Q4 2025 PodcastOne Inc Earnings Call

[music].

Unknown Executive: Good morning, ladies and gentlemen, thank you for standing by.

Good morning, ladies and gentlemen, thank you for standing by welcome to podcast, one fiscal fourth quarter 2025 business update and financial results conference call and webcast.

Unknown Executive: Welcome to PodcastOne Fiscal Fourth Quarter 2025 Business Update and Financial Results Conference Call and Webcast. During today's presentation, all parties will be in a listen-only mode. Following the presentation, the conference will be open for questions.

During todays presentation, all parties will be in a listen only mode.

Speaker Change: In the presentation. The conference will be opened for questions on our call today is kit Gray president and founder of podcast, one and myself, Ryan Carhartt, Chief Financial Officer, I would like to remind you that some of the statements made on today's call are forward looking and are based on current expectations.

Ryan Carhart: On our call today is Kit Gray, President and Founder of PodcastOne, and myself, Ryan Carhart, Chief Financial Officer. I would like to remind you that some of the statements made on today's call are forward-looking and are based on current expectations, forecasts, and assumptions that involve various risks and uncertainties. These statements include, but are not limited to, statements regarding the future performance of the company, including expected future financial results and expected future growth in the business. Actual results may differ materially from those discussed on this call for a variety of reasons.

<unk> forecasts and assumptions that involve various risks and uncertainties. These statements include but are not limited to statements regarding the future performance of the company, including expected future financial results and expected future growth in the business actual results may differ materially from those discussed on this call for a variety of reasons.

Unknown Executive: Please refer to PodcastOne's filing with the SEC for information about factors which could cause the company's actual results to differ materially from these forward-looking statements, including those described in PodcastOne's Form 10-K for the year ended March 31, 2025, filed by the company with the SEC on July 2, 2025, and subsequent SEC filings made by the company.

Please refer to podcast one filing with the FCC for information about factors, which could cause the company's actual results to differ materially from these forward looking statements, including those described in podcast ones Form 10-K for the year ended March 31, 2025 filed by the company with that.

Speaker Change: S D C. On July 2nd 2025, and subsequent SEC filings made by the company you will find reconciliations of non-GAAP financial measures to the most comparable GAAP financial measures discussed today in the company's earnings release, which is posted on its investor Relations website.

Unknown Executive: You will find reconciliations of non-GAAP financial measures to the most comparable GAAP financial measures discussed today in the company's earnings release, which is posted on its Investor Relations website. The company encourages you to periodically visit its Investor Relations website for important content.

Speaker Change: The company encourages you to periodically visit its investor relations website for important content. The following discussion including responses to your questions contains time sensitive information and reflects management's view as of the date of this call July 3rd 2025, and except as required by law. The company does not undertake.

Unknown Executive: The following discussion, including responses to your questions, contains time-sensitive information and reflects management's view as of the date of this call, July 3, 2025. And except as required by law, the company does not undertake any obligation to update or revise this information after the date of this call.

Any obligation to update or revise this information after the date of this call I'd like to highlight to investors that this call is being recorded podcast, one that's making it available to investors and the media via webcast and a replay will be available on podcast ones IR website in the events section shortly following the conclusion of the call.

Unknown Executive: I'd like to highlight to investors that this call is being recorded. PodcastOne is making it available to investors and the media via webcast, and a replay will be available on PodcastOne's IR website in the Events section shortly following the conclusion of the call. Additionally, it is the property of the company and any redistribution, retransmission, or rebroadcast of the call or the webcast in any form without the company's express written consent is strictly prohibited.

Additionally, it is the property of the company and any redistribution retransmission or rebroadcast of the call or the webcast in any form without the company's express written consent is strictly prohibited.

Kit Gray: Now, I would like to turn the call over to PodcastOne's President, Kit Gray. Thank you and welcome to our fiscal fourth quarter 2025 earnings call. As a reminder, we are not on a calendar reporting year and our fiscal year 2025 ends on March 31.

Speaker Change: Now I would like to turn the call over to podcast ones President Greg.

Thank you and welcome to our fiscal fourth quarter 2025 earnings call. As a reminder, we are not on a calendar reporting here in our fiscal year 'twenty twenty-five ends on March 31st today I will provide a brief overview of podcast, one and a continuously growing.

Kit Gray: Today, I will provide a brief overview of PodcastOne in the continuously growing podcast market and highlight our recent successes before passing on to Ryan for the financial results. After his comments, I will close with an update on our strategic initiatives and what we are looking forward to in the quarters to come.

Speaker Change: Podcast market and highlight our recent successes before passing on to Ryan for the financial results. After his comments I will close with an update on our strategic initiatives and what we are looking forward to in the quarters to come Lastly, we will open it up for Q&A podcast, one is a premier podcasts network that is.

Kit Gray: Lastly, we will open it up for Q&A. Podcasting has become one of the most trusted and engaging media formats, with over 4 million podcasts registered worldwide as of 2025. The industry continues to grow, with advertisers projected to invest over $2.4 billion in podcast advertising this year. PodcastOne is a sales network for over 500 of the largest advertisers to reach core demographics effectively and efficiently. PodcastOne and its 206 shows are positioned at the center of this growth, capitalizing on both the increasing audience demand and the effectiveness of podcast advertising as a high ROI media channel. PodcastOne has been ranked as a Top 10 U.S.

Speaker Change: A key role in the evolution of the broadcast industry since its founding in 2012 as the only pure play publicly traded podcast company in the United States podcast, one provides a platform for top tier content creators offering comprehensive support across production marketing.

Speaker Change: Health and distribution podcast thing has become one of the most trusted and engaging media formats with over 4 million podcast registered worldwide as of 2025. The industry continues to grow with advertisers projected to invest over $2 $4 billion and podcast advertising.

Speaker Change: This year podcasts, one is a sales network for over 500 of the largest advertisers to reach core demographics, effectively and efficiently podcast one and at 206 shows are positioned at the center of this growth capitalizing on both the increasing audience demand and the effectiveness.

Speaker Change: A podcast advertising as a high ROI media channel podcast, one has been ranked as a top 10 U S podcast publisher for the sixth consecutive months bipod track with a monthly unique U S audience of 6 million and 16.9 million U S downloads and streams.

