Audioboom: Podcast giant posts full-year loss as it looks to ad business for rescue
Podcasting platform Audioboom has recorded a drop in both revenue and profit for its full year despite seeing strong demand from advertisers.
The British company said its revenue fell from nearly $75m (£60m) in 2022 down to $65m (£52m) last year, even as it returned to growth in the final quarter. Audioboom also recorded pre-tax losses of $0.4m (£0.3m), down from a profit of $3.6m (£2.9m) in 2022.
Monthly advertisers were up 47 per cent however, with 7,727 brands using the platform to promote products and services.
The company’s global advertising marketplace, called Showcase, pulled in 35 per cent more revenue last year and and now contributes over 23 per cent to total group revenue.
Audioboom has started to use AI to generate advertising and translate its podcasts into other languages, as well as expanding its work in monetising Youtube content. It believes this will provide a “significant opportunity” for the business.
Chairman Michael Tobin said: “Whilst it is naturally disappointing to report lower annual revenue and an adjusted EBITDA loss for the period, the resilience of the business model in a soft advertising market, constrained by macroeconomic headwinds, was illustrated by further growth across certain KPIs and operational areas of focus.”
Audioboom said it “anticipates record revenue in 2024” and a return to adjusted pre-tax profit.
In a bid to appease investors, the London-listed company also posted more positive first-quarter results today.
It reported revenue of $17.1m (£13.7m), up 11 per cent on the $15.4m (£12.4m) it recorded in the same three months of 2023. Pre-tax profit was $0.1m (£80k), slightly behind last year’s $0.2m (£160k).
Audioboom blamed this on its first quarter historically being the “seasonal low point” for revenue and profit. But it hit record audience reach of 38.6m in January 2024 while Showcase pulled in record revenue with a 1.1bn monthly ad impressions on March.
Stuart Last, chief executive of Audioboom, said: “2024 has started exactly as we hoped with the positive momentum of the final quarter of last year continuing. We recorded our second successive period of year-on-year revenue growth and adjusted EBITDA profit as our recovery from the challenging market conditions of 2023 continued.
“Over this coming year I expect our revenue growth rate to improve further. We have more than $55m (£44m) of contracted revenue for 2024 from advance advertising bookings, and we are perfectly positioned at this stage of the year to deliver our goals of record revenue and adjusted EBITDA profitability.
“Sentiment in the advertising industry continues to improve, which can be seen in our progress so far,” added Last.
Cavendish analyst Michael Hill said Audioboom has reached its “strongest ever operational position”.
“We reiterate our target price, and look forward to Audioboom capitalising on its strong foundation through robust operating and financial momentum through FY24, the renewal and win of key podcasts on attractive terms, and potential external interest in the platform,” he said.