Auddia Announces Higher Than Expected Success in User Retention and Shifts Focus to Optimizing Subscription Conversions
faidr 30-day retention has grown from 5% to 12% in the last year, 2% above Auddia's targeted 30-day retention goal
Company now shifts focus down funnel to optimize subscription conversion metrics to drive high margin revenue
BOULDER, Colo., Oct. 14, 2024 (GLOBE NEWSWIRE) -- Auddia Inc. (NASDAQ:AUUD) (NASDAQ:AUUDW) ("Auddia" or the "Company"), a proprietary AI platform for audio identification and classification and related technologies, reinventing how consumers engage with AM/FM radio, podcasts, and other audio content, today announced it has exceeded its 30-day user retention goal of 10%, achieving 12% in the month of September.
"This achievement is the result of continued focus on optimizations of our product offerings and overall stickiness within the faidr mobile app," said Michael Lawless, Auddia's CEO. "This achievement demonstrates the value we are delivering to users and allows us to focus downstream in the metrics funnel to subscription conversion. Accordingly, we have a set of new initiatives in motion, with multiple third-parties supporting us, that aim at our next key objective of achieving 12% subscription conversion in the coming months."
Auddia has been laser focused on growing its user retention for the past year through a steady cadence of product enhancements that included new ad-free podcast listening experiences and numerous UX improvements under its faidr 3.1 initiative. These efforts have resulted in steady gains in 30-day retention, growing from 5% to 12% over the past year. Now that internal retention targets have been achieved the Company will focus on optimizing subscription conversions to drive high margin revenue.
Auddia has maintained a subscription conversion rate of 5% across 2024 but has not prioritized improving this metric until it had achieved at least 10% 30-day retention. With retention success achieved, the Company can now focus on optimizing subscription conversions. This will be accomplished by removing friction from the current paywall process, moving subscription from a passive operation to a more active one for users, and engaging in a series of tests to optimize the when, where, and frequency of paywall views to drive subscription conversion to 12% or more.
With cost per install at or below $1.80, 30-day retention at or above 10%, and subscription conversions driving towards 12%, the Company is rapidly approaching the point where management believes they will be transitioning from a focus on product development to a focus on revenue generation.
"Our efforts are clearly paying off in terms of driving measured interest in our product," said Theo Romeo, Auddia's CMO. "Our objective has always been achieving traction with the hundreds of millions of US consumers, and eventually international consumers, who are active users on other audio platforms. Our success relies on our ability to put a highly differentiated, easy-to-use competing product in the market. That's been our aim since launching faidr, and our retention numbers are positive signs that we're on the right path."
About Auddia Inc.
Auddia, through its proprietary AI platform for audio identification and classification and related technologies, is reinventing how consumers engage with AM/FM radio, podcasts, and other audio content. Auddia's flagship audio superapp, called faidr, brings two industry firsts to the audio-streaming landscape: subscription-based, ad-free listening on any AM/FM radio station and podcasts with interactive digital feeds that support deeper stories and open untapped revenue streams to podcasters. faidr also delivers exclusive content and playlists, and showcases exciting new artists, hand-picked by curators and DJs. Both differentiated offerings address large and rapidly growing audiences with strong purchase intent. For more information, visit: www.auddia.com
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 about the Company's current expectations about future results, performance, prospects and opportunities. Statements that are not historical facts, such as "anticipates," "believes" and "expects" or similar expressions, are forward-looking statements. These forward-looking statements are based on the current plans and expectations of management and are subject to a number of uncertainties and risks that could significantly affect the Company's current plans and expectations, as well as future results of operations and financial condition. These and other risks and uncertainties are discussed more fully in our filings with the Securities and Exchange Commission. Readers are encouraged to review the section titled "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2023, as well as other disclosures contained in the Annual Report and subsequent filings made with the Securities and Exchange Commission. Forward-looking statements contained in this announcement are made as of this date and the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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