Kit Gray: Podcast Publisher for the sixth consecutive month by PodTrack, with a monthly unique U.S. audience of 6 million and 16.9 million U.S. downloads and streams. With our industry-leading platform, we empower podcast hosts to reach their full potential by providing comprehensive, world-class support. Our 360-degree marketing capabilities drive growth and exposure, enabling talent to focus on what they do best, creating great content. This support includes access to studio space, marketing, production, editing, distribution, and public relations. Additionally, our experienced direct sales team leverages long-standing relationships with advertisers and brands seeking to connect with the highly engaged audiences of podcasts on our platform.

Speaker Change: With our industry, leading platform, we empower podcast that's to reach their full potential by providing comprehensive world class support our a 360 degree marketing capabilities drive growth and exposure, enabling talent to focus on what they do best creating great content. The support includes access to.

Speaker Change: <unk> studio space marketing production editing distribution and public relations. Additionally, our experienced direct sales team leverages long standing relationships with advertisers and brands seeking to connect with the highly engaged audiences of podcast on our platform.

Kit Gray: In Q4, we renewed several of our highest performing legacy shows, including the Adam Carolla Show, Off the Vine, the Adam and Drew Show, and the Brendan Schaub Network, further solidifying our foundation of long-standing, high-engagement content. We also expanded our partnership with A&E and the History Channel by adding Ancient Aliens to our roster, a key addition that blends mass appeal with cults fandom. New original titles this quarter include Kate and Ty Break It Down, and Detox Retox with Tom Schwartz, each drawing strong early audience. We successfully began our official migration to Amazon's ART19 platform, hitting our minimum guarantee milestone in April.

Speaker Change: And Q4, we renewed several of our highest performing legacy shares, including the Adam Carolla show off the vine, the Adam and drew shell and the Brandon Shah Network further solidifying our foundation of long standing high engagement content.

Speaker Change: We also expanded our partnership with an E and the history channel by adding ancient aliens to our roster. A key addition that blends mass appeal with coal and.

Speaker Change: New original titles. This quarter include Kate and tie break it down and detox re talks with Tom Schwartz each drawing strong early audiences. We successfully began our official migration to Amazon's art 19 platform hitting our minimum guarantee milestone in April this migration.

Kit Gray: This migration introduces a new core monetization channel alongside our direct sales and programmatic revenue stream. Additionally, our innovative PodRoll network and PodcastOne Pro services have begun contributing meaningfully to our revenue map. PodcastOne Pro, launched with our new state-of-the-art studio in Beverly Hills, has quickly become a draw for brands like Lovesac and Motortrend. These clients rely on our infrastructure and talent to produce high-quality branded content. PodcastOne Pro offers a la carte or full 360 degree production solutions empowering brands to harness podcasting with unmatched efficiency. We also completed a fully renovation of our Beverly Hills studio, further elevating the quality, flexibility, and aesthetic appeal of our in-house production capabilities.

Speaker Change: And introduces a new core monetization channel alongside our direct sales and programmatic revenue streams. Additionally, our innovative hard roll network and podcast one pro services have begun contributing meaningfully to our revenue mix.

Speaker Change: I guess, one pro launched with our new state of the art studio in Beverly Hills has quickly become a draw for brands like love Sac and motor trend. These clients rely on our infrastructure and talent to produce high quality branded content.

Speaker Change: Podcast, one pro offers Ala carte or full 360 degree production solutions empowering brands, who harnessed hog casting with unmatched efficiency. We also completed a fully renovation of our Beverly Hills studio further elevating the quality flexibility and aesthetic appeal of our in house.

Speaker Change: <unk> production capabilities, we continue to drive value through brand integration celebrity guest appearances and experiential events Q4 guests highlights include Mel Robbins on both off the vine and Ive had it Sebastian Manas gaucho on the Adam Carolla Jo Anne Cameron Hall on Lady Guy.

Kit Gray: We continue to drive value through brand integration, celebrity guest appearances, and experiential events. Q4 guest highlights include Mel Robbins on both Off the Vine and I've Had It, Sebastian Maniscalco on The Adam Carolla Show, and Tamron Hall on Lady Gaga. Speaking of Lady Gang, we are proud to announce the upcoming Lady World Tour, which builds on their incredible brand equity and community.

Speaker Change: <unk> of Lady Gang, we were proud to announce the upcoming Lady World Tour, which builds on their incredible brand equity and community. We expect this initiative to drive incremental audience growth brand sponsorships and live event revenue in the second half of 2025. Thanks to these expanding revenue streams are at 19 pod.

Kit Gray: We expect this initiative to drive incremental audience growth, brand sponsorships, and live event revenue in the second half of 2025.

Ryan Carhart: Thanks to these expanding revenue streams, Part 19, PodRoll, PodcastOne Pro, and premium As a review of the fiscal fourth quarter financial results, revenue in the fiscal fourth quarter of 2025 increased 20% to $14.1 million, compared to $11.7 million in the same quarter a year ago. Operating loss in the fiscal fourth quarter of 2025 was $1.8 million, compared to an operating loss of $1.2 million in the same quarter a year ago. This was primarily driven by higher non-cash stock compensation. Net loss in the fiscal fourth quarter of 2025 was $1.8 million, or a loss of $0.06 per basic and diluted share, compared to a net loss of $1 million, or $0.05 per basic and diluted share, in the quarter a year ago.

Speaker Change: A podcast one pro and premium subscriptions, we saw a 20% year over year increase in revenue from Q4 'twenty 'twenty four for Q4 2025. This performance reflects our continued focus on monetization diversification and premium content now before going any further I'd.

Ryan Carhartt: Like to turn the call over to Ryan our CFO to walk through the financial results for the fiscal fourth quarter Ryan.

Ryan Carhartt: Thank you kit as Kipp mentioned at the beginning of the call I want to again remind listeners that our fiscal year end on March 31 as.

Ryan Carhartt: As a review of the fiscal fourth quarter financial results revenue in the fiscal fourth quarter of 2025 increased 20% to $14 1 million compared to $11 7 million in the same quarter a year ago operating loss in the fiscal fourth quarter of 2025 was $1 8 million compared to an operating loss of one.

