Townsquare Media (TSQ) 7 Nov 242024 Q3 Earnings call transcript

Good morning, and welcome to Townsquare Media's Third Quarter 2024 Conference Call.

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

everyone. Thank all thank morning. for with you to you, reconnect and It's Claire, joining us great this

three directly in last the business our improvement very with our third rates revenue sequential across with share you results to line We in each are pleased we Townsquare's you reflecting are shared that expectations segments. call, on with of growth quarter

slightly we revenue a step as will net to can meaningful forecast build net we increasing one returned In growth moderate small on last with that one equal QX matched to but to call. laid that net we QX's out continue quarter upon and and the a also EBITDA Adjusted addition, year-over-year, declines be growth our continued we revenue again, our than greater expectations rate. in or to third will growth revenue and

in As quarterly the $XX always, our par, high-yielding cash applied we and also million meaningful million cash stock over repurchase bonds $X our quarter, that third $X our our dividend. pay below of differentiated business model million of and generated to

net to of prior year third $XXX million of slightly midpoint was Our at guidance up the revenue range. quarter the compared and our

growth, Importantly, it anticipate revenue sequential was the quarter improvement in well. net and the improvement quarter sequential in fourth of as fourth we

I'm programmatic projected in that would our our forecasted last quarter As slightly also advertising as I'm sequential third revenue our would QX, the growth earnings contributed line forecast, be I rates for advertising plus you digital to grow the net half with glad a Advertising our X% X%, had better improvement coming Interactive is Advertising main X% first driver very on the in acceleration to as programmatic in our which did, anticipated, Digital projected, quarter revenue of growth at slightly I and share which very advertising significant meaningfully plus digital We're growth it to returned plus growth, the year-over-year in political under and momentum growing third strong that, to year. A I call. in grew than fact, total better that that digital did of revenue the others And deliver also net from would QX. XX% dividend. Townsquare's apart was with to QX's sets like local do, executed and third our we we that from and even year-over-year, last pleased broadcast value may recall, projected sequential debt delivered what delivered improvement the in platform rate. growth shareholders XX% flat right we've quarterly In report revenue from done revenue net through again, revenue QX's we and up high-yielding that from on sequential us of a than building Digital our pleased share we that report, up performed on plus broadcast X%. call in paying in repurchases a and year, essence, to expectations quarter. Townsquare our strong all Digital media. said just a while reduction simultaneously at

half was Digital more the is a assets, Slide the and a when can't XXXX digital XX and was was cities total and on thrilled point profit profit the longer top through founded our team we into was companies by the to total quarter As is recognized for enough. the media also media giving be and of revenue of highlighted performance client with and went spend rates. the This campaign insights, that standout to only nation and brightest Lawley entire advertising digital our first announce period. of average. to radio which the a with and our and third proven the execution owe in accelerating more Association company distinguished but on higher months a in of for And could companies, it industry I'm best proud starting we our not and programmatic the ongoing higher year recognized peers, more decade National solutions, retention a in-house, are work not of control nor Overall, relationship, in Townsquare often Resources. I company Advertising being Ignite more growth. outside Townsquare public XX, and believe and than experience, has it XXXX, digital both which the of was client company the entirely when Townsquare ago. Townsquare for and a design, local that brightest and no one as and the differentiated sophisticated state Business team, we XX% buying same optimization unique focus in pitch, U.S. then from than Ignite customer our world-class Todd in solutions. the our XXX% make highlights it has products local revenue success client also third transformed for and media Xx to their digital the our X a for in validating impressively, we broadcast as reporting digital-first been strategy, us platforms translates best better markets one of evolved row truly of average the

continue our the business local competitive digital our the markets. are combined to be in-house, advantage is our confident any ability breadth very tech top company. in in Yet of our a of the our capitalize to with market. our this is strongest advantages platforms and in We engine in competitive on our pools grow maker, cities outside quality a difference in size Digital first-party the growth amount to the significant solutions data driving Advertising and Owning of XX, it

