PodcastOne, Inc.

you for standing by. Welcome to the Podcast One Fiscal Third Quarter 2025 Business Update and Financial Results Conference Call and Webcast. During today's presentation, all parties will be in listen-only mode. Following the presentation, the conference will be open for questions. On our call today is Kit Gray, President and Founder of Podcast One, and myself, Aaron Sullivan, 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. Please refer to Podcast One's filings 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 Podcast One's Form 10-K for the year ended March 31, 2024, filed by the company with the SEC on July 1, 2024, 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. 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 day of this call, February 12, 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. I'd like to highlight to investors that this call is being recorded. Podcast One is making it available to investors and the media via webcast, and a replay will be available on Podcast One'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. Now, I would like to turn the call over to Podcast One's president, Kit Gray.

Thank you and welcome to our fiscal third quarter 2025 earnings call. As a reminder, we are not on a calendar reporting year and our fiscal year 2025 ends on March 31. Today, we will provide a brief overview of Podcast One and the continuously growing podcast market and highlight our most recent successes before passing on to Aaron for the financial results. After his comments, I will close with an update on our strategic initiatives, including a recent partnership with R19, Amazon's podcast hosting service, and what we are looking forward to in the quarter to come. Lastly, we will open it up for Q&A. Podcast One is a premier podcasting network that has played a key role in the evolution of the podcast 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, sales, and distribution. 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. Podcast One is a sales network of over 500 of the largest advertisers to reach core demographics effectively and efficiently. Podcast One and its 196 shows are positioned at the center of its growth, capitalizing on both the increasing audience demand and the effectiveness of podcast advertising as a high ROI media channel. Podcast One has been ranked as a top 10 U.S. podcast publisher for the second consecutive month by PodTracks with monthly unique U.S. audiences of 5.2 million and 16.2 million U.S. downloads and streams. Podcasting continues to be a cultural relevant medium shaping conversations around major events. Previously, we saw its impact during U.S. elections, and more recently, it played a role in covering the recent California wildfires. As an L.A.-based company, we witnessed the devastation firsthand. Members of our own team saw their communities destroyed and lives upended in a matter of moments. While much of the country watched the tragedy unfold on television, others turned to podcasting for unfiltered perspectives. Podcast One host Adam Carolla was among those directly impacted. Displaced from his home, he turned to his podcast to share his experience in almost real time. Broadcasting from my hotel room, he recounted the timeline of events leading to his evacuation, the uncertainty surrounding the status of his condo, and the mixed reports he received. Despite the circumstances, Carolla used his platform to provide a raw and personal firsthand account of the disaster while blending his sharp, observational, and often sarcastic style of storytelling and social commentary into the situation. With millions of impressions, this moment reinforced podcasting's unique ability to inform, engage, and mobilize audiences in real time, turning personal stories into powerful conversations that drive awareness, empathy, and action. 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 longstanding relationships with advertisers and brands seeking to connect with the highly engaged audience of podcasts on our platform. As a result, during the quarter, we were thrilled to sign Stassi Schroeder to the Podcast One platform in a multi-year, seven-figure deal. Along with being a New York Times bestselling author and reality television personality, Stassi has a captivated podcast audience for over nine years, consistently ranking among the highest rated podcasts across platforms. The acquisition reinforces Podcast One's mission to champion female voices in the podcasting space. As part of this collaboration, Stassi will also be integrated into the Podcast One extensive promotional and marketing initiatives spanning multiple genres with plans to expand into live shows, merchandising, and adaptations. The majority of our revenue continues to be generated via our direct sales team with advertisers who want access to the unique audiences that we can reach on our platform. In addition to our direct sales team and programmatic ads, the strategic partnership with Amazon's ART19 announced in January creates a third core revenue channel for the monetization of our library of shows. More on ART19 in a moment. To complement our core revenue channels, we also diversified our emerging revenue streams that provide additional avenues for high margin growth while diversifying our revenue mix and service offering to the entire Podcast One ecosystem. We officially launched Podcast One Pro in conjunction with our new state-of-the-art podcast production studio in Beverly Hills. We have seen great success from major brands such as Boost Mobile and Microsoft, who want to harness the power of podcasting and rely on our technology and talent to make it happen. Podcast One Pro offers customizable services with a la carte options to meet exact production needs or a full 360 solution. The new studio enables creators to seamlessly produce, record, and broadcast their shows with unmatched clarity and precision. Another way Podcast One and its talent generate additional revenue is through live shows. Stacey Schroeder was among the first to expand her podcast into a live event format in 2019, quickly selling out subsequent tours in 2020 and 2023. We look forward to supporting Stacey and our other hosts in exploring live show opportunities in 2025. Now, before going further, I'd like to turn the call over to Aaron, our CFO, to walk through the financial results for the financial third quarter. Aaron.

Thank you, Keith. As Kit mentioned at the beginning of the call, I want to remind listeners that our fiscal year ends on March 31st. Revenue in the fiscal third quarter of 2025 increased 22% to $12.7 million compared to $10.4 million in the same year-ago quarter. Operating loss in the fiscal third quarter of 2025 was $1.6 million compared to an operating loss of $2.6 million in the same year-ago quarter. This was primarily driven by lower non-cash stock compensation expense. Net loss in the fiscal third quarter of 2025 was $1.6 million or $0.06 a share per basic and diluted share compared to a net loss of $2.6 million or $0.11 per basic and diluted share in the same year-ago quarter. Adjusted EBITDA in the fiscal third quarter of 2025 was negative $0.07 million compared to adjusted EBITDA of negative $0.04 million in the same year-ago quarter. The change in adjusted EBITDA was primarily due to timing of content acquisition costs. We ended the fiscal third quarter with no debt on our balance sheet and $0.6 million of cash and cash equivalents as of December 31st, 2024. As we look ahead, I'd like to also briefly touch on guidance. We're pleased with the progress this quarter and given the revenue generating deals that are currently in place for fiscal Q4, Along with the equity-based revenue share deals with certain podcast talent also starting to be effective in fiscal Q4, we are comfortable reaffirming our fiscal 2025 guidance. We expect revenues for the full year to be at least $51 million, representing an increase of at least 17% when compared to revenues of $43.3 million in fiscal 2024. Given the continued strong double-digit revenue growth, we also project positive adjusted EBITDA for the full year of fiscal 2025. I'd like to turn the call back to Kit for some additional comments on the quarter before wrapping up with questions from the audience. Thanks, Aaron.