TSQ - Earnings call transcript Q2 2022

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, and welcome to Townsquare's Second Quarter 2022 Conference Call.

As a reminder, today's call is being recorded, and your participation implies consent to do such recording. [Operator Instructions] With that, I would like to introduce the first speaker for today's call, Claire Yenicay, Executive Vice President. Thank you.

You may begin your presentation at this time.

Claire Yenicay

good everyone. and operator, you, morning to Thank Thank quarter financial joining us Townsquare's second today for update. you for With me Vice on CEO; the call today are Rosenstein, CFO and Bill our and Executive President. Stuart Wilson, our this call, than future other including expectations, Please note and information, that we make provide historical the statements to related prospects. may statements plans information that company's during to that Act the the Private of cause statements These of and to from harbor XXXX safe differ are uncertainties considered these forward-looking provision risks are results actual statements. subject Litigation could statements Reform and under materially Securities on These risks conditions statements reflect that company's the company's including XX-K uncertainties, on are beliefs are certain SEC. based filed to report in the the current annual subject those detailed that and Form with

non-GAAP EBITDA, contained the profit as should financial current discuss reports including operating be measures, conjunction adjusted and used also non-GAAP adjusted all quarterly, income our which may we information refer adjusted income, in measures in and remarks. the Such You certain year-end may net in to financial with our this our like encourage turn reference go website this the all corporate over our investor participants download Bill on slides website. At would also our to those during as of Wilson. morning. and Bill to I some time, presentation, will I to available discussion would call to

Bill Wilson

moving strong is the industries. QX and and goal radio morning's call, others and quite rest. different this results on in Because from the is Claire. you, from importantly, My distinguish local sharing for you media simply, Thank our to us. Thank Townsquare most today in to broadcasting Townsquare record-setting forward joining all addition very clearly outlook

during country the a released a remember could half may that is currently than of subscription months potentially approximately comes of the XX% Advertising, on which digital-first downturn a outside recession GDP of Townsquare worst during the media revenue, COVID. markets on exclusively it a better our digital top if coming even be that our is important or last Townsquare Approximately grew of which data revenue As and year based solutions, over is Broadcast nonadvertising-based digital one performed first recession local from believes quarters, focused company to or the revenue our XX. digital enter country in the XX% week, historically of

averages the not differentiator, susceptible but rates key we we to which unemployment Another stabilizing are less pick recession universities bases, Army national lower such on top X-year markets selectively of economies focused as State outside have markets and only shocks. institutions Capital's with and to compared XX,

the not has advertising Additionally, downturn. Overall, in less majority, over recession, matter that because of advertising, we are we duration XX% very large downturn been perform severity, which to is local well belief, is performance historically we are advertising, national by or supported particularly our than during no which markets, volatile a the the economic our COVID. worst XXXX and a believe positioned revenue during of

full are that today record-setting year. QX and expectation that XXXX. Today, and deliver will Townsquare we encouraged our best-ever second results the by are be profits in quarter our issuing guidance for the We reaffirming for we record-setting also strong will increased

record growth. results financial a both profit we quarter strong EBITDA. revenue high adjusted And an set and and as reflect result, second revenue all-time Our for

cow quarter we and of in the legacy in demonstrate quarter proud very in differentiation broadcast Townsquare team EBITDA on revenue our the results second our The and deck, well QX XX results, guidance. investor second Slide digital outlined As businesses as have these our strength met which as guidance exceeded our business. our cash clearly is

to very $XXX our million million. $XXX a XX% to plus strong $XXX.X increased above year-over-year revenue of million, guidance net quarter Second range

to million million XX% year-over-year adjusted within X% QX in plus the of plus $XX million. to actually QX quarter increased from in growth EBITDA $XX.X second in XX% to year-over-year plus than first guidance total, revenue profit of of year-over-year revenue quarter Digital the quarter. plus digital digital margin of June Second digital $XX profit our better QX's accelerated from businesses. our range slightly increased year-to-date In XX% profit XX%. margin our profit June XX% QX and our came of XX%, year-over-year, XX% year-to-date with

our June came performance local a businesses. that our clear me as during digital from of XX% meaningful solutions our the Let and our was repeat last it company driver year-to-date is profit differentiator a also recession. for for of

