Audioboom Group Plc · LSE:BOOM
Audioboom — Q3 2023 Earnings Presentation
22 slides from Audioboom's earnings presentation, October 2023
Slide 1: Investor Update
Investor Update October 2023 AUDIOBOOM.COM
Slide 2: Stuart Last and Brad Clarke
STUART LAST BRAD CLARKE CHIEF EXECUTIVE CHIEF FINANCIAL OFFICER OFFICER 1
Slide 3: 1. Performance Update
1. PERFORMANCE UPDATE 2
Slide 4: YTD 2023 Financial Overview
YTD 2023 Financial Overview $45.8M -$1.7M $3M YTD 2023 REVENUE YTD 2023 ADJ. EBITDA CASH $57.1m 2022 (Jan-Sept) $2.7m 2022 $5.3m at 30th June 2023 $39.7m 2021 (Jan-Sept) EBITDA impacted by; $1m cash utilised in Q3 for Ad Market weakness a) ad market impact on advance payments to tier 1
Slide 5: H1 Revenue Contribution & Revenue Share
H1 Revenue Contribution & Revenue Share 2023: 58% 2022: 71% 2023: 23% CONTRIBUTION 2023: 19% 2022: 12% TO GROUP 2022: 17% REVENUE Maiden annual PREMIUM SHOWCASE adjusted EBITDA SONIC profit Q4 adjusted EBITDA REVENUE of $1.6M (up XX% on 15% SHARE 22% Q4 2020 and XX% on Q3 2021) XXX XXX XXX 41%
Slide 6: October 2023 State of Play
October 2023 State of Play Ad market challenging – weak demand in early summer with July low point for revenue Operational improvements across 2023 will result in strong performance Q4 onwards Month on month revenue growth since July, and expected to continue with October which is already ahea
Slide 7: Operational Improvements - Network Growth
Operational Improvements - Network Growth GLOBAL DOWNLOADS - monthly (M) US PODCAST PUBLISHER RANKINGS (REACH AND VOLUME) US WEEKLY ANNUAL REACH CHANGE 130 126 124 125 124 127 1 STITCHER MEDIA 14.7M 60% 113 110 7.6M 108 2 AUDACY PODCASTS 38% 99 92 87 3 AUDIOBOOM 6.7M 56% 81 77 73 4 NPR 6.6M -7% 63 5
Slide 8: Operational Improvements - Network Growth
Operational Improvements - Network Growth 1 BILLION MONTHLY AD IMPRESSIONS 1 billion impressions made available for sale in October 2023 (vs 675 million in Oct 2022) Top tier podcast signings in Q3 expected to contribute more than 8 Audioboom generates million monthly downloads to the network
Slide 9: Operational Improvements - Advertising
Operational Improvements - Advertising BRAND COUNT 8,400 SHOWCASE – ADVERTISING MARKETPLACE 8,042 7,960 PROGRAMMATIC ECOSYSTEM| INTERNATIONAL SALES PARTNERSHIPS| DIRECT SALES 6,498 5,699 5,944 5,638 SHOWCASE 4,045 3,634 3,745 3,171 2,262 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 675M IMPRESSIONS | 130M DO
Slide 10: Operational Improvements - Advertising
Operational Improvements - Advertising 2022-2023 BRAND COUNT CHANGE PREMIUM CUSTOMER BASE PERFORMANCE BRANDS AWARENESS BRANDS +43% -21% 90% of Premium product customers are ‘Performance’ or ‘Direct Response’ brands Small, disruptive, direct-to-consumer, ROI driven. Impacted by economic condition
Slide 11: Operational Improvements – Creator Deals
