Libsyn Revenue Rises, Net Income Falls To Loss In Third Quarter 2020

Q3 Results

Podcast hosting firm LIBERATED SYNDICATION INC. (LIBSYN) reported a 4.7% year-to-year increase in total revenue to $6.5 million in third quarter 2020, led b a 14.8% increase in its core podcast hosting business. The company's net income fell from a gain of $600,000 to a loss of $2 million (+2 to -7 cents/share).

Pres./COO LAURIE SIMS said, “LIBSYN reported solid third quarter results despite the impact of unusual one-time charges related to management changes earlier this year. Results highlight higher sales and operating income after adjusting for the former CEO’s separation package. We continued to see favorable growth in our podcast hosting segment, which grew 14.8% during the period. This has been driven by new signups on LIBSYN4 and LIBSYNPRO, an increase in episodes on the LIBSYN platform throughout the quarter, along with an increase in podcast downloads. We were able to take advantage of a significant surge in podcast creators following the onset of the COVID-19 pandemic and our high retention rates remain at historical levels. While podcast consumption was affected due to shifting listener behaviors in the second quarter, we have seen that trend reverse over the last several months.

"We continue to make substantive gains on LIBSYN5, our new modern user interface consisting of a simple, but highly functional design that will appeal to new and existing podcasters. LIBSYN5 is being rolled out to our beta community in a series of Previews. We have successfully launched three Preview and testing phases of the product, and are excited by the positive reactions from our beta community. In 2021, we expect LIBSYN5 to be a catalyst for accelerated growth, and plan to fully support the development of new features on the platform throughout the year to increase adoption by new and existing users.

“Over the last several months, we have implemented a number of positive changes at LIBSYN, strengthening the foundation of the company. During the quarter we were able to take advantage of our strong cash flow to reduce our shares outstanding. LIBSYN is well positioned to leverage its excellent financial position, invest in the business and successfully support the execution of LIBSYN’s growth strategy.”

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