Yesterday Adams Outdoor former CEO Kevin Gleason told Billboard Insider that Geopath has “been brought to financial brink due to some really bad contracts with data vendors.”  Here’s a summary of Geopath’s profit and loss statement for 2021, 2022 and 2023 ($ in 000’s).

Revenues increased 2.5% to $14.8 million in 2023.  Almost all revenue is member dues.  Expenses increased $1.6 million (11%) to $16.5 million in 2023 due mainly to a large increase in a data contract with Motionworks.  Geopath had a net loss of $1.6 million for 2023.  The company’s balance sheet shows increasing debt and a negative fund balance..

Geopath ended 2023 with $1.9 million in cash which is way less than accounts payable of $2.2 million, deferred revenue of $2 million and a lease liability of $1.3 million.  You can think of deferred revenue as a payment which has been received in exchange for an obligation to provide future services.  Geopath’s fund balance (the difference between assets and liabilities or net worth for a normal company) is a negative $858,000.

Geopath hasn’t released 2024 financials but we expect the same or worse.  Members dues will increase by 2% in 2025 which will generate an additional $300,000-500,000 in revenue but this won’t be enough to offset losses.  It would take a 11% increase in members dues simply to break even.

Billboard Insider’s Take: Given their balance sheet, it appears there are some tough decisions needed by the Geopath Board on the best ways to move forward.  If you include the potential need for MRC accreditation, the task only gets harder. What do readers think? Let us know at davewestburg@billboardinsider.com or johnweller@billboardinsider.com.

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