Q3 2024 Dolphin Entertainment Inc Earnings Call
Good afternoon, and thank you for standing by today's conference call will begin shortly please remain connected at this time and once again. Thank you for your patience today's conference call will begin shortly.
[music].
Speaker Change: Greetings and welcome to the Dolphin Entertainment third quarter 2024 earnings call.
Speaker Change: At this time all participants are in a listen only mode.
Speaker Change: A question and answer session will follow the formal presentation. If anyone should require operator assistance. During the conference. Please press star zero on your telephone keypad. Please note. This conference is being recorded I will now turn the conference over to your host James Carbonara with Hayden IR you may begin.
James Carbonara: Thank you operator, good afternoon, and thank you for joining us once again for Dolphin Entertainment's third quarter 2024 earnings call.
Before we begin I'd like to remind everyone that during the course of this conference call management May make forward looking statements within the meaning of the private Securities Litigation Reform Act of 1995.
James Carbonara: These statements are based on management's current expectations and beliefs and involve risks and uncertainties that could differ materially from actual events.
James Carbonara: Please refer to the cautionary text regarding forward looking statements contained in the earnings release published earlier today as well as the most recent SEC filings and reports.
James Carbonara: During the call today management will also discuss non-GAAP financial measures, including adjusted operating income or loss.
James Carbonara: The company believes that these will provide helpful information for investors.
James Carbonara: Reconciliations to the most comparable GAAP measures are provided in the earnings release.
Speaker Change: Now I would like to turn the call over at the below doubt Chief Executive Officer of Dolphin Bill. Please go ahead.
Speaker Change: Thanks, James and welcome everyone.
Speaker Change: Start by reviewing some of the key financial and operating highlights from our third quarter of 2024, and then meritor will provide a more detailed financial overview before we open it up for Q&A.
Speaker Change: So starting with the financials. We are pleased to report strong financial results for the quarter with significant quarter over quarter and year over year growth in both revenue and adjust adjusted operating income.
Q3 revenue grew 24, 5% year over year to $12 7 million driven by strong performance across all operating segments adjusted operating income to improve greatly reaching $492000 compared to an $850000 adjusted operating loss in Q.
Speaker Change: Through 2023.
Speaker Change: Year to date revenues through nine months has increased 26, 6% to $39 4 million, leading to $1 4 million of adjusted operating income a significant improvement from the $2 7 million adjusted operating loss in the same period of last year the.
Speaker Change: The company remains on track to exceed $50 million in revenue and achieved positive adjusted operating income for the full year 'twenty 'twenty 2024.
Speaker Change: Getting a key milestone.
Speaker Change: I'll now turn to updates from our subsidiaries starting with 42 West we've maintained our dominant position in the entertainment PR. Our team delivered exceptional results in major industry events, including a substantial presence at the Toronto International Film Festival, and managing the Venice Film Festival Premier of Tim Burton's highly anticipated.
Speaker Change: You don't choose beetle juice.
Speaker Change: At San Diego comic Con, we represented an unprecedented 13 major entertainment clients.
Speaker Change: <unk> our position as the go to agency for tent pole properties, our clients receive 60 Primetime Emmy nominations, and we've expanded our footprint to the internet and gaming space representing industry leaders like crunchy role in Touhou anime Expo.
Speaker Change: As discussed on our Q2 call.
Speaker Change: The completed in Q3 Dolphin acquired L Communications, a leading PR agency focus on social and environmental impact with offices in Los Angeles, and New York now operating in conjunction with 42 West L brings 16 years of expertise and impact P. R and deepens our capabilities into one.
One trillion dollar impact investing industry.
Speaker Change: Team is already integrated seamlessly with our existing PR firms and agencies strengthening our ability to serve clients who want to leverage their influence for positive change.
Speaker Change: Turning to shore fire media the team had a landmark quarter in music, we're particularly proud of our work with Dave Matthews band Cool and the gang in M. C. Five all of whom are inducted into the rock and roll Hall of Fame.
Speaker Change: This achievement underscores our ability to support artists across their entire career journey and even though it's a Q4 event that we'll talk more about on our 10-K earnings call in March I'd be remiss, if I didn't highlight the press release, we put out on Tuesday of this week sharing that short by our clients earned 26 nominations for 2025 Grammys.
