Q2 2024 Cumulus Media Inc Earnings Call

Mary Berner: As anticipated during our last earnings call, the second quarter advertising environment continued to be challenging. Consistent with the pacing guidance we provided, Q2 revenue finished 2.5% below last year.

Mary Berner: As anticipated during our last earnings call, the second quarter advertising environment continued to be challenging. Consistent with the pacing guidance we provided, Q2 revenue finished two and a half percent below last year. However, our unrelenting focus on areas of the business that are in our control helped us mitigate the impact of soft demand to deliver 25.2 million of EBITDA, and excluding costs related to the exchange offer, generate 8.3 million of cash from operations.

During our last earnings call second quarter advertising environment continued to be challenging.

Consistent with the pacing guidance, we provided Q2 revenue finished two 5% below last year. However.

Mary Berner: However, our unrelenting focus on areas of the business that are in our control helped us mitigate the impact of soft demand to deliver $25.2 million of EBITDA and, excluding costs related to the exchange offer, generate $8.3 million of cash from operations. We also made meaningful progress in key priority areas during the quarter. Specifically, toward our goal of driving outsized growth from digital revenue streams, we grew revenue in our strategically critical digital marketing services, or DMS, business by 24%. In the area of expense management, we reduced fixed costs by $4 million, further improving our operating margin.

However, our unrelenting focus on areas of the business that are in our control helped us mitigate the impact of soft demand to deliver $25 2 million of EBITDA and excluding costs related to the exchange offer generate $8 $3 million of cash from operations.

Mary Berner: We also made meaningful progress in key priority areas during the quarter, specifically. Toward our goal is driving outside growth from digital revenue streams, we grew revenue and are strategically critical digital marketing services for DMS business by 24 percent. In the area of expense management, we reduced fixed costs by 4 million, further improving our operating leverage. And with respect to fortifying our balance sheet, we completed the previously announced exchange offer and ADL-upsizing, actions that, importantly, extended our maturity to 2029 in attractive terms. And we bought that small portion of our sub debt which expires with 2026.

We also made made meaningful progress in key priority areas during the quarter, specifically toward our goal of driving outsized growth from digital revenue streams. We grew revenue and are strategically critical digital marketing services or Dms business by 24%.

In the area of expense management, we reduced fixed costs by 4 million further improving our operating leverage and with respect to fortifying our balance sheet. We completed the previously announced exchange offer an ABL upsizing actions that importantly extended our maturities to 2029 at attractive terms and we bought back in.

Mary Berner: And with respect to fortifying our balance sheet, we completed the previously announced exchange offer and ABL upsizing, actions that, importantly, extended our maturities to 2029 at attractive terms. And we bought back a small portion of our sub-debt, which expired in 2026. Starting with revenue, in aggregate, our digital businesses, which now account for 19% of our total revenue, continue to grow, increasing 5% year over year. Digital marketing services, again, led the way with strong growth, driven in part by the investments that we've been making to expand our digital sales force and accelerate the rollout of Cumulus Boots, our portfolio of digital presence products.

Small portion of our sub debt, which expire through 2026.

Mary Berner: Starting with revenue in aggregate, our digital businesses, which now account for 19 percent of our total revenues, continue to grow, increasing 5 percent year over year. Digital marketing services, again, led the way, with strong growth driven in-park by the investments that we've been making to expand our digital sales force and accelerate the role that our community do, our portfolio of digital presence products. That growth on the heel of similar increases last quarter also reflects our focus on creating integrated audio and digital marketing solutions that provide impressive results for our clients. On average, our campaigns outperform industry vent by more than 25 percent across 15 key business categories.

Starting with revenue in aggregate, our digital businesses, which now account for 19% of our total revenue continued to grow increasing 5% year over year.

Digital marketing services again led the way with strong growth driven in part by the investments that we've been making to expand our digital sales force and accelerate the rollout Cumulus.

Our portfolio of digital presence products.

Mary Berner: That growth, on the heels of similar increases last quarter, also reflects our focus on creating integrated audio and digital marketing solutions that provide impressive results for our clients. On average, our campaigns outperform industry benchmarks by more than 25% across 15 key business categories. Our differentiated go-to-market strategy, centered on sales reps fully embedded in their communities, is another key contributor to our success. Having feet on the street allows us to understand and capitalize on the unique set of circumstances that individual customers face.

That growth on the heel of similar increases last quarter also reflect our focus on creating integrated audio and digital marketing solutions that provide impressive results for our clients on average are campaigns outperform industry benchmark by more than 25% across 15 key business category.

Mary Berner: Our differentiated go-to-market strategy centered on sales, we're actually fully embedded in our community is another key contributor to our success. Having feet on the street allows us to understand and capitalize on the unique set of circumstances that individual customers face. For example, in Kansas City, our local DMF team recognized that a local specialty grocery chain was under siege from new stores opened by a couple of large national brands. The team created and launched an integrated audio and digital campaign that targeted the competitor's shoppers within a five-mile radius of the storage using special pricing and brand messaging.

Our differentiated go to market strategy centered on sales reps fully embedded in their communities is another key contributor to our success.

Having feet on the street allows us to understand and capitalize on unique set of circumstances that individual customer space for.

Mary Berner: For example, in Kansas City, our local DMS team recognized that a local specialty grocery chain was under siege from new stores opened by a couple of large national brands. The team created and launched an integrated audio and digital campaign that targeted the competitor's shoppers within a five-mile radius of the stores using special pricing and brand messaging. Only two weeks in, the campaign has massively exceeded the client's targeted metrics and, better yet, has generated sales increases of as much as seven percent in the stores owned by a very happy new client.

Speaker Change: For example, in Kansas City, our BNS team recognized that a local specialty grocery chain was under siege from new stores opened by a couple of large national brands.

Speaker Change: The team created and launched an integrated audio and digital campaign, the target of the competitors' shoppers within a five mile radius of stores using special pricing and brand messaging only two weeks in the campaign has massively exceeded the client's targeted metrics and better yet has generated sales increases of as much as 7% in the stores owned.

Mary Berner: Only two weeks in, the campaign has massively exceeded the client's targeted metrics, and better yet, has generated sales increases of as much as 7 percent in its doors owned by a very happy new client. Our ability to integrate this type of local insight into DMF campaigns across all markets, all of our markets is a significant advantage for us. Against competitors who are trying to sell to an out-of-market location, we're also benefiting from our ability to expand our relationships with existing radio-owned clients to add DMF to their five. First of Q2 last year, we've increased the number of legacy radio clients to now purchase DMF from us by 20 percent.

Speaker Change: By a very happy to meet with clients.

