Q4 2021 Entravision Communications Corp Earnings Call

Greetings and welcome to the Entravision Communications Corporation fourth quarter and full year 2021 earnings conference call. As a reminder, this conference is being recorded it is now my pleasure to introduce your host Kimberly <unk> of Investor Relations. Thank you you may begin.

Thank you operator, good afternoon, everyone and welcome to Entravision fourth quarter and full year 2021 earnings Conference call I hope, everyone is staying healthy and safe joining.

Joining me on the call today are Walter Ulloa, Chairman, and Chief Executive Officer, and Christine <unk> Chief Financial Officer.

Before we begin I must inform you that this conference call will contain forward looking statements that are subject to risks and uncertainties that could cause actual results to differ.

Please refer to Entravision SEC filings for a list of risks and uncertainties that could impact actual results.

This call is the property of Entravision Communications Corporation.

Any redistribution retransmission or rebroadcast of this call in any form without the express written consent of Entravision Communications Corporation is strictly prohibited.

Also this call will include non-GAAP financial measures. The company has provided a reconciliation of these non-GAAP financial measures.

To their most comparable GAAP measures in today's press release.

The press release is available on the company's website and was filed with the SEC on form 8-K.

In addition, all pro forma figure, including revenue operating expenses and consolidated adjusted EBITDA noted throughout the prepared remarks include contributions of Entravision Cisneros Interactive media Donuts and 365 digital in the prior year period.

I will now turn the call over to Walter Ulloa, Chairman and Chief Executive Officer.

Thank you Kimberly and good afternoon, everyone. We appreciate you joining us for Entravision as fourth quarter and full year 2021 earnings call.

2021 as a transformational year for entravision through organic growth strategic partnerships and acquisitions, we continue to develop our business beyond traditional TV and radio broadcasting we have become a leading global media marketing services and technology company, serving technology and media platforms and advertising clients around the <unk>.

World, we have a talented experienced and energetic team professionals in over 30 countries with the expertise and resources to continue to grow entravision business into the future.

I'm also pleased to announce that our board of directors has approved a new share repurchase program of up to $20 million of our common stock. The board also approved a cash dividend for the first quarter of 2022 to two and a half cents per share payable to shareholders on March 31 2022.

Now, let's review Entravision is consolidated results for the fourth quarter of 2021 net.

Net revenue for the fourth quarter totaled $233 9 million up 36% year over year on a pro forma basis revenue increased 21% over the fourth quarter of 2020.

Growth during the fourth quarter was largely driven by our digital segment as well as from improvements in our core television and audio businesses.

Consolidated adjusted EBITDA totaled $32 9 million for the fourth quarter up 1% year over year, excluding $12 8 million in net political AD related cash flow in the fourth quarter 2020, adjusted EBITDA increased 65% year over year in the fourth quarter 2021.

Moving beyond the quarter, our full year results were even more impressive for the year consolidated net revenue reached an all time record and totaled $760 2 million up 121% over 2020 free cash flow also reached an all time record and totaled $78 7 million up 83% over two.

Thousand 'twenty consolidated adjusted EBITDA totaled $88 million in 2021, an increase of 46% over the prior year period.

Importantly, even as our topline continued to grow we maintained our lean cost structure as Christian will discuss in his remarks, we have retained many of the cost reductions we put in place at the beginning of the pandemic. Our continued focus on expense management has helped drive our incredible EBITDA and free cash flow.

Now, let's take a look at our segment performance, starting with digital which is our largest segment and comprised 76% of our total revenue in the fourth quarter for the quarter digital revenue totaled approximately 177 5 billion up 69% compared to the prior year period on a pro forma basis digital revenue increased 40%.

Compared to the fourth quarter 2020 for the full year of 2021 digital revenue totaled $555 3 million up 288% over 2020, our digital segment growth during the fourth quarter and the year was driven by the excellent performance of Entravision, Cisneros interactive and semantics or global mobile programmatic.

And DSP user acquisition business.