the QX COVID-XX of Marketing advertising and XXXX. vital the and tailwind recession, the increased businesses in XX% to a one to States Interactive, the in industry. Digital at only its S&P and XXXX, digital -- in then XXXX, by Likewise, to return overall estimates, our XXXX for growth business X its declined helpful During and digital have Solutions Townsquare's our quarter demonstrating to QX grew profit our remarkably Advertising according business Townsquare the economy every local plus Digital subscribers did in revenue quarter subscription Global digital as resilience can during shutdown well up held to downturn of importance be revenue our and initial expected backs to continue. that a during X markets. United

all-time profit XXXX. points returned our to Townsquare a the potential during navigate occur, XXXX. the data in we these growth I if to And and total the well unclear end and revenue year, although recession, QX and post business that that we revenue profit share XXXX, EBITDA in XXXX. as quite to again set have were one a very to positioned company's record-setting is records demonstrated going Our quarter of returned digital and was in this adjusted EBITDA to over is QX it the is recession recession continued XXXX new high to coming delivered in recession and well key highlight to COVID-XX if reason occur a at

platform and we digital at have a digital of detailed Now Townsquare. reminder our of and differentiated valuable results extremely as I'm businesses going assets the to quite provide

segment revenue strong very Digital externally increased Townsquare Advertising plus the Digital And on XX% presented as year-over-year. Slide profit a Ignite In is XX. increased market Advertising Digital Advertising second quarter, Our net XX% months our in year-over-year macro QX, QX given Even accelerated growth with revenue of strength X actually profit all margin. XX% the quarter. QX Digital Advertising all the with concerns a from in

high-quality of based XX, quarter. revenue on June growth in XX-month of content to strong Advertising Additionally, basis, and generated third revenue we will of the our Advertising audiences. a our audience pacing, and as $XX and produce $XXX success Digital we which Digital significant is we digital million expect reach the local to trailing net local relevant a advertising current curated to Advertising of continue million profit profit, component key the margin. our A Digital XX% we On that

of providers. X.X to a markets that content have Townsquare across that one and million websites platform. news our largest generated the and States XX billion acquisition monthly followers filling and due closing the Digital in apps and at Cherry million end the now producers QX, the mobile across information exists of YouTube and States, across visitors lifetime our importantly, our national news of void Advertising in local portfolio United views news over entertainment With generate small over Creek of XXX is local social the local over platforms unique includes over United decline XX have and the of

valuable XX of built our valuable user programmatic more per component advertising XXX profiles. success addition, for million digital another has at-scale with advertising, platform with advantage operated access we Being is is advertising customers' our over as both digital able business especially billion audience day own audience. on and our desired our than digital data data data significant, significant management a more that owned and programmatic with in collected key publisher the in incredibly brands our and target valuable first-party to impressions are platform data and and use our from effectively organically this In to We a our first-party solutions. differentiation competitive large proprietary programmatic first-party rich and

Townsquare cookies Interactive, subscription year-over-year, XX% versus Since like in business, it reaching every approximately other consistent more prior us profit, of grown every QX growth basis, we business. digital generates own monthly profit, a With successful subscription-based ours limit companies will third-party additional unlikely substantial Slides model campaigns, is cookies advertising differentiator XX On recurring developed our media significant valuable for good subscription tracking even Townsquare Townsquare. we entirely, environments. a that and component provides solutions for highlight our growth a will through the critical local bad digital be that a benefit is vehicle any eliminated marketing we publisher our profitability quarter, organically for Although launched and margin. revenue million has XX-month $XX grown plus XX% subscription profit digits of revenue well. in its subscription XX, we profit subscription second XXXX. each And net XXXX, of Interractive's of increased revenue and Townsquare Interactive as since increased quarter added XXXX, plus COVID in Townsquare a each year, In during subscription year, X,XXX trailing recession subscription and continued. this quarter. and had the as and profit even year-over-year, versus On of a data economic XX% Interactive subscribers the first-party $XX another this of in which believe and subscription and quarter business make strong has the June million double on digital is or resilient or XX,

have a second addressable for which market, signed that XX,XXX lease pleased XX on the States. of of million the approximately location have us. in end the With a identified huge of quarter, Slide I'm Interractive we United Phoenix. target we runway have nearly June, at across customers We ahead outlined to our Townsquare X in second announce we significant significant, subscribers

