Podcast distribution platform Audioboom has seen “strong operational progress” with a strong start planned for Q4 2023, according to its latest financial report, despite facing $1.7 million in operation loss.
Based on its Q3 2023 trading update, the company’s total revenue is still down by nearly 20% year on year, which has been attributed to weakness in the advertising market and the remaining effects of the departure of its flagship podcast Morbid in May last year. The podcast alone accounted for over $7 million of Audioboom’s revenue in the first half of 2022.
Morbid, which is the 4th most popular podcast in the US by weekly average users according to the Triton Digital Ranker, is now represented by the Wondery sales network. To make up for the loss, Audioboom extended multi-year partnerships with key creators and partners such as Formula 1, as well as adding leading podcasts to its network.
Podcasts that have recently joined the Audioboom Creator Network include Girls Next Level, The Adam Friedland Podcast, We’re Here To Help, Out of The Pods, Your Mom & Dad, and Girls Gone Bible. The new shows are expected to contribute more than eight million monthly downloads in 2024, adding to Audioboom’s record average of 126.6 million downloads in Q3 2023 - up by 18% year on year.
As Audioboom worked on establishing these partnerships in the first nine months of this year, the full payment of creator minimum guarantees contributed to the $1.7 million that the company faced in operating loss. However, Audiobook expects stronger growth in Q4, with revenue of at least $19 million - the highest revenue per quarter for the company since Q2 2022.
In addition to the creator partnerships, Audioboom is continuing to invest in its advertising strategy. In September, the company’s ad revenue per 1,000 downloads went up to $43.90, which is nearly 16% higher than the Q3 average ad revenue. The company expects the number to continue growing in Q4.
Audioboom has also seen growth in revenue from its adtech-powered marketplace Showcase, up by 30% year on year, which is attributed to new demand-side partnerships that the company launched in Q3 to increase Showcase’s monetisation opportunities, including deals with DAX US, Amazon Ads, Bold Collective, and Antipodes.
“Across 2023 we have made improvements in key areas of our business in order to accelerate our path back to growth,” said Audioboom CEO Stuart Last. “Our milestone of creating one billion sellable advertising impressions in October is the result of changes to our inventory creation process, further development of our Showcase marketplace, and the continued growth of the Audioboom Creator Network.”
“This positions us to capture maximum advertiser demand, deliver more than $19 million of revenue in Q4 2023, and puts us on a path to record annual revenue in 2024.”