Also contributing to our growth were our more recent acquisitions of media Donuts, serving the southeast Asia market and 365 digital a leading marketing services in commercial digital partnership business based in South Africa.

As I mentioned earlier Entravision is now a global digital enterprise. Our digital segment serves over 1800 clients each month across 30 countries with campaigns running in more than a 120 countries spanning five continents.

Entravision Cisneros interactive digital commercial partnership business has a unique capability to execute very large digital AD campaigns on Facebook and Spotify throughout Latin America compared to the United States. Latin America is still in the early stages of digital advertising and marketing growth, but showing impressive industry growth and potential.

Due to its unique market position and the demand for local digital AD solutions Entravision Cisneros interactive revenue grew 95% in 2021 as compared to the prior year.

As I noted we are also seeing strong performance for our Entravision media Donuts and Entravision 365 digital business units with media Donuts Entravision provides services across eight countries in southeast Asia, and with 365 digital we serve the broader South African market, we've been able to leverage the local teams with these business units to generate globe.

Synergies to help advertisers to reach audiences and consumers in these markets.

In addition to our digital commercial partnership businesses programmatic digital services have also helped drive our growth semantics, our proprietary DSP business based in Barcelona, Spain has been a cornerstone of our programmatic digital services. Since 2018, there are a few companies in the world that offer demand side platform services like semantics.

<unk> has developed a highly competitive offering in part due to a favorable competitive landscape and the efficiency transparency and performance of the platform spanning the demonstrated strength in the gaming Fintech and mobile delivery industries to mention a few and we continue to strengthen our staff with expertise in these categories.

With a strong understanding of the mobile gaming market semantics has been setting new monthly revenue records statics revenue increased 120% in the fourth quarter of 2021 compared to the prior year, even with this record performance. We're at the very beginning of our expansion in mobile gaming and the growth opportunity ahead of us is tremendous.

This mobile users grew at a compounded rate of 25% since 2019 with gaming representing 40% of that growth along with gaming Fintech and delivery have also become top focus areas for somatic and entravision.

Now, let's turn to our television segment, which comprised 17% of revenue for the fourth quarter.

Television revenue was $40 2 million in the fourth quarter down 20% compared to the prior year period, primarily due to a decrease in political AD revenue.

Excluding $11 1 million in political AD spend in the fourth quarter 2020, and $400000 of political spend in the fourth quarter of 2021 core TV advertising increased 2% national advertising revenue increased 4% in local advertising revenue declined 1% year over year, when comparing the fourth quarter 2021.

Total TV revenue with pre Covid fourth quarter 2019 results TV improved 9%.

For the full year TV revenue was down 5%, excluding political revenue. However, TV finished up 11% compared to 2020.

In terms of advertising categories, the auto category and in particular, new car sales continue continue to face supply chain pressures, while auto AD sales were down 30% in the fourth quarter year over year. Many of our clients have recently indicated to us that they anticipate some improvement in auto spending in the second half of 2022.

Offsetting auto declines services were up 8% and travel and leisure were up 92% compared to last year's same period media grocery restaurants and product brands also grew in the fourth quarter from the previous year.

We're also looking forward to the return of political AD spend this year and tremendous local TV markets are situated in the states where political message messaging to Latino voters continues to be a top priority for both parties as.

As well as special interest groups. In addition, with California, considering legalizing sports betting it could be a very robust year for political ad spend.

One last comment about our television segment as we've previously discussed on December 31, 2021, we ended our Univision affiliations in the D C Orlando and Tampa markets. We entered anticipate some impact to the TV segment topline and operating cash flow as a result of the loss of these affiliations. However, the.

Growth of our digital segment, along with the anticipated strength in political advertising spend this year is expected to more than offset this loss in revenue and operating cash flow in 2022.

Finally, let's turn to our audio segment, which comprised the remaining 7% of fourth quarter revenue.

