The streaming music and podcast app Targetspot saw its first quarter revenue grow 35% from a year ago to $6.5 million. Growth was driven by 23% year-over-year gains in the U.S. market, as well as an even-stronger 60% growth rate in Europe where the Brussels-based company is based. Parent Audio Valley says its revenue overall, including its Winamp and copyright management business Bridger divisions, rose 30% to $7 million.
Audio Valley says 2022 ads “got off to a very good start” for TargetSpot, with 11 new advertising contracts signed in 2021 that it says “should bear fruit this year and support the growth of the division.”
“Specializing in digital audio advertising, this business is benefiting from the growing adoption of digital audio advertising by not only advertisers but also content publishers,” said CEO Alexandre Saboundjian. The combination of our technological solutions and our international presence also allows us to successfully position ourselves in new segments in buoyant markets such as podcasts and music platforms,” he said in a statement.
Yet after announcing a massive recruitment plan last year, Audio Valley says the hiring spree is “putting a significant strain” on its cash flow. As a result, it is now studying several options in order to keep the Winamp division up and running beyond early-June.
The Winamp division is best known for its audio player that was at the peak of its popularity in the early days of streaming. But as part of an effort to revive the brand, Audio Valley is adopting a new strategy for Winamp to also include Jamendo, which sells musical works, and Bridger, its new copyright management subsidiary. Bridger offers songwriters an efficient and cost-free solution for collecting their streaming royalties.
“Developing this new driver of growth required substantial investment since the end of the second quarter of 2021, which have weighed on our current operating income before depreciation and amortization, which is now slightly negative,” said Saboundjian. “As these investments are expected to continue, we are currently looking into financing options to support our ambitious business plan.”
Winamp’s revenue fell seven percent during the first quarter after ringing up $5.2 million in losses last year. The result was Audio Valley ended 2021 with 6.8 million in red ink overall. The company did raise $9.1 million via a private placement in April 2021 which it used mainly to establish the Winamp division and continue the group's international development.
TargetSpot has been involved in the podcast business since 2018 when it launched a podcast ad marketplace, connecting podcast publishers with advertisers throughout North America and Europe. The Podcast Marketplace utilizes the company’s proprietary technology, including Shoutcast, Winamp and Targetspot Passport.