Audioboom Group plc (BOOM) Earnings Call Transcript & Summary

Good afternoon, ladies and gentlemen, and welcome to the Audioboom Group plc investor presentation. [Operator Instructions] Before we begin, I would like to submit the following poll. And if you could give that your kind attention, I'm sure the company would be most grateful. And I'd now like to hand you over to CEO, Stuart Last. Afternoon, sir.

Thanks, Jake. Hi, everyone. It's good to be back with you. Lots of familiar names on the list today and some new names as well. So thank you for your support and for those of you new to the business, it's great to have you here. Hopefully, we can tell you a little bit more about Audioboom today and update you on everything we've been working hard on over the last quarter and also the last few years. We'll start things off as we usually do, just by looking at the company, the business model. We'll look at the various revenue lines in the business, how we operate, the part that we play in the podcast space. Then we'll drill down a little on to the results, the financial results, that we released this morning, go a little deeper on the operations of the business, a little deeper from Brad on the finances, and then we'll take a quick look forward before we get to answer some of your questions at the end. So as Jake said, get those questions in now, and we'll pick some of those as we go across the hour that we're with you. But let's get into it quickly, and the first thing for anyone that is new to the business, we will introduce ourselves to you. My name is Stuart Last. I'm the CEO of Audioboom. I've been the CEO now for the past 2.5 years, based here in New York City, which is where we drive 90% of the business out of the U.S. and have been working in and around podcasting now for the past probably 12 or 13 years at the BBC in London before I moved to a company called Voxnest in the U.S. and I've been with Audioboom in various capacities for the last 18 years, as I said, before stepping up to be CEO 2.5 years ago.

Thanks, Stuart. Hi, everyone. I'm Brad Clarke, CFO here at Audioboom. I've been here since March 2018. So it'd be 5 years in March next year. Chartered Accountant, qualified with Grant Thornton, worked with various media companies over the last 15 years or so, News UK for 5 years, Brave Bison and another [indiscernible] company for a couple of years before joining Audioboom. It's been a very rewarding role joining the company in 2018, obviously in a different position then, loss making, losing cash. So to see it now where it is now in terms of growth, that profitability, being cash generative is very pleasing to see. So we'll get into a bit more of that detail later on in the presentation. Back to you, Stuart.

Thanks, Brad. As I said, for those of you that are new to the company or those of you that may not have had an update recently, we'll take a look now at the business model and the operations of the company. So Audioboom powers podcasting. We sit in the middle of audience, creators and advertisers. We bring the 3 very important parts of the industry together through our platform, and we create value for all elements of the industry. So sitting at the heart, we work directly with creators, those content creators, those podcasters producing content. We distribute out to audience wherever that audience is, whether it's on Spotify or YouTube or Apple Podcast or Pandora and many, many other listening points, and then we connect the creators with advertisers, brands that want to advertise on podcasts and connect with and get that brand out to audiences. And Audioboom and the platform brings those 3 key elements together. Without us in the middle, there's very little value in the podcasting space because there is no way to connect those 3 elements together efficiently or any type of scale. So we really are the kind of the heartbeat of the podcasting space. And when I talk to you about what the platform looks like on the next slide, you'll see that this is, like I said, very efficient, very scalable and we're building it very successfully in this space. Now we build this model on, I think, 3 core beliefs. First off, the podcasting is a creator medium. So what I mean by that is that this is a medium that is very strong for independent creators, very authentic creators that have great engagement with their audiences. And we're seeing that first belief really coming through now. Over the last few years, big brands have stepped into podcasting, but many of them are now actually stepping away from podcasting because they don't have that authenticity, they don't connect with the audiences in the same way the independent creators are doing. We've recently seen companies like Spotify and CNN, laying off their production staff because they haven't got the traction that they wanted from their content creation arms. And therefore, Audioboom working directly with independent creators, we believe we're in the right place, and that's the future of podcasting. The second core belief that kind of pushes this model is that this is an advertising funded medium. And again, we believe that, that's coming through now. The take-up of subscription modeling has been very, very low. And podcasting has never had those same problems that something like cable TV in the U.S. has had. It's always been free at the point of listening. The content is very strong through an ad-supported model. So there really is very low need for a subscription model and has very much