Audio web audio revenue totaled $16 1 million for the fourth quarter consistent with the year ago period, excluding political spend of $3 million in the fourth quarter of 2020 and $200000 of political spend in the fourth quarter of 2021 core audio revenue increased 20% versus the fourth quarter of 2020, when comparing the fourth quarter of <unk>.

'twenty, one with a pre COVID-19 to fourth quarter 2019 results audio grew 16% on a full year basis audio revenue improved 25% when compared to 2020 national advertising revenue increased 28%, while local advertising revenue was up 24% year over year.

Execution across our audio visit was strong the segment's cash flow generation during the fourth quarter alone exceeded that of the full year 2019 gross margin of the auto audio segment was also a record and totaled 36% in the fourth quarter.

Services retail travel and leisure restaurants product brands Telecom and media all delivered strong double digit growth for audio division in the fourth quarter of 2021 versus the prior year period in short I cannot be prouder of attributions performance in 2021, and we believe that we have created significant momentum for 2022.

Before I speak further I will turn the call over to Chris Young our CFO to further discuss our fourth quarter 2021, as well as provide our first quarter 2022 pacings Chris. Thanks.

Thanks, Walter and good afternoon, everyone as Walter discussed revenue for Q4, 2021 totaled $233 9 million an increase of 36% from the fourth quarter of 2020 for the year revenue totaled a record $762 2 million and represented a 121% increase over the $344 million.

We generated in 2020 for our digital segment revenue totaled $177 5 million in the fourth quarter up 69% year over year and up 40% on a pro forma basis as compared to Q4 of 2020 for.

For the year digital revenue totaled $555 3 million and represented a 288% increase over the $143 3 million and digital revenue generated in 2020.

On a pro forma basis for our various acquisitions digital revenue for the year grew 80%.

For our television segment total revenue was $40 2 million in the fourth quarter down 20% year over year, excluding political core AD revenue was up 2% year over year.

Retransmission revenue for the quarter totaled $9 million, which was up 2% year over year for the year TV revenue was up $146 8 million, which represented a 5% decline over the prior year, excluding $22 6 million of political advertising in the prior year core television revenue increased by 11% over the prior year.

Lastly for our audio segment revenue totaled $16 1 million in the fourth quarter consistent with the prior year period, excluding political core audio revenue was up 22% over Q4 of last year.

For the year audio revenue totaled $58 million, which represented a 25% increase over 2020.

Now, let's turn to expenses direct operating expenses totaled 33 million for Q4, 2021 up 3% from $31 9 million in Q4 of 2020.

Excluding Entravision Cisneros interactive media Donuts, and 365 digital direct expenses were flat year over year.

SG&A expenses were $15 1 million for the quarter, an increase of 8% compared to $14 million in the year ago period.

Excluding Entravision Cisneros interactive media Donuts, and 365 digital SG&A expenses were down 5% compared to the prior year quarter.

Finally, corporate expenses increased by 21% to total $11 2 million for the quarter compared to $9 3 million in the same quarter of last year. The primary driver of corporate expense increases was an increase in noncash stock based compensation expense.

Consolidated adjusted EBITDA totaled $32 9 million for the fourth quarter up 1% from $32 6 million in the prior year period for the year consolidated adjusted EBITDA totaled $88 million up 46% from $60 4 million in 2020.

Free cash flow as defined in our earnings release was $30 9 million in the quarter or a conversion rate of 94% of adjusted EBITDA compared to $28 6 million in the fourth quarter of last year.

For the year free cash flow was $78 7 million, an all time record up 83% over $43 million generated in the prior year with a conversion rate of 89% of total adjusted EBITDA very high cash flow conversion in both digital and audio segments helped drive the strong conversion rate during the quarter.

Earnings per share for the fourth quarter were <unk> <unk> compared to <unk> 24 per share in the same period last year. The decline is primarily due to an $8 $2 million increase in the fair value of contingent consideration, which is the amount we owe the sellers of Entravision Cisneros interactive due to the significantly improved performance since.

We acquired it along with contingent consideration for other transactions. Excluding this one time charge plus an additional onetime noncash impairment charge for the cancellation of a contract earnings per share were <unk> 15.