Operational Improvements – Creator Deals CONTRACTED REVENUE SHARE MINIMUM GUARANTEE TRUE-UP EXPOSURE 25% 24% 21% 20% 2021 2022 2023 2024E 2023 AV Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Contracted revenue share is a proxy for gross margin Minimum Guarantee true-ups directly impact gross in a healthy ad ma
Slide 12: Revenue & Cost Analysis
Revenue & Cost Analysis AUDIOBOOM REVENUE vs OPEX 22 STAFF TECH 20.5 21 22 19.5 20 OTHER REVENUE 18.4 20 19 (est) 18 16.9 16.4 18 16 15.4 16 16 14 13.2 14 14 Opex US$M Revenue US$M 12 12 9.5 10 10 8 8 6 6 4 2.8 3.1 3.1 2.7 2.8 2.9 (est)4 2.5 2.6 2.6 2.1 2.4 2.1 2 2 0 0 Q1 2021 Q2 2021 Q3 2021 Q4 202
Slide 13: Working Capital
Working Capital AUDIOBOOM WORKING CAPITAL ANALYSIS Revenue Cash Collected Payments made Cash Held 21 19.5 21.8 18.4 19.8 19.3 19.1 16.4 18.3 16 18.6 17.6 15.4 17 17 16.6 16.5 14 16.9 16.3 14.5 8 8.1 5.8 5.3 5.1 3.3 3 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 • Cash reduced by US$2.3m v
Slide 14: 2. Business Model Recap
2. BUSINESS MODEL RECAP 13
Slide 15: Podcast Industry – Total Addressable Market
Podcast Industry – Total Addressable Market 2023 2030 Projected 22% CAGR $4 Billion $16 Billion Global Revenue Global Revenue AUDIOBOOM IS A LEADING INDEPENDENT PURE-PLAY PLATFORM GLOBALLY SOURCE: Grand View Research Podcasting Market Size, Share, Trends & Growth Report, 2030
Slide 16: Business Model
Business Model AUDIOBOOM POWERS PODCASTING OUR PLATFORM CONNECTS ADVERTISERS WITH CONTENT, AND DISTRIBUTES TO AUDIENCES GLOBALLY AUDIENCE CREATORS ADVERTISERS 3 CORE BELIEFS CREATOR MEDIUM ADVERTISING FUNDED DISTRIBUTED MEDIA 15
Slide 17: The Model Delivers Growth
The Model Delivers Growth AUDIOBOOM REVENUE & ADJUSTED EBITDA (US$M) 74.9 Revenue 60.3 Adjusted EBITDA 65% CAGR 26.8 22.3 11.7 6.1 3.1 3.6 -5.7 -5.1 -2.9 -1.8 2017 2018 2019 2020 2021 2022 The Audioboom model has consistently delivered revenue growth: 1,100% or 65% CAGR between 2017 and 2022 2022 re
Slide 18: 3. Future Focus
3. FUTURE FOCUS 17
Slide 19: Future Focus
Future Focus Growth of the Audioboom Creator Network; Q3 signings to add 8 million monthly downloads in 2024 Q4 signings – terms agreed with top tier podcasts to add a further 5 million monthly downloads in 2024 Strongest ever new business pipeline Audience and Inventory Growth; 1 billion ad
Slide 20: Future Focus
Future Focus Customer Base Expansion; Continued focus on brand awareness, blue-chip customers Danny Farman joins Audioboom in October as VP, Brand Sales to drive key ad agency business Further development of work with top 15 digital advertising agencies Revenue Share Improvements; New creato
Slide 21: Outlook
Outlook BLUECHIP SEASONAL +20% + 1 BILLION MONTHLY AD + SHOWCASE 30% ANNUAL + CUSTOMER + DEMAND NETWORK GROWTH GROWTH IMPRESSIONS GROWTH NFL, EPL, HOLIDAYS = $19m + Q4 2023 Revenue Forecast record $78.8m 2024 Revenue + IMPROVED 75% DECREASE IN REVENUE MINIMUM SHARES GUARANTEE = Return to adjusted EB
Slide 22: Contact Us
CONTACT US Stuart Last Chief Executive Officer stuart@audioboom.com Brad Clarke Chief Financial Officer brad@audioboom.com