Audioboom paints upbeat outlook after solid Q1

(Sharecast News) - Shares in Audioboom fell sharply on Wednesday despite the podcast company predicting that it will "at least" meet financial targets this year after a solid first quarter with earnings rising strongly. Adjusted EBITDA in the three months to 31 March totalled $0.7m, a tenfold increase over the year before.

Revenues rose by just 1% to $17.3m, which the company said reflects its focus on higher-margin sales.

"That focus on higher quality revenue led us to relinquish a number of low-performing contracts during the quarter. We replaced them with higher-margin revenue - so while our revenue growth is in the low single figures, it is significantly healthier, and it is exactly where we expected it to be," said chief executive Stuart Last.

Top-line growth is expected to accelerate over the coming quarters, with the first quarter historically being the seasonal low point for revenue.

Average revenue per 1,000 downloads was up 17% over last year at $60.83, while the average total brand advertiser count rose 14% to 8,974.

"The company is confident it will at least meet its revenue and adjusted EBITDA profit goals for 2025, and has made significant progress with contracted revenue of more than US$63m for the year through advanced advertising bookings," Audioboom said.

The company also added that it expects "minimal impact" from recently announced US tariffs due to the production and sale of its inventory being within specific territories.

Shares were down 5.8% at 410p in early deals.