• LiveOne (Nasdaq: LVO) Reports Q3 Fiscal Year 2024 Record Revenue of $31.2M and Adjusted EBITDA* of $3.3M, Memberships Increased 687K ( 36% YoY)

    Источник: Nasdaq GlobeNewswire / 08 фев 2024 08:45:00   America/New_York

    • Record Revenue of $87.5M and Adjusted EBITDA* of $8.2M for the First 9 Months FY 2024 
    • Audio Division, consisting of Slacker Radio and PodcastOne (Nasdaq: PODC), Reports Record Revenue of $79.9M and Adjusted EBITDA* of $13M for First 9 Months FY 2024  
    • Maintaining Guidance for FY 2025 Consolidated Revenue of $140M - $155M and Adjusted EBITDA* of $16M - $20M
    • Maintaining Guidance for FY 2025 Audio Division of Revenues $130M - $140M and Adjusted EBITDA* of $20M - $25M and Over $17M of Positive Cash Flow
    • LiveOne’s Senior Management Will Host a Live Conference Call and Audio Webcast Beginning at 10:00 A.M. ET on Thursday, February 8, 2024

    LOS ANGELES, CA, Feb. 08, 2024 (GLOBE NEWSWIRE) -- via NewMediaWire -- LiveOne (Nasdaq: LVO), an award-winning, creator-first, music, entertainment, and technology platform, announced today its operating results for the third fiscal quarter of its fiscal year ending March 31, 2024 (“Q3 Fiscal 2024”).
      
    LiveOne’s CEO and Chairman, Robert Ellin, commented, “I’m thrilled to announce our continued success and growth across all divisions. As we approach the end of Fiscal Year 2024, we are not only meeting but exceeding our targets. The momentum we’ve built sets the stage for an even more exciting and prosperous Fiscal Year 2025.”

    Ellin continued, “From inception, our vision has been clear: to create the LiveOne Flywheel, a vertically integrated powerhouse. We utilize innovative AI technologies to cut costs while collaborating with creators and influencers, transcending traditional boundaries and mediums. Our commitment is unwavering: to promote their brands seamlessly across every facet of our organization, enriching both our talent and our shareholders.”

    Recent and Q3 Fiscal 2024 Highlights

    • Paid members as of December 31, 2023 increased 687K, or 36%, as compared to the prior year. Total members including free ad-supported memberships was approximately 3.5 million at December 31, 2023.**
    • PodcastOne was ranked 10th in Podtrac’s Podcast Industry Top Publishers Rankings for January 2024 with a U.S. Unique Monthly Audience of ~5.3 million and Global Downloads and Streams of ~19.2 million.
    • As previously announced, with the assistance of J.P. Morgan, LiveOne is continuing a process to explore strategic alternatives to enhance shareholder value. Potential alternatives may include, among others, a strategic acquisition, divestiture, merger, sale or other form of business combination. There can be no assurance that LiveOne's efforts will result in a specific transaction or any particular outcome or its timing.

    Q3 FY 24 and Q2 FY23 Results Summary (in $000’s, except per share; unaudited)
          

      Three Months Ended
    December 31,
      Nine Months Ended
    December 31,
     
      2023   2022   2023   2022  
                 
    Revenue $31,245   $27,309   $87,541   $74,063  
    Operating income (loss) $(753)       $(574)       $(3,507)   $(1,324)  
    Total other income (expense) $(1,486)       $(1,963)   $(7,116)   $(3,270)  
    Net income (loss) $(2,224)       $(2,548)       $(10,666)      

     $(4,609)      
    Adjusted EBITDA* $3,313   $3,067       $8,192   $9,435      
    Net income (loss) per share basic and diluted $(0.03)       $(0.03)       $(0.14)       $(0.05      


    Q3 Fiscal 2024 Results Summary Discussion

    For Q3 Fiscal 2024, LiveOne posted revenue of $31.2 million, a 14% increase, as compared to $27.3 million in the same period in the prior year. Slacker revenue was a record $16.8 million, a 26% increase, as compared to revenue of $13.4 million in the third fiscal quarter for its fiscal year ended March 31, 2023 (“Q3 Fiscal 2023”). PodcastOne revenue was $10.4 million, a 22% increase, as compared to revenue of $8.6 million in Q3 Fiscal 2023.

