Key points:
- Audioboom shares rallied 9.46% on upbeat 9-month results.
- The firm’s performance in Q3 was less impressive than last year.
- The company expects to post a rebound in Q4.
The Audioboom Group PLC (LON: BOOM) share price rallied 9.46% after revealing that it generated revenues worth $57.1 million in the nine months to 30 September 2022, representing a 44% increase to the $39.7 million generated in a similar period last year.
The podcasting company’s revenues in Q3 were slightly low than last year’s figures coming in at $16.2 million versus the $16.9 million recorded in Q3 2021. However, the company noted that its revenues had recovered in July and August and expected to end the year positively.
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Audioboom’s pretax profits rose to $2.7 million during the nine months, representing a 125% improvement to the $1.2 million generated in a similar period last year. However, the Q3 profit came in at $0.6 million, a significant decline from the $1.0 million recorded in Q3 2021.
During Q3, the company recorded 107.5 million global monthly downloads, a 9% improvement from the 99.1 million in Q3 last year. However, the number of advertisers on its platform in Q3 fell to 333 from 370 last year due to lower advertising demand.
Therefore, Audioboom earned less revenue per 1000 downloads of $50.03 compared to $54.77 in Q3 2021. However, the company noted that advertising revenue had rebounded in the second half of Q3, and the trend had extended into Q4.
Stuart Last, Audioboom’s CEO, commented: “Audioboom has continued to deliver growth in the first nine months of 2022, increasing revenue by 44% and increasing adjusted EBITDA by US$1.5 million over the same period last year, while our cash position of US$8 million is the strongest the company has ever reported.
Adding:
“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.”
However, the company faces stiff competition globally from companies such as Spotify that are also venturing into the podcasts arena.
*This is not investment advice.
Audioboom share price.
The Audioboom share price rose 9.46% to trade at 509p, rising from Friday’s closing price of 465p.