been a small take-up of subscription-based podcasting, and we don't see that as being something that will come through in the future. And then the third core belief is that this is a distributed media form. So we want our content and the content from our creators to be on every single listening app that's out there. So as I said before, whether it's Spotify, YouTube, Pandora, Apple Podcasts, Google Podcasts, iHeart Media, there are many, many other listening destinations. We make sure that, that content is everywhere a potential audience is. And again, this third of our core beliefs is also being proven out right now. We've seen recent studies that when podcasts have gone exclusive to one platform, they've lost anywhere up to 75% of their audience. So again, we believe getting that content out to the widest possible audience is in everyone's favor. And it's those 3 core beliefs that drive this model -- we power podcasting for creators, advertisers and audience. The Audioboom platform that sits at the heart of that model is very scalable, and it's been built over the past 7 or 8 years, and it really manages every part of the production and distribution process. So at the very heart of that platform, we have a content management system. This is where the podcasters will upload their audio, they will manage the publishing process when that content is launched and how it distributes out to each of those listening destinations with simply one click. Then we are able to gather analytics from each of those listening destinations and consolidate those into an analytics dashboard for our podcasters so that they can understand their audience, they can see all of their listening data and then our sales team can use that listening data to monetize that content very strongly. On top of that content management system, we've built out an advertising technology stack. So that's an ad server that fires in the advertising, it's a Yield Ops system that ensures that we get the very best pricing for each piece of that ad inventory in real time. We have something called AdRip, which creates additional inventory within that catalogs of content. And then just last year, we launched Showcase, which is our advertising marketplace and that advertising marketplace enables all of the inventory to be sucked into it and then for that to be monetized by -- through many different sources globally. So that's an advertising marketplace that sits with that advertising technology stack on top of our CMS. And then finally, we have a sales force-based system called LIRICAL. This is an inventory management system. It allows our team to execute the advertising. It automates the billing, its business and sales and intelligence. And again, adds to the level of automation that we have in the business, it keeps our head count very low, enables the entire distribution and monetization part of the platform to work very smoothly. And we're really seeing some true scale coming through this platform now. So we have more than 8,000 podcast channels using the platform for publishing and distribution and monetization. We're seeing more than 130 million in monthly downloads across the platform. And the content is listened to by more than 34 million unique listeners every month. So that platform, as I said, very efficient. It doesn't take a lot of investment for the number of channels and downloads and unique listeners to grow over time. This is -- this slide is really looking at our content and revenue model. So to break this down a little bit, the graph in the top half of this slide is really showing you how podcasting works. There's a few large podcasts at the very top end, which have a very large number of downloads. And then there's a very, very long tail of shows that have a much smaller number of downloads. And Audioboom and the platform at Audioboom is able to work with all of those podcasts. So at the very top end of the industry, we call it our premium network. That's the work we do with our biggest 200 shows, and they are driving a significant amount of the downloads to come through the platform. We don't have Audioboom Studios, which is our in-house production. There's a smaller number of shows, around 30 podcasts, but very much in the premium end of the podcast space. And then we have our creator network. That's our long tail. That's 8,000 podcasts, much smaller shows, but delivering some good volume across the entirety of that long tail. The way we then monetize is through 3 ad models. Our premium sales model. This is our in-house sales from our in-house teams in New York and London. They are selling directly to agencies and brands. They sell at a very high price point, and they're really selling those ads just on those top 200 podcasts in our premium network and then the Audioboom Studios shows as well. So these are bespoke podcast sales where the host delivers the ad in -- natively to the podcast. It's a heavy lift to sell and execute those ads. But they are a very premium price point upwards of $25 per 1,000 downloads. So that's the premium sales model that we have within the business. The secondary ad model that we have in the business is called Showcase and I mentioned on the previous slide, and that's an automated ad marketplace that's all delivered through advertising technology. And Showcase can monetize shows of any size. So it can monetize a show that has 1 million downloads per episode. It can equally monetize a show that has just 100 downloads per episode. We feed all of