Ryan Carhartt: 2 million in the same quarter a year ago. This was primarily driven by higher noncash stock compensation expense.

Ryan Carhartt: Net loss in the fiscal fourth quarter of 2025 was $1 8 million or a loss of six cents per basic and diluted share compared to a net loss of $1 million or five cents per basic and diluted share in the quarter a year ago adjusted EBITDA in the fiscal fourth quarter of 2025 was positive 0.9.

Ryan Carhart: Adjusted EBITDA in the fiscal fourth quarter of 2025 was positive $0.9 million, compared to adjusted EBITDA of positive $0.3 million in the same quarter a year ago. The change in adjusted EBITDA was primarily due to timing of content acquisition costs. We ended the fiscal fourth quarter with no debt on our balance sheet and $1.1 million in cash in cash equivalents as of March 31, 2025.

Ryan Carhartt: Compared to adjusted EBITDA of positive zero point $3 million in the same quarter a year ago.

Ryan Carhartt: The change in adjusted EBITDA was primarily due to timing of content acquisition costs. We ended the fiscal fourth quarter with no debt on our balance sheet and $1 1 million in cash and cash equivalents as of March 31, 2025, as a review of the fiscal FY 'twenty five financial results revenue in the fiscal year.

Ryan Carhart: As a review of the fiscal FY25 financial results, revenue in the fiscal year of 2025 increased 20% to $52.1 million, compared to $43.3 million in fiscal year 2024. Operating loss in the fiscal year of 2025 was $6.4 million, compared to an operating loss of $5 million in fiscal year 2024. This was primarily driven by higher non-cash stock compensation. Net loss in the fiscal year 2025 was $6.4 million, or $0.27 per basic and diluted share, compared to a net loss of $14.7 million, or 68% loss per basic and diluted share in fiscal year 2024. Adjusted EBITDA in the fiscal year of 2025 was negative $0.5 million, compared to adjusted EBITDA of positive $0.5 million in fiscal year 2024.

Ryan Carhartt: Of 2025 increased 20% to $52 1 million compared to $43 3 million in fiscal year 2024 operating loss in the fiscal year of 2025 was $6 4 million compared to an operating loss of $5 million in fiscal year 2024. This was primarily driven by higher non.

Ryan Carhartt: Cash stock compensation expense net loss in the fiscal year 2025 was $6 4 million or 27 cents per basic and diluted share compared to a net loss of $14 7 million or 68% loss per basic and diluted share in fiscal year 2020 for adjusted EBITDA and the.

Ryan Carhartt: Fiscal year of 2025 was negative 0.5 million compared to adjusted EBITDA of positive 0.5 million in fiscal year 'twenty 'twenty four as we look ahead I'd like to also briefly touch on guidance. We are pleased with the progress this quarter and given the revenue generating deals that are currently in place for fiscal year <unk>.

Ryan Carhart: As we look ahead, I'd like to also briefly touch on guidance. We are pleased with the progress this quarter, and given the revenue generating deals that are currently in place for fiscal year 2026, along with the equity-based revenue share deals with certain podcast talent, we are comfortable raising our fiscal year 2026 guidance. We expect revenues for the full year to be between $55 and $60 million. We are also expecting adjusted EBITDA for the full year to be between positive $3 and $5 million. Additionally, we have completed our financing after year-end with our partners at JGB Capital, replacing our East West Bank line of credit.

Ryan Carhartt: 26, along with the equity base revenue share deals with certain podcast talent, we are comfortable raising our fiscal year 2026 guidance. We expect revenues for the full year to be between 55 and $60 million. We are also expecting adjusted EBITDA for the full year to be between positive three and.

Ryan Carhartt: 5 million.

Ryan Carhartt: Additionally, we have completed our financing after year end with our partners at GE JV capital, replacing our East West Bank line of credit. This will help facilitate the growth of our business, allowing us to sign new podcasts and potentially acquire podcast networks. We are poised for the future and excited about our next phase of growth.

Ryan Carhart: This will help facilitate the growth of our business, allowing us to sign new podcasts and potentially acquire podcast networks.

Kit Gray: We are poised for the future and excited about our next phase of growth.

Kit Gray: Now, I'd like to turn the call back to Kit for some additional comments on the fiscal year before wrapping up with questions from the audience. Thanks, Ryan.

Kit Gray: Now I'd like to turn the call back to kit for some additional comments on the quarter and fiscal year before wrapping up with questions from the audience. Thanks.

Speaker Change: Thanks, Ryan in closing, we delivered a strong fiscal fourth calendar first quarter, achieving double digit revenue growth once again, signifying podcast ones largest ever revenue result for the period.

Kit Gray: In closing, we delivered a strong fiscal fourth calendar first quarter, achieving double digit revenue growth, once again signifying PodcastOne's largest ever revenue result for the period. The momentum continued into the start of calendar 2025, marked by major accomplishments, including the new relationship with Amazon's ART19, the extension of flagship podcasts from Adam Carolla, Brendan Schaub, and Caitlin Brisseau, as well as the expansion of Kale Lowry's award-winning slate of shows through the Killer Network under PodcastOne's umbrella. PodcastOne now hosts 206 shows, having added 64 new programs in 2024 and 10 exciting new shows this last quarter alone.

Speaker Change: The momentum continued into the start of calendar 'twenty 'twenty five mark by major accomplishments, including the new relationship with Amazon's Art 19, the extension of flagship podcast from Adam Carolla, Brendan job in Canada, and Brazil, as well as the expansion of calories award winning slate of shows.

Speaker Change: As through the killer network under podcast ones umbrella podcasts. One now hosts 206 shares having added 64, new programs in 'twenty 'twenty, four and 10 exciting new shows this last quarter alone.

Kit Gray: PodcastOne's talent roster continues to expand, supported by a debt-free balance sheet and multiple accretive growth opportunities. We are actively evaluating M&A prospects, not only to acquire top content and networks, but also to enhance our platform with production, sales, and technology acquisitions that strengthen our offerings for hosts, advertisers, and shareholders.

Speaker Change: I guess one's talent roster continues to expand supported by a debt free balance sheet and multiple accretive growth opportunities. We are actively evaluating M&A prospects not only to acquire top content and networks, but also to enhance our platform with production sales and technology.

