Townsquare Media (TSQ) 7 Aug 212021 Q2 Earnings call transcript

Greetings. Welcome to the Townsquare Media Second Quarter 2021 Earnings Call. [Operator Instructions] Please note, this conference is being recorded. I will now turn the conference over to your host, Claire Yenicay.

You may begin.

morning good and you, to everyone. Thank for financial update. you joining us quarter second Townsquare's for today Thank With the Executive and Stuart me our Rosenstein, Wilson, on our call today CFO and Vice Bill President. are CEO; information future during this statements may that information, Please note and other the prospects. call, historical company's that than to plans make we statements provide expectations, relating including to that Act These the Private of cause safe harbor of and to from statements XXXX provision differ are uncertainties considered these forward-looking statements risks are results actual statements. subject Litigation could under Reform and the materially Securities on These risks conditions with the statements December reflect that company's the company's including XX-K uncertainties, SEC. on are beliefs are certain ended based for to report XXXX, in year the current annual XX, subject filed those detailed that and Form the may our non-GAAP discuss income as adjusted measures, operating EBITDA, refer adjusted which remarks. certain profit and including to adjusted we may net income, in also We financial measures be our all non-GAAP website. Such on conjunction quarterly, contained available in with information the should and reports the financial year-end current used in would discussion to of our slides www.townsquaremedia.com our website at reference morning. investor go download Bill those encourage participants our I corporate and some presentation, during to as all this also will Bill to like the this I time, At would call Wilson. over turn to

we the Good providing through results. digital-first by with you first you it propelled on past I morning our call discuss half is on proud wanted morning, our focus XX then very this forward XXXX. start year and all with a update local today's will progress full everyone. team of Thank company the as latest because our QX EBITDA net originally results our $XX expect least allowing we than company of, than for the adjusted something to EBITDA is heightened fully equal initially quarter, has Townsquare least that us joining for last our a $XXX last specifically and and million XXXX's million, incredible revenue. to we $XXX which $XXX Becoming And you forecasted forma above XX% financial outlook I million, adjusted is million, which and us increase of to million at quarter. to XXXX forecasted expected. just We even recover at recover of originally XXXX to we higher it revenue incredibly, is we would is months, now $XX what faster expect pro just to XXXX's

XXXX Now walk to through profit how recover me let we you will fully levels.

one. On with thrilled we set To earnings we QX, over-delivered single start, on beat you of goals performance. help Our key to and am to results quarter the that points financial I'm accelerated data quarter financial we second I and last for provided and to second in X achieved our Once previously second investor every given we expectations XXXX. And issued history. share many our outline exceeded management, cases, for XXXX. quarter our revenue of exceeded EBITDA second both announce and of our highest very quarter our reductions, in corporate adjusted recovery in to recovery our the that QX Slide guidance of QX EBITDA. revenue that any are expense in second again, exceeded call, we the adjusted we expectations, and your our net particularly draw attention proud quarter I'd range entire announce pre-COVID we where expense presentation, in generated quarter, levels proud to the company's to like and

that me Let again. say

back of on Just the pandemic, track. one after are year we the start

EBITDA than when we exceeded that I subscribers momentum, up in of XXXX's, are adjusted plus am pick to watermark. XXXX EBITDA setting EBITDA adjusted all-time continues that most our And net QX live is and history, to adjusted flywheel drive set another we high previous X,XXX events, million $XX.X with net approximately EBITDA records. EBITDA subscriber QX. record Helping performance, QX's Interactive's in profit excluding strong high ads greater adding very Our company Townsquare X%. all-time by share also adjusted the proud

a XXXX and QX our on XX% result, subscription plus Interactive's QX of revenue net XX% year-to-date company's Townsquare basis. grew As a approximately is over now total revenue

made Let XXXX, XXXX revenue very in subscription good XXXX's revenue quarter in with sequential XX% strong of improvement me In revenue XX% Townsquare. XXXX, is show reiterate second continued XXXX, plus revenue. an grew achieving Events XX% Yet a net performance, which our to of net view, in ago a X/X when outcome. of of revenue nearly limited when QX recovery, business, revenue revenue, total revenue, QX. net XX.X% to plus That's for revenue when was that. year full QX QX incredible monthly a up remained a exclude the my Live we net Broadcast reaching result. a broadcast adjusted compared Approximately second revenue QX from with XX% Continuing down you negative was in near total differentiator XX%. attributable XXXX quarter, our EBITDA and our to broadcast true recurring

