Townsquare Media Reports Q4 2023 Revenue Down 4.6%
Reporting its operating results for the fourth quarter of 2023 and for the full year of 2023, Townsquare Media posts Q4 net revenue of $114.8 million, down 4.6% from the same period in 2022. For the quarter it reports a net loss of $1.9 million. Net revenue for the full year of 2023 was $454.2 million, a decrease of 1.9% from the full year of 2022. Townsquare Media CEO Bill Wilson says, “I am pleased to share that Townsquare’s fourth quarter results met or exceeded our previously issued guidance, and our full year results met the guidance that we issued at the start of 2023… Our Digital Advertising segment delivered net revenue and Adjusted Operating Income growth this year (each +7% year-over-year), offsetting
weakness in the national and network marketplace, and first-time hurdles in our Subscription Digital Marketing Solutions segment. In total, Digital now represents 51% of Townsquare’s 2023 net revenue and 55% of our 2023 Adjusted Operating Income, and maintained a 30% Adjusted Operating Income margin, consistent with 2022’s margin. The strong cash generation characteristics of our assets allowed us to produce $68 million of cash flow from operations in 2023, an increase of $18 million, or +35%, as compared to the prior year. We could not be more pleased to share that given our strong cash position, we were able to repurchase and retire approximately $27 million of our Unsecured Senior Notes at a discount during the year. In addition, we repurchased $17 million of our common stock, and paid a high-yielding dividend while also investing in our business. We also ended the year with a strong cash balance of $61 million and net leverage of 4.43x, retaining financial flexibility moving forward. Despite the lack of tailwinds at our back in 2023, I am very pleased with how the Townsquare team navigated the progressively challenging economic landscape. We outperformed competitors and gained market share due to our local focus and our digital platform. I believe that our performance over the past several years has demonstrated the efficacy of our Digital First Local Media strategy and validated our focus on local markets outside of the Top 50 U.S. cities, reinvigorating my confidence in our business model and our path moving forward.”
employees and staff have shown throughout the years no matter what stage of their career they are currently in. We are all partners in this business of podcasting, some for over a decade, and now through company equity, we’re truly all in this together.” Podcasting partners the company says are anticipated to receive equity in PodcastOne include longtime podcast hosts Adam Carolla, Jordan Harbinger, Kaitlyn Bristowe, T-Pain, Brooke Miccio and Danielle Caroland, and Keltie Knight, Becca Tobin & Jac Vanek. Additionally, new PodcastOne talent Brendan Schaub (“The Fighter and The Kid,” “The Schaub Show”), Natalie Buck and Sara Gretzky (“Causing a Scene”) and Jennifer Welch and Angie “Pumps” Sullivan of “I’ve Had It,” received equity awards as well. The planned equity awards will be made subject to obtaining applicable approvals and complying with applicable securities laws, which PodcastOne anticipates to receive shortly.
prior to the date of the notice. Salem now has a compliance period of 180 calendar days in which to regain compliance for the minimum bid price requirement. That expires on December 20, 2023. To regain compliance, the minimum bid price of the Common Stock must meet or exceed $1.00 per share for a minimum of 10 consecutive business days at any time prior to the compliance date. In its filing with the Securities and Exchange Commission, Salem says it intends to monitor the closing bid price of the Common Stock and may, if appropriate, consider implementing available options to regain compliance with the minimum bid price requirement under the Nasdaq Listing Rules.
price requirement set forth in Nasdaq Listing Rule 5550(a)(2). The notice indicated that it is a result of the closing bid price of the company’s common stock having been at least $1.00 per share for a minimum required number of consecutive business days. Separately, today (4/7) is the date that LiveOne has set for spinning out PodcastOne as its own publicly traded company.