iHeartMedia (IHRT) 2 May 232023 Q1 Earnings call transcript

Hello and thank you for standing by. Welcome to the iHeartMedia Q1 2023 Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session and instructions will be provided at that time.

I will now turn the conference over to Mike McGuinness, Head of Investor Relations. ahead. go Please

and join everyone, call. for the taking Good for thank our to us earnings first time morning, you quarter XXXX

Joining our are CEO; me discussion our for and Chairman Bob and COO President, Pittman, Bressler, and CFO. Rich today's

remarks, our conclusion take will prepared the your management At of questions.

performance regarding presentation note include use to along to our earnings with results we financial that what website may based of our our our and have as and release, addition on filings. today's statements that statements Please this follow forward-looking call In an management's on remarks. SEC press are result company's on operating results. could These available you call current can expectations, the and certain a is actual factors identified from in differ stated

this our Investor in financial included measures Reconciliations refer non-GAAP to Additionally, we release, filings, are and available of SEC will which non-GAAP certain the earnings between and during Relations financial call, section presentation our GAAP website. earnings in our measures. are

I'll now to Bob. call turn over the And

Thanks, We're EBITDA report revenue quarter ranges. our first our little pleased results high-end and everyone. Mike, were good that XXXX adjusted above guidance to the and morning of

the uncertain, than a both and while importantly, anticipated. market had marketplace bit remain climate More initially advertising the stronger the we in macroeconomic quarter was advertising the

be levels, we what Additionally, while EBITDA, we first expect that our approximately double will quarter. in adjusted below XXXX second still quarter generated the

this provide estimates his thoughts trajectory softness. performance our our if will on our with And our to quarter that we adjusted market throughout continue combination relative will XXXX, confidence advertising in guidance period results recovery improve additional trend in outlook continues resume this to first remarks. quarter Rich second growth EBITDA was advertising by gives of forward-looking to during The us that XXXX. interrupted expect

the the guidance $XX results we With that exceeding key of of provided $XX million, EBITDA generated range $XX adjusted of take the million. of let you me quarter, some In slightly million quarter. to financial through the backdrop, we first

to Our consolidated guidance year revenues the for a quarter, the we compared better mid the down single quarter little down of in provided the prior X.X% digits. were than

Our quarter the $XXX free for was million. cash flow negative

quarter and lowest will As a free generate the flow positive QX we seasonally the flow in of year, is free our cash remaining XXXX. in of cash reminder, each quarters

transform to Finally, operating in operating using continue structure expenses cost also explore remain and ours, structure drive base in we're And substantially to see we adjust that additional to strong operating of even more and continuing a our focus over you'll of time. efficiencies, QX. to AI our

to now year In versus the year, Turning our our $XX were million $XXX adjusted million X.X%, EBITDA prior individual margins adjusted Audio Group XX.X%. were Digital Digital operating versus EBITDA first revenues Group quarter, and was up segments. up X.X% our quarter, prior Audio the

As changes at to sales call we and we QX. the in had on Digital Those initiatives margins our on said our through call, will in while back we of confident be on last as second some of those continuing quarter our effects anticipated first through track. Audio certain commission last XXXX, have a earnings flow our on Group our were XXXX. that made which And quarter impact saw negative end reversed are results negative we changes structures, we

grew year. prior prior slow ex-podcast year, revenues Group, and approximately the versus even X% this our in digital Audio XX% ad revenues, Within grew market Digital podcast our versus

have tremendous downloads further with more illustrate was terms in monthly in the in In than iHeart podcast publishers of the podcasting. two data March, reach, ranked largest one podcast we opportunity Three next the to points U.S. number the Podtrac. combined audience publisher according again

mediums Americans of have growing ever. one according of to podcast a Edison, XX% making the it fastest now over First, to listened

biggest included And than streaming new the since deck, Second, the we've third, more month investor subscribers. among podcast are growth Netflix podcasting now there U.S. time and spent daily the now reaches users music XXXX. some podcast weekly in In more that service. slides than every reach listeners in the consumers show

complementary where a Additionally, of XX% spoiler media is spent drawing spent time see they said alert slide YouTube, broadcast podcasting and listening spent radio broadcast you'll and that listening, services. drawn XX% the from nature its was from not time most And with time with music they much shows said podcasting. said surveyed, illustrating they listening social XX% replaced platforms, with podcast streaming truly replaced radio important, those of replaced

to dollars in their follow are marketing according significant advertising in their invest of advertisers audio, reflection a trends plan perception industry of marketers, increase we spending Indeed, with positive consumer upside cost. recent who usage. relates because a advertisers. podcast mentioned changes to we as podcasting and to These podcasting quarter, last and to Also, XX% potential the strong specifically it content XXXX, poll, continue see performance as in