For the year 2021 earnings per share were <unk> 33, compared to a <unk> loss per share in 2020 exclude.

Excluding the onetime fair value contingent charge and the one time impairment charge earnings per share were <unk> 44.

Cash paid for income taxes was <unk> 6 million for the fourth quarter compared to $2 2 million in the same quarter of last year for the year cash paid for income taxes totaled $4 1 million in 2021 compared to $7 7 million paid in 2020.

Net cash interest expense was $1 6 million for the fourth quarter compared to $1 3 million in the same quarter of last year.

Cash capital expenditures for Q4 totaled $1 6 million, bringing our full year capital expenditures to $5 8 million down from $9 1 million in 2020.

Turning to our balance sheet cash and marketable securities as of December 31, 2021 totaled $185 1 million total debt was $212 million net of $75 million of cash and marketable securities on the books, our total leverage as defined in our credit agreement was 156 times at the end of the fourth quarter.

Net of total cash and marketable securities. Our total net leverage was 0.31 times.

Onto our pacings for the first quarter of 2022 as of today revenue from our digital segment is pacing plus 52% over the prior year factoring in Entravision Cisneros Interactive media Donuts and $3 65 digital revenue generated in Q1 of 2021, our digital segment on a pro forma basis.

Pacing plus 39%.

Our television segment is pacing minus 16% over the prior year period with core TV advertising, excluding political book, thus far in the quarter pacing at a minus 18% as Walter noted, we do expect our television revenue to decline in 2022 from the loss of three of our Univision affiliations.

That said, we more than make up for any television revenue decline with our digital segment performance lagged.

Lastly, our audio segment is pacing at plus 7% over the prior year period with core audio excluding political booked thus far in the quarter pacing at a plus 6%.

All in our total revenue compared to last year is pacing at a plus 32% on a pro forma basis. Our total revenue is currently pacing at plus 24% over last year with that I'll turn the call back over to Walter Walter.

Thanks, Chris as you can see from our pacings for the first quarter Entravision business remains on an upward track, we are a leading global advertising media and AD Tech solutions organization that connects brands and advertisers on platforms like Facebook, Spotify, Tictoc, Twitter and Univision with audiences and consumers and growth economies around the world.

We are excited about the enormous opportunities. These are connected consumers bring to thousands of global companies and we are investing in the future of mobile connected consumers.

At the same time, we've expanded our digital services and offerings that we've also expanded our geographic footprint in Latin America Southeast Asia and Africa. These are massive addressable markets, whether it's the digital consumer has yet to be fully engaged and where entravision has a strong early mover advantage.

With the transformation of our business and overall go to market strategy, we believe that our value proposition for both our advertising clients and our investors has grown even stronger linear TV and audio remain core contributors to entravision overall performance.

While our digital businesses will drive strong growth going forward, we have positioned ourselves to partner with some of the largest most innovative digital companies today that concludes our prepared remarks I want to thank you again for your continued support of Entravision, Chris and I would like to open up the call to your questions operator.

Thank you.

Like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question queue. You May press star two if he would like to remove your question from the queue.

For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star he is.

Our first question is from Michael Kaplinsky with Noble financial Please proceed.

Thank you well first off congratulations on your quarter and quite.

Quite frankly, you beat almost well every segment that expectation that I had so great.

Great job.

A couple of questions regarding your lots of your affiliate agreements.

Just can you talk a little bit about maybe mitigating factors.

Your pacing data for T V is actually better than what I was looking for.

My estimate for Q1, so I was just wondering where there are offsetting items and in in that you had in terms of mitigating those revenues losses that you can talk about first.

First of all.

Michael.

Thanks for your remarks by the way so some mitigating factors, we do have programming up and running we still have the stations in the market. We just lost the affiliation. So right now we've got some independent programming thats running on those stations and that's going to generate right now about it.

About $1 million or $5 in cash flow on an annual rate.

Those are somewhat temporary arrangements, we are still looking for something that's a bit more attractive, but thats the mitigating factor to that.

