Q4: Profitability target achieved

Year-end Report January – December 2024

Fourth quarter 2024

• Net sales in the quarter amounted to SEK 577.5 m (494.2), which corresponds to net sales growth of 17% (9%). The growth was primarily driven by our North American segment where net sales grew by 33%.
• The organic net sales growth was 15% (7%).
• Gross margin for the quarter amounted to 40% (24%).
• EBITDA for the quarter was SEK 34.5 m (-59.2), resulting in an EBITDA margin of 6% (-12%). The development reflects that Acast achieves its profitability target of positive EBITDA in 2024.
• Adjusted EBITDA for the quarter was SEK 36.1 m (16.3), corresponding to an adjusted EBITDA-margin of 6% (3%).
• Operating profit amounted to SEK 15.6 m (-77.6).
• Financial items amounted to SEK 46.6 m (-35.3), mainly affected by unrealized exchange gains.
• Tax income for the period was SEK 64.4 m. Deferred tax of SEK 86.2 m has been recognized in the accounts for unutilized loss carry forwards attributable to losses in the parent company.
• The profit for the period amounted to SEK 126.5 m (-117.5).
• Cash flow from operating activities amounted to SEK 55.3 m (50.3).
• Earnings per share for the period before dilution amounted to SEK 0.70 (-0.65). Earnings per share for the period after dilution amounted to SEK 0.67 (-0.65).
• The number of listens was 1,064 million (1,162), a decrease of 8% compared to the same period last year. The decline is primarily due to the BBC leaving Acast’s network in the quarter.
• The Average Revenue Per Listen (ARPL) increased to SEK 0.54 (0.43), reflecting a yearly increase of 28%.

Full year 2024

• Net sales for the full year amounted to SEK 1,943.7 m (1,636.4), which corresponds to net sales growth of 19% (18%). The growth was primarily driven by our North American segment where net sales grew by 33%.
• The organic net sales growth was 18% (13%).
• Gross margin for the full year amounted to 39% (32%).
• EBITDA for the full year was SEK 24.3 m (-187.3), resulting in an EBITDA margin of 1% (-11%). 
• Adjusted EBITDA for the full year amounted to SEK 25.9 m (-111.7) and the adjusted EBITDA-margin was 1% (-7%).
• Operating loss amounted to SEK -57.5 m (-258.6).
• Financial items amounted to SEK 74.5 m (87.7), mainly affected by unrealized exchange gains and interest on bank balances. 
• Tax income for the period was SEK 61.3 m. Deferred tax of SEK 86.2 m has been recognized in the accounts for unutilized loss carry forwards attributable to losses in the parent company.
• The profit for the period amounted to SEK 78.2 m (-179.9).
• Cash flow from operating activities amounted to SEK 34.4 m (-28.1).
• Earnings per share for the period before dilution amounted to SEK 0.43 (-0.99). Earnings per share for the period after dilution amounted to SEK 0.42 (-0.99).
• The number of listens was 4,385 million (5,019), a decrease of 13% compared to the same period last year. The decline is primarily due to Apple’s iOS17 update that changed how podcast listens are measured.
• The Average Revenue Per Listen (ARPL) increased to SEK 0.44 (0.33), reflecting a yearly increase of 36%.

Business events in the fourth quarter of 2024

• TED Audio Collective taps Acast as ad sales, hosting, and distribution. This also includes rights to monetize video versions of the podcasts. The TED Audio Collective is home to 26 hit podcasts across business, tech, health and wellness, and a variety of other genres. Each year the network garners 176 million listens globally through popular titles such as TED Talks Daily, How to be a Better Human, TED Business and more. TED was fully onboarded with Acast in December 2024.
• Casefile partners with Acast to handle ad sales, hosting, and distribution of its podcasts, including rights to ad sales for video versions. Casefile True Crime is one of the world’s leading true crime podcasts and Australia’s most successful podcasting export. This partnership brings an additional 80 million annual listens to Acast’s network. Casefile went live with Acast at the beginning of February 2025. 
• Acast announced the acquisition of Wonder Media Network (WMN). Founded in 2018, 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.

