AREN - Earnings call transcript Q2 2022 | The Arena Group Holdings, Inc.

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Operator

Good day, ladies and gentlemen, thank you for standing by. Welcome to The Arena Group Second Quarter 2022 earnings call. At this time all participants are in a listen-only mode. After management’s prepared remarks, there will be a question and answer session. I would now like to turn the call over to Jeff Stanlis. ahead. go please Jeff,

Jeff Stanlis

the Officer are Financial and Hosting and Officer. Levinsohn, Chief Executive Doug call you. Ross today Chairman Thank Smith, Chief

of that All statements Before note than statements this would I fact other deemed may the are forward-looking. historical some statements presentation Statements. we during be comments Forward-Looking like include of made could begin, that to

make introduction, future business Forward-Looking forward-looking. that any based Statements investors known affected capital expansion the time orally assumptions based or without to company’s Forward-Looking strategy, limitation, control and factors of time to funding. and beliefs, that revenues, include, on may the and this the requirements, relate are are actual writing that information cautions be to risks, ability in Company Other plans, product from company. outcome in not performance future adequacy presented the beyond the statements predict. also Statements by currently statements and Company’s historical Company are or the facts events on this growth, future and are or to are market Company’s uncertainties, The the made unknown that concerning assumptions by presentation trends, contained available in statements or Such presentation will

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

call results in different With from Forward-Looking company’s investors Certain yours. only and to the As a would and anticipate known like that, expectations should be filings over to on in Ross, result, risks are with they are the can results future time the SEC. its Ross. cautious are Statements, made relying or to to that Company’s actual difference trends based expected call now is material. turn I the use trends. may the discussed results at on those which be Accordingly, be

Ross Levinsohn

growth. was a We asked since to This CEO. everybody, to of as Group plan Thank as its a marks goal Company think was lead set business and on for a We the were, clear doing startup. Thanks, two with of We Arena architected focused measured to that by transform joining. profitable bit what building so you, the we I who and years be driven sustainable, data. it out Jeff. a ourselves were we the

same our profit Over XXX journey, XX, to nearly four June in been two has the to Gross Revenues have the the period ended on of million by terrific. the seven years XXXX. have times same XX expanded results XX first quarters from period XX based X.X million million. times grown versus XXXX million from the

million towards ending this EBITDA move adjusted quarter, In X.X have net this the XX.X the X.X quarters. improvement year. June a loss up period of the topping the With And X.X audience grown we loss had versus which during same used from XX% versus operations is from exponentially. of page an to profitability. billion continue same our cash just of X.X and last when four in from XXXX, million we last an net year, numbers we quarter, four positive period cash use over million generated million of $XX We quarters million operations, last

to NYSE in a were investing because of February and up growth the we adding added are Parade a to We have We Media completed purchase we are the year American listed of robust our company new potential quarter Group a in We new acquisitions. XXXX and our Russell June. Company of pipeline lifestyle this vertical the Company. this we to including Athlon this

metrics our growing committed sequentially to and are each quarter. We improving

That for growth startup a an mentality array our growth. the future. amazing recruited built of helps on, that that Company, building have talent drive and across one world and class have is we building focus We for management one team, and

As last single of substantially helped infrastructure issues. a our our of chain support brands. and completed supporting have slowdown us, hundreds operating much experienced fortify investments and the compression supply growth all bigger single to others These in major quarter, ad on we a investments, platform, have a we and execution technical related strategy to stated company, has as all market,

is experiencing early accelerating are advertising KPIs. signs those the We in and that are not QX And that all same momentum major and continuing. across is challenges

challenges. However, we without are not

side have made to have the have Board. several our and related near-term business paper and distribution our a that surcharges fuel print decisions few on of both ink negative positive across strategic slightly. our of we brands On impacted And and margin been the

our and plus side and proprietary audience later. we a set by in pivoted increases But invested we HubPages tools of of brands. on focus, bankruptcy company combined we in the entirety business services business technology and we content and Two playbook our incredible years-ago, committed powerful and dramatic and seen all headed growth, that of investments premier to are driven and SI pivoted have making establish our where major and and sponsor across a for long-term Swimsuit, brand anchored a properties for future on our core the focus strategy launched in execution quarter. this revenue. We the the necessary brands the elements in in of with to vertical has have believe the traffic At to and more profitability the the our profitability. stability our for enable upside that has we the impacted results revenue brand On

foundation strong without a operations. be timely. expanded in investments built And that couldn’t two and have more significant scaled past has our at years the that day-to-day over group the arena We

our And and audience position model widely been our and our our to for a looming are has fear quarter As of difficult a this growth. has recession advertising competitors reported, pullback. many foundation, seeing take of defensive been in our we strong Thanks business industry.

