PodcastOne, Inc. (NASDAQ:PODC) director D. Jonathan Merriman has recently increased his stake in the company with the purchase of shares valued at a total of $81,700. The transactions, which took place on June 5 and June 6, involved buying shares at a price range between $1.94 and $1.99.
Merriman's purchase consisted of two separate transactions over the two days. On the first day, he acquired 22,000 shares at $1.95 each. The following day, he added another 20,000 shares to his holdings, paying a weighted average price of $1.94. The prices for the second day's purchases varied, with individual transactions ranging from $1.92 to $1.99 per share.
Following these acquisitions, Merriman's direct ownership in PodcastOne, Inc. has increased to 70,839 shares. Additionally, he holds an indirect interest in 163,079 shares through the D. Jonathan and Odile Merriman Family Trust, over which he shares voting and dispositive power. However, Merriman has disclaimed beneficial ownership of these indirectly held shares, except to the extent of his pecuniary interest.
The recent purchases by the director demonstrate a strong confidence in the future of PodcastOne, a company operating in the computer programming and data processing sector. Investors often monitor such insider transactions as they can provide insights into the perspectives of those most familiar with the company's operations and prospects.
In other recent news, PodcastOne, a leading podcast platform operating under LiveOne, has made significant strides in its strategic growth. The company recently welcomed finance veteran Jon Merriman and former Warner Bros. COO Carolyn Blackwood to its Board of Directors. These appointments aim to enhance PodcastOne's visibility within the financial and investment communities and expand its original programming, respectively.
In terms of financial performance, PodcastOne anticipates robust growth with revenue expected to reach between $50M and $55M for the fiscal year ending March 31, 2025. This projection follows a year where the company reported $43.3M (NYSE:MMM) in revenue, marking a 25% increase from the previous year. The company has also seen year-over-year growth in its fourth quarter, with revenues rising 32% to approximately $11.7M.
Additionally, PodcastOne has entered into a significant business-to-business partnership with a Fortune 250 company, expected to contribute over $20M in annual revenues. The company has also expanded its content production, achieving over 600 million annual downloads and partnerships with over 200 Fortune 1000 advertisers. These recent developments underline PodcastOne's commitment to growth and its efforts to scale business operations.
InvestingPro Insights
PodcastOne, Inc. (NASDAQ:PODC) has seen significant insider activity with director D. Jonathan Merriman's recent share purchases, signaling potential confidence in the company's prospects. In light of these transactions, a closer look at the company's financial health and market performance through InvestingPro data may offer valuable context for investors.
The company's market capitalization currently stands at $46.74 million, reflecting its size within the computer programming and data processing sector. Despite challenges, PodcastOne's revenue has grown by nearly 25% over the last twelve months as of Q4 2024, with a notable quarterly revenue growth of 32.39% in Q4 2024. This growth may be a positive indicator for investors looking for expanding companies.
On the profitability front, PodcastOne's gross profit margin is relatively low at 13.8%, which aligns with an InvestingPro Tip highlighting the company's weak gross profit margins. Moreover, the company's price-to-earnings (P/E) ratio stands at -2.79, with an adjusted P/E ratio for the last twelve months of -3.17, indicating that the company is not currently profitable. This is further supported by another InvestingPro Tip which suggests that analysts do not expect the company to be profitable this year.
Despite these challenges, PodcastOne holds a liquidity advantage, with an InvestingPro Tip noting that the company's liquid assets exceed its short-term obligations, potentially providing a buffer against financial strain. Additionally, the company holds more cash than debt, which is a positive sign for financial stability.
For those considering a deeper dive into PodcastOne's financials and future prospects, InvestingPro offers additional insights and tips. There are currently 7 more InvestingPro Tips available for PODC, which can be accessed through the InvestingPro platform. Interested investors can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
While the insider buying activity may be a strong vote of confidence, it is crucial for investors to consider the full picture, including the company's financial metrics and market performance, before making investment decisions.
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