    Q3 Fiscal 2024 Operating Loss was ($0.8) million compared to Operating Loss of ($0.6) million in Q3 Fiscal 2023. The $0.2 million increase in Operating Loss was largely a result of an increase in operating expenses associated with share-based compensation.

    Q3 Fiscal 2024 Adjusted EBITDA* of $3.3 million increased as compared to Q3 Fiscal 2023 Adjusted EBITDA* of $3.1 million, which was primarily driven by our increase in revenue for the current period. Q3 Fiscal 2024 Adjusted EBITDA* was comprised of Slacker Adjusted EBITDA* of $6.8 million and PodcastOne Adjusted EBITDA* loss of $(0.4) million.

    Capital expenditures for Q3 Fiscal 2024 totaled approximately $0.8 million, which were driven by capitalized software costs associated with development of LiveOne’s integrated music player.

    LiveOne's senior management will host a live conference call and audio webcast to provide a business update and discuss its operating and financial results beginning at 10:00 a.m. ET / 7:00 a.m. PT on Thursday, February 8, 2024.

    Conference Call and Webcast:

    WHEN: Thursday, February 8th
    TIME: 10:00 AM ET / 7:00 AM PT
    DIAL-IN (Toll Free): (833) 470-1428
    DIAL IN NUMBER (Local): (404) 975-4839
    ACCESS CODE: 331352

    Replay Number:
    US (Local): (929) 458-6194
    Access Code: 968462

    Webcast – Both the live webcast and a replay can be accessed on the Investor Relations section of LiveOne's website at Events | LiveOne. The webcast can also be accessed at:  https://events.q4inc.com/attendee/103660746

    About LiveOne, Inc.

    Headquartered in Los Angeles, California, LiveOne, Inc. (Nasdaq: LVO) (the “Company”) is an award-winning, creator-first, music, entertainment, and technology platform focused on delivering premium experiences and content worldwide through memberships and live and virtual events. The Company's subsidiaries include Slacker Radio, PodcastOne (Nasdaq: PODC), PPVOne, Palm Beach Records, CPS, LiveXLive, DayOne Music Publishing, Drumify and Splitmind. LiveOne is available on iOS, Android, Roku, Apple TV, Spotify, Samsung, Amazon Fire, Android TV, and through STIRR’s OTT applications. For more information, visit liveone.com and follow us on FacebookInstagramTikTokYouTube and Twitter at @liveone. For more investor information, please visit ir.liveone.com.

    Forward-Looking Statements

    All statements other than statements of historical facts contained in this press release are “forward-looking statements,” which may often, but not always, be identified by the use of such words as “may,” “might,” “will,” “will likely result,” “would,” “should,” “estimate,” “plan,” “project,” “forecast,” “intend,” “expect,” “anticipate,” “believe,” “seek,” “continue,” “target” or the negative of such terms or other similar expressions. These statements involve known and unknown risks, uncertainties and other factors, which may cause actual results, performance or achievements to differ materially from those expressed or implied by such statements, including: the Company’s reliance on one key customer for a substantial percentage of its revenue; the Company’s ability to consummate any proposed financing, acquisition, spin-out, special dividend, merger, distribution or transaction, the timing of the consummation of any such proposed event, including the risks that a condition to the consummation of any such event would not be satisfied within the expected timeframe or at all, or that the consummation of any proposed financing, acquisition, spin-out, merger, special dividend, distribution or transaction will not occur or whether any such event will enhance shareholder value; the Company’s ability to continue as a going concern; the Company’s ability to attract, maintain and increase the number of its users and paid members; the Company identifying, acquiring, securing and developing content; the Company’s intent to repurchase shares of its and/or PodcastOne’s common stock from time to time under its announced stock repurchase program and the timing, price, and quantity of repurchases, if any, under the program; the Company’s ability to maintain compliance with certain financial and other covenants; the Company successfully implementing its growth strategy, including relating to its technology platforms and applications; management’s relationships with industry stakeholders; uncertain and unfavorable outcomes in legal proceedings; changes in economic conditions; competition; risks and uncertainties applicable to the businesses of the Company’s subsidiaries; and other risks, uncertainties and factors including, but not limited to, those described in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2023, filed with the U.S. Securities and Exchange Commission (the “SEC”) on June 29, 2023, Quarterly Report on Form 10-Q for the quarter year ended September 30, 2023, filed with the SEC on November 20, 2023, and in the Company’s other filings and submissions with the SEC. These forward-looking statements speak only as of the date hereof, and the Company disclaims any obligation to update these statements, except as may be required by law. The Company intends that all forward-looking statements be subject to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995.

