Ballooning Profits, Not Revenue, Is The Q1 Story For Audioboom.

First-quarter 2025 revenue reached $17.3 million at Audioboom, a 1% uptick from one year ago, the global podcast company reported Wednesday. While billings grew only a smidge, profits shot up tenfold, rising from just $70,000 in Q1 2024 to $700,000 in Q1 2025. CEO Stuart Last called that “a fantastic way to kick off 2025,” noting that Audioboom’s business model “continues to go from strength to strength as our focus on higher-margin revenue coupled with our continuing stable operating costs has delivered a very positive Q1.”

Last said that focus led the company to relinquish numerous low-performing contracts during the quarter. “We replaced them with higher-margin revenue — so while our revenue growth is in the low single figures, it is significantly healthier, and it is exactly where we expected it to be,” he said. That was a major factor in the spike in profits during the quarter.

Q1 is historically the seasonal low point for revenue and profit, and management said they expect revenue growth to accelerate in future quarters alongside “further gearing” of adjusted profit.

Q1 revenue for Showcase, the company’s higher gross margin, tech-based global advertising marketplace, ballooned 36% year-over-year. “In Q1 Showcase became AI-powered as we launched a new partnership with Sounder to bring artificial intelligence to our marketplace,” Last said in a press release ahead of the company’s quarterly “trading update” with analysts and investors. “We’ll use AI to provide contextual targeting and brand safety guidance to our advertisers, adding a level of sophistication that is needed to expand our work with global blue-chip brands.”

Average revenue per 1,000 downloads jumped 17% to $60.83.

The number of average brand advertisers at Audioboom rose to 8,974, up 14% from 7,839 a year ago. 

Last said the Audioboom Creator Network “continues to grow.” In March, a new partnership with Smosh Network went live and “is already performing well,” he noted. New network shows, including Smosh Mouth and Smosh Reads Reddit Stories, are expected to generate more than 5 million monthly downloads and YouTube views.

The company ended the quarter with $4.3 million in cash on hand, up from $3.9 million at the end of 2024.

Management is upbeat about meeting its revenue and profit goals in 2025. Audioboom has more than $63 million in sales on the books for the year, including $9 million added since its January financial update and $8 million more than at the same point last year.

Audioboom says it expects “minimal impact to its performance” from the Trump administration’s recently imposed tariffs, due to the production and sale of its inventory being within specific territories.

“It is very pleasing to see the positive momentum of 2024 continue into the first quarter of 2025, and we are looking forward to that momentum building through the rest of the year,” Last said.