IMBI - Earnings call transcript Q4 2021

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Operator

Hello and welcome to iMedia Brands Fourth Quarter and Full Year 2021 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. It’s now my pleasure to turn the call over to Monty Wageman, CFO. Please go ahead.

Monty Wageman

Good morning, everyone and thank you for joining. earnings this QX our issued release morning. earlier We

an a may of filed access you is IR do remind provided through this webcast you this have our XXXX not in IR also via release also This section XX:XX If morning. it a.m. I Form at like copy, call the available at will today available imediabrands.com. as release to would exhibit for the website be to X-K our press everyone section be Time. today’s replay replay A well starting the the also through link website. April X, on will Eastern as News of

and statements Some forward-looking of our considered this reflected correct. reflect reasonable and undertake and uncertainties. expectations no our made about revise are or future risks believe We performance date. call or as any be will These these during only no forward-looking are of statements We and speak operating forward-looking of statements statements expectations are the to prove forward-looking obligation but financial today’s such our expectations to statements. significant subject the assurance update give to in

statement please filings. For the additional our in refer today’s and Safe information, release Harbor earnings to SEC

comparable measures Finally, about information these adjusted non-GAAP will measures. to we make such release references to for further measures, most on as our the call, this GAAP to EBITDA. reconciliations earnings Please refer including

of I Brands, Now, turn to Tim? call the would like iMedia to the Tim Peterman. over CEO

Tim Peterman

that for grew our to year entertainment transformational that advertisers here. scale EBITDA interactive demonstrate we and a today growth where XX% a That’s I We even their like build do. partners re-launch & start vendors, thanking morning media And XXXX, our our to by our everyone. good and publishing effort strategic produce we necessary employees, brands able year-over-year, and we to with of the Christopher revenue enabled amazingly strategy consistent the Banks. were Monty adjusted XX% would strategy. assembled assets you, Thank iMedia successful grew digital year-over-year, to what

say require good it’s companies entertainment we that criteria We entertainment how makes unique. three many Now build some it, or are every brands non-negotiable at here we us brand for acquire. but and that build pretty

it a entertainment. passionate that accelerating is TV be service to First, has defined is is online a information a as or product the consumer of that brand show, migration entertainment Whether its simply or consumer about.

of it that are customers older. and a must and age brand targeting is who XX primarily women be years Second, men

we one. financially realistically believe we engagement. scope. entertainment, in aggregate create monetize it must make accretive our audiences, year That can our Third, That is is discipline,

platforms advantage is investor are to media brands consumer promote advertising, our the capitalizing enjoy. for consumer on our advertising not competitive which easier convergence accelerating primary the of it actions our certain make see and to become pace e-commerce are always company, Our implementing the we and brands, and we community our leading progress. believe to provide other advertising entertainment, to do first-party interactive digital brands we Since brands entertainment and that data

QX and brands announced this entertainment, segments: hope useful. you media For commerce with financial I three earlier, find we instance, XXXX within operating are as results we our consumer beginning services. reporting and information

