Rob Ellin: All the above. Now, we have a spectacular relationship with Tesla that is continuing to grow and now has been extended for its 10th year, but we’re going to continue to grow our partnerships utilizing all of our podcast creators, all of our social media creators, all of account creators as well as our B2B partnerships. And we’re really special. And we separate ourselves from the rest of the crowd is threefold. Number one in pricing, we’re by far the lowest in the industry. We’re a third of the price of most of our competitors. Number two, in service and that we can be nimble and have the ability to do things that we do for our customers that others can’t do. And number three is white labeling, being able to provide a white label solution and be able to call it Tesla radio or a Verizon radio.
For that matter, almost any one of our partners that is 10 million to 1 billion users have the ability to white label and utilize that solution, which there really is no one else in the industry has that capability of doing based on their size.
Thierry Wuilloud: Great. Maybe just one last question. You mentioned 58% of the revenue from membership and 42% from sponsorship. Is that — do you see that trending higher on membership as time goes or you think that’s a good balance? Currently, how should we think about that?
Rob Ellin: What’s nice to see is we’ve got two horses in the race now running fast. And so the podcast business has grown dramatically from $34 million. We gave guidance of $47 million to $52 million, right on a run rate. And the same thing on the Slacker side of it, on the audio side of it, we’ve grown from $20 million — each of these businesses started at $20 million when we’re acquiring them. Slacker, which we’ve owned two years longer is now doing — this year, it’ll be $65 million. And the same thing on podcast was doing $20 million. These were both losing a lot of money. They’re now profitable. They’re now EBITDA — size about EBITDA coming out of it. And on the podcast side as you grow from $20 million, you’re seeing some real sizable growth. And I see a two-horse race here where they’re going to be pretty neck-and-neck over the next three years.
Thierry Wuilloud: Great. Hey, thanks for the answers and nice quarter. I appreciate your comments on the microcap sectors and how kind of unprecedented that current situation is. But hopefully better times ahead. Thanks again.
Rob Ellin: Thank you. Appreciate you joining.
Operator: Our next question comes from Jon Hickman of Ladenburg Thalmann.
Jon Hickman: Rob, just one quick question. Will you elaborate on your comment that the current quarter, the December quarter is going to be record. Does that mean the best quarter you’ve had in corporate history or the best third quarter you have ever had?
Rob Ellin: Now to be — it will be the best quarter in the history of the company. And this — you can see by a lot of the metrics that we’ve already announced. We’ve already given telltale signs of where the growth is and what the growth is. We’re growing about 60,000 subscribers a month. We’re announcing almost a new podcast every two weeks. So it’s really kind of — now the model is to come really easy. As you know Jon, with new podcast, we’re adding $350,000 to $500,000 of revenues. So you see those announcements, you can easily figure those out. Sky and somewhere in that 10% to 15% your net margins . Same thing in subscribers. Every subscriber that we’re adding, every paid subscribers are already adding, we’re adding in the — between $3 to $3.5 ARPU with about 30% margins.
So if we can continue to do that, we continue to add those, this quarter is just going to be — it’s going to be a very, very special quarter coming up. And that’s the reason we, again, raised our EBITDA guidance, even though our revenues won’t hit the numbers, we would like to because the IPO took longer than we expected but the uplisting took longer than we expected. But I see telltale signs that the cast media as well as the pipeline of podcasts are kicking in fast right now.
