Overall revenue for the company in Q4 came in at $120.3 million, an increase of 8.8% over 2021. Radio revenue increased $2.3 million (4%), Digital Ad revenue jumped $5.4 million (16.9%), and Subscription Digital Marketing Solutions revenue increased $900,000 (4.4%).
CEO Bill Wilson said Thursday that Townsquare is “no longer a broadcast radio company,” with more than 50% of total revenue and profits now coming from digital.
Digital is also throwing off a 30% profit margin for the company. “2022 was a significant inflection point for our Company. It marked the first year where radio no longer comprised the majority of our revenue and profit, further separating Townsquare from our local media peers, and placing a spotlight on our world-class team and our unique and differentiated strategy, assets, platforms and solutions.”
Wilson says digital will continue to drive growth at Townsquare. The company recently opened an office in Phoenix to back up its digital business on the West Coast. The Townsquare digital office in Charlotte has over 600 employees. At the end of 2022 Townsquare had 30,650 small businesses using its monthly digital subscription service. Wilson believes that’s a pool of 9 million businesses that Townsquare can tap into to drive digital growth.
Townsquare also reached the lowest net leverage ever in its history at 4.29x; and the company generated over $50 million of Operating Cash Flow in 2022.