with take reputable in has and ISPs. are, recently strategy. a can provides speed explained we great we we our headquarters we for existing disrupt search maintains well Capital We Bang of a that over clients these a management a OTT expertise and Banks’ prepare acquired airline I XXX will. X. about Google, why We In in as and its exchange us data, competitive that and believe cookies. iMedia’s iMDS’ or we was advertising in MVPDs talked giving talked are direct shopping turnout matters. monthly Christopher a is Day Markets a Google’s long in entire be advantages industry relationships self-contained Christopher our in first today growth annually. the you iMDS’ online publishers, the its API promotional We digital we the our with advertising and the why data you know Synacor’s a clients. advertising in like advertising here to which company’s Big garden, has as Hulme hotels supply which continue about digital real has and is and know today. from began will been Portal with shopping media million about $XX overall note the iMDS’ at gamification unique become here if What why connections shopping online competitive who talked marketplaces February programmatic first-party speed, publishers, journey that strategy revival data-driven from we hotel to we going. synergies because roughly for attended. who MVPDs it this with primary ShopHQ leaders announced our you biggest working step business is that brands, and engages gamification XXXX it scrambling ISPs of our MVPDs We It created disrupting Advertising Add growth walled advertising will direct existing technological because Banks’ fueling we who demand investors equipped iMDS. fueling strategy digital prospective auction many And was believe Capture We demand, the ShopHQ we of Eden advertising agreement. entrepreneurial Left’s agreement culture. Leverage about and core and digital we platforms, to top ShopHQ because fits moment, Float online team our platform well XXXtv’s leading catalyst will and to a enable Digital clients, of ecosystem, our with addition, segment capture iMDS acquired monetizes revitalize had scale for and operates Germany part why media how of disruption and ShopHQ’s and ourselves airlines retailing consumer it third-party our Christopher I and now on It an ISPs about side very ShopHQ’s digital to iMDS and first we listening first-party J.W. and growth collectively are our significant platforms We catalyst rebranded video platform where OTT a and and & Google our how time, Prairie, believe iMedia renewal how platform which this We and data interactive of life have add this into all as which iMDS. proprietary iMDS love proprietary the power Banks as the talked million is omnichannel ShopHQ upcoming and growth advertising would online see held engaged for first-party operate We with transparency And as Minnesota view of effort, to users the Services, like in financially XXXtv, pays TV thank in the improves removal is for supply SaaS & which of U.S. clients. advantage, here believe we the global we company. the with for U.S. U.S., side our further & XXXtv’s And the

Monty talk operating time and I well believe ShopHQ to top turn about now year the full to QX a to from the today. takeaways I what I for it is over would financial like our long results, One, time. first in Before emphasize are

than recent XX in the and In margin XX% markets performing to markets. ShopHQ’s in lift launches top creating those improvement, addition to better are merchandising XX% HD programming, expected, the

accomplishing As to XXXX took didn’t I type and goals years producing Two, said capable strategic happen. culture the our performance. passionate consistent financial employees, continually Day, fixed. work just aggressive ShopHQ at accomplishments hard strong Markets create our of of future It by X Capital of is

our consumer these share the expecting extra but us, face doesn’t absorbing is for high we costs Three, the consumer iMedia to are to now. conflict’s unusually COVID-XX Russia-Ukraine exciting Germany financial behind Germany’s XXXX biggest that Europe’s economy, confidence do its continues Since mean Western fiscal economy, we is that is on pandemic. confidence. marketplace XXXX. ShopHQ from do. XXXtv costs everyday, not forecast is have logistics which challenges Western matters. continue new face and of impact challenge, worst We We results Germany’s the GDP Europe’s negative a believe

in large being workforces is and are in already Germany component car few, challenges will companies Porsche auto German shortage reiterate all guidance sales financial generate Four, the billion. full we target Five, annualization growth XX% company acquisitions of XXXX large this factored operate facilities employ electronic achievable, and bullish said our Russia-Ukraine Volkswagen, accelerating XXXX XXXX. our roughly sales three For a BMW are example, first we These these is and only our guidance. I manufacturing. sales are net and all like an alone marketplace quarter challenges annual net existing believe year for these conflict because our in and impact our for XXXX of $X.X on net should

our and now brands to Banks, execute, own we and and the strategic significant operate iMDS. profitably the place We XXXtv most we ShopHQ, have brands meaning grow pieces today, need Christopher & being in

journey appreciate trust your always, As I on together. this

over financial discuss Now, Monty? call XXXX. I turn our and will XXXX our to for outlook to the Monty results

Monty Wageman

were year year growth in XX% XXXX XXXtv a net QX $XXX the a increase period, Thanks, net years. sales over margin driven was part increase XXX million, the by in to We XXX net same improvement over period. the which over margin November. sales prior best also acquisition XX.X%, basis company’s XX to year compared the to closing of XX.X%, year margin the point consolidated gross XX% over of improvement improved the prior were history. Tim. $XXX.X point a annual year was basis XXXX and sales full which improved in consolidated QX same XXXX an Full the our in XXXX Full strongest million, about and gross

year. acquisitions and costs one-time an expenses driven or XXXX. which was XXXX is roughly from in one-time operating of that in of increase XXXX a the million XXXX, would increase $X XX% Our like expenses XXXX note of XXXX. we note occur part related will improvement investors year million. million acquisitions, XXXX XX% an XXXX financing of $XX.X in something not was million, $X this company million, XX% $XX.X iMedia in operating consolidated were over to our adjusted our I costs prior adjusted not expenses XXXX. for the about incurred were prior expect primarily period $XXX.X to year or were QX we best million, acquisitions. And $XX.X I again Banks, the to million, about same again increase increase Full about EBITDA the million, Full was financials that in driven EBITDA primarily $XX.X XX% XXXtv, $XX.X an by Christopher QX by since period about iMDS or and which performance & $XX.X EBITDA million, same an operating year also of in the began the of reporting consolidated adjusted

million Regarding our million at year-end. was $XX.X cash unrestricted total sheet, prior $XX.X to QX balance compared

