CMLS Earnings Prediction
The chart below shows how CMLS performed 10 days before and after its earnings report, based on data from the past quarters. Typically, CMLS sees a +7.58% change in stock price 10 days leading up to the earnings, and a -11.21% change 10 days following the report. On the earnings day itself, the stock moves by -4.75%. This data can give you a slight idea of what to expect for the next quarter's release.
CMLS Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
218.58M
-1.23%
7.36%
Gross Margin
52.40%
1.30%
-5.18%
Operating Margin
4.08%
27.50%
2.51%
Net Margin
-105.72%
138.59%
1985.21%
EPS
-13.60
-128.96%
2129.51%
No Data Available
CMLS Earnings Analysis
Cumulus Media Inc Corporation (CMLS.O) Earnings Conference Call
Positive
Strong Performance Amid Challenges: Cumulus Media outperformed its peers in key metrics such as cost take-outs, EBITDA margin recovery, free cash flow conversion, net leverage, and liquidity despite industry challenges.
Digital Marketing Revenue Growth: Digital marketing services (DMS) revenue grew by 27% year-over-year, becoming the largest digital business for Cumulus Media in 2024.
Key Performance Milestones: The company achieved all-time highs in several key performance indicators for DMS, including an 18% increase in customer count and an 11% increase in average digital order size per customer.
Podcast Revenue Surge: Cumulus Media's podcasting segment saw a 35% revenue increase when excluding the impact of Daily Wire, demonstrating strong growth in this area.
BHM Initiative Growth: The Beyond Home Market (BHM) initiative grew by 35% year-over-year, successfully attracting large new clients and building significant relationships with digital-only clients.
Cost Reduction Strategy: Cumulus Media reduced its fixed cost base by 22% from 2019 through 2024, with an additional $35 million in annualized net cost reductions achieved in Q4 2024.
Liquidity and Debt Refinancing: The company maintained its liquidity position at year-end and successfully refinanced its debt, extending maturities to 2029, which provides additional financial flexibility.
Strong Cash Generation: Cumulus Media's cash from operations for the quarter was $17 million, contributing to a full-year operating cash flow of $13 million, indicating strong cash generation capabilities.
Negative
Radio Industry Challenges: The radio industry has faced significant challenges over the last few years, including the pandemic and unfavorable secular trends, which have disproportionately affected Cumulus Media.
Broadcast Advertising Slowdown: There was an industry-wide slowdown in local broadcast advertising, which became more pronounced toward the end of the year, impacting revenue.
Revenue Decline Analysis: Despite some growth in digital marketing services, overall revenue was down 1.2% in Q4 and down 2.1% for the full year.
Podcast Revenue Decline: Podcast revenue was down slightly in 2024, primarily due to the Daily Wire's decision to take its ad sales in-house, resulting in a $4 million negative revenue comp in Q1 and a $15 million negative revenue comp for the full year.
Streaming Revenue Decline: Streaming revenue was down 4% during the year, attributed to the expiration of a fixed-rate sales contract, although streaming impressions grew 15%.
Advertising Revenue Decline: The demand pressure impacting national advertising expanded to local advertisers, particularly as the year ended, leading to revenue declines across most major ad categories.
Revenue Decline Concerns: The company is currently pacing down mid-single digits for Q1, with ongoing concerns about inflation, higher interest rates, and deteriorating consumer sentiment affecting revenue.
Projected Revenue Loss: The loss of the Daily Wire and Dan Bongino's podcast is expected to create additional headwinds in 2025, with a projected revenue impact of approximately $15 million for the year.
CMLS FAQs
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CMLS Earning Call Sentiment
Cumulus Media Inc. (CMLS) Q4 2024 Earnings Call Transcript
CMLS.O
9.79%Positive
The earnings call summary reflects several negative trends, including a decline in national and local advertising, a significant revenue impact from the exit of a key partner, and a broad-based economic slowdown affecting demand. Although there are cost management efforts and digital growth, the overall sentiment remains negative due to weak revenue performance and economic pressures. The Q&A section highlights ongoing uncertainties and management's lack of clear guidance, further justifying a negative sentiment rating.