As and recovery XX%, plus XXXX revenue revenue XX%. a business. XXXX's by revenue quarter been digital-first plus digital revenue digital second to In digital XX% total, Townsquare company, levels the with exceeded has Interactive our plus digital primary driver revenue our of our advertising

to can As I our our be credited mentioned strategy. digital success earlier,

very and Although a to XXXX. of became we company digital-first Townsquare in roots proud DNA are local radio, and local it in our proud radio, are call we

ensuring it Digital-first product to local means how first It and towards of future. on is content being relevant help physical investment digital and presence executives important storefront to strong that on personnel, will does to internal that our account taking mean? as accomplish are is development means be in air. engaging, SMBs and them digital-first platforms in in there. revenue of educate solutions means engine near grow X tools expansion. internally online for that. is have actually Townsquare what that terms digital broadcast as us content fueling digital the acknowledging represent solutions that how the revenue means Digital-first our digital So and externally them we they both digital majority company and priority also business, and the our it growth company's bring and when have get will our our future. local both the our a It out digital a that that world-class our means And has And advertising to online their solutions, that they the and opportunity also today will

and net and business. ending our $XXX revenue First, of digital solutions, digital from XXXX, AMPED; first Townsquare second, Interactive, our digital these X totaled the total, advertising over include June XX, of the Townsquare in revenue subscription XX our Ignite solutions revenue million streams half Townsquare today XXXX. XX% total In which marketing contributing months

net from total years on growth Fast you basis, digital our XX-month of several XXXX X million can years on X, X has was the million years. trailing digital we digital As in million see of XX% $XXX revenue. a under levels. Slide Only our over primary later, revenue, just of revenue and generated forward $XXX the past revenue digital over increase source ago, of $XX an been contributed

Interactive of double-digit grow years. driver $XXX expected strong in XXXX, growth is revenue from forward, year Townsquare digital a revenue growth. a of of we $XXX digital million anticipate an across in to full that digital as X Going big million platform our we over

worst revenue to its on $XX Interactive XX-month $XXX Townsquare trailing it the profit of of profit to the expect year even X XX, X digits has trailing the launched annual pandemic. also grown June basis prior a million of as basis every we in each We from over XXXX, reaching and in a on within with reaching double quarter, versus grow quarter, of million profitability a Since to million And $XX XX-month XX% today, each since revenue revenue during years. every margin. grown and has XXXX,

if on which were revenue to noted I value trades be XXx a standalone at currently Wix, Interactive to As Townsquare have on comparable company basis, you multiple. at would calls, one trailing look previous

valuation that would hosting and important even online reputation of a suggest small a business today. to and Townsquare you where e-mail similar much, for If discounted social appointment more valuable much directory monitoring, media multiple scheduling a providing whole a or an applied is Interactive Townsquare services, multiple resource retargeting a north basis. management, Townsquare traffic and Interactive, owners, trades engine on organic optimization solutions, services, development recurring online monthly e-commerce website mobile-enabled search and marketing services, services, website as

to quarter quarters, have net each XX base. at past our subscribers the Over subscriber least added XXX we

our set earlier on the with QX, in adds are I the subscriber net X,XXX we net an history, all-time highlighted subscribers. call, that adding approximately very proud most As record in we

repetitive, and monthly XX% but our subscription limited businesses medium-sized markets we resides of digital provide U.S., marketing As markets our in to to of walk incredibly, Townsquare size demographics. the importantly, local market. like once of the still Townsquare additional calls, of June the XX, radio approximately the underpenetrated of being At through small solutions subscription incredibly again shared within our this base importantly, a similar basis I've footprint, we Roughly market stations. outside addressable within client XX,XXX of across size radio operate including, on risk today. the to, earnings I'd not and of which current now on couple local last Interactive markets vast as you local Interactive's and is

are of our a you will over investor XX nationwide. turn million that would XX If little you see there to businesses presentation, Slide

over the million focus and Interactive. Given which cities, then businesses, we gets on on that us few businesses. SMBs put markets XX.X target outside We to a top XX important for that filters additional Townsquare XX.X we very million the eliminates about