Speaker Change: One for Jacob call you for album of the year and then breaking news I was just told that we signed a new client that had two Grammy nominations himself, bringing short fires totalled 28 Grammy nomination campaigns to handle this year simply phenomenal as always go Matt Hanks. The Dor continues to demonstrate excellence in hospitality and lifestyle.
Speaker Change: P. R. A highlight with securing the prestigious three star review for the from the New York Times for bungalow.
Speaker Change: I've been there and it is fantastic.
And our innovative work with newman's own on their pay what you want Pizza program, which shows our ability to drive meaningful consumer engagement.
Speaker Change: Digital Department of our Influencer marketing agency has shown remarkable growth securing 137, new talent signings. This year, we successfully expanded our brand edit influencer showroom to New York fashion week in September.
Which marked an important milestone in our fashion and lifestyle vertical and our I know our team is one coming up during art Basel, which is very exciting is that one will also mark the first time the showroom comes to Miami.
Speaker Change: And special projects or celebrity booking agency, we maintained our long standing partnership with Wall Street Journal magazines Innovator Awards at the Museum of modern Art last month, and our work with the Academy museum's annual Gala helped to honor industry luminaries all raising over $11 million.
For the motion picture Academy.
That team.
Speaker Change: And the museum that team is especially busy with three major events. This week alone for example, including the store opening for L. B M H happening Tonight in Manhattan.
Speaker Change: These results reflect our team's expertise creativity and ability to deliver impact across multiple sectors.
Speaker Change: Turning to Dolphin ventures, our division that secures ownership stakes in promising businesses or products, primarily in content creation consumer products and live experiences. We're open to various opportunities that these three sectors remain our focus as they best aligned with where our marketing expertise increases the likelihood of <unk>.
Speaker Change: Success.
Speaker Change: Starting with content creation, our IMAX partnership maintained strong momentum with a $2 $6 million Q3 payment from licensing the streaming rights to the Blue Angels. It film success has exceeded our expectations leading to planned expansion into prestigious institutional theaters across the country starting in January and is there a.
Speaker Change: Minder, we expect the film to play those theatres for years to come providing an annuity for both dolphin in IMAX.
Speaker Change: With this powerful foundation and fall development season underway, we anticipate announcing our next major Park project in partnership with IMAX at.
Speaker Change: Also we expect to be able to announce shortly additional distribution partnerships for staple Gen. Our first celebrity partnered spirits venture developed with culinary icon Rachael Ray <unk>.
Speaker Change: Crafted in New York's Catskills region, the Genesis earn double gold and 96 points at the New York International Spirits competition staple Gin is now available at restaurants and retail outlets throughout New York State through southern Glazers wine and spirits, a fellow Miami based company and the nation's largest distributor with 26 billion in revenue.
Speaker Change: Last year in operations in 44 states.
Speaker Change: With those updates on the ventures front alternative to headlines from the month of October 1st we announced the launch of always Alpha a groundbreaking initiative that marks our strategic entry into the women's sports management space.
Speaker Change: We believe that always alpha is the first ever comprehensive management firm dedicated exclusively to women's sports adventure is led by an extraordinary team starting with Allyson Felix.
Speaker Change: The most accomplished U S track and field athlete in history, that's a pretty good start alongside her brother and business partner West Felix and Distinguished Sports Executive cause I should put the timing of this launch aligns perfectly with the explosive growth we're witnessing in women's sports our research and market analysis indicate this is a significantly undervalued sector.
Speaker Change: With immense growth potential always Alfa represents more than just a new revenue stream. Its a strategic advancement that we believe will be a major growth driver for our company in the years ahead.
What sets always alpha apart as its holistic approach to talent management.
Speaker Change: Not just representing athletes we're building a platform that supports women we're simultaneously competing at the highest levels, serving as brand ambassadors building businesses and driving social change bids of course aligns perfectly with dolphins existing expertise and celebrity management brand development Influencer.
Speaker Change: Getting an impact P R.
Speaker Change: Synergies with our current operations are substantial our entertainment marketing infrastructure, which has delivered remarkable success. This year thousands of Influencer campaigns through the digital Department alone is immediately complementary.
Speaker Change: Also the market leading position of our entertainment PR firms driving 24, Oscar nominations 60, I mean nominations and 28 Grammy nominations for our clients create the black broad platform.
Speaker Change: To increase awareness through pop culture events, providing an immediate competitive advantage for always alphas roster.
