Monday 15 April 2024 7:40 am
Podcast platform Audioboom has experienced a decline in both revenue and profit for the full year, despite witnessing strong demand from advertisers.
The UK-based company reported a revenue drop from nearly $75 million in 2022 to $65 million last year, although it saw a return to growth in the final quarter. Audioboom also registered pre-tax losses of $0.4 million, a significant drop from a profit of $3.6 million in 2022.
On a positive note, monthly advertisers increased by 47%, with 7,727 brands utilizing the platform to advertise products and services.
Audioboom’s global advertising marketplace, known as Showcase, generated 35% more revenue last year and now contributes over 23% to the total group revenue.
The company has implemented AI to generate advertising content and translate podcasts into multiple languages, in addition to expanding its efforts in monetizing YouTube content. It believes these initiatives offer substantial growth opportunities.
Chairman Michael Tobin commented, “While it is disappointing to report lower annual revenue and an adjusted EBITDA loss, the business model’s resilience in a challenging advertising market demonstrates growth in certain key performance indicators (KPIs) and operational areas.”
Audioboom anticipates achieving record revenue in 2024 and a return to adjusted pre-tax profit.
To reassure investors, the London-listed company also shared positive first-quarter results, reporting revenue of $17.1 million, an 11% increase compared to the same period in 2023. Pre-tax profit was $0.1 million, slightly below last year’s $0.2 million.
Audioboom attributed this to the first quarter historically being a “seasonal low point” for revenue and profit. However, it achieved record audience reach in January 2024, and Showcase generated record revenue.
Stuart Last, Audioboom’s CEO, expressed optimism for 2024, noting the positive momentum from the previous year’s final quarter. He expects further revenue growth and adjusted EBITDA profitability, with over $55 million in contracted revenue for 2024 from advance advertising bookings. Audioboom aims to deliver record revenue and profitability, benefiting from the improving sentiment in the advertising industry.
