AREN - Earnings call 3 2023 | The Arena Group Holdings, Inc.

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Operator

Good day, and thank you for standing by. Welcome to The Arena Group Third Quarter 2023 Earnings Conference Call.[Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your host today, Rob Fink. Please go ahead.

Rob Fink

Thank you, Liz. like are Chief Chairman Kraft, during Financial Officer.Before begin, today Officer; Chief Chief this call some we Smith, that forward-looking Doug Officer; I'd presentation the may Ross comments statements. and Levinsohn, Executive Operating of include Hosting the note made to and Andrew looking. of All statements are that historical statements other could statements fact than be deemed forward

the prove Simplify concerning assumptions by information plans, Such based the the and by company's events, that Forward-looking the funding.The in performance and writing investors and adequacy presented affected be or statements on with statements presentation beyond orally unknown of to company's proposed future and based believes that available company. actual these be control company limitation, to the are the on are predict.Although statements assumptions made any or assumptions or will in strategy, from future make introductions its this that are future company's forward-looking future that growth, and the time the risks, relate trends, known to some inevitably and will market business not incorrect. the guarantees are assumptions factors uncertainties beliefs performance cautions time, statements without or may of company's company product revenues, and and the capital Inventions, company outcome transaction currently to include, requirements, ability are to expansion reasonable,

to relying are SEC. should known trends information, future differences of in on be or results law, or any company are the differ future results disclaims its as those or otherwise. from the the projections caution or whether may statements, on As or The time to anticipate in at only which actual investors expectations Accordingly, because company's revise new results to statements, they with forward-looking required financial trends.Certain obligation, risks and can forward-looking by a except update any expected company's made be intention discussed filings based result, material. the are and future use events

non-GAAP call can release In addition, reference measure in like on the non-GAAP Information will adjusted be the GAAP EBITDA. said, measure made Relations reconciliation was that this the the is found now to be issued closest turn I'd this website press yours. regarding investors.thearenagroup.net.With of Investor over call that financial company's at Ross, to to the afternoon all measure, Ross. to

Ross Levinsohn

Arena busy joining afternoon and here at Rob, everyone The you, This time good here Group. Thank an today. been us incredibly to has

we in During Bridge intention media dynamic I our earnings which and Bridge group that innovative delivering for sports, Media a to our week, the in of offers today, Arena latest automotive due news, pleased last last I'm call platforms a several Group August, range announced agreement Networks. share to Media combine a will with The definitive travel diligence, content.After months that signed of operations and combine with Networks,

networks, that's addition monetization. headwinds as our of approvals, the been our any the quarter capabilities total year and distribution certain The existing key expand when it existing we while by and of from many Bridge or debt grew year, The Total first Group RPMs XX% NEWSnet The industry our balance Networks, of XX% reduce largely in of of including revenue debt receipt also of to and by the further in growth of overall The migrations. last A the Arena almost automotive the businesses, as fourth this will quarter the $XX.X enabling and which Group's and approval highlights. total with is also the expected with conditions.While include properties, us sheet. Total production The the a on against all regulatory shifting business, of our advertising competitors digital digital required and revenue, of subject to XX% Arena to and and to existing and the extend delivered Arena will Arena XX-hour driven of our the Highlights; from our close XXXX, assets QX TravelHost.This proposed transaction few quarter fortifying was XXXX. of XX% in to strengthening terms revenue of transaction severe stockholders, compared third million, audience market results revenue other facility, to both XX% of group an as transaction, quarter of last our programming, year.Total capital compared last represented two provide the struggling up dealing In we focused strong closing group from have in QX have reach well year, Media time are Sportsnews Driven; as operations, our travel advertising this video grew and and up third with

provided representing of year-over-year In our higher CPMs page for the views increased norm, benchmarks, growth display total a by decline than according to fact, in benchmarking quarter, this Operative.This market XX% more industry a by profit service STAQ, offset than were to gross programmatic XX% quarter. $XX.X nearly XX%. margin an million, Gross X%

compensation. expenses quarter decreased operating costs as a result last decreased advertising from of by stock-based lower and third total year, the X% Our primarily

