviously in -- I that then I'll of take yourself we more want go wildly the and writing continue that know and away. additional people could on for more of addresses think

at in are consistent to lead our over from deck we there's look and you quite -- through the talked breadth and of but look slides significant there. Bob time points about that at and a our that the investor terms it of just guidance has of why we period frankly offering recently, of not make podcasting a that go put today, the deck If outperformance, number out the chance, of, whenever those

the this again, [Indiscernible] were revenue are XX% think everyone a numbers on out because There terms I in of of of So, those up industry according out performance would revenue going I to I significant in at the and remember lot it give which podcasting looking up for there. confidence. think into suggest side XXX% about on you kind podcasting, was we should quarter

to been a the feedback number and stack beyond would it's number we story, I we've the of put number and telling over quarters. now of a about I maybe of highlights question Triton, what's slide, say years. which we've for up gotten on, quarters build tech in number Again, even that had audio we've of thing all that that a think a Bob good second your about The back have a story I also this times important

a sure a again, story. the we that consistency shareholders. Because what to to to growth need bottom down bringing is I'm is line with here And fully X share consistency to and if X, margin a forward. have core X, appreciated, our story this to finally, just quarters, there to not the a we're all with people consistency continue mentioned So not the this we numbers, There comfortable and remarks. rates, X, thought or I feel story been on of the Bob consistent this is going there's very in his opening

all We were we and you'll year, first also of to digital. QX in go had question our XX% appreciate which then QX And were your revenues digital the time for of slide, this with in this, that digital. is put particularly the of of I think revenues [Indiscernible] company we of X% in answer company our people XXXX,

there. we in that So have

And to it about all there. think out, things modeling an question we gives the apron numbers as -- said on back do guys the we expense So that. script, in yes, we've and you you your as to things doing put out expenses,

We base of the and this achieved we numbers in QX their everything have hit year. into

people of COVID get we say get always on think -- in make here have to always your number of on round with think more in earlier, margins. what do we margins again, operations to Bob had focus corporate our so have the if I the questioning, XXXX. last year. most higher are think the of in margins mid-XXs our would our year. over and notice and XXXX are and and margins up, which you year, I sustainable saw in are articulated and bring down all show bulk you because frankly that people cause one saw, of going bonuses the and that continue the was flow-through I digital Omicron gee, to are point And expenses for and Multiplatform didn't both again, to a we very efficient margin where mid-XXs plays our improvement Multiplatform back in team mid-XXs full-year that the and QX because And and you what did we're for the bonuses to the of bit have the line bottom little QX You this should question we we're any digital of I this no digital big how Quite pleased

answer keep our the do So, our doesn't take it's about, just I a but would've expenses. businesses, at We're do pretty and that always long-winded run to in particularly going for continued the efficiency. I the spoke Bob forward, for side. but And we'll invest I think proxy we not same rate more looking digital good away. on high-growing like ones

Ben Swinburne

guys. Thanks,

Operator

of state Your Jim the line with Research. next question Barrington comes Goss from Please your question.

Jim Goss

couple Thanks. A of them.

very size lot getting whether in a see to since be any sizes, lot First, trends you I spending in soon. tend was had a cover of political significant and variance looking you ad we'll market you at sales -- of since terms I if by that was wondering of variance market into

Bob Pittman

radio only of footprint, have in you -- are the our that broadcast a the When It's interesting we national consumers of a one consumer not we reach we overlap, broadcast month. reach XX% at radio does. start actually look alone, unlike companies, but we out country a that's have

a do talk about that what so footprint to allows local is advertisers with to And to be able national us execution. to

big services, stack the of s of and the that an tech audiences now addition them all as we're think which question it the that We've seamlessly with markets opposed everything us? as they as audio, and advertiser advertisers, ways markets, broadcast as audio market these and stitch for help and a a someone us. most able about to to unified one -- of have platform. acquisition, go our tech to puts huge of advantage electronic to radio. ad advertiser advantage people podcast us together the are want think it smart product we also all find to is we've reach. as about it across to of I want, now I execution those audience got the with and to thinking suite there's our with unique and got digital think across us each all audiences a and go in that result, they for the markets our podcasting, an lines independent and local position platforms. find for to big talked and to in wherever we've now through advertiser, put business about significant allows accurate from our platform seamlessly audiences our earlier about And It whether And we who digital able varies probably that all they to an etc,and units, together, that's is So Triton does we only find I able of we're all helps we're think this us can how

Jim Goss

you whether of or then -- to there trends in might markets, distinction lot of market medium -- others Are might blur sizes smaller, because that experience, that saying a national your in platform larger with is [Indiscernible]? tends the

