Audible, the spoken word digital audio company, reported its Q3 numbers, and its losses have increased. Net revenues for Q3 was $20.0 million, up 19% year over year and up 5% over Q2-06 consolidated net revenue. Apple iTunes revenues in Q3 was $4.7 million.
Net losses were $2.5 million, up from $187K losses in the year-ago quarter. Its subscription service users acquired during the quarter were 71,100, representing growth of 19% year over year. At the end of Q3-06, the total number of AudibleListener members was 345,200, representing growth of 54% year over year.
But trouble spots remains and the company acknowledged it: “Despite another quarter of positive cash flow, lower churn, full quarter profitability from the combined Audible UK and iTunes UK revenue only sixteen months after launch – and the signing of a pivotal new technology integration and content distribution agreement with Apple that extends through September of 2010 – we did not achieve the top line growth we expected…We continued to hold back on marketing during Q3 as our new marketing and merchandising teams tested multiple offer designs and merchandising techniques.” The company expects Q4 to be similarly affected, and 2007 as the growth year. More info in the earnings release here.
From the earnings call transcript: interesting this…it has converted its Audible Germany joint venture (where it got royalty fee) into an investment/equity stake into the Germany venture, and is now investing the royalty money back into the company…at least for the next 13 months.
Also, some good details in the call about the new Apple-Audible deal: “You may remember there was a 120-day unilateral out to Apple, which is no longer in the agreement…There are also some new revenue formulas that are based upon the selling price at iTunes.”
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