Newly Profitable, Acast Says It’s Outpacing Podcast Biz In Revenue Growth.

In a presentation to investors Monday from its London studios, Acast CEO Ross Adams said the podcast network is “significantly outpacing” the podcast industry in ad revenue growth. Total podcast ad spending has grown at a compound annual growth rate of around 33% since 2017, Adams said, while Acast had an annual sales growth rate of 56% during that period. Industry projections suggest global podcast revenue will reach $5 billion by 2027, reflecting an 8% annual growth rate for the next three years. Acast is forecasting an organic sales compound annual growth rate of 15% for the period of 2025-28.

The independent podcast network achieved profitability in the fourth quarter 2024 with $1.4 million in net income, a major turnaround from a $7.1 million loss a year earlier. The Stockholm-based company is aiming for an adjusted earnings margin of 3% to 5% this year. “We are committed to generating a positive cash flow from operating activities in 2025. The targets affirm our dedication to delivering continued profitability improvements alongside strong revenue growth,” Adams said. 

The updated financial targets were disclosed during Acast’s Capital Markets Day. Adams said they “reflect our focus on driving profitable growth. We are achieving this through investments in the U.S. market, expanding our base of monetizable listens, increasing revenue from automated sales channels, and strengthening our ability to deliver integrated omnichannel campaigns. We are well-equipped to generate long-term value for our creators, advertisers and shareholders,” he added. 

Launched in Sweeden in 2014, Acast has expanded into the U.S., UK and Australia and went public in 2021. Among its strategic acquisitions are the hosting platform Pipa; RadioPublic, a provider of creator tools; data engine Podchaser; and the branded content studio Wonder Media Network. Today, Acast hosts more than 140,000 podcasts with 1 billion quarterly listens and 100 million monthly unique listeners. With a U.S. monthly audience of 22.1 million, Acast advanced to third place among podcast sales networks in Podtrac’s U.S. ranking for March, trailing only the iHeart Audience Network and the NPR Sales Network.

“Essentially, we are an interconnected ecosystem bringing together creators who produce compelling content to attract listeners, using their creativity to build a loyal audience base,” Adams explained.

While podcast advertising continues to grow at a high-single-digit rate, its share of ad spending (around 1%) is disproportionately lower than its share of ad-supported media (about 4.5%). It’s a disconnect all too familiar to radio broadcasters. “Podcasts offer several advantages over other media, and there is no reason for the gap between ad spend and consumption to be bigger than in other formats,” Adams told investors. “Even though podcast ad spending has doubled since 2020 it still needs to increase four and a half times to match the share of podcast consumption, providing substantial headroom for growth.”

Adams’ presentation to investors was as much of a pitch for the podcast medium as it was Acast’s value proposition. He preached about how companies that invest in podcast advertising see exceptional returns. Citing an unnamed economic study using Swedish data between 2021 and 2023, Adams said podcasting produced an average short-term return on ad spend of 4.2 times, compared to an average of 2.7 times across all formats. “Driven by rising consumption and untapped advertising potential, the podcast market is ripe for growth,” he said.