Audioboom continues its practice of issuing “trading updates” before quarterly earnings, in this case presaging the company’s Q4 financials.
Keys
The themes of this report are momentum and KPI (key performance indicator) strength.
The momentum comes from surpassing Audioboom’s market expectation in the realm of adjusted EBITDA profit.
Expected: $2.8M
Actual:$3.1M
The company emphasized three key drivers of its quarterly success:
- Continued strong revenue growth from Showcase – our scalable, higher gross margin, tech-based advertising marketplace – up 53% on November 2023
- Record monthly brand advertiser count of 10,165, up 65% on November 2023 (6,157), as more
brands utilise Showcase for scalable, targeted campaign delivery - eCPM (average global revenue per 1,000 downloads) of US$75.60, up 38% on November 2023
(US$54.75), as pricing and demand levels across the platform continue to grow
The Apple Thing
As in the last quarterly report (HERE), Audioboom continues talking about Apple’s iOS17 update in 2023, which caused reduced KPIs across the industry and impacted Audioboom’s potential revenue by an estimated $15M across this year. As a continued response to that metrics disruption, Audioboom has focused on growing its Showcase product which was launched three years ago (RAIN coverage HERE). The company continues to credit Showcase with improving profit.
Audioboom offers a hint at its upcoming annual report and the 2025 reporting season: “We anticipate revenue growth for 2025 will be at least in line with the forecasted industry growth of 10%. Importantly, however, Audioboom’s higher quality revenue is expected to generate significantly higher adjusted EBITDA profit in 2025.
The CEO comments
Chief executive Stuart Last remarked:
“I am very pleased to see a third upgrade to our expectations this year, with Audioboom set to deliver at least US$3.1 million of adjusted EBITDA profit. Our platform is delivering higher-quality revenue and extracting more value than ever before, and I look forward to updating you further on our performance this year in January 2025.”