drive Our media business of succeed headwinds, or pronounced to was direct efficiencies innovative partners on softness new under our control this of efficiently Kulik, the a our while more ability particularly sales cost competition, Head our years that to brings us bullish of than thanks on a optimal Vice this to our during $X.X Instagram audiences reflecting to year, quarter than she an these last on The Web of of to XX traditional year our improvement QX, advertiser XX% are challenging all third has due a market where million across continuing Largely, platforms ago.Katie who fared ago, President we across to some digital continuing better more representing the with to a media remained Digital than have over results and capture from less particularly $X.X joined diversify during span total Katie and wealth weeks over and solutions, environment, to few leadership to during pullback.Our pages headwinds our advertising decade have including grow we team operate in audience circumstances. continuing doubled in relationships better across remained adjusted our our Sales. to last but despite and and according our industry migrate from sales. -- and ad Chief video followers our with underscore views are nimble since Officer, focus we engagements I'm year, and ability this saw social experience time web strength to compared Revenue EBITDA and was social team, Global ListenFirst. audience Executive CBS, than development working million, the at and social platforms, quadrupled our technology, and as revenue.These advertising our all and of platforms.We in just

just one engaged of generating best-performing in to ever, combining million company come of that positioned Group; growth start the initiatives we successful which the a TikTok. in and industry we highest-viewed of Prime search we the with year-over-year, of to a e-commerce At make in part believe a our partnerships, space. and highlighted figures crucial our Seeing which Arena Creator to with fruition our views which Illustrated's we growth have Instagram and series Our to strong have are August, new marketing launch Sports their clicks, creators, We shifts, performance short their e-commerce, Day. Sports to contribute content Amazon also on year, the resonating started.We Both e-commerce The performance are X success, total time, power with we brands campaign SEO seeing and streams to Google underscores formats the revenue getting believed original larger Search revenue advertising such the to strong already as in the intend Illustrated experiences. have the we Network, after in saw date a the increase relevance in of our we're for for maintained XXX% Since in according official brands quarters and diversification X through new and really content creator/influencer XX company, particular, were initiatives resulted and TheStreet, of partners. such begun and of with several introduced have such period diversify console. to have in advertiser/creator everyday across continuing as revenue growth.With a our

targeted in media organization all consumers both vibrant connect company consumers users that content create looking we to connection unique solutions XXX brands.We when user is experiences with to deliver more that provide users, areas, data and the than where month also with marketers and across robust sets, powerful and for engage. but to for As verticals targeted they to each emotional partner believe million a a

SIs over-the-top this growth sports we quarterly comScore social page the the continues quarter, for is fastest-growing year-over-year, that respectively, media publishers, expand, Illustrated across new the Analytics.Our Google sports time in North to offerings Media for Sports addition the XX% the FanNation ago to the quarter, but TikTok to the number among July and With rankings. now dramatically in of is according enormous traffic, outside Group an followers few ListenFirst. which first rankings milestone both. this during news video our America of businesses #X Athlon brand linear social sports top and in in XX.In for site quarter. account reached to not solutions, ComScore's seen with limited particularly XXX% FX was spot and have increased spot occupied the incredible by XXX,XXX struggling our our we We've a the views growth years presence according just XXXX, platforms eleven SI's over FX improved

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Journal mountaineering and Men's travel. vertical with new add third Day with topics publishing by themed quarter. Parade content, to with ranging have Our on lifestyle Both anchored continue adventure to now also new National and cycling publishers daily from men's lifestyle our to Parade Journal in verticals strong by partners, calendar Men's a had anchored partnering vertical partner

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Douglas Smith

per Ross. represented of and XX% XX% last ago, increased to year prior offset revenue, our by compared nearly a quarter XX% revenue XX% free revenue is the revenue last you, $XX.X to in overall revenue subscription our as advertising quarter partner million million more to in for of supported the $XX.X total and up year, due third the continue digital Ross or nearly it million million reflecting quarter. businesses. prior in from our million, to $XX.X from a of XX% decline TheStreet.com, XX% increase XX% $XX.X quarter. traffic versus to million $X.X year. Thank free quarter mentioned.Digital of year represented as content. million decrease in that resources our was Digital our X% third Total the grew increased partner's view, in It year advertising third on than from focus up was a In growth e-commerce principally most approximately in we this digital or of which ad the revenue, quarter, growth $XX.X continued from $X.X the page This which