Strong early interest from both potential clients and brand partners. The unique positioning of always I'll put in the market has already attracted attention from major advertisers who are increasingly focused on engagement in the women's sports space.
Speaker Change: From a financial perspective always offer represents a compelling opportunity.
Speaker Change: Women's sports market has demonstrated remarkable momentum is probably anybody is aware listening into this call with viewership sponsorship revenue and media rights valuations all showing strong upward trajectories for women's sports looking ahead, we expect all these alpha to contribute to our revenue mix through several.
Speaker Change: Channels first we'll make talent management fees similar to our Influencer division from a growing roster of elite athletes broadcasters and coaches starting with Allison herself.
Speaker Change: Meanwhile, brand partnership revenues, including strategic consulting for brands entering the women's sports space third, we anticipate being able to develop content and have other production opportunities and fourth and finally, we know that there will be potential opportunities to create exciting ventures together.
With all these alpha we believe we are positioning dolphin at the forefront of what we expect to be one of the most dynamic sectors in sports and entertainment for years and years to come now.
Speaker Change: Now turning to our newest alliance formed at the end of October with a loaded AI a breakthrough removed that reshaped, how we safeguard safeguard our clients digital presence.
Speaker Change: Now, it's probably not news to anyone that in today's day and age where digital manipulation, that's become increasingly sophisticated we've taken decisive action, our new collaboration with Loady AI equips, our full network spanning our entertainment marketing powerhouses like short fire 40 to us the door the digital department and our newest company, we just spoke of.
Speaker Change: Always alpha with state of the art digital protection tools.
Why did we partner with loading well the numbers tell a compelling story loaded technology sweeps through nearly half a billion digital assets daily monitoring major social networks web platforms and inappropriate content sites when the unauthorized content appears their system achieves removal in under a day with a success rate exceeding 95 per se.
Speaker Change: Simply put we've just we're not aware of anything else in the market with that level of reach and success.
Speaker Change: Our celebrity clients there.
Speaker Change: There are frequently targets. So this move accomplishes several key objectives for the dolphin companies. It strengthens our core service by offering excuse me it strengthens our core service offering by adding robust digital protection.
Speaker Change: It opens fresh revenue channels through enhanced security services and most importantly, it launches dolphin into the AI technology sphere, setting the stage for future innovations and opportunities and entertainment and marketing.
Speaker Change: What excites US most is the collaborative nature of this partnership.
Not just implementing existing solutions, we're actively developing next generation tools tailored to our clients' evolving needs. We think of it as building Tomorrow's digital safety net while addressing today's challenges.
Speaker Change: Like always alpha the timing couldn't be better as deep fakes digital impersonation and under authorized content and become more sophisticated our clients being more than traditional PR and marketing support to manage their public persona. They need comprehensive digital protection and we're now uniquely positioned to provide it also this part.
Speaker Change: <unk> isn't just about the fact, it's about innovation.
Speaker Change: AI technology is still evolving we know it has the potential to revolutionize a wide variety of aspects and entertainment and marketing through this alliance we're positioning dolphin.
Speaker Change: The responsible leader in entertainment for the ethical use of AI at the intersection of creativity and technology ready to shape, the future of digital content and protection.
Speaker Change: Now usually after a ventures updates I will conclude and pass it over to mirror, but first I want to reiterate what we stated in our recent shareholder letter and also in my presentation at the LD Micro conference a couple of weeks ago that we believe that our current market cap starkly undervalues the truth, Spain.
Speaker Change: The true strength and prospects of our unique portfolio lets just look again at what has been accomplished so far in just the past 12 months, we achieved record revenues in Q4 of last year, and then broke that record again in Q1, our IMAX co production Blue Angels was a standout hit with a full recoupment.
Speaker Change: Of our production investment and well over 1 million and the ROI already achieved and received with a long revenue tail ahead.
Also in May we successfully launched Rachael Ray's award winning staple Gen. In July we acquired the profitable L communications to add impact PR to our capabilities and as we just highlighted most recently in October we announced the launch of always Alpha our management firm exclusively focused on the rapidly growing multibillion.
Speaker Change: Billion dollar women's sports market.
Speaker Change: All in the last 12 months.
Speaker Change: Now these milestones along with the cost and they consistently stellar work by our industry, leading entertainment marketing companies position Dolphin for continued success.
