On this page of StockholderLetter.com we present the latest annual shareholder letter from Reservoir Media, Inc. — ticker symbol RSVR. Reading current and past RSVR letters to shareholders can bring important insights into the investment thesis.
2024
ANNUAL
REPORT
LETTER TO SHAREHOLDERS
Dear Fellow Shareholders,
Fiscal 2024 was another strong year for Reservoir,
highlighted by the third consecutive year exceeding total
revenue and operating income guidance, with award-winning
music making history across genres and geographies. Our
success was driven by consistent organic growth from value
enhancement
efforts,
paired
with
several
accretive
transactions that demonstrated our commitment to growing a
diversified portfolio, and bolstered by healthy industry growth.
Our catalog is the growth engine of our business, and we are executing a proven strategy
that brings our music to an expanding global audience. We secure valuable and sought-after
placements of our assets in films and commercials including the 2024 Super Bowl Halftime
Show and establish long-term partnerships with the leading digital, social, and streaming
platforms. The team   s efforts in the fiscal year yielded 14% organic revenue growth over the
prior year. Our fiscal year financial performance is indicative of both the quality of our assets
and our ability to unlock more opportunities to generate value.
In fiscal 2024 we closed 52 transactions with genre-defining artists and the next generation
of creators. A few highlights include:
Five-time Grammy-winning rock legend Joe Walsh     our agreement includes the
publishing rights to his future works, as well as his past hits as both a solo artist and with
era-defining bands, The Eagles and The James Gang.
Latin hitmaker and Latin Grammy Awards Co-Founder Rudy P  rez     the transaction
included an acquisition of his back catalog and a publishing agreement for his future
works.
Pop songwriter Steph Jones     her co-write    Espresso    by Sabrina Carpenter was #1 in
the U.K. for five consecutive weeks and #3 in the U.S. and has been dubbed the    Song of
the Summer    by multiple outlets.
Songwriter and producer Rob Ragosta     his cross-genre hit co-write    Need a Favor    by
Jelly Roll became the first song ever to reach Top 10 on both the Billboard Country
Airplay and Mainstream Rock Airplay charts, going on to claim the top spot on multiple
other charts.
Viral rapper Armani White     his popularity rose meteorically with his global hit    BILLIE
EILISH.    Our agreement includes past and future publishing rights.
Lebanese star and    Queen of Arab Pop    Nancy Ajram; Egyptian content production and
distribution company RE Media; Egyptian rap duo El Sawareekh; and Saudi Arabian hiphop label Mashrex.
LETTER TO SHAREHOLDERS
We continue to benefit from the significant growth of the wider music industry, led in part by
technology bringing new artists and music to more listeners than ever before. The market
added 83 million new paid subscribers in 2023, despite recent end-user price increases by
global digital streaming platforms. While we are poised to benefit from what we believe will
become a regular cadence of annual price increases across streaming platforms, we are
keenly focused on Spotify   s recent reclassification of subscriptions and compensation of
creators, and the impact that has on songwriters and the music publishing ecosystem. We
take our role as caretakers of our roster's bodies of work quite seriously, and we have an
unwavering commitment to ensuring our roster is compensated both accurately and justly.
We will continue to work toward achieving solutions with all entities that license our music.
These key drivers of our performance in fiscal 2024 also set the stage for fiscal 2025, as we
build upon our position as a leading independent music company. Looking forward, we are
excited to leverage advancements in technology, which will allow our music to reach new
audiences in all corners of the globe.
We understand the importance of being at the forefront of how music is created, consumed,
and analyzed to increase the return on our investments. Early on, our team recognized the
value artificial intelligence (AI) and machine-based learning could bring to our business,
and we made investing in these areas to manage our data, our music, our collateral and our
collections a part of our general operating practice. We will continue to make investments in
technology-enabled tools that drive our business and the industry forward.
With the increased global access to music and listeners in new geographies, genres once
limited to a region are growing at a substantial rate. Our team identified the opportunity in
emerging markets, including the Middle East and North Africa, early on and established a
physical presence via our partnership with PopArabia. With an office of experienced staff
based in the UAE, we are working with the market   s most beloved artists and building our
reputation as a trusted partner to bring music to new audiences around the world.
Streaming growth in emerging markets is also having an outsized impact on the industry,
contributing to an estimated 60% of net subscriber additions in 2023, with this share
expected to rise to 70% by 2030. This data supports our strategy, and we made meaningful
acquisitions in this market in fiscal year 2024 and expect to continue to do so in the future.
We closed fiscal 2024 with record-setting revenue and double-digit gains for both the topline and Adjusted EBITDA. We posted notable growth in both business segments, with
Recorded Music reporting a 22% improvement and Music Publishing reporting a 15%
increase year-over-year. The strength of our results represents the success of our value
enhancement initiatives in finding new opportunities for our assets, our ability to identify
and execute immediately accretive deals, and the health of the music industry at large.
LETTER TO SHAREHOLDERS
The strength and predictability of our cashflow, combined with our careful approach to
managing our available liquidity and debt levels, allows us to make investments to improve
the efficiency of our internal operations and expand our portfolio of assets. At the end of
fiscal 2024, we had over $132.3 million in total liquidity and $312.7 million in net debt. We
also entered into an additional interest rate swap to gain greater comfort with our debt
levels. Our financial strength positions us well to continue funding accretive acquisition
opportunities.
We are entering fiscal 2025 with a strong financial foundation and a robust portfolio of
assets. Our financial guidance implies 4% growth for revenue and 7% growth for Adjusted
EBITDA at the midpoints. These targets reflect our confidence in driving organic growth with
our value enhancement efforts and capitalizing on the projected growth of the music
industry, as well as continuing our prudent cost management, with the expectation of
delivering another record performance.
As the first female-founded and led publicly traded independent music company, we have a
unique opportunity to help shape the dialogue around music copyrights. Creators come to
Reservoir for our reputation as thoughtful stewards of their work who will find opportunities
for their music with new audiences, while also ensuring they are properly compensated by
all who listen to and use their work. This drives value for our creators, our company, and
our shareholders. Our proven track record of being a trusted partner affords us a robust
pipeline of potential targets.
We look forward to further expanding our roster and catalog, bringing our portfolio to
listeners around the world, and playing an important role in the future of music.
I extend my deepest gratitude to our shareholders, the talented team we have at Reservoir,
and our roster of award-winning creators.
Sincerely,
Golnar Khosrowshahi
Chief Executive Officer
 • shareholder letter icon 6/25/2024 Letter Continued (Full PDF)
 • stockholder letter icon 6/30/2023 RSVR Stockholder Letter
 • stockholder letter icon More "Miscellaneous" Category Stockholder Letters
 • Benford's Law Stocks icon RSVR Benford's Law Stock Score = 68


