Interim report January -
First quarter 2024
- Net sales in the quarter amounted to
SEK 412.9 m (333.1), which corresponds to net sales growth of 25% (11%). The growth was primarily driven by our North American region where net sales grew by 48%. Net sales forEurope and Other Markets increased by 16% and 20% respectively. - Organic net sales growth was 23% (6%).
- Gross margin for the quarter amounted to 39% (36%).
- EBITDA for the quarter was
SEK -15.1 m (-60.7), resulting in EBITDA margin of -4% (-18%). The development shows thatAcast is on track to reach positive EBITDA in 2024. - Operating loss amounted to
SEK -34.8 m (-78.0). - The result for the period amounted to
SEK 5.2 m (-72.0) and was positively affected by currency translation effects ofSEK 27.4 m (2.2). - Cash flow from operating activities amounted to
SEK -15.5 m (-1.7). - Earnings per share for the period before and after dilution amounted to
SEK 0.03 (-0.40). - The number of listens was 1,124 million (1,283), a decrease of 12% compared to the same period last year. The decline is due to Apple’s iOS17 update that changed how podcast listens are measured.
- The Average Revenue Per Listen (ARPL) increased to
SEK 0.37 (0.26).
Significant events in the first quarter of 2024
- Launch of an update to Predictive Demographics that offers advertisers unprecedented precision in audience targeting for the future cookie-free world. With this update, Predictive Demographics extends its AI-driven prediction model to include more data, thereby enabling more precise targeting across three million English-speaking podcasts globally.
- In February,
The Telegraph , one of the world’s oldest and most well-respected news organizations, joinedAcast to further grow and expand its podcast network.Acast now is home to every major news publisher in theUK , withThe Telegraph joiningBBC , TheTimes , The Guardian,The New Statesman , The FT, Tortoise Media and The Economist. - Higher Ground -
Barack Obama and Michelle Obama’s media company - launched its new Ways to Win podcast withAcast in March. The show began with a mini-series duringMarch Madness , one of the biggest sporting events of the year, with the premiere starringBarack Obama discussing hisNCAA March Madness bracket selections.
Comments from the CEO:
Acast’s start to the year is characterized by 25% sales growth and additional profitability improvements thanks to a maintained cost control. The growth is primarily driven by
The sales growth during the first quarter amounted to 25%, of which 23% was organic growth. The improved growth is primarily thanks to a strong development in
The number of listens decreased by 12% compared to the same period last year, which is explained by the effects of iOS17. We now believe that our listens have reached a new baseline post the iOS17 changes. The Average Revenue Per Listen (ARPL) continues to develop favorably, and amounted to
Higher gross margin and maintained cost control
The gross margin for the period was 39%, corresponding to a 3 percentage point increase compared to last year. The positive development is driven by Podchaser and a favorable product mix. At the same time we have maintained good cost control with operational expenses (excluding D&A) 3% below last year’s level.
Thanks to the positive sales development, the higher gross margin and lower costs, we managed to achieve major improvements to our quarterly results compared to a year ago. EBITDA amounted to
Predictive Demographics delivers greater insights for advertisers
With an update to our Predictive Demographics solution in March, we continue to build on Podchaser’s leading technology. The update brings enhancements to our AI-based prediction model that improves podcast advertisers’ targeting capabilities. The launch is another important step towards improving audience buying, and thereby scaling sales across ad inventory.
Celebrating 10 years as the leading global podcast company
Since our introduction of Dynamic Ad Insertion (DAI) in 2014, we have maintained our position as a pioneer in the podcast industry through innovations including programmatic ad buying in podcasting, our self-serve ad platform and our first-party data targeting solution for advertisers. Our leading technology and investment in local markets has made us now home to nearly 125,000 podcasts globally, with
During the quarter, we welcomed
For the first time ever, we participated in Podtrac’s monthly podcast publisher ranking. The results showed that we, by far, have the largest podcast network globally whilst the US ranking revealed that we hold a very strong position (#2 company) in the world’s largest podcast advertising market thanks to our reach exceeding 20 million monthly unique listeners in the US.
On track to deliver positive EBITDA
Through continuously attracting new advertisers and creators to our platform, entering new partnerships with major industry players and continuing to drive industry innovation, we continue advancing our position as the leading independent podcast company globally. Our development reflects that we are on track to deliver against our goal of reaching positive EBITDA in 2024, which together with our robust balance sheet gives us a solid foundation to keep fortifying our leading position.
Chief Executive Officer
Report presentation
CEO
Link to the report
The Interim Report is attached to this press release and available on https://investors.acast.com/
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