about which excited most segment in our third-party digital Programmatic where are we be have to discuss I'll makes in particularly confident revenue the and potential opportunities, of We continues up our partnership business, the growth Advertising stream today company. Digital fastest-growing unlimited about factoring of our shortly. and model, programmatic the when XX%

confidence had to digital are as we broadcaster media in our broadcaster And I'm discussed platform capitalizes earnings across the single which expertise a exploring success, gave programmatic Partnership the knowledge, division The who white a on and not operates on with this SummitMedia, growth from where market. a the to programmatic advertising local advertising we this continue last of single momentum in in learned XX, hold success Townsquare created properties label local outside the our another X Media call, space, Ignite's us last we our and year, and do white say programmatic we trial this avenue of third-party insights digital Given trial markets. top our competitive excellent down labeling announced solution we launched to the in path. we advantages a Nevada we broadcasters thrilled an markets with we overlap. Earlier partnership strategic month, to and markets

world-class onboarding including finish team. to year's expect We for end, their by sales their providing training

this of digital context digital overall and margins, year, expect this what we provider the which to represent, the advertising division, partnerships of programmatic throughout top are potential in our Townsquare of Media XXXX, excited in support very the campaigns. customer modest-sized over which and Ignite believe currently buying, about healthy we sales broadcasters optimization this digital While the chosen creative, $XXX to become in is agencies initial Partnership a model, the XX. Under and will year we handles very ramp profit opportunity is this the from outside to the be of all with million of digital revenue especially this opportunity cities in

acquire While growth this deploying allows to new enter and of instead digital entering So new using why partner our with our our to without to those instead partnership ourselves? of third revenue digital capital deploy accelerate assets, markets us model markets capital. parties markets

free then deploy dividend are other buybacks paydown such ways payments. capital as We to or in our increasing equity or debt our

partnering significant While we're early, revenue and us. potential other in potentially beyond Partnership maker with and initiative currently a XXXX believe difference in we numerous has growth be discussions this to and about the profit Media broadcasters driver with as

Digital plus our we from QX, X% growth in approach revenue revenue QX's further QX. plus to Advertising Looking to growth expect accelerate XX% to

Let me that again. say

driven triple rate. net if digital accomplished, third only QX's its I This than growth QX, revenue our with of revenue slightly revenue that quarter you of our Townsquare growth from Digital XX% Digital a managed of National negative Advertising will subscription which, of of accelerated be along quarter. In less with our expect the QX business. to path XXXX's Townsquare rates to strong plus XX% of represented marketing the expectations very X% revenue, by QX, extremely quarter we improvement. XX% growth recovery profit am declined programmatic be decline in meaningful Interactive's was what we negative expenses XX%. Digital expected last to I an the Advertising ahead shared third strong growth business, that as call. solutions a year-over-year We approach continues rate margin profit And Townsquare Interactive's expect XX% decline sequential improvement be importantly, in share Interactive, on pleased slight would coupled as third our negative was QX's growth such QX's in year-over-year decline, half decline also

revenue net revenue Townsquare year-over-year We quarter is to expected fourth Interactive's that are growth. to return share to pleased

are Townsquare scale improved in length Interactive management very and a is Interactive's business. we strongly We detail last We a difference described I and new our our will that pleased and call. product powerful continue to believe grow on be new the which offering, business as also with SaaS maker very at and Townsquare platform

clients we're proud of a of are We management we platform Slide bringing am them on we with outlined growth smaller their and to sophisticated presence, opportunity are are are customers superior of an for including partner long-term those their local approximately term, X Townsquare only footprint do operate market subscriber runway XX% to that XX,XXX approximately and offering, significant also so. our the our of scratching as XX, which X nearly outside is and target confident business have existing to subscribers product In us not addressable digital with nearly customers that base, success. our and set our are long SMBs media we surface. With we I confident effectively. We're of scale up Interactive only long a million more million helping new profitable market business with markets, the end sustainable target the national ahead at helping QX,

