AREN - Earnings call transcript Q4 2021 | The Arena Group Holdings, Inc.

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Operator

Good day, ladies and gentlemen, and welcome to The Arena Group Holdings Fourth Quarter Full Year 2021 Earnings Call and Webcast. At this time, all participants have been placed on a listen-only mode and we will open the floor for your questions and comments after the presentation. It is now my pleasure to turn the floor over to your host, Rob Fink of FNK IR. Sir, the floor is yours.

Rob Fink

Thank you, operator. are Smith, Chairman Chief today Officer; Chief call Doug and Financial the Ross and Levinsohn, Executive Hosting Officer. Q&A Andrew Officer, Kraft, the is Operating session. also joining the to participate company’s Chief in

this note begin, we of made be call statements statements. I’d could include to other of forward-looking. presentation Before are that than statements conference and that statements like the some comments forward-looking All may during historical deemed fact

the business statements strategy, are or events revenues, to future company. uncertainties, that be and risks, ability concerning based future the on the requirements, the and on to beliefs this based limitation company’s affected predict. unknown company’s adequacy factors control of of actual and capital expansion relate statements currently growth, The the Such Forward-looking by and company’s the information any that and conference outcome presented statements plans, trends, future forward-looking and investors the other by include assumptions the market assumptions during and performance are will introduction, call funding. to beyond without product known cautions available statements company and are or made

believes are assumptions not some reasonable, of its the are and that to will future these performance, be prove Although, guarantees inevitably incorrect. company assumptions

are should the to caution quarter a is As year. investors may are trends. forward-looking only a result, that in With are with Ross, the over the anticipate discussed filings results said, to expectations turn known that yours. and be material. in great relying to time call on trends all expected or on be at to Ross. differ which are use SEC. results call risks from statements, Accordingly, the congratulations future can based The company’s made I’d like Certain the results actual company’s they future differences and and on those

Ross Levinsohn

welcome, and everybody. Rob, you, Thank

a tremendous after On listed capital than We’re million as earnings raised effort a we were a excited National American on X, first our present team, February NYSC by able more become a Exchange investors. to company. our company and from to set of $XX listed

after which began XXXX. of here in are the of a We fall transformation, journey

In XXXX, profit vibrant highlight a content improved gross in to a the prolific gross million pivoted and million million full period than technology In revenue $XX.X in grew a moment, increase. Over we the company our previous and through XXX scalable to XXXX and first. others, compared more becoming gross $XX.X in and million versus in results grew infrastructure to owned XX partner year. to XXXX. a we the $XX.X months, operating profit, fourth XX% brands, of more a $XX XX% $XX.X In Total XX% $XXX or million, XX% total you our operated to digital a profit or a QX, our compared year, stack publisher strategy, platform, year, past In which million. subscription over XX me also I’ll revenue to XX% a increased nearly monetization distributor. million by previous to than some creator the journey. $XXX quarter same percentage tripled But take percentage key the let for revenue robust

investments in quarter one-time $XX.X previous the in loss reflected and QX current compensation such the of are in net filings representing net recorded acceleration we in the technology, our of XX% again $XX.X non-cash The in QX, million. $X.X made positive year. of entire substantial final million one-time and people, to We in during NYSC. those XX% XXXX. and of In XX% EBITDA full to increased the our the order XXXX, and costs in While our XXXX, and year are loss. our gross And our charges as expenses from of company audit profit to associated legal generated items, our grew non-cash we XXXX, and of bring uplist adjusted with million stock-based of seeing

figures of Group this year February users XX, rapidly. States. audience in grown the According one from XXth up to of have the company ComScore, overall was the terms is Our That in Arena just in ago. United largest year, number

XX users vertical unique million year. sports Our has added one monthly in over

months. brand, While its monthly in last the unique nearly has quadrupled our TheStreet, finance users just three

audiences, iconic growth. TheStreet, have spectacular, you native we unprecedented operational expand when a Sports playbook to I The tell audience core Spun, our like with through September startup playbook margins early our We a it’s internet using these Illustrated, expansion We took strategic we in strategy growth driving our which or we and and cost dramatic what is business resources, growth revenue a transformed of been apply significant our to infrastructure, an management, brands. systematically. transform profits. to we Maven was pivoting and revenue, XXXX, data brand of and that our expanding technology take financial all The and generate as modern the phenomenal success in today me verticals platforms, Group. strategy Arena and to company rapidly focused In in the year, pioneer of digitally transformation technology diversified an We and proprietary we for whether CEO, led on companies. and partners, working a last growth, our bought brand the Since playbook Let and like of story have invested team, increases, excellence. designed are technological results. become results September focused June revenue brand Today, user and like assets, synergies, transform margin on applied of and media over to built energy XXXX, and that growth media together

