Audioboom sees Covid-19 affecting ad spending
Audioboom said it expected the Covid-19 to affect advertisers' spending as the podcast company reported a 40% increase in first-quarter revenue.
Revenue in the three months to the end of March rose to $6.4m (£5.2m) from $4.6m a year earlier as the number of advertisers rose by 52% to 271, Audioboom said.
Audioboom said its two-year $4m secured loan facility was projected to fund growth until it starts to generate sustainable monthly cash. At the end of March the facility was unused and is still available, the company said. Its cash position was $0.8m at the end of March, down from $2m at the end of December.
The audio and podcast platform, which gets more than 60m listens each month, put itself up for sale in February before the coronavirus crisis took a grip. It said the board was pleased with the level of buyer interest and that it would judge the impact of the virus on the sale process in coming weeks.
The company said it was working to understand Covid-19's impact on podcasting, which many people are turning to while stuck in their homes.
Stuart Last, Audioboom's chief executive, said: "We are still developing an understanding of how Covid-19 will impact podcasting. Early indications are that we will see more caution from advertisers during Q2, although they remain committed to the podcast medium by increasing their levels of long-term support for proven networks. The board will continue to monitor these developments closely, but believes that Audioboom remains in a strong position."