Q2 exceeds expectations. Total revenues of $107.3 million beat our estimate of $102.5 million, with the largest upside in local marketing solutions. Adjusted EBITDA was $30.3 million, an all time record, versus our $28.3 million estimate, benefiting from higher gross margins (33.3% versus our 32.7% estimate). Notably, the company's Digital businesses were strong, with Townsquare Interactive adding a record number of 1,350 net new subscribers and revenues up nearly 20%.Operating near pre-Covid levels. The company's revenue and EBITDA recovery has been remarkable, with revenues roughly 98% of pre-covid levels, excluding its hard hit Entertainment business. Based on recent 2021 revenue and adj. EBITDA guidance, the company is expected to be near full recovery, with full year 2021 EBITDA guidance actually better than 2019 levels.Surprising Q3 and Full Year 2021 Guidance. Q3 revenue guidance is a strong 10% above our original estimate, guided between $106 million and $109 million. Q3 Adj. EBITDA guidance is nearly 40% above our original estimate, guided to a range of $26.2 million to $28.2 million versus our original estimate of $19.7 million. Full year 2021 revenues are expected to be above $410 million and adj. EBITDA in the range of $102 million. We are raising our Q3, full year 2021 and 2022 estimates.Investing to accelerate digital growth. Given the improved fundamentals, debt leverage is coming down, estimated to be below 4.8 times by year end 2022 (based on our upwardly revised adj. EBITDA estimates). As such, we anticipate that the company will allocate capital toward investing to accelerate the growth of its Digital businesses. Management plans to open a new West Coast office in the first half 2022. Added confidence in our $27 price target. Near current levels, the TSQ shares trade at a compelling 6.9 times Enterprise Value to our upwardly adjusted 2022 EBITDA estimate, or at the low end of its past 6 year average trading range. Our price target of $27, which is based on 9.3 multiple is within its historic trading range. We believe that there is significant positive upside potential in our 2022 adj. EBITDA estimate and the valuation does not fully reflect its attractive Digital businesses. Read More >>