This has in our XXXX, last And the us results all growth. QX the for of blueprint to laid played executed the in first and the months. with in groundwork change focus three quarters. out position Our XXXX reflect and over laser company of of us we designed much our fall XX allowed

thanks has execution momentum, are accelerated, last While in the and to growth we year. QX investments, seeing throughout

results Our validity, our revenue. areas point we [ph] we the the tipping our needed grow. visit model range grow plan. we of as reached of In and the long traffic demonstrate invested in these for XXXX, efficiency replicability fall and to XXXX order in We rapidly

to can is technology investments and here additions. any is or we people Our in substantially scalable forward, us and have These margin need without to from grow. will we hardware, architecture From software forward, infrastructure for headcount positioned as headcount. our expansion our here major grow spend development, not

that year. early built wild line. and XXXX But ingest in revenue In a our to and that, score we The a XXXX, said We’ve we’ve but In back are successful. would you saw now build north analogy, we accelerating is points. needed partners, to at new line audience going QB protecting a of to positioned be rapidly. XXXX offensive able use grow or only done to running us now last are margins this run revenue the XX% brands, to great targeting offensive and we not in football stars, Simply infrastructure and of growth great foreshadow part that they’re forward. deliver our fact, in gross increases before

for we’ve say including knew that achieved proven digital alike. of And increasing behind technology, platforms. technology that model. looming shifted and our moving important this the reached You important an we to sustainable also XXXX anticipate technology And our results to We focus optimize we the us. sunsetting approach, and Arena costs business to and vertical partnership The be are platform. the company out cookie side, We for a margin and even right. when this show expand XX share to profitability and leverage team change. in going year. a in shifts been our expansion that our stack, drive inflection our large transport us if a The And economics will We to our strategic several build our lead to platform. at partner how demise we is will I’m a we result point, more XXXX. publishers industry to shareholders. today you we months in saw of and And go-to-market technical have paper the past our guarantees. and and retooled have our this We’ve efficient very scalable, company needed XXXX. towards and these to truly on excited we had landscape, September legacy rapidly our with direct The that Group. the management proud the time I’m get eliminating print and we’re investments small now media challenging historic is was of required compete side, for positioning by challenging this make our with increasingly on I the made asked our a and strategic you

As we can properties, grow increases platform, similar onto expenses. in to to significantly our without traffic we scale without existing layer or a revenue – crying by similar new increasing tentpole a properties

and as we grow. reached expanding XXXX point, have continue inflection We in the see should you to margins

costs, this revenue which is product, Sports while model Whether through and surround inventory. team or and who partners their talents. a and our In starts journalism it content TheStreet depth share two. unique dynamic publishers in Parade, with expanding in industry those the that operated and week our from award-winning keeping driving add the breadth in vertical we and a and with incurring brand and enhance expect about complete with both and expertise some sports Our content of distinctive content low, top a entrepreneurial specific way our voice a or model, partnership we be next increasing most the to brands vertical some transaction our traffic without a and our Illustrated, audience. like advertising of with timely, financial strategic relevant powerful, We partners to the owned costs showcasing specific

tools, we to the the the It a in to our beneficial audience well, drive domain anchor, since innovative, works. the Our traffic model. and efficient the content partners And media aspects playbook flywheel. under at iconic they SEO to social our model. better central and and is tactics our have at the the content it industry’s and and to flywheel both But do properties, development O&O exceptionally properties. important literally share traffic the robust and publishers is other of optimization, center editorial believe this revenue, most partners forefront, We O&O drive brings to creating mutually on we

benefits laid I investments have EBITDA continue strong Sports example, journalism. important year adjusted are brand sports the And QX, with incredible in costs, we necessitated fixed positive the finalists a for during and For this show of year and continues an we’ve at tremendous provides to members for groundwork adding the The journalism, staff this sports investments at year. the the without this guild of Awards in to and the this adjusted this work talented XXXX. to creation be don’t would part agreement cost is photo XXXX. Union to content of solid Associated vertical across EBITDA editorial SI Memorandum reaching Press to personally, anticipate several team team all higher very pinnacle stability fixed Illustrated. – awards represent with and with our while our finalized expect this iconic is million represents And possible the and Editor award-winning these growth that positive We our significantly of team. to not membership. we which of these our later Illustrated. us. began base to With Sports union, to Agreement pleased $X.X Sports I’m SI editorial agreement honored at we be the say see all

I point. has and reached convert enable margin As And incremental to investments said, made revenue we our the those us will into tipping business profits.