Speaker Change: Actions that strengthen our offerings for host advertisers and shareholders podcast one remains the only pure play publicly traded podcast company in the U S are consistently expanding and evolving content portfolio strategic partnerships diversification of revenue streams and our <unk>.

Kit Gray: PodcastOne remains the only pure-play, publicly-traded podcast company in the U.S. Our consistently expanding and evolving content portfolio, strategic partnerships, diversification of revenue streams, and our innovative approach to audience growth and retention continues to create long-term shareholder value.

Speaker Change: Innovative approach to audience growth and retention continues to create long term shareholder value. Thank.

Unknown Executive: Thank you for joining us, and at this time, I'd like to turn the call over to the operator for Q&A. Operator?

Speaker Change: Thank you for joining us and at this time I'd like to turn the call over to the operator for Q&A operator.

Steve Lehman: Before we do that, I'd like to give a few minutes to our Vice Chairman, Steve Lehman. He has a tremendous background in the audio space and running publicly traded companies. Some of you have spoken with Steve or heard from him on our last investor call. Steve is not only leading our M&A initiatives, but is now heading up our Web3 crypto initiative.

Speaker Change: Before we do that I'd like to.

Speaker Change: A few minutes, our vice chairman, Steve Layman. He has a tremendous background in the audio space and running publically traded companies. Some of your the spoken with Dave or heart from them on our last Investor call. It is now.

Speaker Change: Not only leading our M&A initiatives, but is now heading up our web three crypto initiatives.

Steve Lehman: I'll give it now over to Steve to give a couple comments on what he has coming up.

Speaker Change: I'll give it back over to Steve to give.

Speaker Change: Give a couple of comments on what he has come out.

Steve Lehman: Thanks, Kit.

Speaker Change: Thanks, Hi, everybody. So as Curt just mentioned I was brought into podcast one to look at strategic opportunities in M&A. We continue to head down that path and are looking at some interesting things for the company that role has now been expanded to look at St.

Steve Lehman: Hi, everybody. So as Kit just mentioned, I was brought into podcast. to look at strategic opportunities in M&A, we continue to head down that path and are looking at some interesting things for the company. That role has now been expanded to look at strategic opportunities in crypto and Web3. By way of background, I am on the board of Valkyrie Crypto ETFs owned by Coinbase. There is, I think, an incredible opportunity for consolidation in the crypto podcast space. There are hundreds of crypto podcasts and I think this creates a really interesting opportunity for PodcastOne to not only look at roll-up and consolidation, but to really form powerful strategic alignments.

Speaker Change: T G opportunities in crypto and web three.

Speaker Change: By way of background I am on the board of Valkyrie Crypto Etfs owned by Coinbase. There is I think an incredible opportunity.

Speaker Change: For consolidation in the crypto podcast space. There are hundreds of crypto podcasts that I think this creates a really interesting opportunity for podcast one to not only look at roll up in consolidation, but to really form a powerful strategic alignments.

Steve Lehman: an opportunity for PodcastOne to become a crypto megaphone in both audio and video and to become what I see as a credible source of crypto information. This could lead to expanded opportunities in showcasing new coins, new players in the industry, and other opportunities.

Speaker Change: So the opportunity for podcast one to become a crypto mega phone in both audio and video and to become what I see as Accretable stores of crypto information.

Speaker Change: This could lead to expanded opportunities in showcasing new claims new players in the industry and.

Speaker Change: And other opportunities.

Steve Lehman: So I think this crypto initiative, which I'm really excited about, uh, is very timely for PodcastOne and could create a powerful new vertical within the company.

Speaker Change: This crypto initiative, which I'm really excited about.

Speaker Change: Is very timely for podcast, one and could create a powerful new vertical within the company.

Kit Gray: Kit. Thank you, Steve. I really appreciate that exciting update.

Speaker Change: Kit.

Speaker Change: Thank you Steve I really appreciate that exciting update now I can hand, it over to the operator to initiate some questions.

Unknown Executive: Now I can hand it over to the operator to initiate some questions. Thank you. And we'll now begin the question and answer session. If you'd like to ask a question, simply press star followed by the number one on your telephone keypad.

Speaker Change: Thank you and we will now begin the question and answer session. If you'd like to ask a question simply press star followed by the number one on your telephone keypad. Our first question will come from the line of Sean Mcgowan with Roth Capital. Please go ahead.

Sean McGowan: Our first question will come from the line of Sean McGowan with Roth Capital. Please go ahead. Hey, Kit, how you doing? Thanks for the call. Hey. Hey, Sam.

Sean McGowan: Hey, good how are you doing answer the call.

Sean McGowan: Lisa a question couple of things I wanted to ask you about that you've talked about on previous calls and I. Just wanted to see if things are kind of in line with what you'd expected so stock based comp.

Sean McGowan: There are a couple of things I wanted to ask you about that you've talked about on previous calls. And I just want to see if things are kind of in line with what you'd expected. So Stock Based Comp, you know, fairly meaningfully, is this related to the initiatives that you have discussed in the past of making that a bigger component of, you know, compensation to the talent? And is this current level something we should expect? Or, you know, could it go up or down from here?

Speaker Change: Fairly meaningfully is this related to the initiatives that you have discussed in the past of making that a bigger component Doug.

Speaker Change: Compensation to the talent and <unk>.

Speaker Change: This current level, something we should expect or could it go up or down from here.

Kit Gray: Hey, Sean. Thanks for the question. Yes. The answer is that's definitely part of the reason why it's gone up. And yeah, it's a really exciting opportunity for our talent, something that's unique that other networks and other companies aren't able to offer. Part of the reason why we're on the NASDAQ and publicly traded. We're able to offer our partners in the content space, the ability to be, you know, part of the bigger picture, you know, being part of PodcastOne. So, we talk to hundreds and hundreds of podcasts and podcast networks and companies and stock is always a part of that conversation and will be moving forward.

John: Hey, John Thanks for the question yes.

Speaker Change: The answer is that that's definitely part of the reason why it's gone up and yeah, It's a really exciting opportunity for our talent something that's unique.

Speaker Change: That other networks and other companies aren't able to offer.