The businesses employees. with fewer first XX filter is or

or lastly, estimated are revenue ideal of include second businesses. businesses owned including the annual types and our Interactive. filters, filter to have those After of exclude with And a we that only we is only solutions, At is private for incredible incredible, target a determined real equates of X.X companies market total addressable We estate less. Townsquare per banks equates for for billion Townsquare incredible, agents, today. independently that certain over other fraction of Interactive, million ARPU, businesses. then types an all fit million $X month not The which There $XXX small applying to upside. of that capturing are $XX we customers

of Townsquare the planning second the a location half this XXXX. to likely to most capture opportunity, in first United Interactive are in States add We Western

the location Charlotte subscriber in and growth, as to that Townsquare location, you with close recall, is Interactive far thus the size over profit remotely. given has Throughout currently growth fact, XXX our success those which, for and had believe Coast for the virtually, us have and our already team Interactive of we hiring working started Coast working are pandemic the Townsquare employees we dozens now location, during Ultimately, staffed members West pandemic, will employees. in revenue, In we be may West delivered XXXX. accelerated

net Second added year-over-year quarter we revenue record plus amount a subscribers. of as increased XX%

profit XX% at quarter Second net in and to quarter at plus up XX%. least we XX% adds, XXth over the net increased profit QX. plus for margins XXX add In consecutive year-over-year, X,XXX approximately revenue likely subscribers add will year-over-year with most expect QX, with

in approximately XXXX, reminder, coming XXXX, in online XXXX, additions add subscriber subscribers. we beyond. subscribers. location over second XXXX, our will XXXX accelerate a half added of X,XXX that our and As in in we to expect net we X,XXX expect With net And net first the

XXXX. plus As QX plus I was noting XX% worth And QX noted XXXX. XX% digital grew compared to is QX advertising in revenue of it levels up over our advertising suppressed digital thus, earlier, revenue

audience the for regional growth revenue local outlined source than our right hyper their an Ignite $XX with Townsquare Townsquare Townsquare, technology from of on significant Ignite ability advertisers, customer million target right providing Ignite, I driven time. at to XXXX more and been digital message programmatic outstanding has digital less growing the Slide drive advertising had to in our reach by target growth. XXXX. $XX and helping digital million platform, a advertising revenue data that quarter, first them XX% the than to in revenue of of As combines plus Townsquare our Townsquare X, AMPED. third-party to is for audiences and Ignite

strong Townsquare own entire we with is just multifaceted, Interactive, is success yet differentiator that Townsquare like for solution. Ignite one Our us, Ignite the

from full-service which and retention All the a essence, only creating message end-to-end of and our in-depth digital of creative client higher detailed is, from client in-house. to better the the client's is customer experience leads the and ad the the optimization control reporting, and offering activation tech right view. customer We client the to Ignite therefore rates Townsquare in in to agency. a relationship campaigns

a as in confident to X come to trailing grows revenue XXXX roughly million XX-month that a years stream We XX% Ignite our a are million from fastest-growing and $XX will profit be basis revenue margin. $XXX on X and in the years likely to within today,

over growth XX% on XX-month QX AMPED is our of generated advertising component a which of on Townsquare of revenue our a owned half and unique key together AMPED, first a XXXX. highly XX. which revenue monthly made million basis Townsquare up operated of XXX digital mobile other XX digital brands, network websites engaged as apps, and of visitors trailing advertising on The June of of digital is of audience million delivered $XX plus XXX the in a basis

communities our platforms the to turn audience During levels local stay pandemic, to record and brands informed our be digital all-time local as experienced our entertained.

continuing normal, successfully to subsides to localized, return pandemic we for audience audience. by curated and provide life starts content to this the As relevant have retained our

the local pandemic social profit in our create also first DJs, creators, of and States. the board, digital very, United month, XXXX, every largest XX,XXX digital recovery. who top making over and during Townsquare each local offerings influencers producers content local importantly, the half in on-air strong our and one In well content very fact, the Across of of line and driving content performed of our pieces are the

earlier, XX%. broadcast year XXX from most QX revenue but to revenue ago, a during plus XXXX, the steeper broadcast XXXX, In as up broadcast advertising negative radio when pandemic. was decline was the down mentioned sequentially, stations improve QX a broadcast on XX% our impacted I in from was As continues local

stable revenue suppressed rates, supported months new in who growing will us from have not defined among XXXX to levels, our We rebound existing advertising activity, business by the and expect advertisers that record advertised with as previous broadcast our XX optimism continue base.

