Audioboom Group PLC (AIM:BOOM)’s shares soared this morning after it recorded a record volume of advertising impressions and reiterated its annual outlook.
Its London Stock Exchange-listed shares surged 21.5% by 10.00 am this morning to 182.25p.
The boost came after the podcast publisher, ranked the fourth-largest of its kind in the US by Edison Research, announced that it had recorded more than a billion ad impressions in October.
Last month, Audioboom generated the highest amount of revenue per month so far this year, creating 1.01 billion ad impressions for brands to buy through its host-endorsed adverts and automated advertising marketplace Showcase.
Stockbroker Cavendish Research has set a target price for the podcast producer that is nearly a whopping 10 times its share price on Wednesday, estimating that its shares would reflect fair value at 1,300p.
Michael Hill, an analyst at Cavendish, said: “The milestone was achieved through strategic implementation of the AdRip tool since launch in July 2021, which enables Audioboom to remove historic advertising following the initial 90-day first sales window, and insert an ad-break that can be dynamically served with a new ad targeted to the podcast and listener.
“Combined with growth in monthly downloads to a record 127m in Q3, the platform successfully created record monthly ad impressions, and as the platform continues to scale, we expect new records will be set in the coming months.”
Analysts were bullish on the company’s future ability to boost ad revenue further, forecasting that, since the company said it is on track to generate approximately US$19 million or more in revenue this quarter, it could generate up to 21% growth in 2024 even if it doesn’t put up its ad prices.
In a research note on Friday, Hill said that would reflect the efforts of management to win new podcasts and new inventory with existing podcasts, as well as expanded relationships with larger advertisers.
“Any improvement in the macro environment will then drive upside to our revenue forecasts, which will gear strongly to adjusted EBITDA and cash, as management are acutely focused on reducing minimum guarantees and optimising revenue shares for new and existing podcasts," he added.