Cumulus Media (CMLS) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue was $203.6 million, down 1.8% year-over-year, in line with guidance, with digital revenue now 20% of total and digital marketing services (DMS) up 38–40% year-over-year.

• Net loss for Q3 2024 was $10.3 million, compared to net income of $2.7 million in Q3 2023; Adjusted EBITDA was $24.1 million, down 10.7% from $26.9 million in Q3 2023.

• Political spending accelerated in Q3 but was impacted by the change in the Democratic presidential candidate, leading to a temporary pause in spending.

• Cost reductions of $8 million year-to-date were achieved, building on $120 million in fixed cost reductions since 2019.

• Cash from operations was $3.9 million, with a focus on digital growth, expense control, and maximizing cash flow.

Financial highlights

• Q3 2024 net revenue: $203.6 million (down 1.8% year-over-year); nine months: $608.5 million (down 2.4%).

• Q3 2024 net loss: $10.3 million; nine months: $52.2 million net loss (widened from $19.8 million loss in 2023).

• Q3 2024 Adjusted EBITDA: $24.1 million (down 10.7%); nine months: $57.7 million (down 15.1%).

• Q3 basic and diluted loss per share: $(0.61); nine-month loss per share: $(3.10).

• Cash and cash equivalents at September 30, 2024, were $52.2 million.

Outlook and guidance

• Q4 total company revenue is currently pacing down slightly, with political revenue expected to be close to expectations and potential upside from late campaign activity.

• Management expects macroeconomic conditions to continue impacting spot and network revenues but anticipates ongoing growth in digital advertising and marketing services.

• Local spot advertising is pacing stronger than Q3, while network revenue may not match Q3 due to timing of sports events.

• Full-year CapEx is expected to be below the $25 million revised guidance.

• The company highlights digital growth, national platform, and disciplined capital management as strengths to navigate challenges.