💥Acast's Gross Margin Increases to 39% in Q1 2024, Despite iOS17 Update

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Acast, a leading independent podcast company, experienced a positive start to the year with a net sales growth of 25% (11%), primarily driven by the North American region. The growth was primarily driven by improved sentiment among advertisers and positive returns from investments in the region. Acast's gross margin for the quarter was 39% (36%), and EBITDA for the quarter was SEK -15.1 m (-60.7), resulting in an EBITDA margin of -4% (-18%).The number of listens decreased by 12% compared to the same period last year, which is explained by the effects of iOS17. However, the average revenue per listen (ARPL) increased to SEK 0.37 (0.26), corresponding to an increase of 42% compared to last year. This growth was primarily driven by North America, where sales grew by 48% compared to the same period last year.Acast's Predictive Demographics solution, which includes more data, offers advertisers unprecedented precision in audience targeting for the future cookie-free world. With this update, Predictive Demographics extends its AI-driven prediction model to include more data, enabling more precise targeting across three million English-speaking podcasts globally. In February, The Telegraph, one of the world's oldest and most well-respected news organizations, joined Acast to further grow and expand its podcast network. Acast now is home to every major news publisher in the UK, with The Telegraph joining BBC, The Times, The Guardian, The New Statesman, The FT, Tortoise Media, and The Economist.Higher Ground, Barack Obama and Michelle Obama's media company, launched its new Ways to Win podcast with Acast in March. The show began with a mini-series during March Madness, one of the biggest sporting events of the year, with the premiere starring Barack Obama discussing his NCAA March Madness bracket selections.Acast's sales growth during the first quarter amounted to 25%, of which 23% was organic growth. The improved growth is primarily due to a strong development in North America, where sales grew by 48% compared to the same period last year. The European and 'Other Markets' regions, where the advertising markets are subject to higher uncertainty, grew sales by 16% and 20% respectively.Acast's gross margin for the period was 39%, corresponding to a 3 percentage point increase compared to last year. The positive development is driven by Podchaser and a favorable product mix. At the same time, the company maintained good cost control with operational expenses (excluding D&A) 3% below last year's level.Acast has maintained its position as a pioneer in the podcast industry since its introduction of Dynamic Ad Insertion (DAI) in 2014, with nearly 125,000 podcasts globally and a strong position in the world's largest podcast advertising market. By continuously attracting new advertisers and creators to their platform, entering new partnerships with major industry players, and driving industry innovation, Acast continues to advance its position as the leading independent podcast company globally.

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