Sign In  |  Register  |  About Pleasanton  |  Contact Us

Pleasanton, CA
September 01, 2020 1:32pm
7-Day Forecast | Traffic
  • Search Hotels in Pleasanton

  • CHECK-IN:
  • CHECK-OUT:
  • ROOMS:

Auddia Provides Corporate Update as it Executes Two Non-Binding LOIs With Its Buyside M&A Strategy

Projected cash flow from acquisition targets would reduce current burn by over 60%

Subscription conversion rate of 3% on acquired user base of 1 million U.S. users holds the potential to achieve cash flow breakeven

Company anticipates further organic growth from ramped up marketing of faidr 3.0 in second half of the year 

Key user metrics and de novo MAU growth data to be provided in Q3

BOULDER, CO - (NewMediaWire) - June 20, 2023 -  Auddia Inc. (NASDAQ:AUUD) (NASDAQ:AUUDW) ("Auddia" or the "Company"), developer of a proprietary AI platform for audio and innovative technologies for podcasts that is reinventing how consumers engage with audio, today provided an expanded corporate update following the execution of two non-binding letters of intent as part of its buy-side M&A strategy and recent closing on approximately $3.1 million in new financing.

“Given current market conditions, we are very pleased to have closed a financing at a premium according to the Nasdaq definition, while protecting our cap table by not offering warrants of any kind. The additional cash, along with the progress we have made on the release of faidr 3.0 and our buyside M&A strategy, positions us well to meet or exceed the user and revenue targets we established for 2023,” said Jeff Thramann, Executive Chairman of Auddia.

Earlier this week the Company announced completion of the faidr 3.0 upgrade on the iOS platform and projected the release of faidr 3.0 on the Android platform in early July. Completion of the faidr 3.0 product is a significant catalyst as it represents the key milestone required to increase marketing spend in the second half of the year to begin reporting key user metrics and revenue growth.

The Company continues to make great progress with respect to its previously announced buyside M&A strategy. The strategy is focused on acquiring high margin AM/FM streaming aggregators that deliver both cash flow to reduce burn and an installed user base of retained AM/FM streaming listeners on a free tier that can be offered the opportunity to purchase a subscription to the commercial-free premium AM/FM listening experience that is the hallmark of faidr.

Auddia CEO Michael Lawless added, “We have now entered into non-binding LOIs with our first two acquisition partners and are well into the due diligence phase. As previously announced, the initial targets, if successfully closed, would significantly change the trajectory of the Company going forward. Not only will the anticipated $3M plus in cash flow from the initial acquisitions reduce our current burn by over 60%, the acquired user base of approximately 1 million monthly active users in the U.S. offers a fertile base of retained AM/FM streaming listeners that can be offered the faidr upgrade. Because of our uniquely high margins in the audio streaming space, a conversion rate of 3% off the acquired U.S. based listeners, if achieved, would eliminate the rest of our current cash burn rate. For perspective, we announced early subscription conversion rates on our faidr 2.0 product earlier this year of 10%. It is important to note that we would reach this position of sustainability just from (i) the acquired revenue and cash flow and (ii) achieving a successful subsequent conversion of the U.S. based acquired users. The high margin revenue generated from our core strategy of putting marketing dollars behind faidr 3.0 is additive. You can see why we are so excited about the runway provided by the current financing and the opportunities we are creating for the second half of the year.”      

The Company will provide updates on the M&A strategy as definitive purchase agreements are executed. The closing of any proposed acquisitions will be contingent on securing additional financing. The Company will also begin to release key user metrics as well as de novo MAU growth data for both the free and subscription tiers in Q3 of this year.

Visit faidr.com for more information.

About Auddia Inc.

Auddia, through its proprietary AI platforms for audio, is reinventing how consumers engage with AM/FM radio, podcasts, music, and other audio content. Auddia’s flagship audio superapp, called faidr, brings three industry firsts to the audio-streaming landscape: subscription-based, ad-free listening on any AM/FM radio station; podcasts with interactive digital feeds that support deeper stories and create new revenue streams for podcasters; and a proprietary chat interface for music. faidr also delivers exclusive content and playlists, and showcases exciting new artists, hand-picked by curators and DJs. All differentiated offerings address large and rapidly growing audiences.

For more information visit: www.auddia.com

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 about the Company's current expectations about future results, performance, prospects and opportunities. Statements that are not historical facts, such as "anticipates," "believes" and "expects" or similar expressions, are forward-looking statements. These forward-looking statements are based on the current plans and expectations of management and are subject to a number of uncertainties and risks that could significantly affect the Company's current plans and expectations, as well as future results of operations and financial condition. These and other risks and uncertainties are discussed more fully in our filings with the Securities and Exchange Commission. Readers are encouraged to review the section titled "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2022, as well as other disclosures contained in the Annual Report and subsequent filings made with the Securities and Exchange Commission. Forward-looking statements contained in this announcement are made as of this date and the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Investor Relations:

Kirin Smith, President

PCG Advisory, Inc.

ksmith@pcgadvisory.com

www.pcgadvisory.com

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
 
 
Photography by Christophe Tomatis
Copyright © 2010-2020 Pleasanton.com & California Media Partners, LLC. All rights reserved.