Bright Mountain Media, Inc. (BMTM)·Q3 2024 Earnings Summary

Executive Summary

• Q3 revenue was $14.2M (-7% YoY) with gross margin of $4.4M (+30% YoY); net loss improved sharply to $3.3M (-84% YoY) and Adjusted EBITDA rose to $0.804M from $0.283M, reflecting cost reductions and mix shift toward higher-margin activities .
• Segment mix: Consumer Insights ($6.8M) and Ad Tech ($4.7M) led, offsetting weakness in Digital Publishing ($0.5M) amid macro and inflation headwinds that pressured traffic and customer spend .
• Operating discipline: Cost of revenue fell 18% YoY to $9.8M, G&A held near flat YoY at $4.4M; interest expense remained elevated at $3.25M tied to the Centre Lane credit facility, keeping the capital structure a focal risk .
• No formal guidance was issued; Q3 narrative emphasized synergy capture and platform integration. Earlier in Q3, the company amended its credit agreement to defer certain 2024 payments, improving near-term liquidity flexibility .

What Went Well and What Went Wrong

What Went Well

• Significant P&L improvement: Net loss narrowed to $3.3M (-84% YoY), with Adjusted EBITDA up to $0.804M (+$521k YoY). CEO: “We are pleased with our continued positive financial performance focused on our bottom-line” .
• Mix shift benefits: Ad Tech revenue increased and helped onboard premium publishers, boosting rates and volume; this partially offset Digital Publishing weakness .
• Cost discipline: Cost of revenue declined 18% YoY, driven by lower direct salaries and non-direct project costs, supporting gross margin expansion to $4.4M (+30% YoY) .

What Went Wrong

• Top-line contraction: Revenue declined 7% YoY to $14.2M, pressured by macro/inflation and lower site traffic in Digital Publishing .
• Interest burden: Interest expense on the Centre Lane facility was $3.25M in Q3, constraining progress on net income despite operational gains .
• Balance sheet strain: Long-term related-party debt rose to $68.4M; shareholders’ deficit widened to $(59.6)M, underscoring leverage and equity deficits that remain key investor concerns .

Financial Results

Quarterly trend (sequential comparison)

Q3 year-over-year comparison

Segment revenue breakdown

KPIs and cost structure

Vs. Estimates

S&P Global consensus estimates were unavailable at time of analysis; comparisons to Street estimates cannot be assessed.

Guidance Changes

No quantitative guidance was issued in the Q3 press release/8‑K.

Earnings Call Themes & Trends

Note: No earnings call transcript was available in filings/press releases for Q3 2024; thus, themes reflect management’s published remarks .

Management Commentary

• CEO (Q3 2024): “Our third quarter net loss was $3.3 million, a decrease of 84%… Adjusted EBITDA of $804,000 represented an increase of $521,000… focus on maximizing synergies… launching innovative products and services… advancing our vision of becoming an end-to-end marketing services platform” .
• CEO (Q2 2024): “Key amendment… enhances our financial flexibility by deferring certain payments owed to Centre Lane Partners… ongoing financial performance… unlocking further synergies… advancing our vision of an AI-driven marketing services platform” .
• CEO (Q1 2024): “Focused on unlocking more synergies… delivering the vision of an AI-enabled marketing services platform… ad tech organic top-line growth driven by leveraging data assets of our market research division” .

Q&A Highlights

• No public earnings call transcript was located for Q3 2024; the 8‑K furnished the press release without referencing a call. Guidance clarifications or analyst Q&A were not available .

Estimates Context

• Street estimates (S&P Global) for Q3 2024 revenue and EPS were unavailable; a beat/miss assessment cannot be made at this time. Where consensus is unavailable, investors should focus on sequential/YoY trends and margin trajectory .
• Company-reported results: Revenue $14.151M and EPS $(0.02) . S&P Global data unavailable for consensus comparisons.

Key Takeaways for Investors

• Profitability trend improving: Net loss narrowed to $3.3M and Adjusted EBITDA turned positive to $0.804M; cost of revenue fell 18% YoY supporting gross margin expansion .
• Mix and execution: Consumer Insights ($6.8M) and Ad Tech ($4.7M) drove the quarter; onboarding premium publishers and leveraging cross-division data assets remain core to execution .
• Macro sensitivity: Digital Publishing weakness tied to inflation and traffic declines persists; expect cautious near-term expectations for this segment .
• Capital structure risk: Interest expense of $3.25M and long-term related-party debt of $68.4M, alongside a $(59.6)M shareholders’ deficit, keep leverage front-and-center despite operational improvements .
• Liquidity actions: The credit amendment deferred certain 2024 payments, providing flexibility to execute on integration and growth plans; monitor subsequent amendments and maturities .
• No guidance/coverage: Absence of formal guidance and lack of S&P Global consensus complicate near-term positioning; use quarterly trend tables and segment data to frame expectations .
• Near-term trading lens: Focus on continued Adjusted EBITDA progress, segment mix durability (Insights/Ad Tech), and any additional balance-sheet actions; any confirmation of sustained margin gains without top-line erosion would be a positive catalyst .

Appendix: Additional Q3 2024 Press Releases

• Governance strengthening: Elaine Riddell (9/4), Joe Pergola (9/10), Thomas Triscari (9/17) appointments to the Board .
• Credit amendment: Deferral of certain interest/amortization payments for fiscal 2024 under Centre Lane facility (disclosed via 8‑K1) .