markets that advertising live to recover, To also which yet shortages and has advertising, impacted the by businesses, Canadian negatively the impacts We advertising, Buffalo, chip auto expect further categories including and Maine ongoing from border demonstrate I'll recovery, industry certain in industry's XXXX, our tailwinds included been in some the our have closed. where which by turn remained are metrics our radio published QX sales in XX In on which broadcast your Miller spot total by X percentage Kaplan markets and Miller outperformed sales Kaplan, percentage points to points Slide measures. X. by that local attention Townsquare spot event-related

are revenue. Additionally, not broadcast. of only in share revenue expense digital, both that These digital, industry Townsquare growing its total includes in Kaplan spot but our to in results demonstrate also doesn't also revenue, total also we Miller is local outperformed the Townsquare radio. of market total which and outperforming peers, revenue digital is the Roughly the but have half One other. come is of at true, generating SMBs local as handful we budgets in us a we the local and our with better revenue We XX% marketing hosted of digitally, events their broadcast core $XXX,XXX second of the quarter, well. live margin. profit, the encourage million $X.X profit solutions a fact. opposite digital The we trust because business in in do better them to The provide to do in

events time events, On are profit we Collins, ever, revenue and consumer call, and Taste earnings just Red highlighted set Fort the setting at an and for record ago, demand even we in revenue Barbecue record profit Tyler, our operated well. the we we of set weeks Dirt both strong the an Texas, of late have May. far, all-time limited number that all-time few out all-time for days certain all-time sold first early July, which last In that Festival the records. a therefore, and hosted as seeing are So in we

of continue will to the until event will schedule not XXXX, live to we schedule return events ramp live half but XXXX. of our for normal We up back

approximately and net expecting live are revenue we to roughly events margin. XX% of generate a For $X profit million QX,

approximately So I revenue. approximately major quarter digital of let Interactive, our XX% a our recap revenue our outperformed performances second net moment component me take Stu. and all-time our recurring both company high X% of before by to Townsquare plus of $XX.X by which nearly an the all-time excluding company revenue is our Interactive's events. our profit, delivered on X,XXX XXXX subscription net XX% of XX% of which revenue million, now EBITDA. the total contributes a subscribers in We to expectations adjusted high platform, hand driven across revenue call We the Townsquare total above plus over incredible digital on added total net an was for QX EBITDA live quarter. and

which X.Xx Our adjusted are now respectively. EBITDA improvement in in decline contributed and net and significant leverage, our total X.Xx a

to achieves improvement in close greater see Because strong our our XXXX broadcast revenue the have away. EBITDA business, performance and raised over brief Stu, to we outlook, XXXX is full pick much, net indicating our who's levels. is guidance, Stu, turn and in results live We that to continue XXXX pace. recap, significantly our to discuss financial events levels our our much and business that of take to going up I'll year positive that adjusted now With call detail. it starting

good previously and revenue $XXX.X difference you, that over by second results careful increased that quarter due year the total, year our were Only period and range depressed $XXX revenue pandemic. forward a Thank everyone. reporting prior of ago, a quarter million. $XXX expectations, net XX.X% year to driven we expense makes? Bill, management. issued year-over-year today exceeded the What Fast to strong improved million second to morning, revenue million, growth In exceeding guidance financial our were to financial materially and results much we're reporting one

guidance issued an $XX.X of record. adjusted setting $XX company to $XX EBITDA quarter previously increased to million million, million all-time and $XX.X Second range exceeding our EBITDA

our to revenue pre-COVID declined of to measure of is the X.X%. adjusted results. and QX we QX XXXX compared performance growth them these EBITDA quarter XXXX's year-over-year second X.X% XXXX by exceeded XXXX relevant compare QX's net Although the EBITDA adjusted the trends important, are XXXX believe most to

However, second versus profit year. this of $XXX,XXX of $X.X note the $X.X XXXX events and it's the of of important to quarter second generated revenue of revenue only of quarter million that million and live in profit $X.X in million

supported the and Interactive's to XXXX. to now of and to and and Net subscribers run by margin in revenue growth revenue XX.X% the advertising from ARPU showed increased Townsquare XX% year over events, compared digital Interactive's Interactive compared monthly Townsquare XXXX. to the QX live of second rate a revenue the improvement revenue of the was quarter the as the respectively. on XXXX to XX% a their X.X% increasing composed Interactive's XX. compared was increased revenue quarter, year-to-date as subscribers. $XXX, AMPED profit net QX net of compared basis, Townsquare subscriber profit second months Townsquare revenue advertising first added advertising X,XXX In XX.X% to net approximately Townsquare of our prior of XX.X% XXXX, increased year. year-to-date as adjusted depressed count approximately of as second June XX.X% significant revenue Based compared growth addition Excluding Broadcast year. Interactive's period. the as number net record year. of revenue net quarter X quarter solutions COVID delivered of prior Townsquare as over In levels, Ignite net second X.X% on as and to declined XX,XXX only the prior $XX million year. an is And quarter XX.X% all-time XXXX, compared subscribers with prior increased in to This compared EBITDA as XX.X% increased net compared XX.X% profit increased prior XXXX. second

