Overachieves Q2 results. Revenues of $41.6 million was better than our $38.5 million estimate and reflected a 23.9% year-over-year quarterly revenue decline, better than many traditional media companies in Q2. Cash flow, as measured by Adj. EBITDA, was a better than expected $480,000 versus our estimate of $150,000. We believe that the results reflect that the company's transition toward revenue growth is on track. Stabilizing revenues? We believe that Q2 revenues may reflect a stabilization in the company's revenues, possibly the first time since 2016. Q2 revenues showed a sequential quarterly improvement from $40.5 million in Q1 and we estimate that Q3 revenues will show sequential improvement from Q2. Raising estimates. Due to improving revenue backlog and cost cuts, we are raising our second half 2020 expectations. Our Q3 and Q4 revenue estimates are raised from $40.5 million to $43.8 million and from $42.2 million to $43.5 million, respectively. We are also raising our cash flow expectations for each quarter. Our full year 2020 cash flow estimate is raised from $1.5 million to $2.8 million.Decent liquidity. As of June 30, the company had $30.1 million in cash, which was an increase from $23.5 million in the last quarter. The company had $22.2 million in long term debt. We believe that the company has sufficient liquidity until it turns free cash flow positive, expected in the second half 2021. Rating Outperform. Near current levels, the HRTH shares trade at 1.6 times EV to our 2021 adj. EBITDA estimate. Our $11 price target anticipates a 9.2 EV to 2021 cash flow multiple, which we view as a reasonable target multiple given the prospect for double digit EBITDA growth. Read More >>