that content into Showcase and then we open that up to advertisers to target advertising against demographics and locations and in keywords within that content. Showcase, as you'll see later on in this presentation, is a fast-growing part of the business and a very successful part of the business, too. And then thirdly, we have Sonic, that's our team down in Austin, Texas. Sonic are also able to monetize across the entire span of our podcast. Sonic works a little differently. It's a platform that is working directly for the brands and for the advertisers. So it enables those brands and advertisers to access podcast inventory, not just on Audioboom, but outside of the exclusive Audioboom network as well. But within Audioboom, it's monetizing those top 200 podcasts, Audioboom Studios podcast, and also the long tail creator network. This slide breaks down our various revenue lines within the business. At the top, you'll see how each of those revenue lines contribute to our group revenue. And then at the bottom, you'll see the gross margin on each one of those revenue lines. So if we take those in turn, Audioboom Studios, that's the shows that we produce ourselves through our production teams or the shows that we coproduce within Audioboom, and they have a strong gross margin at 30%, but it's a small part of our revenue. It's a growing part of our business, just launched just over a year ago. As I said, we have around 30 shows that we are producing or co-producing out of Audioboom Studios. Our premium network, that's those top 200 shows, big audiences, big revenue driver at 65% of our group revenue, but comes with a slimmer gross margin at 19%. And that gross margin has kind of hovered in and around the 20% mark now for the past few years. That's really impacted and there's pressure on that gross margin from the competitive nature of the space we -- us and our competitors are all trying to sign the biggest shows in podcasting, and we have to offer them favorable revenue share terms to attract them to our network and that puts pressure on that gross margin. But it's holding in and around that 20% mark in any particular period. Then Showcase, our newly launched ad marketplace. This has moved very quickly for us, and we're really happy with the progress that we're seeing within Showcase. So very quickly, Showcase has become 14% of our group revenue from its kind of starting point last year and has the highest gross margin now within the business as well. So it's very efficient and is growing revenue very quickly, and we're super pleased with the progress that we're seeing at Showcase. Sonic also has been a fast-growing new addition to Audioboom. It's been with Audioboom now for the past 3-and-a-bit years. Has a slimmer gross margin because it's operating directly with the brand and has to utilize that traditional ad agency gross margin or commissioned structure with the brand, but it's grown very quickly to be 18% of Audioboom's revenue this year so far. So I hope that gives you a good overview of the model, how we sit within the space and how we power podcasting, what the platform does, how we think about content and how we monetize that content and also the various revenue lines and how they come together to form Audioboom. We'll now take a look at performance, and we'll start off with the most recent set of results that we released this morning to the stock market. So I'll walk you through those. Year-to-date revenue of $57.1 million, that's 44% annual growth over the same period last year. And I think one of the key points here is that we are moving once again significantly faster than the wider industry. The podcast space in the U.S. is projected to grow around 15% this year. So we are year-to-date significantly ahead of the wider industry growth. Our EBITDA profit for the first 9 months of the year is $2.7 million, up 125% on the same period last year, which was $1.2 million. So we're now at $2.7 million for this first 9 months of the year. Q3 revenue, down slightly on last year, so $16.2 million. And in a moment, we will obviously talk through market conditions and how they've impacted the business through Q3. It's been a challenging quarter. But we'll go into detail a little more on those market conditions in a couple of slides' time. We continue to be profitable, $600,000 of EBITDA profit for the quarter, again, slightly down on the same period, Q3 of last year due to those market conditions that we're working in. But again, continuing to be a profitable podcast company. And there are very few of those out there right now. I want to kind of draw some attention here to that cash position that we have, $8 million of cash in the bank, with a further GBP 1.5 million or $1.7 million of untouched overdraft facility available to us. That $8 million of cash is the highest cash position we've ever reported as a company. We've been cash generative over the past quarter, adding $2.2 million to that cash balance since the end of June, continue to be fully funded for the current growth plans. And I think as we are working and operating in somewhat uncertain economic times, just having that big cash balance, the biggest cash balance that we've ever had in the business, is going to be a very important point and something that should give us confidence as we move forward. So let's talk, I think, about the way the market has changed since we last got together. I think 3 months ago, we kind of gave you a bit of a heads up that we were starting to see some change