Business continues to boom for Audioboom which reports its third quarter revenue soared 161% compared to a year ago to $16.9 million – a new quarterly record for the company. Audioboom says revenue also increased 28% compared to its second quarter results with revenue for the first nine months of the year tracking up 117% versus the same period last year.
The company also swung to a profit. After losing $300,000 during the third quarter last year, this year Audioboom banked a $1 million profit.
One factor in that growth is the number of brand advertisers buying time from Audioboom. The company says it had 370 brand advertisers during the third quarter. That is up 49% from the 248 it had a year ago.
“Q3 2021 was another period of stellar performance for Audioboom as, once again, we significantly outpaced the growth of the wider podcast industry and set new revenue and adjusted EBITDA records,” said CEO Stuart Last. “Advertising bookings and pricing for the final quarter are strong, while we are also seeing high demand for our 2022 inventory, setting us up for continued growth and enhanced shareholder value,” he said in the announcement.
Last also credited an increased focus on ad tech including Audioboom’s recently released AdRip tool. It has allowed it to better monetize back catalog inventory. Last said they will push ahead with new sales initiatives including the launch of a new advertising marketplace by year-end.
Audioboom reports it had average global monthly downloads of 99.1 million during the third quarter, up 27% from last year. Global downloads in September also reached a record 107.7 million. As a result, its average global revenue per 1,000 downloads – or what it calls eCPM – increased to $54.77, up 81% year over year.
“Our content-focused expansion strategy continued to drive download and ad inventory levels to new highs,” said Last.
The financial update comes one month after All Active Asset Capital, a U.K.-based private equity firm, abandoned a bid to buy Audioboom. All Active had made a tentative $16.70 (£12) per share bid, which would value the go-private deal at $262 million. While this round of negotiations may be over, All Active also signaled it still believes a deal could be had. “AAA reserves its right to bid for Audioboom again and will consider a bid in the future,” it said last month. But the firm said that is unlikely to occur until it completes a pending acquisition and relists on an international stock exchange, potentially in New York.
It was the second time in the past year that Audioboom has looked at a potential sale. In 2020 it conducted an eight-month strategic review but the board ultimately decided not to sell after receiving bids that it felt undervalued the company.
Audioboom said Wednesday that it continues to have access to $4.5 million in capital if it needs the money, and the board said it now expects that Audioboom will generate revenues in excess of current market expectations for 2021.
Audioboom has said it believes its biggest growth opportunity in the U.K. market which it says remains “relatively under-developed” compared to the U.S. That led it to launch a U.K. production operation as part of the company’s recently rebranded Audioboom Studios production arm. Two U.K.-podcasts have been released so far and another six shows are in development for launch in 2022.
“The launch of a UK-focused production arm under our Studios banner is a big step forward in our goal of becoming the leading UK podcast creator,” said Last.