Dolphin Entertainment, Inc. Q4 FY2024 earnings call

• Delivered 20% year-over-year revenue growth to under $52 million in 2024, crossing the $50 million threshold.
• Achieved positive adjusted operating income for full-year 2024, a significant milestone.
• Launched Always Alpha, the first women's sports management firm, with a joint venture with Deep Blue Sports and Entertainment in February, and celebrated International Women's Day by ringing the NASDAQ closing bell.
• Expanded the digital department's affiliate marketing division in January, tapping into a $17 billion industry.
• Blue Angels documentary returned to IMAX theaters and won the Motion Picture Sound Editors Golden Reel Award.
• Completed principal photography for the feature adaptation of Youngblood, a 1986 cult sports drama, aiming for premiere at Toronto Film Festival in September 2025.
• Rachael Ray's Staple Gin partnered with FreshDirect for holiday recipes.
• Lodi.ai expanded advanced digital identity protection services to include free and premium options for individuals.

In 2024, Dolphin Entertainment, Inc. achieved 20% year-over-year revenue growth, reaching just under $52 million. Adjusted operating income was positive for the full year, at approximately $900,000, compared to an adjusted operating loss of $2.4 million in 2023. Total revenue for 2024 was ~$52 million, up from the prior year's amount. Cash and cash equivalents were $9.1 million as of December 31, 2024, compared to $7.6 million in 2023.

• Anticipates continued growth in the digital department, with affiliate marketing potentially contributing more to revenue.
• Youngblood is expected to premiere at the Toronto Film Festival in early September 2025 and hopes to announce a sale to a theatrical studio or streaming service partner shortly after.
• Expectations of more announcements related to Rachael Ray's Staple Gin in the coming weeks, ideally by the Q1 earnings call.
• Believes in the potential for Always Alpha and the digital department to be significant revenue and profit growth engines.

• Wildfires in the LA area impacted Q1 operations, severely affecting January and February, though the town mostly returned to normal by the Oscars.
• Uncertainties related to the timing and success of film premieres and sales, as well as market reception of new ventures.

Q: Could you quantify the investments made in Q4 for growth and how soon we can expect return on those investments?

A: Investments in Q4 were in staffing for Always Alpha and the digital department. Always Alpha launched in October and is already achieving revenue, with ramp-up expected to generate meaningful revenue quickly. The digital department's affiliate marketing division, launched in Q1, also has a short ramp-up window with quick revenue generation.

Q: With the added businesses in social influencing, could affiliate marketing contribute more than 25% of revenue in 2025?

A: It's possible, with affiliate marketing potentially contributing more, possibly 30-33% in future years due to its growth rate and different service offering compared to traditional influencer work.

Q: How did wildfires in the LA area impact the business?

A: The wildfires impacted Q1 operations, severely affecting January and February, but by the time of the Oscars, the town mostly returned to normal, making the impact Q1-specific.

Q: Can you talk about the Youngblood film and its potential sale?

A: Youngblood is a scripted feature adaptation of a 1986 cult sports drama, shot in Toronto. It's expected to premiere at the Toronto Film Festival in early September 2025, with hopes to announce a sale to a theatrical studio or streaming service partner shortly after.