Bright Mountain Media, Inc Announces Second Quarter 2024 Financial Results

Rhea-AI Summary

Bright Mountain Media, Inc. (OTCQB: BMTM) reported its Q2 2024 financial results, showing a 3% revenue increase to $13.0 million compared to Q2 2023. The company's half-year revenue saw a significant 80% jump to $25.5 million. CEO Matt Drinkwater highlighted a key credit amendment enhancing financial flexibility and successful integration of Big Village and Deep Focus acquisitions. The company's focus is on unlocking synergies, launching innovative products, and advancing an AI-driven marketing services platform.

Q2 2024 saw improvements in advertising technology revenue, offset by declines in digital publishing. The company reported a net loss of $5.2 million, a 14% decrease from Q2 2023. Adjusted EBITDA loss improved to $920,000 from $1.9 million in the same period last year. For the first half of 2024, BMTM reported a net loss of $10.0 million, with an Adjusted EBITDA loss of $2.0 million, showing improvement from the $3.9 million loss in H1 2023.

Positive

• Q2 2024 revenue increased by 3% to $13.0 million compared to Q2 2023
• Half-year revenue for 2024 increased by 80% to $25.5 million
• Advertising technology division showed improved revenue
• Credit amendment enhances financial flexibility
• Successful integration of Big Village and Deep Focus acquisitions
• Q2 2024 net loss decreased by 14% compared to Q2 2023
• Adjusted EBITDA loss improved in both Q2 and H1 2024 compared to 2023

Negative

• Digital publishing revenue declined due to macroeconomic factors and reduced website traffic
• Cost of revenue increased by 14% in Q2 2024 compared to Q2 2023
• Gross margin decreased by 19% in Q2 2024 compared to Q2 2023
• Net loss of $5.2 million in Q2 2024 and $10.0 million for H1 2024

08/14/2024 - 04:00 PM

• Second quarter revenue increased to $13.0 million compared to $12.6 million for the second quarter of 2023.
  
• Half year revenue increased by $11.3 million to $25.5 million compared to $14.1 million for the same period of 2023.
  

Boca Raton, FL, Aug. 14, 2024 (GLOBE NEWSWIRE) -- Bright Mountain Media, Inc. (OTCQB: BMTM) (“Bright Mountain” or the “Company”), a global marketing service platform with capabilities in digital publishing, advertising technology, consumer insights, creative and media services, today announced its financial results for the second quarter and six months ended June 30, 2024.

Matt Drinkwater, CEO of Bright Mountain, expressed enthusiasm about the company's recent credit amendment. “We're pleased with a key amendment we entered into in the second quarter that enhances our financial flexibility by deferring certain payments owed to Centre Lane Partners, our lending partner. This adjustment will help bolster our growth initiatives.

We're also pleased with our ongoing financial performance, marked by the successful integration of Big Village and Deep Focus with our legacy Bright Mountain business, and significant cost-reduction efforts. Our current focus is on unlocking further synergies, launching innovative products and business lines, and advancing our vision of an AI-driven marketing services platform.

An excellent example of these synergies is the organic growth from our ad tech division, driven by the strategic use of data assets from our market research division. This approach opens up new and innovative opportunities to enhance return on advertising spend for our clients. We are optimistic about the potential for future synergies and continued success.”

Financial Results for the Three Months Ended June 30, 2024

• Revenue was $13.0 million, an increase of $387,000, or 3%, compared to $12.6 million for the same period of 2023. This increase was due to an improvement in revenue from our advertising technology division, which was driven by our ability to leverage our resources to attract top advertisers, which in turn allowed us to onboard premium publishers. This led to an increase in volume, as well as rates and overall revenue. This increase in revenue was partially offset by a decline in revenue in our digital publishing division, which was significantly impacted by macroeconomic factors, which reduced traffic to our website, coupled with an overall reduction in spending by some customers related to inflationary concerns and reduction in website traffic.
  

Advertising technology revenue was approximately $3.6 million, digital publishing revenue was approximately $516,000, consumer insights revenue was approximately $6.7 million, creative services revenue was approximately $1.7 million, and media services revenue was approximately $566,000 during the second quarter of 2024.