Mary Berner: Our ability to integrate this type of local insight into BMS campaigns across all of our markets is a significant advantage for us against competitors who are trying to sell from an out-of-market location. We're also benefiting from our ability to expand our relationship with existing radio-only clients to add BMS to their lives. Compared to Q2 last year, we have increased the number of legacy radio clients who now purchase DMS from us by 25%. Overall, the results of our approach are evident.

Speaker Change: Our ability to integrate this type of local insights into Dms campaigns across all markets. All of our market is a significant advantage for us against competitors, who are trying to sell from an out of market locations.

We're also benefiting from our ability to expand our relationships with existing radio only clients to add dms to their sites.

Speaker Change: Versus Q2 last year, we've increased the number of legacy radio clients, who now purchased Dms from us by 25%.

Mary Berner: Overall, the results of our approach are evidence. Our customer count is growing up 20% over year. We're seeing highs in customer retention, a 9% improvement year, year, and average digital campaign order size for customers growing as well up 3%. Most importantly, given our strong set of products, feed on the street sales capabilities, industry-leading campaign performance, and proven success at both developing new customers and converting radio-owned customers to DMF's radio, our upside continues to be tremendous. Turning to our other digital revenue streams, podcasting revenue increased in the quarter, representing the fourth consecutive quarter of year-over-year growth, while streaming revenue declined, reflecting the previously mentioned exploration of a fixed-rate sales contract.

Speaker Change: Overall, the results of our approach are evident or.

Mary Berner: Our customer count is growing, up 20% year-over-year. And we're seeing highs in customer retention, a 9% improvement year-over-year. And average digital campaign order size for customers is growing as well, up 3%. Most importantly, given our strong set of products, seat-on-the-street sales capabilities, industry-leading campaign performance, and proven success at both developing new customers and converting radio-only customers to DMS plus radio, our upside continues to be tremendous. Turning to our other digital revenue streams, podcasting revenue increased in the quarter, representing the fourth consecutive quarter of year-over-year growth, while streaming revenue declined, reflecting the previously mentioned expiration of a fixed-rate sales contract.

Speaker Change: Our customer count is growing up 20% year over year.

Seeing highs in customer retention, a 9% improvement year over year and average digital campaign order size for customers growing as well up 3%.

Speaker Change: Most importantly, given our strong set of products feet on the street sales capabilities industry, leading campaign performance and proven success at both developing new customers and converting radio only customers to Dms plus radio or upside continues to be tremendous.

Speaker Change: Turning to our other digital revenue streams pod testing revenue increased in the quarter, representing the fourth consecutive quarter of year over year growth, while streaming revenues declined reflecting the previously mentioned exploration of a fixed rate sales contract.

Mary Berner: Despite that, because we are able to better manage and optimize the monetization of our streaming impressions, which we've grown 25%, we remain confident that taking back sales responsibilities for our station streaming inventory is a smart, long-term move.

Mary Berner: Despite that, because we are able to better manage and optimize the monetization of our streaming impressions, which we've grown 25%, we remain confident that taking back sales responsibility for our station's streaming inventory is a smart, long-term move. On the broadcast radio front, our national broadcast advertising businesses, which consist of national spot and network revenue streams, together make up approximately 50% of our total annual broadcast revenue. While the national ad environment remains challenging overall, we did experience areas of improvement with positive national trends across a number of categories, including insurance, retail, and telecom.

Speaker Change: Despite that because we are able to better manage and optimize the monetization of our screaming impressions, which we've grown 25% we remain confident that taking back sales responsibility for our stations streaming inventory as a smart long term move.

Mary Berner: On the broadcast radio front, our national broadcasts advertising businesses, which consist of national spots and network revenue streams, together make up approximately 50% of our total annual broadcasts revenue. While the national ad environment remains challenging overall, we did experience areas of improvement with positive national trends across the number of categories, including insurance, retail, and telecom. Additionally, advertiser demand for live sports continues to be very strong. For example, revenue for the NCAA Men’s and Women’s Basketball Championships both grew during the quarter, with the latter reaching all-time revenue highs. Further, we saw significant interest in our syndicated updates covering the summer gains in Paris with strong free bookings.

Speaker Change: On the broadcast radio fronts, our national broadcast advertising businesses, which consist of national spot and network revenue streams together make up approximately 50% of our total annual broadcast revenue.

Speaker Change: While the National AD environment remains challenging overall, we did experienced areas of improvement with positive national trends across a number of categories, including insurance retail and telecom.

Mary Berner: Additionally, advertiser demand for live sports continues to be very strong. For example, revenue for the NCAA Men's and Women's Basketball Championships both grew during the quarter, with the latter reaching an all-time revenue high. Further, we saw significant interest in our syndicated updates covering the summer games in Paris, with strong pre-booking.

Speaker Change: Additionally, advertiser demand for live sports continues to be very strong.

Speaker Change: For example revenue for the <unk> men's and women's basketball Championships, both grew during the quarter with.

Speaker Change: The latter reaching all time revenue highs.

Speaker Change: We saw significant interest in our syndicated updates covering the summer games in Paris with strong pre bookings in fact, we are on pace to deliver triple the revenue we did some of the games two years ago.

Mary Berner: In fact, we are on pace to deliver triple the revenue we did from the games two years ago. However, other categories, such as financial services, recruiting, and home improvement, remain depressed, with advertisers citing the difficult macro and interest rate environment as significant obstacles to their spending. We remain hopeful that we will see their budgets improve once rates begin to decrease. But for now, the national advertising outlook remains uncertain. With respect to local spots, year-over-year revenue performance was similar to one down four percent.

Mary Berner: In fact, we are on pace to deliver triple the revenue we did in the games two years ago. However, other categories such as financial services, recruiting, and home improvement remain depressed, with advertisers citing the difficult macro and interest rate environment and significant obstacles that are spending.

Speaker Change: Other categories, such as financial services recruiting and home improvement remain depressed with advertiser, citing the difficult macro and interest rate environment, a significant obstacles to their spending.

Mary Berner: We remain hopeful that we will see their budgets improve once rates begin to decrease, but for now, the national advertising outlook remains uncertain. With respect to local spots, year-over-year revenue performance was similar to one down 4%. High interest rates continued to be a factor, with both auto dealers, our second largest local ad category, and the financial category, including banks, credit unions, and mortgage brokers suffering from low consumer demand, causing them to pull back further on their ad spend and the decline we've already seen in the first quarter. Notably, we've been able to offset some of the clients in these categories by generating significant local spot revenue growth from clients to customers in multiple markets.

Speaker Change: We remain hopeful that we will see their budgets improve once rates begin to decrease but for now.

Speaker Change: National advertising outlook remains uncertain.

Speaker Change: With respect to local spot year over year revenue performance was similar to Q1 down 4%.