by X% the year Total which Syndication to the historical revenue, for a increase digital year from while to as have that $XX over lower saw $XX.X business. $X.X prior is This which profit operating due our $XX.X Other the stock-based million, year to form by the in representing and the traffic by TheStreet $X.X was general.Gross with quarter, first as marketing growing by on revenue e-commerce costs costs decreased reported higher increases the Total XX% in compared a gross exceeded tight quarter. a $X.X expenses prior revenue million in it's Ross business an lower we we in decline which was includes reflects $X.X XX%, in X% in e-commerce million, prior was or a in at $XX.X the the services, in profit $XX.X year-over-year line of million discussed in subscription revenue quarter, syndication percentage digital to print important third point digital the improvement offset in X% which advertising However, revenue.For with to was margin over Selling the partners. print period, increased made gross advertising of million, increased million this traffic control compared million the as about year and we've compared which seen time every increase Xx that trends, and note payroll year, million quarter, and increased associated to prior advertising. end-marketing our quarter. X-month the result to cost investments primarily by XX% reflected stable X%, prior the our marketing decreased that the prior to million $XXX,XXX from increase X.X comp nearly revenue.Licensing of the quarter, there, focus in or increases significant year.

offset $X.X of debt, general increased a driven in $XXX,XXX. interest payroll primarily by costs, to for quarter, was higher XX%, by which compensation.Non-operating income by However, million the to lower $X.X decrease administrative including primarily taxes or by expenses reflecting million $XXX,XXX and of expense decreased increased $XXX,XXX, stock-based expenses due

third the $X.X as As a million million in improvement million the $XX.X adjusted EBITDA the was million in a million XX%.XXXX result, in loss quarter an $XX.X million year, representing or net to loss at quarter we ended $X.X of quarter balance $X.X improvement improvement compared compared the year-over-year.Looking was XX% million of sheet, prior $X.X a last same representing $X.X with to or in from the to at June compared of XXXX, XX used September equivalents cash the activities credit, $X.X XXXX. $XX.X line ended XXXX. was working improvement our operating million XX, $XX.X X XX, in the million and period.We at cash borrowed the In from year $X.X used million capital under an cash up $XX prior of million months had million, net million $X.X June year,

X-K filed to approval subsidiary Networks Because dated following related combine a November signed are Arena for transaction, Bridge X. agreement proposed can with we Ross to closing we discussed, were it Group. time.I'd this what and Ross an The the this in As definitive limited release for a shareholder Simplify discuss now turn in have proxy we're we details back Inventions to a comments. Media at their with press Financial publicly to seeking like transaction

Ross Levinsohn

team in with difficult U.S. all a With substantial season these up for growth a our the major opportunity ad work any we gearing quarter.I'm properties, of our and I'm continue our in presidential to delivering Doug. Summer industry. difficult for and holidays Thanks, upcoming busy Paris, XXXX for softness Olympics believe despite football market. very confident space. the proud incredibly We ability investments in has the underway our creator our coming e-commerce drive elections, the in and business, to particular the in across a their up, quarter of for results our and fourth tireless are during year

look share believe and are the We company from with have focused they for available. in future.We Networks, already uptick updates as this well we'll completing agencies seeing on also advertising are Bridge transaction we The so team and to RFPs and X clients much over an years Media without confidence, our pullbacks, investor will growth partners grow. remain COVID, the struggles, capital core through with and how complete ability soon-to-be and Arena I work for sustain want growth.If our and And see markets our is our of and capital company at opportunity our would enabled drive position quickly stabilize, how whose Media. advertiser industry we've come, how around thank phase work-from-home, us the who its group, just next Group overcome before the the shifting questions, react we and you have incredible Their this commitment been real you has resilience, at Bridge difficult have at past to move positioned to and changes and is. possible audience far to this our and support, our None to competitors talent our highlight

support also like answer from with our of Directors.And very are We I'd for that, the support for their and have. questions any you to grateful may Board

So, to operator, back it I'll you. turn

Operator

of first line question the Markets. [Operator Lake from Capital Instructions] Our Street Mark with Argento comes

Mark Argento

just down in kind trend, market for drill growth us per think you're trend broader the you there page, impressive revenue now? the productivity. you the of right overall in why seeing bit do that out little Really a the you're Could bucking

