Townsquare Media, Inc. (NYSE:TSQ) Q1 2024 Results Conference Call May 9, 2024 8:00 AM ET

Company Participants

Claire Yenicay - EVP of Investor Relations & Corporate Communications
Bill Wilson - Chief Executive Officer & Director
Stuart Rosenstein - Executive Vice President & Chief Financial Officer

Conference Call Participants

Michael Kupinski - Noble Capital Markets
Jim Goss - Barrington Research

Operator

Good morning, and welcome to Townsquare Media's First Quarter 2024 Conference Call. [Operator Instructions].

With that, I would like to introduce the first speaker for today's call, Claire Yenicay, Executive Vice President.

Claire Yenicay

Thank you, operator, and good morning to everyone. Thank you for joining us today for Townsquare's first 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 relating 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. We may also discuss certain non-GAAP financial measures, including adjusted EBITDA 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 the 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, and thank you all for joining us this morning. It's great to reconnect with everyone. We're very pleased to share with you that Townsquare's first quarter results met our previously issued guidance for both net revenue and adjusted EBITDA. We are building momentum throughout the year and anticipate delivering stronger financial results each quarter in 2024, ultimately setting us up for a strong 2025. In the first quarter, we again outperformed our competitors and gained market share, primarily due to our local focus and our differentiated digital platform. Additionally, we continue to generate strong cash flow, granting us the ability to invest in our digital growth engine and affording us financial flexibility. By now, I believe that our investors recognize that our digital business is a true differentiator for Townsquare. As highlighted on Slide 12, in Q1 2024, approximately 53% of our company's total net revenue came from our digital solutions, more than double the industry average and 53% of our total adjusted operating income also came from our digital solutions. This highlights the point we often make and can't state enough. Townsquare is no longer the radio broadcast company was when it was founded in 2010. Townsquare has evolved and transformed into a digital-first local media company that is truly distinguished from our local media peers, validating our focus on markets outside the top 50 U.S. cities with a world-class team and a unique and differentiated strategy, assets, platforms and solutions.