Speaker Change: As noted at the top of the call through nine months, our revenue was up over 26% year over year, we anticipate our revenue this year to exceed $50 million.
Speaker Change: And with over $39 million in revenues through the first nine months and with Q4 typically being our strongest quarter, we believe it'll be very difficult for us to not hit this goal.
Speaker Change: Thus, we are trading at approximately one quarter of one times the expected revenue of the current year.
Speaker Change: We also anticipate achieving.
Speaker Change: Positive adjusted operating income for full year 2024, and again after reporting positive adjusted operating income up 1.4 million through the first nine months and with Q4, historically being our best quarter. We believe it would be very difficult for us to not hit this goal.
Speaker Change: That's an understatement.
Speaker Change: More than 20% of year over year growth excuse me more than 25% year over year revenue growth, while achieving positive adjusted operating income. We believe these results set us apart for many of our micro cap peers. Looking ahead, we see immense potential in Influencer marketing women's sports and innovative ventures like staple gin and the new loaded.
Speaker Change: AI partnership we just discussed.
Speaker Change: In my view, our current market cap starkly undervalues, the true strength and prospects of our unique portfolio.
Speaker Change: The more we believe theres a significant discrepancy between our present market capitalization and the fundamental worth of our assets I believe we were significantly undervalued and as CEO I am putting my money, where my mouth is by actively increasing my personal stake in D. L. P M with $100000 of open market purchases in the past year alone and I plan to buy.
Speaker Change: More here before the end of the year I'm confident the market will soon better appreciate dolphins robust financial health and exciting growth catalysts on the horizon as we continue to create long term value for shareholders.
Speaker Change: That in mind, one last piece before I turn it over to mirror to.
Speaker Change: I wanted to share the.
The announcement of the upcoming launch of our new shareholder rewards program in partnership with ticker same company that works with Starbucks and Whirlpool and others.
Set to debut in January of 2025 and this.
Speaker Change: New shareholder rewards program will offer our shareholders exclusive access to D. L. P M client products invitations to unique events and other perks celebrate our community support and connection to adopt two dolphins dynamic ventures stay tuned for more details as we get closer to January it's our way of saying. Thank you to those who are a part.
Speaker Change: Of our Dolphin journey.
Speaker Change: So thank you for your continued support of Dolphin Entertainment I'll now turn it over to <unk> to walk through the financials and then we'll open it up for Q&A.
Thank you Bill I'll now review, our Q3 2024 financial results in more detail total revenue for the third quarter was $12 $7 million, representing an increase of 21, 5% or minus third quarter of 2023.
Speaker Change: Operating expenses were $28 million, including approximately $600000 depreciation and amortization.
Speaker Change: $5 million goodwill impairment of $150000 of acquisition transaction costs related to our acquisition of Al Communications, and a $1 $3 million right out of the midnight theater notes receivable.
Speaker Change: Parents to operating expenses of $12 $3 million in Q3, 2023 that included an impairment of intangible assets of approximately $300000 and $500000 depreciation and amortization.
Speaker Change: Net loss for the three months ended September 32024, and $8 $7 million include the depreciation amortization impairment charges acquisition transaction cost and the notes receivable write off to Scott and the operating loss of Mark plus interest expense in the practice.
Speaker Change: Let me $500000. This compares to a net loss of $3 $9 million in Q3 of 2023 that includes the depreciation amortization and impairment costs detailed in the operating loss of Mark plus interest expense of approximately $600000.
Speaker Change: I guess that operating income a non-GAAP measure improved to $500000 in Q3 2024 from an adjusted operating loss of $800000 in Q3, 2023.
Speaker Change: Loss per share was <unk> 80 per share based on $10 9 million weighted average shares outstanding for both basic loss per share and fully diluted loss per share for the three months ended September 32024.
Speaker Change: For the three months ended September 32023 loss per share was 55 cents based on $7 1 million weighted average shares outstanding both basic and fully diluted loss per share.
Speaker Change: Cash and cash equivalents were $6 $6 million as of September 32024, compared to $7 6 million as of December 31, 2023.
Speaker Change: I will now ask the operator to open the phone lines for questions. Operator would you. Please poll for questions.
Speaker Change: Certainly at this time, we will be conducting a question and answer session. If you would like to ask a question. Please press star one on your telephone keypad.