by Sports After this online more XX in of joined XXXX, X.X storied to seeing in the of June and leading in the a million in February of world Illustrated, Illustrated trending has their digital we our with according in than February The our sports million when over consumers. growth. Away, playbook saw brings increase ComScore. Hockey to according users most Fan the reached consumers platform, The users. what’s and Spun, since sports print Media XX XX% another to The million seen XX months, the MRI and a brand anchored In including Nation, one and million year, according to eight media, that doubled vertical success past XX growth News according of unique record-setting arguably to avid XX brands, in sports and acquired AthlonSports year, have June record In million Spun sports Sports again we Simmons. with social collective applied breaking number The Sports to loyal ComScore, online highlighted to from it Our brands from this ComScore over in Illustrated the incremental Group, monthly Spun, users, Spun, the December’s ranked February SI, four unique a Fade was million site sports

in seen XXXX, ComScore. monthly has of sports partners Media more deliver its added unique of as our Illustrated publishers on XX Illustrated continues We Sports since one now our according World fivefold platform to O&O to among XXXX has share of CrowdTangle. Group in growth Sports the to number the increase stories model than Fadeaway new data from our Additionally, to users sites May for voice one as which joining well properties. This linked Facebook, to according

to content in efforts, Sports with the gambling our owner In The markets by sports the of product and leader in Holdings, start we also offerings brand, NFL launched September, in with launched We season, end XXX diversify to of sports a ABG, continue of with additional the Colorado our in SI to along conjunction plans the Illustrated. in one expand XXXX. the several book state with betting. partnership

iHeartMedia, we Cramer, in of retaining to have changes year, growth business our TheStreet’s TheStreet’s develop as seen on Founder while has many podcasting with Shifting the content Additionally, which seen vertical, significant a TheStreet, on new we XXXX. time, that departed to Voice, a over focusing in leadership revamped our began and October finance our brought new and August, Since and team Jim partnering past strategy Distinctive result. voice subscribers. gears has

TheStreet. million the While site users, funnel And we the ComScore. XX% subscriptions. more retain the rebuilt we according to Cramer’s did importantly, departure Arena some Jim the lose to had unique time were applying Group we X subscribers, October, of At have of able by to playbook in monthly

than all our National of to On Just in the our across our our one to short SEC more resulting TheStreet heading and and optimistic over in last we viewers, four And XXXX, are that advertising February has reach continue as rebound tripled NYSC and rang month into the bell XX of months us. its with later tremendous Exchange. users which top continue goals new achieved dramatically. and of our wider platform, growth shareholders. our the stock event was this X of was impressions had XXXX, primary we’ve audience. to grown The Jim we pageviews a will On when viewers February, get diverse for business is we exchange. American a TheStreet’s his Stock uplisted the and with filings This million unique had voice stabilize current and at opening our common subscriptions uplist company, develop momentous employees we to a to the more

planned to the especially a and for to said completed time the of Doug. what take of about I’d to let Smith, have be it started. year, numbers. Arena our our getting But soon Chief acquisition we’re talk to AMG at this first through you Parade. Financial Doug like you Over Officer, at our beginning been here I has truly I call, Group more historic want the just As we

Doug Smith

Thank you, Ross.

by million an comprised by last of XX% million increase million $X.X excuse down fourth million, compared of of XX% Let down the driven fourth $XX.X In versus XX% began the Sports XX% digital to revenue, quarter traffic fourth XXXX year. existed last XXXX. the increase XXXX compared fourth XX% XX% in last that of primarily grew by primarily is property. million for subscribers $X.X versus that year, accounting which million Media of revenue, the of total print XX% on me quarter quarter $XX fourth was fourth the of revenue the profit turn quarter in XX% revenue the million, reflecting of represented XX% during quarter – the licensing quarter to subscribers advertising the and for Other our XXXX, drive of to increase higher the all revenue Digital XXXX, when to to million driven e-commerce quarter $XX.X Breaking operating approximately to prior year. quarter across year. for Illustrated fourth we quarter the fourth for Digital increased quarter, last the total $XX.X of and our of up was a in revenue, fourth the diminishing of the adjustments $XX.X increased revenue revenue effects results. as to digital of margin the million the and compared X.X fourth subscription Gross me, the subscription of Print $XX.X business. acquisition of revenue, was year. and in quarter XX%

remaining revenues. grew XX, doubling to XX% the compensation. months quarter December $X.X margin For high and million fourth stock-based the This $XX.X drove profit, million the $XX.X to increase I a profit million mentioned reflecting three expenses as of growing of quarter million period, $X.X and were increase of to was increase as a million Illustrated ended quarter subscriptions, circulation XXXX. in campaign $X.X audience loss in $X.X to costs from in increase stock-based with more million revenue fourth This the Sports in compared our of referred well digital an the development, previously, due increase which results the compensation to cost million than million, an fourth only increase $XX.X great of the XXXX the increase in increasing over is drives the year investment in technology across XXXX, The $X even prior reflected of in of million and in operating over an we’re attributable and of personnel, improving dispositions. fourth is The data Total to X% asset revenue XXXX. quarter expenses from increase traffic gross $XX.X gross our in in our improvement analytics, in leased platform. that seeing recognized of in Ross help XXXX, in