    **Included in the total number of paid members for the reported periods are certain members which are the subject of a contractual dispute. LiveOne is currently not recognizing revenue related to these members.

    * About Non-GAAP Financial Measures  

    To supplement our consolidated financial statements, which are prepared and presented in accordance with the accounting principles generally accepted in the United States of America ("GAAP"), we present Contribution Margin (Loss) and Adjusted Earnings Before Interest Tax Depreciation and Amortization ("Adjusted EBITDA"), which are non-GAAP financial measures, as measures of our performance. The presentation of these non-GAAP financial measures is not intended to be considered in isolation from, or as a substitute for, or superior to, operating loss and or net income (loss) or any other performance measures derived in accordance with GAAP or as an alternative to net cash provided by operating activities or any other measures of our cash flows or liquidity.

    We use Contribution Margin (Loss) and Adjusted EBITDA to evaluate the performance of our operating segment. We believe that information about these non-GAAP financial measures assists investors by allowing them to evaluate changes in the operating results of our business separate from non-operational factors that affect operating income (loss) and net income (loss), thus providing insights into both operations and the other factors that affect reported results. Adjusted EBITDA is not calculated or presented in accordance with GAAP. A limitation of the use of Adjusted EBITDA as a performance measure is that it does not reflect the periodic costs of certain amortizing assets used in generating revenue in our business. Accordingly, Adjusted EBITDA should be considered in addition to, and not as a substitute for operating income (loss), net income (loss), and other measures of financial performance reported in accordance with GAAP. Furthermore, this measure may vary among other companies; thus, Adjusted EBITDA as presented herein may not be comparable to similarly titled measures of other companies.
      
    Contribution Margin (Loss) is defined as Revenue less Cost of Sales. Adjusted EBITDA is defined as earnings before interest, other (income) expense, income tax expense, depreciation and amortization and before (a) non-cash GAAP purchase accounting adjustments for certain deferred revenue and costs, (b) legal, accounting and other professional fees directly attributable to acquisition activity, (c) employee severance payments and third party professional fees directly attributable to acquisition or corporate realignment activities, (d) certain non-recurring expenses associated with legal settlements or reserves for legal settlements in the period that pertain to historical matters that existed at acquired companies prior to their purchase date and a one-time minimum guarantee to effectively terminate a live events distribution agreement post COVID-19, (e) depreciation and amortization (including goodwill impairment, if any), and (f) certain stock-based compensation expense. Management does not consider these costs to be indicative of our core operating results.

    With respect to projected full year 2024 and 2025 Adjusted EBITDA, a quantitative reconciliation is not available without unreasonable efforts due to the high variability, complexity and low visibility with respect to purchase accounting adjustments, acquisition-related charges and legal settlement reserves excluded from Adjusted EBITDA. We expect that the variability of these items to have a potentially unpredictable, and potentially significant, impact on our future GAAP financial results.

    For more information on these non-GAAP financial measures, please see the tables entitled “Reconciliation of Non-GAAP Measure to GAAP Measure” included at the end of this release.  

    LiveOne IR Contact:
    Liviakis Financial Communications, Inc
    (415) 389-4670
    john@liviakis.com

    Press Contact:
    LiveOne
    press@liveone.com



    Financial Information

    The tables below present financial results for the three months and nine months ended December 31, 2023 and 2022.