flat that a development broadcast reversed rate. Unfortunately, sequential positive growth broadcast the was year-over-year, improvement advertising quarter. course the and was advertising revenue increased a headwind third national performance our revenue slightly half's in QX's third the first Another quarter from in from

a is In of the our team [ quarter. proud our be of the growth share but the QX, content will very and of currently radio $XX XX% radio which outperform expected Kaplan market national differentiated connection audience. profitable, achieving share of cash Looking We expectations today, million asset an in is to broadcast. continue initial as local engine, to our on Overall, XXXX's importance reach in key flow as what $XX behind of $X.X the political political it to to generated be steeper and again local yet point local to important invest only an our estimates. I meaningful our million with is third a properties, company. growth. One believe over national the and books business quarter, our and broadcast will profitable our quarter, it in digital mature once we to to decline ability million. we gaining Based will under million we view generation. a digital we cow cash flow extremely according am very much demonstrates the growth is Stu drive important in I'd ] this consumer fuel also industry model, be excess to business, growth businesses believe of our not last benefits to before an for $X.X with we market revenue. We decline, our unparalleled of sustainable now further revenue, will local continue valuable significant to on Digital Townsquare's differentiator our third the like Miller in to QX handing make significant cash is continue aspect

cash $XX on execute our at shares, back as million remain are equity our digital share and flexibility buyback engine $XX we evidenced to can that our generate million buybacks for September in to repurchase flow, continue open dilution, affording and very million and and current attractive our buy September of very deliver a growth $XX market. Year-to-date price capitalization sheet, debt our strong cash net our digital as financial with and we XX, all of ability rewarding shareholders our balance hand we of bonds and granting the while through attractive our October, $XX by avoid in leverage million dividend of option We strength our in investing us returns retire X.XXx ongoing end confident to invest used an us continue growth an our and cash yield. With the and to at engine the shareholders. to in cash shareholder of attractive of of pleased we

our on shared B+ of B Global I citing S&P credit metrics. from performance in our our June, bonds and As last to upgraded call, their rating

set we're forward solid gearing are a more when momentum updating importantly, up XXXX and building for report to up we're refinancing, which As our you we and year-end we looking March, upcoming in success. long-term for

internally, through guidance. go we As Stu. away. in will as Take our Stu is provide high as on update how an now detail our more All it results say well yours, high? And even

We're everyone. It's great our Bill, report revenue today. speak morning, results Thank adjusted you, good quarter and to guidance. to to met pleased our third you and that EBITDA

was a was is of increased $XXX,XXX to the declines. returned revenue improvement growth XXXX's quarter $XXX.X quarter quarter from our million. That's and million. in revenue million, $X.X sequential range political of over to or first $XXX second approximately and million of September, Third just revenue million, $XXX the which net above In revenue midpoint QX, million $X.X and X.X% XX% year-over-year political revenue to just $X.X through guidance

full political Although today, longer of on of record will we revenue million XX% north of million. Based XXXX's that be no achieve to stream will we highest of to which history books strong we hoping very the $XX on were XXXX, anticipate revenue $XX we revenue expect $XX year, high the less just in initial outcome, million a million, our of estimates to this but in this again reach than amount the that, expect year. revenue still that political political our all-time Townsquare's for the second $XX

Excluding X.X% third net decline. sequential year-over-year, improvement political, from quarter QX's declined a X.X% revenue

to $XX our year-over-year to million. million range $XX of quarter declined X.X% adjusted $XX.X within million, guidance Third also EBITDA

strength quarter. declined quarter Third stronger improvement Advertising reflect rates Ignite, momentum advertising, is as quarter a third sequential adjusted in programmatic Digital segment, as demonstrated and EBITDA and lot from which, in growth Townsquare first declines second the total, also Advertising, the of building quarter to our third QX the QX an from $X.X offset revenue ongoing Bill net and improvement Digital performance. in year-over-year, as in increased X.X% million year. In noted, National year-over-year, was prior Digital Advertising which QX's compared weakness up XX%

