PodcastOne (PODC) Q1 FY27 earnings call: the analyst Q&A

How much of PodcastOne's content is produced in video format, which major talents are available in video, and what has been the reception through distribution partners?

Video is a significant part of the strategy, crucial for discovery, especially on YouTube, which generates AdSense revenue. Major talents like Adam Carolla and Some More News have large YouTube audiences. Stassi Schroeder's show on Hulu and Netflix highlights cross-platform expansion. Video allows for higher CPMs and host-read commercials with visual product integration. Short clips on social media are used for promotion.

“Yes, video is a huge part of what we're doing. Not only at PodcastOne, but in the medium, it's widely accepted. It's huge for discovery, leading with YouTube. Their YouTube AdSense revenue generation model has helped us out quite a bit for some of our shows specifically.”

asked by Barry Sine · answered by Kit Gray

What does the #6 Podtrac ranking mean for the sales team and programmatic advertising, and how has advertiser willingness to use podcasts changed?

The #6 Podtrac ranking (remaining #6 after July) opens doors for the sales team, allowing them to highlight being larger than competitors like Disney or Barstool. Major brands are increasingly realizing the benefit of podcasting for attribution and integrated creative campaigns. Programmatic advertising, especially through the Amazon ART19 deal, benefits from increased impressions due to network consumption. Brands are buying into communities, not just host-read spots.

“Yes, I mean, I'll answer the last part first. Yes, you're seeing brands, you know, when I say brands, it's not just use-the-code type brands, you're seeing the Progressives, the State Farms, the O'Reillys, the Lowes. Those type of companies are jumping into the podcasting space, Macy's as well.”

asked by Barry Sine · answered by Kit Gray

When did PodcastOne podcasts start appearing on Netflix, what is the revenue model, and when will investors see the benefit on the income statement?

Netflix got into podcasting about 6 months ago, with Stassi Schroeder's podcast being the lead. The primary benefit is discovery, and commercials are run within the podcasts on Netflix. This allows for premium rates and show growth. The company is in talks to add more shows to Netflix after an initial phased rollout. Revenue benefits are already being seen through premium rates for shows like Stassi's.

“Yes, so Netflix got into podcasting, I don't know, maybe 6 months ago, maybe a little bit longer. If I had to guess, Stassi is our lead pony in that world.”

asked by Barry Sine · answered by Kit Gray

What are PodcastOne's demographics, and what are the plans for adding more podcasts to Netflix?

PodcastOne aims for demographic agnosticism, with most consumption from female 25-44 (true crime, Stassi) and male 25-54 (Adam Carolla, Jordan Harbinger). They are in talks with Netflix to add more shows, following an initial phased rollout, and will monitor progress over the next 6 months. Billy Corgan's show was highlighted as a potential candidate.

“Yes, we're in talks on that. They wanted to roll out with kind of a phase. They've got a bunch on there, and we'll continue to talk to them about adding more. So we'll see how that goes over the next 6 months.”

asked by Barry Sine · answered by Kit Gray

Are there still M&A opportunities available, or is the focus more on organic growth, IP creation, and talent development?

PodcastOne is pursuing both M&A and organic growth strategies simultaneously. They are actively acquiring existing shows, launching original IP, and developing talent. M&A opportunities are abundant, with ongoing discussions for potential deals involving representing podcasts, expanding paywall models, or technology. The industry is expected to see significant acquisition activity in the next 6-12 months.

“To answer your question, we're doing it all, right? The main part of the business is either acquiring existing shows with an audience, growing them, monetizing them, doing more with them. That's a big part of what we do.”

asked by Leo Carpio · answered by Kit Gray

Can you remind us about the seasonality of PodcastOne's revenue?

Summertime is typically a slower period for podcast consumption and revenue as people are on vacation. Revenue picks up as school resumes and people return to work. The calendar year Q4 is consistently the strongest quarter for the company.

“Summertime, usually a little bit slower because people are on the beach, people are enjoying families and stuff like that. But as school gets back into gear and people get back to work over the next 30 days, you're going to start to see more consumption of podcasts. As calendar year Q4 rolls up, that's always our biggest quarter.”

asked by Leo Carpio · answered by Kit Gray