Mary Berner: High interest rates continue to be a factor with both auto dealers, our second largest local ad category, and the financial category, including banks, credit unions, and mortgage brokers, suffering from low consumer demand, causing them to pull back further on their ad spends and declines we've already seen in the first quarter.

Speaker Change: High interest rates continue to be a factor with both auto dealers are second largest mobile AD category and the financial category, including banks credit unions and mortgage brokers suffering from low consumer demand, causing them to pull back further on their AD spend and the declines we have already seen in the first quarter.

Mary Berner: Notably, we've been able to offset some of the declines in these categories by generating significant local spot revenue growth from clients who have customers in multiple markets. We started focusing on this customer category several years ago and have now developed considerable expertise in creating and executing multi-platform, multi-market campaigns to serve clients across all their locations. This product, which we call Beyond Home Market, has delivered excellent results, with Q2 multi-market local broadcast revenue up 65% year-over-year.

Speaker Change: Notably we've been able to offset some of the declines in these categories by generating significant local spot revenue growth from clients, who are customers in multiple markets. We started focusing on this customer category several years ago and have now developed considerable expertise in creating and executing multiple multi platform multi market cap.

Mary Berner: We started focusing on this customer category several years ago, and have now developed considerable expertise in creating and executing multiple platforms, multi-market campaigns to serve clients across their all their locations. This product, which we call Beyond Home Market, has delivered excellent results, with Q2 multi-market local broadcast revenue up 65% year-over-year.

Speaker Change: Pain to serve clients across their all their locations. This.

Speaker Change: This product, which we call beyond home market has delivered excellent results with Q2 multimarket local broadcast revenue up 65% year over year.

Mary Berner: Looking ahead, Q3 revenue is currently pacing down slightly, but our conversations with advertisers continue to be focused on when, not if, they're going to return to more typical spending levels. Of note, the current pacing includes only the political that's on the books at this point in time. With the change in the Democratic presidential candidate, and to the extent that certain states become more highly contested and previously expected, we may see some upside given our footprint in battleground states such as Pennsylvania, Wisconsin, Georgia, and Arizona.

Mary Berner: Looking ahead. Q3 revenue is currently pacing down slightly, but our conversations with advertisers continue to be focused on when, not if, they're going to return to more typical spending levels. Of note, the current pacing includes only the political that's on the books at this point in time.

Speaker Change: Looking ahead.

Speaker Change: Q3 revenue is currently pacing down slightly but our conversations with advertisers continued to be focused on when not if they're going to return to more typical spending levels of note. The current pacing includes only the political what's on the books at this point in time with.

Mary Berner: With the change in the Democratic presidential candidate and to the extent that certain states become more highly contested than previously expected, we may see some upside given our footprint in battleground states such as Pennsylvania, Wisconsin, Georgia, and Arizona. Moving to expenses, as always, we are highly focused on cost reduction. I noted earlier our Q2-6 cost reduction of $4 million, which brings our year-to-date total to $8 million on top of the $120 million of fixed costs that we've taken out from 2019 through the end of 2023.

Speaker Change: With the change in the Democratic presidential candidates and to the extent that certain states become more highly contested than previously expected. We may see some upside given our footprint in battleground states, such as Pennsylvania, Wisconsin, Georgia and Arizona.

Mary Berner: Moving to expenses, as always, we're highly focused on cost reduction. I noted earlier our 226 cost reduction of 4 million, which brings our year-to-date total to 8 million on top of the 120 million of fixed costs that we've taken out from 2019 through the end of 2023. These reductions significantly improve the company's operating leverage, which will drive EBITDA growth when ad demand picks up. They also help to offset investments in our digital businesses, where we've been expanding our sales force to target the expansive BMS growth opportunities. Notably, in Q2, we increase our digital sales force in a 6-second quarter, and we expect it to continue growing this part of the organization.

Speaker Change: Moving to expenses.

Speaker Change: Senses as always we are highly focused on cost reductions I noted earlier, our Q2 dollars fixed cost reduction of $4 million, which brings our year to date total to $8 million on top of the $120 million of fixed costs that we've taken out from 2019 through the end of 2023.

Mary Berner: These reductions significantly improve the company's operating lever, which will drive EBITDA growth when ad demand picks up. They also helped to offset investment in our digital businesses, where we've been expanding our sales force to target the expansive DMS growth opportunity. Notably, in Q2, we increased our digital sales force for the 6th and 2nd quarters, and we expect to continue growing as part of the organization.

Speaker Change: These reductions significantly improve the company's operating leverage which will drive EBITDA growth when AD demand picks up.

Speaker Change: They also help to offset investments in our digital businesses, where we've been expanding our sales force to target the expansive dms growth opportunity.

Speaker Change: Notably in Q2, we increased our digital salesforce for the sixth consecutive quarter and we expect to continue growing this part of the organization.

Mary Berner: We are similarly disciplined on capital allocations. As a reminder, since our 2018 emergency bankruptcy, we have prioritized organic growth, including in our digital businesses, leveraging the assets that we already have in place and third-party partnerships to steal expansion. What we didn't do was make highly dilutive acquisitions, un-economic podcast fields, and technology investments with no clear path to return on that investment. Instead, we walked away from many transactions that would boost profitless revenue in favor of a focus on earnings and cash generation metrics.

Mary Berner: We are similarly disciplined on capital allocation. As a reminder, since our 2018 emergence from bankruptcy, we have prioritized organic growth, including in our digital businesses, leveraging the assets that we already have in place and third-party partnerships to fuel expansion. What we didn't do was make highly dilutive acquisitions, uneconomic podcast deals, and technology investments with no clear path to return on that investment. Instead, we walked away from many transactions that would boost profitless revenue in favor of a focus on earnings and cash generation metrics.

Speaker Change: We are similarly disciplined on capital allocation.

Speaker Change: As a reminder, since our 2018 emergence from bankruptcy, we are prioritize organic growth, including in our digital businesses leveraging the assets that we already have in place and third party partnerships to fuel expansion.

Speaker Change: What we didn't do this make highly dilutive acquisitions uneconomic podcast deals and technology investments with no clear path to a return on that investment.

Speaker Change: Instead, we walked away from many transaction that will boost profit lift revenue in favor of a focus on earnings and cash generation metrics.

Mary Berner: To that point, our post-pandemic EBITDA recovery, free cash flow generation, and growth debt paid out have all been best among peers. We maintain these performance trends in the second quarter as we generated positive operating cash flow, adjusting for the transaction cost related to exchange, while also paying down a small portion of our remaining sub-dets that's due in 2026. As a reminder to investors, given the current leverage levels, our capital allocation priority will be to continue debt reduction.