in the ad market due to global economic conditions and that has, as we expected, come together in Q3. So we saw a very kind of quick downturn in the ad market in July. And July is the low point in terms of advertiser demand and revenue from advertising. We saw small recoveries in August and September that were both stronger months in terms of revenue than July. We're continuing to see that recovery into Q4. Again, October is another small improvement. And obviously, with the higher demand months around the holidays of November and December, we expect to see that recovery continue in Q4. Now this has mainly impacted the U.S. market. And I think when you look at it, it's because of the inflation impact happening here first and happening a little earlier than it did in the U.K. So the U.K. operation is not really impacted at this point, although we perhaps expect to see some U.K. impact in Q1 or Q2 of next year, particularly when energy pricing has impacted consumers. Our premium ad model is the one that is most impacted. And this is really because those brands that we work directly with in that premium ad model, they are direct-to-consumer brands. So they are the first to be hit by higher inflation and a change in consumer confidence and consumer spending. And they're also performance-driven brands. So they are willing to spend money in podcasting when they can measure the performance of those ads and grow their businesses because those ads perform so well. As consumer spending changes, spending habits change and confidence goes down, those direct-to-consumer and performance-driven brands have been pulling back their spending, and that has impacted that premium ad model that we have. Showcase remains largely unaffected though, and Showcase is working with larger blue-chip brands and they are not as directly impacted or have not, to this point, been as directly impacted as those smaller performance-driven brands. So Showcase has continued to grow. We have not seen too much of an impact there. Now one thing that you'll see here is that the weaker ad market has led to a small number of missed creator minimum guarantees. So to step that back a little bit, when we sign the larger shows within our network, we guarantee the minimum levels of revenue for their content. And as we have seen lower revenue levels due to this weaker ad market, it has meant that we have missed a small number of those minimum guarantees. We obviously have to pay those minimum guarantees out in full, and that results in a kind of a direct hit to the gross margin and EBITDA. So you're seeing that slight reduction in gross margin and lower EBITDA due to some of those -- a small number of those create-a-minimum-guarantees being missed during this tough market. PwC projecting now that the industry grows around 15% this year. And I think just that key point here, again, I've mentioned before and we'll probably mention again before this presentation is over, we continue to go significantly ahead of this industry growth. So while it's tough times out there and tough times in the advertising market, Audioboom is resilient versus our competitors. And we are continuing to grow much -- we're continuing to grow, and we are continuing to grow much faster than our competitors in the podcasting space. So I do want to talk -- I mean, it's a tough market that I've just talked through, has been challenging operating over the first -- the last 3 months, but I do want to talk about some of the key points here. And I think one thing is how much we've really learned from COVID. Now COVID was just 2 years ago. So this is the second time in 3 years that the business has been impacted by larger uncontrollable forces, I think. So we learned a lot from COVID, and it's been great to kind of see that play out and make us more resilient during this economic downturn. I think the first point here is around Showcase. Showcase was really developed during and after COVID to diversify the revenue streams a little bit. So during COVID, we were very much focused on our premium ad model, which was impacted at that time and Showcase was a way to diversify that revenue to start working with those bigger blue-chip brands who are perhaps less impacted by some of these economic conditions. And so Showcase, we've seen great revenue growth there, 75% revenue growth in Q3 versus Q3 of 2021 and 115% year-to-date growth on Showcase versus the same period last year. So I'm really pleased to see Showcase having such a big impact on the business board, as I said, out of COVID. And it now contributes more than 14% to group revenue versus 9% this time last year. So it's growing fast and making a real impact on the business. Likewise, with the opportunity to sign big shows to the network. Again, something we kind of understood during COVID was that there was an opportunity while other competitors of ours are impacted harder by market conditions. There was an opportunity for us to go out and target big shows that we wanted to work with and sign those shows exclusively into the Audioboom network, and that's very much what we're focused on here. New shows just signed in the last 3 months into the top end of that creator network, Lovers and Friends, Mea Culpa, Straight Up With Stassi, Undisclosed. These are all large podcasts here in the U.S. mainly that have strong built-in audiences that can be monetized off the bat, and they are now part of the Audioboom network instantly and continue to see revenue coming from those shows as we go