Dolphin Entertainment(US:DLPN)2020-11-17 03:07Financial Data and Key Metrics Changes - Revenue for Q3 2020 was $6.39 million, a 23% increase from Q2 and a 7% increase year-over-year from $5.95 million in Q3 2019 [8][23] - Operating loss improved to approximately $493,000 from $1.4 million in Q3 2019, reflecting a significant improvement of over $900,000 [8][25] - Net loss for Q3 2020 was approximately $138,000, compared to a net loss of $326,000 in Q3 2019 [26] Business Line Data and Key Metrics Changes - 42West received recognition as one of the top PR firms, achieving 5 stars in Forbes' ranking, placing it in the top 1% of PR firms in the U.S. [11] - The Door's hotel business is rebounding, with 11 hotel clients recognized in the Conde Nast Traveler 2020 Readers' Choice Awards [16] - Viewpoint launched a new quarterly earnings report video service, with PayPal as the first client, enhancing their service offerings [17] Market Data and Key Metrics Changes - The restaurant industry remains challenged, with no significant recovery expected by year-end, although the hotel business is showing signs of recovery [15] - The entertainment industry, particularly in PR, is thriving despite the pandemic, with 42West involved in numerous Emmy-winning projects [12][14] Company Strategy and Development Direction - The acquisition of Be Social is a strategic move to integrate influencer marketing into the company's offerings, enhancing cross-selling opportunities across PR firms [10][19] - The company aims to add a sixth business to its Super Group by the end of the year, focusing on complementary verticals [33][34] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about achieving higher revenues in 2020 compared to 2019, a result that was not anticipated earlier in the year [31] - The company is hopeful for a vaccine to improve consumer confidence and facilitate the return of the restaurant and movie theater businesses [31] Other Important Information - The company reported $9.2 million in cash at the end of the quarter, indicating strong liquidity even after the acquisition of Be Social [21][36] - The working capital deficit improved significantly from over $15.5 million to less than $2.4 million [36] Q&A Session Summary Question: Performance of Be Social since acquisition - Management noted that Be Social has been a strategic acquisition, contributing positively to revenue despite being part of the company for less than half the quarter, with expectations for further growth through cross-selling [28][29] Question: Impact of COVID vaccine news on future expectations - Management indicated that while they are hopeful for a vaccine, they are currently managing based on the existing reality, with expectations for recovery in the restaurant and movie theater sectors [30][31] Question: Updates on potential addition to the Super Group - Management confirmed the goal to add a sixth company by year-end, focusing on a vertical that complements existing businesses, while also indicating that the timing for a live event production company is not yet right [32][34]