Q4 exceeds expectations. The company reported Q4 net revenue of $110.5 million, 2% above our expectation of $108.5 million. Adj. EBITDA of $25.6 million beat our estimate of $24.5 million by 4.4%. The enhanced results were driven by better than expected revenue growth in its Digital businesses, which grew nicely in the double digits.Digital shines. The company revised its segment reporting to provide more transparency in its attractive Digital businesses. Digital revenue grew at double-digit rates and was 48% of total revenue in 4Q21. Given the strong performance, management updated its Digital revenue guidance to $275 million in 2024, up from $250 million previously, a compelling 11.5% CAGR from 2021 to 2024.Raising expectations. Given the company’s strong Digital growth momentum, we are revising upward our full year 2022 and posting favorable growth in 2023. We are forecasting 2022 full year revenue of $471.1 million and adj. EBITDA of $120.7 million compared with our previous estimates of $446.5 million and $114.5 million, respectively. A favorable refi in the offing? As of December 31, 2021, the company had $50.5 million in cash and $541 million in long-term debt, with debt leverage at 4.75x. By year-end 2022, debt leverage should be a favorable 4 times. Given our upwardly revised adj. EBITDA, the favorable prospect of a refi in 2023, and burgeoning free cash flow generation, we are raising our fundamental assessment from 3.0 to 3.5, which is above average. Compelling stock valuation. Near current levels, the TSQ shares trade at a compelling 6.1 times EV to our 2023 adj. EBITDA estimate. We believe that the shares trade at a Radio multiple, while the company should trade more in line with its Digital peers. Our rating is Outperform with a $29 price target. Read More >>