PodcastOne, Inc. (NASDAQ:PODC) has reported a purchase of shares by director D. Jonathan Merriman, according to the company's latest SEC filing. On September 9, 2024, Merriman acquired 10,000 shares of PodcastOne's common stock at a weighted average price ranging from $1.60 to $1.61 per share, amounting to a total investment of $16,000.
This purchase has increased Merriman's direct holdings in the company to 136,539 shares. Additionally, the filing noted that Merriman has indirect ownership through the D. Jonathan and Odile Merriman Family Trust, which holds 163,079 shares. Merriman, as a trustee, shares voting and dispositive power over these shares. However, he disclaims beneficial ownership of the trust's shares, except to the extent of his pecuniary interest.
Investors often look to insider transactions as a signal of the executive's confidence in the company's prospects. This recent transaction by a member of PodcastOne's board may be interpreted as a positive sign for the company's future by the investment community.
PodcastOne, Inc., with its headquarters in Beverly Hills, California, specializes in computer programming, data processing, and other technology-related services. The company, which operates under the 06 Technology organization name, was formerly known as Courtside Group, Inc. before changing its name in July 2022.
In other recent news, PodcastOne, a part of LiveOne, has projected a record $13M in revenue for Q1, marking a 21% increase from the same period last year. The company also reported a rise in its Podtrac ranking and an expansion of its unique monthly audience in the U.S. and global downloads and streams. These preliminary results, however, are subject to change as they have not yet been reviewed by an independent accounting firm.
In addition to its financial performance, PodcastOne has announced the addition of Jon Merriman, a finance expert, to its Board of Directors. This strategic move is anticipated to enhance the company's growth initiatives and visibility within the financial sector.
In terms of future expectations, PodcastOne is projecting revenues between $50M and $55M for the fiscal year ending March 31, 2025, following a successful fiscal year that concluded with $43.3M (NYSE:MMM) in revenue and $660K in adjusted EBITDA. The company also highlighted its content production growth, with over 600 million annual downloads and partnerships with over 200 Fortune 1000 advertisers. Among these partnerships, a significant business-to-business partnership with a Fortune 250 company is expected to contribute over $20M in annual revenues. These are some of the recent developments from PodcastOne.
InvestingPro Insights
PodcastOne, Inc. (NASDAQ:PODC) has shown a mixture of financial indicators that could influence investors' perspectives on the company's value and potential. With a market capitalization of $39.63 million, the company holds a notable position in the technology services sector. Despite not being profitable over the last twelve months, analysts are optimistic, predicting that PodcastOne will turn a profit this year.
From an asset management perspective, PodcastOne has a strong liquidity position. The company holds more cash than debt on its balance sheet, and its liquid assets exceed short-term obligations. This suggests that the company is well-positioned to manage its short-term liabilities and could potentially invest in growth opportunities or weather economic downturns without immediate financial distress.
In terms of shareholder returns, PodcastOne does not pay a dividend, but it does exhibit a high shareholder yield, which could be attractive to certain investors looking for capital gains rather than income. Additionally, the company's price has seen a significant drop over the past year, with a 1 Year Price Total Return of -62.83%. This decline in share price may present a buying opportunity for investors who believe in the company's turnaround potential, especially considering director D. Jonathan Merriman's recent share purchase, which could be seen as a vote of confidence in the company's future.
While these insights provide a snapshot of PodcastOne's financial health and market position, there are additional InvestingPro Tips available for investors seeking a deeper analysis. In total, there are 8 InvestingPro Tips listed on https://www.investing.com/pro/PODC, which offer further guidance on the company's financial metrics and investment profile.
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