The number of podcasts on Libsyn’s platform grew to 74,000 during the second quarter as the podcast hosting company said its revenues increased too. Total revenues climbed 11.4% compared to a year ago to $6.3 million, which Libysn said was driven by growth in podcast hosting revenue, premium subscriptions, and web-hosting services through the company’s subsidiary, Pair Networks. This growth has let to turning a small profit of $275,364.
“To say that 2020 has been eventful goes without saying. There have been a lot of changes here at Libsyn, both internally, and those resulting from the COVID-19 pandemic worldwide,” said President/COO Laurie Sims. “We have been fortunate overall as a company. We continue to report growing revenue numbers and profitable results in the second quarter during a period that was certainly very different than expected,” she told investors during a conference call on Friday.
The company was not immune to the impact of the coronavirus though, as it reported another quarterly decline for its advertising revenue. The company this time said the decrease was based on the pullback by marketers on their ad campaigns during the quarter. Sims said that pullback is not all that surprising considering what is happening in the economy overall.CFO Richard Heyse said the advertising market “has recovered to a large extent.” The company did not offer any specific guidance on the second half of 2020.
Sims said Libysn saw an increase in content creation during the second quarter. “Less commuting time for listening but increased time for content creation while leveraging a medium that amplifies voices and engages listeners.” April was the second-biggest month in company history for new podcast launches. It also hit an all-time 4,180 new episodes uploaded on average each day during April. That was a 20% increase in new episodes compared to January. “We did see that start to moderate, and that is expected, but overall, we posted an impressive 6.4% increase in episodes on Libsyn in the second quarter compared to the first quarter,” she said.
Despite the creation frenzy, Sims also acknowledged that Lisbysn did also see a 10% to 15% decrease in overall podcast consumption during Q2.
Libsyn this week announced the results of a strategic review in which the company committed to organic growth following the departure of CEO Chris Spencer last week. “The company is in good hands, largely due to the foundation that is already in place,” said Sims. “We continue to drive the business forward, while the board of directors conducts a search for a permanent CEO,” said Sims.
Sims told investors the company has also concluded growing what it already has is the “most direct means” of growing the value of the company rather than joining the crowd looking at acquisitions. “We recognize that we can leverage what is already in place – a strong brand, a strong financial position, and continued customer engagement as a market leader who is trusted,” she said. If Libsyn decides to do any deal-making the company said, as of June 30, it had $19.4 million in the bank. That was a 17% increase from the end of 2019.