CPMs audience. grown last significantly, continued have have up we expanded quarter the with We navigated we our accounts XX% sales Parade. partnerships the versus same are direct from year-ago, and challenges nearly same XX% year the period display have largely have excluding up Advertising one second to period grow,

continue teams award winning editorial to content. Our produce

Our partners deliver our continue relevant we that timely In consumers good and news quarter. a short, content to to of share lot you have and sites. highly drives this contributors to with

Let by things highlighting off results. few me kick a key

growth grew our ad revenue year. revenue million to grew quarter previous to for XX.X total and in XX% was digital versus XXX% the while up of total XX.X reflecting that in up XXX% by million year XX% the to the now Second digital the by year, our and second from well XX.X XX.X QX as quarter, versus million. million of the Other launch revenues XX% was previous as Overall licensing. Swimsuit syndication revenues million revenues, edition SI quarter second this accounts in of in significant XXXX, X.X QX

XX.X gross XX% to compared million the quarter by profit X.X improved Second in of quarter million, second to XXXX.

compared XX%. operating million Our of X.X adjusted EBITDA X.X second generated loss from second was the representing X.X loss And in cash to activities, as million quarter X.X a XXXX quarter a loss the reduction the improvement a last year. from million, of net million $XX.X million or company in nearly of of

we half all the optimistic in businesses, call business we in last have And of the strong where that year. of I investments in platform across we we off. and continued many growth case discussed lines. made the continued investments were the earnings reached those have to quarter. our second That tipping are that has be our and seeing what’s We point pay the see May, about the come our to to In second in

quarter up been quarter. compared tremendous. as overall at across second growth Our Monthly to pageviews average our audience has XX% Company prior year the were

billion to seeing quarter of doubled reached our macroeconomic the signs compared uncertain. Google our of pullback. Analytics for more continuing than digital advertising year. ad remains Our of the more a work, playbook our result according are we even revenue Moreover, Unlike total to environment second an no as X.X pageviews prior quarter to many competitors, than the direct

our history. and remained in In fact, and our the our CPMs stable, is RPMs pipeline have strongest

the versus same advertising XX quarter pageviews the from deals In same in quarter Masters as the of sports last had acquired double deals our With value CPMs monthly up Average high we period year were our digital average to XXXX. be display work and versus a sponsorship we of grew and XX% period vertical. year. than their closed than more the expect second QX, of QX their direct Parade quarter June doubled Second was million, to we NBA Spun, in due versus million XXX% we more In since a the to sports last quarter in and half for last which the monthly QX the advertising than playoffs, our XXX% roughly number in acquired and such rose more excluding success prior vertical to very previous events year, playbook. Draft, the which NFL that was hard and total several any NHL year. and the testament major pageviews Spun sporting XXX year strong the

growth all editorial was journalism a in four to transformational business social compared quarter, year-over-year cost. on the Media magazine upfront brands, rapidly voice growth has year. last first Illustrated position it magazine as Linked of to place brand for publishers Google quarter was added the this at magazine CrabTangle. report, media during audiences of XXXX including as audience all today base ranked press, continues our Alliance measure well. average Group, a quarter partner FanNation several partners according continued as little resonate number of and content web associated Our to of sports, Analytics. on signed with its SI’s and mobile, The XXX FanNation but sports the share to growing won editors Sports category. atop sports this high news Media awards, three key another according brand, SI quality print with well, brand sports our half readers Facebook audience, publishing for , We across sites not additional has video. XX% its web, Stories Sports new no Earlier fastest for just to Sports breaking released as its Audited QX the XX of monthly The as to measured growth pageview the driver Illustrated expanding maintained comparison Illustrated total in first team and for

presented Aschoff Rising Just very Johnson. our Richard Writers Association last Edward Football annual to award own of month, the America Star its

of SI Our upon also to editorial to legacy Sports focus area sports continues storytelling life. Sports Illustrated’s end its platform our to for in team the our business. continues ABG, end be launch state powerful bringing partnership Virginia of the betting with build sports Sportsbook, third May launched to second at year. plans betting major a of running Holdings the state with a and XXX of by

a compared coverage up betting Our according average with editorial has to related prior year XX% second driven to Analytics. the in traffic when Google quarter pageviews, quarter massive monthly betting spike