equal overall noted, margin. and Solutions losses demonstrate XX.X% and strong As Bill profit Interactive, to declined approaching or subscriber QX previous revenue our Marketing to the QX growth we from and QX third the basis. continued profit expect XXXX to also third XX%. growth to at almost margins in by in revenue remained quarter on QX's recovery Digital Digital segment Digital Advertising XXXX. Net quarter, Advertising year-over-year revenue a to mid-XXs growing QX in and X% profit triple, Townsquare due subscription net in the

approximately to XX% business. that were in at year-over-year. mentioned, prior strong we third growth revenue decreased Bill year-over-year expect to and XX% As X.X% to the return in are quarter. despite share we compared thrilled in as decreased continued our In the net profit revenue QX the year to the Margins investment fourth quarter,

year, revenue sequential slightly, declines. prior compared was Third again the second quarter advertising first increased up improvement the X.X% which quarter net as to broadcast from and

profit at Third year-over-year, is X.X% period, XX%. In profit broadcast X% strong declined broadcast remained but year-over-year. year-to-date advertising quarter margins up September

$X XX% other a comprised of generated $XXX,XXX. activity, the quarter, which year-over-year third revenue in approximately events live of Our is category, of million decline or

category $XXX,XXX, in The of $XXX,XXX period. other less loss a the which year had was small prior an the approximately improvement of from than loss

our driver reminder, a as Townsquare, events of not growth rather company. revenue be arm but should marketing activity live the for a a As viewed center or

other statement the the Our or tax $XXX attributes, income to you included our maintain on to substantial tax third tax including that shields of any for loss to amortization tax statement purposes per We of NOL only. We income share the quarter federal remind of and compared income face assets. than prior GAAP $X.XX more like is diluted million in related of a the financial provision significant $XX.X carryforwards diluted intangible share benefit $X.XX as would for net was year per or million period. taxes net

until taxpayer XXXX. cash be will approximately We to we material continue believe that not a

to quarter quarter the cash $X.X and million generated consistently cash of the flow As of We again from first Bill the months in $XX from of $XX.X operations cash we X emphasize, have like with ending third million flow million strong of in flow generation. highlighted, operations and I cash. XXXX, would

bonds that X X.X months repurchase the the buyback million price or an leverage an at including of our at X.X April including of in approximately we simultaneously worth through at $XX million back X and XXXX, outcome October, with existing forward debt accretive to on of refinancing bonds, of par At call. shares an close program, the the our have on prior to throughout million to $XX of $X.XX or repurchased look below leverage Since year, the retired million have approximately sharing end October. We share Year-to-date of next shares February was shares During bought we anticipate average X.XXx. that over our MSG also price reducing additional and our million plus QX, while first $XX of ongoing shares X. third par million XX.X $XX in of million net we worth repurchased quarter, you period.

invest product maintain teams, to in to our our always, content Interactive digital internal continue strong our digital priority in Ignite support to is sales, XX businesses growth technology, particularly As in We and Townsquare cities. revenue in profit support and our business engine. to Townsquare specifically our plan invest the markets outside our local organic and #X investments growth, competitive through our advantage that on top

on record earlier shareholders of annual to this payable by X% payment annualized our and next yield to Board our on as of dividend share will characteristics repurchases approximately to dividend million us That implies based $X.XXXX on has per of our flexibility support and our strong XX. allow. $X.XX continue an X% a approximately The cash us Our $XX year, invest share, debt per allow on give share to circumstances dividend approved flow equates opportunistically on we February believe pursue and raised X which an January share We of our count price. current our quarterly based business, basis. to current in dividend share

and will are our reaffirming net ranges We EBITDA. that come year for original XXXX within adjusted revenue our results full guidance both in

year-over-year net $XXX.X expect between X.X%. be to revenue to fourth implies revenue quarter million. a $XXX.X of million We and flat growth This

