Troika Media Group Issues Letter to Shareholders

March 30, 2022 at 08:00 AM EDT

LOS ANGELES, CA - (NewMediaWire) - March 30, 2022 - Troika Media Group, Inc. (Nasdaq:TRKA) ("TMG" or "Company"), a brand consultancy and marketing innovations company that provides integrated branding and marketing solutions for global brands, released the following letter to shareholders from Robert Machinist, Troika Media Group Chairman and CEO.

Dear Troika Media Group Shareholders,

On behalf of Troika Media Group’s Board of Directors, our senior management team, and employees, we are delighted to have you as a shareholder and valued part of the TMG family. Accordingly, I would like to touch upon some important developments since we completed our Initial Public Offering just shy of one year ago. Since that time, we reported a significant improvement in our business performance in the first half of 2022, completed the transformative acquisition of Converge Direct, and have set the stage for accelerated growth as we execute on our priorities for the second half of 2022 and going forward.

Resurgence of Growth in Our Core Branding Business

With the reopening of economies and the return of global brands with their large marketing budgets, we have experienced significant incremental demand for our digital content, media expertise, and data & analytics. The pandemic has accelerated digital transformation and we believe the secular trend to digital marketing provide our Company with strong tailwinds. In the first half of 2022, both existing and new clients helped us deliver revenue growth in excess of 78% for the first six months of fiscal year 2022.

Building a Comprehensive Digital Advertising and Media Solution for Global Brands

Our strategy is to build a leading-edge digital advertising and marketing services business through the integration of businesses in three practice areas: Content, Data & Digital Media and Technology Services. Our Content practice, led by our Troika Media Group and Mission teams, are well established and recognized as leading brand consultancies, offering creative design and consumer engagement to global clients for more than twenty-years. Building on that core competency, we launched Troika Labs, a new division with the primary mission to leverage its expansive data and content creation capabilities to provide a fully integrated digital and creative offering to clients. By combining the expertise of data insights and integrated marketing throughout the entire strategic and creative process, we can provide a higher level of service, creating solutions and strategies that drive optimal results for brands across the TMG client footprint. Identifying client needs in a fast-changing environment led to the launch of our Troika IO subsidiary to help brands monetize their intellectual property and create additional revenue streams through non-fungible tokens (NFTs), fan centric transactions and digital assets. After integrating these new businesses into our platform, we identified technology services as the one area that we needed to build greater capabilities and scale in order to better serve our brands and grow the business faster.

Growing Our Digital and Performance Media Footprint with a Company Changing Transaction

Our most recent acquisition, Converge, is certainly the largest and most transformative for TMG. Founded in 2006, Converge is a leading digital and offline performance media and marketing company serving customers in multiple end markets. Converge collaborates with its clients to curate a one-to-one targeted media strategy on a mass scale; helping clients to drive rich engagements with their existing and new audiences. This acquisition marks a significant step forward in our strategic goal of creating a global, end-to-end brand solutions platform, adding a significant innovative technology capability to vastly expand the range and depth of our client solutions. TMG also gains significant financial benefits from this transaction. Converge generates over $300 million in revenue principally composed of recurring revenue with 90% retention rates, high margins and rapid growth. With an estimated combined adjusted EBITDA of over $27 million for calendar year 2022, the acquisition of Converge is expected to be significantly accretive to our adjusted earnings per share.

We are excited about this important new growth opportunity and look forward to further integrating our teams and capabilities as we move forward.

What’s Ahead
TMG is focused on the following top five objectives:

Continue to grow our top and bottom line
Further integrate our client offering around our content, data & digital, and technology practices
Leverage our 350+ client relationships across 16 industries
Broaden and deepen our content, data & digital and technology practices
Deliver improved shareholder value

Finally, I would like to thank all our shareholders for your confidence and support of TMG and its management. Together we are working hard to build an unparalleled business that can serve large and growing markets, with our unique creative branding and performance marketing solutions.
We appreciate the confidence you have shown in us to date, and we look forward to earning your continued support.
On behalf of the Board of Directors
Robert Machinist
Chairman and CEO
About Troika Media Group
Troika Media Group is an end-to-end brand solutions company that creates both near-term and long-term value for global brands in entertainment, sports and consumer products. Applying emerging technology, data science, and world-class creative, TMG helps brands deepen engagement with audiences and fans throughout the consumer journey and builds brand equity. Clients include Apple, Hulu, Riot Games, Belvedere Vodka, Unilever, UFC, Peloton, CNN, HBO, ESPN, Wynn Resorts and Casinos, Tiffany & Co., IMAX, Netflix, Sony, Yahoo and Coca-Cola. For more information, visit www.thetmgrp.com
Forward-Looking Statements
Certain statements in this press release that are not historical facts are forward-looking statements that reflect management's current expectations, assumptions, and estimates of future performance and economic conditions, and involve risks and uncertainties that could cause actual results to differ materially from those anticipated by the statements made herein. Forward-looking statements are generally identifiable by the use of forward-looking terminology such as "believe," "expects," "may," "looks to," "will," "should," "plan," "intend," "on condition," "target," "see," "potential," "estimates," "preliminary," or "anticipates" or the negative thereof or comparable terminology, or by discussion of strategy or goals or other future events, circumstances, or effects. Moreover, forward-looking statements in this release include, but are not limited to, the impact of the current COVID-19 pandemic, which may limit access to the Company's facilities, customers, management, support staff, and professional advisors, and to develop and deliver advanced voice and data communications systems, demand for the Company's products and services, economic conditions in the U.S. and worldwide, and the Company's ability to recruit and retain management, technical, and sales personnel. Further information relating to factors that may impact the Company's results and forward-looking statements are disclosed in the Company's filings with the SEC. The forward-looking statements contained in this press release are made as of the date of this press release, and the Company disclaims any intention or obligation, other than imposed by law, to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
Contact:

Troika Media Group
Kevin Aratari
kevin@troikamedia.com

Investor Relations
TraDigital IR
Kevin McGrath
+1-646-418-7002
kevin@tradigitalir.com

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