<unk>.

Gotcha, Okay, and Chris can you give us a sense of what the expense outlook is going to look like particularly for.

Television and and maybe your digital businesses as well I know that you're you have you're showing very strong revenue growth for digital but can you kind of give us a sense of what how how we should think about margins in <unk>.

So for sure so for T V.

You should think about our total operating expenses for Q1 to be down low to mid single digits.

Radio expenses should be around flat.

And for digital all in this is before Cogs, My new colleagues as a big ticket item, but before Cogs.

Should look for digital to be right around the high single digit to maybe 10%. So obviously a higher growth business.

Got you and can you also talk a little bit about you know obviously, there's a lot of geopolitical issues have you seen any advertising impact them from.

What's going on out there or any advertisers pocket you know.

About being a little concerned what are you seeing in just in the sense of.

What youre hearing from advertisers.

Hi, Michael it's Walter and by the way. Thank you again for the comments you made.

Earlier in the.

Call.

I haven't seen any.

The impact on our business.

As a result of the international conflict.

That's basically the summary.

Very little I would say no impact so far.

And we will continue to monitor it and see.

Things developing.

At all of those.

Pretty stable on our end.

It's a terrific that you guys are generating such large free cash flow as well and now you have this building cash balance can you give us a sense of uses of cash your appetite for acquisitions, the current market environment for acquisitions.

Obviously, you have a share repurchase authorization as well, but just kind of like what your thoughts are in terms of allocation of capital.

Well continue to seek a strategic accretive.

Businesses that complement what we already own and operate so that'll be that.

Certainly.

The guidance or our strategy going forward.

But other than that that's.

That's really all I can tell you you mentioned the stock purchase program.

Buyback program and also our dividend, which we announced.

<unk>.

But that's that.

Summarizes my comments, Chris No yeah, you've got the new buyback program that shows that we see nothing but the strength in green lights for the upcoming year, we've got a lot of confidence in the business.

And to the extent that.

We continue to look for opportunities on the acquisition front.

Most of our work is focused on.

And you guys have to be immensely frustrated with the stock price trading at six and a half times enterprise value to cash flow.

Obviously trading below radio companies trading below that of television company, then significantly below that the digital companies.

What what do you think investors are missing here at this point do you think that they just haven't caught up to the story of your digital transition or what are your thoughts about the current stock price well I think if you by the way we agree with your comments on the stock price it sounds like a good idea for buyback.

Alright, so hence the stock buyback program, but.

I lost my train of thought sorry, what was the question.

We're talking about they are.

Disconnect with the stock price and what do you think.

Our vision is that cut it short.

I think historically when you say entravision, everyone thinks TV radio broadcast and I think that's what we're stuck with as far as our reputation and we're pivoting the business as we speak you'll see that in the numbers, we're attracting a different investor base, but we're right smack in the middle of that transition and I think that transition is going to take time with investors and Thats what were due.

We're going to be much more proactive on the on the stock circuit with presentations getting the word out getting on the road non deal Roadshows just to kind of get the message out that we are a completely different company than we went through three years ago, just to add to Chris's comments, Michael I mean, we're transforming the business as we commented.

<unk>.

In our remarks.

And where it's a transition hurry period, so it's going to take little more time for investors too.

To understand our strategy and certainly our growth story, but we continue to post the kind of growth that we did last year and we.

We had a.

Very strong fourth quarter.

All of our businesses performed well our digital.

<unk>.

Exceptionally well our radio is.

Couldnt perform is performing better than ever so we're really pleased with the with the work we're doing there. It's a result of.

Maintaining a retaining the the costs and cut backs that we made are in.

In 2020, and also we have Chris <unk>.

Oversees national sales and leading that.

That unit for us and he's done a terrific job with his team of growing national sales and network sales for our radio business. So.

And then.

<unk>.

You heard Chris is pacing.

Report and we're pleased with the way our first quarter shaping up.

We think it's going to be a great year.

