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Acast AB (STU:0PN) Q4 2024 Earnings Call Highlights: Strong North American Growth and Positive ...

In This Article:

  • Net Sales Growth (Q4 2024): 17% overall growth, with 15% organic growth.

  • North America Revenue Growth (Q4 2024): 33% increase.

  • Gross Margin (Q4 2024): 40%.

  • EBITDA Profit (Q4 2024): SEK34 million, corresponding to a 6% margin.

  • Full Year Net Sales Growth (2024): 19% overall growth, with 18% organic growth.

  • Full Year Gross Margin (2024): 39%.

  • Full Year EBITDA (2024): SEK24 million.

  • Average Revenue Per Listen (Q4 2024): SEK0.54, reflecting 28% year-on-year growth.

  • Operating Cash Flow (Q4 2024): Positive SEK55 million.

  • Free Cash Flow (Q4 2024): Positive SEK28 million.

  • Revenue Growth by Segment (Q4 2024): Europe 12%, North America 33%, Other Markets flat.

  • Top Market Performance (2024): UK 2% growth, US 37% growth, Sweden 28% growth.

Release Date: February 12, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Acast AB (STU:0PN) achieved a 17% net sales growth in Q4 2024, with 15% being organic growth.

  • The company reported a 33% revenue growth in North America, highlighting strong market performance.

  • Acast AB (STU:0PN) successfully reached a milestone of positive EBITDA, reflecting profitability improvements.

  • The acquisition of Wonder Media Network is expected to open new revenue streams and enhance omnichannel campaign capabilities.

  • Acast AB (STU:0PN) has expanded its podcast portfolio, adding high-profile content like TED Audio Collective and Casefile, which have significant listener bases.

Negative Points

  • Acast AB (STU:0PN) experienced a 13% decline in listens in 2024, primarily due to the iOS 17 effect.

  • The UK market faced challenges with a moderate growth rate of 2% due to a difficult advertising environment.

  • The company lost the BBC as a partner, impacting its listenership, although it managed to offset the commercial value with new shows.

  • There was a slight reduction in CPMs, influenced by a shift in product mix towards more ads, which generally have lower CPMs than sponsorships.

  • The company acknowledges the need for more tailwinds from the ad market to fully meet its revenue growth targets.

Q & A Highlights

Q: How do you monetize omnichannel campaigns, and is it a different model from your ad revenue? A: Omnichannel campaigns involve deeper engagement with creators across platforms like YouTube, Instagram, and TikTok. These are high-value, multi-platform deals. The revenue model for these campaigns has a similar gross margin profile as the rest of our business. - Ross Adams, CEO & Emily Villatte, CFO