Audible (ADBL) crushed in late trading off expansion plans (4Q04 earnings)

| About: Audible, Inc. (ADBL)

Audible (ticker: ADBL) reported Q4 EPS that beat consensus by $0.03 and revenue growth that narrowly missed consensus. Expansion plans for Q2 will cut profits and free cash flow, and sliced the stock by 33% in late trading. Details:

Q4 Results

  • EPS of $0.06 beat consensus by $0.03.
  • Revenue of $10.3 million grew 77% year over year, but missed consensus of $10.5 million.
  • Royalties paid to publishers were 32.1% of revs, versus 31.1% in the prior quarter.
  • Cash cost per new customer was $48, up from $45 in the prior quarter.
  • Free cash flow of $2.2 million was up 309% year over year.
  • New customers of 47.5 thousand beat consensus of 40 thousand.
  • Cash and equivalents were $61.7 million at end-quarter.
  • 200 content partnerships at end-'04 versus 135 at start-'04.

Full Year 2005 Guidance

  • Total revenue of $59-$62 million, up 71% to 80% year-over-year. (2004 revenue of $34.4 million, was up 78% year over year.)
  • Income before income taxes of $3.6-$4.0 million "before deducting an expected $2 million expense related to the launch of Audible UK" and stock based compensation.
  • Capex of $2.7 to $3.3 million.
  • Free cash flow of $1.6-$2.0 million.

ADBL chart below (doesn't show late trading decline).