- Podcast platform’s high-margin Showcase business powers profits
Audioboom has upgraded profit guidance for the third time in less than two months, as the podcast platform’s advertising sales continue to surpass expectations.
The AIM-listed group, which hosts the popular F1: Beyond The Grid podcast – and is also home to our This is Money podcast, told shareholders on Wednesday it had continued to trade ahead of expectations in the fourth quarter.
Audioboom has been forced to respond to changes to Apple’s IOS operating system this year, which ‘depleted inventory levels’ and led to a $15million potential revenue hit for 2024.
It has ramped up efforts in its high-margin Showcase business, which allows advertisers to build a campaign in five minutes via a self-service portal, according to Audioboom.
Showcase revenues in November were up 53 per cent on the same time last year, with advertiser customer numbers up 65 per cent to 10,165.
It boasts average global revenue per 1,000 downloads – a key performance metric – of $75.60, up 38 per cent on $54.75 in November last year, ‘as pricing and demand levels across the platform continue to grow’.
Audioboom has upgraded profit guidance three times since 15 October as its Showcase business continues to power performance
Audioboom said the ‘ongoing success’ of its Showcase focus has lifted full-year revenue expectations to ‘at least’ $73million.
It now expects to post full-year adjusted earnings before nasties of $3.1million, up from guidance of $2.8million in November and $2.5million in October.
Audioboom also told shareholders it expects revenue growth for 2025 will be ‘at least in line’ with forecasted industry growth of 10 per cent, adding it expects ‘higher quality revenue’ to generate ‘significantly higher’ profits next year.
Boss Stuart Last said: ‘Our platform is delivering higher-quality revenue and extracting more value than ever before.’
Audioboom shares were soared 9 per cent to 367.5p in at the open, having added nearly 60 per cent over the last 12 months.
The shares have still lost more than 65 per cent per cent since listing at 1,060p in December 2005, and more than 80 per cent from their April 2022 peak of 2,260p.
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