RSVR Shareholder/Stockholder Letter Transcript:

2024
ANNUAL
REPORT

LETTER TO SHAREHOLDERS
Dear Fellow Shareholders,
Fiscal 2024 was another strong year for Reservoir,
highlighted by the third consecutive year exceeding total
revenue and operating income guidance, with award-winning
music making history across genres and geographies. Our
success was driven by consistent organic growth from value
enhancement
efforts,
paired
with
several
accretive
transactions that demonstrated our commitment to growing a
diversified portfolio, and bolstered by healthy industry growth.
Our catalog is the growth engine of our business, and we are executing a proven strategy
that brings our music to an expanding global audience. We secure valuable and sought-after
placements of our assets in films and commercials including the 2024 Super Bowl Halftime
Show and establish long-term partnerships with the leading digital, social, and streaming
platforms. The team   s efforts in the fiscal year yielded 14% organic revenue growth over the
prior year. Our fiscal year financial performance is indicative of both the quality of our assets
and our ability to unlock more opportunities to generate value.
In fiscal 2024 we closed 52 transactions with genre-defining artists and the next generation
of creators. A few highlights include:
Five-time Grammy-winning rock legend Joe Walsh     our agreement includes the
publishing rights to his future works, as well as his past hits as both a solo artist and with
era-defining bands, The Eagles and The James Gang.
Latin hitmaker and Latin Grammy Awards Co-Founder Rudy P  rez     the transaction
included an acquisition of his back catalog and a publishing agreement for his future
works.
Pop songwriter Steph Jones     her co-write    Espresso    by Sabrina Carpenter was #1 in
the U.K. for five consecutive weeks and #3 in the U.S. and has been dubbed the    Song of
the Summer    by multiple outlets.
Songwriter and producer Rob Ragosta     his cross-genre hit co-write    Need a Favor    by
Jelly Roll became the first song ever to reach Top 10 on both the Billboard Country
Airplay and Mainstream Rock Airplay charts, going on to claim the top spot on multiple
other charts.
Viral rapper Armani White     his popularity rose meteorically with his global hit    BILLIE
EILISH.    Our agreement includes past and future publishing rights.
Lebanese star and    Queen of Arab Pop    Nancy Ajram; Egyptian content production and
distribution company RE Media; Egyptian rap duo El Sawareekh; and Saudi Arabian hiphop label Mashrex.