up economic for publishers drove podcast cost the the for podcasting news marketplace marketplace, this we're a good some reversal iHeart across seeing this content and think good behavior podcasting to that uneconomic deals return the is chased rational had We now industry While of a as whole. across trend. news

broadcast in illustrating marketing out podcasting XX% and advantage truly revenue I engagement you And slide happens new of occurs that consumer advertising can the us of gives home, radio creation, in additive broadcast and presentation and radio in of are see broadcast investor mutually businesses which business, podcasting a natural terms podcast radio a that promotion, finally, that shows as listening metrics. content the usage. sales and an in listening at the you and that complementary home its remind our XX% profitability and assets, is core, podcast complementary of iHeart's consumer clearly included that adjacent We've in

we larger service, addition radio competitor. Xx our the have is also In our business, closest one number to podcast which industry-leading than streaming

the X,XXX all of national and and of to partners United our highly operate marketing audio in We local largest additional we factor have XXX almost base. the alone, represent any reach social a for of websites our States engaged by that with which consumer footprint million people opportunities interact service seven,

our to revenues Group, Multiplatform year, Group $XX broadcast networks first the $XXX year, which In EBITDA versus includes adjusted margins XX.X%. were Audio our events businesses. our and now prior first Group in saw adjusted million, Group and prior down the softness quarter. were versus than turn XX% at Let's X.X% Digital Multiplatform EBITDA million, was the quarter, of we down the more The impacted by Multiplatform some was radio, advertising

advertising advertisers. some environment, period context, of softness radio's consumers to in the performance assets the digital broadcast of during of great our the radio's large have been in give advertisers However, digital this broadcast as we performance and more significantly being is revenue continued tied better To validation leading for softness, see that downturn. to we than growth this to it to confidence both macro that and technology think We companies the has uncertain to directly potential. like our and stronger radio data our was relative XXXX importance make investments

radio consumers Facebook reach look to our every advertising have also continue actually growth. And and we United broadcast States. long-term strength conviction as with sustainable XX% people assets at That more the today reach month revenue overall Google will supports our over in that and than revenue broadcast Americans of potential, radio

and substantial on radio magazines, radio TV. unlike advertising and the are declines staying Remember, consumer follows on consumers and the by are the newspapers, linear experience consumer

For example, early has to Television TV the the since Network, cut CBS currently network, latest the XXXXs. ratings, linear consumer its which the largest reach is Nielsen according half seen in

as broadcast radio period, iHeart's over same now that people many and slightly grown consumer than time twice XX-year more While has CBS. actually as reach reaches

turn presidential a over profitability, laser in and growth, thought. ramp see few want we’ve generation. while leading the revenue believe and expense free performance to iHeart in focused XXXX And I ahead, for on strong with flow management identifying to we we’ll past to targeting the it growth of and this I with up opportunities remained a Before Rich our managing actions you and taken beyond and Rich, team XXXX, terms election entire over aggressively year revenue I months cash our throughout our leave base. final a and

now And Rich. turn I’ll over to it

Thanks, Bob.

mentioned, you’ll provided as previously through it As Bob our exceed I slightly our for quarter. take results, the we guidance notice that

consolidated XXXX guidance compared range provided QX were down down digits. to the of mid-single the revenues X.X% in Our we year-over-year,

our slightly made the incurred cost by Our additional concentration look reductions cost earlier, we digital additional third-party with consolidated ahead direct increase in for content primarily excluding revenue, the moment, a operating we cost well margin as the we in second QX. digital increased restructuring short-term of operating to discussed and which some revenues in impact of quarter drives higher costs. expenses direct year-over-year, to as driven down execution for quarter, the To expect be connection increased the of lower expenses, X.X% sharing costs profit due

increased Our by additional consolidated we certain credits cost of quarter, in with execution in cost key some as SG&A prior which in well the X.X% year the expenses areas investments reductions driven the additional primarily as for growth incurred like quarter, connection made benefited QX. podcasting,

GAAP quarter quarter. of in the year loss $XX first income prior compared operating to operating generated We of million million, $XX

in $XX above the million. was the EBITDA guidance end $XX million $XXX to high we $XX provided compared quarter a first to the year Our of quarter, million million, range adjusted little and of prior

performances. slides they reminder, in segments. first the and presentation XX% the Turning quarter, million, of Audio revenues In our consolidated first our our And there approximately now quarter earnings Group operating to were comprised on year-over-year, the X.X% segment up performance $XXX of a revenues. are Digital as

were million, adjusted margins Group was up our and Audio $XX EBITDA XX.X%. X.X% Digital QX year-over-year,

our year-over-year, Audio year-over-year. grew digital XX% X% Group, revenues Within our Digital revenues the approximately non-podcasting podcasting grew and

