Townsquare Media Inc (NYSE:TSQ) Q2 2022 Earnings Conference Call August 2, 2022 8:00 AM ET

Company Participants

Claire Yenicay - Executive Vice President

Bill Wilson - CEO and Director

Stuart Rosenstein - CFO

Conference Call Participants

Michael Kupinski - Noble Capital Markets

Jim Goss - Barrington Research

Operator

Good morning, and welcome to Townsquare's Second Quarter 2022 Conference Call. As a reminder, today's call is being recorded, and your participation implies consent to do such recording. [Operator Instructions]

With that, I would like to introduce the first speaker for today's call, Claire Yenicay, Executive Vice President. Thank you. You may begin your presentation at this time.

Claire Yenicay

Thank you, operator, and good morning to everyone. Thank you for joining us today for Townsquare's second quarter financial update. With me on the call today are Bill Wilson, our CEO; and Stuart Rosenstein, our CFO and Executive Vice President.

Please note that during this call, we may make statements that provide information other than historical information, including statements related to the company's future expectations, plans and prospects. These statements are considered forward-looking statements under the safe harbor provision of the Private Securities Litigation Reform Act of 1995 and are subject to risks and uncertainties that could cause actual results to differ materially from these statements.

These statements reflect the company's beliefs based on current conditions that are subject to certain risks and uncertainties, including those that are detailed in the company's annual report on Form 10-K filed with the SEC. You may also discuss certain non-GAAP financial measures, including adjusted EBITDA, adjusted net income and adjusted operating income, which we may refer to as profit in our remarks. Such non-GAAP financial measures should be used in conjunction with all the information contained in the quarterly, year-end and current reports available on our website. I would also encourage all participants to go to our corporate website and download our investor presentation, as Bill will reference some of those slides during our discussion this morning.

At this time, I would like to turn the call over to Bill Wilson.

Bill Wilson

Thank you, Claire. Thank you all for joining us. My goal on this morning's call, in addition to sharing our record-setting Q2 results and strong outlook is to clearly distinguish Townsquare from others in the local media and radio broadcasting industries. Because quite simply, Townsquare is very different today and most importantly, moving forward from the rest. As our country could currently be in a recession based on the first half of the year GDP data released last week, or if one believes our country may potentially enter a recession over the coming months or quarters, it is important to remember that Townsquare is a digital-first local media company focused exclusively on markets outside of the top 50. Approximately 50% of our revenue comes from digital solutions, which historically performed better during a downturn than Broadcast Advertising, and approximately 40% of that digital revenue is nonadvertising-based digital subscription revenue, which Townsquare grew even during the worst of COVID.