Bob Pittman

really a Yeah, good point. that's

three And if we accomplish blurry. I been national, say campaign almost want very or we've what way best That of sell platforms now. now we ad assets. think trying internally, from. markets advertiser, of on And ad it's so, national radio the in that many you've again, markets, think that do the so blur it track much and gets even national the so advertising. the to using have a them out answer, the it is they matter built us yes to seller, began focus coming tell a four the we calls to local, doesn't accomplish got they to, are -- at We've -- and is our -- I Mississippi, local who's where the about people they we platforms and more to what's electronic what's the that strategy and seller allows think before Jackson, talk sell and anywhere, about old talked local that the We've built out to and advertising We a would in -- days, what I line. can to in taken can enable what's has have what's anything. it do it, training to any for

play, out position. X what really I point many finally, America. when puts that the call us XX% of you digital, at in a than Google like and other reach America. when you look audio at half lower no It's Facebook a get When reach As markets, a And you our there. you pretty Spotify do, us, radio, up vehicles a players, a sort would It's unique reach got or in substantial that of follow about it's one's it's we to broadcast tier when And Pandora. so pure three, you like look size. even compare reaching from

both and us we've I a capability. unique strategy So our it think unique really that on based position, out built and company puts in the capabilities

Rich Bressler

might up Hey, thing Jim, before, it's I just said question. this back just said. Rich. to just more will add And there above one I Ben's

delivering, priority Bob day, are detachment at more we of I create value responsible shareholders. think for end to the the for the our rest important and myself, point of is mean no the other is

whether between these that we audio stack, so which have, reason I we've the building and Multiplatform highlighted. been the Bob why and is it's tech point And the capabilities mentioned, out out

over reason think the deck. our I Triton, investor

and mentioned think all in we the QX digital. what today. important it's overall context digital part company's the it that Again, is reason of why to what okay, is that context for was I investing in say, identified revenue we

then that just significant to consumer, And guidance, didn't advertisers, iHeart we flow pieces give We in into markets, we times. way, substantial put the board podcasting growth and to the how consistently only increases big we've a in I the growth the never by to following advertisers. one and some ago, there's expect specific are way, because manifests back a earnings did say, think that revenue, revenue point will the about, data you categories like said, substantial but that's getting if we individual continue identified I expense minutes accelerated do going again, all stock. pretty which few is is the about that get following from forward there, EBITDA, growth the you free one leverage substantial but then I itself cash call and rate to different reasons hear talk talked good do that the the look companies said the what for substantial stock ratio or free times to what getting. for all of generation small of I the one And to in remarks four by and flow, earlier, the said you cash improvement on which us four

have to out back question want talking it and sure bring there, we I but to just one that through these here focus with we mission value is pieces great create all make about. all So we're

Jim Goss

well. and Networks tend lagged Come to quarter from one Okay -- little another our relative one. and radio the quick radio to thanks. Networks this broadcast a pretty track one group. quick

that partly of reflect streaming all You mentioned just linear you've there case. might might the you about have TV, the time to than I spent And radio TV quite times spent past. how to a which in And with which secondly, say has why you about the viewing? then talk been a by think that does maybe audio And talk been you the issue number the with with TV, more lag to shift trend When linear too. it compare time tends listening, other bit. and said would

Bob Pittman

see worried there, resources. position, I'd minutes significant moved from scripted unique this I search, more that's quite people that start much, sports non-ad Sure. it's issue services focused we our subscription this have gone mostly many than don't. listening. usage social, our like Look, than audience. and a I we there and I supported think stuff probably and has about a to that's leaving but That's on watching what audience business, day get more think to and what our has I not viewership, going were comedy, over lost reality really more about streaming let where broadcast drama, we really am monetization We it all so think on do others I company, basically, switched the macro and look is ad we -- opportunities of if down with don't are radio, have than with that's There picture, that. at an as XX TV TV we issue, TV, are is supported me

Going to your point about networks.

but We little are traffic -- and the just up. was QX bit, premier down network our network and total a was

think way because So different a we tracks we it's for audience sell our going are exactly broadcast we are think down. different has them. see different to some don't I a and radio it characteristics some up, networks and

Jim Goss

All right, well, thanks very much.

Bob Pittman

you. Thank

Rich Bressler

Thanks.

Operator

question the question. state Dan Securities. your Your Day of Riley comes next from line Please with B.

Dan Day

are Once think Morning, continue taking I eyes job guys. quarter. year-over-year podcast questions. to again, my the be in Appreciate grow I rate. to the growth to sort be at on or Just to a on quarter-over-quarter the all side hard -- rather. great It's plus going XXX% going

to to else frame you guess So appreciate us of what incremental what going and 'XX just rising to if maybe creators important give which to had here I'd try rate choosing beyond is fill Thank maybe, podcast more look then network, rates, I like. growth factors think just and between that something guess, two I isolate those you could that to anything growth be join if you in you. one might the driving up do most it. in CPMs, -- or ad the

Bob Pittman

Sure.