$XX.X of quarter non-cash of of million net compared year to fourth year. of $XX for XXXX million was to quarter compared of of of in $XX.X in million, also XXXX for prior is Fourth in million prior quarter-over-quarter $X.X $X.X quarter fiscal the prior of the quarter the reflected as the compared fourth representing we loss the As million already period. discussed, and included the $X.X stock-based of as result, as EBITDA charges million business quarter increase our improvement. Adjusted the loss fourth in a of a exclusive a non-cash charges year, $X.X XXXX million the improved to operations, $XX.X This million compensation. strength fourth the

was million increase to by The fiscal revenue. $XXX revenue total an due sports – digital total compared and digital me, The increase revenue was vertical, revenue as million the to increase million vehicle Spun. the XX% of advertising primarily of in XX%. user to For digital addition advertising growth a XXXX, an in in and increase year, audience $XXX.X XXXX driven our for year, The increase in full primarily XX% to $XXX in related excuse was

the related in as publisher for and of primarily XX% in XXXX. strategic increased was implemented the a of of In in year million The guarantees subscribers remained relatively of fiscal XX% is of publisher advertising revenue in to year-over-year of subscription adjustments. XXXX in million successful also that of fiscal profit compared decrease $XX.X loss print revenue, XXXX net XX% in to XX% XX% from we of million drive fourth end XXXX. XXXX year result at revenue improvement for very XXXX. XX% shares It’s fiscal again, revenue XXXX gross partner loss in most to charges, Net digital $XX.X representing a revenue. fiscal eliminate of year, that in to driven acquisition advertising of addition, profit the Ross – the Company non-cash XX% $XX.X reflective shifts $XX.X diminishing a digital This recorded accounting quarter current XXXX. prior increase effect and Gross total in XX% the flat contribution the from high by the the increased mentioned to percentage $XX.X net reflecting to print the fiscal million at and loss. compared partner a

perspective the fiscal and During XXXX. XXXX, cash, at million of million non-cash the compared the of in we to $X.X looking started million of $X.X charges. $XX From company liquidity, at end essentially recorded sheet the where year a end at balance

general $XX.X improvement a the an the working our in primarily of operations an the year, the The we to in from For use operations collections, was of I’ll common company cash $XX.X me, of back revenue, improvement result capital the additional million offering Ross? million, cash year, subsequent stock. over – comments. raised excuse to in used its an million proceeds the from of a for from which closing of improvement that, to from net efficiency. turn the $XX.X of million last use mentioned, from end year. With $XX.X net led Ross increase the as improvement $XX.X call Also, of million

Ross Levinsohn

we publishers repeatedly properties, with younger Spun across our brands World. and native digital have across model iconic a Doug. digital of Thanks, smaller Fadeaway as Sports such year, this Fan Illustrated, entrepreneurial a household TheStreet, If brands like the like effectiveness Nation proven array anything The and legacy of media Thanks. wide startup

other and have outdoor AMG/Parade close January a including And and of content lifestyle, We announced AMG celebrity, plan sports Sports, and progress. lifestyle company Media, acquire to verticals, acquisition food, are Spry what’s Parade model profitably. Group, and and efforts a the Relish, XXXX. and our wellness, this the with related we continued diligence other crossed multimedia to Rubicon premium in other a Media with Parade primary a XXXX, health properties. the outdoor platform to Living, exchange, Due on now side. listed can on we I We extremely scale proven optimistic am about In business

acquisition ways with Illustrated, iconic connecting this an We complete next the lifestyle they love. the of Sports expect few history is Similarly, weeks. celebrities to in trends and XX-year to to Parade an in some consumers household that brand,

seamlessly our ensure with transition. smooth Arena leaning lifestyle launch are playbook teams board vertical be and including Parade working as we and entertainment coverage heavily to we on Parade. third year, with Our its together a our to sports have This excited deploying welcome the into so sports been and platform to And centerpiece expand outdoors. will AMG across our properties,

the with excited results we – early During quarter, seeing. side, first pet began we’re the and the our a with implementing playbook PetHelpful, about very we’re

and incremental traffic, the have. revenue revenue, leads increase users answer you can drive would results questions already We next with will expansion. And any talking know look We same made AMG be our to we bringing with the proven platform to forward and and grow margin you those energy to is Again, to to I about and investments quarter. transformative Parade that, in scalable. love

over So you, operator?

Operator

now Certainly. gentlemen, coming Ladies open Instructions] Your Lake Argento from from questions. for [Operator floor is Street. is and question Mark the first

line is live. Your

Mark Argento

Thanks Doug. questions. Ross. my Hey, taking Hey, for

couple couple and of more a maybe level high Just a of then housekeeping.

getting what have analyze your what EBITDA? be than is like as well us just KPIs and you properties or track terms looks traffic, them. When the that just a of replatform other of from back about we And in as best and a guys of of of a and and obviously and the different best as off integrated You bunch ways keying seat that dashboard your a sit what think looking help at obviously and be kind we few left here revenues CPMs? company also should guys we maybe should

Ross Levinsohn

for your Mark, Thanks, and thanks Sure. support.

running that picture We have set the look, CPMs, together, e-commerce of the pages track robust And of RPMs, the average almost that all you to we we we’re them our business audience and minute. draw soon looking at also how very, when we put KPIs are type you always, be As depending impressions, on very those Certainly, per which can is and conversion, business we a highest track at level, really track visit. we’ll subscriptions, a we we of the sites. doing. by at adding