Mary Berner: To that point, our post-pandemic EBITDA recovery, free cash flow generation, and gross debt paydown have all been best among peers. We maintained these performance trends in the second quarter as we generated positive operating cash flow, adjusting for the transaction cost related to exchange, while also paying down a small portion of our remaining sub-debt that's due in 2026. As a reminder to investors, given the current leverage levels, our capital allocation priority will be to continue debt reduction.

Speaker Change: To that point, our post pandemic EBITDA recovery free cash flow generation and gross debt Paydown have all been best amongst peers.

Speaker Change: We maintain these performance trends in the second quarter as we generated positive operating cash flow adjusting for the transaction costs related to the exchange while also paying down the small portion of our remaining stub debt that's due in 2026.

Speaker Change: As a reminder to investors given the current leverage levels, our capital allocation priorities priority will be to continue debt reduction.

Mary Berner: Before turning it over to Frank, I want to re-emphasize the importance of the financial flexibility and extended runway that we created. Since we emerged from bankruptcy, we reduced growth debt by approximately 50%, which put us in the position to successfully negotiate a refinancing of our capital structure, extend our debt maturities to 2029 on favorable terms, and, most crucially, increase the time we have to push through the economic choppiness and realize the value that we believe is inherent in the company. Cumulus has a strong set of assets, including a vast national platform that can reach audiences whenever and wherever they choose to listen, extensive feet on the ground, feet on the street, local sales capabilities, which allow us to walk products through the door in over 80 markets, premium programming across all genres with particularly exclusive assets in sports and news talk space, profitable and growing digital businesses, and an audio library filled with many millions of hours of relevant, engaging, and entertaining content, and a team with a strong track record of expense management and disciplined stewardship of capital.

Mary Berner: Before turning it over to Frank, I want to reemphasize the importance of the financial flexibility and extended runway that we have created. Since we emerged from bankruptcy, we have reduced gross debt by approximately 50%, which put us in the position to successfully negotiate a refinancing of our capital structure, extend our debt maturities to 2029 on favorable terms, and, most crucially, increase the time we have to push through the economic choppiness and realize the value that we believe is inherent in the company.

Speaker Change: Before turning it over to Frank I want to reemphasize the importance of the financial flexibility and extended runway that we created.

Speaker Change: Since we emerged from bankruptcy, we reduced gross debt by approximately 50%, which put us in the position to successfully negotiate a refinancing of our capital structure extend our debt maturities to 2029 unfavorable terms and most crucially increase the time, we have pushed through the economic choppiness.

Frank: And realize the value that we believe is inherent in the company.

Mary Berner: Cumulus has a strong set of assets, including a vast national platform that can reach audiences whenever and wherever they choose to listen, and extensive feet on the ground, feet on the street local sales capabilities that allow us to walk products through the door in over 80 markets. Premium programming across all genres, with particularly exclusive assets in the sports and news talk space, profitable and growing digital businesses, an audio library filled with many millions of hours of relevant, engaging, and entertaining content, and a team with a strong track record of expense management and disciplined stewardship of capital.

Frank: Cumulus has a strong set of assets, including a vast national platform that can reach audiences whenever and wherever they choose to listen.

Frank: Extensive feet on the ground feet on the street local sales capabilities, which allow us to walk products through the door and over 80 markets.

Frank: Premium programming across all genres, with particularly exclusive assets in sports and news talk space <unk>.

Frank: Profitable and growing digital businesses and audio library filled with many millions of hours of relevant engaging and entertaining clients entertaining content and a team with a strong track record of expense management and disciplined stewardship of capital.

Mary Berner: As we continue to execute against the tight set of priorities, we see many paths for maximizing the value of these assets on behalf of our shareholders. Courtesy of the time afforded by our recent refinancing, we have the breathing room to explore all these paths, despite an economic backdrop which remains challenged for now.

Mary Berner: As we continue to execute against a tight set of priorities, we see many paths for maximizing the value of these assets on behalf of our shareholders. Courtesy of the time afforded by our recent refinancing, we have the breathing room to explore all these paths, despite an economic backdrop which remains a challenge for now. With that, I'll turn the call over to Frank.

Frank: As we continue to execute against the tight set of priorities, we see many paths for maximizing the value of these assets on behalf of our shareholders.

Frank: Courtesy of the time afforded by our recent recent refinancing we have the breathing room to explore all these paths. Despite an economic backdrop, which remains challenged for now with that I'll turn the call over to Frank Frank.

Mary Berner: With that, I'll turn the call over to Frank. Frank?

Frank: Thank you, Mary. G2 revenue was $205 million, down 2.5% year-to-year, consistent with the Payton guidance from our last call, while EBITDA was $25.2 million. As Mary mentioned, our DMS business continued to be our highest growth area, with an increase of 24% to provide more new customers, improved customer attention, and higher average campaign order size. From a category perspective, insurance, retail, and telecom were our top performance key national categories, while our weakest were financial services, recruiting, and home improvement. In local spot, home products, travel, and auto supplies were our best performing categories, while financial, auto, and attainment lagged.

Frank: Mary, G2 revenue was $205 million, down 2.5% year-over-year, consistent with the patient guidance from our last call, while EBITDA was $25.2 million. As Mary mentioned, our DMS business continues to be our highest growth area, with an increase of 24 percent. We've invited more new customers, improved customer retention, and higher average campaign order size. From a category perspective, insurance, retail, and telecom were our top performing key national categories, while our weakest were financial services, recruiting, and home improvement. In local spots, home products, travel, and auto supplies were our best performing categories while financial, auto, and entertainment lagged.

Frank Frank: Thank you Mary.

Frank Frank: Q2 revenue was $205 million down two 5% year over year.

Frank Frank: System, where the patient guidance from our last call, while EBITDA was $25 2 million.

Frank Frank: As Mary mentioned, our Dms business continue to be our highest growth area with an increase of 24% driven by more new customers improve.

Mary: Retention and higher average campaign order size.

Mary: From a category perspective insurance retail and telecom, where top performance key national categories, while our weakest where financial services recruiting and home improvement.

Speaker Change: Local spot foam products travel.

Speaker Change: And auto suppliers of our best performing categories, while financial auto.

Frank: We generated $1.9 million in political revenue in the second quarter versus $1.2 million in the same period of 2020. Total expenses in the quarter were essentially flat year over year, which included higher variable expenses associated with the growth of our DMS business. It should be noted that in Q2 2023, expenses benefited from a $2 million one-time reduction from an acquisition-related burnout. Excluding that impact, year-over-year expenses decreased by approximately $2 million, reflecting the benefits of our ongoing fixed-cost production initiatives.