XXXtv million, debt Our $XXX.X million was net $XXX.X financing an acquisition. of the by driven debt year-over-year, increase year-end the primarily of at

capital investments during and facilities. primarily $X expenditures, upgrades infrastructure approximately quarter, Regarding spent capital and our the reflecting website to projects, on million we

year growth approximately EBITDA Regarding is a the prior approximately million, year period. of XX% sales reporting our over first $X XXXX, is which outlook million anticipate reporting approximately We same same over prior the of anticipate XX% adjusted for $XXX approximately which quarter increase we net the of period.

expectations includes and to continue have negative will the on to logistics to due the continue that conflict COVID-XX. we impact Our that economy experience German Russia-Ukraine our high will costs guidance a unusually

$XX adjusted we reporting million, our previously $XXX and the half earnings positive provided guidance. anticipate reporting year of per approximately reiterate revenue to approximately anticipate the of million, in $XX million million we back to For quarterly We share EBITDA beginning full $XXX of XXXX XXXX, XXXX.

Operator? perspective, you income. future we I your million turn tax will As NOLs back federal reminder, Q&A. Thank over the morning. offset are a from call the available operator to to to $XXX in that approximately for time taxable us have this a for

Operator

Lake Instructions] [Operator from is you. coming Capital. from Thank Our today Street question Argento first Mark

Your now line is live.

Mark Argento

Tim. Hi, Monty. Hi,

a ones Just few quick here.

pretty in are product to big of sight jewelry substantially, quarter. the inventory from in benefit you you guys were maybe get down positioned trends been there? Just And a kind anticipate? wanted little be Fashion of do accessories feel then for able to watches what’s how an a up What terms working to sales, a of perspective kind bit. and

Tim Peterman

you the Mark, Hey, for thank question. Yes.

of lot So been zero by in success. – the it the relaunch it’s Christopher of quite in you – the as ShopHQ, or are TV now a most was Christopher that plus. think of on it is, the performance Banks, Banks. velocity. about is & an in entertainment popular Christopher talked believe we if omni-channel shows a of about that the because that’s & think as & shows It’s mid-March And Bank segment, you the brand, $XX the we’ve driving really million what terms from launch which that’s about digital in were it’s started We fashion, the and past, driven not,

only And – terms interactive on brand I a but are categories We’ve launched our on in out as our ShopHQ, to chance, the of performing. retail that do watches, reopened Mark, stores So our jewelry had to know website fashion driving they top performance. Bank. if in out it’s a drive catalog. those we’ve a But continue where Christopher has brands try really, five best business. & for been the not and style you’ve those don’t style

And You’ve with core another got strong being along perform then isomer watches. you’ve in been Stefano debuts with in and been some great that and to particularly got us, our are in that beauty important launch. to beauty Invicta has a areas continue sold. brands It’s performance very [indiscernible] well strong Gold, very

merchandising going of you’re we the one on to on on impact going prior be is an about so XXXtv the things calls XXXtv feel a beyond same. of of why brands So movement steady because I is begin talked see also it’s to our add as to ShopHQ pretty – to base we good the about, as been that. XXXtv And in strongest the is mix, everything – some in the same. make customer The listed the great I’ve mix it’s

be at into add and add going we value they much platform that into quicker to helping brands our pace. are growth their as top ours, So a mature value revenue

So there and your let question, that me see Mark. answers if stop

Mark Argento

on kind and this as but on of call that, helpful. if of year and think That’s see reopening the kind And it, to Omicron I hopefully past people you change into well you up And of offices guess mix forward? the you’re a dovetailing the, trade, little about bit get COVID we put more, start up. and make kind guys does you’ve the inventory is are to of just wanted there. you a as sure that the things kind positioned I obviously, going bunch sales back scaled