Our Analytics, according to increase quarter-over-quarter. monthly month saw of increase finance vertical momentum in the percent a that the we continued has a year XX average period QX pageviews prior XX% with per QX million versus strong Google representing XXX% and

audience reminder, online nine Google TheStreet’s a departed Cramer according As Analytics. to then monthly Jim million TheStreet pageviews October XXXX. in generated

of covering more continuing markets news of are the particularly to voices playbook, the content become diverse seeing application from add breaking topic. continued uncertain. TheStreet’s are And success a We we wide coverage, editorial as range to our

grown our media, has second Our to prior as resonating ListenFirst. quarter compared XXX% Facebook to content is where engagement especially according the social quarter on

financially Our expanding been Parade.com part have onto our AMG/Parade, very April large has lifestyle post quarter, on this July thanks platform in migration. of our We one. our to in and grown closed audience revenue and acquisition moved successful in vertical which

One and our Sports of success on news in very the seen launched last Finance. is breaking key vertical our and content lifestyle we already strategy, Parade.com growth We are playbook, strong our our which platform initiatives has trending seeing applying and month in results.

PetHelpful pageviews early dollars the especially average monthly and our components XX our PetHelpful. and QX Additionally, an of have increase XX% success year-over-year. most prior with HubPages on XXX% in QX seen encouraging several XX carryover million of We as that over notably quarter average increase we beyond. quarter, I our according of remarkable into sites, pages the million in growth over to quarter, Analytics. last brand QX have of playbook The been pets for deploying were has shared monthly seen HubPages’ a Google saw

immediately and to continued have several Kids works upon our development role model We quarter see our in a playbook Dent the traffic Exemplar and reliable or demonstrating playbook that we played this verticals. growth launch, again yet to have Audience increase Garden, almost topic is website. across and smaller sites HubPages rollout traffic across all We almost Deliciously, continued big including any to and Have has

the year content in the audience younger XXXX Instagram that to the half to creating engaging as Through of ListenFirst, a Social XX% quarter XX% on and also link year-over-year. according traffic said continue video publishers half Facebook. sports voice vast to and we first as Tiktok. on I sports appeals on development consumers views teams, first have one new to improvement the increased to our number earlier clicks Google with editorial of compared have based up second seen as SI we major for finance continues have share posts across in focus

to continue In our advertising, we diversify to addition monetization.

compared a sales now increased of also with revenue second due X% year. in year, to significant SI in in new to last leading quarter affiliate pillar the the period. million, across e-commerce. e-commerce million representing period of has a It for inclusion and by the affiliate revenues growth the recently e-commerce, the platform. quarter year prior QX, This In e-commerce Second signed licensing, drove was syndication and partnership part of line our other in e-commerce the prior quarter versus drive create syndication content our total four X% versus our to Revenue company business and revenue. top our including year Swimsuit ongoing in licensing and X.X we media reflects third

of more our to this throughout expect piece We a more and and meaningful year business become next. e-commerce

We challenges me let are few. not and a without address

to profit lines results expectations. year-over-year demonstrate our slightly were continue growth, strong While operating our behind

