Audioboom Group (BOOM) Q3 2024 TU earnings summary

Executive summary

• Achieved record Q3 revenue of $18.8 million, up 34% year-over-year, and adjusted EBITDA profit of $1 million, a $3 million improvement from a loss in Q3 last year, significantly ahead of market expectations.

• Nine-month revenue reached $52.9 million, up 15% year-over-year, with September marking the second highest revenue month ever.

• Outpaced industry growth, rebounding from the ad market recession, and delivered four consecutive quarters of revenue and EBITDA growth.

• Showcase, the ad marketplace, contributed $7 million in Q3 revenue, up 99% year-over-year, now over 30% of group revenue with higher gross margins and rapid growth.

• Maintained fifth position among top US podcast publishers, closing the gap to fourth place.

Financial highlights

• Gross margin improved from 3% in Q3 last year to 20% in Q3 this year, with a $3.3 million increase in gross profit.

• Q3 adjusted EBITDA profit of $1 million, fourth consecutive profitable quarter; nine-month adjusted EBITDA profit of $1.3 million, a $3 million improvement from last year.

• Group cash at September 30, 2024, was $3.3 million, slightly down due to a $1 million advance to a key creator; $1.9 million overdraft facility available.

• OpEx stable at $2.8 million, with 65% on staff/commissions and 25% on technology.

• Revenue per employee exceeds $1.3 million year-to-date.

Outlook and guidance

• Full-year adjusted EBITDA expectations raised to $2.5 million, with management confident of exceeding this.

• Q4 expected to be seasonally strong, with over $71 million revenue already booked and further growth anticipated from sports, holidays, and US election activity.

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