Yahoo Finance Entravision Communications Corporation (NYSE:EVC) Q1 2024 Earnings Call Transcript
Entravision Communications Corporation (NYSE:EVC) Q1 2024 Earnings Call Transcript May 2, 2024
Entravision Communications Corporation misses on earnings expectations. Reported EPS is $-0.54615 EPS, expectations were $-0.09. Entravision Communications Corporation isn’t one of the 30 most popular stocks among hedge funds at the end of the third quarter (see the details here).
Operator: Greetings, and welcome to the Entravision First Quarter 2024 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Roy Nir, Vice President, Financial Reporting and Investor Relations. You may begin.
Roy Nir: Good afternoon, everyone, and welcome to Entravision's first quarter 2024 earnings conference call. Joining me today are Michael Christenson, Chief Executive Officer, and Chris Young, Chief Financial Officer. Before we begin, I must inform you that this conference call will contain forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ. Please refer to Entravision's SEC filing for a list of risks and uncertainties that could impact actual results. This call will also include non-GAAP financial measures. The company has provided a reconciliation of these non-GAAP financial measures to their most comparable GAAP measures in today's press release. The press release is available on the company's Investor Relations page and was filed with the SEC on Form 8K. I will now turn the call over to Michael Christenson.
Michael Christenson: Thank you, Roy, and thank you to all of you for joining us on this call today. The first quarter of 2024 was transformative for Entravision. As you all know, Meta informed us that they were terminating their authorized sales partner program. The effective date is July 1. For this quarter, we are working with Meta to wind down the business. We are working to provide a smooth transition for advertisers, for Meta, and for Entravision. In round numbers for 2023, Meta was half of our revenue and half of our cash flow. Terminating the Meta business will have a significant impact on our strategy and operations, and you'll hear more about this transformation as we progress through 2024. Fortunately, we have a strong balance sheet with substantial cash and modest debt, and our remaining businesses are profitable and generate significant cash flow.
So we have the financial capacity to absorb this event and move on. Now we are focused on our future, and we are excited about the opportunities ahead of us. We are certainly more excited about the opportunities ahead of us than the market price of our stock would indicate. We believe broadcasters provide a valuable service to their audiences in America. We have served our audience for three decades. One in five of the Latinos in America are in our broadcast markets. We believe our audience will be critical to determining the outcome of our 2024 elections. So this year, we have invested in expanding our news production capabilities and the amount of news we provide to our audience. We now provide morning, midday, early evening, and late news in all of our markets, and we provide weekend early evening and late news in San Diego, Las Vegas, Denver, El Paso, and McAllen, Texas.
We have also invested in a sales organization that can engage directly with political decision makers to educate them about our audience and how Entravision can help them reach our audience. As far as our advertising, services, and technology businesses are concerned, what we present as our digital segment for financial reporting purposes, it will be dramatically smaller after we wind down meta. The core of this business is our Smadex programmatic advertising platform, our DSP. As we said last year, Smadex continues to work hard building AI capabilities into its platform and building a scalable, customer-focused sales organization. They are making progress and have now returned to industry growth rates, and they have done it profitably. So we have put meta behind us.
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