Acast “On track” to profitability in Q3 report

Stockholm-based global podcast company Acast released a Q3 financial report which also serves as an interim report covering January – September.

The header of this release manages to be both proud and modest:

We hereby petition the U.S. Securities and Exchange Commission to require the phrase “Properly Monetizing” in all U.S. financial reports.

Anyway, Acast’s Q3-specific numbers are presented here:

In the fine print, Acast says that the growth “was mainly attributable to North America where net sales increased by 55%.” Europe also delivered upward metrics (+25%) and all other markets averaged 24%.

Gross margin for the quarter was 35%. As so often is the case for media companies in relatively new channels, the bottom line differs. Acast’s EBITDA for the January-September nine-month stretch was -11%.

“On track toward profitability”

That is the catchphrase of this report, from CEO Ross Adams. “It’s great to see us on track to hitting our profitability goal in 2024,” he noted while crediting “the power of podcast advertising at the moment, despite the unpredictable economic landscape.”

In a statement bundled into the formal presentation, Ross Adams laid out four key pillars of Acast’s success:

  • North America remains an important growth driver
  • Podcast advertising is an increasingly effective advertising channel
  • Efficiency through development of scalable sales channels
  • New partnership with leading podcast publishers.

See the entire report HERE.

Brad Hill