call, sales on had in resulted our certain adjusted EBITDA emphasis an mentioned negative impact revenue on earnings we incremental our margins streams commission in and QX. unintended we As in through increased QX, digital which last initiatives structures, our

were issue. impacts there it the We corrected an by And although be issue on second the will margins, have QX not lingering quarter. some

to Group margin back Digital we will be business a We digital expect our believe to business. adjusted through Audio EBITDA to starting our flow EBITDA QX, our and get continue XX% in normal

was million, with year-over-year. and EBITDA of Adjusted $XXX XX% EBITDA a vast margins adjusted were the revenues operating Group directly high nature reflect the majority were the declines Group Multiplatform down EBITDA. margins X.X% year-over-year, Multiplatform dropping These million, revenue revenues to of $XX XX.X%. leverage down

impacted prior the certain the to EBITDA In benefited and quarter, addition which year-over-year year decline. credits

through expect our resume QX. in to flow normal We

were $XXX balance & million $XXX million. year-over-year, million, million, the in total and $XX Audio revenues which Group our we down up outstanding, end, of liquidity was quarter At includes had year. a a cash $X.X debt was EBITDA billion of Media prior and $XX X% net approximately million, $XX from Services adjusted approximately

times. EBITDA X.X ending quarter ratio Our net to is debt adjusted

of goal when can’t softness, long-term of four EBITDA fully advertising marketplace approximately net predict we to period will adjusted Although debt remain of this we times. the to committed ratio from recover our

As of [ph] $XX environment, X.XXX% In our maintenance which development. and we no profile until balance principal XXXX. and past $XXX current QX, in senior of in In the calls, be total debt this maturities $XX opportunistic market our repurchased resilient to have annualized unsecured debt million no to debt highlighted positions savings million responding type both notes, us proactively on interest we results an material of covenants of to macro and aggregate approximately repurchase million. brings the

to to earnings these repurchase free their and market the discount accretion. at meaningful were able both flow par generating notes value cash a We in

optimize continually further arise. improve conditions to look and as market monitor will and opportunities our we’ll capital structure We

flow. $XXX negative generated we of million quarter, cash first free the In

reminder, a media first quarter quarter in as free is for is EBITDA is and companies. year because the the quarter part most cash our adjusted smallest first quarter revenue As our flow for lowest always the

quarter Bob subsequent cash earlier, flow As generate for we each free positive in mentioned expect to XXXX.

on to want to now for some as QX year. our as outlook the thoughts full I turn well

single our down impact revenue. to mid-single the low year-over-year XXXX digits expect and QX of revenues political We excluding down be digits,

the at our high be Audio expect revenues high down to down April, revenues individually, down excluding low In Group segment of be Audio the to and Services X% digits, or our consolidated Digital & Multiplatform single month of up digits single single Looking the mid-single political. Media impact Group digits approximately down digits, the we to year-over-year. be were

of adjusted $XXX the range to $XXX the XXXX, to we Turning QX expected million. adjusted EBITDA, generated million EBITDA in

regarding Let some updated me provide assumptions cash.

between since cash we While will of expect planning implemented our reduce full initially to cash to in $XX taxes pay XXXX. payments taxpayer $XX a tax cash XXXX, tax and we annual in that XXXX have expected we expect million now to initiatives be million

a million We now XXXX. and of previously $XXX which to full expect $XXX significant $XXX XXXX million reduction expenditures already our in $XX be was million, year year-over-year below capital provided a approximately million between guidance from our

expenses We expect our cash year-over-year. dramatically down restructuring be to

and But rate be debt current committed impacted is allows. the our opportunistically by our to structure XX% approximately improving interest remain of interest to further floating. market continue the as our reducing environment as We we capital expense

on to we just Bob’s want company as our reiterate I outlook the comment move for forward.

Assuming continue to believe XXXX. the we advertising will our Group Audio recover our Digital and grow revenues that that throughout a marketplace, in continued improvement will to Multiplatform continue revenues

This this gives interrupted our to advertising in expect to adjusted by growth second guidance if performance our first quarter throughout we was confidence improve of to resume relative quarter outlook that in softness. And that XXXX, will advertising our combination EBITDA us continues, this results continue XXXX. market recovery period with trajectory

value see shareholder to it. through additional expand offerings cost new and a rigorous extended our product remain operational improving guidance of helps savings allocation our identifying as to capital, technologies opportunities, to this of paint our committed company’s clear picture driving I We efficiency. we the hope utilizing future

entire And and behalf members, engine for every work drives of that Bob communities team, to their finally, iHeart want thank management on our They're who company. and our for the I to our senior day. deliver team

questions. it the turn operator we'll to Thank to you. take your Now over

Thank you.