• Cost of revenue was $9.6 million, an increase of $1.2 million, or 14%, compared to $8.4 million for the same period in 2023. The increase is mainly a result of increased publisher costs of $1.2 million, which is driven by the increase noted in revenue for our advertising technology division. These are payments to media providers and website publishers.
  

Cost of revenue is inclusive of publisher costs of $2.3 million, direct project costs of approximately $3.1 million for payments made to third-parties that are directly attributable to completion of projects to allow for revenue recognition, direct salary and labor costs of approximately $2.1 million for employees that work directly on customer projects, and $1.6 million of non-direct project costs.

• General and administrative expense was $5.3 million, a decrease of $2.8 million, or 35%, compared to $8.1 million in the same period of 2023.
  
• Gross margin was $3.4 million, a decrease of 19%, compared to $4.2 million in the same period of 2023.
  
• Net loss was $5.2 million, a decrease of 14%, compared to a $6.1 million net loss in the same period of 2023.
  
• Adjusted EBITDA loss was $920,000, compared to Adjusted EBITDA loss of $1.9 million in the same period of 2023. See the below section on Non-GAAP Financial Measure for a reconciliation of net loss to EBITDA and Adjusted EBITDA.
  

Financial Results for the Six Months Ended June 30, 2024

• Revenue was $25.5 million, an increase of $11.3 million, or 80%, compared to $14.1 million for the same period of 2023. For the six months ended June 30, 2024, revenue includes $18.3 million which represents the impact of the Big Village Acquisition, which was completed in April 2023. This compares to $9.2 million for the same period in 2023. As a result, the acquisition contributed to revenue for three months of the prior period and for the full six months of the current period and is the main driver of the increase in revenue for the six months ended June 30, 2024.
  

Advertising technology revenue was approximately $6.2 million, digital publishing revenue was approximately $950,000, consumer insights revenue was approximately $13.4 million, creative services revenue was approximately $3.7 million, and media services revenue was approximately $1.2 million during the six months ended June 30, 2024.

• Cost of revenue was $18.9 million, an increase of $9.5 million, or 101%, compared to $9.4 million for the same period in 2023. For the six months ended June 30, 2024, cost of revenue includes $14.0 million, or 74%, which is the impact of the Big Village Acquisition, which was completed in April 2023. This compares to $6.7 million, or 72%, for the same period in 2023. As a result, the acquisition contributed to cost of revenue for three months of the prior period and for the full six months of the current period and is the main driver of the increase in cost of revenue for the six months ended June 30, 2024.
  

Cost of revenue is inclusive of publisher costs of $4.1 million for payments to media providers and website publishers, direct salary and labor cost of approximately $4.1 million for employees that work directly on customer projects, direct project costs of approximately $6.2 million for payments made to third-parties that are directly attributable to completion of projects to allow for revenue recognition, and $3.7 million for non-direct project cost.

• General and administrative expense was $10.6 million, a decrease of 9%, compared to $11.6 million in the same period of 2023.
  
• Gross margin was $6.6 million, an increase of 38%, compared to $4.7 million in the same period of 2023.
  
• Net loss was $10.0 million, an increase of 1%, compared to a $9.9 million net loss in the same period of 2023.
  
• Adjusted EBITDA loss was $2.0 million, compared to Adjusted EBITDA loss of $3.9 million in the same period of 2023. See the below section on Non-GAAP Financial Measure for a reconciliation of net loss to EBITDA and Adjusted EBITDA.
  

About Bright Mountain Media

Bright Mountain unites a diverse portfolio of companies to deliver a full spectrum of advertising, marketing, technology, and media services under one roof—fused together by data-driven insights. Bright Mountain’s subsidiaries brands include Big Village, Deep Focus, Wild Sky Media, and BrightStream. For more Information, please visit www.brightmountainmedia.com.

Forward-Looking Statements for Bright Mountain Media, Inc.

This press release contains certain forward-looking statements that are based upon current expectations and involve certain risks and uncertainties. Such forward-looking statements can be identified by the use of words such as “should,” “may,” “intends,” “anticipates,” “believes,” “estimates,” “projects,” “forecasts,” “expects,” “plans,” and “proposes,” and similar words. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, and other factors, some of which are beyond our control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements, including, without limitation, statements made with respect to expectations of our ability to successfully integrate acquisitions, and the realization of any expected benefits from such acquisitions; future financial flexibility; our ability to achieve synergies in growth initiatives; our ability to launch innovative products; and our ability to successfully advance an AI-driven marketing services platform. You are urged to carefully review and consider any cautionary statements and other disclosures, including the statements made under the heading “Risk Factors” in Bright Mountain.’s Annual Report on Form 10-K for the year ended December 31, 2023 and our other filings with the SEC. Bright Mountain does not undertake any duty to update any forward-looking statements except as may be required by law.

