LIVEONE, INC. - 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 at10:00 A.M. ET onThursday, February 8, 2024
LiveOne’s CEO and Chairman,
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 atDecember 31 , 2023.** - PodcastOne was ranked 10th in Podtrac’s Podcast Industry Top Publishers Rankings for
January 2024 with aU.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 thatLiveOne'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 | Nine Months Ended | |||||||||||||||||||
| 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,
Q3 Fiscal 2024 Operating Loss was
Q3 Fiscal 2024 Adjusted EBITDA* of
Capital expenditures for Q3 Fiscal 2024 totaled approximately
Conference Call and Webcast:
WHEN:
TIME:
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
About LiveOne, Inc.
Headquartered in
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
**Included in the total number of paid members for the reported periods are certain members which are the subject of a contractual dispute.
* 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
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.
(415) 389-4670
john@liviakis.com
Press Contact:
press@liveone.com
Financial Information
The tables below present financial results for the three months and nine months ended December 31, 2023 and 2022.
Consolidated Statements of Operations (Unaudited)
(In thousands, except share and per share amounts)
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||
| 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 | (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 | ||||||||||||||||||
Consolidated Balance Sheets (Unaudited)
(In thousands)
| 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 | |||||||
| 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, | 4,933 | 4,827 | |||||||
| Stockholders’ Equity (Deficit) | |||||||||
| Preferred stock, | 18,604 | 16,177 | |||||||
| Common stock, | 91 | 90 | |||||||
| Additional paid in capital | 216,445 | 209,151 | |||||||
| (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 | |||||
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 | |||||||||||||||||||||||||||||
| 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 | |||||||||||||||||||||||||||||
| 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 | ||||||||||||||||||||||||||||||
| 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 | ||||||||||||||||||||||||||||||
| 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. |
Reconciliation of Non-GAAP Measure to GAAP Measure
Contribution Margin* Reconciliation (Unaudited)
(In thousands)
| Three Months Ended | ||||||||||
| 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 | ||||||||||
| 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. |
2024 GlobeNewswire, Inc., source