across the last part of this year and into 2023. One point that I do want to talk about is morbid, a large show that was part of the Audioboom network until May. And we have known for several months before May that Morbid would be leaving the network. We have various kind of strict financial -- strict financial goals around making offers to the biggest shows to renew the contracts there. If we'd have chased that Morbid contract and had kept them within Audioboom, that would have left us losing tens of millions of dollars a year. So we had to be very strict on what our top maximum offer was. And as I said, Morbid left the network, and we've had notice of that for several months. But Morbid leaving while it impacted downloads across the network, it hasn't stopped growth within Audioboom. So we've seen over this last period, network downloads across Audioboom, up 33% from last year when you exclude Morbid from last year's numbers. So growth is continuing in terms of consumption and inventory without Morbid even though that -- losing Morbid has obviously impacted the top number, but growth there is continuing strongly, and we'll see that on the chart on a later slide. And then finally, in Q3, we had some success here with Audioboom Studios, particularly in the U.K. But Q3 launches, including Killers, Cults and Queens; Glittering a Turd; Superpower State of Mind, these have all made an impact on the U.K. podcast charts and we're starting to see the commercial benefits of those shows as well as they add more episodes and have more inventory across the year. I talked a little already about Audioboom's performance versus the industry, but both of these charts really are highlighting that. Once again, Audioboom for the fifth year in a row, is growing faster than the wider industry, faster than our competitors. So our year-to-date growth of 44%, significantly stronger than the projected industry growth of 15% this year. So as I said, we are resilient, and we are performing well in this current market. Over that past 5 years of outperforming the industry, we've taken our market share from less than 2% to greater than 6% in that 5 years. So growing market share all the time. And our medium-term goal here is to get to that 10% market share point, and I don't think that's too many years away from getting to that 10% market share point. So a key thing here is despite impact from the market, we are growing faster than our competitors. And the chart on the right is so pleasing to see. This is a rancher of the biggest podcast publishers in the U.S., and this is looking at the time period from July 2021 through to June of 2022. And Audioboom is the fourth largest podcast publisher in the U.S., which is the world's biggest podcast market. And when you look at the company, we're kind of keeping there, it's just a fantastic achievement. So the only publishers above us are Spotify, SiriusXM and iHeart Media, 3 of the biggest broadcast companies in the world. And then we have NPR, which is the BBC of the U.S. and the New York Times immediately below us. So we are kind of, I said this many times before, we continue to punch above our weight. We continue to be very, very smart about the way we do things and to be the fourth biggest publisher in the U.S., is just an incredible achievement. So versus our competitors, we are doing an incredible job here and performing very highly. Alongside of our financial results every quarter, we put out an update on our KPIs and have 3 corporate KPIs. The first one of those is global downloads. That's the amount of consumption that we're seeing across the platform on a quarterly basis. And we're seeing year-on-year growth here, 9% year-on-year growth versus Q3 of 2021. But what you are seeing there on that green line is the drop off through losing Morbid in Q2. So that 124 million, dropping down to 108 million. That's the drop-off for Morbid. But when you remove Morbid, as I said before, and take Morbid out of those stats from last year, that's the pink line, you are seeing the network as a whole continuing to grow very quickly across the past year. So we know we have growth ahead of us on that KPI. We're already seeing in October around 5% growth over Q3. So we do expect that KPI to continue heading in the right direction. Brand count is the number of brands that we work directly within our premium ad model. This one, you'll see here that the dip being linked almost entirely to those market conditions. So Q3 seeing a big drop off there. As I talked about earlier, brands being more nervous about spending money in this space. Again, just highlighting what I said earlier, seeing that recovery and higher demand in Q4 is showing us already in October that, that brand count will tick up as we go into Q4. So confident about a slow and steady return on that brown count KPI. And then eCPM is really our optimization metric. That's how much money we are able to extract from 1,000 downloads across the network. We are $50 per 1,000 downloads across the network. We've been above that $50 number now for the past 18 to 24 months. And while this is a little dip caused by those lower revenue numbers in Q3, again, we're seeing that going higher in Q4. So expect that eCPM number to be up again as we go into Q4. So I think really the story here from the KPIs is you're seeing market conditions impact them in Q3, but the signs are good for recovery as we go into Q4 and 2023. And with that, I'll throw to Brad who can go a little deeper on some other parts.