Charlotte home we employees of new is growing now to XX currently our over expect being to enhance will allow the XXX in employee our important West location is employees in Coast in Interactive the new this into previously, still we to physically location, move over and team while of date, XXXX, is to for talent East XX our plan an location. Coast. discussed have pool, it access out, we recruiting we've have which on XXXX. The greatly Phoenix universe space the as West component To our Coast added members. hired and us growth built base As our Townsquare over March And Townsquare

we Day. space, existing our for out are build Coast of, out office we ready new by temp the work should West be for space employees which arranging to While Labor

scale have launching we to will location location stated, confident margins, profit we of given Charlotte. second that be previously operating Interactive experience and we As our Townsquare able and operate in our the are strong at

are allows digital talented product us very to is Slide very, that competitive engineering our and one digital and XX, fact a This Townsquare's As own highlighted platform our reminder a design our as was The team retain entire on and key advantage organically and solutions customer products and execution edge. and customer by of developed significant strengths the are manage also team. not that a customer and fully sale to us developed, in-house therefore, our ability and grants competitive outsourced control continuously to enhances which from the of point satisfaction retention. reporting, experience significant, is refined

of platform in-house XX-month line expect basis, our It companies, differentiated the will, X businesses given profit. revenue the million Importantly, and of for also will digital million not being XX to profit a who is expectation detailed with are that over is end less was we margins. and It at factor and sum digital-first revenue that gives reaffirm profile will margin. and valued $XXX love revenue these said, million, credit local us digital of strong digital margin a in grow broadcasters get as train we year. in is we was the are a far enhances being cow afforded profit business total, cash to time, minimum local growth our XX% that profit our that business. June On In digital we a lack have a media basis revenue digital as This of this digital to of representing radio solutions parts trailing valuation its broadcast $XX appropriately digital-first more not That we our strong trailing led continue that digital profit. and be a XXXX. belief by digital Townsquare digital XX-month value of and from information, our credit our company and digital on our $XXX to assets resegment our last

and markets. With top the the XX importantly, we XX Cherry half the radio audience significant business. a with asset diverse multi-platform Creek second local communities radio of attractive and the of and own our valuable of now June, local closing cash acquisition trusted component all key local extremely flow outside connection as and reach our We view stations an XXX markets consumer important in of thus across properties, local and and to unparalleled media

as radio including the a the not plus growth with X% entertainment, cow second auto business view Broadcast strong our also our quarter, overcome number cash and continued contracting, primary political. in industry driver. We categories, by increased strength from and of headwinds mature Advertising construction a In

year. there We X% articles continue to Media we advertising slowdown not recently at XXXX. sometime expect as of headwinds a in do been an decline auto recover referencing in not ad has spend about lot I anticipate XXXX earliest June reporting prior until potentially auto the and am aware and to a concern Index until advertising versus Standard

prior June saw strength we year. over Townsquare, For X% with advertising office actually in

Broadcast, than additional Advertising demonstrate with with than May. what well June stronger our consistent Additionally, being differentiation. June stronger that important May, data we also These are also as experienced with in specifically points was Digital and

platform our radio with Our digital symbiotic is platform.

great Our media benefit radio of digital our capital. platform acquisition local believe we this Cherry first that solutions our solutions was of strategy is strong audience a supercharge and reach the and and digital our because It Creek solutions. our digital radio use

We acquisition well. the expected, integration than this are that a earlier are to extremely we bit going and is close pleased able

to the We increase our expect coming expertise margin the and are and platform sophisticated Creek match solutions significantly ours years. digital bringing markets, revenue large-scale, and digital over to profiles the to Cherry

our brands, engine. local #X strong with we are teams, are strong talented their confident their which have broadcast With to will base from that in of inject local their we digital combined stable many format, heritage, long-term and growth a which

full the to and over Stu, Stu, results turn and provide go everyone. for take I'll away. year increased Now QX our through outlook strong who will year-to-date very it call our

Stuart Rosenstein

strong good all of everyone results started this segments. strength financial We accelerated Bill, everyone. and second had been year with I first you, and across morning, enjoying quarter, this hope with Thank far. so growth has summer our in our quarter

of highest XX.X% Second quarter million $XXX.X period range the have our million, net $XXX revenue achieved. over guidance At In the above period, we revenue million revenue increased revenue, million. year-over-year. June to XX.X% year ever $XXX.X strongly, this of the prior quarterly growing increased $XXX year-to-date to net is

Cherry the Bill June station mentioned, As Radio acquisition closed on we Creek XX,.