    LiveOne, Inc.     
    Consolidated Statements of Operations (Unaudited)
    (In thousands, except share and per share amounts)

      Three Months Ended
    December 31,
      Nine Months Ended
    December 31,
     
      2023   2022   2023   2022  
                  
    Revenue: $31,245   $27,309   $87,541   $74,063   
                      
    Operating expenses:                 
    Cost of sales  23,267    19,362    63,015    48,487   
    Sales and marketing  1,514    1,608    5,671    6,334   
    Product development  694    1,035    3,379    3,892   
    General and administrative  5,880    4,535    17,641    11,220   
    Impairment of intangible assets  115    -    115    1,356   
    Amortization of intangible assets  528    1,343    1,227    4,098   
    Total operating expenses  31,998    27,883    91,048    75,387   
    Loss from operations  (753)   (574)   (3,507)   (1,324)  
                      
    Other income (expense):                 
    Interest expense, net  (1,279)   (2,220)   (3,477)   (5,793)  
    Other income (expense)  (207)   257    (3,639)   2,523   
    Total other expense, net  (1,486)   (1,963)   (7,116)   (3,270)  
                      
    Loss before provision for income taxes  (2,239)   (2,537)   (10,623)   (4,594)  
                      
    Provision for income taxes  (15)   11    43    15   
    Net loss $(2,224)  $(2,548)  $(10,666)  $(4,609)  
    Net loss attributable to non-controlling interest  (307)   -    (654)   -   
    Net loss attributed to LiveOne   (1,917)  $(2,548)  $(10,012)  $(4,609)  
                      
    Net loss per share – basic and diluted $(0.03)  $(0.03)  $(0.14)  $(0.05)  
    Weighted average common shares – basic and diluted  87,745,892    85,585,117    87,335,348    84,009,003   


    LiveOne, Inc.
    Consolidated Balance Sheets (Unaudited)
    (In thousands)

      December 31,  March 31, 
      2023  2023  
    Assets    (Audited) 
    Current Assets      
    Cash and cash equivalents $6,248  $8,409  
    Restricted cash  205   240  
    Accounts receivable, net  16,057   13,658  
    Inventories  2,092   2,596  
    Prepaid expense and other current assets  1,557   2,823  
    Total Current Assets  26,159   27,726  
    Property and equipment, net  3,634   3,325  
    Goodwill  23,379   23,379  
    Intangible assets, net  12,536   11,035  
    Other assets  122   423  
    Total Assets $65,830  $65,888  
             
    Liabilities, Mezzanine Equity and Stockholders’ Equity (Deficit)        
    Current Liabilities        
    Accounts payable and accrued liabilities $23,748  $22,772  
    Accrued royalties  15,453   12,826  
    Notes payable, current portion  694   15  
    Deferred revenue  788   992  
    Senior secured line of credit  7,000   -  
    Bridge loan  -   4,726  
    Derivative liabilities  -   3,148  
    Total Current Liabilities  47,683   44,479  
    Senior secured line of credit, noncurrent  -   7,000  
    Notes payable, net  941   148  
    Lease liabilities, noncurrent  -   161  
    Derivative liabilities, noncurrent  279   376  
    Other long-term liabilities  7,406   9,578  
    Deferred income taxes  332   332  
    Total Liabilities  56,641   62,074  
             
    Commitments and Contingencies        
             
    Mezzanine Equity        
    Redeemable convertible preferred stock, $0.001 par value; 10,000,000 shares authorized; 5,000 shares issued and outstanding as of December 31, 2023 and March 31, 2023, respectively  4,933   4,827  
    Stockholders’ Equity (Deficit)        
    Preferred stock, $0.001 par value; 10,000,000 shares authorized; 18,604 and 16,177 shares issued and outstanding as of December 31, 2023 and March 31, 2023, respectively  18,604   16,177  
    Common stock, $0.001 par value; 500,000,000 shares authorized; 91,625,688 and 89,632,161 shares issued and outstanding, respectively  91   90  
    Additional paid in capital  216,445   209,151  
    Treasury stock  (3,863)  (2,162) 
    Accumulated deficit  (236,297)  (224,269 )
    Total stockholders’ deficit  (5,020)  (1,013 )
    Non-controlling interest  9,276   -  
    Total equity (deficit)  4,256   (1,013 )
    Total Liabilities, Mezzanine Equity and Stockholders’ Equity (Deficit) $65,830  $65,888  


    LiveOne, Inc.
    Reconciliation of Non-GAAP Measure to GAAP Measure
    Adjusted EBITDA* Reconciliation (Unaudited)
    (In thousands)

      Net Income
    (Loss)
      Depreciation and
    Amortization
      Stock-Based
    Compensation
      Non-
    Recurring
    Acquisition and
    Realignment
    Costs (1)
      Other
    (Income)
    Expense (2)
      (Benefit)
    Provision
    for Taxes
      Adjusted
    EBITDA*
     
