In addition to telling investors about Townsquare’s Q4 revnue comeback from a debilitating government shutdown from COVID-19, CEO Bill Wilson also showed off some very impressive digital numbers, which the company is growing outside its radio markets.
Wilson made his presentation Tuesday evening at NobleCon17 – Noble Capital Markets’ Seventeenth Annual Investor Conference. He told investors Townsquare has built a 200-person sales team in Charlotte that calls on markets with a population of less than 1.5 million people, where Townsquare does not own any radio stations. They pitch the Townsquare Interactive product, which helps small business build a vibrant online presence.
At the end of 2020, Townsquare Interactive had 22,750 subscribers, 57% of that total is outside of the company’s 67 radio markets. Wilson says given the addressable market for this product solution is 9 million SMBs he expects that total to grow. He reiterated his expectation of $100 million in revenue in 2 to 3 years. “As of the end of 2020 we were on an annualize run rate of over $80 million in subscription revenue at a 30% profit margin.”
The company also started selling digital programmatic advertising through its Townsquare Ignite division. Wilson says early results are very encouraging. “Ignite (digital programmatic advertising) is the fastest growing solution in our company and overall in 2020 it grew 10+% in revenue.”
Wilson adds that given the competitive landscape in Townsquare’s 67 radio markets, where communities are craving trustworthy news and information, the company now sees 58 million unique visitors coming to its websites each month which is 5X the Townsquare radio listening audience.