Business events in the full year of 2024

• A new update to the AI-powered Predictive Demographics feature has provided advertisers with unparalleled precision in targeting. The enhancement allows for more accurate audience targeting within English language podcasts and positions Acast at the forefront of the evolving cookie-free advertising landscape.
• The first year of our AI-based solution Collections+ proved highly successful, enabling 24% more Acast creators to earn ad revenue. 
• Acast has solidified its leading position by continuing to attract prominent creators, including The Telegraph, TED Audio Collective, and Casefile.
• Acast has experienced increasing demand for omnichannel campaigns that span across podcasts, video, social media and more. This integrated approach expands creators’ reach, audience engagement, and their revenue potential. During the year, Acast secured new and renewed agreements with large omnichannel creators such as Squeezie, Have A Word, ShxtsNGigs, The Fellas Studios, and Kayla Itsines.
• Acast announced the acquisition of Wonder Media Network in December. The acquisition was completed on January 2, 2025.
• Acast achieves a positive EBITDA result for the full year 2024, a significant milestone in the company’s development. This achievement cements Acast’s transition to a profitable growth company.

Comments from the CEO: Profitability target achieved
Our consistent dedication to achieving profitability has yielded positive results, as we conclude the year with positive EBITDA and successfully deliver on our profitability goal for 2024. It is clear that our strategy is delivering results, reflected by our high growth in North America, strengthened position to meet the growing demand for effective omnichannel campaigns and ending the year as a profitable growth company.

North America remains a key driver of growth
The group’s sales growth in the fourth quarter was 17%, of which 15% was organic. North America continued to exhibit strong development and contributed the most to the group’s growth in the fourth quarter at 33%. European revenues grew by 12%, reflecting strong development in Continental Europe, while growth in the UK was affected by a more challenging market.

The number of listens experienced an 8% decrease compared to the same period last year, negatively affected by the BBC leaving Acast’s network in the quarter. iOS17 has had a minor adverse effect, and we are looking forward to leaving this effect behind us as we progress through the first half of 2025. Our heightened focus on increasing monetizable listens persists, and we were pleased to welcome iconic content from the likes of TED Audio Collective and Casefile as well as prominent video creators like Squeezie to our network in the fourth quarter. We will see the positive impact of these additions in the first quarter of 2025.

Delivering on full-year profitability target
The gross margin remained high at 40%, still positively affected by a favorable product mix. The adjusted EBITDA result amounted to SEK 36 m in the fourth quarter, reflecting a margin of 6%. This result indicates that we have successfully achieved our target of positive EBITDA for the full year 2024.

Capitalizing on increased demand for podcast advertising
The average revenue per listen (ARPL) increased by 28 percent to SEK 0.54 during the quarter, demonstrating our growing ability to capitalize on the continued rising demand for podcast advertising. We also continue to develop our offerings for creators, including the opening of our new London office, Acast Studios London. An entire floor is dedicated to supporting our creators through investment in state-of-the-art facilities, including four studios equipped for both audio and video production, which will be available to our extensive network of established UK creators. In partnership with Amazon Music, we launched one studio dedicated to providing new creators with the professional resources and equipment needed to start and grow their podcasts.

Expanding omnichannel capabilities
Fueled by the increasing demand for podcast advertising and our commitment to increasing value for our creators, we are expanding our capacity to deliver integrated campaigns across audio, video, social media, and more. A significant event during the quarter was our announcement of the acquisition of Wonder Media Network (WMN), which will expand our US operations through a team experienced in podcast production and innovative campaign delivery. WMN will join with Acast’s existing creative team to form Acast Creative Studios, providing advertisers with integrated campaigns and branded content solutions from ideation through to production and campaign delivery, to reach engaged audiences. We expect to benefit from opening up new revenue streams for Acast and our creators while also fostering deeper relationships with advertisers to bring bigger, bolder ideas to life.

This quarter, we executed one of our largest omnichannel campaigns to date in partnership with Google and leading UK podcast creators including Katherine Ryan, 90s Baby, Help! I Sexted My Boss and Rio Ferdinand. This integrated audio and video campaign demonstrates our capability to deliver high-impact, wide-reaching initiatives, and highlights the increasing demand for omnichannel campaigns, both from creators seeking to engage their audience across multiple channels and from advertisers seeking efficient reach. We believe that these campaigns will play a significant role in the evolving media landscape, and we are well positioned to capitalize on this opportunity.

Strategic execution delivers results
Notwithstanding varying market conditions, we have made significant strides this year. Notably, we have strengthened our position in the US as reflected by the 37% annual growth in 2024. Due to effective cost control and a measured approach to investment, we have improved profitability across all segments, which has enabled us to achieve a critical milestone in the company’s history. Alongside these achievements, we are exploring the possibility of a listing change onto the Nasdaq Stockholm main market. I am pleased to conclude the year as a profitable growth company, now even more strongly positioned and supported by a robust balance sheet.

Ross Adams
Chief Executive Officer

Report presentation
CEO Ross Adams and CFO Emily Villatte will present the report in a webcast today 12 February 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/q4-report-2024 

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