question will of Bank Reif go session. comes Jessica begin Securities. now with America ahead. [Operator the Please of first line the We question-and-answer Your Instructions] Ehrlich from

outlook. competition maybe It Good know there's say I on I'm isn't long-term things heard obvious, probably obvious your the there's – – seems what there's I a you. questions. just bit, the Thank in I April – most April, little you can your challenging about I morning a in think I guess you've the QX. really like if marginally and versus revenue X% don't X% May. know, it secular visibility, then and two that going wondering if I'm you little macro the first away. down about but said you saying when very getting guess on down what and is environment everybody. challenging it's are worse, don't – but a had the long-time comments

You've margin wondering but and can explained be of costs. what aggressively they you've the I'm else like are some cut already challenges, done. just down

margins a the more the on Do explained need is side. revenue? You in digital there just recovery do? to Or you

Hi, you. Jess. Rich. Thank It's

jump expect on portrayed, but then the So the said low in let start single The me picture Bob we down we ex-political, a digits. April too. sure couple rest said was I'm will we X%, get quarter we of reading down that things. down also to to be

are quarter. excuse is So said seeing with to what And advertisers, back expected went the we I a seen in improving the you if slightly QX see think we we've think beginning QX, particularly month, think of – national through what a – for go first me, trend, trend. who we the to we I

frankly, better our QX, the to quite continues I think I Bob in it script and that we thought said think was in slightly that. that advertising guidance his earnings environment reflect

that change QX capital of to made, we've And as talked expenditure we you dramatically a of margin just as we advantage reference us through digital, some our taking we yes, that was to QX, down we QX, the we about efficiencies, to quite we've go cost question but and QX, way, commission frame were that that as footprint. advantage you reducing number by to said, are real not amount had the just and initiatives And just work what estate referred in in margins a but back emphasized to we went look taking here. the that, yes, our left we significant when your overall, revenue. frankly, that was back down. just taken as that to at going to the said And did QX – of We margin had reiterated take again lower structure we to revenue – going in of

QX, our you overall us to revenue kind expect EBITDA we about to fully of QX. but modeling, you to when we when the for And look just guidance do And to the math. pieces be think we – $XXX at that fully to the lot numbers, of the you said XX% there's we $XXX think behind get to million business digital million if we be margins. of expect, be a expect fully EBITDA, just And I

improvement like repeat general then margin get pretty guidance is You And our see year. the you to million some revenue and out gave from $XXX million I as smallest repeat in as and think a of QX in math I just about often, above million, I QX. we quarter reminder, $XXX this this Again, significant there. $XXX of QX, the that and doing

So the lore get EBITDA numbers you're of when computing you small margin.

I would add some.

issue jump secular on in competition. me let Just about your

I where made held comments. Radio advertising, continues streaming coming think pretty the on just and have and social linear put when really solid to be radio mentioned radio, the charts music, TV are well, and the from is on YouTube basis think I and the from. coming of I pleased coming of a both radio think we precipitously I on it's seen by when as at is side marketplace. in time we look news relative us. very the we has I side, primarily, the reach in just the advertising think consumer for others which too, and the declined And rock from way from at time it's on good it's some with in coming we're competitive and this – the we've the extraordinarily progress it's from usage to up show you've coming the podcasting not And a

commented comparing the I bit making paid has broadcast a investments we've the about little digital our made this to off. really more last radio like advertising offerings in On in the XXXX. front, downturn we've And think again,

If quarter think back in was next XX%. XXXX, you the quarter something Group I down I was to And like XX%. think and first fourth go Multiplatform was that the XX%, quarter

I year other companies improvement was Groups down this almost think closer Multiplatform – Whereas basis. market this much the to X%, the I a XX% relative on a down Group digital for in downturn, Multiplatform and think to digital year. the much, company

and adding offering – we going radio, that. a broadcast think, it So again data, to with I again point again, we digital idea – the are we were seeing more we're that taking and traction that and technology like making would

Thank you.

from Wells Fargo. Steven next Your Please of Cahall comes ahead. go line with the question

just you. digital a little ad in Thank I'm dig sort Maybe back trends you about if could you're I first into was digital market within contrast categories. podcast non-podcast. versus that wondering specifically strongly local. pretty hoping I've is coming and even maybe heard to of was the multiplatform seeing versus in auto deeper. thinking

how So channels. they're to just what categories those some would across take and your your trending love maybe expectations and about commentary outperformed of different