LETTER TO SHAREHOLDERS
We continue to benefit from the significant growth of the wider music industry, led in part by
technology bringing new artists and music to more listeners than ever before. The market
added 83 million new paid subscribers in 2023, despite recent end-user price increases by
global digital streaming platforms. While we are poised to benefit from what we believe will
become a regular cadence of annual price increases across streaming platforms, we are
keenly focused on Spotify   s recent reclassification of subscriptions and compensation of
creators, and the impact that has on songwriters and the music publishing ecosystem. We
take our role as caretakers of our roster's bodies of work quite seriously, and we have an
unwavering commitment to ensuring our roster is compensated both accurately and justly.
We will continue to work toward achieving solutions with all entities that license our music.
These key drivers of our performance in fiscal 2024 also set the stage for fiscal 2025, as we
build upon our position as a leading independent music company. Looking forward, we are
excited to leverage advancements in technology, which will allow our music to reach new
audiences in all corners of the globe.
We understand the importance of being at the forefront of how music is created, consumed,
and analyzed to increase the return on our investments. Early on, our team recognized the
value artificial intelligence (AI) and machine-based learning could bring to our business,
and we made investing in these areas to manage our data, our music, our collateral and our
collections a part of our general operating practice. We will continue to make investments in
technology-enabled tools that drive our business and the industry forward.
With the increased global access to music and listeners in new geographies, genres once
limited to a region are growing at a substantial rate. Our team identified the opportunity in
emerging markets, including the Middle East and North Africa, early on and established a
physical presence via our partnership with PopArabia. With an office of experienced staff
based in the UAE, we are working with the market   s most beloved artists and building our
reputation as a trusted partner to bring music to new audiences around the world.
Streaming growth in emerging markets is also having an outsized impact on the industry,
contributing to an estimated 60% of net subscriber additions in 2023, with this share
expected to rise to 70% by 2030. This data supports our strategy, and we made meaningful
acquisitions in this market in fiscal year 2024 and expect to continue to do so in the future.
We closed fiscal 2024 with record-setting revenue and double-digit gains for both the topline and Adjusted EBITDA. We posted notable growth in both business segments, with
Recorded Music reporting a 22% improvement and Music Publishing reporting a 15%
increase year-over-year. The strength of our results represents the success of our value
enhancement initiatives in finding new opportunities for our assets, our ability to identify
and execute immediately accretive deals, and the health of the music industry at large.

LETTER TO SHAREHOLDERS
The strength and predictability of our cashflow, combined with our careful approach to
managing our available liquidity and debt levels, allows us to make investments to improve
the efficiency of our internal operations and expand our portfolio of assets. At the end of
fiscal 2024, we had over $132.3 million in total liquidity and $312.7 million in net debt. We
also entered into an additional interest rate swap to gain greater comfort with our debt
levels. Our financial strength positions us well to continue funding accretive acquisition
opportunities.
We are entering fiscal 2025 with a strong financial foundation and a robust portfolio of
assets. Our financial guidance implies 4% growth for revenue and 7% growth for Adjusted
EBITDA at the midpoints. These targets reflect our confidence in driving organic growth with
our value enhancement efforts and capitalizing on the projected growth of the music
industry, as well as continuing our prudent cost management, with the expectation of
delivering another record performance.
As the first female-founded and led publicly traded independent music company, we have a
unique opportunity to help shape the dialogue around music copyrights. Creators come to
Reservoir for our reputation as thoughtful stewards of their work who will find opportunities
for their music with new audiences, while also ensuring they are properly compensated by
all who listen to and use their work. This drives value for our creators, our company, and
our shareholders. Our proven track record of being a trusted partner affords us a robust
pipeline of potential targets.
We look forward to further expanding our roster and catalog, bringing our portfolio to
listeners around the world, and playing an important role in the future of music.
I extend my deepest gratitude to our shareholders, the talented team we have at Reservoir,
and our roster of award-winning creators.
Sincerely,
Golnar Khosrowshahi
Chief Executive Officer



shareholder letter icon 6/25/2024 Letter Continued (Full PDF)
 

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