Great. Thank you very much, Stuart. Hi, everyone, again. So yes, so the Audioboom growth story we've seen over the last few years continues this year. Today, I'll give you further insight into our revenue performance, EBITDA, operational costs, working capital cycle, just building on those themes and messages that we've presented over the last few investor meet sessions. This one, first up, we can see our financial performance over the last 5 years as we've positioned ourselves among the leading companies in the podcast industry. Recognizing revenue growth, which is above the wider podcast industry, taking market share, transitioning the company from a loss-making position to profitability and all with access to resources, which are a fraction of what our competitors can call upon. And as a company and as investors as well, when you're looking at the company, when you look at the podcast space, the company is competing in it, there are a couple of public companies, which can get a decent amount of company-specific information and industry information. But the majority of companies will either be private or be part of larger organizations. So you're not really going to get a full picture of how they're performing. But Audioboom's public. So we are upfront and nice in terms of where we are. And to be able to say that we're growing faster than the wider podcast market, to say that we're profitable when many of our competitors are loss-making, to say that we're cash generative, especially in this economic climate, those are, in my opinion, 3 very good strong messages to be able to communicate to investors. So we know that 2022 will be another record-breaking year for the full year on both revenue and EBITDA. As of the end of Q3, we had recorded book 95% of our revenue total. And today, we've confirmed that we've got $73 million of advertising revenue booked for 2022. So we're already over 20% up on last year, which is above that 15% growth figure that we've quoted. And Stuart has mentioned already from that PwC report from June of this year. Onto the next slide. We can see here a bit more detail in terms of the revenue and costs of the business. We've gone through some of the challenges that we faced in the third quarter, and it's encouraging that we've seen that recovery from July through August and September and into October as well. In terms of that growth across the revenue mix for the first 3 quarters of this year, we've recorded impressive growth statistics across our revenue mix. So the premium network grown by 38%, 115% growth on marketplace and 40% growth in Sonic and Sonic has just booked its record revenue quarter in the third quarter of this year. So lots of positives. We've said revenue has grown by 44%. We know that the OpEx increased at a slower rate of 21% for the first 9 months of the year. The third quarter of this year was flat and level with third quarter of last year at $2.6 million, and Q3 OpEx was actually 16% lower than Q1 and Q2. Now what I'm aiming to illustrate here is that there's continued cost control within the business, and there's actually a cost base that flexes with the revenue recognized within the business and the performance of the business as well. So our -- there's 2 major costs that really vary with the performance of the business. So with revenue recognition, we incentivize our sales staff with sales commissions. Obviously, there's no revenue recognition. So that cost decreases. And download costs as well, we've seen in the third quarter, there have been lower downloads. So therefore, there's a lower cost incurred there as well. So this is not a business that's, for example, lumbered with stock. It doesn't have a high headcount. So when those macroeconomic challenges do occur, we're well placed to weather those because of that cost base does to an extent flex as well. In terms of the mix of OpEx within the business, similar -- same breakdown as before in terms of the major cost being salaries and sales staff commissions that accounts around 65% of our OpEx base. There's an 18% year-on-year increase on that line for the first 9 months of this year from $4.8 million last year up to $5.7 million this year, and that's mainly due to a higher headcount within the business. We ended September on 45 heads slightly down on June, where there was 47 heads within the business, but up year-on-year from the 38 that we had at the end of September last year. I say this every quarter. We continue to be very, very lean, very efficient when compared to our competitors. There's no current plans to increase headcount significantly above where we are today. That's the major cost category within the business. Second major cost category is the technology costs and hosting and downloading that content is within that. First 9 months of the year, there was a 40% increase on technology costs from $1.3 million to $1.8 million for the first 9 months of this year. Obviously, downloads -- cumulative downloads have increased year-on-year. So therefore, we've incurred that higher cost as well. But overall, the point I'm making there is that, that cost base does flex dependent on performance. In terms of a bit more detail on working capital and the cash within the business, I had a couple of questions, pre-submitted questions as well. So I'll go through those in this section as well. As at the end of June, we're very pleased to be able to report, as we did in June, the highest cash balance the company has ever reported at $8 million. It's a testament to the internal processes that we've built within the business to be able to continue to generate that cash. So cash increased by $2.2 million in the third quarter of this year, increased by $5 million since the end of December. Collections totaled almost $59 million for the first 9 months of the year, an average rate of $6.5 million a month. For the second successive quarter, cash collected actually outstripped revenue booked and payments made. Just a note on the payments made. There was one question pre-submitted on that one. So the payments made: That does include OpEx within the business, which when you look at OpEx within business, rough run rate of OpEx is around $1 million a month, just under $9 million OpEx for the first 9 months of this year. The other payments made relate to revenue share payments that we make to our partners. So those costs, if you look at our interim statement within cost of sales, those are the revenue share payments that we make to our podcast partners. So the payments made, the gray