1. Investment Snapshot
2. Thesis
3. Valuation & Price Target
4. Business & Product Moat
5. People & Governance
6. Market & Macro
7. Financial Quality
8. Risk Register
9. Prediction Market
10. 𝕏 Posts
Discussion
1. Investment Snapshot
2. Thesis
3. Valuation & Price Target
4. Business & Product Moat
5. People & Governance
6. Market & Macro
7. Financial Quality
8. Risk Register
9. Prediction Market
10. 𝕏 Posts
Discussion
1. Investment Snapshot
2. Valuation
Discussion
Symbol
AUUD
Event Date
2020-10-28
Sector
Information Technology
Subsector
IT Services
Offer Range
—
Shares Offered
3.99M
11.29M
$46.6M
35.4%
Implied Upside vs Midpoint
Description
The Company is a technology company headquartered in Boulder, CO that was founded in 2012. We were originally formed to provide the broadcast radio industry with digital consumer products (mobile apps and web applications) that increased radio listener engagement and generated new revenue for radio stations from synchronized audio-digital advertisements. The company is now developing new software technologies for audio media companies and consumers of audio media, more generally. Auddia has developed technology, utilizing Artificial Intelligence (“AI”), to enable consumers to listen to existing AM/FM radio stations without commercials. By leveraging our legacy platform that served the commercial radio industry for seven years, and by deploying new AI technologies that can identify and segment different units of audio content, we plan to bring to market a premium, subscription-based AM/FM radio listening experience through a downloadable app called AuddiaSM (the “Auddia App”). By downloading and subscribing to the Auddia App, consumers will no longer need to listen to commercials in order to enjoy their favorite local radio stations. We intend to introduce the Auddia App in mid 2021. The Company believes the commercial AM/FM radio industry has a significant problem with excessive advertising load. In 2018, the average advertisement load was 16.1 minutes per hour. This means that if these 16.1 minutes were filled with the common 30-second , spot, this would equate to 32 thirty-second spot ads per hour. To avoid listening to so many commercials, we believe consumers have reacted by embracing paid and free offerings such as Spotify, Apple Music, Pandora, Sirius XM, as well as the emerging podcasting industry. According to the 2019 IFPI Global Music Report dated April 2, 2019 revenue from paid subscription streaming grew by 32.9% to $8.9 billion in 2018 (46.8% of global revenue), offsetting losses from physical sales (down 10.1%) and downloads (down 21.2%). Streaming music overall accounted for 80% of U.S. music revenue in the first half of 2019, where paid subscriptions were by far the biggest source of revenue in that category, driving 77% of streaming revenue.” Streaming pushed growth up strongly (increasing by 34% to $8.9 billion). We believe that virtually none of the $11 billion of monthly subscription revenue went to existing commercial radio broadcasters. As of January 22, 2021, we believe there are no paid subscription offerings that provide advertising-free access to commercial AM/FM radio stations. According to Edison Research’s “Share of Ear” study published in the third quarter of 2018 (the “2018 Share of Ear Study”), AM/FM radio continues to be the platform that dominates the time consumers spend listening to audio. Although there are many reasons consumers listen to AM/FM radio, we believe the primary competitive advantage held by AM/FM radio is their ability to curate locally relevant content across multiple formats such as news, talk, sports, weather, traffic and music. We believe consumers value access to this local content as well as the local personalities (DJs and program hosts) for which broadcast radio is well known. We also believe that other than commercial AM/FM radio stations, there is no alternate platform that has the people, infrastructure, talent and experience required to compete with AM/FM radio’s ability to curate local content. The Company has developed its AI technology platform on top of Google’s TensorFlow open source library. Our AI platform is being “taught” to know the difference between all types of audio content. For instance, our platform recognizes the difference between a commercial and a song and is learning the differences between all other content to include weather reports, traffic, news, sports, DJ conversation, etc. Not only does the technology learn the differences between the various types of audio segments, it also identifies the beginning and end of each piece of content. With this technology, audio content can be broken up into discrete units, allowing for the removal of ads and the replacement with any other non-commercial content (e.g., songs, talk segments, weather reports, etc.). The Company is developing its AI technology platform and application to give consumers the first commercially available opportunity to subscribe to an application, the Auddia App, in order to listen to any streaming AM/FM radio station without commercials. Subscribers will be also be able to personalize their experience through “skips” and on-demand capabilities. Starting with this new AM/FM radio listening experience, the Company expects to evolve its technology to become the preferred audio listening platform for consumers across all forms of audio content. We believe AI technologies and the enablement of personalization of content through consumer choice will have a profound impact on the delivery of all content, especially audio. The Company’s early assessment of consumer interest, as evidenced in the results of an in-depth survey commissioned by the Company, suggests commercial viability of the Auddia App product. --- We were originally formed as Clip Interactive, LLC in January 2012, as a limited liability company under the laws of the State of Colorado. Prior to the effectiveness of the registration statement of which this prospectus forms a part, we will convert into a Delaware corporation pursuant to a statutory conversion and will be renamed Auddia Inc. Our principal executive offices are located at 5755 Central Ave., Suite C, Boulder, CO 80301. Our main telephone number is (303) 219-9771. Our internet website is www.auddia.com.
AUDDIA INC. annual income statement and balance sheet, FY 2020 to FY 2025, as reported in SEC filings.
| Metric | FY 2020 | FY 2021 | FY 2024 | FY 2025 |
|---|---|---|---|---|
| Revenue | $111K | — | — | — |
| Operating income | ($2.4M) | ($5.6M) | ($7.9M) | ($7.7M) |
| Net income | ($4.1M) | ($13.5M) | ($8.7M) | ($7.7M) |
| Metric | FY 2020 | FY 2021 | FY 2024 | FY 2025 |
|---|---|---|---|---|
| Total assets | $2.3M | $9.6M | $5.3M | $5.2M |
| Total liabilities | — | — | $604K | $967K |
| Total equity | ($13.1M) | $9.4M | $4.7M | $4.2M |
| Cash & equivalents | $118K | $6.3M | $2.7M | $3.2M |