The accounting team at Libsyn has spent the past two and a half months sorting out what it determined to be a bookkeeping error. That delayed release of the podcast hosting company’s first quarter revenue. But the issue has been sorted out and Libsyn has given the industry another snapshot of how business was in the months leading up to the coronavirus lockdowns.
During the first quarter, Libsyn said its revenue totaled $6.3 million, a half percent slide compared to a year earlier. The company said there had been a 4% decline in revenue tied to LibsynPro, its service for large podcasters, which was offset by 17% growth in it Libsyn4 hosting revenue. Advertising revenue also decreased during the first three months of the year. Libsyn also reported that its expenses rose 7% during the first quarter, driven primarily due to an increase in legal and advisory fees, wage expense, and insurance costs.
The report about the first quarter only makes passing reference to COVID-19, other than adding the global pandemic to the list of “inherent risks and uncertainties” that investors should consider. The quarterly filing with the Securities and Exchange Commission offered no guidance on the state of Libsyn’s business during the second quarter.
Libyn announced in May that its board audit committee had determined that the company had been misstating financial metrics for such things as total assets, current liabilities, and consequently total liabilities and total stockholders’ equity dating back to 2018. On Friday it also reissued several quarterly earnings reports to correct the mistakes.
The company also discovered as part of the review that it significantly overstated its operating loss in 2018, which meant that rather than being exempt for federal taxes in that year, it is now promising the government to pay what it owes in an amended return.