year-to-date XXXX's contribution which steam half quarter, is X quarter of of assets, have from coming $X.X XX% $X.X amount. political of or in second immaterial the So and revenue than QX ahead the our spend XXXX's we revenue acquired year. results through first first million include million. up political that Through Political year, million an less of weeks picked second some of in at the half the $X.X of the generated

million. As fourth of revenue we $XX that we all the revenue to majority of exceed know, political spending XXXX's occurs still believe the political for has in the potential quarter, XXXX political and

EBITDA $XX.X In $XX X That's just Townsquare our quarter to million. million. quarterly EBITDA And of EBITDA highest million X.X% adjusted increased the Second is within like of the range $XX EBITDA guidance X% year, $XX.X months revenue, million the increased adjusted year-over-year. ever has year-over-year achieved. of first to

the impact revenue, EBITDA Excluding the in year-to-date political quarter X.X% and of X.X% second the period. in increased adjusted

added and net the compared Marketing subscriber by as net XX% the quarter, supported increased year, Townsquare as revenue increased Digital prior Solutions subscription million and second X,XXX subscribers. quarter period, revenue the and to strong second year-to-date we profit increased net XX.X% segment X.X% to net at profit $X.X the growth. X,XXX In profit subscribers. consistently the profit quarter another XX.X% year-over-year addition of again margin. year, prior revenue, compared delivered of Our increased a In Interactive to X.X% net

digital increased composed our year-to-date. our the XX.X% Our leverage opportunity XX, At digital Digital we are In in first the with XX% goal digital to the at revenue and the digital and profit Marketing driver Advertising $XXX Digital by year-to-date XX% approximately revenue the operated This digital QX XX% the In to prior of the margin were the XX.X% of segment continue quarter and QX market year-to-date. million June revenue XX.X% our net in on of represented million the in and increasing Advertising with largest to range. Broadcast the generating in in of margins as year-to-date and in growth the XX% X.X% year. ended first segment minimum in to of in increased margins X business Broadcast differentiated high increased of profit was internal the Solutions QX year-to-date. expect XX.X% year. periods our profit a of XX a total second and the through Even digital to improved solutions, quarter XX% we to be QX of total, XX.X% way trailing X% of total first months revenue net compared revenue total, X% the year. X second investment segment $XXX revenues in of increased our net months in advertising XXXX. months and well year-over-year half the our the and and our subscription for Advertising second quarter XX% in revenue year. and Digital

Events $X.X $XXX,XXX million activity, other which years had margin of Our of a X category, profit at is XX%. quarter and its revenue in of comprised Live largest with of

QX the Events XXXX's still revenue of levels year. this we to Live QX for remainder revenue, expect of only was improvement, and significant a XX% XXXX Although remain

arm act rather reminder, material us Events our for providing way for a yet part nor marketing not a our a the company, business as vehicle As a of to Events Live allow and but are of another year, In X% Live profitable than be do audience company, profit. company's a same. operating revenue to will connect normal revenue our less our and communities the with and profits advertisers total of growth and

for items income earnings to $X.XX XXXX, second $X.XX per net $X.X share was as $X.X compared the income, or second $XX share which million to per million the $XX.X and quarter or XXXX. to or quarter in the Second diluted million of per net decreased the one-off year-over-year. period. as release, like year diluted face increased compared any $XX.X our financial $XXX for in Adjusted million diluted detailed $X.XX quarter net and in only. statement you or per substantial other share schedule GAAP or the maintained as diluted first share to taxes million prior million $X.X $X.XX of of is including excludes income million included our intangible income remind We purposes amortization for that tax related on to tax to benefit assets. the more In carryforwards federal We'd statement of yields year, the significant of tax NOL the attributes, X provision than of income the

In million, par, second We period. from the $XX.X year. of year increase million we timing flow ending $XXX.X positive we below until Creek, and the that an from was $XX.X approximately last we to $X.X XXXX. adjusted $X quarter This had generated XX-month of and of months operations material million Based we $XX.XX $X.X bonds quarter, positive and million a continue was million of operations cash our cash a taxpayer June payments second year, million, approximately of payments, the has prior leverage decrease cash million trailing X flow entirely on $XX our time the to not as interest prior in declined total million believe we At repurchased on with the to current XXXX, our retired closed compared year from XX, million net of interest of year cash $XXX.X which due million interest will the $XX.X to debt. of acquisition the this payments. Prior first be million generated to In X.XXx. the of Cherry the $XX.X as at of we period. of only from or EBITDA

is believe the allocation end Our reduce this primary investment net is leverage digital approximately at to capital grow year. to business Xx. achievable of to We internal our priority after this

our near has a the program, net and in is Although is X-year million to the authorized Board our reduce stock valued term. stock $XX repurchase sincerely we priority today, believe leverage

business growth, profit EBITDA We order will to drive in continue our our in reflected and which to guidance. revenue invest is in