Speaker Change: Confirmation tone will indicate your line is in the question queue.
Speaker Change: You May press Star two if you would like to remove your question from the queue.
Speaker Change: For participants using speaker equipment and may be necessary to pick up your handset before pressing the star keys.
Speaker Change: One moment, please while we poll for questions.
Yeah.
Speaker Change: As a reminder, if you would like to ask a question. Please press star one.
Speaker Change: Your first question for today is from Allen Klee with Maxim.
Allen Klee: Hi, Hello can you hear me.
Yes, I hear you.
Speaker Change: Oh, hi, sorry, I'm, having phone problems.
Congrats strong quarter.
Speaker Change: Uh huh.
Speaker Change: Yes.
Speaker Change: [laughter].
Speaker Change: The jump in revenue this quarter year over year, how well could you kind of rank some of what some of the bigger factors were that you would point to.
Speaker Change: Sure Yeah, let's see.
Speaker Change: Yeah.
Speaker Change: 24% year over year revenue growth comes from.
Speaker Change: To multiple to the factors as you might anticipate.
Speaker Change: And certainly.
L Wood: Special projects and L Wood.
L Wood: <unk> play a factor in that.
L Wood: Al had a particularly strong quarter.
L Wood: Going into an election year I've learned is good for the impact PR business.
L Wood: As as many people are looking to create additional awareness of the good work that they're doing and many of the.
Our clients received some funding from whether it be city local or state or government.
L Wood: The federal government agencies.
L Wood: Also though.
L Wood: The legacy PR firms of shore fire in the door.
L Wood: And 42 West had good quarters.
L Wood: And and increases.
L Wood:
Is 40 to US has had a strong.
L Wood: Long a long stretch of of having strong results and and shore fire in the door are while they also have as well that we're seeing.
L Wood: Momentum with them through a Q1 to Q2 to Q3 of this year.
L Wood: So I would say.
L Wood: Some.
L Wood:
L Wood: Serge with special projects, and and L, but also organic growth and some.
L Wood: The legacy PR businesses were probably the primary drivers were getting stronger each quarter at cross selling and Ah I think it's just going to continue to show in the quarters ahead.
L Wood: Right.
Speaker Change: Thank you and then the digital Department.
Speaker Change: What items.
Speaker Change: I know that this is the fourth quarter's going to be the seasonally strong quarter, but I'm just in terms of you've been doing a lot. There was there any other things you wanted to highlight of.
Speaker Change: Kind of new business, Youre doing and cross selling.
Speaker Change: Yeah, Yeah, I'm very proud of the work done by the team or the digital Department. We've we've done a lot of work with that company this year and.
Speaker Change: Growing.
Speaker Change: You know I think that first of all the digital apartment excuse me has three main operating divisions, you know talent management brand campaigns and the events Division.
Try and talk about them equally.
Speaker Change: But the talent departments gone through it you know.
Speaker Change: Strong growth as we've you.
Speaker Change: <unk> hired quite a few new talent managers in the past six months.
Speaker Change: The skin care group. The Dermatology group has has been a real highlight.
Speaker Change: We're investing in additional talent managers in that group and we see a lot of growth with professional.
Speaker Change: Sure.
Speaker Change: Advice, if you will or or content from professionals online so that would definitely be something to look for in 2025.
I've mentioned before that in our ventures group, we'd like to have a skin care product in market by the end of 2025.
Speaker Change: That's been a that's been a real source of upside for us.
Speaker Change: The brand Division had a very strong start of the year.
Speaker Change: We have done work for some major.
Speaker Change: Recognizable brands.
Speaker Change: And anticipate doing it again in 2025.
Speaker Change: And that's a real strength of our overall company quite frankly.
Speaker Change: And the events division as we expand the showrooms.
And you know as I mentioned in my prepared remarks, we hit New York for the first time.
Speaker Change: With the showroom below expanded showrooms outside of Los Angeles for the first time and it started with New York fashion week in September by all accounts. So it was a very successful show room for us.
We just came off a showroom the last two days in Los Angeles for the holiday season, and we're about to do another one here in Miami at our parcel and a couple of weeks to three weeks. So.
Speaker Change: Digital apartment is going into Q4.
Speaker Change: Which is why I didn't mention them as a highlight in Q3, because as you said, they're there they're explosive quarter as Q4.
Speaker Change: And.
