Sparks

Audioboom is trading strongly and improving its profitability, with upgrades to full-year expectations after a strong Q3. Podcasts continue to build in popularity as a medium and Audioboom has built a strong content slate, improving its market share. Its financial performance is also being driven by its Showcase adtech marketplace, which is making it easier for brands and agencies to adopt the podcast medium as an element of their allocated media spend. The increasing proportion of Showcase revenues in Audioboom’s mix (37% for Q3, 23% over nine months) is helping to drive gross margin, and reflects the investment made to date in building a scalable platform. Restructuring of creator contracts and continuing focus on driving volumes is also helping to ensure a higher proportion of minimum guarantees are met, further helping group margins. Audioboom enters its final quarter with good momentum and with a political and sporting calendar that should support its growing listener base, and management has increased full-year adjusted EBITDA guidance from US$1.3m to US$2.5m.