Turning to outlook. third quarter our

to between prior $XXX We and expect represents quarter to $XXX XX% million the which increase growth million, net over third revenue of and be X% year.

be to year-over-year $XX We between and a to million. expect third XX%. quarter adjusted of million That's increase EBITDA X% $XX

Importantly, QX this guidance EBITDA. all-time revenue for QX and highs represents

full a QX our as raising revenue net business and strength Creek and as adjusted our of the For our EBITDA and result by results the our we're demonstrated XXXX, the year QX continued guidance in Cherry acquisition. outlook

now to $XXX revenue million million, all-time increased increase Our set year-over-year record. an to revenue is XX% and of $XXX representing guidance high would XX% a

now now all-time $XXX million, Bill. $XXX Our that, call record. increased an would to And will adjusted million back which EBITDA and is of XX% also I to be guidance over increase year-over-year the XX% high to adjusted is a turn with EBITDA

Bill Wilson

Thank everyone and We who the long-term in QX optimistic our thank you I and morning. appreciate the you, this to am our proud to about it. I greatly of and performance first us incredibly year, strong future. half am joined share Stu,

growth and if down we end like of and continue. come consistently other leverage out the to digital revenue year-end, or steady did company Townsquare our our growth digital today to contributing cash even subscription stronger COVID least characteristics. and declining X.XXx with recession. expected that to today and positioned believe well strong the by arrive; Due through they just we generation strengths, With at XXXX, XX% very strong is our profit any by may will competitive Our to its digitally face do, may towards our profitable revenue and negative $XXX to net fueled not Xx expect headwinds million we platform continues our distinguish with we the

the and driving is performance. behind strong clearly As force financial our always, proud extremely our our hard work, which of I'm

to high. at any out internally, to how questions. Townsquare. all, time, not this and Thanks reach for line about all any have again more is hesitate we do Operator, the you open As and please questions if high say please

Operator

[Operator Instructions] Noble first line Michael Markets. Kupinski comes Our Capital the of question from with

Michael Kupinski

little from on was your if and can particularly talk Congratulations broadcast on I wondering might bit just what your the advertisers, about you strong you maybe side hearing digital advertising just what terms you side their the so as you well, community. in are your are in seeing of What just concerns? close quarter. of be a terms -- on to are what hearing

Bill Wilson

Thank Good you, morning. to hear Michael. Good Bill. It's from you.

noted yesterday, I was the continues date, strong. think June script as we or impact than advertising data to we And consumer May. meaningful to stronger seen Manufacturing strong. to haven't on released pullback. be any be continues Obviously, actually spending

in talk then in late saw earlier more prices, a I when more potentially about at murkier then QX a our month actually discussions inflation view, was year, because So think we quarter in gas the war and unknown of bit out little point. just the the and advertisers almost get from in every much little the uncertainty June and high And better. broke -- all it that terms our saw we hesitancy and accelerate

is So Obviously, good. quite local nicely pacing feeling QX and up for right we're broadcast QX. now,

in the rest up the digital was year, of our we which For QX. XX% -- advertising,

for year to the in our strength up see QX XX% in to being revenue And obviously, guide well. of that X% XX% revenue continue growth guide as We our XX%. demonstrates to

testament think the discussion spending And with there advertising looking QX consistent being a with I our and as definitely strength strong But back continued is, digital. year for our education quite probably half the consumer as our advertisers as nice. always the is. like and of business there's that's the is So well business as it in overall to and

on last things noted One is digital the advertising of XX%. in as grew recession, we well the the call even

business. business been few mature cow a a treating years as now we've our obviously, So broadcast cash for

chain categories on As auto, we we 'XX some national impacted stores. appliance of returned end levels outside and our like year much of furniture noted stores supply to broadcast XXXX update, pretty of and

to levels. So our as being to others I of digital. being yet in different industry those maybe and profits and Even positioned was XX% go occur, have downturn broadcast think think digitally, has quite in XXXX occur, our and of throughout are XXXX. if who our to forward, if continue to that to we grow were return with the XX% and differentiated to we've a we're grown, obviously, that the even proven segment and revenue quite comps XXXX and I downturn into well digital than a And one

hearing in rose-colored feeling So standpoint, for month here we from prepared less again, not glasses good We're an we concerned But than today into earlier. QX. quite we're anything. at, advertiser as are sit a

