AUDACY, INC. (AUDA)·Q3 2021 Earnings Summary

Executive Summary

• Q3 2021 revenue was $0.329B (+23% YoY; +8% QoQ) with operating income of $29.2M and Adjusted EBITDA of $49.3M, reflecting continued recovery across core ad categories and strong digital momentum .
• Net loss was $4.8M (diluted EPS -$0.04), an improvement vs Q1 but down from Q2 profitability due primarily to higher operating expenses and tax expense in the quarter .
• Management highlighted strategic progress: acquisition of WideOrbit’s digital streaming/ad-tech (relaunched as AmperWave), return to live events, and premium podcast content launches—key catalysts for digital growth and monetization .
• Liquidity increased to $264.1M (cash $62.8M; revolver capacity $201.3M), aided by a $45M add-on to 6.5% second‑lien notes (issued at 100.75%), supporting investment and deleveraging actions .

What Went Well and What Went Wrong

What Went Well

• Digital revenue grew 30% YoY to $61.4M; management emphasized accelerating digital product roadmap post-WideOrbit/AmperWave: “enabling us to accelerate our digital product roadmap and enhance our growth potential” .
• Adjusted EBITDA rose 58% YoY to $49.3M, with operating income swinging to $29.2M vs a slight loss last year, showing solid operating leverage on recovering revenue .
• Return to live events (Stars and Strings; We Can Survive) with sold‑out crowds, reinforcing brand engagement and sponsorship monetization opportunities in 2H21 and beyond .

What Went Wrong

• Despite revenue growth, the quarter posted a net loss of $4.8M and diluted EPS of -$0.04, impacted by higher operating expenses and an $11.2M income tax expense in the quarter .
• Spot revenues (+21% YoY) remain below pre‑COVID highs in some local markets; management noted “many ad categories remain highly impacted as a result of the pandemic,” indicating uneven recovery across verticals .
• Capex stepped up to $19.7M in Q3 (vs $12.3M in Q2), and corporate expenses increased, which temper near‑term free cash flow despite improving EBITDA .

Financial Results

Consolidated P&L and Key Metrics

Derived margins (calculated from cited values):

• EBIT Margin % (Operating Income / Revenue): Q1 -3.4%, Q2 5.9%, Q3 8.9% (computed from , , ).
• Net Income Margin %: Q1 -9.0%, Q2 0.5%, Q3 -1.4% (computed from , , ).

Revenue Mix by Type

Revenue Mix by Format

KPIs and Balance/Liquidity

Guidance Changes

Note: No formal guidance provided for Adjusted EBITDA, margins, OpEx, OI&E, or tax rate in Q3 materials .

Earnings Call Themes & Trends

Call transcript reference:

Management Commentary

• “Third quarter revenues grew 23% over the prior year and 8% sequentially… EBITDA grew 58% year over year… We continue to rapidly evolve and fundamentally elevate the organization… well positioned to accelerate our growth and capitalize on the exciting opportunities in the dynamically growing audio marketplace.” — David J. Field, President & CEO .
• On AmperWave: “Acquired WideOrbit’s digital audio streaming and ad tech business… relaunched as AmperWave, enabling us to accelerate our digital product roadmap and enhance our growth potential” .
• On events/podcasting: “We marked our return to live events… Both shows… sold‑out… C13Features launched its first feature‑length podcast movie, Treat… Succession companion podcast… Tell Me with Ellen Pompeo…” .

Q&A Highlights

• Analysts focused on recovery cadence in local ad categories, monetization across digital/podcasting, and the impact of AmperWave on product, margins, and growth; management emphasized continued improvement and platform advantages (Nov 9, 2021 earnings call) .
• Liquidity and financing strategy discussed, including the $45M add‑on at a premium to offset revolver draw for the acquisition, supporting flexibility while investing in growth .
• Clarifications around event sponsorships return and content slate timing reinforced revenue mix evolution (call transcript) .

Estimates Context

• S&P Global consensus estimates for Q3 2021 (EPS, revenue, EBITDA) were unavailable due to missing CIQ mapping for AUDA; therefore, comparisons to Wall Street consensus could not be produced via SPGI. Values retrieved from S&P Global were unavailable (tool mapping error).
• As a proxy for expectations, management disclosed preliminary Q3 revenue of $327–$330M ahead of results, which was subsequently reported at $329.4M, consistent with the range .

Key Takeaways for Investors

• Sequential and YoY revenue growth with improving operating leverage (EBIT margin up to ~9%) indicates the underlying recovery and digital mix shift are gaining traction; monitor continuation into Q4 .
• Digital/podcasting remain strategic growth vectors—AmperWave should enhance product control and monetization across live and on‑demand streaming; expect incremental innovation and potential RPM gains .
• Liquidity strengthened and financing executed at a premium support flexibility to invest while deleveraging; watch capex cadence and corporate expense normalization for FCF trajectory .
• Events/sponsorships resumption adds diversification to revenue; sustained sell‑through can provide seasonal uplift and advertiser engagement as live formats normalize .
• Near‑term trading: stock likely reacts to confirmation of recovery momentum and strategic tech acquisition; medium‑term thesis hinges on digital platform execution (AmperWave), podcast slate monetization, and continued ad market normalization (particularly late‑stage local categories) .

Sources: Q3 2021 earnings release and financial tables ; Q2 2021 release and tables ; Q1 2021 release and tables ; financing 8‑Ks (Oct 13 & Oct 20) ; AR securitization facility (Jul 21) . Earnings call transcript: .