column here is OpEx plus those cost of sales. That was a question that we received before, just bit of explanation around that. Another pre-submitted question as well is around the cash that the company holds and the currency that the company holds. So to answer this one, majority of cash held is in U.S. dollars. So the company recognizes around 95% of its revenue in the U.S. So we're invoicing in U.S. dollars and receiving that cash in U.S. dollars. So that's the majority of the cash held within the business at the end of September. The company held around GBP 900,000 in sterling, around $7 million. So that gets us to our $8 million held at the end of the quarter. There's a certain amount of natural hedging that occurs because we are invoicing and receiving in the relevant currency. There's very limited transfer between dollars and sterling. We do have to do that, but very, very occasionally. So there is a certain amount of natural hedging there. So hopefully, that answers that question. In terms of the -- obviously, the weakening of the pound against the dollar, that's another question that we received. The impact that we've seen on the P&L. I actually went through that in the interim statement because of the structure of the company, where the main trade of the business is recognized within Audioboom Limited, our U.K. sterling-based entity, which is then consolidated up into Audioboom plc, which reports in dollars. We are seeing, because we are translating debtors into sterling on the balance sheet, there is a -- to the end of September, there is over $1 million in FX gain within the company, but that's below EBITDA. Around 3 years ago, we moved the FX below EBITDA, because obviously, we can't control that, obviously. So we derisk that from what we report to the market, so that's below EBITDA. You'll see that on our last couple of annual reports as well. The reason why we recognized trade in our U.K. entity. Well, we've got over $30 million of brought-forward tax losses, which we can utilize against to offset future profits. Once those brought forward loss is utilized in the future, we'll then recognize the revenue in the appropriate territory. So hopefully, that gives an overview of the cash position, which is strong within the company. In terms of debtors, a good statistic here. So the strong collections have continued through the third quarter. So the debt-to-day figure at the end of Q3 was 52, which is 16 lower than the 68 reported in June and 42 lower versus the 94 we reported at the end of December. How do we keep doing this? Well, high-quality, reliable invoice information distributed, structured debtor collection processes, good customer relationships will enable this figure to decrease. And that's despite the continued increased revenue. And again, to reinforce that efficiency point in Audioboom, that's run by one person, Shaun. We've got 2 people, [ Jamie ] and James, within Sonic. So that really does -- that's reflective across the business in terms of the efficient team that we've got here in Audioboom. Last time I updated you on our new accounting system, NetSuite. So that went live on the first of July, now successfully closed 3 month ends with it. It's working well. Pleased to report our debtor chasing is automated. Our payment runs are much quicker, partly due to the fact that there's a healthy cash balance there and now that's implemented. We're now using -- moving onto using and that gives greater financial intelligence for finance on the wider business as well. [indiscernible] seem to getting that in so smoothly, and that's another key system of the business now along with sales force allows us to really help the business to scale without adversely impacting it. So to conclude on these financial slides, the working capital cycle continues to function well within the business. The company has more cash reserves at any other point in its history with a GBP 1.5 billion overdraft, which is undrawn. We have not touched that. So the company has at the end of September, around $10 million of available capital to call upon. We're fully funded for that current growth trajectory. We've got a cost base that flexes in part to revenue recognized in downloads, which are recognized. We're profitable to date in 2022, cash generative, and we're well positioned to be in as good a position as we can be to meet those macroeconomic challenges that we've seen in that third quarter. If you've got any other questions on the financials, please just e-mail me directly or shoot over a question today in this presentation. Back to you, Stuart.

Thanks, Brad. Just one more slide from me coming up. So probably now is the last chance to get any questions in. I think we'll have around 10 minutes at the end to do some of those questions. Last slide for me just is a little bit of a look ahead really. So I think the first point here is very important. We currently, as of today, have more than $73 million of advertising bookings in place for 2022. That is 21% higher than the entirety of last year's revenue. So if we stopped everything today, we would still be growing well above market and industry rates. We have another kind of 10, 12 weeks ahead of us in a very high demand season to take that $73 million number upwards, but that's the bookings figure as of today. As I said before, Q4 is seeing a strengthening in advertising demand, and we're seeing that kind of on a monthly basis. But those challenges remain, particularly in the premium part of our business, the direct-to-consumer sector of what we do. So we do think that there are continued challenges ahead, albeit, seeing some strengthening of demand in the next quarter. I said a few times here, but we are set to continue to outperform the industry for the fifth year in a row, growing much faster than that 15% industry growth. And right now, we're really just focused on Upfronts season. So Upfronts is when we book ahead for the entirety of the next year. That begins in mid-October. And it's really going to be our first look at pricing levels and the kind of the confidence that advertisers have, the demand advertisers have for 2023. Usually, we are looking somewhere around 30% of our full year revenue during that period from now until December 31. So we are very much focused on the Upfronts season as we go ahead. So I think in conclusion, challenging times, but Audioboom is resilient and continues to grow across those KPIs into Q4. We're seeing the market improving slightly into Q4, but we know there are some challenges ahead still.