Frank: We generated 1.99 of political revenue in the second quarter versus 1.2 million in the same period of 2020. Total expenses in the quarter were essentially flat year-over-year, which included higher variable expenses associated with growth of our DMS business. It should be noted in Q2 2023 expenses benefited from a $2 million or one-time reduction from an acquisition related to burnout. Excluding that impact, year-over-year expenses decreased by approximately $2 million, reflecting the benefits of our ongoing fixed-cost production initiatives. As Mary mentioned, we achieved 4 million of fixed-cost reductions during the quarter, in 8 million year-to-date, and we continue to focus on discipline cost actions to improve operating leverage, which will benefit a bit when the advertising environment recovers.

Entertainment lagged, we generated $1 9 million of political revenue in the second quarter versus $1 2 million in the same period of 2020.

Speaker Change: Total expenses in the quarter were essentially flat year over year, which included higher variable expense associated with growth of our Dms business.

Speaker Change: It should be noted in Q2 2023 expenses benefited from a $2 million onetime reduction from acquisition related earn out.

Speaker Change: Excluding that impact year over year expenses decreased by approximately $2 million, reflecting the benefits of our ongoing fixed cost reduction initiatives.

Frank: As Mary mentioned, we achieved $4 million of fixed-cost reductions during the quarter and $8 million year-to-date, and we continue to focus on disciplined cost actions to improve operating leverage, which will benefit when the advertising environment recovers. Turning to the balance sheet, we finished the quarter with $53.5 million in cash, excluding $16 million of costs related to the exchange offer. We generated $8 million of cash from operations.

Speaker Change: As Mary mentioned, we achieved $4 million of fixed cost reductions during the quarter and $8 million year to date, and we continue to focus on disciplined cost actions to improve operating leverage which will benefit EBITDA when the advertising environment recovers.

Frank: Turning to the balance sheet, we finished the quarter of 53.5 million of cash. Excluding 16 million of cost related to the exchange offer, we generated 8 million of cash from operations. We repurchased 0.5 million of stubbed debt than maturers in 2026, leaving a principal balance of approximately 24 million. As a reminder, with completion of our exchange offer, we extended maturities to 2029, reduced the principal amount of debt outstanding at maturity by approximately 33 million, secured attractive interest rates, maintained covenant-like terms, and increased our ABL facility availability by 25%. Since the transaction was not deemed an extinguishment of debt for accounting purposes, the principal reduction of 33 million was not immediately reflected on the balance sheet, so it will be amortized through the term of the debt.

Speaker Change: Turning to the balance sheet, we finished the quarter with $53 5 million of cash.

Speaker Change: Excluding <unk> $16 million of costs related to the exchange offer.

Frank: We repurchased $0.5 million of stub debt that matures in 2026, leaving a principal balance of approximately $24 million. As a reminder, with the completion of our exchange offer, we extended maturities to 2029, reduced the principal amount of debt outstanding at maturity by approximately $33 million, secured attractive interest rates, maintained covenant-like terms, and increased our ABL facility availability by 25%. Since the transaction was not deemed an extinguishment of debt for accounting purposes, the principal reduction of $33 million was not immediately reflected on the balance sheet but will be amortized through the term of the debt.

Speaker Change: We generated $8 million of cash from operations, we repurchased <unk> $5 million of sub debt that matures in 2026.

Speaker Change: A principal balance of approximately $24 million as.

Speaker Change: As a reminder, with the completion of our exchange offer we extended maturities to 2029 reduced the principal amount of debt outstanding.

Speaker Change: That maturity by approximately $33 million.

Speaker Change: Secured attractive interest rates maintained come in like terms.

Speaker Change: Our ABL facility availability by 25%.

Speaker Change: Since the transaction was not deemed an extinguishment of debt for accounting purposes. The principal reduction of $33 million was not immediately reflected on the balance sheet. It will be amortized through the term of the debt.

Frank: As such, this amortized, unamortized discount, which we found in the footnotes of our 10-K, will need to be excluded to arrive at the amount of debt owed. Taking up this discount, our debt owed at maturity is $642 million. Looking ahead, as Mary said, our capital allocation priority is to pay down debt. In addition, we are reducing our cap act's guidance for the year to 25 million from 30 million. And lastly, we do not expect to pay a material amount of taxes this year.

Frank: As such, this unamortized discount, which can be found in the footnotes of our 10-Q, will need to be excluded to arrive at the amount of debt owed. Taking out this discount, our debt owed at maturity is $642 million. Looking ahead, as Mary said, our capital allocation priority is to pay down debt. In addition, we are reducing our CapEx guidance for the year to $25 million from $30 million. And lastly, we do not expect to pay a material amount of taxes this year.

Speaker Change: As such this amortized unamortized discount, which can be found in the footnotes of our 10-Q, we will need to be excluded to arrive at the amount of debt owed.

Speaker Change: Taking out this discount discount or that one and maturity of $642 million.

Speaker Change: Looking ahead as Mary said, our capital allocation priority is to pay down debt.

Mary: In addition, we are reducing our capex guidance for the year to $25 million from $30 million in.

Frank: Turning to the third quarter, costs on parts of the advertising environment are improving. We're still considerable in certainty in the macro environment, which is causing many advertisers to hold back spending. As a result, the federal company revenue is currently piecing down slightly. As a reminder, in the last presidential election, we generated 5.8 million political revenue in the third quarter, which benefited from two contentious son-of-racist in Georgia.

Frank: Turning to the third quarter, while some parts of the advertising environment are improving, there's still considerable uncertainty in the macro environment, which is causing many advertisers to hold back spending. As a result, co-company revenue is currently pacing down slightly. As a reminder, during the last presidential election, we generated $5.8 million of political revenue in the third quarter, which benefited from two contentious Senate races in Georgia.

Mary: And lastly, we do not expect to pay material amount of taxes this year.

Speaker Change: Turning to the third quarter for some parts of the advertising environment or improving there is still considerable uncertainty in the macro environment, which is causing many advertisers to hold back spending.

Speaker Change: As a result total company revenue is currently pacing down slightly.

Speaker Change: As a reminder, in the law.

Speaker Change: Last presidential election, we generated $5 8 million of political revenue in the third quarter, which benefited from two contentious Senate races in Georgia.

Operator: With that, we can now open the line for questions. Operator. Thank you. If you would like to ask a question, please press star for the by one on your telephone keypad. If you would like to withdraw your question, please press star for the by two.

Operator: With that, we can now open the line for questions. Operator?

Speaker Change: With that we can now open the line for questions operator.

Operator: Thank you. If you would like to ask a question, please press star followed by 1 on your telephone keypad. If you would like to withdraw your question, please press star followed by 2. When preparing to ask your question, please ensure your device is unmuted locally. Our first question comes from Michael Kupinski with Noble Capital Markets. Your line is open, please go ahead.

