Acast AB: Q1: Strong growth

Interim report January - March 2025

First quarter 2025

• Net sales in the quarter amounted to SEK 535.4 m (412.9), which corresponds to net sales growth of 30% (25%). The growth was primarily driven by our North American region where net sales grew by 65%.
• Organic net sales growth was 26% (23%).
• EBITDA for the quarter was SEK -8.0m (-15.1), resulting in an EBITDA margin of -2% (-4%).
• Adjusted for transaction costs related to Wonder Media Network of SEK 0.6m and costs incurred for a future re-listing of SEK 4.1m, the adjusted EBITDA was SEK -3.3m (-15.1), reflecting an adjusted EBITDA margin of -1% (-4%).
• Operating loss amounted to SEK -30.9m (-34.8).
• The result for the period amounted to SEK -92.7m (5.2), negatively affected by financial items amounting to SEK -60.6m (41.4) mainly stemming from effects of unrealized currency exchange losses
• Earnings per share for the period before and after dilution amounted to SEK -0.51 (0.03).
• Cash flow from operating activities amounted to SEK 28.9m (-15.5).
• The number of listens was 1,109m (1,124), a decrease of 1% compared to the same period last year.
• The Average Revenue Per Listen (ARPL) increased to SEK 0.48 (0.37), reflecting an increase of 31%.

Other significant events

• Acast completed the acquisition of Wonder Media Network (WMN) on January 2, 2025. WMN is a creative studio based in NYC that produces audio, digital, video, experiential and social campaigns for clients including Nike, Pfizer, GE and Mercedes Benz.

Comments from the CEO: Strong growth
We saw a robust start to 2025 with 30% sales growth, driven by an impressive 65% sales increase in North America. Continuing our positive trend, the adjusted EBITDA margin increased by 3 percentage points compared to the previous year. The macroeconomic uncertainty did not impact our campaign deliveries this quarter. We are proactively monitoring the situation and maintain the agility to adjust investment levels to secure our commitment to profitable growth.

30% sales growth: North America the primary growth engine
The year started strongly with a growth of 30 percent for the group, of which 26 percent was organic. North America had a significant impact on the group's growth, achieving a sales increase of 65% compared to the same period last year. Europe also contributed positively with a 17% sales growth, while Other Markets experienced a slight decline of 1% versus the same period last year.

Monetization momentum continues and listens stabilize
Our positive momentum in monetization continued, evidenced by a sustained rise in average revenue per listen to SEK 0.48 in the first quarter, a 31% increase compared to last year. Despite a marginal 1% decrease in listens compared to last year, the outcome represents the highest listens in four quarters, alongside continued growth in unique listener reach. Our commitment to enriching our network with valuable content remains a key priority. Notably, in April, we announced an exclusive ad sales partnership with The Athletic, bringing more than 35 high-quality sports podcasts with over 100 million annual global listens to our network.

Navigating strategic initiatives amid macro uncertainty
The gross margin for the first quarter was 37%, influenced by the lower gross margin in our rapidly expanding North American segment. Our operating expenses increased by 19% year-over-year, primarily due to our efforts aimed at capturing ROI in strategically prioritized markets. Recognizing the ongoing macroeconomic uncertainty, we maintain a strong focus on cost management. We achieved further profitability improvements in Q1 with an adjusted EBITDA of SEK -3m, representing an adjusted EBITDA margin of -1% compared to -4% in the previous year.

Targeting strong, profitable growth
Ahead of our Capital Markets Day in early April we announced new financial targets that underscore our focus on profitable growth. These targets aim for a 15% organic net sales growth between 2025 and 2028, an adjusted EBITDA margin of 3-5% in full-year 2025, and positive cash flow from operating activities in full-year 2025. While acknowledging the uncertain macroeconomic environment, we have not experienced any impact on our campaign deliveries in the quarter. Having navigated economic downturns previously, we are confident in our ability to adapt our efforts and cost levels quickly and effectively if needed, to ensure profitable growth.

Ross Adams
Chief Executive Officer

Report presentation
CFO Emily Villatte will present the report in a webcast today 6 May at 10:00 CET. The presentation will be held in English and there will be the opportunity to ask questions during the presentation. Link to the presentation: https://acast.events.inderes.com/q1-report-2025/register

Link to the report
The Interim Report is attached to this press release and available on https://investors.acast.com/

For more information

Emily Villatte, CFO and Deputy CEO, Acast
Tel: [phone]
E-mail: [e-mail]

Ross Adams, CEO, Acast
E-mail: [e-mail]

Investor Relations:

Dennis Berggren
Tel: [phone]
E-mail: [e-mail]

About Acast

Since 2014, Acast has been creating the world's most valuable podcast marketplace, building the technology which connects podcast creators, advertisers and listeners. Its marketplace spans over 140,000 podcasts, 3,300 advertisers and one billion quarterly listens. Crucially, those listens are monetized wherever they happen - across any podcasting app or other listening platform.

The company operates worldwide and is headquartered in Stockholm, Sweden. Acast is listed on the Nasdaq First North Premier Growth Market (ACAST.ST). Certified Adviser is FNCA Sweden AB, info@FNCA. se.

This information is information that Acast is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2025-05-06 07:00 CEST.