PodcastOne (NASDAQ:PODC) Releases Earnings Results

Key Points

• PodcastOne reported record quarterly revenue of $16.1 million, while adjusted EBITDA increased to $1.6 million from $580,000 year over year. However, the operating loss widened to $1.6 million and net loss reached $1.6 million, or $0.05 per share, partly due to higher stock-based compensation.
• The company rose to No. 6 among U.S. podcast publishers and is expanding through acquisitions, creator renewals, original programming and partnerships, while pursuing monetization opportunities in video, social media and major distribution platforms.
• PodcastOne ended the quarter with $7 million in cash and no debt, but its shares fell to $3.08 and analysts maintain a consensus “Reduce” rating, with one Hold and one Sell recommendation.

PodcastOne (NASDAQ:PODC - Get Free Report) announced its quarterly earnings data on Wednesday. The company reported ($0.05) EPS for the quarter, Zacks reports. PodcastOne had a negative return on equity of 16.98% and a negative net margin of 4.29%.

Here are the key takeaways from PodcastOne's conference call:

• Record first-quarter revenue reached $16.1 million, while adjusted EBITDA rose to $1.6 million from $580,000 year over year, driven by revenue growth and improved contribution margins.
• The operating loss widened to $1.6 million from $1.1 million, and net loss increased to $1.6 million, or $0.05 per share, primarily due to higher stock-based compensation in general and administrative expenses.
• PodcastOne advanced to No. 6 among U.S. podcast publishers and expanded its content portfolio through acquisitions, creator renewals, original programming, and partnerships including A&E's “The First 48.”
• Management highlighted growing monetization opportunities from video, short-form social content, and distribution through YouTube, Netflix, Amazon, Spotify, and SiriusXM, with video and integrated campaigns supporting higher advertising CPMs.
• The company ended the quarter with $7 million in cash and no debt, while management said it is evaluating additional acquisitions and expects typical seasonal softness during summer followed by its strongest business period in calendar-year fourth quarter.

PodcastOne Price Performance

Shares of PODC stock traded down $0.24 during trading hours on Wednesday, reaching $3.08. The company had a trading volume of 60,239 shares, compared to its average volume of 123,427. The company has a market cap of $93.01 million, a price-to-earnings ratio of -28.00 and a beta of 2.15. PodcastOne has a 12 month low of $1.30 and a 12 month high of $5.20. The business has a fifty day simple moving average of $3.98 and a 200-day simple moving average of $3.27.

Insider Transactions at PodcastOne

In related news, Director D Jonathan Merriman purchased 7,000 shares of the stock in a transaction that occurred on Friday, May 22nd. The stock was acquired at an average cost of $4.38 per share, with a total value of $30,660.00. Following the transaction, the director owned 309,732 shares of the company's stock, valued at $1,356,626.16. This represents a 2.31% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Company insiders own 7.80% of the company's stock.

Institutional Trading of PodcastOne

Institutional investors have recently made changes to their positions in the company. Creative Planning purchased a new position in PodcastOne in the second quarter worth $49,000. Citadel Advisors LLC grew its position in PodcastOne by 267.5% during the third quarter. Citadel Advisors LLC now owns 41,958 shares of the company's stock valued at $70,000 after buying an additional 30,541 shares during the period. Finally, NewEdge Advisors LLC purchased a new stake in PodcastOne during the fourth quarter worth about $81,000. Institutional investors own 2.87% of the company's stock.

Analyst Ratings Changes

A number of equities research analysts have commented on PODC shares. Wall Street Zen cut shares of PodcastOne from a "buy" rating to a "hold" rating in a report on Saturday, June 27th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of PodcastOne in a research report on Wednesday, June 24th. One equities research analyst has rated the stock with a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the company has a consensus rating of "Reduce".

PodcastOne Company Profile

PodcastOne is a leading digital audio network specializing in the development, production and distribution of original podcast programming. The company offers a diverse slate of exclusive shows spanning genres such as entertainment, sports, business, politics and lifestyle. Its content lineup features long-form interviews, narrative series and personality-driven talk formats designed to engage listeners across North America and beyond.

The company's revenue model centers on advertising and branded content solutions.

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