Speaker Change: Thank you if you would like to ask a question. Please press star followed by one on your telephone keypad.

Operator: When preparing to ask your question, please ensure your device is unreaded locally.

Speaker Change: I would like to withdraw your question. Please press star followed by two.

Speaker Change: When preparing to ask a question. Please ensure your devices on mute locally.

Michael Kupinski: Our first question comes from Michael Kupinski with Noble Capital Markets. Your line is open; please go ahead. Thank you. Good morning, everyone. A couple of questions here. Regarding political, let's start there in the second quarter. It seems like it was a little lower than kind of path cycles, and it was wondering what your thoughts are about political to the balance of the year, especially now that we see Harrison race. Does that improve the political outlook, and if you can give this your color on political?

Speaker Change: Our first question comes from Michael Kaplinsky with Noble capital markets. Your line is open. Please go ahead.

Michael Kupinski: Thank you. Good morning, everyone. A couple of questions here regarding politics. Let's start there in the second quarter. It seems like it was a little lower than past cycles, and I was wondering what your thoughts are about the political outlook for the balance of the year, especially now that we see Harris in the race. Does that improve the political outlook, and if you can give us your color.

Michael Kaplinsky: Thank you good morning, everyone a.

Michael Kaplinsky: Couple of questions here regarding political let's start there.

Michael Kaplinsky: In the second quarter. It seems like it was a little lower than kind of past cycles and I was wondering.

Speaker Change: What are your thoughts are about political to the balance of the year.

Speaker Change: Now that we have.

C. Harrison: C. Harrison the race does that improve the political outlook and if you can give us your color on political.

Frank: Good morning, Mike. I'll take that. Our second quarter political compared to 2020 was actually higher, and I mentioned that in the script. It was about $700,000 higher, so $1.9 million versus $1.2 million. And the biggest driver there were SPACs.

Frank: Good morning, Michael. I'll take that. Our second quarter, political compared to 2020, was actually higher. And I mentioned that in the script. It was about $700,000 higher, so 1.9 million versus 1.2 million. In the biggest driver there, the biggest driver there were stacks. I'm sorry, packs that came in on the Republican Party side. But having said that, it was still a pretty low quarter. With regard to the balance of the year, spend political spending to take a little bit of the pause in the quarter, given the uncertainty and all the noise around the Democratic candidate.

Speaker Change: Good morning, Michael I'll take that.

Speaker Change: Our second quarter.

Speaker Change: Medical compared to 2020 was actually higher and I mentioned that in the script it was about.

Speaker Change: About $700000 higher so a $1 9 million versus $1 2 million.

Speaker Change: And the big the biggest driver there.

Speaker Change: The biggest driver there were sparks I'm sorry.

Frank: I'm sorry for the PACs that came in on the Republican Party side. But having said that, it was still a pretty low quarter. With regard to the balance of the year, political spending did take a little bit of a pause in the quarter, given the uncertainty and all the noise around the Democratic candidate, all signs we're hearing, particularly as races appear to be more competitive, that the dollars will be fairly significant. Having said that, and I mentioned this in our prepared remarks, we did benefit from two Georgia Senate races, which are not happening this year. And also, as a reminder, most of the money that we get in politics is really not on the presidential side but down ballot.

Speaker Change: <unk> that came in on the Republican Party side.

Speaker Change: But having said that it was still a pretty low quarter.

Speaker Change: With regard to the balance of the year.

Speaker Change: Spend political spending did take a little bit of a pause.

Speaker Change: The quarter give.

Speaker Change: Given the uncertainty.

Frank: All signs were here, particularly as races appear to be more competitive that the dollars will be fairly significant. Having said that, and I mentioned this in our prepared remarks, we did benefit from two Georgia Senate races, which are not occurring this year. And also, as a reminder, most of the money that we get in political is really not in the presidential side, but down ballot.

Speaker Change: Of all the noise around the Democratic candidate.

All signs were here and particularly as races appear to be more competitive.

Speaker Change: The dollars will be fairly significant.

Speaker Change: Having said that.

Speaker Change: And I mentioned this in our prepared remarks.

Speaker Change: We did benefit from two Georgia Senate races, which are not occurring this year.

Speaker Change: And also as a reminder, most of the money that we get in political is really not on the presidential side.

Frank: Great. Thanks, Frank. On the network business, it was just wondering, in typical like as we get to the prospect of lower interest rates on, it seems like the network business typically in the past has always kind of started to show some significant improvement. It was just, you seem like you're the trends up here, I guess, that you might see some improvement that you're still cautious and was just wondering if you can kind of set the stage for what your expectations might be on the network business, get in the face of the prospect of seeing or interest rates.

Speaker Change: But.

Tom: But Tom element.

Frank: Typically, as we get to the prospect of lower interest rates, it seems like the network business, which has always kind of started to show some significant improvement, typically has already started. It was just, you seem like you're, the trends up here, I guess, that you might see some improvement, but you're still cautious, and I was just wondering if you could kind of set the stage for what your expectations might be for the network business in the face of the prospect of seeing lower interest rates.

Tom: Great. Thanks, Frank.

Speaker Change: The network business. So was just wondering your typical like as we get to the prospect of lower interest rates on it seems like the network business typically in the past is always kind of start to show some significant improvement there was.

Speaker Change: And you seem like you.

Speaker Change: The trends appear I guess.

Speaker Change: You might see some improvement that youre still cautious and was just wondering if you can kind of set the stage for what your expectations might be on the network business.

Speaker Change: The pace of the prospect of seeing.

Frank: That's a good question. So on the network. Let me talk about the network first in the second quarter. The network in the second quarter was lower than the first quarter, and we talked about some of that being due to the timing of March Madness. And as Mary mentioned in her prepared remarks with regard to demand for sports, the network will have a much better performance in the third quarter driven by sports. Now having said that, to your question.

Frank: That's a good question. So on the network, let me talk about the network first and the second quarter. The network in the second quarter was lower than the first quarter. And we talked about some of that was due to the timing of March Madness. And as Mary mentioned in her prepared remarks with regard to demand for sports, the network will be much better performance in the third quarter driven by sports. Now, having said that to your question, there's no question that the higher interest rates are holding back spending. There's a big question at this point, and we've seen this in other companies releasing earnings recently, whether or not Rage Coming Lower is going to be accompanied with weaker consumer demand, which is something that we have to deal with in terms of the macro environment.

Speaker Change: Our interest rates.

Speaker Change: That's a good question so on the network.

Speaker Change: Let me talk about the network first and the second quarter. The network in the second quarter was lower than the first quarter and we talked about some of that was due to the timing of March madness.

Speaker Change: And as Mary mentioned in.