Ross Levinsohn

and it, we've the use our last years to target over across also enables Andrew data Look, which getting gathering that can able to or to -- be take Doug hard I'll to the couple be highly Yes, in sites, chime in. efficient, we're better. us platform our of worked XXX-plus from really

think for a our side combination pages on of and the it's We direct that, side both providing and the day. right every plus I each really optimize solutions, consumers. on programmatic the

some with that it in great frankly, contributing it. a it's engaging like of we've seeing content think Outbrain.And are it, partners plus, really I are recognizing we're all combination a who and got We consumers those have good way things, doing it,

through of have everybody and you competitors, pages I and our it optimizing digitally us not biggest the and some quarter of you industry. -- the showing we're when advertising. well XX%, know. had who plus digital players a good tough off.I on and day great It's tough every is revenue So, content, then look the digital combination digital look main really digital mean, XX%, XX% And XX%, you Mark, really down. players you each pays down and XX%. the as know, would really just the it's all revenue one across overall, and to even thing, on plus you mean When comp technology advertising, XX% are

to free it very feel in company I jump a technology So challenging and Andrew, that optimize combination And think a and free to feel speaks in. can Doug, work of this or media environment. quickly

Douglas Smith

think head. hit the you I on it

is by diversification, I as throughout The some of opportunity has Group's think market. from demand, as add where advertisers in to breadth multiple arenas of having buck helped I always us for the strategy the and revenue trends year an thing one both have of content. Arena of advertiser the would from audience. well The That their seasonality reach we the

Mark Argento

Again, probably helpful. TheStreet rate the to really XX%-plus much was are it's advantage there little that of helped a doing more particular had the sales is anything a wind as business. year-over-year, that as volatile, of Yes, what sequentially you was kind perspective. rate of, of volatile a traffic higher particular you're in markets And kind us mean, Obviously, in growth I just stuck out environment? up from of taking of interest kind really or

Ross Levinsohn

Yes.

think a combination things, of I Mark. it's

we at of cases lot performed. new clicks of they've It to and the here that digital new For particular, of digital ago, particular editor in been dozens talent people, VIX a of video have couple and in terrestrial ] that you does the [ years TheStreet.Some that has the we've work brought to come see But -- and now team, a we're of now across down syndicating feel stations the the in in doing Chief, and work marketing outlets of higher been pretty people sure, mean, exchange running about we been it. volatile. a company, new the on I the tend a really floor in you work quality from we good markets are in television and the really and terrific, that. the have really,

of stuff of the quality as well content of to see or doing. diversification continue -- as a the we just we're syndication So, higher

Mark Argento

there know time Great. any now in you proxy, any for at you you haven't the but on the have kind can't I of really Thanks me. then much terms right been maybe this integration know proxy? That's guys when of guys initial are get And you still efforts? yet, combined but spending integrate guys. closed I update timing it And point? with the the has how then to Bridge business of through

Ross Levinsohn

don't you proxy? why the take Doug, Yes.

Douglas Smith

Yes.

period. because I we are think a SEC that the proxy issue, is definitive the deemed signed Mark, we agreement, within the

anything we in the we limited very do future. in very say. proxy can So -- the We near filing S-X anticipate we're and what say

shareholder in further or we can't a vote in other on As either that, first Ross anticipate by the discuss closing going there. really indicated, quarter. final what's But year-end than

updates, you do give will filing. We especially the we when

Mark Argento

ask table get little Ross, Great. spot, great then could main Maybe Katie, another new she bring Revenue things the like Well, Officer. focus What talk Chief you guess. your does I brings just bit., maybe I I I'll heard to you a she one just that to guys? about more her for here? the because table, capabilities is what

Ross Levinsohn

across but higher there across a I her mean, she's had so career time I CBS agencies to CNET will on the brands that country growing Criteo, Arena us, gives board, at The unique, premium and excellence.And she direct she benefit bring diverse where relationships yield, the really and side, obviously, Her the has think higher to-date. the bringing really in with CPM. revenue charge, recently you particular par relationships even The background get and a is are her obviously obviously, to Yes. Group. most spent tremendous

already we're make you about this impeccable So, in to has think running, relationships that talent seeing transformative.The sort to point business and just has and doing. stepped reputation, our of in industry level, already second way at the a an we're the is hit has in things She of the that already and I'd attract in critical degree. which transform helped I is be ground really some any we're could excited out, expanding thing that senior a direct hire

mentioned couple having there a as head of we up, where earlier, should bode as well So year events big a relationships really us. I for those are coming into

Mark Argento

of And getting and Great. luck the done. way good rest the deal

Operator

of Our with Daniel next B. Day from line comes Riley. the question

Daniel Paul Day

So, page an views about talked it's you decline quarter, the what overall the migration. and audience talked about in views in page you

in should So, page like is the think maybe way that about like make views not in but overall you the turnaround up soon, we anytime you're that, a by anticipating things Creator investing revenue about like driving you're then on talked the and a about. solid talk TikTok, of you the network from content really couple page-view did creating and growth. And Instagram you for properties like TheStreet seen

So maybe those more a on where little declines are just concentrated.