Well, think get slightly going on see let to me And we do our expectation better continue it's what market. had through the is than that to hit year. today based We're the better expected. probably ad we high that level a marketplace seeing we the

again flow. especially we're We that to I away to think for biggest And we're quarter money some we QX in begins companies, goes that felt major most as seeing and think QX. that the year to as the also happening. evidence year the of back trying is that advertisers, money – which put you sales get on, holding for

right think categories of I I about think auto. in you're terms

are a strength The categories that the that are We they works. couple going to that get again, realize the the moderating them learn if that But strength advertisers the in turned a and XXXX it point stayed that's of that's downturn. hard seeing advertising cost that And think there. learned the in they actually I of We're to off. lesson a lesson little of seeing marketplace, to back hopefully out things unexpected. more a is when this lesson in downturn impact other is

builds And X%, might got the we've category about add, news and that more more I modification normally slight but you'll actually to that. you've individual and good no thing than I Bob's think had X%, and more about this consistently back than financial said, advertiser upon, heard only Steven, and think, us is having no and Hi, talk to are strength terms haven't than actually auto Bob again, slightly of I recently it it point is where we goes even advertising now X%. in what strength and services categories. And

more a you the on said And kind Rich, housekeeping couple Great. of expect side. you digital then margins.

a a just QX I get interest I cash best an on just back was side, Or think outlook on based the wasn't general? at do also And kind you have cash guidance that to XX% commentary our or for bit rate that estimates range. we the to more little sure, do that then curve? this point? should was of

takes. two So

because the expect could for DAG On I but QX. the and term, wasn't get see significant in clear EBITDA from XX% probably to you expect as – have to I the margins back as margin you I Group, improvement to the Group, QX been. margin thank longer should in Audio the DAG EBITDA Digital

for from million just million and we the a the significant previous We've cash the do our free and down it's everybody full down of $XXX XXXX, terms year it. million think for significant million. said earlier, year because being I of to dramatically to capital on on the million, guidance expenditures basis XXX focuses our year cash to $XX about $XX sure being to of talked make were reiterate taxes for – reduction in In rest what $XX $XXX they

year. you year, about million million a actually this there. And over think the expenditures, we've of our cash expense of being of about – For capital couple overall for significant should $XXX so as just years reminder, $XXX the last interest been reduction

all you that color. Thank for Great.

Thanks, Steve.

of Riley comes line from ahead. Day question Securities. the go B. Please from next Dan Your

for Yes. guys. Thanks Good questions. morning taking the

share the discrepancy versus from versus what the between groups cities large recently any SMBs. national footprint, then got just Thanks. ones other markets between seeing, outside XX, and and radio a lot then you're heard we've you some small a NFL So you Maybe if the the top could about local. these station national whether differential larger underperforming diversified and are more just

more we've that much businesses this yes, say, get it so seen the building month, pick registering the had I'm I'll more be been They've the but up if to advertisers of cash advertise build to brand, tended next tomorrow. Yes, it persistent I the my to stronger that or issues and month luxury has don't have to whatever.

I seen been seen where slower. that think you've you've a has little

As local is as that come for we we our quarters advertisers marketplace sort bigger earlier, again, up will advertisers. to at building bigger And of or to don't because going or back large small again said I the they to I and expectation national continue they sales the think, and themselves, markets sort to particular those or big look enter into at of of have it the marketplace. the market, and what's be are mix look – more

slow I do back hold most people think have QX because then. luxury it's such the sales companies, a to quarter for

more one me. And Bob. from Thanks,

of press couple put months. bunch out you've over on last new a partnerships releases of the So podcast

guys You in of prepared back. bigger your talked have of sort rationalization market with this lot the of remarks a pulling about

you. et cetera, of nature whether and are the just owns at cetera, whether and you two getting [indiscernible] if compare ad that's there you're better there partnerships of all change wondering better could ago, getting Just who the at is dollars, whether today is for economics or et years these the any versus the whether whether and the maybe deals, contrast one terms meaningfully economics which

interesting. It's

sense what economic all We that are to I a and and or deals to got deals think losing What there's good podcast, the always say they're to how podcast able of deals. do easier is like best I than way for less refuse the cetera, we're at believe we into my somebody is offered say, in folks don't the long-term some podcasting. et us to crazy The such are have multiples not good held a look When news to paying it's marketplace. it we've sustainable offered. monetize biggest don't probably along smaller us past in earth thing way is on buy we being out the as we're going a think the would delivered looking opportunity it's if propositions. monetize, We We economics what the even there. if economic, many those and think We creating NFL uneconomic that on we've business. at

podcast means to would payment, the podcast they're not biggest looking getting can, compensate That which group necessarily the not built. they building actually best the for a possible getting

podcast somebody them so, that being now is podcasters what's big decision. not crazy that to building just that are check. are there having And nice look, some this look, I of they I'll think, if And make think have people choice hard I I if say, a getting pays a or amount a paid money, of check, take the

everybody economics which podcasting, puts going are level that's it. because it field, is monetize on the how well some many are users healthy we think away, how get, playing now are to and think we those can I I going what

way, add the one And to just by thing.

