Audioboom confident after recent dip in advertising

Podcast producer and distributor Audioboom said in an update on Monday that total revenue for the nine months ended 30 September came in at $57.1m, up 44% on the same period last year.

The AIM-traded firm said quarterly revenue slipped, however, to $16.2m from $16.9m a year earlier, as global economic headwinds impacted advertising demand.

It did note that a recovery was already underway, with August and September up on the July low-point, and further improvements forecast throughout the fourth quarter, as management expected a positive end to the year.

Audioboom also noted that its growth of 44% “significantly outpaced” wider market growth of 15%.

Total adjusted EBITDA profit for the nine months came in at $2.7m, up 125% on the same period last year, while quarterly adjusted EBITDA profit was down to $0.6m from $1m.

Average third quarter global monthly downloads rose 9% to 107.5 million, while average third quarter brand advertiser count slid to 333 from 370, which the board put down to headwinds impacting advertising demand.

Audioboom said average third quarter global revenue per 1,000 downloads fell to $50.03, from $54.77.

Group cash ended the period at $8m, up from $5.8m at the end of June, with a further $1.7m available via an undrawn overdraft.

The company said its contracted revenue was above $73m for 2022, through advance advertising bookings.

“Audioboom has continued to deliver growth in the first nine months of 2022, increasing revenue by 44% and increasing adjusted EBITDA by $1.5m over the same period last year, while our cash position of $8m is the strongest the company has ever reported,” said chief executive officer Stuart Last.

“Showcase, our automated and very efficient advertising product, continues to perform well and deliver strong value to advertisers, with annual revenue growth of 115%, and a contribution of more than 14% to group revenue.

“Despite a challenging quarter due to a downturn in the advertising market caused by deteriorating macro-economic conditions, Audioboom has continued in its mission to deliver value for podcast creators and advertisers while continuing to generate positive adjusted EBITDA and increasing cash reserves, reinforcing the robustness we have developed within the company.”

Last said advertising demand began to rebound in the second half of the third quarter, with that trend continuing into the final three months of the year, as advertising bookings of more than $73m were in place for 2022 - 21% more than the entirety of last year's revenue.

“We are confident of a positive end to the year.”

At 1412 BST, shares in Audioboom Group were up 5.78% at 491.88p.

Reporting by Josh White at Sharecast.com.