Speaker Change: Part of the reason why we're on the NASDAQ and publicly totaled.

Speaker Change: We're able to offer our partners in the content space the ability to be.

Speaker Change: Part of the bigger picture and of being part of podcast one so weeds.

Speaker Change: We talk to hundreds and hundreds of podcast and podcast network's in companies.

Speaker Change: Stock is always a part of that conversation and we'll be moving for it but it's worked out quite nicely for us.

Sean McGowan: But it's worked out quite nicely for our initiative and talent acquisition so far. And I think everybody's pretty happy with it and will continue to do more of it. Okay, thanks.

Speaker Change: Our our initiative.

Speaker Change: Talent acquisition, so far and I think everybody is pretty happy with it and we'll continue to do more of it.

Speaker Change: Okay. Thanks for that kind of a follow up maybe Brian can chime in on this that it looks like the increase in stock based comp was bigger.

Ryan Carhart: Kind of a follow up, maybe Ryan can chime in on this said, looks like the increase in stock based comp was bigger in dollars than the increase in GNA.

Speaker Change: The increase in G&A. So was there a reduction in the non stock based comp G&A and what's going on there and what can we expect in the future.

Ryan Carhart: So was there a reduction in the kind of non stock based comp GNA and what's going on there? And what can we expect in the future? Yeah, thanks for the question. The stock comp was up, you know, I think you nailed it. GNA was, was up as well. I think going forward, you know, what you saw here at the end of this year is kind of what you can expect going forward. We're always looking for efficiencies, and we're going to continue to do that. But yeah, on a run rate, you know, the off X that we saw coming out of Q4 is going to get reduced a bit in Q1.

Speaker Change: Yeah.

Speaker Change: Yes, thanks for the question.

Speaker Change: The stock comp was up.

Speaker Change: You nailed it G&A was was up as well I think going forward. What you saw here at the end of this year is kind of what you can expect going forward. We're always looking for efficiencies and we're going to continue to do that but yes on a run rate. The opex that we saw coming out of Q4 is going to get reduced a bit.

Speaker Change: Q1.

Sean McGowan: And then the stock comp will stay where it's at. Okay. All right. Very helpful. Thanks.

Speaker Change: The stock comp will stay where it's at.

Speaker Change: Okay, Alright, that's very helpful. Thanks.

Kit Gray: Back to you, Kit.

Speaker Change: Dr <unk>.

Kit Gray: Regarding the ART-19 deal, have you gotten the benefits so far that you expected? Or is there a lot more to come? And how's that whole thing going? Yeah, it's been great so far. There's a ton of operational efficiencies that we've talked about and cost savings with that deal. And as we implement some of the other more efficient, better services to replace what we had in the back set up with our previous partners is being implemented as we speak. So there'll be some great cost savings throughout the year moving forward. As far as revenue generation, it's been tremendous.

Speaker Change: Regarding the.

Speaker Change: 19 deal have you.

Speaker Change: Have you gotten the benefits so far what you expected or is there a lot more to come and you know how does that whole thing going.

Speaker Change: Yes. It is.

Speaker Change: Great. So far theres, a ton of operational efficiencies that we've talked about in cost savings with that deal and as we implement.

Speaker Change: Some of the other.

Speaker Change: More efficient better services to replace what we had in the back.

Speaker Change: Set up with our previous partner.

Speaker Change: <unk> is being implemented as we speak so there'll be some great cost savings throughout the year moving forward.

Speaker Change: As far as revenue generation, it's been tremendous.

Kit Gray: I mentioned in my explanation, we hit the NG in April, which is really exciting. May, I know we definitely hit it there too. We're right on the cusp of the next level. And I think I've explained that this is a tiered deal. So as we grow, that deal grows, right? So we're seeing more demand on our inventory. And as our inventory grows, we're seeing, you know, great fill rates, higher CPMs. You know, when you look at, you know, our other programmatic revenue, which is really the third tier, right? So it goes our sales group, direct sales team that you know all about, and then part 19, Amazon's platform and how they monetize their inventory.

Speaker Change: Mentioned in the <unk>.

Speaker Change: Hi.

Speaker Change: Last financing we hit the <unk> in April which is really exciting.

Speaker Change: Ne.

Speaker Change: I know we are we definitely hit it there too.

Speaker Change: Right on the cusp of the next level.

Speaker Change: I think I've explained that this is a third deal so as we grow that deal growth right. So we're seeing more demand on our inventory and as our inventory grows.

Speaker Change: We're seeing you know.

Speaker Change: Fill rates higher CPM.

Speaker Change: You know when you look at.

Speaker Change: Our other programmatic revenue, which is really the third here right. So because our sales group direct sales team.

Speaker Change: All about and then our 19 Amazon's platform and how they.

Speaker Change: Monetize their inventory and then.

Kit Gray: And then the programmatic that we are tied to and continue to expand upon, you'll see that going lower. And that's by design, because the other two are picking up. So yeah, it's been great so far. And we're really excited about it moving forward.

Speaker Change: Programmatic desks, yet we are tied to and continue to expand upon you will see that going lower.

Speaker Change: And that's by design because the other two are picking up so.

Speaker Change: Yes, it's been great. So far and we're really really excited about it moving forward.

Unknown Executive: Thank you.

Speaker Change: Thank you.

Sean McGowan: Last question, and then I'll jump back in the queue. So cost of sales as a percentage of revenue was down, I think we've talked about this, maybe the last quarter being unusually high, and, and we would expect to see a drop down. So I was wondering if this just was what you expected? And should this level of, you know, around 89 90%? Is that what we should expect going forward? Or could there be further reduction?

Speaker Change: Last question, and then I'll jump back in queue.

Speaker Change: So cost of sales as a percentage of revenue was down I think we've talked about this maybe the last quarter being unusually high and we would expect to see a dropdown. So I was wondering if this was what you expected and should this level of around 80, 990% is that what we should expect going forward or could there be further <unk>.

Speaker Change: <unk>.