Mary: Her prepared remarks with regard to demand for sports.

Speaker Change: Network will be much better performance in the third quarter driven by sports now having said that to your question.

Frank: There's no question that higher interest rates are holding back spending. But there's a big question at this point, and we've seen this in other companies releasing earnings recently, whether or not rates coming lower are going to be accompanied by weaker consumer demand, which is something that we have to deal with in terms of the macro environment. Having said that, we do expect that when rates come down in the past.

Speaker Change: There's no question that the higher interest rates is holding back spending.

Speaker Change: There's a big question at this point and we've seen this in other companies releasing earnings recently, whether or not.

Speaker Change: Rates coming LOE is going to be accompanied with weaker consumer demand, which is something that we have to deal with in terms of the macro environment.

Frank: Having said that, we do expect when rates come down, in the past, recreate itself in the future, that should go to all for all advertising demand, including the network.

Having said that.

Frank: , and John R.. .. .. ...

Speaker Change: We do expect when rates come down.

Speaker Change: Yes.

Speaker Change: Recreates itself in the future that that should bode well for all advertising demand, including the network.

Frank: In Frank, does that include the podcast business as well because it's kind of tied to the national advertising outlook? Can you just give us some thoughts there? Yeah, I can answer that. I think that's the same thing for the podcast business. We've had; we've said in the last quarter, we've seen a nice clip of listenership growth. And so what follows, of course, is advertising growth. We also, so what we've seen is a much stronger execution on our part of capitalized on the grow of the machine, huge surges from two shows that we have. They tend to be more tied to the direct response category, which has been soft for all the years.

Frank: And Frank, does that include the podcast business as well? Because I know that's kind of tied to the national advertising outlook. Can you kind of just give us some thoughts there?

Speaker Change: Yeah.

Speaker Change: And Frank does that include the podcast business as well because I know that's kind of tied to the national advertising outlook can you just give us some thoughts there.

Frank: Yeah, I can answer that. I think that's the same thing for the podcast business. You know, we've had, we said in the last quarter, we've seen a nice clip of listenership growth. And so what follows, of course, is advertising growth. So what we've seen is much stronger execution on our part to capitalize on the growth. We've seen huge surges from some key shows that we have. However, they tend to be more tied to the direct response category, which has been soft for all the same reasons. But because of the significant listenership growth, we anticipate we'll continue to grow that way.

Speaker Change: Yes, I can answer that.

Speaker Change: I think thats it.

Speaker Change: And the same thing for the potash segment.

Speaker Change: We've had we said in the last quarter, we have seen a nice clip.

Speaker Change: Listenership growth and so what follows of course is.

Speaker Change: Advertising growth we also.

<unk> is.

Speaker Change: Much stronger execution on our part of capitalize on the growth of this huge surges.

Speaker Change: Some key shows that we have.

Speaker Change: They tend to be more tied to.

Speaker Change: The direct response category, but.

Speaker Change: Which has been in software all the same reasons.

Speaker Change: But we're.

Speaker Change: Because of the significant listenership growth.

Frank: Thank you, my final question. I know that you're always a look at cost reductions and so forth. And we're just wondering; you already had some fixed cost reductions in the last quarter. It was wondering if you have identified any additional fixed cost reductions that we might see in the third quarter or the second half of this year. Mike, it's consistent with what we've said in the past. We wake up every morning trying to figure out how to generate revenues and be more efficient in the business. And each quarter gets tougher to reduce fixed cost, but we find a way to do it.

Frank: Thank you. My final question, I know that you always look at cost reductions and so forth, and I was just wondering, you know, you already had some fixed cost reductions in the last quarter. I was wondering if you have identified any additional fixed cost reductions that we might see in the third quarter or the second half of this year.

Speaker Change: Stable.

Speaker Change: Yes.

Speaker Change: Thank you My final question I know that you always look at cost reductions and so forth and was just wondering.

Speaker Change: Already had some fixed cost reductions in the last quarter I was wondering if you have identified any additional fixed cost reductions that we might see in the third quarter or for the second half of this year.

Mary Berner: Mike, consistent with what we've said in the past, you know, we wake up every morning trying to figure out how to generate revenues and be more efficient in the business. And each quarter gets tougher to reduce fixed costs, but we find a way to do it. And so at this point, we can't give you guidance on what that's going to be in the third quarter, but that's part of our DNA. And we'll continue to do that, not only in the third quarter but as we look for the rest of the year and going into next year.

Speaker Change: Okay.

Speaker Change: It's consistent with what we've said in the past we wake up every morning trying to figure out how to generate revenues and be more efficient from the business.

Mary Berner: And so at this point, I'm not going to, we can't give you guidance of what that's going to be in the third quarter, but that's part of our DNA. And we'll continue to do that not only in the third quarter, but as we look for the rest of the year, I'm going into next year. Yeah, and I would add that we can see if we look at, you know, at a regular basis, real estate costs and contract costs made to improve functions through technology, better process, et cetera. So, Frank, that we wake up and we think about cost reductions.

Speaker Change: And each quarter gets tougher to reduce fixed cost, but we find a way to do it and so.

Speaker Change: At this point, we can't give you guidance on what thats going to be in the third quarter, but thats part of our DNA and we will continue to do that not only in the third quarter, but as we look for the rest of the year and going into next year.

Melanie: Yes, I would add that Melanie <unk>, yes, yes, and I would just add that we continue to look at.

Melanie: On a regular basis real estate costs and contract costs.

Mary Berner: Yeah, and I would add that we continue to look at, you know, on a regular basis, real estate costs and contract costs, ways to improve functions through technology, better processes, et cetera. So, as Frank said, we wake up, and we think about cost reduction.

Melanie: Improved function through technology.

Speaker Change: Better process.

Speaker Change: Et cetera, those banks that we wake up.

Mary Berner: Thanks, Mary. Thanks for the color. That's all I have. Good luck, guys.

Michael Kupinski: Thanks, Mary. Thanks for the color. That's all I have. Good luck, guys.

Speaker Change: Think about costs.

Sure.

Speaker Change: Thanks, Mary Thanks for the color that's all I have good luck guys.

Patrick Scholl: Our next question comes from Patrick Scholl with Barrington Research. Your line is open. And please go ahead. Good morning. I just had a question about the, on the digital segment, you talked about streaming, rather than being down. I was just wondering if you could maybe talk about some of the challenges that you had in monetizing. I think you said that there was pressure and growth.

Operator: Our next question comes from Patrick Scholl with Barrington Research. Your line is open, please go ahead.

Okay.

Our next question comes from Patrick Sholl with Barrington Research. Your line is open. Please go ahead.