Contact / Investor Relations:
Douglas Baker
Email:corp@otcprgroup.com
Tel: (561) 807-6350
https://otcprgroup.com

BRIGHT MOUNTAIN MEDIA, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(unaudited)
(in thousands, except share and per share data)

		Three Months Ended								Six Months Ended
		June 30, 2024				June 30, 2023				June 30, 2024				June 30, 2023
Revenue		$	13,003			$	12,616			$	25,450			$	14,114
Cost of revenue			9,581				8,408				18,892				9,378
Gross margin			3,422				4,208				6,558				4,736
General and administrative expenses			5,310				8,128				10,552				11,556
Loss from operations			(1,888	)			(3,920	)			(3,994	)			(6,820	)
Financing and other expense
Other income			53				103				397				381
Interest expense - Centre Lane Senior Secured Credit Facility - related party			(3,360	)			(2,244	)			(6,352	)			(3,407	)
Interest expense - Convertible Promissory Notes - related party			(2	)			(6	)			(4	)			(11	)
Other interest expense			(11	)			(4	)			(21	)			(10	)
Total financing and other expense, net			(3,320	)			(2,151	)			(5,980	)			(3,047	)
Net loss before income tax			(5,208	)			(6,071	)			(9,974	)			(9,867	)
Income tax provision			—				—				—				—
Net loss			(5,208	)			(6,071	)			(9,974	)			(9,867	)
Foreign currency translation			38				119				72				133
Comprehensive loss		$	(5,170	)		$	(5,952	)		$	(9,902	)		$	(9,734	)
Net loss per common share:
Basic and diluted		$	(0.03	)		$	(0.04	)		$	(0.06	)		$	(0.06	)
Weighted average shares outstanding
Basic and diluted			171,095,661				166,779,390				171,155,364				158,291,304

BRIGHT MOUNTAIN MEDIA, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share data)

		June 30, 2024				December 31, 2023*
ASSETS			(unaudited)
Current Assets
Cash and cash equivalents		$	2,653			$	4,001
Accounts receivable, net			12,075				14,679
Prepaid expenses and other assets			1,231				1,057
Total Current Assets			15,959				19,737
Property and equipment, net			138				199
Intangible assets, net			14,344				15,234
Goodwill			7,785				7,785
Operating lease right-of-use asset			578				306
Other assets, non-current			158				156
Total Assets		$	38,962			$	43,417
LIABILITIES AND SHAREHOLDERS’ DEFICIT
Current Liabilities
Accounts payable and accrued expenses		$	16,440			$	17,497
Other current liabilities			2,512				3,025
Interest payable – 10% Convertible Promissory Notes – related party			43				39
Interest payable – Centre Lane Senior Secured Credit Facility – related party			139				—
Deferred revenue			5,809				4,569
Note payable – 10% Convertible Promissory Notes, net of discount – related party			80				80
Note payable – Centre Lane Senior Secured Credit Facility – related party (current portion)			4,216				5,592
Total Current Liabilities			29,239				30,802
Other liabilities, non-current			234				325
Note payable – Centre Lane Senior Secured Credit Facility, net of discount – related party			65,245				58,674
Finance lease liability, non-current			31				42
Operating lease liability, non-current			628				239
Total liabilities			95,377				90,082
Shareholders’ deficit
Convertible preferred stock, par value $0.01, 20,000,000 shares authorized, no shares issued or outstanding at June 30, 2024 and December 31, 2023			—				—
Common stock, par value $0.01, 324,000,000 shares authorized, 172,445,836 and 172,103,134 issued and 171,095,661 and 171,277,959 outstanding at June 30, 2024 and December 31, 2023, respectively			1,725				1,721
Treasury stock, at cost; 1,350,175 and 825,175 shares at June 30, 2024 and December 31, 2023, respectively			(220	)			(220	)
Additional paid-in capital			101,553				101,405
Accumulated deficit			(159,807	)			(149,833	)
Accumulated other comprehensive income			334				262
Total shareholders’ deficit			(56,415	)			(46,665	)
Total liabilities and shareholders’ deficit		$	38,962			$	43,417

