Audible Announces Fourth Quarter 2007 Financial Results

Business Wire, Feb 29, 2008

NEWARK, N.J. -- Audible, Inc. (NASDAQ: ADBL; www.audible.com), the leader in spoken audio entertainment, information, and educational programming on the Internet, today announced unaudited financial results for the fourth quarter and year ended December 31, 2007.

Audible reported consolidated fourth quarter net revenue of $31.1 million, up 35% over the $23.2 million reported in the fourth quarter of 2006 and 13% over the $27.6 million reported in the third quarter of 2007. Revenue for the year ended December 31, 2007, was $110.0 million, up 34% from the $82.0 million in revenue for 2006.

Adjusted EBITDA for the fourth quarter of 2007 was $3.2 million, an increase of $2.6 million from adjusted EBITDA in the fourth quarter of 2006, and an increase of $1.3 million from $1.9 million in the third quarter of 2007. The company finished 2007 with $8.0 million of adjusted EBITDA, compared to a loss of $(1.0 million) in 2006.

Net income for the fourth quarter of 2007 was $4.0 million, or $0.16 per share, an improvement from the net loss of $(0.9 million), or $(0.04) per share, reported in the fourth quarter of 2006. Net income included a non-operating benefit of $3.1 million from the sale of net operating loss tax credits in the state of New Jersey. The company finished 2007 with net income of $2.4 million or $0.10 per share compared to a net loss of $(8.7 million) or $(0.36) per share in 2006.

During the quarter, 71,000 new AudibleListener[R] members were acquired, an increase from the 70,000 new AudibleListener members reported in the fourth quarter of 2006, and a 13% increase quarter over quarter, from the 63,000 new members reported in the third quarter of 2007.

There were 457,000 total AudibleListener members at the end of 2007, compared to 381,000 total members reported at the end of 2006. This included 324,000 Gold/Platinum members which represented a gain of 85,000 members in one of the minimum monthly delivery subscription plans since last year.

Amazon Acquisition

On January 31, 2008, Audible and Amazon.com, Inc. (NASDAQ:AMZN) announced that they had reached an agreement for Amazon to acquire Audible. Amazon commenced a tender offer on February 11, 2008, to purchase for cash all of the outstanding shares of Audible for $11.50 per share. The transaction is subject to certain regulatory reviews and other conditions and is expected to close by the second quarter of 2008.

Use of Non-GAAP Measures

In addition to the results presented in accordance with generally accepted accounting principles, or GAAP, Audible presents financial measures that are non-GAAP measures, specifically adjusted EBITDA. Adjusted EBITDA is net (loss) income excluding interest, taxes, depreciation, amortization, asset impairment, loss on equity investment, and stock based compensation. Audible believes that this non-GAAP measure, viewed in addition to and not in lieu of Audible's reported GAAP results, provides useful information to investors regarding its performance and overall results of operations. These metrics are an integral part of Audible's internal reporting to measure the performance of the company and the overall effectiveness of senior management. Reconciliations to comparable GAAP measures are available in the accompanying schedules to this press release and on Audible's Web site. The GAAP financial measures presented are consistent with Audible's historical financial reporting practices. The non-GAAP measures presented herein may not be comparable to similarly titled measures presented by other companies, and are not identical to corresponding measures used in our various agreements or other public filings. Management also presents total cash sales. The measurement of total cash sales is defined as the change in deferred revenue plus consolidated net sales. Management believes that total cash sales is a useful measurement when understanding the increase in deferred revenue.

About Audible, Inc.:

Audible (www.audible.com) is the leader in spoken audio information and entertainment on the Internet. Content from Audible is downloaded and played back on personal computers, CDs, or AudibleReady computer-based and wireless mobile devices. Audible has 180,000 hours of audio programs from more than 470 content partners that include leading audiobook publishers, broadcasters, entertainers, magazine and newspaper publishers, and business information providers. Audible is the preeminent provider of spoken-word audio products for Apple's iTunes Store. Among Audible's key business relationships are Apple, Inc., Amazon.com, Palm, Inc., Creative Labs Inc., SanDisk Corporation, and XM Satellite Radio, Inc. Audible has its headquarters in Newark, NJ, and an office in London, England. Audible, audible.com, AudibleListener, and AudibleReady are registered trademarks of Audible, Inc. and all are part of the family of Audible, Inc. trademarks. Other product or service names mentioned herein are the trademarks of their respective owners.

Forward-Looking Statements