MWGblog

Michael W. Geoghegan's Weblog

Wizzard Q2 2008 Results: My Take

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There has been a bit of fan-fare today regarding Wizzard’s press release about it’s Q2 2008 financial results. Both Paul Colligan and Podcasting News have highlighted the “bright” points of Wizzard’s press release. For those that think Wizzard is proof that podcast advertising is the answer I’d like to offer some context and thoughts:

  • Wizzard reported gross revenues of $1,465,874 for Q2/2008 – how much is podcast advertising and how much comes from their original “core” business of speech technology? It is never defined. Don’t make the mistake of assuming it is all podcast related.
  • Operating expenses for Q2 came down to $2,159,433 but things are still clearly in the red.
  • Wizzard is a 12 year old company (founded in ’96) loosing millions per year.
  • Wizzard makes no mention of their original business of “speech technology” in the substantive portion of their press release, it is all podcasting. What does that tell you?
  • Wizzard is a public company with only an estimated $6M in gross revenues – would you invest? (You Can: WIZD)
  • 3% revenue growth over Q2 2007. That is the nail in coffin. If they were in a mature industry such as the steel, oil or auto business that would be great, but an “explosive” growth segment such as New Media Advertising? You do the math.
  • A reported 1 Billion downloads last year and only 13 advertisers secured by their “sales pioneers.” 13! That is 1 advertiser per 76 million downloads.

I know a lot of people see $1.4M in a quarter and think wow – that is a lot of money, but given expenses of $2.16M it is not. If they were a new startup it is one thing, but this is a “mature” public company 12 years in the making. I know some of the folks at Wizzard – they are energetic, enterprising and I have high expectations for their future accomplishments. Just make sure you read their press releases with a bit of contextual balance.

UPDATE: I had a nice conversation with Chris Spencer, the CEO of Wizzard yesterday. We probably chatted for a good 20 minutes. I’m glad we got the opportunity to meet each other, and enjoyed our exchange. I’m still looking for explosive growth in the segment. We’ll see what the future holds.

New Media Expo 2008

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NME_Pass.jpgI am off the New Media Expo this week. I have been asked to present: “Corporate Podcasting the Disneyland Way: Case Study from the Place Where Dreams Come True.” (Thursday 8/14/08 2:00 – 3:00PM) I am preparing a presentation that will blow the doors off how we have produced the Official Disneyland Resort Podcast over the last 3+ years. I’ll cover how it started, how it has evolved and where we are today. For Disney fans, podcast producers, consultants and people charged with corporate podcast initiatives I’ll present the information you need to know and the tips, tricks and techniques to ensure a successful podcast production. This is an opportunity to get a behind the scenes peak at how the longest running Fortune 100 company produced podcast is done.

As past attendees know, I have a habit of giving the audience the straight scoop. (This year will be no different.) Last year, I created a bit of controversy with my infamous “Podcasting is Dead” presentation. Given the events of the past year – big surprise: I was proven right! While it frustrates me that many people read that title and did not bother to listen to the substance of my argument regarding the business New Media producers are really in, I understand how things work and have accepted the predictable flack. As for my statements last year, I now have another year’s worth of “proof” points and some new predictions for the year to come but it has been suggested I hold them for a few days until the Expo starts – the reasons given make sense, so I will.

One thing to clear up is that I am bullish on podcasting – always have been. Heck, I authored two books on the subject. My critical statements often get misconstrued and misquoted by well meaning commentators but that is the bane of the eternal optomist. (If you don’t want to get continuously misquoted, don’t become a podcasting pundit.) I had hoped that podcasting would open up opportunities for everyone, that it would develop into a true industry. That never happened. That is not to say that there is no money in podcasting, there is, but it is not something the average person can count on. I have made a nice living as a Podcast Consultant over the last few years, but it is not a business the average person can enter and survive in like real estate or insurance etc. Podcasting is not an Industry, it is a niche and recognized expertise is required.

Meanwhile, I am contemplating a Smith & Wollensky’s or Nobu dinner in Vegas for Thursday evening. Interested? Shoot me an email or Twitter.

ADM – What The Heck Are They Doing With Your Money?

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I first posted about the ADM on April 17th. They had just released their “Advertisement Unit Standards and Downloadable Measurement Guidelines.” I got a lot of heat for my “critical” comments. (My Post is here.) Interestingly, apart from 3 quick puff pieces on April 18, 22 & 23 the ADM has gone silent. If this was such a monumental achievement why have they gone quiet for 2 months?

Again, my criticism is simple, there is a lack of leadership in the ADM. They acquiesced to a bunch of Venture Funded companies who – given recent activity – can’t figure out exactly what they do – much less lead an industry trade group. I wonder where your $1000 or $150 went?

Some might say I’m against the ADM – not at all. I like the basic premise though I have to admit, a bit of “I told you so” comes to mind. Anyone who wishes to criticize my comments, make sure you first address the over 60 days of silence from this “game changing” trade group.

Update: For the record, I like those who are in management positions in the ADM, my honest opinion is they realize they need to focus on keeping their startups afloat rather than the trade organization. I am curious – given the anniversary, will most members be quick to pay this year’s fee?

Auction Napa Valley 2008

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ANVlogo_200px.jpgWhile one of our partners was off in New York accepting our James Beard Award, the rest of the GrapeRadio crew attended Auction Napa Valley 2008. This is the wine event of the year in Napa and GrapeRadio is pleased to be able to cover it for the 3rd year in a row.

This event is put on by the Napa Valley Vintners and as their website states: 700 Guests, 500 winery owners and winemakers, 250 auction lots, dozens of parties, all to be enjoyed within 68 hours. Once again, it was an amazing event!

As far as working conditions go – this is about as good as it gets! Non-stop parties and some of the best food and wine in the world. We worked hard gathering tons of interviews and the highlight, as always, was the gala auction event on Saturday evening. Jay Leno served as host again this year and it included a moving tribute to Robert Mondavi who passed last May.

We made sure to get interviews with all the movers and shakers attending including even Oprah. I’d like to thank everyone who welcomed us but the list is long, between the group we probably attended over 20 separate events hosted by countless wineries. That said, special thanks goes to Departures Magazine and American Express who allowed us unprecedented access as well as the Tudal Family Winery who graciously hosted us at their enormous vineyard home. (We lived like kings, this place is incredible!)

I’m convinced I’ll be sweating pure Cabernet Sauvignon all week during my workouts. Best of all, $10.3 Million was raised for local Napa charities! Thanks again to all. Can’t wait for next year!

The Latest Podcasting Report

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Mark Ramsey points to the newest Edison Research report from Tom Webster on Podcasting which was presented at PodCamp NY last month. Once again, some good info for the Poderati to pay attention to. Mark, a well known radio consultant, points out that radio stations need to be producing their content as podcasts. I have been harping on this for years! As my friend Eric Rice once said, “13 year olds are doing this in their basements – what’s your excuse?” I could write a long post but I’m a talker, it’s why I like podcasting. Instead, here is a roughly 50 minute presentation I gave to a private group of radio and television executives in Minneapolis back in August, 2006 discussing the need to “jump in.” (Click the image below.)

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About

Michael W. Geoghegan is founder and CEO of GigaVox Media.

As a pioneer of podcasting, Michael created some of the first corporate podcasts, including efforts by Disney. Michael is also creator of the 2008 & 2011 James Beard Award winning "GrapeRadio" and "Reel Reviews: Films Worth Watching."

He is editor-in-chief of the Podcast Academy™ book series and co-author of Podcast Solutions: The Complete Guide to Podcasting.