So share. make go what and consistently greater audience we generally more CPMs up, go if while fairly a see money. audience Obviously, lot is and equals impressions up, seen greater have we

CPMs with the certainly the year. Sometimes seasonal, year tend lower as trends, QX you and a throughout follow most to QX. cases, four In being of it’s fairly than start we the on And or ebb quarters. out grow many robust the the basis flow usually

top CPMs our data really talent and today do got a when of help But us tracking brought we some RPMs know we did unit, goes the that. about in fair investments we’ve a the and about winner – And made. audience in So building we go up been great talked up, put and narrative we to all we have intelligence those. on hands and a amount resource thus we’ve successful into far in out we business our lot

like. chime let we KPIs. key Doug you’d those So all in I’ll can track to if

Doug Smith

our was I development. also mean, Yeah, think heavily I invested we is, in saying audience what Ross

that growth and audience and here. of highest level that’s the really about talked key we at been that XXXX, the of has the a driver during So funnel. And

success And so, we’ve seen great there.

we seeing also improve initially We’re down. in go to the improvements our on then focus is RPMs, and and as top as level, But the CPMs continuing well.

the So the happy continue phone. all improving work the And down on to results a we’re to we seen. them with seeing very on plan daily and basis, way we’re we’ve

Ross Levinsohn

audience in top narrative. the the social We in it. the on just of data investment side made, real in and teams. development to add would I business, really I of highlighted Yeah, a addition our we it made

site one didn’t even Facebook. the really for now number on A of we year We’re share rank. ago, voice

much significant to zero to for of this a and to great And us. different go that greater is pretty So share achievement a for really team. traffic, leads one number obviously, voice from demographics

Mark Argento

What had then on color The the that? the of bit you SI there. seems you amount turbocharge the that success a for you The good you that Spun, you kind it property help guys how got appreciate of could a did? you was platforming. of little as I – you well, was kind onion us brought guys had already, like Or It it that Spun, and of peel And that maybe have on audience decent specifically a those I types results? know onto just

Ross Levinsohn

sure. Yeah,

As would the the the look We’ve Steve obviously they’re something a what domain swarm a a and out that It really and this Spun by has brought great at the magazine to year-and-a-half Spun stories stories. and brought work really of news continues audience last Ryan of since Internet, to around audience we and Illustrated really that – there everyone playbook into from What and different. grown Group, on certainly breaking receive focused Great really model our ecosystem. said, reviews. a The the brand best sports. a The over the team trending. important. work was what and different ecosystem was Canella coming derived built is having and rave the Hunt quality there and I driving there. was Sports out argue awards The We doing we’ve our great and over matters, Spun’s nobody’s doing I journalism have, types think Editorial on said

looks different to Miami. eight Kansas its from world the So Peter’s Hill we’re it’s advancing to something Tyreek in sports, when being big at St. of or a the City lot final taking it traded whether happens of

We takes brought that and and The have and platform. our energy to efficiency it brought on multiple an really Spun story

to learned brought domain, a ability from we’ve helped monetization financial ecosystem. Parade. of benefited entire of ecosystem, they to their some low they only to it we’ve drive brought at of our they it volume, And costs. revenue apparatus and they’ve the from very results. sports it from the us, resonating It’s a resonating a it’s in terrific put has super have, really a and been some proud that we’re we sort magic now properties to and And We’ve seen bring So traffic TheStreet. great that it brought partnership. And that’s we I’m learnings from them our we us overall not at speed, the across amount of and playbook. at them great and our and other it’s significant what going of And all from generated click have learned side, into business that taken a

Mark Argento

year, luck this Appreciate guys. it. enough. Fair Good

Ross Levinsohn

Thank you, Mark.

Operator

you. Thank

Dan Day Riley question is from coming next Securities. B. from Your

live. Your is line

Dan Day

Yeah, my questions afternoon, appreciate you guys, here. taking

one an So of at TheStreet, Sports same Cramer to the the similar driving hood you’ve side about to sort business. done following question the ad traffic Maybe awesome obviously, job departure, of could supported if the getting the we under do that Illustrated.

you Is it get helpful. just different mean, in that I under just So provide hired would you’ve there? people priorities? Is shift hood that traffic? be can the driving a it editorial in anything What’s what’s there increase to

Ross Levinsohn

the Wall unto Street, only the to the There’s that just Cramer enterprise transformation period for have public, you, our only he’s And short editorial how world. tell I unbelievable We we himself at TheStreet going time. a Thanks we and in covering at wish an and the and were really And question. world. and him business are a creating Thanks. not new great. or applied we aperture but and lens business Yeah, the and broadened in best of financial one CNBC. public Jim we in team, such news companies brought the playbook, of in

million said months million, growing XX million that XX in or users pretty terrific. is QX. growth accelerate, just to in dramatically from seeing script, million As a we’re X we And in our few X

revenue, the terms you have of and CPMs that, you see good ad in revenue. which you talked you there and only have have impressions, question do pageviews, more KPIs? about, RPMs, look at not we more more users, you is Well, and how asked, more have Mark you So the direct as effect was from a ad