Speaker Change: We have no reason to believe it won't be again this year.
Speaker Change: Thank you I just wanted to.
Speaker Change: To understand a little with the you said you have received.
Speaker Change: Second installment of $2 6 million of content licensing licensing agreement.
Speaker Change: Could you.
Speaker Change: Just back up and explain like how much money you've got overall and then that 2.6 million how does that get recognized as revenue or in a different way and.
Speaker Change: Going forward is the way to think of it that you'll.
Speaker Change: You'll get revenue from the institutional theaters it is that the.
Speaker Change: There shouldn't be any revenue from for them anywhere else or.
Speaker Change: Thank you.
Speaker Change: Sure Yeah Blue Angels did very well for us that $2 6 million was the revenue that it was the cash we received in July in Q3.
Speaker Change:
Speaker Change: From revenue, we had recognized when we delivered the film earlier in the year. So we've received over $3 4 million from Blue Angels alone.
Speaker Change:
Speaker Change: And that's against a total cash investment of 2.25, so we've recouped the full cash investment and have made a nice profit return on that.
Speaker Change: Even before it goes into institutional theaters.
Speaker Change: Which you'll start doing in January.
And then the beauty of the institutional theaters is as I mentioned in the prepared remarks.
Speaker Change: We treat it like an annuity it or.
Speaker Change: We get a percentage of that box office revenue.
Speaker Change: Tickets sold at the Smithsonian Museum of natural history, or the Miami planetarium or wherever it might it might run those are all IMAX institutional theaters and we expect that will probably run in most if not all of those theaters.
Speaker Change: Around the country, so and as you know you know it may run in that theater for months at a time in a month out of every year for the next 10 years. So.
Speaker Change: It's a good business and.
Speaker Change: We have a good partnership with IMAX for sure in the Blue Angels, just the success <unk> had in traditional theatres in May the fact that it was the number one movie over Memorial day weekend on Amazon.
Speaker Change: It had continued viewership for 345 weeks, which is getting just not common with the documentary.
It was just well made so it sets us up to do more of these in and.
Speaker Change: It gives us a unique position in the marketplace that we can put in documentaries and movie theaters. So.
We're excited for it and starting in January at all.
Speaker Change: It'd be a nice annuity for us as well.
Speaker Change: Okay. Thank you.
Speaker Change: You've spoken in the past have some other ventures or new.
Speaker Change: Areas for you for young people.
Speaker Change: And I was wondering is it how is it how that might be progressing.
Speaker Change: Yeah, well you know in terms of I think you're referencing the Influencer marketing agency, having different divisions that.
Speaker Change: That we can expand.
Speaker Change: It is [laughter].
Speaker Change: I've had this experience before with in my previous life with Dolphin and producing content that you have a hit show sometimes your other shows don't get the love and with our skin care and Dermatology group I mean, there that would be the equivalent of a hit television show.
Speaker Change: And and and they can you can get a lot of the airtime, but there are a lot of good talent managers doing a lot of good work across different.
Speaker Change: Different verticals with Influencer marketing clearly, we're always going to be very strong in beauty fashion and lifestyle, it's the bread and butter and it was the bread and butter about be social and social eight before we merged to create the digital apartment a year ago, and we just have such strong brand relationships in those verticals too.
Speaker Change: And it and it feeds into in it and it gets fed from the showrooms, which have a heavy beauty fashion and wellness focus.
Speaker Change: With that said, yes, we are we are continuing.
Speaker Change: Continuing to expand the types of creators that we represent.
Speaker Change: And we can imagine building rosters of creators in specific verticals like we did with skin care and dermatology.
Speaker Change: In in areas such as the young adults that you're referencing in our partnership with Yahoo Spring Agency Allen as well as in the future.
Speaker Change: That may include culinary or other areas that crossover into our PR expertise as well.
Speaker Change: Okay.
Speaker Change: Well I don't.
Speaker Change: I don't know if we're going to start a vertical for accounting.
Speaker Change: Talk to me or to about that and if we get some online influencers interested in that space. We may we may expand it.
Speaker Change: Okay.
Speaker Change: Hum.
Speaker Change: Your partner share your AI partnership.
Speaker Change: Bodie that this sounds very compelling.
Speaker Change: I explained and you said something interesting in the release of.
Speaker Change: Oh can I understand that.
How does <unk>.