the of taking other cost I think it's a probably businesses, right. of lot

us For having businesses. all of following

said, wind up you cases plus cases and or probably lot behind people corner by there of so podcasting XX% there industry were rush XX money surprisingly belief We work, of corner Bob as make best revenues the can't the a the out all paying used and been, that's could everybody to else the profitability. are that can where we uneconomical. whether direction there. is And I think way, of I initial we've the this do out the get if and, put about And with think something money general this You before, trying tell percent or the we paywall.

are. this, and But two steady a there all And factually home. be time call. a just when he script shows outside We've is that. times About XX% I or is new and would to in to is responded deck there that this is added And slide and of where question this number upon radio another to Again the few assets comp touched so slides Jessica's continued get media. that because particularly we've our interesting things, really of coming the question. in we encourage how investment the that social And – then listening the everybody of just in coming XX% think XX% you podcasting. listening Bob quarter shows or inside from is that. And a on how different home it is from, the podcasting a the complementary slide is listening of podcasting I shows there

in you So see that deck. Slide in the XX

the is through don't give back walk are, an facts and all it been enhanced not but the what to have deck I speculation. we've that you to all questions based slides, actual getting the to the on So really

All right. Very thorough answer. Thanks guys.

comes Swinburne Stanley. ahead. Morgan from line question Ben next Please Your go of with the

Thanks. Good Couple questions. guys. morning

could, You significant cash your year. just you. sales and typically fairly cash a on wondering cash free I you is Could into of that you the which sort lot is was helps tax the savings you to or next for selling reduction your this the value that. flow of a change a other properties. guys Rich heading a I And third think think company. with Thank drive if comment couple So I business been podcasting, as good Is why margin timing lot tax inventory, you're that just there's is million. maybe Is outlook maybe because there's last of maximize the for sort if bundling allow it iHeart? think I we of a curious force, $XXX side, business? digital just business on lower party year almost outside people's in talk about cost your significant business large to podcasting of have that's I'm the other selling know inventory obviously that years? a then of about permanent your

can build on Triton, service, with Well, start some biggest allow we a podcasting with at assets. put the force own used own are force let we areas me our of can businesses our our got our capture some streaming which we platform Actually, business. And marketplaces, own additional great audio able and/or and look digital. us then our on sales coming strength iHeartRadio on other the focus in been we by that's world we've for. to the and the of that And that And the into – also that lot. to either use We've sales based biggest revenue out service. streaming our we one service podcasting

We have anywhere, from anytime. every anything to trained to people sell sell seller

which are So be that capture New or in of allows advertising. to geographically us able clients not York the traditional that LA to hubs are necessarily

margins those, we we looking again, get. particular we’re And the – about in pretty at

as have have. we the to else we particular found – said, out had we didn’t good on we bit we we because have last were get to we as not – that year a where the of tried would problem some of Instead, incremental margin normally some at margin end a As business. as revenue incremental everything little a it thinking had be float higher of products

be will be that QX by and there will corrections some made effect gone. we So

that’s nice job tax initiatives our looking the significantly. to for I forward. to and And taxes Yes. And going for But comment team overall we’ve comment Ben, reduce detail, to tax the a us year initiatives. any has all shareholders. on have not value about anything think the going at on this or done the done taxes, really details cash maximize the we quite that planning enabled But I’m opportunities

Okay. Thank you.

question comes from JPMorgan. of line Please Your Sebastiano Petti go ahead. next with the

Ben’s talked the still But you’ve on system. that the that Hi. these maybe question. social on sold about are products other I just of or – some way through question within extension the Thanks digital, we wanted follow-up for working their to the taking there. of some

But seem bad weigh didn’t XQ Audio the side Digital margins, be all in on worst the seen margins or on drag broadcast to to that but digital Group. since supposed conversely, we’ve We’re margins is XXXX. the

how OpEx we perhaps quarter, expectations not can of Multiplatform bit what guidance should continued I just what recovery – little occurred obviously there? on Group the us but for second So, your think a the the there? of context in the about you up can for in only maybe unpack in mean, trend help you Multiplatform The but Group, give just

been that Multiplatform had of – And make terms I environment we’ve as it expect bit think all Multiplatform It’s about. has just a continue that in other going and advertising hit. heard and out a we we you’ve there. cost business about little harder talked companies absolutely It’s Rich. Look, improvement from the talked to higher challenges in back, Group the many fixed Group. to the

