British audio startup Audioboom saw revenues jump last year because podcasts are so popular — but it’s still losing money.
According to financial filings, the company brought in £1.3 million for the full year 2016, up from £0.2 million in 2015. That was on a loss of £4.8 million, down from a loss of £7.3 million in 2015. Revenues were driven primarily by advertising.
Audioboom said it’s banking on US expansion, where the podcast market is more mature than in the UK. It’s invested in more sales staff in the US, and last month opened a dedicated studio in New York.
That’s meant cutting staff in the UK by 35%, the company said. It also restructured its Australian and Indian offices. Audioboom did not immediately comment.
Audioboom said it’s booked £3 million in advertising campaigns for 2017, and said it plans to woo media agencies with “superior” engagement metrics. The company bought social media filtering tool Sonr earlier this year, and said Sonr’s AI and natural language processing tech would help “match ads to listeners”.
Chief executive Rob Proctor said in a shareholder statement: “During the rest of 2017, we expect to see the investments made in 2016, particularly in the US where the podcast industry is more mature and developed, begin to gain further traction and accelerate revenues further.”
Audioboom said it had enough cash to continue operating for the next year, helped by reduced cash burn and a recent £4.5 million cash injection through share placing and subscription, from investors including existing backer Nick Candy and newcomer Edge Investments.