How do you get paid in US, but then also you said there was an opportunity to become the venture.
Speaker Change: Kind of make it a venture investment in this could you could you tell us what youre thinking about there potentially.
Speaker Change: Sure I mean, you know AI is still so new to everyone right.
Speaker Change: With that said, though we do have we're blessed to have market, leading companies and we have market leading clients and so no.
Speaker Change: You just can't ignore the potential of HII and you want to you want to be market, leading in that space. So we made this partnership with loaded too.
Speaker Change:
Speaker Change: Coming first our first.
Speaker Change: Entry into AI is actually one to bolster our core services right.
Speaker Change: Many of our PR firms are in that are when you summarize what theyre doing theyre managing the public persona Theyre managing public relations PR at its core for either individuals or brands.
Speaker Change: And and you can't manage a public persona today, unless you can protect it online.
Speaker Change: I mean, it's it's that straightforward and has anybody attempted to get any content removed from online that'd be good luck.
Speaker Change: <unk> and AI has the potential to transform that to that industry and that capability by being able to you know to search much faster than any previous technology in an attempt to take down much faster than any.
Speaker Change: Previous technology, and and and and we did our research.
Speaker Change: We selected the company we feel.
Speaker Change: Is the strongest and and to our knowledge. We're the first entertainment PR firm to partner with an AI firm, we represent them as well they are a cash paying client.
Speaker Change: She is fantastic and in success and and and and testing.
Speaker Change: With many of our signature clients. Then then we have the potential to turn this into something that may be adventure.
Speaker Change: In 2025 for us because if we could.
Speaker Change: <unk> have success with loading and we expect to then we could.
Speaker Change: Work to greatly expand them, both within entertainment and into other verticals.
Speaker Change: The other brands across industries, so that's exciting for us for sure.
Speaker Change: And as we look into other forms of a then will start playing with AI to create product I'm not content specifically.
Speaker Change: But other forms of <unk>.
Speaker Change: Subscription services or ways to access information that weren't possible before.
Speaker Change: Those types of some creative solutions that weren't possible before and so we might have some we hope to have some interesting announcements interesting products.
Speaker Change: Created from AI capabilities in 2025.
Yes.
Speaker Change: Thank you.
Speaker Change: As far as getting closer to 2025, what would you say kind of your priorities are for for the next year.
Well.
I would say a couple of it'll be a good blocking and tackling and organic growth here. It would be my first answer you know we're about as I said we.
Speaker Change: We feel very good about getting better and better at cross selling we have the group of companies we like.
Speaker Change: We don't know of any marketing capabilities that we don't have in house now that we would have wanted and so.
Speaker Change: And we can focus on a few things one we we will grow always alpha by the way I know, we haven't talked about that yet, but the big announcement in October and there's a lot of complementary services that we can help cause that analysis and grow that company hopefully faster.
Speaker Change: All of those brands, we just talked about for the digital apartment in beauty fashion and wellness are all brands that could work very very well with and women's sports.
Speaker Change: And we can we hope to open a lot of doors and expand the type of partnerships that these athletes and these broadcasters can have.
Speaker Change: But we'll also continue.
Speaker Change: Continue to grow our impact PR division for sure.
Theres just a lot of cross pollination between our entertainment companies and our existing relationships in the nonprofit space that L can benefit and benefit from also so I think that'll be fantastic for US and then and then Dolphin story 'twenty 'twenty.
Speaker Change: Well, probably mark a pivotal year.
Speaker Change: As 2024 is starting to do because when you've got the companies. You want then you can choose what you want to do together.
Speaker Change: And obviously, what we're we've indicated for eight years is that when we finished building the group.
Speaker Change: What we want to do together is to own some of the assets that we're marketing.
Speaker Change: So we've got staple Jim in the market now next year should bring multiple staple Jens.
Speaker Change: The level of opportunities we hope.
Speaker Change: We've got Blue Angels, and the market 2025 should give us more should see more content in the market.
Speaker Change: 25, you're going to see our first live events special projects being at the Vanguard of that capability for our company. So.
Speaker Change: Yeah, I I really do see.
Speaker Change: 2025, as being the year in which.
We take the foothold we established in 2024, and we blow the door open in terms of having multiple ventures and market.
Allen Klee: 2024 that was gonna be sad to see this year go Alan I mean, it's a year in which we cross 50 million, we anticipate we're going to cross $50 million in revenue again that would be very hard not to do since we're sitting on 39 already and you know it's a year, we hit full year positive.
