AUDACY, INC. (AUDA)·Q4 2023 Earnings Summary

Executive Summary

• Q4 2023 revenue was $311.6 million, down 8.9% year over year; same‑station revenue ex‑political declined 4.8% as management cited macro advertising headwinds .
• Sequentially, AUDA showed core momentum: cash operating expenses fell 9.1% YoY, radio market revenue share rose 0.4 pts, and management flagged early 2024 pacing up 1% for Q1 and mid‑single digits for Q2 .
• Management emphasized ratings and digital strength: A25‑54 radio ratings share increased for the seventh consecutive quarter, January A25‑54 shares hit their highest since January 2019, and streaming unique listeners grew double‑digits for 14 straight months through January; Total Listening Hours posted double‑digit growth in Q4 .
• 2023 10‑K recorded significant non‑cash license impairments ($898.9M in Q4; $1,289.5M for 2023) and a full‑year net loss of $1,136.9M amid restructuring; court confirmed a plan to reduce debt to ~$350M pending FCC approval, with additional liquidity from a $25.5M BMI share sale in Q1 2024 .
• CEO David Field: “Audacy is off to a strong start in 2024, driving accelerated financial and operating performance, including solid early growth in revenues, key digital metrics, and audience and revenue shares” .

What Went Well and What Went Wrong

What Went Well

• Q4 operating discipline and share gains: cash operating expenses down 9.1% YoY; radio market revenue share +0.4 pts; AUDA gained radio revenue share in all four quarters of 2023 .
• Ratings and digital traction: A25‑54 radio ratings share increased for the seventh consecutive quarter; January A25‑54 highest since Jan‑2019; streaming unique listeners up double‑digits for 14 consecutive months; Total Listening Hours posted double‑digit growth in Q4 .
• CEO tone and early‑year outlook: “off to a strong start in 2024,” Q1 revenue pacing up 1% and Q2 mid‑single digits; management highlighted “accelerated financial and operating performance” and “best‑in‑class balance sheet” post‑restructuring .

What Went Wrong

• Q4 revenue declined 8.9% YoY; same‑station ex‑political revenue −4.8% reflecting continued macro advertising pressure .
• Large non‑cash impairments in Q4 2023: broadcasting license impairment of $898.9M in Q4 (total $1,289.5M for 2023), materially impacting GAAP results and equity .
• Capital structure and listing challenges in H2 2023: NYSE delisting (now OTC), grace periods and amendments to debt agreements preceding Chapter 11 filing; plan effectiveness subject to FCC approval .

Financial Results

Revenue and EPS trend (quarters)

Notes: Q4 diluted EPS not disclosed in the 8‑K press release; full‑year diluted loss per share was $(241.58) due to significant impairments .

Segment/revenue source (annual context)

Operating/Impairment context (annual)

Guidance Changes

Note: Management provided directional pacing rather than formal numeric ranges for revenue, margins, or expenses .

Earnings Call Themes & Trends

AUDA did not have a Q4 2023 earnings call transcript available in our document corpus. We searched for “earnings‑call‑transcript” for AUDA during the period and found no AUDA transcript. We relied on the Q4 press release (8‑K Item 2.02) and 10‑K for qualitative themes.

Management Commentary

• “Audacy is off to a strong start in 2024, driving accelerated financial and operating performance, including solid early growth in revenues, key digital metrics, and audience and revenue shares.” — David Field, Chairman, President & CEO .
• “First quarter revenues are pacing up 1%, representing strong sequential core same‑station revenue acceleration of approximately 6% over Q4. Q2 revenues are pacing up mid‑single digits.” .
• “Audacy expects to emerge with $350 million of debt, down from $1.9B, which will give it the strongest balance sheet among its industry peers.” .

Q&A Highlights

No Q4 2023 earnings call transcript was available in our data set. We searched for AUDA “earnings‑call‑transcript” within the period and found no AUDA transcript; themes above are derived from the Q4 press release (8‑K) and FY 2023 10‑K .

Estimates Context

Wall Street consensus estimates via S&P Global were unavailable due to missing CIQ mapping for AUDA at the time of query; we attempted to retrieve “Revenue Consensus Mean” and “Primary EPS Consensus Mean” for Q4 2023 but could not access AUDA’s CIQ mapping. Therefore, estimate comparisons are not included [GetEstimates attempt failed].

Note: We will include estimates if S&P Global mapping becomes available; current values could not be retrieved.

Key Takeaways for Investors

• Sequential improvement into Q4 (and early 2024): Q4 revenue up vs Q2/Q3 and early pacing positive, suggesting stabilization in core advertising after a tough macro year .
• Operating execution: cash opex down 9.1% YoY in Q4 and share gains across 2023 point to improved efficiency and competitiveness, which should support margins as demand normalizes .
• Audience and digital strength: sustained ratings momentum and double‑digit streaming growth enhance monetization potential (especially in sports/news and podcasts), offering medium‑term upside as buyers re‑engage .
• Balance sheet reset: court‑confirmed plan to cut debt to ~$350M (pending FCC) materially de‑risks capital structure; interim liquidity supported by DIP and receivables facilities and BMI cash proceeds ($25.5M, with $13.7M still expected) .
• Watch near‑term catalysts: FCC approval timing for emergence, Q1/Q2 pacing conversion to actuals, and ad market recovery trajectory—each could drive stock reaction and estimate revisions .
• Risks: macro ad spend softness could persist; plan effectiveness contingent on FCC consent; Q4’s large non‑cash impairments underscore asset valuation sensitivity in radio markets .

Appendix

Other Relevant Q4 2023 Press Releases/8‑Ks (Capital Structure)

• “Audacy Provides Capital Structure Update” (Oct 2, 2023): elected to utilize 30‑day grace period for $18M interest on 2029 notes to facilitate lender discussions; reiterated focus on balance sheet optimization and growth strategy .
• Amendments (Nov 3–6, 2023): Credit Facility Amendment extended grace periods and waived leverage covenant for Q3‑2023; Receivables Facility Amendment waived cross‑default linkage and leverage covenant for Q3‑2023 .

Prior Quarters (for trend context)

• Q2 2023 net revenues $298.5M (−7% YoY) with net loss per diluted share $(26.64) .
• Q3 2023 net revenues $299.2M (−6% YoY) with net loss per diluted share $(49.64); corporate G&A elevated due to restructuring efforts .

KPIs and Audience Metrics (Q4 2023)

Methodological Notes

• Primary Q4 results/operating commentary extracted from the 8‑K (Item 2.02) press release dated March 12–13, 2024, and FY 2023 10‑K for broader financial context .
• We searched for and did not find an AUDA Q4 earnings call transcript; estimates via S&P Global were not available due to CIQ mapping limitations at query time.