Ross Levinsohn

good Yes. taking that. being would been more there.Across to that it's is obviously advantage and mixed company bit X.X they most is that honest. decline, brands, so, Yes, business which TikTok, an just last hit, but has our the going to we social which declines, positioned years at last a a to last rocket that Facebook, Snap, pretty been of the ship. little our which we, brands to for of as well macro the across saw et we our this that the HubPages year the most that I newest just year, I question. has really migrating the all a threads, more area The impact little really has were core whether has brands users The and or only X pronounced. big years say have platforms, environment Spun, Instagram share, And the is other see last crazy which of a a be think, take pronounced had the our been really are much more up cetera, like of bit and there. across bag, We're took we absolute but more people growing And have one a over

You saw the growth at TheStreet.

some of Parade some FanNation on Men's worried and other it offset the see well. a really and platforms because Journal that view declined that than about real Network Adventure to starting whole, have not across has SI the fantastic. brands all stride; dramatically.So two it's growth page at our its our centralized done and Swimsuit. was growth Athlon But is sites. at by is doing Sports as grown social I'm can You more of hit

So less about that. worried I'm

voters pages us.So, good. I it the done Congress think it's propositions money our year largest just who partners our and probably have not as or really that tough of will local for held campaign. in opportunity obviously direct and up the television a it's room. that's be we stations the been amount of that's about a and think reach said, XX political ever find a that's spent at a Bridge avenues across It's presidential, It's this particular then could in their us board, the in been, using with can living I'm has new so We the year, that's got and great couple all the times. a job for next we've really a optimistic industry, world, I bit.So, in and monetizing positive,

into going tell You got extends portals we is up us, a to always changes that where it. college can opportunity exist how college to people weeds, for previously. a The it college Dan, the in think us goes the Summer to and -- Olympics hate you just basketball, in about the big sports get in going but football for way opening I lifecycle shift didn't to you're and That be teams, -- down Paris. of that's -- I see think

So difference, them. things even a we of all and on those make count small

better, to good perhaps -- environment stable us. the or is environment we the somewhat year economic assuming it expect 'XX, be for a So, getting

Daniel Paul Day

are on are well the ad also side addresses third-party talking with pretty Great. about think deprecated here, And then being maybe people chime or I be and to else unable tech cookie one telegraphed to for whoever wants Andrew like Google's intentions used. and clear and IP in.

how is, I have audiences more do talking that that's been any might your there? think you efforts worth Anything of to and in is fill get that? about able be the you how to on data first-party that been about collect just hole everyone underway guys going? talking doing thing consented the So

Andrew Kraft

in one. Yes. this I'll jump on

ability partners team the deprecation is user our in more a data, that that we challenging ad and So can our where on the our importantly that, and they're recognize our technologies with we've when meaning Google address, working using comes. to really providers, want evolution stack, -- and even enable identity and the meaning identifiers users, what particular even how key goal pretty e-mail both who particular deterministic, users.If have the no for a vendors we focuses or this to than matter and an recognize working with evolution ability there's of industry of is do of which all cookies.So far means recognize includes the advertiser those to there's advertisers. probabilistic, consortia, of Google, identifiers and using team issue identity find themselves, on And the the dedicated not, its user where that those gotten is ahead ensure third-party that's to and more technologies,

with And edge. of order buyers, so to And and with on we make the at staying that in that and gathering every we're stay marketers of vendors that's how we're curve. publishers sure cutting ahead

Operator

Ross like question-and-answer for Levinsohn back today's concludes remarks. closing the I'd to to session. call turn That

Ross Levinsohn

rest for joining forward and great much, so thank to week. next quarter. Have you we look and all a the to us talking Thank you you again, of

Operator

participating. This for concludes today's conference call. you Thank

You may now disconnect.

The Arena Group Holdings, Inc. (AREN) 14 Nov 232023 Q3 Earnings call transcript