RE: SP holding well.11 Dec 2024 12:49
FY24E and FY25E EBITDA upgrades of +10% and +14% Audioboom’s FY24 trading update highlights excellent November KPI growth, a strategic focus on the higher gross margin Showcase platform, and an outlook for FY24 revenue of at least $73m and adjusted EBITDA of at least $3.1m, which drives the third upgrade to our FY24E and FY25E adjusted EBITDA in three months. Record monthly brand advertiser count of 10,165 in November reflected +53% yoy revenue growth at Showcase, with the platform resonating with a wide range of brands who are trialling then scaling spend. Firm control of opex has driven the outlook for FY24E adjusted EBITDA to at least $3.1m, and we upgrade FY24E and FY25E adjusted EBITDA +10% and +14% to $3.1m and $4.0m, after upgrading from FY24E and FY25E adjusted EBITDA of $1.3m and $2.0m over October and November. As we explain in more depth below, the strategic focus on the higher gross margin Showcase leads us to revise our FY24E and FY25E revenue, and we then reiterate our FY24E net cash and upgrade FY25E net cash +5% to $4.4m. As management focuses on scaling the platform, EBITDA, and cash, we expect any further upside to our adjusted EBITDA would deliver strong gearing to net cash, and we continue to expect Audioboom will be cash generative including all exceptionals in FY24E and FY25E. We reiterate our target price of 1,300p based on 4x FY25E EV/Sales, and we look forward to Audioboom capitalising on its robust momentum at further trading updates, the renewal and win of key podcasts on attractive terms, and potential external interest in the platform. —Robust progress through 4Q: