Boston Omaha (BOC) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue increased 12.8% year-over-year to $27.7 million, driven by growth in billboard, broadband, and insurance segments.

• Net loss attributable to common stockholders for Q3 2024 was $1.6 million ($0.05 per share), unchanged from Q3 2023.

• Growth was supported by improved rental and occupancy rates in billboards, subscriber growth in broadband, and higher insurance premiums.

• The company continued to invest in fiber infrastructure and expanded its insurance operations nationwide.

• Share repurchases and an executive transition were completed during the quarter.

Financial highlights

• Billboard segment Q3 2024 revenue was $11.5 million, up 5.6% year-over-year, with gross margin at 64.8%.

• Broadband segment Q3 2024 revenue was $9.7 million, up 7.4% year-over-year, with gross margin at 75.1%.

• Insurance segment Q3 2024 revenue rose 41.4% year-over-year, with gross margin at 60.5% and premiums earned at $5.4 million.

• Investment in Sky Harbour Group resulted in a $9.4 million equity method loss and a $7.8 million unrealized gain on warrants.

• Cash and cash equivalents at September 30, 2024, were $19.4 million, with total unrestricted cash and investments at $37.2 million.

Outlook and guidance

• Management expects continued expansion in billboard, broadband, and insurance businesses, focusing on organic growth and selective acquisitions.

• Sufficient liquidity is anticipated for the next 12 months, with potential capital raises for acquisitions.

• Ongoing efforts to lower land costs and increase contracted backlog in scalable geographies.