The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.
Have to say, I don't find the revenue comments misleading at all. What they are saying is that, if they don't sign another deal this year, the revenue that will be generated this year will exceed that of last year. Clearly, they will do more deals that will generate revenue in 2019 so we can confidently assume that revenue in 2019 will exceed the 2018 figure by a significant margin.
I would agree that the goalposts have moved significantly over the lifetime of this company but that's to be expected for a company in a new technology field. What will be seen as the best business model will change as the industry evolves, BOOM has had to change with environment. Through all this the company has continued to grow revenues exponentially to levels that seemed fantasy when mooted a few years ago.
The company has confirmed that cash in the bank has unchanged over 5 months now and with revenue increasing the company will clearly be in profit this year. Raising money to invest in new content is a world of difference from raising money to keep the lights on. There is an argument that these funds could have been raised by other means but we have no idea how easy, or costly, a loan would be. Hopefully going forward, the higher revenues can used to fund future expansion.
The company has made great strides since the debacle of Triton, it now has four major financial supporters instead of being entirely dependent on Mr Candy. It is in a far better place than it was and sounds like it is heading in the right direction, rapidly. The failings of the past do not impact on the bright future that now looks apparent.
I've added and I wouldn't believe I'd have said that a few months back
That sounds depressingly familiar but the longest journey starts with a single step.
At least the company seems to now be heading in the right direction in terms of revenue, profitability, CPM costs and advertiser numbers. If we can maintain this momentum, should see decent profitability in 2019 which will be reflected in the SP
The CEO went on record a few days ago saying that if revenues continued to grow at their current rate then there would be no need for a further raise before reaching profitability. Are you, (D1AMOND) saying the CEO is simply lying in regard to this?
Current losses are just over £1m per quarter, If we accept the assertion that significant revenue for Q4 has been moved into Q1then it's reasonably safe to assume that Q1 should break even and there are sufficient reserves to cover Q2 so, with revenue accelerating all the time any funding required to break even point would be fairly minimal and I doubt would require a placing
I wonder if Rob was a bit more reserved than usual due to the close proximity of the year end. Saying "we're going to smash the year end forecast" a month before the year end would be treated as a statement of (confidential) fact as opposed to it being viewed as a prediction 9 months out I'm pretty confident we will exceed the year end forecast which is quite something as the figure for 2017 seemed like pie in the sky a couple of years back
In what way are they disappointing? Revenue continue to grow at over 300% year on year and, assuming this continues in Q4, the £5.4m target for the year will be comfortably exceeded. When announced the £5.4m figure seemed a pipe dream but it now looks like being more than achieved. Far from being disappointing, this is remarkable progress with sustained exponential growth being achieved
I saw that article and was surprised, but it's 50% of households have at least one person who has listened to a podcast. So one person in a family of 6 counts as a yes. It's very different from 50% of the population
There really does seem to be some utter drivel been written since the RNS, Obviously we expect it from the likes of Peak, but there's plenty of other clowns out there too. Take the Evening Standard's write up which consisted of "Audioboom announced a higher than expected loss" no mention of revenue, listens, users, nothing - just that. Elsewhere I've seen the phrase "revenue for vanity, profit for sanity" to apply this maxim to a tech start up operating in an industry which, itself, is in its infancy is either wilfully stupid or just plain stupid. To recap, revenue has grown sixfold and is expected to grow sixfold again next year, listens have grown 42% quarter on quarter, that's about 300% pa annualized. To get revenue you need listens, to get listens you need quality content, to get quality content you need to spend, it does not just magic out of thin air. I suspect BOOM could have generated a profit by drawing its horns in and concentrating on its profitable podcasts such as Undisclosed but that would have been short sighted and as the listens dwindle over time, so would the revenue. Instead they have chosen to go out and stake a claim for the biggest share of this market that they can get their hands on in the belief that this is a growing market and what they sow now they will reap many fold as the industry develops and grows. It's like a modern day wild west and they are the prospectors In the longer term, I think the strategy is right and the listen numbers and the exponential rise in revenues suggest it is already working. To focus only on the cost element of this is just daft IMHO, it's like ****ging off a mining company for having to raise to build a mine and ignoring the benefits that may bring further down the line, madness. I sincerely hope the company, and its major shareholders are patient enough to see this through to maturity though I suspect they must be, currently, tearing their hair out