Speaker Change: Adjusted operating income.
Speaker Change: That's a nice milestone for our company and so or years ahead, we will look to grow that.
Speaker Change: Yeah.
Speaker Change: Adjusted operating income of course, we will look to grow revenue, but we'll also look to build.
Speaker Change: Build some of these lottery tickets that any one of which certainly against our current market cap would be worth more than our market cap. So.
Speaker Change: That's what I think we have in store for 2025.
Speaker Change: Thank you and I forgot to ask about always Alpha you have so many things it's hard to remember.
Speaker Change: But.
Speaker Change: Do you see this as kind of.
How do you develop I mean, you have a strong management team, but the.
Speaker Change: The ability to.
Speaker Change: Bringing on new.
Speaker Change: New clients, how do you think about like how.
Speaker Change: How you go to market on that.
Well I'll tell you is we have a couple of advantages there, but thank you for highlighting the management team I mean, because that's.
Speaker Change: A real Rockstar.
Speaker Change: Allison is a legend in our brother West maybe the nicest Guy I do business with so very very accomplished himself so and I think it I got asked recently you know what are the core strengths of dolphin and I think probably the number one answer is look at the management teams at each of these companies.
I mean these these are people that are at the top of their game. So when you've got you know people like Amanda Lumbergh at 42, Western Maryland, Laverty assure fire loss O'neal and Charlie at the door and in all of our companies.
Speaker Change: Youre starting from a position of strength right. So you know when it comes to recruiting new talent for always alpha.
Alan: I would love to tell you that I'm essential to the process Alan but I think you just put allyson Felix in front of other female athletes and say, we're blessed to work with Allison and to manage allison's career.
Speaker Change: Well, you've already established a whole lot of trust I would say in the women's sports industry right.
Speaker Change: And then secondly, when you get a chance to educate potential.
Speaker Change: Potential clients about all the other companies dolphin has under its umbrella and how they can assist in making those dreams come true wherever they may be for those female athletes are female sportscasters.
Speaker Change: I think it's just an incredibly compelling story and in many of them have aspirations of course off the corridor. The field all the truck appealed for businesses or to become brand ambassadors or to become Influencers and of course, we know a whole lot about that.
You know to take to build a PR presence, we know a whole lot about that but also to do some positive good in the world with whatever charities that they're affiliated with and now we have an enormous capabilities in that world too. So I think we have a really.
I don't know of anything that they might want to do that we don't have an opportunity to help and I think that's a when you pair that with the credibility that Alison because that gives us. It gives us we feel a unique story in the market.
Speaker Change: An industry, where there just arent management firms for female athletes.
Speaker Change: We have a first mover advantage and then we think we've got a team behind it they could sustain it for the long run.
Speaker Change: Thank you very much.
Speaker Change: For my questions. Thank.
Speaker Change: Thank you.
Sure.
Speaker Change: What I'm also hoping that 2025 does not bring me as a challenge to a foot race from Allyson Felix that would be embarrassing so.
Speaker Change: There appear to be no further questions in queue I would like to turn the call over to bill for closing remarks.
Speaker Change: Well I'm sitting here thinking I think Allison 111 Olympics met.
Speaker Change: Metals incredible in that our signature event was the 200 meter.
Speaker Change: How big of a lead would she need to give me for it to be a tie.
Speaker Change: [noise], let's just not answer that question either.
Speaker Change: Well. Thank you everybody for listening in obviously, we were very proud of the year. We've had so far we've accomplished many great things due to the hard work of the team.
Speaker Change: The 270 Dolphins now Wow.
Across the country.
Speaker Change: Our financial results are speaking for themselves.
Speaker Change: And then the ventures that we're doing in the companies we're bringing in.
Speaker Change: We think speak for themselves the partnerships we've created.
Speaker Change: And we hope to have a very successful Q4.
Speaker Change: Into 2025 so.
Speaker Change: More to come should be another announcement or two certainly before we speak again in March.
Speaker Change: And.
Speaker Change: We look forward to it all so thank you all for being on this ride with US and we'll talk again in a couple of months.
Speaker Change: Happy holidays to everybody bye now.
Speaker Change: This concludes today's conference and you may disconnect. Your lines at this time. Thank you for your participation.