Michael Kupinski

of -- third-party data? use how programmatic data your many of the would about use just your -- advertisers for going Bill, And many back comments how you to cookies, your the what first-party for your business versus

Bill Wilson

and the X some X that a on data It markets own mean it fact percent today's across insights call, reached XX%, the I operated noted clear all we customer you that's the adult our to that population in tied way, But as won't operate also target we owned through but the almost them. will. board. because That in of hadn't we know, leverage in. programmatically greater platform and think much differentiator And really we our we into of for first-party us. digital programmatic So Michael, is doesn't third-party our us data allows for append

really else and So in the and newspaper. it the that I or about we think more communities say, anyone operating to be audiences TV it's know we're safe

we customers our for own coming data that platform and capability So to data that for but our competitive differentiation apps we and to management allow that bring customer have we're edge actually base. we our collecting websites, Not given advertisers. only that, first-party mobile

So for put advertiser manage allow we on an them collect them. site we tracking first-party code data to that will to

over hopefully, So that top to QX I of outside more time, differentiated the continue XX, we think we continued our recognize in confident differentiation and there. and demonstrate it And the to digital XX% strength up and demonstrate diversification Townsquare. we're advertising see will markets clearly more people being advertising continues quite digital and are in

Michael Kupinski

And final question.

lot differentiated you're much a how your say, you radio broadcast from revenue of As peers, comes national? your from of

Bill Wilson

revenue. So roughly X% is our of overall revenue total our national

So and in local with in given down part. I your the were small well. not down QX. started QX the National, has as QX. is and QX. our year to impact, sure our slow back in is half impact. it is a material a We as it delivered National a But down response QX of slight it's aware, increases on general, And national advertising as in of question, broadcast such broadcast In part pacing national QX, but everybody a I'm we small advertising year actually in first the is in noted up for did company, pacing

Michael Kupinski

Yes. well And on the industry congratulations averages. of your quarter. that below It's

Bill Wilson

you, Mike. Thank

our I company only of principally outside markets local is media focused on on about if the company but radio just Townsquare company, outside digital differentiation focused other think television, top the point the outdoor, the you markets outside XX. we not only is are truly think the newspapers,

forward see of here So than we think you're maybe XXXX, the others local reasons quite XXXX, that's for today, I and one think going in sit to in -- I strategy different moving results that's media. and us as

Operator

Goss next with question of Jim from comes the Research. line Our Barrington

Jim Goss

got couple also. a I've

any one local Are sensing business content local days. First, same embellishing of stands? you're the for it monetization area, type content? this advantage are you in presence it of just of you other take newspapers where might in Or is radio of the producers largest the existing made there that exist can opportunities absence a that you of these point as the

Bill Wilson

with -- in that operated is our we Digital programmatic. strong. It's So our line on quite Advertising our own

we our programmatic audience monetization in owned our as that if QX. of roughly advertising XX% digital in as and QX, So grew well operated was equal

almost So to some of as that's as a kind it's not continue that. north are underserved scary markets of on community in of It big are call. audience these us adults mean definitely I deserts. as a this we shared driver news as importantly, to a XX% but penetration with historically these in grow, I've really only that, it so do we from mission serve American markets a star for that an

that. quite monetizing do well we So in

other of than newsletters aren't ways we I these and today, astute as monetize take that question don't -- think newsletters looking fees provide for we're piece forward other as a we're moving risk. is we it's affiliate you monetization local can very more offering and are products inventory is, aggressively your that question but of fee markets where more think that affiliate because more you there are a where well an based, into maybe advertising

in digital strength our addition new are opportunities communities, large our them and given So in advertising audience to monetize future to outscale digital today. there

Jim Goss

don't same had One -- they your a in Red one that other the of through it, Big SiriusXM slash you -- you Okay. have Spotify of your slides, had usage saying their and in with and like types distinguish significant markets. wondering between there is those of you markets, usage suspect of the service I'm just ad yet any I competition. and presence your existing might if