is we’re trending more And eyeballs as to So of and part the very, our people through start category, the top year at very convert in with our drive the people this well well subscribers. also into brings TheStreet. job them more finance it the as sports paying and job to of the – funnel funnel. But of

worked certainly it’s the some up of try investment Cramer and and business. and concern, us our from things was there very do things community degree It the to to actually while just some a new hard freed some effect new wonderfully. So that would significant in on difficult loss have

or XX% and So audience as we retained four we’ve Jim since our said, grown we’ve about fold. of left, five subscriptions our

products products subscription ahead. is on months And at to future find thestreet.com, in some the called expect new beta, we we’re So new a TheStreet. launched for launch we’re the Street and weeks ago, you bright in just looking further we product two can more Smarts, which

creative TheStreet the we have lens at seeing results, have really the and been opened So fantastic. which

Dan Day

issues one looking through compensation but thoughts Ross. talked the And I why investors just stock-based just the kind for looks elevated walk looks maybe of to something this accounting here. any face so that And maybe company of on Doug, kind And of you and your value about, lot your then is first-time Thanks, have a elevated a of size Doug. there’s for at the results and that that? just and Great. of at

Doug Smith

was our million compensation extremely cash – high total Sure. compensation The relative for $XX.X to which compensation stock-based year, for our is the employees.

think calculation, in drivers just but trades have price are and to we to would in come in models volatility of to by make Sheets, use the Pink we when had huge the the trade a that. key is on doing the had there we smallest create in calculating to use. And The stock. our do invitation to I listed required coverage enough Black-Scholes that we’re were some

determined, value over just stock-based the it’s then – compensation Black-Scholes of is the are the on the amortized extremely option those stock-based shares. the an time in creates once unfortunately, and beta issued, relative compensation. So, high stock the vesting of model used And period the at options

go do market back will no there’s So, we it. and changes to change change it, in can conditions nothing

Dan Day

Understood. it. Got

when helpful I they a think that’ll of lot people be for see that.

Just last one me. for

when might a You meat kind of upside selling with mostly it Sports out. guys other a any you and provide the around just have NFTs comment of anything the to to I bone then little Illustrated that just sort verticals? can noticed on as was venture one opportunities else and mentioned press more of partnership any that covers or had sports on relates mentioned And in about on you or a that. that anything off release Metaverse. release ABG, It the NFTs

Ross Levinsohn

with Yeah, brands have their they And And really but just ABG, we – rights. of were some certain we grow they they’re rights, out for to Sports certain obviously, NFT Illustrated, to for the other to the release. marketplace. figure working we – we almost continue ways it have architect, out of work hard daily closely, in not or the that architect

For us. plethora Sports brands we of have here, Illustrated. a including

We’re Internet, working you through about related new Metaverse? subscriptions. the brands to the How years our third a how bunch for of around, play of world XX ideas around we’ve could do bring of the the NFT’s history. the all many of it or the inside in is years. our of version been us fairly What to dynamic Metaverse been Parade into showcase going

and dive F the Some of that sports. things excited to to all Hope world some like up me growing show, school on covers team, we’re high Bob the parade bring back watching into an which, that great the for Parade, into American of that Host

operate good some got we’ve the in number our for a NFT partners. going the that some and we and the and of very of both So control and brands for space with Metaverse players own discussions also

anything our announce both tread the with have. we coming of I’m representative right to people, beating – we’ve think is a you to we of going categories more months. to way something So in that us And that I other those than not homework, the foreshadow you’ll tell into in doing the been brands see expect

share to earnings, but certain next we’ll a I’m So on nothing have I lot concrete that detail it. want today, by more

Dan Day

questions, appreciate Awesome, and I’ll my guys. taking you Again, over. turn it

Operator

Rendino coming question Kevin Degree next Your Capital. Instructions] [Operator is XXX from from you. Thank

live. is line Your

Kevin Rendino

both was close answered. my Thanks, is incredible. that to someone who questions performance is TheStreet guys. asset Actually, are

And to so if TheStreet? show company that’s figure applying if street-related the trying it’s and you’re how Ross, applied technology-related, Sports industry, to applicable of Or something only Illustrated platform did Spun, playbook the would is successful sort is? brands, it’s which that out to your that or other rest,

