Audioboom set to beat full-year expectations after bumper Q3
Podcast production and distribution company Audioboom updated the market on its September quarter on Wednesday, reporting record quarterly revenue of $16.9m, up 161% on year-on-year and up 28% on the second quarter, as it flagged an expectations-busting year.
The AIM-traded firm said total revenue for the nine months ended 30 September was $39.7m, up 117% on the same period in the prior year.
Year-on-year growth for the nine months outpaced the annual predicted wider industry average by 95%, Audioboom claimed.
Quarterly adjusted EBITDA profit totalled $1m, swinging from a $0.3m loss at the same time in 2020.
The company said it had recorded positive adjusted EBITDA for every month in 2021 thus far.
Average global monthly downloads increased to 99.1 million, up 27% on the third quarter of 2020, while global downloads in September reached a record 107.7 million.
Audioboom said the average brand advertiser count was 370 for the period, up 49% year-on-year, while average global revenue per 1,000 downloads increased 81% to $54.77.
The firm said it had access to capital of $4.5m as at 30 September, represented by group cash of $1.2m and $3.3m of the non-revolving SPV loan facility remaining undrawn.
Audioboom said it was still managing its balance sheet efficiently, and using its available working capital effectively.
As a reference, it said it had collected more than $3.0m to date in October
The board said it now expected the company to generate revenues above current market expectations for the 2021 financial year, and a “significantly increased” adjusted EBITDA relative to those market expectations.
“The third quarter was another period of stellar performance for Audioboom as, once again, we significantly outpaced the growth of the wider podcast industry and set new revenue and adjusted EBITDA records,” said chief executive officer Stuart Last.
“Our content-focused expansion strategy continued to drive download and ad inventory levels to new highs.
“While our core revenue streams expand at pace, I am delighted with the progress we are making through our investments in production and ad tech.”
Last said Audioboom Studios was the new name for all of the firm’s creative services, including its co-production partnerships and original show development.
“The launch of a UK-focused production arm under our Studios banner is a big step forward in our goal of becoming the leading UK podcast creator.
“The adoption of our recently released AdRip tool by our podcast partners is leading to strong growth in revenue associated with our ad tech.”
Audioboom was continuing to invest in new sales initiatives, Stuart Last added, ahead of the launch of its advertising marketplace in the fourth quarter.
“Advertising bookings and pricing for the final quarter are strong, while we are also seeing high demand for our 2022 inventory, setting us up for continued growth and enhanced shareholder value.”
At the close on Wednesday, shares in Audioboom Group were up 1.9% at 1,075p.