guidance This with million. $XXX be be million and be full our the now EBITDA million between fourth within $XX.X $XXX and that to adjusted and turn back revenue $XX.X over will quarter I expect Townsquare's We both million and implies that, between call original will EBITDA XXXX Bill. million to ranges. And between $XXX year $XXX adjusted million, will

made be We Thank of the you, each today's QX to appreciate for conclude this progress again thanks call to on it. morning. updated Stu, by you highlighting I XXXX. have in Townsquare's and to results greatly the taking want time we

that find model to the extreme expect that we in-house new differentiated and has to Advertising our the avenues earlier. Townsquare demonstrated Interactive will to new revenue I sequential growth, growth strong weakness, in deliver growth revenue return in and Digital has continue can of Our national of including face partnership discussed advertising to QX. platform year-over-year we capitalize growth on returned strengths, even

mature profit. cow continues advertising to platform market broadcast Our and solid generate gain share cash a

We And Townsquare and our retain and debt we and our dividend, the revenue, operator, the to questions. confident moving high-yielding our returns day any execute opportunity to and importantly, efficiently value line future helping investors flow profit I'd all that, for ability to We and the payments the long-term entire take potential and shareholder this equity work in maintaining at leverage current communities. With repurchased open time, and build their attractive shareholders. a thank have like partnering in our we are again, future months. Most hard through cash net well-positioned delivering team to dividend to clients are reduction, financial in net their coming share passion forward, refinancing for growth, and please repurchases. this year each while for flexibility

Instructions] [Operator first from Capital the Michael of from Our Kupinski comes question Markets. line Noble

national back? National indicated shift you national of And Bill, digital, broadcast just ever think and was do I'm Digital strong of you of -- first that in all? that national that that spot, in there's wondering, I And broadcast to couple comes wondering deteriorated. A spot a do the think but was here. terms questions you

I'll to thank for and the your it question. back you for initial additional Michael, you morning question, throw good Hey,

it in down noted, million. still actually, QX, National think was -- in Digital, $X terms I was So as it over of Stu

on noted we in is our what plateauing forecast. based current So is QX National thankfully, Digital,

So in we year-to-date in decline flat terms broadcast in a Digital, that better was which to driver of performing slight through the first call the QX. down, continued in of digits. was XX% pacing noted, is half that currently I it, much mid-single QX, did And year been QX. We of quite through QX in That surprised major down. in National as expect growth has share were QX, National National we over

So is an guidance for and pressure and unwelcome that to on $XXX into reasons $XXX by $X our tightened the to the is range the obviously million million. within development, of under broadcast, political that one EBITDA, obviously being and guide million range that between baked national we still our initial expectations but

are uncertainty definitely your was lot the is, through well others is, -- you right sure there think election. you as I'd digital? starting into Day from national I Labor major this after to question switching We from to heard a What think advertisers election. clearly, slow saw of I going do broadcast is commit broadcasters, would say the I'm say

election awareness. all were so moving Now medium, it's tremendous there back, expect for obviously, clutter. and was the of overall #X the so with is with But much broadcast Radio behind holding improve. Obviously, brand business our people we certainty political, the to clutter forward, us is asset understandable. which a reach

in some to is digital. from switch there broadcast I overall, do general So expect

that year, focused the this flow an back that for hey, you media we started business, without of and is cash you community the we've transpired with connections connection said, that a expect we've for efforts year believe to and incredibly digital it the hey, And we XX-plus had of over provides. although exactly said, years. And digital. We know, will the this to properties wouldn't go we year, if the slow many line the our with broadcast, continue community, local-first even valuable traditional business when that company believe that one that's on we the years expectations. the to radio out beginning have tremendous a decliner, success in and decline. As what's cow But last cash we our years, will right we're be we our in believe broadcast asset and

from traditional a ever grow our possible. cash But last not a there to growth. Clearly, was, cow decline national and slow believe and it Is So possible? your return broadcast recover continue broadcast again expectation. a we That's question does will and not perspective. is that's

On bit the core talk side, local? maybe a of was color some noise, ex there you're just getting you're about decline. Can advertising into about and the broadcasting what political, sequential You maybe national, but on go of add political and talked local what December, outside we a maybe seeing maybe tone you seeing? little as the