Well, congratulations again and good luck to you guys. Thanks, Thanks, Mike Thanks, Michael.

Our next question is from James Dix with Industrial Capital Research. Please proceed.

Hi, Good afternoon, guys I just wanted to talk first about some.

Big picture stuff on digital.

It's been going through the the S. One that Alex group five over the past quarter and raised a couple.

Just bigger picture questions I thought you might have addressed on the call you know first of which when you look at the overall digital segment. I mean do you have any rough I think you've indicated that Facebook is your biggest partner certainly persist narrows as is but now you've made some other acquisitions.

Any rough sense of what the revenue mix is by your major partners for your biggest partners for that segment and are there any big expectations for that mix to change over the next year you know what.

What would be the dynamics for that.

Well.

I'll address this I think the first part of the question, which is our biggest partner and that would be in our yeah.

Sure.

Commercial digital.

The partnership business and that would be Facebook.

Of all the partners that we.

And we associated with including the <unk>.

Twitter tick tock, Spotify et cetera.

And do we think anything will change.

I mean like I said, we're certainly pleased with the way.

The year started.

Yes every quarter will be different but right now we're very positive about.

Not only are our fourth quarter, which gave us considerable momentum.

Into Q1, but also what we had in the rest of the quarter. So.

I hope I answered your question.

Yeah Yeah.

We're also working on.

Partnerships broadening out those partnerships in different regions and Thats a work in progress. So that will also change the mix a little bit as we go forward. Good point, we as you know we just we.

Just announced.

Our partnership with Rockwood, Mexico, we think thats going to be a certainly.

Story for for our digital business and we've got another partnership that's been inked, but we're not at a point to announce it yet but.

So that's also.

The work in progress.

Okay.

Ala for example indicates that Facebook is their biggest partner, but it's not quite 50% of their revenue with me is it safe to say that it's more for you.

I suppose it's more than 50% for you.

Yes.

Okay Stephanie.

Yes.

Okay, Great and then.

James.

James I, just wanted to add that.

We have three.

Digital businesses in our in our suite of digital products and the first is our U S. Digital vision provide digital solutions to primarily medium to small businesses and our broadcast markets.

Division had a great great year.

<unk>, which is the core of our own lab performance.

Business.

Our proprietary DSP technology.

Another fantastic year for or I should say, a fantastic quarter fourth quarter for four semantics and it's off to a great great start in Q1, So we expect.

Great results from from <unk>. This year and then of course are our commercial.

Partnership business healthcare.

With Facebook Spotify kicked off.

And others, So that's performed well and throughout.

2021 in Q4 and now into 2022.

Okay great.

And just shifting a bit following up on the geopolitical issues.

Is it safe to say that at least internationally.

Bulk of your revenue comes from Latin America, you know once you're outside of the U S. As opposed to to Europe I don't know a 365 digital as your newest one then you have media doughnuts, but.

It might be helpful for investors to have a little bit better sense of your revenue mix in terms of the major reasons, you know Asia Europe , if there isn't a Latin America, just as we kind of go through this year.

The majority of our digital business does come from Latin America.

As you know.

Other.

265 digital are all growing.

At a great pace as well as Sematic so.

We just want to make sure that everything is growing.

On an upward.

Track and Thats, what we see right now, yes, first and foremost you've got Latin America secondarily got the Southern Asia Pacific Rim.

And then everywhere else.

Particularly <unk>.

Is it safe to say you have minimal revenue exposure in Europe .

Yes, yes.

We have our that's where our <unk> business is baked in Barcelona, but thats pretty far from.

Western Europe , the conflict where in Western Europe , Yes.

Okay and.

And then one last one on digital.

Just looking at the what Alex is disclosed I mean.

They seem to be getting a fair amount of margin expansion.

You know.

EBITDA margin expansion at least even though they are but you seem to be a larger business than you I mean, what type of margin expansion.

Or just margin trajectory do you think we should be seeing.

You know now that you have all your units under the same you know under the fold.