XXXX. compared months increased X of year, XX.X% advertising revenue For net the the first to

as the our operating Second over significant of year or expenses segment quarter prior expansion high leverage. result advertising to million, operating only a X% advertising our $X.X direct margin in leading increased

million increased advertising by strong XX.X%. XXXX margins of quarter profit from levels, Second with $XX.X

QX but In solid significantly over quarter XX start. that Second activity. a XX we events, XXXX, hosted in marked QX, events, time a any had the first year less Live meaningful live we than Events

schedule plans of the events events $XXX,XXX, in Tyler, are profit of We Music as markets events that was the we our QX a sale events Boise. in in in XXXX, and to to the with more to normalized return each non-music profit margin. live Idaho's up the XXXX. event The and in remainder Garden gradually ramp Wyoming as million & events yard second hosted Red carefully live opportunities range $X.X XX such evaluating XX% for Dirt Home music-centered In and from we'll total, Show revenue was quarter Cheyenne, Texas largest a in Festival live Barbecue such

do is fees. The year-to-date, quarter a earlier, as corporate As and or the want expenses that $X.X expense to million decline declined meaningful each million second due Bill decline to XX%, declined or to prior corporate very $X.X our corporate spotlight in noted expenses I year. in XX.X%, a professional compared primarily

full currently year, million. anticipate $X by For decline will corporate the we approximately expense

entirely up Second This expense as X of to million increased issuance annual year prior $XXX by year, this the quarter or which first our XX.X% expense to due XX.X% outstanding higher or is the the In $X $X.X increased debt. due January replaced interest secured our million of $X.X was primarily months total, compared of rate. million and interest bond for year. X.XXX% million, interest the in the to previously approximately our

expense almost elimination last year's million is outflow totaled perspective, increase offset annual which interest However, $X.X per in of by a year. entirely the from cash dividend, the

million of net benefit or our is We $X.XX intangible the We'd like shields to or $XX.X of the attributes, income to other as amortization any per including remind to the income tax and tax NOL second $XX.X second diluted the income $XX.X for face loss loss for in federal carry-forwards quarter substantial million included significant purposes on statement statement of diluted compared of provision that or a related a $X.XX you quarter, XXXX. net For GAAP net financial share million tax maintained assets. the share $XXX per only. taxes of increased to of

from first cash In increase generated approximately of X XXXX, million the $XX.X we approximately we that be material cash will XXXX. believe to year operations the million, months flow from a taxpayer prior positive continue year until period. the not $XX.X We of a

used approximately to capital issuance the the first equity our in accretive of of incurred million We fees and significantly $XX interest of with notes. a Townsquare quarter approximately during also senior transaction. million Oaktree's We associated $XX repurchase XXX%

year-over-year continue $X.X X the million We the cash of XX% capital we in balance a manage QX, declined on million. trailing with million carefully first of months In EBITDA the quarter to to debt XX-month from our $XX.X million and the end $XX XXXX. expenditures, total a of approximately which total, sheet, of ended $X improvement with of $XXX million adjusted

and Our total has a and X.Xx. and and X.Xx respectively, improvement net of leverage is to X.Xx QX's material declined X.Xx over leverage which net total

the strong cash operating generation levels. business these Given confident we abilities, cash at our are

forward, through investments reduce with business net capital will and local in internal our allocation medium-term organic to net leverage leverage be Going in invest low to goal a Xx. priorities our our the

