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 +6.31% change in stock price 10 days leading up to the earnings, and a -5.04% change 10 days following the report. On the earnings day itself, the stock moves by -3.98%. 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
203.60M
-1.84%
-0.61%
Gross Margin
55.26%
-1.81%
-2.87%
Operating Margin
3.98%
-26.97%
-9.34%
Net Margin
-5.07%
-487.02%
-62.50%
EPS
-0.61
-481.25%
-62.80%
No Data Available
CMLS Earnings Analysis
Cumulus Media Inc. Class A Common Stock Corporation (CMLS.O) Earnings Conference Call
Positive
Q3 Revenue Surge: 1. Strong Revenue Growth: Cumulus Media reported $203.6 million in revenue for Q3 2024, benefiting from an acceleration in political spending and improving national trends.
Digital Marketing Revenue Growth: 2. Digital Marketing Services Surge: Digital marketing services revenue grew approximately 40% year-over-year, marking the largest dollar increase in this segment, with an annualized digital revenue run rate of about $160 million.
Digital Services Customer Growth: 3. Customer Growth in Digital Services: The customer count for digital marketing services increased by 22%, with customer retention improving by 6% and average digital order size per customer rising by 17%.
Cost Reduction Achievements: 4. Cost Management Success: Year-to-date, Cumulus Media achieved $8 million in cost reductions, building on $120 million in fixed cost reductions realized from 2019 through 2023, representing about 20% of their total fixed cost base.
Cash Reserves Strength: 5. Strong Cash Position: The company ended the quarter with $52.2 million in cash, demonstrating financial stability and flexibility for future investments.
Negative
Political Revenue Decline: 1. Decline in Political Revenue: Political revenue in Q3 was $4.4 million, down from $5.8 million in Q3 2020 and $4.5 million in Q3 2022, reflecting a decrease due to the change in the Democratic presidential candidate and timing of primaries.
Revenue Decline Analysis: 2. Overall Revenue Decrease: Total revenue for Q3 was $203.6 million, which is a slight decline from previous quarters, indicating a challenging advertising environment.
Weak Advertising Sentiment: 3. Weak National Advertising Sentiment: Despite some growth in specific categories, overall advertising sentiment remains weak, particularly in local automotive, professional services, and entertainment sectors, impacting overall revenue.
Cash Liquidity Issues: 4. Cash Position Concerns: The company ended the quarter with only $52.2 million in cash against gross debt of $642.1 million, raising concerns about liquidity and financial flexibility.
Declining Political Revenue Expectations: 5. Lower Political Revenue Expectations: Political revenue for Q4 is currently pacing down slightly compared to previous years, with expectations of $9.7 million booked, which is lower than the $14.3 million in Q4 2020.
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CMLS Earning Call Sentiment
Cumulus Media Inc. (CMLS) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
CMLS.O
-3.8%Positive
The earnings call presents a mixed picture: strong digital revenue growth and cost reductions are positive, but political revenue and advertising sentiment are weak due to economic uncertainties. Management's vague responses in the Q&A add to the uncertainty. The focus on debt reduction is prudent, but the significant debt level remains a concern. Lack of share repurchase indicates other priorities. Overall, the factors balance out, leading to a neutral sentiment. Without market cap data, the prediction remains neutral, expecting a stock price change within -2% to 2%.