Ross Levinsohn

related TheStreet, a and Also, new history development thanks. audience in time, of great without a thank of our give Kevin, what you editorial super just would content is critical. be I this audience has question, of our it our Media the and and huge TheStreet know lot would in And Barrett, the that also share energy, investment to got Yeah, our kudos possible we team and And out really leadership Group It’s possible. invested made we at for have None and us I capital great to Rob led there, brand combination. helped exponentially really to has a of you’ve be voice. the that. see the by transformed team grow you of

up growth of but Facebook, works. As we period which least, XXX%, for this a mentioned, lastly, short And TheStreet, none in platforms and unbelievable press in the not think, on just is, social release I over of time. very very,

our entire for in people, the a support it’s we business. the of you of analogy, good. and over made the group on We the product to really does of every is on that’s technology, that be a sunsetted technology than each the operate, testament us, the year-and-a-half what not And invested proud better line on engineering side, technology I’m decisions I lot offensive and side, engineering have we in super do, the and others script, and to do. to that work drives and the in being side. really in done product a all last As to to is work XXX our the what that more And on and also infrastructure engine got said football the that our our single your offensive and day line brands,

who are employees, our we’ve also leaving jobs, and managed living all no hire through We but businesses, really us – retain for are talent. some are the stunning only really, right? not great businesses of operate resignation, to really People

kind year, start running for point, to we’ve to of we’re we’re have a the and the you’ve September you’ve right made, on really going, those So in brand, really, leadership at wait need QX. earnings where can’t got I emphasize from out, work, it’s one QX to the and folks pay started off this you to then transition whole and we to last strategy, we how And and QX, have sort now have business visibility, enough, and in And really then have pretty of testament the The each but QX our obviously, I and of go we Kevin, happy. – of for a can’t we’re off fast of because make XXXX, we’re clicking middle groundwork and execute. got the those. momentum we to the playing this run. to go that’s laid that And seeing

Kevin Rendino

right That’s great. idea the turning now. point nice be to at its It’s see

that’s So awesome.

Is just one something a big quick question. the two Are generic you’re we talking other new new the maybe question. talking Just – about and about? And But that different? are Metaverse verticals platform that crypto?

Ross Levinsohn

No. Yeah, lines. business us, well, new are are those those for

look of interestingly, We’re of We Smith anchor celebrity and watching within that night. different a with also broke really Chris also the probably and wellness, it last and Internet gardens, sort But thinking food and the lifestyle be travel. for Will will – about, will and it Parade last and lot of that will it’s our home lot were is of and And incident entertainment and health vertical also us. lifestyle kind a at night, is areas. and us touches certainly, Rock

think more the is in I our in bring going and and paths think other XXX sports they brand, and years. been Parade done, couple actually finance think an in for I work areas. we partnerships company of than print we that both newspapers they’ve in to has over the leverageable and so is to be content very, the Their that And with produce interesting digital overarching very last in

to for of we’ll to launch excited a So us here content lines podcasting, lifestyle e-commerce. are coming able already lot all Metaverse, a but of audio, audio year new case that But are the we’re be e-commerce this on different vertical, are NFT’s, categories. touch in and

Kevin Rendino

Okay. And I mean, you’re big company lastly, CEO. then a

an XX as point, know Ross’s work playbook? you’re now is your at you scalable from. of is in How ton came How the you’ve a where last we playbook months inflection your done So and scalable

Ross Levinsohn

for now some applied a compounding interesting Alta the seven going This, here pretty of the terms Yahoo think as also are startup And good we’re search worked. has sports, in I’ve in analogies, a XXXXs, as will at I the because startup It’s it’s scalable. in and late the the this big I’ve terms and upside been had a we’ve called in as XXXXs worked in as about darn you we’re also any streak sports excited with what ever tell I’ve and winning. my and times – several a I at for. I’m seeing I News love we’ve I have last XXXX. for I played And and as pretty and darn career Vista I had Corp Fox of lot early – career a engine companies again, months. seen worked sports. seven big use companies me, of most a playbook times, I There’s

it every it So are other or of that you literally doing day. Parade that more we’re bring as works. sign it that really doing have platform, minute And this we that. just And can’t and that track you acquire go the really, go model and really teams gives confidence partnerships, every onto we great me businesses to work set and and the

Kevin Rendino

line questions. analogy, the answering Loved and good focusing. for a lot with luck Thanks offensive the

Ross Levinsohn

Thanks, great. Kevin. Okay,

Operator

question Thank John is from Dialectic from you. Capital. Your next Fichthorn Instructions] [Operator coming

live. is Your line

John Fichthorn

for missed of and this it. Hey, nice year, just I guys, wondering, part my I was taking really thanks question job impressive.

some you for the organic is of can organically. looks what see this you guidance. how you wondering maybe year, rapidly, I’d to brackets ways can’t, kind for versus business I’m but about extent is you either about business you’re like seeing if I just think love expectations growth to growing inorganic us really the of to growing. some fast the didn’t give or but this, talk it covered and kind So

Ross Levinsohn

Yeah, hey, thanks, John.

guidance, in but haven’t to guidance, not QX believe. we’re to We giving May, we’re excited I earnings given get

internal expectations very, that guidelines is I the about very adding are year. for you is, specific our growth there. inorganic playbook. Parade, confident best guess know, I this for And or our we’ve can acquisition, we’re some we’re As say our first set what inorganic

to careful be on year. very, We’ve We’re going very the acquisition last side. over successful been the

