It’s a rarity to see a plus sign before the word revenue when reporting on the quarter most impacted by COVID-19. The 900 net new subscribers to Townsquare Interactive helped make that happen for the months of April, May and June of 2020.
Townsquare Interactive is the digital marketing solutions arm of the company that creates websites for local small businesses.
Q2 2020 was the 9th consecutive quarter of 850 or more net subscriber adds to the Townsquare digital program. Q2 revenue for Townsquare Interactive was $16.9 million and with $70 million on the books halfway through the year, the company re-affirmed expectations that Townsquare Interactive will be a $100 million business within 2-4 years.
In addition, the division has a profit margin of 30.5%, throwing off $5 million in profit in the second quarter and nearly $10 million through the first 6 months of the year.
Q3 net revenue in the division is pacing up 13%
Townsquare Interactive currently has 20,750 subscribers. CEO Bill Wilson expects Townsquare Interactive to hit 30,000 subscribers which would generate about $110 million per year.
Overall, digital revenue accounted for 48% of Townsquare’s total net revenue for the quarter.