AUDDIA INC. (AUUD)·Q2 2024 Earnings Summary

Executive Summary

• Auddia reported zero revenue and a net loss of $2.30M for Q2 2024; EPS improved sequentially to $(0.86) from $(1.98) in Q1 2024, largely due to lower interest expense after repaying bridge notes, offset by a non‑cash warrant fair‑value charge .
• Liquidity was bolstered by equity line sales: $2.0M on Aug 20 (1.65M shares) and $1.3M on Sep 3 (1.23M shares), increasing shares outstanding to 4.44M (Aug 22) and then 5.67M (Sep 3) .
• Management launched faidr 3.1 with Forward+ and Seamless podcast features, targeting retention and subscription conversion; CarPlay/Android Auto integrations were guided for near-term announcement .
• Nasdaq compliance was regained on bid price and equity thresholds; nevertheless, going-concern risk persists with runway into Q4 2024 absent additional financing .
• No earnings call transcript or numeric guidance was available; Wall Street consensus estimates from S&P Global were unavailable due to data access limits, so beats/misses cannot be assessed at this time (Values retrieved from S&P Global).*

What Went Well and What Went Wrong

What Went Well

• Product execution: faidr 3.1 launched with Forward+ (skip chapters/ad breaks with a single press) and Seamless subscription ad-avoidance on partner podcasts; management expects improved retention and subscription revenue conversion . Quote: “No other platform can give consumers access to commercial free AM/FM streaming and podcasting in the same app.” — Theo Romeo, CP&MO .
• Capital actions reduced cash interest burden: $2.75M bridge note principal repaid in April; interest expense fell sharply YoY and sequentially, aiding EPS improvement .
• Listing status remediation: company regained Nasdaq bid-price and equity compliance; subject to a one-year panel monitor, reducing delisting overhang .

What Went Wrong

• No revenue trajectory yet: Q2 revenue remained $0; operating expenses were $1.65M, leading to continued losses and no margin basis to assess commercial traction .
• Dilution and warrant overhang: multiple warrant issuances and price adjustments tied to financings create ongoing dilution risk and non‑cash P&L volatility (change in fair value of warrants of $(0.63)M in Q2) .
• Going concern: management disclosed substantial doubt without additional financing; current plans fund operations only into Q4 2024 .

Financial Results

Notes:

• Sequential EPS improved due to lower interest expense post-debt repayment; offset by non‑cash warrant fair-value charge in Q2 .
• No revenue; margins (Gross/EBITDA/Net Income %) are not meaningful with $0 revenue .

Segment breakdown: Not applicable (single operating entity) .

KPIs: No reported user/MAU/subscriber metrics; management emphasized retention and conversion objectives with faidr 3.1 features .

Capital & Liquidity Highlights:

Guidance Changes

No numeric guidance was issued in filings or press releases reviewed .

Earnings Call Themes & Trends

No earnings call transcript was available for Q2 2024 (no document found).

Management Commentary

• “The overarching goal of Auddia since launching faidr has been to continuously improve the app… to convert [consumer interest] into retained users at rates that can drive significant revenue from subscribers.” — Jeff Thramann, Executive Chairman .
• “Forward+… skip entire content segments… Through Seamless… consumers can automatically avoid ads through a subscription tier that shares revenue with the podcast creator.” — Product description .
• “We expect to see continual improvements in user metrics that form the basis for driving meaningful subscription revenue.” — Theo Romeo, CP&MO .
• Liquidity and going concern: “Substantial doubt… ability to continue as a going concern… current level of cash is not sufficient… will deplete cash on hand during the fourth quarter of 2024.” — 10‑Q disclosure .
• Listing status: Regained compliance with equity and bid price requirements; subject to mandatory panel monitor for one year .

Q&A Highlights

No Q2 2024 earnings call transcript or Q&A was available (no document found). No additional clarifications beyond filings and press releases were identified.

Estimates Context

• Wall Street consensus for Q2 2024 EPS and revenue via S&P Global was unavailable due to access limits; therefore, comparison to estimates is not possible at this time (Values retrieved from S&P Global).*
• Given zero reported revenue and the company’s pre-revenue commercialization stage, any future estimates will likely hinge on user retention/conversion KPIs tied to faidr 3.1 and Seamless monetization .

Key Takeaways for Investors

• Pre-revenue stage persists; operational focus is on retention/conversion via faidr 3.1 features and upcoming CarPlay/Android Auto integrations — watch for hard KPI disclosures to validate the subscription thesis .
• Liquidity improved post-quarter with equity line draws ($3.3M total across Aug–Sep), but dilution increased; expect continued reliance on external financing near term, with potential warrant-related P&L volatility .
• Interest burden reduced after $2.75M bridge note principal repayment; EPS sequentially improved, but non‑cash warrant fair‑value drove “Other expense” in Q2 — monitor financing terms for future fair‑value impacts .
• Nasdaq listing risk mitigated; company remains under one-year monitor — reduces immediate capital markets overhang but mandates disciplined equity management .
• Near-term catalysts: formal CarPlay/Android Auto launch, additional podcast partners under Seamless Pay‑Per‑Play, and any disclosure of subscriber/user metrics or conversion rates .
• Risk: going-concern disclosure with runway into Q4 2024; failure to raise capital could force reductions in development/commercialization efforts .
• Strategic posture: M&A reset after RadioFM termination; elevated diligence costs in H1 suggest prioritizing organic scaling via product differentiation rather than acquisitive user growth .