Radio FM has 4.6 million MAUs listening to streaming AM/FM radio stations, generating $2.23M in high margin revenue

Radio FM delivers $1.4M in operating cash flow to significantly reduce Auddia's burn

BOULDER, CO - (NewMediaWire) - February 27, 2024 - Auddia Inc. (NASDAQ:AUUD) (NASDAQ:AUUDW) ("Auddia" or the "Company"), a proprietary AI platform for audio identification and classification and related technologies, that is reinventing how consumers engage with AM/FM radio, podcasts, and other audio content, announced today that it has signed a definitive purchase agreement to acquire Radio FM (RFM), a leading AM/FM streaming app. Closing the acquisition remains subject to financing the acquisition cost.

Radio FM is one of the leading global radio streaming mobile applications. In early January of 2024, Google selected the Radio FM streaming app as an Editor's Choice app in the Play Store, making it only the third app in the Radio category to get an Editor's Choice badge alongside iHeart and Pandora.

Michael Lawless, CEO of Auddia, said, "We are seeing strong subscription conversion numbers off the faidr free tier which is solidifying our confidence that a large number of AM/FM streaming listeners are willing to pay a subscription to avoid commercials while listening to their favorite stations. The challenge now becomes how to grow the free tier user base in the most cost-efficient manner possible to increase our pool of potential subscribers. The Radio FM acquisition allows us to acquire 4.6 million retained users at a customer acquisition cost (CAC) that is approximately 70% lower than the cost to acquire a free tier user through our direct marketing methods. This is obviously a far more economical and faster way to build revenue, reduce burn, drive subscriptions, and achieve sustainability. We look forward to engaging with investors to secure the financing needed to close the transaction."

The Radio FM asset consists of $2.3M in 2023 revenue with $1.4M in related operating cash flow and represents approximately 4.6 million monthly active users on the free tier. The acquisition is priced at $13M cash at closing with an additional $2M in cash paid six months after closing assuming certain performance milestones are maintained.

Auddia continues to advance discussions with the other two previously disclosed acquisition targets under LOI and will provide an update on their status in the coming days.

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 ad-free podcast listening with the addition of 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