Acast: Interim report January-March 2021

First quarter 2021 (first quarter 2020)

• Listens reached 872M (603M)
• Net sales growth amounted to 74% compared to Q1 2020
• Organic net sales growth amounted to 86% compared to Q1 2020
• Net sales amounted to SEK 197,434 thousand (113,233)
• Gross margin of 36% (35%)
• Operating loss totaled SEK -44,437 thousand (-46,643)
• Operating margin of -23% (-41%)
• Net loss for the period amounted to SEK -49,231 thousand (-45,105)
• Cash flow from operating activities totaled SEK 1,091 thousand (-69,646)
• Earnings per share basic and diluted amounted to SEK -18.62 (-18.86)

Significant events in the first quarter of 2021

• Acquisition of assets in the US podcasting company RadioPublic, aiming to further strengthen the relationship between podcasters and listeners.
• Beta launch of Acast+, bringing new monetization options to podcasters, including the ability to offer ad-free streams, bonus content and more to paying subscribers.
• Acast’s Board of Directors initiates a review of the company’s capital structure including the potential listing of the company’s shares. The review is to be carried out during the spring 2021.

Comments from the CEO

Q1: Strong growth continues in the first quarter

Acast began the first quarter of 2021 in a good way, with strong revenue growth and new products being launched to empower our creators. Compared to the first quarter 2020, our revenues grew by a stunning 74%, proving that we are on the right path with our unique infrastructure platform and that we are driven by the unstoppable shift from traditional radio towards podcasts.

Our growth was supported by a number of key content signings in our important global markets, which I am proud of — including the Audible original West Cork, which Acast has brought to the open podcast ecosystem for the first time, making it available for anyone to listen to, anywhere, for free. Other high-profile Q1 signings included the New York Post (US), Taskmaster (UK), Tortoise Media (UK), Plan B (Norway), Radio Formula (Mexico) and That’s Enough Already (NZ). Our content acquisition strategy has seen the number of podcasts that are part of the Acast network grow to more than 28,000. And advertisers have followed suit, illustrating that our podcasts can deliver impactful campaigns and strong return on investment.

During March we announced the beta launch of Acast+, bringing a whole raft of new monetization options to podcasters, including the ability to offer ad-free streams, extended episodes, bonus content and much more to paying subscribers.

The launch of Acast+ reiterates our creator-first mission and places us at the heart of the Creator Economy in podcasting, supporting our strong belief that every podcaster should be able to make money from their show in whichever ways suit them — whether that’s through advertising, sponsorship, listener membership, events, or whatever works best for their individual podcast. Acast+ will launch in full later this year, but some of our beta partners are already seeing an uplift in revenue of 20%.

Acast’s acquisition of RadioPublic, the US podcast technology start-up, was also finalised in Q1. This deal will boost Acast’s presence in the US, allowing us to further develop our word-class tools. RadioPublic’s Listener Relationship Management platform, which allows podcasters to foster even deeper relationships with fans, is at the heart of the acquisition.

The launch of Acast+ and the acquisition of RadioPublic came off the back of several important steps for Acast in the Americas during 2020, including our collaboration with the leading membership platform Patreon — which enables podcasters on the platform to distribute private, patron-only content to their listeners’ podcast app of choice, and the launch of Acast in Mexico.

In March, Acast’s Board of Directors announced that it will conduct a review of potential strategic and financial initiatives, including our capital structure as well as an initial public offering and listing of the company’s shares. The review is to be undertaken during the spring.

Having successfully navigated the pandemic that crippled so many other industries during 2020, and after registering yet another record-breaking year for Acast globally, our first-quarter results show a strong start of 2021.

ROSS ADAMS
Chief Executive Officer

For more information

Emily Villatte, CFO
Tel: +46 76 525 0142
Email: emily.villatte@acast.com

Ross Adams, VD
Tel: +44 79 9052 0761
Email: ross@acast.com

About Acast

Acast is the power source of podcasting, offering everything creators and advertisers need to find and reach millions of engaged listeners around the world.

We’re supercharging a thriving, profitable, fair and sustainable open ecosystem for the world’s podcasts — from those of household name media brands like the BBC, the Guardian, Financial Times, the Economist and Aftobladet to shows from celebrities and influencers such as Table Manners with Jessie Ware, Wahlgren & Wistam, My Dad Wrote a Porno, JLC and Romesh Ranganathan’s Hip Hop Saved My Life, or simply anyone who wants to create.

We connect podcasters, listeners and advertisers through the most innovative, world class products, tools and services, and on the world’s biggest podcast marketplace.

Founded in 2014, Acast now hosts 28,000 podcasts — reaching c. 300 million listeners every month and working with thousands of brands. We’re For The Stories.

For brilliant podcasters

For smart advertisers

For The Stories