    Three Months Ended December 31, 2023                     
    Operations – PodcastOne $(2,600 $372  $1,786  $86  $-  $-   $(356
    Operations – Slacker  5,127   749   (178)  116   972   -    6,786 
    Operations – Other  (3,148)  361   266   129   26   -    (2,366)
    Corporate  (1,603)  3   381   (5)  488   (15 )  (751)
    Total $(2,224 $1,485  $2,255  $326  $1,486  $(15 ) $3,,313 
                                 
    Three Months Ended December 31, 2022                            
    Operations – PodcastOne $(2,078) $86  $166  $-  $1,345  $-   $(481
    Operations – Slacker  6,837   2,084   182   102   284   -    9,489 
    Operations – Other  (5,154)  239   78   329   (470)  27    (4,951)
    Corporate  (2,153)  6   296   73   804   (16)   (990)
    Total $(2,548) $2,415  $722  $504  $1,963  $11   $3,067 


      Net Income
    (Loss)
      Depreciation and
    Amortization
      Stock-Based
    Compensation
      Non-
    Recurring
    Acquisition and
    Realignment
    Costs (1)
      Other
    (Income)
    Expense (2)
      (Benefit)
    Provision
    for Taxes
      Adjusted
    EBITDA*
     
    Nine Months Ended December 31, 2023                     
    Operations – PodcastOne $(13,683 $710  $2,724  $804   $9,850  $-   $405 
    Operations – Slacker  7,377   2,156   1,036   989    993   -    12,551 
    Operations – Other  136   789   478   394    (2,633)  -    (836)
    Corporate  (4,496)  13   1,611   (5)   (1,094  43    (3,928)
    Total $(10,666 $3,668  $5,849  $2,182   $7,116  $43   $8,192 
                                 
    Nine Months Ended December 31, 2022                            
    Operations – PodcastOne $(3,016) $241  $751  $-   $2,000  $-   $(24
    Operations – Slacker  10,349   6,025   622   193    1,227   -    18,416 
    Operations – Other  (5,297)  2,097   296   524    (2,564)  27    (4,917)
    Corporate  (6,645)  18   1,237   (1,245   2,607   (12)   (4,040)
    Total $(4,609) $8,381  $2,906  $(528  ) $3,270  $15   $9,435 


     (1) Other Non-Operating and Non-Recurring Costs include outside legal, accounting and other professional fees directly attributable to acquisition activity in the period, in addition to certain non-recurring expenses associated with legal settlements or reserves for legal settlements in the period that pertain to historical matters that existed at certain acquired companies prior to their purchase date and non-recurring employee severance payments and to a lesser extent, a one-time minimum guarantee to effectively terminate a live-event distribution agreement post COVID-19. 


     (2) Other (income) expense above primarily includes interest expense, net, change in derivative fair value and loss on extinguishment of debt. These are included in the statement of operations in other income (expense) and are an add back to net loss above in the reconciliation of Adjusted EBITDA* to loss.


     *See the definition of Adjusted EBITDA under “About Non-GAAP Financial Measures” within this release.

      

    LiveOne, Inc.
    Reconciliation of Non-GAAP Measure to GAAP Measure
    Contribution Margin* Reconciliation (Unaudited)
    (In thousands)

      Three Months Ended
    December 31,
      
      2023  2022  
           
    Revenue: $31,245  $27,309 
    Less:        
    Cost of sales  (23,267)  (19,362)
    Amortization of developed technology  (775)  (964)
          Gross Profit  7,203   6,983 
             
    Add back amortization of developed technology:  775   964  
    Contribution Margin* $7,978  $7,947  


      Nine Months Ended
    December 31,
      
      2023  2022  
           
    Revenue: $87,541  $74,063 
    Less:        
    Cost of sales  (63,015)  (48,487)
    Amortization of developed technology  (2,248)  (2,892)
          Gross Profit  22,278   22,684 
             
    Add back amortization of developed technology:  2,248   2,892  
    Contribution Margin* $24,526  $25,576  


     *See the definition of Contribution Margin under “About Non-GAAP Financial Measures” within this release.




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