Patrick Scholl: Good morning. I just had a question about the digital segment. You talked about streaming revenue being down. I was just wondering if you could maybe talk about some of the challenges that you have in monetizing. I think you said that there was depression growth, and I was kind of wondering how, what sort of investments do you guys need to make in order to improve that monetization size?

Patrick Sholl: Good morning, I just had a question about the.

Speaker Change: On the digital segment, you talked about streaming.

Patrick Sholl: Revenue being down I was just wondering if you could maybe talk about some of the challenges that you had in monetizing I think you said that there was a compression growth in it.

Frank: I was kind of wondering how, what sort of investments you guys need to make in order to improve that monetization? Yeah, I can answer that. You know, as we said, the prepared remarks in 2023, we benefited from a favorable third party, six great ad sales contract for a portion of our radio stream station streaming inventory. So essentially what that means is we were outsourcing the monetization because we did a bad inventory. Because we didn't historically have the capability to do it ourselves. We now have those capabilities. So the contract reaches fires. And so what that will do is it will affect our streaming growth rates in the short term.

Speaker Change: Kind of wondering how.

Speaker Change: What sort of investments do you guys need to make in order to.

Speaker Change: And improve that monetization side.

Frank: I can answer that. As we said in the prepared remarks, in 2023, we benefited from a favorable third-party, six-rate ad sales contract for a portion of our radio station's streaming inventory. So essentially, what that means is we were outsourcing the monetization of that inventory because we didn't historically have the capabilities to do it ourselves. But we now have those capabilities. So the contract recently expired, and so what that will do is it will affect our streaming growth rates in the short term.

Speaker Change: Yes.

Yes.

Speaker Change: I can answer that as we said in our prepared remarks in 2023, we benefited from a.

Speaker Change: Favorable third party fixed rates AD sales contract for a portion of our radio screening patients' journey inventory. So essentially what that means is we were outsourcing the monetization because we didnt.

Speaker Change: Of that inventory because it didn't historically have the capability to do.

Speaker Change: No.

Speaker Change: We now have those capabilities.

Speaker Change: So the contract.

Frank: We do not expect that to continue. Taking back our station's streaming inventory was a smart move. And then also, you know, controlling it directly in the national marketplace gives us significant strategic advantages because we're able to bring our broadcast and streaming inventory to market together, so it's a much more seamless experience for advertisers and for agencies. So I think as we grow impressions, we're going to lap that contract, and you'll see some growth. So I think as we grow impressions, we're going to lap that contract, and you'll see some growth.

Frank: We do not expect that to continue. Taking back our station streaming inventory was the smartly. strategically, and it will be financially, because we wanted to be able to control our inventory and how are the sold and consumed. And then also, you know, controlling the directly in the national marketplace with just significant strategic advantages, because we're able to bring our broadcasts extremely inventory to market together, so it's a much more funerals experience for advertisers and for agencies. So I think as we grow in question, we're going to lap that contract, and yes, we've grown.

Speaker Change: Fire and.

Speaker Change: So what that will do it will affect our premium growth rates in the short term we.

Speaker Change: We do not expect that to continue.

Speaker Change: Taking back our specialty drilling inventory.

Speaker Change: The smart move.

Speaker Change: Strategically and it will be financially.

Speaker Change: Just wanted to be able to control our inventory and how it is sold in Brazil.

And then also controlling it directly in the national marketplace.

Speaker Change: Significant strategic advantages, if we're able to bring a broad set of screening inventory market together. So it's a much more seamless experience for advertisers and agencies.

Speaker Change: So I think as <unk>.

Frank: Okay.

Frank: Okay, and then on your digital marketing services business, I was just wondering if there were any specific verticals that you view as really key to your sales efforts and any investments that you would see as necessary to have a more tailored offering to those verticals.

Speaker Change: We grow impressions, we're going to lap that contract and you'll see some growth.

Frank: And then on your digital marketing services business, I was wondering if there are any specific verticals that you view as a really key tier sales efforts, and like any investment that you would be as necessary to have like a more tailored offering to those verticals. Yeah, I mean, we've developed in the 15 verticals that we mentioned, where we outperform the industry in the three benefits. In each one of those, we have a specific strategy and approach on the, you know, the top categories include automotive, for sure, H.U.A.C. in plumbing, hospitals, the top creeps, and home improvement.

Okay.

Speaker Change: And then on.

Speaker Change: Sure.

Speaker Change: Digital marketing services business I was just wondering if there are any specific verticals that you view as a really key to your sales efforts.

Speaker Change: Any investments that you would.

Frank: Yeah, I mean, we've developed in the in the 15 verticals that we mentioned, where we outperformed the industry in industry benchmarks, between 25% in each one of those. We have a specific strategy and approach for the top categories, which include Automotive, for sure, HVAC, and plumbing, hospitals, that's probably the top three, and home improvement. Actually, home improvement is number one. So each one of those is a specific go-to-market strategy and opportunity.

Speaker Change: It is necessary to have like a more tailored offering to those.

Verticals.

Speaker Change: Yes, I mean, we've developed.

Speaker Change: In the 15 verticals that we mentioned where we outperformed the industry.

Speaker Change: Three benchmark.

Speaker Change: 25 months and each one of those we have a specific strategy and approach.

Speaker Change: The top category.

Speaker Change: Good.

Frank: Actually, home improvement is number one. So each one of those is difficult to market strategy at that, an opportunity.

Speaker Change: Automotive for sure.

Speaker Change: In plumbing hospital.

Speaker Change: Our free in home improvement actually homophobia is number one so.

Frank: Okay. Thank you.

Speaker Change: So each one of those.

Speaker Change: The go to market strategy.

Speaker Change: And opportunity.

Operator: There are no more questions.

Operator: Okay, thank you. There are no more questions, and I'll turn it back over to the company for closing remarks.

Mary Berner: I'll now turn it back over to the company for closing remarks. Thanks, everybody. Appreciate your time. Enjoy the rest of the summer, and we'll see you next quarter. Thanks.

Speaker Change: Okay. Thank you.

Mary Berner: Thanks, everybody. I appreciate your time. Enjoy the rest of the summer, and we'll see you next quarter. Thanks.

There are no more questions I'll now turn it back over to the company for closing remarks.

Speaker Change:

Operator: Ladies and gentlemen, today's call has now concluded. We'd like to thank for your participation. You may now disconnect your lines.

Operator: Ladies and gentlemen, today's call is now concluded. We'd like to thank you for your participation. You may now disconnect your lines.

Speaker Change: Thanks, everybody appreciate your time and enjoy the rest of the summer and we'll see you next quarter. Thanks.

Speaker Change: Ladies and gentlemen, today's call is now concluded wed like to thank you for your participation you may now disconnect your lines.

Speaker Change: [music].