that And the programs, some of of million think on into $XXX before in so you through. in flow revenues the you $XX the cost I through, we I about XXXX. go of year. overall kind total last when We’ve million how announced for it QX announced QX and announced think gets of another gave the And going you year, company. a flow quarter look of higher this fourth at We as the sense number hit to

you’ll in QX continue improvement think through in see you’ll some revenues, also. to I I look see flow to in think Multiplatform improvement significant and

in on gets bigger. and look appreciate it and if same go and then back dramatically which numbers versus size look QX, I’ve is said you which versus But historically, and is I accentuated zip I or larger and hard we which [ph] QX, numbers greatly a at know roughly to to numbers, me, QX low sometimes call the I’ll that are all in QX QX, to QX than one thing. code, every probably, accept. at excuse couple I you and And because say go dramatically our you just QX small margins, QX times, different know of anytime

very QX hit hard on have particularly revenues. when get just in we margins, So down you

the your versus contribution the or any perhaps about on help the ex-podcasting? with Okay. the about lack mid-single a just streaming Thank year of product, trend should digit, to like we of the term of better there? terms the how trying unpack, the the for we revenue unpack, digital guidance should organic you and you. And product, be obviously, think in streaming because other extension sizing, of through some your social perhaps maybe thinking then in can ex-podcasting, How the context digital

two we which stations well. streaming well. which things we’ve our very other the Well, It’s service obviously is radio focus version products as on and iHeartRadio digital of our got does

We’ve strength to mind acquisition networks and build expand. used That of to digital. we also marketplaces out interesting big in audience a and also that social some ourselves. have footprint And continues also as our keep have We Triton well.

and a the as monetize have sort look, And of ways larger just with our for to We we seven that footprint and and gives selling top fits force about can social us extension than times player. think we economics social line. anything in needs others at bundle And other look advertisers products that that we have our us, a the that with the sales we’re of things well. together next the we largest audio addition that not good

Thank you.

the from Please ahead. comes question go Barrington next with Jim Your Research. Goss of line

good Thanks, and morning.

be are another and has Regarding any your the historically, were this you optimism if that to the into about a sluggishness could Multiplatform to downdraft? that given a revenues suggesting spending ad rebounding, do relationship GDP think point or largely occur recessionary risks there taken recession account you to

look ID. radio and of why ad to we digital to selling seeing is broadcast and with tech here. go of last. Triton. that we mobile to that be relative are this as the as able linked that built enough digital in what really probably audiences, that did it I it to Group been able Well, downturn to was we’re I’m broadcast we the that much economic more I and to not seeing stack. to much than Multiplatform certainly like But the our in We’ve we’re specifically product out better performance is relates able And think It’s it and have to again, relates how think a behind radio smart futures all predict how we changed presenting acquisition cookies make cohorts been we’ve include loss to

Digital targeting, is more and are broadcasting. do attribution people moving for we can from moving we to one, think the audiences looking cohorts on one and with that and to tracking that

we We’re the with changes. one-to-one not by broadcasting that fact limited can’t as the marketplace do

and that’s I between us. probably think that to relative tied I performance is positive And So think XXXX for now differential that.

was trades talking And you. reach, Thank lot monetization up been CMO reach brought of of be should but and that’s the Odyssey regarding for opportunity, the around monetization about that Okay. that a years and who’ve one might an in a more of closing you terms were that of successful gap what better you right relative be your been? that your is means describing Are that maybe just than product. to thinking achieving historically now

it hit exactly you’ve right. I think

on. reach look It’s if also, we there. that, we’re the at is we’re what running you numbers just which It’s recently, some look, think we’re I selling. why

lot you overlap, If of a the look overlaps. digital at

they more unique years they’re ago. as but which data the those and or other They’re the them. turns are just adding product get they and can’t out does digital ago expecting product digital help among years is the XX only think thought lot were of were – reach, getting you reach, they technology but with digital to products get advertiser I people another offer not not spots like in that to reaching to another way whereas frequency buying So radio marketplace. not one it’s the XX the same it was products buying audiences, much in is that it to And reach more people a product interested in so

to well. they’re platforms. time our is the XX%, I By the I agencies I systems Audio over TV of in bias media and media basically usage know get least terms really reach. I of about, planning We start so terrific at that better. built has addition finally because think that media past unified we as all algorithm And be all personal other can if buying doing and every we products the those can have opposed think mean, we part doing XX% platforms the And – as to way mix. of in mix do benefits radio think a today for we will to an day. building some long-term to major us Nielsen, And much usage emerging according

past idea of beginning to of we’re think, just again, is we accelerate. out some how do the years over the of and get in the invested see full slowdown positive or And coming that terms that infrastructure I We’ve to We’ve And should any the so, of that do invested out of monetization? building the heavily at five benefits it. six in tools.