And from substantially for print acquired print business I particularly ago, of profitability, seeing transportation, Magazine. would already across mentioned surcharges levels economic our recently exceptionally note and a has onto traffic higher Parade and our platform, vendors I As Parade.com we integration playbook grew the few impacting global gone minutes charges have challenges where the paper our of and a to well. proprietary for execution that technology fuel, contributed our our business efficiency. ink greater are

did our the first better with of today. adjustments of align over as the One initiatives digital frequency year our this may right Illustrated is which we with the economic businesses Parade of just two-years include the print at balance key business focus our to Sports changes things sizing like of operations, other over and and realities

to adjustments While especially this is view way digital for our on with at important, SI and and primary consumers. see valuable to focus we as print continue our a properties, strategically some the strategic the business, we value proven we have business and

made directly by our at $X our negatively this changes year, which SI major roughly Swimsuit quarter also We impacted million. franchise

for created to the I a Swim For has indelible more year future. Illustrated realm. beauty within one magazine pivot making time beauty created SI defined of programs more for serves Swim as center gender solely the was than magazine equality from of as with as This brand Last content focus conscious and and on imprint it in the lifestyle and and launch delivering advertising Sports will advertisers a the an channels purchased for drive no to With sustainable and launching the was Change leadership advance mandated a standalone as per incubator available Swimfluence empowerment community brand experience the a and long-term. in based part that companies investing the effort empowerment. initiative, longer the female for that This subscription, year it as talent, which a online. print development Swim female only Network, purchasing forward didn’t which community at newsstands deals and round, SI move supported launching sponsors in Pay which towards XX-years XXX-day One progress women on digital included future programs year, ecosystem. well demonstrated swim agreed or the initiatives. but

initiative our the and went that initiatives year, into a Miami of good and number setting July’s at million. both a is female million strategic Swim to launch While impressions. last for over users Google of by There than year’s Week. experience change The has revenue coupled $X unique issued year-over-year year-over-year. immediately Four new during dynamic for immediately the three of day users XXX post powerful however, our executing bankrupt, QX. news to partner months influencer press run shift of TRX last with largest added during in empowerment more content quarter months XX reducing increase during XX occurred three million next the more quarter Analytics. launch year brands support several Swim million More showcased shortfall our XX users and pieces creator this has post users million for than May’s note This according the the this will launch created an compared three of launch, the over months this million record which four $X

So year while pressure to new seeing brand Swim audience potential. and The transformed will and we round. we in over QX, commerce saw increased our our the has believe two-years earnings Already past contribute revenue interest, now strategy we we significant are business. extensions architected sponsorship

reached. infrastructure, that growth, hundreds powerful model can around without business of essentially significant single businesses and SaaS model services, support our Specifically, efficient technology and a a once centralized scale centers is cost

We point. that have reached tipping

Our playbook is a growth. each and production, of for our brands strategy distribution transformed and our blueprint analytical dynamic has

all XXX than million utilizes them and a all our average reach brands simple audience monthly monetization seamless, advertise with model brand costs. delivers Our highly scale and partner for our that properties premium in to substantial technology, across upfront users is content an vertical more our And platforms. model each content, to growth and audience and engine no for efficient, anchor a with revenue way

lines brands enabling business licensing are deliver and content scale to launch to and powerful and new commerce are Our initiatives that and syndication and growth grow results. including beginning audience,

the and have I to to of We to do continue continues base cost built our a a strong stable to foundation anticipate and I talk our the profitability first, needing through half you not take traffic XXXX continue the to fall Smith, line, as like the are revenue the as June, let Over our to CFO, expand and digital Doug added year. the remainder Group Our driving result, for streams add Arena stated, numbers. Russell our bottom to Doug. audience in to grow. index. and would as to I of outlook But diversified revenue to about was our more would like and incremental finally

Douglas Smith

Thank you, Ross.

Let XX.X occurred third XXX% me of XX% the increased to up down revenue, during turn the of year represented total XX% Illustrated the Other the our which quarter. million, by subscription of year. revenue properties increased revenue grew CPMs second to for last that of approximately Magazine, revenue the million impressions. Digital million, XX% increased the well lines second quarter, million as Breaking versus compared Sports by digital attributable was Digital the million, in the revenue display is of In quarter quarter down in organic, the of revenue expansion greater across to dollars to growth of to second versus year. results. significantly direct digital ad of across primarily XX.X core CPMs the quarter second versus compared this in revenue traffic XX% the the related in XX% XX.X that all was higher XXX% growth XX.X quarter. quarter X.X of X.X percentage XXXX, the the to of quarter both launch last Swim our higher and year million CPMs. X.X traffic in million a last and a second our as of year in driven launch and an advertising all advertising second driven year, business XX% digital the as price total last by improvement was prior our

