Audioboom Group (BOOM) Q3 2024 TU earnings summary

Executive summary

• Record Q3 revenue of $18.8M, up 34% YoY, and adjusted EBITDA of $1M; fourth consecutive quarter of YoY revenue growth and EBITDA profitability.

• Nine-month revenue reached $52.9M, up 15% YoY; adjusted EBITDA was $1.3M, a $3M improvement from the prior-year period.

• Results benefited from improved gross margins, stable operating expenses and reduced Minimum Guarantee obligations.

Financial highlights

• Q3 gross margin rose from 3% to 20% year over year; gross profit increased $3.3M, while MG true-ups fell from 21% to 4% of revenue.

• Adjusted EBITDA was $1M versus a $2M loss in Q3 2023; nine-month adjusted EBITDA was $1.3M.

• Cash was $3.3M at September 30, compared with $3.5M at June 30; a $1M creator advance was made during the quarter.

• Operating expenses remained stable at $2.8M; 39 staff generated more than $1.3M of 2024 YTD revenue per employee through September.

Outlook and guidance

• Full-year adjusted EBITDA expectations rose to $2.5M from $1.3M previously; management was confident of exceeding the upgraded guidance.

• More than $71M of 2024 revenue was booked; Q4 priorities included brand-sales growth, Showcase demand, network growth and EBITDA gearing.

• Q4 demand expected to benefit from sports, holidays and the U.S. election; NFL, EPL and holiday programming were cited as drivers.

• Continued investment in brand sales, Showcase expansion and global growth, especially in Canada.