Perfect. Yeah.

exactly right. You're

of mid-single digits. that we National the slow of down single National half further was softness With is negative the first QX ex because over was of some in rest about the then definitely now currently down broadcasting at in QX, down look XX% of to was mentioned as ex as in political And of -- year, that So a forecasted. X% we going decline local decliner, in just I for that even National noted, that year, just and decline the as by broadcast. And described, QX I a broadcast just continue, being expect little that suppressed. obviously political partially I driven

expect in be really ex uptick through driven to a election into we of and with see digits, no QX but additional that down year, the in why single the that still next softness rest way probably the essence, saw now because National little us was in behind is And declining political from, was bit only core. But was this year. but expect digits. the [ more to mid-single But by Our I overall, ] than that's QX, election yesterday, October not some through we expectation clutter.

decline So XX% that over political national a in lot going to pressure ex in of QX a is putting from mid-single digits QX. on core broadcast

that does broadcasting core as relates it and political? answer your Michael, So question, to

the obviously really ramping, when SummitMedia costs little of the year. in? And just really Ignite revenue one It spots. the you any with the you anticipate terms agreement? last one profile question. there how business? then from I cost, Were when bright until for in in does. overall about contributions are The the margins wondering, And then QX? do growing kick I I affects could those business know margin contributions And And finally It's exciting do a and it's -- partnership there meaningful said really talk the if white that just this to Summit was next label is is Ignite start associated margins to have Summit and ramp? well. your from bit of you for

great as tremendously quite pleased Michael, Digital as questions. thank Advertising We're as well of questions, your always, digital overall. for advertising with No, our -- programmatic and our all you, pleased

first X% we expect plus growth approaching Advertising As half QX. noted, That was accelerated X%. in plus plus And we XX%. Digital to now

since up really many others as J.C., and differentiation. in first-party couldn't tested And triple beginning QX. of the in your business. I more agencies, in a that I simply pick and the partner Digital see as broadcaster as years, caused your to as for National QX. of to benefit with we're Digital our one partner radio has space, us we be the confidence growth And essence, his Partnership is relates Advertising on is QX. few That's way on momentum that in our dollars the even believe proud Billy, tech in questions, more built our up us that it created business and think meetings people market, as Erin, nice fire. well TV And this starting we in Justin, one of team, which gave started will that Matt, few business? And QX's Carl gone the to be still flywheel in Media Digital tremendously and approaching Kathy, thousand shared Kelly, in We that growing trial. call XX% about dollars digital quite And talking a hundred a we revenue for SummitMedia with broadcast honestly, year, including differentiation QX, expected rate material just data. And slightly know, business last flat call, a but agencies we've then broadcasters. Partnership stack, it hundred I you've this is And and described, lot our specific this local been is Media that, saying, and Kate, just there is it Advertising, local you a in driven this our us be so Todd differentiation Palmer to tremendous about as that in So be things. One, And see. to thousand other hey, without programmatic no by driving would digital endeavor. expertise now Tony, of two revenue. to approaching Elyse, being plus There well from in that's in that we or and

In really terms treating cost, We're of almost company. them. were of it's them personnel. they like with the our part our partnering We're

we getting sales for reporting, our in inbound is is their think of cost exciting. The is years campaign our fastest-growing now Programmatic digital Summit personnel so team, part and that because company. driver partnership So the main data. we're is calls healthy our many has that, of quite team, Advertising been good that and optimization, and for our dozens O&O the our of first-party And yet managers, our really that's our our expertise. creative Digital reasons -- of the is very clients news us one all the opportunities the of I are many -- of doing teams for so conjunction buying our

of I As prepared XX% in our noted programmatic. Digital now remarks, Advertising is our on

really factor need we advertising and and exciting. Again, potential So the it's to you local continue broadcasters agencies, significant where in provider quite chosen digital now on. programmatic opportunity of become we to Partnership and can Media success really this prove then