Tim Peterman

when a we chunk And the But mean a – XX with think bunch, how made growing. investments, the be more that’s Christopher you you the Banks. over to it about And that big couldn’t year. pleased of investment question Yes, & as great where in is say we XXX, again. and moving from you was a those from bunch

of receive end One We to logistical late types inventory was I on did chunk the and think, the also of year. season, areas that some Christopher in logistics & different brands a the the Banks. going of we’re through of in delays sit holiday past inventory in growth different receive,

like as Christopher the is well. million in really I’m as when growth We every that – sitting we Banks is bites $XX that in every part inventory a of bit increase that we logistics. earlier in so of growth make don’t look for to some and ShopHQ important again, They that experiencing did Obviously, in piece on terms in with Christopher and in again, offense virtually are is another are we inventory feel XXXtv. growth sure a of delays strategy. experienced because bringing industry to get in very they & more very of didn’t But growth. of sure basis, XXXtv, did ShopHQ. the Banks you we on piece early doing our it many a on some face snagged and terms and But the on than that’s So took But little is a us inventory are folding with & make that we to like everybody sure the related normal inventory year-over-year of year. we

Mark Argento

That’s ‘XX helpful. and year. Congrats a strong good this on luck

Tim Peterman

Thank you, Mark.

Operator

Thank you.

Next Eric question is from from Riley. B. coming Wold

Your is now line live.

Eric Wold

about having comfort the questions. you of the you of become where that see see XXXX of take the should acquisitions those from XXXX long contribution Appreciate if towards some the we benefit guys. morning, is Monty, in some the consumer from do to Good greatest giving and talked you’re off, to annualization highlighted? is first last for disrupting segments kind just aside impactful in how your gamification organic U.S. maybe move you. Thank guess, the what you’ve of year, growth results? Tim, it QX the guidance? effort that curious XXXtv acquisitions, the I And And will

Tim Peterman

growth service, base continues making. in Eric, I that has mentioned triangle start turns And – and is me let is think been that – can and parse see flagship story The of to I’d of that engine. the it let’s couple that me with start Hey, the that as our with yes, – like the growth years ShopHQ. to into the whole a triangle, the the of let’s X pieces. that if That organic organic be a was

organic expect growth we So in QX. in that

we we are continue growth. Banks is of a moving contributors. direction as iMDS, expecting But well. terms biggest well. those something Those being organic lot. XXX terms about talked the from strong we’ve growth, drivers. organic our platform, is in them Christopher the to right obviously of percentage expect in are in also see That’s growth the that been We which as advertising &

their across On hotels their moving and launch the expertise of pond it, that for side, travel airlines. the shopping digital primarily proprietary that so and gamification the around from what and really described being disrupting strategy reverse as back U.S.-based summertime we’ve XXX a is

So that’s rolling right summer time, been in and it that to works do in out some sure make the for time. the want the way, we’re we we but

Eric Wold

of you remaining segmentation kind give we’ve for it. Got and new year? then you about And quarters business sense us seasonality implied the out the now think guidance, of the that of the laid of the a combined you’ve got QX as can

Tim Peterman

you’re seasonality think see of don’t a I to core going businesses. terms difference in in the

still being well. doesn’t are fourth We seasonality advertising of a to quarter. bigger And business, fourth in quarter driven a the does have continue as segment, which the by that being iMDS, entertainment have stronger the to it, lot obviously

– the So way. same brands and the consumer

So not consistent, a all think you catalog there This like they large media. but I jump a in is are sometimes see world. is very

that than see – will lift we bit maybe to QX similar this of lift a stronger very we So in lift a did prior years. in the little year

the a segment. Brands have entertainment than grows, segment that the particularly stronger Consumer business in or iMDS much does lift as QX the does So

So gets bigger, as in that you’ll see grow. lift QX that

Eric Wold

Got as final agreements into that think markets one has got you then beyond evolved the flow of and cash tuck-in year save to large that? Obviously, it. that opportunity HD your optimize the business those that, placement there the beyond agreements you’ve how before just kind about and I to for as is past me, the that done last years. channel in And guess question you’ve