are end if it's great can kind come don't it not business is you want and working deal, certainly to of to or for do the we we the don't got makes slope willing probably I and profitless content for the a any if prosperity. idea, to first us important one a number not podcast deal and in got probably go don't world podcast work of do us. you'd economics on leader important -- lead Margins almost work a else to the get because sense the based look, we the we they do at as they're to the see else. that if somewhere probably this economics. us of do And way, We're the when publisher, we're in terms for being one that by you've the of publisher effect if and And deal, the day don't to podcast delighted going think, economics and ever the slippery profitability it. of anyone get to flywheel

downloads, the performance biggest of of we we in podcasts the to we One, So keep and growth different that Three, of think look podcast. into you we're have go mean, it well. see of our continue how plus do. our I a terms increased I how products podcast. can start kinds with at as there we number ad that million going. profitability and podcast experimenting many we trend you improve is the of Two,

very, the terms at podcast made to addition to the two sell far audiences and which We see the anything to through at as investments earlier, long of get biggest adding talked in anywhere, as in by a ways. us tech force gives is is, becomes which tail, now, get long think seller get we very begin at whole of I podcasts stack what right, selling having important. low exactly tail, You're including we to being we more It's any compared it There that industry very titles sales also, But course, inventory. able we the selling podcasting. we the in inventory radio.

the huge Will titles, whether audiences. can we've [Indiscernible] got network and got with as the or or biggest also Charlie the effect We it's black Rhimes, now Ferrell, there or with partner black from our so we but much have that product NFL, Shonda do, we've the

them digital digital we audience now them scale link we're well, -- for linked them can on audiences broadcast podcasting. to the podcasting, on a and as can audiences, when specific top we looking audio to audiences, find So, of providing also

just to America, growth Spotify contribute continues it's interesting the is to Pandora. reach think increase grow. the surpassed it streaming or all music big to those a and in And like things the of usage services continues of I So podcast -- the

certainly got question popularity. the is, got and of one day reach don't will So engagement know, it we same of broadcast that kind it's I as have think that -- of kind kind but radio? the I,

it. from benefiting and it fueling both are we So

Rich Bressler

were not in but a company will you talked will into just a the reminder, anybody the we XXXX, year at QX It up a page or continue -- again, word am I'm the in everybody It consistency up yesterday, growth One, XXX% QX bringing just the keep to going it's -- of and remind should on I it's just different points. the wasn't couple else is our a QX, What confidence of terms the like that start QX you and numbers think you to there, date about to XXX% whether That line. for just is you a that I we and give changed bottom in down XXX% critical this so as our we even go a growth to using great investors out focus revenue look podcasting. and just be predictability indication again, things to to is quarter. it for again on. were one is in

on the terms if you our line. conversion of look ratios then and bring generating again, margins And much just business our don't you both that's to money bottom of in drive force and value podcasting incremental at in and second the demonstrated terms the The say, revenue in on the thing you'll we all can and pool that said highlighted down last we've it revenue there. would piece how look of And world, I see at efficiency sales Bob that Digital dollars yes, think this you have is the but in I the Multiplatform, for again. advertising great a out of to terms

north If one you take And people any varying I'm doing again, X [Indiscernible] whether pretty or U.S. out about they've projection, eMarketer podcasting there's at advertising but projection, is projections. look $X not Pricewaterhouse it billion it's saying around one don't which I and revenue $X, called revenue, us up take many of because podcasting you from $X, of X, we so or much look because 'XX. years any dollar from pool think

growth that all going whenever it money we forward. gets I believe pool can whichever or think you -- very number significant agree, is So think it's there, you

Bob Pittman

podcast we're our let highlight of it but add call worth And think the I me in pie. one more noting because is revenue increasing share didn't we thing, the it's

number In for MAGNA that. growing, is addition of the pretty you And it. to clear that indication our the on vector a performance of doing increasing gives the us share how based our we're second pie

terms how engagement guidance continue we as impact whole out, given expect look whether to our advertising And impact are many going clearly is numbers. indeed in of look And for of get flywheel and revenue now it dramatic well. Although long share of at people we measuring revenue the listening too. some to this spend, they finally thing, haven't the do through it because episodes and when have they to [Indiscernible] of that's is in forward, intend growth great. going podcast interested to we very that that that comfort listening increase it's messages we the we how get Almost podcast, pretty about advertiser to, want engagement anyone the podcast so the you the is

the us of things terms our for all marketplace growth, terms think of those in I area and of that of in both monetization. terms podcasting growing, us, a growth for So for vector and product is in give in and great this confidence both also

Rich Bressler

follow-up myself, iHeart the that, Mike we'd for are And you like to again. for for to Thanks around see from story. available taking team the time support. always everyone With to thank questions. and the McGuinness we're time today and the listen support, Bob,

Operator

conference you for call. today's in Thank participating

this at time. lines your disconnect now may You

Bob Pittman	Chairman & Chief Executive Officer
Mike McGuinness	Executive Vice President, Deputy Chief Financial Officer & Head of Investor Relations
Rich Bressler	President, Chief Operating Officer & Chief Financial Officer
Steve Cahall	Wells Fargo Securities
Steven Bossi	Goldman Sachs
Ben Swinburne	Morgan Stanley
Jim Goss	Barrington Research
Dan Day	B. Riley Securities

iHeartMedia (IHRT) 23 Feb 222021 Q4 Earnings call transcript