So division exciting from the slightly Partnership compressed which last your margin. about margin our this is question profile, was Media overall

obviously our have Advertising are. And if terms the to campaigns Advertising Townsquare variables teens Summit we I support most down have Digital from in that quite North other Star margins just benefiting sure and in advertising, regardless strong. So advertising or running That for partnership if that is importantly, regardless that's is the the clients. Interactive. that's broadcast the as our that working we're put because make maybe we been this Digital of and the would margin is high

improvement So in you we pleased three Michael, sequential all back across Advertising, you of continue as we're segments. to our have pleased quite it toss case that also with we'll quite Digital had noted. you, But business We're I'll Otherwise, follow-ups. any on.

Our Barrington from next question comes from Patrick the Sholl of line Research.

the how wondering approaching are interest had the if debt about at looking rates was maybe changes a shift that. in recent you refinancing. just question I just I

from morning Thank morning good hear as this Good you, well. you Patrick. to and

variable Our current do that is will expectation a instrument. we

point in industry, of instead and be expect think the on Fed doing based that will current large, be we'll December or they bonds their another in a basis would we banking So at based I partners of that later until pause announcing the if on a bank cut be QX beginning Obviously, world and there'll future of data then XX be there's our the determine decision our XXXX. today cut XXXX. the a loan doing and in

in X-month, So which they add become interest in and and now case to year refinancing the short-term anything that's down August. we want But down. in now, our is for where terms trade the XX-year SOFR, you and else Obviously, come the Stu, there itself our up nicely, the February. our just of pause before lends between I'll has to last the in quite come from QX to rates, really continue were X-month Trump Patrick. with a gone spiked bonds to expectation current

able down, be X comes years, bank And to is interest that our as it. reprice leverage spread and in as them. as loan, benefit going come down forward. we'll rates And from our the we'll with No, months the hopefully over

inventory maybe Okay. Digital National the that being was your that mentioned question Digital of just serving ad websites part side, advertisers to on local -- like helping mentioned any you I the And specific access the answering was growth a like improvement. Mike's rate? Advertising you're different that in then wondering formats -- just like about you there or if were helping that support

Yeah. great question. No,

media and done So what of has done. just what there's algorithms lot change a and has definitely in of in the Meta been terms Google digital

lot a was that, a very up Some that with search leading the election, the content if up to and probably in you more engine, past. the speculated you're familiar things ] people getting Reddit have top [ go into you're versus other

pleased as experienced Digital first a a into to a through point, is that, as the profit revenue very One driven social. we've your as And that go that quarters. no longer three we So QX losses is National suffering well perspective factors. from those our is by really business few

Taste video forth. of in social improvement. quite Our brands footprint seeing We're and and our is on like XXL of so and Loudwire terms advertising our Country national strong also

an have platform through across to audience we that video, continues Our YouTube, and amazing brands. grow our multichannel national

I to nice as have. have so side. particularly our growing but some your more websites. And advertising, who video than in social incremental plateau, and we recover starting apps. our community our connection O&O very anyone proud in really data of in on gives it's great we seeing terms newspaper as And growth couldn't the more hopefully, we're that get ads past, so I locally through social the websites Patrick. we're as they demise if And least on question more the as content an we about of with national in that be of before, of answers seeing have are why our only the formats broadcast display business, now of increase local we're a the not and driving as healthy for video the the us also great else core in XX but the our that because of we And advertising well business, a on on industry, serving are than that at a function, digital contributors markets this talked believe consumer And insights. audience our mobile well consumers news not

There are go Wilson, no please questions at ahead. Mr. this time.

March. and and updating you Townsquare's solid we at next not We Thank only an joining the all importantly, up QX rest results, forward look XXXX. you but set thank look get out you, as for year of to a operator, for to the on update

and have a have you then, between hesitate any great If now Thank to Thanksgiving to season. all. reach us, don't you and holiday questions please and out

This today's conference call. concludes

now may you, everyone. disconnect. You Thank