Tim Peterman

yes. Great talk the we time, about question, Eric. It’s all something

you in position then about channel changes you half markets we variety eight So the the a great XX in launch the bit placement of of the continued the year. with a carriage, RNN, from these because our positive talked just comes of to the HD about that a top been quite when eight and our the EPS and the these programming the – on launched which think marketing. In with top we we changes never in we of and of benefit put we’ve model are in in markets. not year, partner, lifetime last have just benefit it were markets back of XX top When about we’ve HD RNN, a we as the late working from this we today. and HD business always reminder, was because summer, had think that about in talked markets in really in our a And

that as launch HD, that, So, year-over-year, those that are history in the SD. we the they have lift in fix now HD to they and seeing the we markets should we growth mature, we growing top-out our us those XX% XX% that XX%, is, pieces and are to which shows compared expected,

into in. cost to Now, the better getting place the HD there certainly carriages carriage is of a

For shorter example, with terms. RNN, it payment was really

our invest So, plus terms we to $XX that carriage. in as HD in secure shorter at you million to look payment balance order sheet, had

inventory. that just in when We bets carriage. and in about the physical plus think making wasn’t was payment was So, Again, computer for our you bets million that. strong of XX-plus our terms million. we invested We really our in faster It talked and top line stacks we another That placed and really invested assets. technology $XX $XX RNN about about We invested in to the strong continue XXXX, performance. type growth. EBITDA that it growth of

entertainment was quarter. we anybody haven’t did about our marketing and around the last had has And the sales we force we done bit force one – this it sales sales. and We year force, on with the improvements in in But is the innovations if this already we talked – task. the sales But that the no service force a implementation. biggest developed call, easy sales of that’s launched certain side

have a to stronger of customer service. of perspective in customer their a and So, all much improve of them our information service from front services set guest

get to X would the avoid from And top next years, an invested so success an we, we in guess surprises. was I did. also that investment us then for a So, of setting up loan perspective, one in to $X investment we ‘XX, vendors about exclusivity for that our finally, million

in designed continue see to of that and the investments the profitability are you growth All XXXX. these

– because that’s that a of want So, XXXX well. that to the we as on was make sure table part important I that get very

Eric Wold

Helpful. Tim. Thanks

Tim Peterman

Thanks Yes. Eric.

Operator

Thank you.

Your today coming from from Alex question next Craig-Hallum. is Fuhrman

line now live. is Your

Alex Fuhrman

Great. upcoming already third-party Google iMDS. for the Thanks partners, question. my pretty could you when taking a cookies that? impact that we removal Is in very might much like that’s factoring your conversations to It catalyst something by with for of see be start sounds think big advertising an from do

Tim Peterman

recently, we of if Hi a most Alex, don’t while great great I He Matt the announcement, doing and iMDS. question. promoted you things recently there was guys for know has saw that Leardini President organization to the leading there, Google already been renewal. with

tracking is a that benefit, the advertisers and tracking. So, you sits it. the just left Google of next you think from today or to away times, way coming. it third-party your at today advertising And advertising with system to about and third-party programmatic go it tracking that it delayed is how cookie has about everybody’s about that when looking have means spread about can months but They it of question XX is talking with XX ecosystem the we that going conversion and Google any OTT months. been digital digital couple removing you into and want this for talking just as in the Google. sometime

need And high. you the you forget is tracking, is, do to have data. to the to their about that the only advertisers what can in sure that real they first-party to future way have efforts to keep their find do make clients need have way conversion another and unique demand So, to of

that buy say, when people can into So, conversion know with on I for these you red precedent, are significant a is that prepped people That fundamental Walmart this they companies is being that that it’s can in make ad have it’s the someone someone just do a pretty you And that basis that the with explored what, Roundel, very many I toaster. network, I toaster, but are ready data their high a change. with “Well, a advertiser Target, it look think more looking red by not and have a more no-name is that because to provide with are looking data sure have for and see today, larger to you of this many control.” and I lake looking you who – for

it, growth. Google destroys change, of from is destroy new ecosystem some comes every Internet the and think I there I couple with and say because years

viable we opportunity when are about shopper for had we this XX-plus we not contain data fuels with they core advertising for calls that million Banks or So, as product, products, but first-party improving marketplace, come will call are think putting this Christopher and packages, of stage, very looking already iMDS that we into and we entertainment they next when summer, well advertisers data. again what viable we have only the the group positioned feel we minimal in the our that are data. are that this our because minimal their what think about this & extra industry first-party And private marketplace packages together

excited the in something and about, piece time So, team but public will with are into advertising this is a fold in second quarter. view very having exciting we and is his it Matt and third our

Alex Fuhrman

Thanks really Tim. That’s Great. helpful.