How should we be thinking about that kind of over the course of a year or two.

You know what are the dynamics in the margins do you think sure. What we finished up for 2021 digital margins were right at 7% and as revenue scales, you should see that 7% move into the eight eight and a half and maybe even 9% range depending on how revenue scale.

And do you think that could happen over the next year or two.

I do yes.

Okay great.

And then just on the rest of the business one thing Chris did the pacing numbers that gave TV for T. They included velocity affiliations. They do Walter that right. That's right. They do any rough sense as to what the pacings would be if you kind of excluded those affiliation changes and just looked at the rest of the group.

Excluding.

Excluding the loss stations, we were looking at a plus four so the core business is healthy. It's just the loss of those stations Kris that hole that you're in for TV. The TV, yes, yes, yes.

Okay great.

And then for retransmission revenue.

Any outlook, what we should be looking out for the year.

Just just as the whole pay TV industry continues to work through you know pressure on subscribers and things like that.

Yes, retransmission revenue for the year finished out at $37 million.

For 'twenty two for the year that will probably drop by one or $2 million, mainly being driven by the loss of subs. That's just what's happening today.

Okay great.

And then one last one just in terms of your corporate expense how.

How should we be thinking about kind of a steady state corporate is it going to be kind of slightly up from last year and then.

This timing.

<unk> com will once again be kind of a fourth quarter item or how should we be thinking about that.

Corporate expense for the year, you should think about it up low single digits.

And really the driver there again.

Talking about.

Noncash comp in the fourth quarter had that not been their corporate expense would've been down three points. So.

But think about the growth in the low single digits.

Okay. So low single digits off what you printed for the year.

Yes.

Okay.

Okay, great. Thanks, Thanks very much.

Thanks James.

Yeah.

Our final question is from Chris Sakai with singular research. Please proceed.

I'm in for Lisa Springer.

I just had two or three questions.

Could you comment on which platform partners are currently the most important contributors to digital AD revenues.

And what you see as the opportunities to both add new partners and grow revenues from existing partners.

Well I commented earlier Chris.

Chris Chris that.

Chris.

Our number one partner in terms of revenue growth.

As Facebook, but that said we have.

Partnerships with.

With Spotify with Tic Toc.

Twitter and those are all.

Those partnerships are also growing quite nicely, but Facebook is the biggest.

Okay.

Okay.

Great and then do you have any opportunities for new partners.

We do I mentioned Roku earlier and.

We're working on another partnership that we should be able.

Two an ounce.

Probably in the second quarter.

But we are continuing to to develop new partnerships and.

And find ways to continue our revenue growth and momentum.

Okay great.

With 2022 being an election year, what size impact on political AD spending have you seen in the past mid term elections.

And do you have any sense of AD spending during this cycle will be higher than in the past.

We think it's going to be higher.

Sure.

Internally, we have a goal of $11 million of political.

But.

I think there's a good chance it could go past that.

One of the key.

Markets with California.

As you May know, California is in the process of deciding where they have legalized gambling is going to be on the online gambling, that's going to be on the ballot. This known this November so we expect a lot of.

Resources.

<unk> invested.

Invested into.

To that particular.

Political measure in California.

Okay great.

And then.

I know you've sort of mentioned about acquisitions.

Are we like.

And you guys are looking for additional acquisitions.

But but are these new acquisitions going to target new geographic markets.

Or are they going to focus more on expanding your footprint in existing markets.

Probably both.

New geographic markets and.

And then adding to.

Our existing market coverage.

Okay.

Well thanks for the answers.

Thank you.

We have reached the end of our question and answer session I would like to turn the conference back over to Walter the yellow for closing comments.

Thank you operator, thank you again for joining us today and for your support everyone. We look forward to sharing our progress with you at the upcoming Deutsche Bank, Guggenheim and noble capital markets Investor conferences in March and April and then again on our first quarter call earnings call in May Thank.

Thank you.

Thank you. This does conclude today's conference you may disconnect. Your lines at this time and thank you for your participation.

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Okay.

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