BRIGHT MOUNTAIN MEDIA, INC.
RECONCILIATION OF NET LOSS TO NON-GAAP EBITDA AND ADJUSTED EBITDA
(in thousands)

Non-GAAP Financial Measure

Non-GAAP results are presented only as a supplement to the financial statements and for use within management's discussion and analysis based on U.S. generally accepted accounting principles ("GAAP"). The non-GAAP financial information is provided to enhance the reader's understanding of the Company's financial performance, but non-GAAP measures should not be considered in isolation or as a substitute for financial measures calculated in accordance with GAAP.

All of the items included in the reconciliation from net loss before taxes to EBITDA and from EBITDA to Adjusted EBITDA are either (i) non-cash items (e.g., depreciation, amortization of purchased intangibles, stock-based compensation, etc.) or (ii) items that management does not consider to be useful in assessing the Company's ongoing operating performance (e.g., M&A costs, income taxes, gain on sale of investments, loss on disposal of assets, etc.). In the case of the non-cash items, management believes that investors can better assess the Company's operating performance if the measures are presented without such items because, unlike cash expenses, these adjustments do not affect the Company's ability to generate free cash flow or invest in its business.

We use, and we believe investors benefit from the presentation of, EBITDA and Adjusted EBITDA in evaluating our operating performance because it provides us and our investors with an additional tool to compare our operating performance on a consistent basis by removing the impact of certain items that management believes do not directly reflect our core operations. We believe that EBITDA is useful to investors and other external users of our financial statements in evaluating our operating performance because EBITDA is widely used by investors to measure a company's operating performance without regard to items such as interest expense, taxes, and depreciation and amortization, which can vary substantially from company to company depending upon accounting methods and book value of assets, capital structure and the method by which assets were acquired.

Because not all companies use identical calculations, the Company's presentation of non-GAAP financial measures may not be comparable to other similarly titled measures of other companies. However, these measures can still be useful in evaluating the Company's performance against its peer companies because management believes the measures provide users with valuable insight into key components of GAAP financial disclosures.

A reconciliation of net loss before taxes to non-GAAP EBITDA and Adjusted EBITDA is as follows:

		Three Months Ended								Six Months Ended
($ in thousands)		June 30, 2024				June 30, 2023				June 30, 2024				June 30, 2023
Net loss before tax plus:		$	(5,208	)		$	(6,071	)		$	(9,974	)		$	(9,867	)
Depreciation expense			35				39				75				46
Amortization of intangibles			481				728				962				1,114
Amortization of debt discount			936				540				1,552				844
Other interest expense			11				8				21				10
Interest expense – Centre Lane Senior Secured Credit Facility and Convertible Promissory Notes – related party			2,426				1,709				4,804				2,573
EBITDA			(1,319	)			(3,047	)			(2,560	)			(5,280	)
Stock compensation expense			70				33				135				58
Nonrecurring professional fees			—				685				—				685
Nonrecurring legal fees			254				359				309				359
Non-restructuring severance expense			75				114				93				236
Adjusted EBITDA		$	(920	)		$	(1,856	)		$	(2,023	)		$	(3,942	)

FAQ

What was Bright Mountain Media's (BMTM) revenue for Q2 2024?

Bright Mountain Media's revenue for Q2 2024 was $13.0 million, a 3% increase compared to $12.6 million in Q2 2023.

How did BMTM's half-year revenue in 2024 compare to 2023?

BMTM's half-year revenue in 2024 increased by 80% to $25.5 million, compared to $14.1 million for the same period in 2023.

What was Bright Mountain Media's (BMTM) net loss for Q2 2024?

Bright Mountain Media reported a net loss of $5.2 million for Q2 2024, a 14% decrease compared to a $6.1 million net loss in Q2 2023.

How did BMTM's Adjusted EBITDA perform in Q2 2024?

BMTM's Adjusted EBITDA loss was $920,000 in Q2 2024, an improvement from the Adjusted EBITDA loss of $1.9 million in Q2 2023.