the the XX compared the year QX the million the SI quarter in of revenue Gross Print last Illustrated gross revenue of million the significant XX% of due licensing a XX.X versus acquisition XXX% of magazine, Athlon up was prior addition year. to Athlon increased increase Additionally, in profit The to XX.X was in versus the million of Parade to million the Print the primarily Sports related increased quarter. prior year costs indicated, to and million revenue business this from in properties. prior rest QX which year. XX% Parade advertising, properties $XX.X growth profit was quarter. Media due in increased Group, the in of Media we which X.X dollars $XX.X the and to occurred Media saw year Group Swim to Cost million

in growth of traffic digital development In of to in the effect we key addition, audience properties. million XXXX we XX.X these year half million full by have the driven Group been advertising XX.X personnel the talking second about. driving analytics are of in Total adding operating have The we and versus of the quarter costs folks increase Media year, primarily related expenses was second in been Athlon the the quarter. to addition the and the year investments was made prior

XX.X million As quarter. million was result, net a prior as in the compared to loss XX.X year

XX.X the of Adjusted of million representing million, increased second quarter compared million of quarter the EBITDA compared of of quarter as included in a non-cash second XXXX, million million to second second charges as improvement. quarter negative charges $X.X negative for percent a the in XXXX prior X.X XX% non-cash X.X year. XXXX The to XX.X the to

million With line a it pay $X.X of closing capital down turn X.X from will X.X credit. in quarter million cash at million activities and net ended of at the payments XXXX a end XX, operating of by million and comments. and In net I the at XX.X Looking of March cash and offset equivalents X.X our we million to for to of the generated was acquisition XXXX. million X.X back was compared cash million that, positive liquidity, Ross quarter, expenditures at XX.X

Ross Levinsohn

robust early the is of Group Arena and QX year-over-year, Revenue Doug. have for grown. first Each the key signs shown Thanks, in business audience QX a KPIs and and revenue all has outpacing expectations. has double-digit key very XXXX positive. are unit been half our growth It

strategy over past working. the developed Our is two-years

audience Our our is of all now driving has brands and been growth. playbook revenue implemented and across significant

Our two are acquisitions performing well.

of positive has We for deals, net the and generated new company cash our quarter operations. pipeline have a from robust

We growth are of the Parade confident as has that brand, application in to drive will Illustrated our in that transformational playbook Sports it industry.

business strong pick e-commerce Our during Prime Day results to steam July. up in with continues

We continue to seek acquisition M&A opportunities that are accretive maintaining to our vertical very a model. And we robust are pipeline.

our Over foundation. goal build the strong was past a replicable scalable, model two-years, a a company to profitable primary on with

audience cash growth, exponentially. sheet, can each stabilized month worked We have some and revenue part is massive grow run that important tremendous completed expansion, cohesive business to balance support difficult and built goal. most a past generate to a the investments for exciting future, a have to years, and our the record that business over quarter challenges skilled us begun highly very two needed the we The most through team

running are We couldn’t be school And to front of love I the you the excited and and to QX with off to on about answer We we any back corner. football, with work around to opportunities have. where more back in in capitalize that, the us. just stand start would questions of

operator. you to back So

Operator

coming is question Mark Your your your Certainly. [Operator Lake live. Instructions] first Argento question, line Street. pose with Please is from

Mark Argento

growth. and KPI growth hey nice Rob, revenue Hey nice quarter, Doug,

quick you broke maybe viewership all bit of page where properties? finding know about growth a activity understanding can Ross, give some by little your a growth little this better coming Just of and but how you new a us out from? couple are talk viewers it and property, questions. I

Ross Levinsohn

Mark. Thanks bet. You

investments making lot teams, last our that things like of breaking audience So news. analytics we quarter in trending about development in and were talked the content a we many and particularly and

applying have board. We the that across been

some in the the KPIs when content would relevant optimization us. and us. helps us. at of one timely number looking types growth, nongame of having engine things to search that Optimizing terms real voice to stories, traffic in traffic Facebook traffic call of more to real the creates drives I consumers details of drives share our really for, like on of us. Creating you are So look Understanding stories real what

So making pages meaning money two spent over faster, better, that let’s work optimize only platform make we the ad impressions our past the the years, not we the let’s have.