Ryan Carhart: Yeah, thanks, Sean. I mean, I think you saw Q4 improve, right? And I think you'll continue to see that improvement. So at a minimum, it will hold steady and we hope and we think that it will jump up from there. So yes, we expect it to continue and hopefully even get better. When you say jump up, you mean gross margin, like, you know, drop as a percentage of revenue, the COGS? Yeah, basically, our contribution margin should be improving going forward. And it should be similar or better to what was in Q4. Okay, thank you.

Speaker Change: Yes, Thanks, Shaun I mean, I think you saw Q4 improve right and I think youll continue to see that improvement so at a minimum it will hold steady and we hope and we.

Speaker Change: Think that it will jump up from there.

Speaker Change: Yes.

Speaker Change: We expect it to continue and hopefully you can get better.

Speaker Change: When you say jump up you mean gross margin.

Speaker Change: Drop as a percentage of revenue the Cogs.

Speaker Change: Yes, basically our contribution margins should be improving going forward and it should be similar or better to what was in Q4.

Speaker Change: Okay. Thank you I'll jump back in thank you.

Sean McGowan: I'll jump back in.

Leo Carpio: Our next question comes from the line of Leo Carpio with Joseph Gunner. Please go ahead. Good morning, gentlemen, a couple of questions. First question is regarding the advertising environment. Given the uncertainty we're having the economy, have you seen any shift in terms of advertisers appetite for putting ads on your network? No, you know, we're having a good quarter. We are seeing, you know, higher CPMs, more advertisers jumping into the space, doing different things beyond just what we talked about, right? The revenue channels have diversified. So it's not just the ad spots and you're seeing, you know, higher growth on the programmatic side, the DAI side, the embedded side, live shows, social media, expansion into the campaigns, live events.

Speaker Change: Our next question comes from the line of Leo Carpio with Joseph Gunnar. Please go ahead.

Leo Carpio: Good morning, gentlemen, a couple of questions first question is regarding the advertising environment.

Speaker Change: Given the uncertainty we're having the economy have you seen any shift in terms of advertisers or appetite for putting ads on your network.

Speaker Change: No you know, where we're having a good quarter.

Speaker Change: Our thing you know a higher CPM.

Speaker Change: More advertisers jumping into the space.

Speaker Change: Doing different things beyond just what we talked about right.

Speaker Change: The revenue channels have diversified so it's not just the add stops.

Speaker Change: We're seeing higher growth on the programmatic side.

Speaker Change: On the AI side, the embedded side lives.

Speaker Change: Social media.

Speaker Change: Expansion into the campaign.

Kit Gray: So the side of our business is pretty good in the advertising world. That being said, the competition is tough. You know, you've got a lot of these big players like iHeart and Spotify that package in, you know, radio stations and music streaming and they try to take market share on, you know, the advertising dollars out there. That's just the nature of the business. That being said, we do a heck of a job, you know, managing and working with our talent. Our talent is engaged. They are excited about doing great things for our advertisers, understanding, you know, that the competition's out there.

Speaker Change: <unk>.

Speaker Change: So the side of our business is.

Speaker Change: It's pretty good in the advertising world that being said the competition is tough.

Speaker Change: He has got a lot of these big players like eye heart and Spotify that packaging, you know radio stations in music streaming and and they tried to take market share on.

Speaker Change: On the advertising dollars out there that's just the nature of the business.

Speaker Change: That being said, we we do a heck of a job.

Speaker Change: You know managing and working with our talent. Our talent is engaged they are excited about doing great things for our advertisers understanding you know that the competition is out there. So we've got to do you know great audio ads, we've gotta do great video ads now and pick up their game. So we're able being the size of the company.

Kit Gray: So we've got to do, you know, great audio ads. We've got to do great video ads now and, you know, pick up our game.

Leo Carpio: So we're able, being the size of the company that we are, we're able to kind of move and strategically position ourselves with advertisers to be not only a great network of great content, but actually people that they can trust to do a great job for them and their advertisers. Everything seems pretty good. Good to hear from you, Leo, by the way. Likewise.

Speaker Change: That we are we're able to kind of move and strategically position ourselves with advertisers to be.

Speaker Change: Not only a great network of great content, but actually people that they can trust to do a great job for them and their advertisers.

Speaker Change: Everything seems pretty good good to hear from you they are by the way.

Leo Carpio: So the follow-up question is regarding talent acquisition.

Speaker Change: Likewise, so a follow up question is regarding talent acquisition.

Leo Carpio: What is the environment you see here? Is there still good talent that's available? And can you negotiate favorable terms?

Speaker Change: What is the environment you see or is there still good talent, that's available and can negotiate favorable terms or.

Kit Gray: Or to try to get a sense in terms of how fast we can continue growing the shows on a platform? Yeah, like we said, I think we added 10 shows. We've got a funnel of a lot of really exciting ones that, you know, should be announced within the next week. To be honest, the talent pool is out there. You know, there's there's a lot of great shows out there that may not be getting the services that they want or need. We have a great reputation out there for, you know, those partners working with them to monetize their content, not only to, you know, add to what they're doing, but but, you know, get higher CPMs, higher demand on their impressions, monetize their backlog, market their shows and help them grow.

Speaker Change: Trying to get a sense in terms of how fast we can continue growing the shows on our platform.

Speaker Change: Yeah.

Speaker Change: Like we said I think we added 10 shows we've got a funnel of a lot of really exciting ones that should be announced within the next week to be honest.

Speaker Change: The talent.

Speaker Change: Pool is out there.

Speaker Change: A lot of great shows out there that may not be getting the services that they want or need we have a great reputation out there for you know servicing.

Speaker Change: Servicing those partners working with them to monetize their content not only to add to what theyre doing but but yet higher CPM higher demand on their impressions monetize the backlog.

Speaker Change: Market, there says and help them grow so.

Kit Gray: So we're in a good spot to just require, you know, more and more shows and grow.

Speaker Change: We're in a good thoughtful will require more and more shows and grow its.

Kit Gray: It's interesting, you know, that the time never stops. Right. And a lot of the shows maybe that we lost a year ago for whatever reason, they're starting to come around now. So we're, you know, seeing the strengths and the weaknesses of other networks and we're able to tell our story. And, you know, I'm hopeful that we can land some of those shows as well. You know, the great thing is our current partners are adding to it. Right. And we talk about A&E and now their history channel and adding more shows there and the Killer Network with Kayla Lowry adding more shows under their network.