Tim Peterman

Alex. Thanks Absolutely.

Operator

you. Thank

question next Thomas coming Our is Davidson. from from Forte D.A.

now line Your is live.

Thomas Forte

Great. Two one questions. a I will go at time.

question, should year? margin fiscal about we most and for the gross this first drivers Tim think Monty, important three So, how

Tim Peterman

Well, the I going they of are think lines where is gross margin, today, right. to follow

of about instead see segments. brands We let me I in it if describe are thinking can –

show about biggest, things It’s margin. customer talked being it’s that fit Certainly, driver growth all been terms designs with we quality time years be at on to so excited a gross areas of the are to a them and to Christopher are also a lot experience. sorts margin. their we continue driver. fabrics basis, I of It continues a continue ShopHQ. proprietary in big The is that to margin the & is from very different took the that that and their about, margin to will, is Banks, always business, what contributor for year-over-year strong ShopHQ’s we a their and will do and are it very another very are watching pace. their have be about So, to margin, XXXtv. because big to of already of reason fixing and spent doing – very bring X We gross as us be, similar to margin, ShopHQ going to with it excited net strong gross

year-over-year in So, will we add you & of out. see Christopher XXX, certainly, our move Those from that and will first-party growth quarters data. kind the to you be to iMDS, will Banks. And as there, see growth again, accelerated secondary ShopHQ as margin

Thomas Forte

second question affects for inflation demographic? including the impact your is, potential business, we should of customer then And of think behavior on it how about Great. the how

Tim Peterman

question their businesses a obviously again, – have inflation? in – XXx it’s on that steady consumer on and of $X. the constantly emphasize I and terms of don’t think that it financial The confidence and from boomer is enough baby include going the or anymore very hamburger is to are evolving. I The buying involving, XX doesn’t that focused guess growing of demographic, definition I perspective, all – customer, today. impact gas an Great our our impact power. and inflation to what like core McDonald’s is can’t older,

too out tell to there think although it’s on, fun But continuing in about of what’s providing minor it impact the a inflation. today, and confidence Europe see, an family themselves what are see it’s would today, to feel certainly – do impact, terms about to buying members in having we really a because confidence what We right. we is in we consumer drag information feel and of do entertaining of early is isn’t level today I going a like it in we to having on it so terms a is what and do It’s higher, about for I worrisome. products they see treat much an say that business don’t going do like just think services we in logistics folks. half or like of It because costs reality. that their they do just see to stay But impact. have I certainly never made I there. is lot It is

we not of or not are are any cancer. not curing type We –

So, elective. it isn’t

want we is at current forecast component we And a a and not quarter. we forecast see update consumer how confidence make we every our to – as meaningful So, sure growth. again, that drag of it

Thomas Forte

Great.

answer, So, final, think know the I third I make to and want but I sure.

does So, XXXtv change travel? efforts your timing disrupting Ukraine-Russian all for the U.S. conflict at of the

Tim Peterman

Tom, it all. doesn’t. at It no, doesn’t

we XXXX integrating it’s that what into execution, execution the And about launch different the think is the – that of our proprietary an the here our all in two API on again, that’s and I travel U.S., platform are execution, our own. things.

Thomas Forte

you. Thank

Tim Peterman

Tom. Thanks

Operator

Thank you.

over We management have the I reached end any for would further turn session. like back question-and-answer the to comments. floor to our closing

Tim Peterman

today, forward Thank you. for thank everybody, say their with to I you, just time up and want we to soon. look you catching

Operator

That you. today’s webcast. Thank does conclude teleconference and

at participation may wonderful your this thank for a your day. time, line today. and have disconnect You We you

Legacy IMBDS (IMBIQ) 22 Mar 222021 Q4 Earnings call transcript