Turning to outlook. our third quarter

$XXX between quarter to revenue and XX% $XXX approximately We to million. to be XX% expect increase million third net

quarter comparison, third we represents XXXX, the decline which a to of to relevant X%. compared a is As this more of believe X%

between compared which third on to million $XX.X a expect to decline flat XXXX, low be EBITDA on quarter $XX.X increase to and the high We XX% the of XX% X% to end. end million, approximately to represents means adjusted when

the QX, levels would profit. noted of which our again goal quarter achieve mark earlier, As levels Bill EBITDA consecutive in XXXX of achieving to XXXX fourth is

adjusted million, to XXXX's million, $XXX revenue. equal $XXX For all of XX% we XXXX's and represents expect would which And reach forma of expect revenue which pro XXXX, exceed adjusted we EBITDA possibly EBITDA. reach net to

we With a the call revenue relevant which believe XXXX will events, XX% and achieve over revenue now EBITDA back net live that, I Bill. turn more Excluding comparison, to adjusted XXXX's exceed of by is XXXX's X%. will

dialed done, and Well Stu. who morning. in to this everyone Thanks, you thank

of always, success. engine am like strong the Townsquare's I'd year-to-date who optimistic instrumental revenue we in the about million, on who path to performance recovery. are are on team, are the level full incredibly Townsquare's very will I of be a As EBITDA adjusted verge and future thank Townsquare our and to future proud that and XXXX's achieving XXXX, to behind we $XXX our

and to in our continually within digital digital-first our like net we X reiterate a and that total revenue As each the that million is will $XXX I'd increase day. every company, propelling accelerated has years. and revenue forward growth us digital And digital to profit expect

we say And any with operator, for please that, high As internally, how open high. is questions. call the

is NOBLE Capital Kupinski [Operator Markets. first Instructions] with Our question from Michael

and first all, strong on quarter. recovery And great congratulations a a of

questions. Just a couple of

You mentioned Interactive's were that outside were you the Townsquare markets? your came in markets. subscribers subscribers last derived that XX% percent from percentage of of and talk that radio from the your outside Can what about quarter added

to you're thank well, the you Hey, you consistent. Michael, very much. Hope good hear from it again. was In quarter,

So the of the and earnings were outside -- we call as markets. year-end last I think well, on XX% our local the at probably

as well. out news to scale continues nicely So the good continues of for in-market us is nicely, our and quite our to scale market quite

be adding as much XXXX. where outlined that I it X,XXX with prior business, quarter. we to obviously, excited satisfied I going. confidence But the quarter a obviously, in extremely as the the the before. an for investor be addressable performance in the of then back, was Townsquare just more deck, second think, hitting we're subscribers all-time we're our higher And quarter could our and that was consistent the at net added not than in of and and interview why it increasing really in percentage location, the there, total was couple investment So with pleased billion $XX in looking in market of weeks year in operation That's but couldn't Coast our half accelerate going that this into the high noted to it in West the particularly back Interactive

bit any subscribers? subscribers. are the Amazing that you seeing you churn talk the any amount churn noticing you of increased for difference added X,XXX or about -- in little Can a over

Yes.

the churn business. had really have we've to the in lowest continue We ever

of prior the one for talked think, earnings the spotlight importance presence strong on SMBs. a benefits think the about, digital a I is I we of calls really on put pandemic

and churn is increase adds of a expect velocity lower as net sales as invest continue and we our to continue of So combination that to in. well

of unique general strategy customer you opposed know, the customer to support as benefits a have customer phone e-mail. we manager very we as has business a success and service is One a platform each have, number or where

when technology as So that's of the think and results that noted and is a organic. we're growth this our you obviously also it's in-house. built really factor have products believe with digital the general we providing we one-to-one are particularly board attractive these we team very incredibly organic Townsquare. from here solutions true is level and top team then proud focused XX prepared we we're competitive I just remarks, in technology consulting have digital and the have we are the standpoint, then in the a outside and technology in markets, differentiator world-class sophistication And pro built pleased a at All that fact and across forma all the of landscape quite I the and platforms,

in you. you office? up Got And Charlotte that have do you the second how employees the will in long think your to take to it ramp level

the in Charlotte. the expect same operation Coast West level I on as out of growth had we

and now. literally X north we're we As XXX of a started XXXX, in reminder, employees with

West once anywhere employees to the XX add we're as add running while So to Charlotte from XX and expect to well. an I operation continuing basis on annualized us in up to Coast also