and the it Let’s content quickly sure great. the produced is to make that make sure content be is when needs

to growth double-digits. win awards, of those are now out, the business one things sports, our doing across the work really all to them growing when we of hub the or We at of continue we contribute is our And each pages, vertical vertical, lifestyle, break board. finance

really team, last And so it run all it is development what to including our a last, call just would for has which in things, the investing is testament had our playbook, those just what year. we had which have I say audience we is significantly a tremendous for the

made combined core think again, that what we all invest. brands which with it mark, And a the really the those things we contributes. of is great deal to all that matters I content, with effort and of conscious have So at have, we

seems earnings. is hit to I years company. have two a be like since I have And the around to to And of make we it have we but it know do been starts well a It pretty hit really we and reset growth And really working I it we have bunch board. the that to across that our years, growth. with have numbers. got startup. We think know for we important

Mark Argento

of Obviously shape are one it. the little gross trends, love of the a I’m a Especially assuming into trending, in margins. print it full how they gets margins cost when recent give is are there, maybe bit I you visibility dollar us of line? bottom color, gross incremental pretty if $X.XX One little digital in good on Good with muddied. quick appreciate some kind the of

Douglas Smith

Swim, margins, Yes, quarter. a the revenue we was year this talked with the big of continue about, that digital one faced And saw component incremental to in really lower exceeding Ross we as gross talked the XX%. margin in Swim we almost all And challenges see quarter. the happened as about,

So, in have most but it, this revenue impact from margin its was we quarter. of continuing do

Ross Levinsohn

really a and Hey on really swim are the thing, property surcharges, now and the XX-months a Mark the is and pressure. else moving you mentioned some impact to in the to little year, once July seeing look of growing was already and which impact I bit as print nicely Everything at - we year a a if quarter, really a August. most for in of the accounts swim

optimistic are there. we So

I of think following social companies, I of ours. were at lot numbers when the companies, some pressure pressure well A noticing of the you we have been look was just below lot across media at the feeds, earnings. all some buzz a industry, of

compression in So we part think are is, and not because we seeing rapidly. that are large so that growing I

team the doing sales an amazing job. So is

adding XX% new direct deals, in that’s higher commerce are which in syndication meaningful and revenue ad We growth licensing ad deals, have CPMs to and us. has more streams for driven Closing CPMs.

excited So things the now, really back those pretty with we half all two what football, like. off our of are heading quarters about year, biggest of the kicking looks into

Mark Argento

guys. appreciate Good color. extra the I Thanks luck.

Ross Levinsohn

Thanks.

Operator

question, Degree Daniel Your line you at pose Capital is live. Wolfe next question is XXX Corporation. your coming from Please

Daniel Wolfe

revenue. for group, be the update. of on great that five you’d a how and of quarter. actress potential times sort I was think comp wondering Ross the multiple acquisition that for if the to arena given as comment Spike I Axio Hi Thanks you was Hawks, noticed able of

interested just you how about know know, think it. You

Ross Levinsohn

user are and startup fan quality love the Allen Jim and Congrats that Vandehei rest something veterans, they think there over speaks really business the team, they five under content, what have we got build folks of careers. really been I Mike XXX that have is great of it who years. the about And to huge had comp. a And engagement million longtime they a went very the Axio. brand. six I and And out Obviously, to and quickly, ran our revenue. last amazing to in mean,

audience to weren’t said great any on get this the it I think speaks money reports growth, a five to content. to making revenue, I saw but it I speaks they think comp engagement, to speaks times year

as business growing fast. comps obviously our - and all take were pretty will they tad we those love a So bigger we and

that growth value us to big I at that with $X.X having. We private, to billion saw We see people are morning, the that just those obviously Overtime valuation. like content we company, comps. about thrilled a this would raised sports called similarly like I So another was round

it and itself. a is improving feeling the is of my in as care will bottom take this proof just and pudding on as growing So keep we public is as The company of rest line. stuff long the

Daniel Wolfe

and it Sounds up. good. you Thank very much keep

Ross Levinsohn

Thanks Daniel.

