PodcastOne, Inc. Q3 FY2024 earnings call

• PodcastOne is a premier podcasting network with a key role in the podcast industry's evolution, with over 196 shows and monthly unique U.S. audiences of 5.2 million and 16.2 million U.S. downloads/streams.
• Signed Stassi Schroeder to a multi-year seven figure deal. PodcastOne provides comprehensive support to podcasters including studio space, marketing, production, etc.
• In January, partnered with Amazon's ART19 for podcast hosting, which brings operational efficiencies, cost savings, revenue growth via a $15 million over three-year minimum guarantee, and access to enhanced analytics and advertising opportunities.
• Launched PodcastOne Pro with customizable services, and sees potential in live shows with hosts like Stassi Schroeder.

In the fiscal third quarter of 2025, PodcastOne's revenue increased 22% to $12.7 million compared to $10.4 million in the same quarter of the prior year. Operating loss was $1.6 million in Q3 2025 versus $2.6 million in Q3 2024. Net loss was $1.6 million or $0.06 per basic and diluted share in Q3 2025 compared to a net loss of $2.6 million or $0.11 per share in Q3 2024. Adjusted EBITDA in Q3 2025 was negative $0.7 million versus negative $0.4 million in Q3 2024. For fiscal 2025, PodcastOne expects revenues to be at least $51 million, representing a 17% increase from fiscal 2024's $43.3 million, and projects positive adjusted EBITDA for the full year.

• Reaffirmed fiscal 2025 guidance, expecting revenues of at least $51 million (17% increase from fiscal 2024).
• Projected positive adjusted EBITDA for fiscal 2025.
• Revenue deals in Q4 and equity-based revenue share deals with talent starting to be effective in Q4 contribute to confidence in the guidance.

Q: Can you explain the timing behind the content acquisition costs affecting adjusted EBITDA?

A: Aaron Sullivan stated it's a timing issue; some revenue deals expected in Q3 moved into Q4, and content costs/minimum guarantees in Q3 were expensed without corresponding revenue in the same quarter.

Q: What's the outlook for G&A spending?

A: Aaron Sullivan said G&A spending should be pretty consistent going forward.

Q: Where do we see financial benefits of working with ART19?

A: Kit Gray mentioned cost efficiencies on the operational side, less cost for the team to run tech, and revenue growth with payments from ART19 based on minimum guarantee and audience thresholds, along with potential for higher CPMs from more demand across revenue channels.

Q: How does ART19 enhance PodcastOne's position versus competitors like Spotify, Apple?

A: Kit Gray said it helps with better revenue forecasting based on three revenue-generating channels (direct sales, ART19, programmatic), allows better calculation of show value, and provides technology advancements and a stronger position compared to self-hosting.

Q: Talk about the hot podcasts and upcoming additions?

A: Kit Gray mentioned Stassi and Vanderpump shows, Kail Lowry's network, A&E's Ancient Aliens, and focus on female programming, true crime, and IP ownership, with plans for events like LADYGANG's three-day weekend event.