Noblecon 18 highlights. Townsquare CFO, Bill Wilson, presented at Noblecon18, speaking on a range of topics such as, the company’s evolution from a pure-play broadcaster to a digital-first company, the competitive advantages to bringing a scaled operation to small markets, and the organic nature of digital revenue growth. The full replay of the presentation can be found here.Fast-growing digital. Mr. Wilson highlighted the robust growth of the company’s Digital businesses, noting that digital advertising is the fastest growing segment of the business, growing 20.5% in 2021. The company’s digital marketing solutions business has also experienced impressive growth with record net subscriber additions in both 2020 and 2021.The small market advantage. Many of the markets in which the company operates have little content available to consumers and, in some cases, even lack a local TV station. This affords Townsquare the opportunity to fill the void with its digital and radio content. Notably, the radio broadcast business has typically remained more stable in Townsquare’s markets than in larger cities. Q1 to be more good news? While speaking about the recent revenue and cash flow growth in 2021 (12.6% and 69%, respectively), Mr. Wilson appeared to hint that Q1 results would be a continuation of the positive momentum, stating, “I can say that we are very eager to report our Q1 earnings.” Our forecast calls for revenue of $99.5 million in Q1, which would amount to 12% YoY growth. Compelling valuation. Near current levels, the TSQ shares trade at a compelling 6 times EV to our 2023 adj. EBITDA estimate. The shares trade at a Radio multiple, yet the company should trade more in line with its Digital peers. We rate the shares Outperform with a $29 price target. Read More >>