that just point, because hadn’t two would one new the that to I moment When way, I said. that got a that think you about point points I talked say, just and like I reach, there, Bob and point reach well, the marketers TV historically, put last say quite By and reach the stand Nielsen come say, data advertisers of out a came would clarifying kind are that up make to is over that. and back realized about

of is, built it’s the relationship had or the the Since last in out terms we have now of fully Triton, always with the other only of the we relationship. piece been year within audio we Triton, a our think capabilities but so stack. I tech completed acquisition

Bob big one digital as one know. So now the players on industry not with pointed dealing with which their can just is with plan advertisers cohorts, one going and in, could we we And report their campaigns, the all the is like but direction to as to one, – to out, monitor campaigns, their campaigns many inform do.

things two new there different were are not before. those So that

right. thank it. much. Well, you very Appreciate All

question Laszczyk comes next of Stephen the from Goldman Sachs. Please go ahead. with Your line

Hey, great. Good morning.

of little signs cycle you term. there might But taking job that scenario entered the think in much market Just you But macro like continued over about might of great where still expenses a ad of It to or maybe mentioned course the the could structure. over still you want for the a on did play flexibility, you expenses, you the the is pandemic. there you I longer the expense a think more year. speak business of was heading reduce showing the structure the Rich, wasn’t the into opportunity some wondering out offense political be recovery you if to how next if cost bit seems

a Well, heard before. this thanks bit for say the question. you’ve us Look, little

So it’ll be consistent.

additional what QX pandemic I a for look Bob an I think the went annual basis. on announced of company. of comfort, QX the $XX I $XXX look savings we another XXXX. in during flow is myself, level, mentioned job team, in management you said with frankly, you numbers the year. as our in just be million Quite took constantly million XXXX we repeat guidance, the out realized that as earlier everybody to We and our hopefully at million efficiencies and QX million I’ll comfort through that into in think for some to give as And we expect $XX $XX to about that XXXX, see starting is cost you’ll

So of flow margins about through again, the guidance to or confidence level it’s we were a back with earlier to Multiplatform whether to Digital margins, my people high asking about revenue point why Audio have when Group see that. additional our margins

expense And aggressively to ROI, accounting ability down And capital think $XXX year the our highest $XXX the always GAAP P&L million environments. about or and we’ve we’ve the on spending last about with new of piece talked from $XX a the down under gave I kind to standpoint, million return word, advertising last from guidance expenditures were would mention, economic doesn’t I of guidance uncertain talked an been into years. to in so the manage the the going today we when from there investment go we although $XXX projects the that capital – year million million the that couple it expenditures

would the Bob about also think period flow disagree would with resiliency of think time. free this cash flow you great generate our significant are news uncertain any And is. also of company most a what reiterates I with of that amount think talked me the enables ability company good And this free to that But us And time. a of all shows generate again, flow. in to the I think of long we year, about it I think that. we we cash free structure uncertain period a cash out And question, in environments uncertain seen the as started I and times. have even this during I gave I economic to don’t of we rest times you these the first us don’t has for with and advertising that. that pointed even the out I and today all think Jessica numbers the

term. jobs want can that’s which just from is fundamentally how the And think higher will [ph] and enjoyable. think structure their company. one AI. more we add of work think will doing I as every of rote work, primary one operational also I and to turn And to lots which we’re employees as more level I editing little value a company But change employees, Yes, for of us. the doing, the use the more longer it make doing thing, our cost employees AI I And of looking

do we’ll will stuff and lower. think cost I faster our be

boat. the in I’m So

business think and are thinking I intend is and we I fullest. going to AI to of productivity it its fully major to a that both enhancer use Rich for American be

back past the the if million that. just for if debt thanks year? maybe capital repurchases, is ramp then cash I quarter. to more later or could even on to just what speak the allocation for be might buying Great, fairly and in trajectory your I And on could you quarters, flows your maybe opportunity of this looking one given own accretive was it you conditions how curious active few last $XX this

I have and just think are we demonstrated in words. Look, not

debt, terms that our highest to And capital. of nothing’s return long company’s to get in structure, still of we’re And to focused to it’s why taking is have, we’ll value flow of cash those the free the again, return we to continue which great to our generation target structure cash our which AI, so the the terms term leverage The capital the along capital a a We gives used think ways, way are flow. which to got, in structure is continue free We’ve which improve in – changed, on shareholders. to look improve improve Bob to terms I that important. down equity look is ratio, leverage to paying shareholders aggressively laser capital look [indiscernible] our word aggressively ratio. cost leverage long our overall

you. Thank Okay.

here and But questions. available and team thank thank the like Bob and the I all. more you everybody are to and for we of rest would

concludes today’s This call. conference

now lines. may disconnect your You