XX hired during months. West Coast people I in of the last prepared dozens the we've remarks, the for As already operation noted

think I our variable the a year other for and local of stated, Interactive corporate this when XXX(k) other -- the and the cut team on expenses ago, really year our subsided, and things nature, take Townsquare were strategy happened, difference makes, more offices a time we as to a said so advantage like to what pandemic our being that. hold well things said, in at level and he sharing is, that one in we were competitive and the whenever the of I was that would that that Stu think best advantage be consciously expenses the we

to out back going aggressively, X of I -- call to in that course So pretty be if question, happen people, And years will people, your adding year. at expect XX the months, been and back half throughout last XXX hiring over XX we're in continue XX this original the of pandemic there. to XX then we'll the to over the we've it,

Got just you. one question And Stu. for

restrict prospects capital is doing then from to just you're you're your to mentioned that the spend of bit In plans a little going increase of capital anticipating that allocation, of repurchases? are covenants bit. Can spend Are also you of little you kind the what -- the you share for And any investment terms are about -- a internally? nature that there talk that?

Thanks, Mike.

going had said So investing as forward, to businesses. first priority our Bill and we’ve be going our digital specifically consistently, is mentioned, businesses, our in

flow invest to our our have priority first Secondly, We in to excess If best equity. watch think plans we’re time, obviously will and use reacts money, the use no of delever. free back money But to Board buy that we’re formal businesses. a it’s it plans the don’t and where it. is stock cash digital really going of about at way aware to any it, our today, we’ll the in

from with Research. question Barrington Jim And Goss our next is

take difference terms a dealing a geographically be any people run markets what what areas? the I versus wondering to versus the the offices, can a in Is pursuing Interactive. would Charlotte was radio was in have open. sales what of at it is And couple Western newer that once expect the owned on the terms enough business you the great where in there non-owned? all? rate doesn't impact? in approach line for Michael difference of is separate salespeople other would really Is the And questions office like I what is Townsquare of pursuing to drawn

questions. All Thank great Jim. you,

any. obviously I them free I but all, think feel to on up follow captured So

from So in the noted on then terms there the expect the of on prepared hiring. remarks and Coast our run the is office half rate, -- in call West operation to continue open fully that in on the we XXXX I to scale first of as operational, so once the

XX add to expect fully operational. terms net that know, consistently, I once X,XXX, baseline fully terms added minimum adds My the So XX% months that. so we're And say, as once call of at we you in of X,XXX of that next probably operational least a expectation, our XX XXX baseline, on years I fully a increase adds. we've operational, in will be net quite to that few by would for are net in now, substantially, being

In terms of full-service to a so have geography, going we're it's really -- more office.

So all disciplines West will operation be the Coast on hired just in like Charlotte.

in customer technology essence optimization, that So that areas. people, people, that includes specialists what we in customer design includes call includes each engine search copyrighters, support, people, everything that salespeople, that includes service includes

continue standpoint, almost that we're to top I have there's addressable outside located for to customers, focus companies differentiation a really to been employees, will a going on Townsquare important continue that on XX the focus an the us. with markets. $X of or in target obviously, at incredible to so Charlotte, will West Interactive as are less The that what XX, from gets We're so handle million given million coverage, That's Midwest less That as XX outlined is that revenue. to we've QX Townsquare target XX,XXX than fact time deck, us customers happen under those vast partially in to perspective, office From shifting sitting for market. shows think $X addressable under end ideal at more Interactive. much. customers and we're do subscribers million the service the So that market from of just time won't $X Slide the sales Coast, we going up to we the ramp that that change the customer investor for it's there,

States. that both that. how will the limited. United So offices in greenfield It's won't they to calling for be be limited they such won't around terms do geography They be sales, of

increase local The is which they it question, salesperson works continued QX. -- specialist, have we and your base way an team world-class markets, that set of the a is outside we've partially sales sales of a do subscriber part are the our third in of base XX% well, driving very to we record in subscriber to so. markets, that the of driving inside calling that's as our bring The astute, In to allowed noted. XX% see along who we a that's there that wants is are what's if

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now question-and-answer And call the for we Wilson end to turn have reached the of Bill the over session. closing remarks. I'll

moving our profit forward and as we year confidence out momentum the team, $XX with on our closing the a so we couldn’t you went questions, of our full forward couldn’t to $XX half the have clearly forward we of by Appreciate to little continued our basis provided the today. guidance that our year call million. looking results know by last a lot shared that in increasing We much Thank of Townsquare call, longer. since the results XXXX. guidance, be net head much. proud deliver million be the a guidance of terms of proud revenue into Very increasing more back I more look

Stay you for thank dialing all So well. in. stay safe and

for disconnect time. today's This may this you you your and Thank participation. concludes conference, at lines your