Cumulus Media (CMLS) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue declined 2.5% year-over-year to $204.8 million, in line with guidance, amid a challenging advertising environment.

• Net loss for Q2 2024 was $27.7 million, compared to a $1.1 million loss in Q2 2023; Adjusted EBITDA was $25.2 million, down 17.8% year-over-year.

• Digital marketing services revenue grew 24%, with total digital revenue up 5% year-over-year, now representing 19% of total revenue.

• Fixed costs were reduced by $4 million in Q2, totaling $8 million year-to-date, improving operating leverage.

• Completed a debt exchange reducing obligations by $33 million, extending maturities to 2029, and securing favorable rates.

Financial highlights

• Q2 2024 net revenue: $204.8 million (down 2.5% year-over-year); six-month net revenue: $404.9 million (down 2.6%).

• Q2 net loss: $27.7 million, or $(1.64) per share, compared to $(0.06) per share in Q2 2023; six-month net loss: $41.9 million.

• Q2 Adjusted EBITDA: $25.2 million (down $5.5 million year-over-year); six-month Adjusted EBITDA: $33.6 million (down $7.4 million).

• Excluding $16.3 million in exchange offer costs, Q2 operating cash flow was $8.3 million.

• Digital businesses now account for 19% of total revenue, up 5% year-over-year.

Outlook and guidance

• Q3 revenue is pacing slightly down, with uncertainty in the macro environment and advertiser spending.

• CapEx guidance for the year reduced to $25 million from $30 million.

• No material tax payments expected for the year; liquidity supported by $53.5 million in cash and a $125 million revolving credit facility.

• Management expects macroeconomic conditions to continue impacting advertising revenues, but anticipates a return to typical spending levels.

• Potential upside in political revenue if battleground states become more contested.