rtside (US:PODC)2024-08-13 20:49Revenue Performance - Revenue for the three months ended June 30, 2024, was $13.2 million, representing a year-over-year growth of 24% from $10.6 million in the same period of 2023[112] - Revenue increased by $2.5 million, or 24%, to $13.2 million for the three months ended June 30, 2024, compared to $10.6 million for the same period in 2023[140] - For the three months ended June 30, 2024, the company reported revenue of $13.2 million, an increase of 23.7% compared to $10.6 million for the same period in 2023[150] Podcast Metrics - The number of podcast downloads decreased to 55,856,000 for the three months ended June 30, 2024, down 40% from 93,539,000 in the same period of 2023, attributed to changes in download behavior due to Apple iOS 17 and the exit of non-revenue generating partner networks[125] - PodcastOne has over 5.7 million monthly unique listeners and 19+ million IAB monthly downloads, showcasing its reach in the podcasting market[110] Content Strategy - The company has acquired exclusive rights to several true crime podcasts for potential television and film projects, indicating a strategy for content expansion[114] - PodcastOne operates Launchpad One, a self-publishing platform for independent podcasters, which serves as a talent pool for discovering new podcasts[112] - The company is actively pursuing additional podcast and asset acquisitions to align with its growth strategy[114] Advertising and Revenue Generation - The company generates revenue primarily through the sale of embedded host-read ads, dynamic ads, and programmatic monetization channels[111] - PodcastOne's advertising strategy focuses on relevant content-based advertising, with 60% of podcast listeners reporting they have purchased something after hearing a podcast ad[115] Financial Performance - Cost of sales rose by $3.5 million, or 42%, to $11.7 million for the three months ended June 30, 2024, from $8.2 million in the prior year[141] - Total operating expenses increased by $4.1 million, or 39%, to $14.5 million for the three months ended June 30, 2024, compared to $10.4 million for the same period in 2023[135] - General and administrative expenses increased by $0.5 million, or 52%, to $1.4 million for the three months ended June 30, 2024, from $0.9 million in 2023[145] - Amortization of intangible assets surged by $0.4 million, or 1,408%, to $0.4 million for the three months ended June 30, 2024, compared to $25,000 in the same period last year[146] - Net loss for the three months ended June 30, 2024, was $1.366 million, compared to a net loss of $210,000 for the same period in 2023[135] - Sales and marketing expenses decreased by $0.4 million, or 32%, to $0.8 million for the three months ended June 30, 2024, from $1.3 million in 2023[143] - Impairment of intangible assets increased by $0.2 million, or 100%, to $0.2 million for the three months ended June 30, 2024, compared to none in the prior year[147] - Total other income (expense) improved to none for the three months ended June 30, 2024, from a loss of $403,000 in the same period in 2023[142] - The adjusted EBITDA for the three months ended June 30, 2024, was a loss of $316,000, compared to a gain of $363,000 for the same period in 2023[149] - The contribution margin for the three months ended June 30, 2024, was $1.45 million, down from $2.42 million in the same period of 2023, reflecting a decrease of 40%[150] Cash and Liquidity - As of June 30, 2024, the company had cash and cash equivalents of $0.9 million, with total outstanding consolidated indebtedness of $8.3 million[153][156] - The net cash used in operating activities for the three months ended June 30, 2024, was $480,000, compared to $46,000 for the same period in 2023[160] - The company anticipates that existing cash resources will not be sufficient to meet current operating and liquidity needs beyond August 2025[157] - The company completed a private placement offering of unsecured convertible notes totaling $8.8 million, which were fully converted in September 2023[153] - The company is exploring additional interim financing to support ongoing operations and meet obligations[157] - As of June 30, 2024, the company had a working capital of $0.9 million, raising substantial doubt about its ability to continue as a going concern[158] Compliance and Governance - As of June 30, 2024, the company had no debt covenants and was in compliance with all covenants under the ABL Credit Facility and the Capchase Loan[164] - The company remediated the material weakness identified in its Annual Report on Form 10-K filed with the SEC on July 1, 2024[167] - The company's disclosure controls and procedures were evaluated and deemed effective as of the end of the period covered by the Quarterly Report[165] Legal Matters - The company is involved in various legal proceedings that may have a material adverse effect on its business, financial condition, or operating results[170] Operational Challenges - The company has a history of losses and must increase revenue and reduce costs to achieve profitable operations[159]