Operator

Please Securities. Dan Your [Operator question. question pose next B. Riley coming Instructions] with your is from Day

line live. Your is

Daniel Day

afternoon. you good Doug. taking Yes, to and Ross Nice

side. potential So partner we content in Parade the maybe past of and a talked strategy the newspapers on with the syndication that you about Illustrated between Sports some

Just any regard? that in updates

Ross Levinsohn

We do Yes, sure. syndication have that going. business

with We have uptake partners. substantial fairly seen

about are dozen think online two different up newspapers dozen to I from now, we two partners big to distributors MSN. ranging like

positive also and seeing growth more very within some Apple news are We more.

them. care having So resonate I about tied that think people no that all with that is brands to

distributes XX-years been newspapers. Parade The team is between acquisition, old, that a Parade plus the Parade Parade substantial. relationships of for its has in really the and newspapers part those with XXX property exist it those partners is business to Obviously, time. As long about

are that to Again, or with companies lower distribute closely producing from distributing are generating Parade, how content and it think call in competitors, more TheStreet them not networks like I and in a be of that Sports content able Illustrated us money we the about I think tied having bodes for and we to well Switzerland, on ultimately them. television I we by newspaper to half work it. cost active places, brands with So can more will dozen discussions

on and So part are a licensing becoming you our certainly business, think to and is once, it many Doug e-commerce The top-line. high, said, meaningful and said, our syndication as times. I margin syndication it produce distribute I exceedingly

are of to revenue we the very, those so our roughly a we optimistic And more of as things all lead X% already to is in to X% year. it’s much forward. business But grown combination that a meaningful going from very move

So we where about that are takes excited us.

Daniel Day

get where subside? has about gross pretty Parade margins up back in just the those mean, over cost that and little Like were we we the acquisition a how with trending current over or of issues. should around of had commentary business the at Can over same I trend margin of I Great, probably are some to you margins you this kind you up quarter And do kind a time, first as of I frame us the gross SI Parade with of then XX%. or just thinking for some look be thanks that. costs lower just appreciate quarter provided the Swim you the time? frame fold, help

Ross Levinsohn

want to Doug, do you it? take

Douglas Smith

Yes.

the Ross of the as their business. and are we, of frequency side think, adjusting on print indicated, the at distribution looking I we ways

But latter back in range into Parade that the the to - quarter start feel a go been. high-XXs as past typically will half into we we we the in seasonality. the do been year, where have to see the due fourth toward than margin So of the will move was we business we had XX business we increasing that where lower

Mark’s of And So lot the quarter year. the we should this in quarter, Launch for not see I in the swim. the that the to rest question, was and as the to was, in softness said, a related repeat improve. margin response does of that in

Daniel Day

would look you could how great. Got it seeing verticals aggressively the me, of last M&A be on provide any kind in potential out are any you areas new one just and for there, are engaged just then and attractive for talks if anything that environment, updates

Ross Levinsohn

to were think picked to good well get deal and in companies Yes. helpful up a I with It is We somewhat us but ended we additive to very, some is better our and many be Parade us a it us, doing a if would year, distress Parade, companies is out is In price. last for is ways, capabilities But a playbook. there it our full this of are certainly Spun year. not, our the some talked pipeline is to there doesn’t good company matter whether AMG it brands platform. we that we very is There ultimately for say we not, strong, swing we in lot in like last that did. I or year, fact, the playbook lot we XX are is about That clearly bunch. doing out up to think the would of that our there, different the marketplace. there

we those engaged of both discussions. types are of So in

verticals capabilities New some that and household could think also and to add spin up will business. we that revenue brand additional under our capabilities a name,

good talk it deep have to So on call. by a about. certainly news I hope earnings and couple we next we some are into

Daniel Day

it will good appreciate over. well the I it guys. Awesome. sounds I and color turn

Ross Levinsohn

Yes, thanks Dan.

Operator

to in Ross at the appear back floor to over closing questions queue Levinsohn There be no I to for any remarks. time. like this turn further would now

Ross Levinsohn

couldn’t and earnings thank are for excited you We year. time again joining most you QX work you we later greet call all. back be for to which appreciate excited QX. into our are year I is as and means us, fun we Well, our more to for and this the us that all of football QX during

of thank summer. So have you the great rest all a and

Operator

does conclude gentlemen, and today’s conference call. that Ladies you. Thank

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

The Arena Group Holdings, Inc. (AREN) 13 Aug 222022 Q2 Earnings call transcript