Audioboom Group (BOOM) H2 2024 earnings summary

Executive summary

• Q1 2025 delivered $17.3 million revenue and $0.7 million adjusted EBITDA, reflecting a 10x year-over-year EBITDA increase and 1% revenue growth, with $63 million already booked for 2025.

• Revenue growth was impacted by Apple's iOS 17 changes and the strategic exit from over $3 million of low-performing contracts, replaced by higher margin revenue.

• Showcase, the automated ad tech product, now represents 31% of revenue, up from 22% last year, and saw a 36% year-over-year revenue increase.

• Focus remains on high-quality revenue, gross margin improvement, and AI-powered monetization, with key renewals and new signings positioning for a strong 2025.

• The company is on track for its 2025 goals: $80 million revenue and $4.5 million adjusted EBITDA.

Financial highlights

• Q1 2025 revenue reached $17.3 million, marking the sixth consecutive quarter of year-over-year growth.

• Adjusted EBITDA for Q1 2025 was $0.7 million, a 10x increase year-over-year.

• Gross margin improved by 25% year-over-year, rising from 16% to 20%.

• More than $3 million of low-performing contracts were replaced, enhancing revenue quality.

• Showcase platform revenue increased 36% and pricing rose 34% year-over-year.

Outlook and guidance

• Full-year 2025 guidance reaffirmed at $80 million revenue and $4.5 million adjusted EBITDA, with $63 million already booked.

• Revenue growth expected to accelerate as the impact of iOS 17 wanes and new high-performing shows contribute.

• Additional low-margin contracts will be removed in Q2, further improving margins and EBITDA.

• Stable OpEx base expected to continue, with no significant increases anticipated.

• Premium pricing and continued removal of low-margin contracts anticipated to drive further margin expansion.