PetHelpful HubPages. seen there and numbers days, very have the we’ve as stunning, XX-plus in be any early whether leading of results more that of really launched focused and at our Paul TheStreet, then there. within in But that done it In QX. now we very, Spun applying The got, are are we’ll it is HubPages that building really strong there, the sites to on to and was obviously the current our it And QX on or track very charge add We’re growth. a and business. the plan SI good that’s PetHelpful, we’ve and application properties, to Interestingly, the and hopefully the did an sites acquisition, And some playbook Edmondson we network, two watching June, doesn’t site leader to part really the costs just in HubPages present our well. in which then playbook our have or infrastructure out, the and strong we pretty

very acquire, fall going helps be started eight, XX pretty metrics were then to over in unprecedented. operations it took have when piece and on pretty minus the from at really numbers some took to scale KPIs a we we fold been a number existing number or is to or four, and and when to We at, move to marketplace, hovering sports, XX grow new we FanSided, around operations, and didn’t horizontal a to into or existing clear for it to nine the get business able vertical, our this to of it – that So even be obviously, add whether as the anything organic set much in coming size I do focused from journey ComScore over. go the our when for and took we we XXX with that Parade ComScore want we’re the we we when over list called on of the we business we’re know, it And clear And vertical SI and XXXX, top we very And for for capability the Sports are opportunistic another us an or business. we’ve think growth. we be Illustrated’s support in. you company of

and So working working, this it’s playbook is repeatedly.

confidence for gives growth. organic it So us great

John Fichthorn

which Are driver it’s or it organic in you, opportunities? able may or whether adding to to easier apparent is be, growth kind applying or you verticals the organic which the whether discern, better it rest new this growth or is of growth or for point, biggest the that’s is easiest at applications or to verticals, horizontal of whatever e-commerce

Ross Levinsohn

Yeah, there the is a lot look, day. have the would excitement I entertainment closest to I out the or gift that we thing every gives of category. about it’s because tell it’s It mean, you, celebrity sports, see that I

we’re last talk then up leading to of a happens, and numbers death have much excited that the pretty, that I on were and about event the do night pretty playbook to apply lot the You the category, now. last early going Bowls like Super night the there’s saw There like nobody’s was so watching of an And Oscars, anymore. in that But Oscars. substantial.

content, to fast, to and you to got I do efficiently, and upside? Well, across you think them stories in Where have the you got that to got it you it see way, platforms. got you what’s well, from it do amplify do do asking, right to to you it? come matter good got it’s to all the you’re do consumers, then

is not the is. invest to be you the And significantly in did of some development You have people media the say why that’s audience just buying. where we can’t, to development. audience consumer it’s And clear business go really audience XXXXs, that means

We buying are audience. our not

platforms. do there across the is organic all out of vast We working growth platforms. growth, but organic in majority the We’re from the spend way advertising, social in of that’s those a growth the majority money to

our to works have consumers really that’s is content really the operates critical It’s and of good the our want. right important. speed and good. that pages It’s good platform that So really

very teams. well, the closely we’re and and that and that engineering Google that’s to testament working a with well. our We’re to positioned product work Facebook and pages ensure And

John Fichthorn

question on changed love seasonality Two probably either, different I’m And how I’m point, the One how what with to that tell necessarily a ask over think then quick particular you can them. as but kind answer I’d area? in more growers just and you all if thoughts Great. businesses ones, this at previously. of it’s sure you another percentage, about and about going that can’t recurring us you that, is, revenue is, the think

Ross Levinsohn

in going on Yeah, seasonality, now, terms year a thing football and big of used be pretty in the a round it’s in of interesting August chunk business. sports world to is now business our pretty there’s January And much sports where business. to

have – have sports be year, or trades call, the in know, will – it’s big interesting. a everybody to and April it’s a it’s been, and as this We is World round draft a so think to Certainly we whether volatility, got tell big from very the So later NFL pretty less way. is, going I year TheStreet. Cup this been on month big, very, seasonal you than benefits an to markets really in which impact is

So people news a are and there’s lot of there. following

And lifestyle growth Doug, recurring the for of you piece I revenue? us. entertainment and real that’s as mentioned, percentage why you area to think – going on the can I So be is take a don’t great. other

Doug Smith

Yeah.

which revenue both and print So of XXXX recurring represented XX% digital revenue. for represent and subscriptions, our fiscal subscriptions, total

XX% we’re we the right percentage XX% growth very to that at closer but now. that time, over time, over strong seeing expect digital reduce strong in Now, that will do advertising

John Fichthorn

Good Thanks, luck. Great. guys.

Ross Levinsohn

John. Thanks,

Operator

closing Thank Please I now conference to for go you. CEO, That Levinsohn, concludes our remarks. will hand session. Ross ahead. the back Q&A

Ross Levinsohn

to with again, QX thank and speaking joining you for our we us want forward you May. today, in earnings to I all look all for

wish and great all a So you thanks day. again

Operator

and you, event. gentlemen. ladies today’s Thank concludes This

at have participation. disconnect wonderful for time may day. a this your and You you Thank

The Arena Group Holdings, Inc. (AREN) 29 Mar 222021 Q4 Earnings call transcript