Speaker Change: It's interesting.

Speaker Change: At the time never stops right on.

Speaker Change: A lot of as far as maybe that we lost a year ago for whatever reason, they're starting to come around now as they were.

Speaker Change: We're seeing.

Speaker Change: King.

Speaker Change: And the weaknesses of other networks and and we're able to tell our story.

Speaker Change: I'm hopeful that we can land some of those shows as well the great thing is our client partners are adding to it right and we talk about any and now.

Speaker Change: Now, they're they're history sat on adding more shows there and the killer network with <unk>, adding more says under their network.

Kit Gray: So the people that we are working with are continuing to grow and evolve. And that's helpful as well.

Speaker Change: The people that we are working with are continuing to grow and evolve and that's helpful as well.

Ryan Carhart: Okay, and then another question on the Amazon deal you have, could you remind us what are the terms and what's required, what do you need to fulfill to reach the minimum threshold? Oh sure, so basically how it works is they are giving us a minimum guarantee on a monthly basis that is basically just adjusted on the impressions that we're able to give them to So we track it throughout the month almost on a daily basis just to see if we're hitting that goal. Right now, the first threshold, if I remember correctly, is 90 million impressions.

Speaker Change: Okay and then another question on the Amazon deal you have.

Speaker Change: Could you remind us what are the terms and what's the right what do you need to.

Speaker Change: Fulfill to reach the minimum thresholds.

Speaker Change: Oh sure.

Speaker Change: Basically how it works is they they are giving at the minimum guarantee on a monthly basis.

Speaker Change: That is basically just adjusted on the impressions that we're able to give them to sell so.

Speaker Change: We track it throughout the months are almost on a daily basis, just to see if we're hitting that goal.

Speaker Change: Right now the first threshold of if I remember correctly is 90 million impressions.

Speaker Change: The next.

Ryan Carhart: The next threshold up would be 110 million impressions, so we are very, very close to that. I'm hopeful that even the June month that we'll get there. I believe in the contract says over three months. I think we got to keep it at that level, that next threshold for three months and then we'll get a higher minimum guarantee. That being said, they have more inventory to sell and monetize and as their demand goes up and Amazon continues to package podcasting with all their other advertising opportunities to their clients, we're seeing higher CPMs, higher sell-out rates, so everything seems really good on that front.

Speaker Change: Threshold up would be 110 million impressions. So we are very very close to that I'm hopeful that.

Speaker Change: Even the June month that we'll get there.

Speaker Change: <unk>.

Speaker Change: I believe in the contract says over three months I think we got to keep it at that level that next threshold for three months and then we will get a higher minimum guarantee.

Speaker Change: That being said they have more inventory to sell and monetize and as their demand goes up and and Amazon continue to package podcast thing with all their other advertising opportunities to their clients.

Speaker Change: We're seeing higher CPM as higher sellout red so everything seems really good on that front.

Ryan Carhart: I believe it was a three-year deal, but we're really happy with Andy and team over at the R-19 side of things and they're a fantastic group of people. I believe our shows are enjoying the experience as well. It was really a seamless transition on the production side. There's a lot of great information that we're able to provide to our shows on their audience and where they're at and fill rates. Our management team and our tech team here has done a really good job identifying new companies that we're working with. We mentioned Podroll, but there's other companies now looking at ways to even become more efficient and better in terms of optimizing our inventory.

Speaker Change: I believe it was a three year deal but.

Speaker Change: We're really happy with Andy and team have led the art 19 side of things and then they're fantastic group of people I believe our shows are enjoying the experience as well it was really seamless.

Speaker Change: Transition on the production side, but theres a lot of great information that we're able to provide to our shows on their audience and where they're at in <unk>.

Speaker Change: <unk> and our management team and our tech team here has done a really good job identifying new companies that we're working with I believe we mentioned pod role, but there is other companies now looking at ways to even become more efficient and better in terms of optimizing our inventory. So we're starting to work with us.

Kit Gray: We're starting to work with some of those and that should be great for us and the whole Okay, and then the last question, can you walk us through the terms of the rationale for entering into the crypto and creating a network of aiming for that market? Yeah, um, you know, I was actually talking to Steve this morning about this when and we're starting to do a bunch of calls with some really exciting people in the crypto space. And, you know, they leverage social media, blogs, podcasts, YouTube channels, they're doing live shows now, virtual shows, and really everything that we do, right.

Speaker Change: Some of those and.

Speaker Change: That would be great for us and the whole picture.

Speaker Change: Okay and then the last question can you.

Speaker Change: Walk us through some of the rationale for entering into the crypto and creating a network of aiming for that market.

Speaker Change: Yeah.

Speaker Change: You know I was also talking to Steve. This morning about this win and we're starting to do.

Speaker Change: A bunch of calls with some really exciting people enter the space and you know they leverage social media blogs podcast Youtube channels, they're doing.

Speaker Change: Live shows now virtual shows and really everything that we do right. So we do that for our partners and what we love about it and when you get on the call with these guys and you talk to them about it is their passion for the crypto space and when you think about communities and passion and.

Kit Gray: So we do that for our partners. And what we love about it, and when you get on the call with these guys, and you talk to them about it is their passion for the crypto space. And when you think about communities and passion and connection to hosts, I mean, that's really podcasting. So whether it's, you know, listening to a crime show or a Beverly Hills Household, you know, reality star, that fan base is just the same, they're connected at that same level, they're very passionate about it. So when we look at the crypto space, it's an exciting one, because you're high qualitative, very connected, very passionate, loyal fan base.

Speaker Change: Connection to host I mean, that's really podcast thing so whether it's you know listen into crime show or Beverly Hills Beverly Hills household.

Speaker Change: You know reality star.

Speaker Change: That fan base is this the same they're connected at that same level, they're very passionate about it. So when we look at the crypto space. It is an exciting one because you're high qualitative very connected very passionate loyal fan base and if we can package a bunch of those.

