REG - Audioboom Group PLC - Q3 Trading Update

AudioboomAnnouncement

15/10/2024 07:00

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RNS Number : 1288I  Audioboom Group PLC  15 October 2024

 

This announcement contains inside information as stipulated under the UK
Market Abuse Regulations ("MAR").

 

Audioboom Group plc

("Audioboom", the "Group" or the "Company")

 

Q3 Trading Update

34% revenue growth and EBITDA profit significantly ahead of current market
expectations

 

Audioboom (AIM: BOOM), the leading global podcast company, is pleased to
provide a trading update for the quarter ended 30 September 2024.

 

Financial and operating highlights

 

·      Record Q3 revenue of US$18.8 million, up 34% on Q3 2023 (US$14.0
million)

·      Total revenue for the nine months to 30 September of US$52.9
million, up 15% on the same period last year (US$45.8 million), with September
representing the second highest month ever for revenue

·      Record Q3 adjusted EBITDA((1)) profit of US$1.0 million,
representing the fourth successive quarter of adjusted EBITDA profitability,
driven by the growth in the highest gross margin revenue line, Showcase

·      Total adjusted EBITDA((1)) profit  for the nine months to 30
September of US$1.3 million, up US$3.0 million on the same period last year
(US$1.7 million adjusted EBITDA loss)

·      Full year adjusted EBITDA expectations raised to US$2.5 million
(up from US$1.3 million previously)

·      Record quarterly performance from Showcase, our global
advertising marketplace. Revenue of US$7.0 million, up 99% on the same period
last year (US$3.5 million), reflecting the Company's continued progress in
building key, scalable advertising technology. In 2024 Showcase has
contributed more than 30% to Group revenue (9 months to September 2023: 23%)

·      Record eCPM (average global revenue per 1,000 downloads) in Q3 of
US$66.06, up 79% (Q3 2023: US$37.00)

·      Average Q3 brand advertiser count of 8,257 (Q3 2023: 7,960)

·      Average Q3 global monthly downloads of 96.5 million (Q2 2024:
94.8 million), marking a return to network growth following Apple's iOS17
update which reduced and rebased download reporting materially across the
wider podcast industry

·      Group cash at 30 September 2024 of US$3.3 million (30 June 2024:
US$3.5 million)

·      The Company has in excess of US$71 million revenue for 2024
booked

 

Commercial highlights

 

·    Audioboom maintained fifth position in both the Triton Digital and
Edison Research rankers of the top US podcast publishers, closing the gap to
fourth place by more than 3.5 million weekly downloads and 0.5 million unique
listeners

·    Key contracts renewed with leading podcasts in our creator network
including Duncan Trussell Family Hour, The Bulwark, Sisters In Law, George
Conway Explains It All, Politics War Room and Chilluminati. These shows are
downloaded more than 70 million times each year

·    Further restructuring of creator contracts in this period has reduced
Audioboom's annual minimum guarantee obligations by more than US$1.0 million
and improved the Company's gross margin

 

 

 

 

Stuart Last, CEO of Audioboom, commented:

 

"I am delighted with Audioboom's performance in Q3 2024, headlined by strong
revenue and adjusted EBITDA growth, and underpinned by a robust business
model. With our seasonally strongest quarter ahead, we are set to
significantly outperform market expectations for adjusted EBITDA.

 

Our 34% revenue growth this quarter was driven by Showcase - our global
ad-tech based marketplace. Our technology innovation, combined with our focus
on attracting blue-chip brands to the platform, led to Showcase recording
US$7.0 million of revenue, up an impressive 99% on the same period last year.

 

Our adjusted EBITDA profit of US$1.0 million in the quarter is particularly
pleasing, achieved by delivering substantial growth on our highest gross
margin revenue line, Showcase; working hard to deliver on our podcast partner
minimum guarantee obligations, which contributes to improving gross margins;
and maintaining a very stable cost-base. Consequently, we are now seeing a
rapid gearing of our profitability, which is set to continue into Q4.

 

The final quarter is always an exciting time for the business, buoyed by
strong advertising demand around sports seasons and the holidays. This year
the US election will boost that demand further - our politics and news
programming slates have seen their audiences grow by more than 34% during the
early part of presidential campaigning, and this growth has quickly translated
to revenue opportunity.

 

Thank you to the Audioboom team for continuing to build a smart, efficient and
scalable business with such dedication. 2024 is set to be a success for
Audioboom, and I look forward to updating shareholders in the coming months."

 

1)     Earnings before interest, tax, depreciation, amortisation, share
based payments, non-cash foreign exchange movements, material one-off items
and onerous contract provisions and losses incurred

 

Enquiries

 Audioboom Group plc
 Stuart Last, Chief Executive Officer                              Tel: +44(0)20 3714 4285

 Brad Clarke, Chief Financial Officer

 Cavendish Capital Markets Ltd (Nominated Adviser and Broker)
 Jonny Franklin-Adams/Abigail Kelly/Rory Sale (Corporate Finance)  Tel: +44(0)20 7220 0500

 Harriet Ward (ECM)

About Audioboom

 

Audioboom is a global leader in podcasting - our shows are downloaded 100
million times each month by 38 million unique listeners around the world.
Audioboom is ranked as the fifth largest podcast publisher in the US by Triton
Digital.

 

Audioboom's ad-tech and monetisation platform underpins a scalable content
business that provides commercial, distribution, marketing and production
services for a premium network of top tier podcasts. Key partners include the
official Formula 1 podcasts 'F1: Beyond the Grid' and 'F1 Nation', 'Casefile
True Crime' (US), 'True Crime Obsessed' (US), 'The Tim Dillon Show' (US), 'No
Such Thing As A Fish' (UK) and 'The Cycling Podcast' (UK).

 

Audioboom operates internationally, with global partnerships across North
America, Europe, Asia and Australia. The platform distributes content via
Apple Podcasts, YouTube, Spotify, Pandora, Amazon Music, Google Podcasts,
iHeartRadio, Facebook and Twitter as well as a partner's own websites and
mobile apps.

 

 

For more information, visit audioboom.com.

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