Bill Wilson

to deck. referring one XX these results. is are And of who really those for our just Jim the to we talk And contributing question. more great listening, investor that landscape of a top is Slide our attractive the differentiated outside markets X in competitive about No, Yes. sites

affiliate So broader Pandora and like is Music, top perspective all less markets and there XX then Spotify is or And our the definitely or there But in local XM force research is our key a your the or is showing or replaces was here Spotify Apple and in size our of Pandora. markets in Jim, market records, point, CDs, essence, that outside top things use SiriusXM what demographic with. -- no used in historically I the or was age I XX. you that, sales think there than Apple is point for But actually think is YouTube whatever the in data what for the key

XX% So average, markets. a platforms stations a, -- terms listenership penetration in AM/FM markets, X our X about with our have our digital population just our even on the we AMF, on basis. talked our I in listens XX% strength But of such AM/FM weekly our one of adult at to broadcast, of looking the in and

salespeople sales to and markets not our have XX-plus market. our by And and obviously, in do powerful. forth, we stations, on larger radio which, incredibly Spotify the to you're SiriusXM, say of is than in radio the So of any than that who is a here, collection one of adults know, usually local one or business operate our advertising larger outdoor, of our each walk live perspective, teams in than have as -- you local largest be so we newspapers, stations, percent in larger broadcast is able really to television X where and X going a stations into advertiser, our of from reach

listenership any our So penetration markets of strength audience our us. share teams people a have like in the market combination differentiator is salespeople local of sales of for and the amazing with clear don't where XM our local

hopefully, that your to speaks So question.

Jim Goss

a as Creek of I template other acquisitions. little of could couple other if time you sort priorities? frame advantage if others, more Cherry take wonder And of for radio the the acquisition. a to about bit about for that of you of expected it I transformation Yes. your opportunities wonder growth a become And can talk outline business the more

Bill Wilson

Yes. No, with acquisition. couldn't be We great. it's I the excited think more

They which, I internal terms spend talent think incredibly their strength team brands, the of the of that's are the with forces the platforms just was call, to solutions of impressed digital acquired the teams teams and strength that each they our the the the market brands visited extend shared of I we quintessential lacked and with Townsquare of of I audience acquisition people, in on the of they and and members. one time What driving last digital not in outside XXXX again, top a XXXX and type to quite the is radio to had the Interactive broadcast, earlier, if that just had business do they our they in question, were and to levels Townsquare, markets like in year broadcast, like than Michael's last products. Townsquare XX where strength different obviously, as levels, above I Townsquare markets also I think I back Ignite noted XX. the things fact think and speaks broadcasting

great broadcasting, digital. and in strength they So platforms lack those but they for tools have

So that is the template.

a that is personnel, sales of bit the actually then what invest months not For on into see, what a and dollars but few will will only be And a we the I which that's for see few with the to which X of a their Creek stability an anywhere side. So markets primarily we've markets when from we these quite last business the in Townsquare, been you'll did got say from see side, to new running I that acceleration we in transformation, will as acquired already will template first when and in period that majority assets. Cherry you Cumulus we've essence dozen content in point, XX quite on seen digital early when few years years, And you'll months we Townsquare investments, months, broadcast X.X would think the acquisitions. the is see XX digital to the your with business, we've this as the of their years. with XX

more be you noted, we've excited. couldn't this So telegraphed I calls. think also as prior on And

the of acquirer natural the top outside are stations radio we XX. think I

that look couldn't fit Cherry Creek more you forward excited as we think now. the right opportunities they that out because if I to look be and future, So model about acquisition strength into we more

Jim Goss

Okay.

I'll let that I and congratulations. think

Bill Wilson

you. it, Jim. from to I appreciate hear Good

Operator

remarks. gentlemen, we to reached call Mr. turn end have to the today's back I Bill Wilson would like Ladies over this and session. question-and-answer of for closing

Bill Wilson

you to this you, the full for record-setting and in results morning. dialing dialing Thank everybody, thank you, appreciate our guidance year. in Laura, our to and listen for I

any follow-up please have to you reach out. do state questions, not If

We a are you. day. Have to great available always

Operator

This today's concludes conference.

rest may day. this time. You at your for you disconnect lines Thank your the participation, of your

Townsquare Media (TSQ) 2 Aug 222022 Q2 Earnings call transcript