Kit Gray: And if we can package a bunch of those together, cross promote, do some of the things that, you know, I just talked about in terms of offering other revenue channels, and services for them, where they can even create more content. I think we're in a really exciting spot to not only create a really cool podcast, podcast network that drives revenue and value, but also, you know, offers just a great place for people to come to discover that content as they dive into the ever growing crypto. Yeah, this is a really passionate group. And I think it opens podcast one up to a new slate of advertisers, for example, you know, Bitcoin miners are advertising on crypto podcasts.

Speaker Change: Gather broth to low.

Speaker Change: Do some of the things that.

Speaker Change: <unk> talked about in terms of offering other revenue channels.

Speaker Change: In services for them, where they can even say more content.

Speaker Change: I think we're in a really exciting spot to not only create a really cold podcast broadcast network that drives revenue and value but also.

Speaker Change: These offers just a great place for people to come to discover.

Speaker Change: That part of his day job into the ever growing for business.

Don Bailey: Yeah. This is Don Bailey.

Speaker Change: Group.

Speaker Change: And I think it opens podcast one up to a new slate of advertisers for example, bitcoin miners are advertising on crypto podcast.

Kit Gray: You know, so this is an opportunity to not only expand into the content of a new vertical, but also opens this up to a slate of new avenues.

Speaker Change: So this is an opportunity to not only expand into the content of a new vertical but also opens us up to a slate of new advertisers.

Unknown Executive: All right, well, thank you.

Speaker Change: Alright, well thank you.

Sean McGowan: Our next question is a follow up from the line of Sean McGowan with Roth Capital. Please go ahead. I can't you touched on some of my questions already. But one sort of overarching question I have is that you grew 20% year over year in this quarter. You know, and you're and you're number 10. That's great. But I can see industry going faster than the industry picking up share in measurable ways. And, you know, should we expect that growth to accelerate? Yeah, you know, I think there's two levels of it. We want to grow and acquire new exciting content producers and new exciting communities.

Speaker Change: Our next question is a follow up from the line of Sean Mcgowan with Roth Capital. Please go ahead.

Speaker Change: You touched on some of my questions already.

Sean McGowan: One sort of overarching question I have is that you grew 20% year over year and was quarter.

Sean McGowan: And your number 10, thats, great, but I think the industry is growing faster than the industry are you picking up share in measurable ways and should we expect that growth to accelerate.

Sean McGowan: Yeah, you know I.

Sean McGowan: I think there's two levels of that.

Sean McGowan: We want to grow and acquire new exciting content producers and new exciting communities, but we also want to make sure that we're really.

Kit Gray: But we also want to make sure that we're really, you know, taking maximizing our opportunities with our current inventory and our current partnerships, right. So, you know, to become profitable and do what we need to do as a we need to make sure that the producers of the content and all the content that they have are getting those premium CPMs, those high sellout rates, those diversified revenue, revenue. So, it's really two things, right. We want to make sure we're doing that for our current partners and growing there. But as we acquire new shows, new content providers, that we, you know, put them in the right spot for them to be successful, where they can have higher CPMs, higher sellout rates, we can make them more efficient to do more content for us and grow.

Sean McGowan: Taking maximizing our opportunities with our current inventory and our foreign partnerships right. So you know to become profitable and do what we need to do as a company we need to make sure that the producers of the content and all the content that they have are getting those premium CPM.

Sean McGowan: Hi, sellout rates, there's different diversified revenue revenue. So it's really two things right. We want to make sure we're doing that for our current partners and growing there, but as we acquire new shows new content providers.

Sean McGowan: We are.

Sean McGowan: You know put them in the right spot for them to be successful where they can have our CPM is higher sell out rates, we can make them more efficient to do more content for us and grow because that's really important when we look at the margins on our deals and minimum guarantees and Rob splits and all of that so we look at it two ways.

Kit Gray: Because that's really important when we look at the margins on our deals and minimum guarantees and rev splits and all that. So, we look at it two ways. When you can, you know, you compare us to the industry, you know, look, there are companies out there, our competitors that don't care about, you know, losing money and throwing money at some big shows. We're not that company. We've talked about that in the past. We do a calculated look at, you know, what the demand is out there in the marketplace, where the CPMs are, where we can get good margins, how we can make the shows better, how they fit into our network, how they work with advertisers, all of these things before we just sign a bunch of shows, right?

Sean McGowan: When you can you compare it to the to the industry. You know look there there are there companies out there or competitors that don't care about you know, losing money and throwing money at some big says we're not that company, we've talked about that in the past we do have calculated a look.

Sean McGowan: You know what the demand is out there in the marketplace, where the CPM bar, where we can get good margins. How we can make this says that or how they fit into our network. How they work with advertisers all of these things before we just to sign a bunch of sellers right.

Sean McGowan: That would be a mistake. That would let down some of those shows, might even let down some of our current shows, and that's not the business that we're in. So, we are growing, as you know, but, you know, it's really important for us to grow on a revenue Great. Thanks. Great answer.

Sean McGowan: That would be a mistake that would let down some of those shows might even let down some of their client chairs and that's not the business ever and so we are growing as you know, but you know it's really important for us to grow on a revenue basis as well.

Sean McGowan: Great. Thanks, Great answer thank you.

Sean McGowan: Yeah.

Unknown Executive: And that will conclude our question and answer session.

Speaker Change: And that will conclude our question and answer session I'll hand, the call back over to Curt for any closing comments.

Kit Gray: I'll hand the call back over to Kit for any closing comments. Well, I appreciate everybody. I hope you guys all have a fantastic Fourth of July weekend with your families and be safe and keep listening to those podcasts as you sit in traffic around the country. And, you know, we're really excited about the future. You know, I think the team is just fantastic. We're in a great position.

Speaker Change: Well I appreciate everybody I hope you guys all have a fantastic fourth of July weekend with their families and be safe and particularly if any of those podcasts as you sit in traffic around the country and.

Sean McGowan: We're really excited about the future.

Sean McGowan: You know I think the team is just fantastic we're in a great position.

Sean McGowan: We appreciate your support and stay tuned youre going to hear some great things.

Unknown Executive: https://podcastone.com Take care.

Sean McGowan: Take care.

Unknown Executive: This will conclude today's call. Thank you all for joining. You may now disconnect.

Sean McGowan: This will conclude today's call. Thank you all for joining you may now disconnect.

Sean McGowan: [music].

Unknown Executive: Thanks for watching!