When we compare Q3 results with our coverage of Q2 financials, we see a company striving for net profitability as it builds its catalog, increases its plays to consumers, and leapfrogs its revenue per listener.
Following are key financials. (SEK is Swedish krona.)
- Strong net sales growth of 89% compared to Q3 2020
- The record quarterly net sales amounted to SEK 265.1 million ($30,753); an 89% year-over-year increase
- The gross margin was stable at 36%; same as Q3 2020
- A material improvement of the EBITDA margin to -16% (this number was -22% a year ago)
- EBITDA of SEK -42.0 million (36% gain from Q3 2020)
- The operating loss was SEK -52.7 million ($6.1-million; a larger operating loss that Q3 202’s $4.3-million)
- Listens reached 891 million (compared to 809-million a year ago)
- Listens adjusted for Apple bug effects (+53 million) amounted to 944 million (compared to 809 a year ago) and adjusted ARPL (Average Revenue PEr LIstener) improved to SEK 0.28 ($0.03, 65% increase from a year ago)
Acast notes that its catalog has increased to 35,000 shows. This is a global company, and Acast reports that sales growth in the Americas led all other territories with 111% growth in a year.
Acast has renewed its contract with the BBC to monetize the British network’s podcasts outside of the UK. Acast also announced a partnering deal with Samsung for that company’s European launch of Samsung Free, a podcast app.
Acast CEO Ross Adams noted: “It’s been an intense but thoroughly enjoyable year so far, with Acast delivering considerable growth. This has all been achieved while maintaining the high quality we’re known for in everything we do – and with a conviction that our model and strategy is the most profitable and sustainable way forward for us, our podcasters, and our advertisers. Now, with that under our belts, we’re confident in taking on the last months of 2021.”
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