LIVX - Earnings call transcript Q3 2019

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Operator

Good day and welcome to the LiveXLive Media Third Quarter 2019 Earnings Conference Call and Webcast. All participants will be in listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note, this event is being recorded. I would now like to turn the conference over to Whitney Kukulka, Investor Relations. ahead. go Please

Whitney Kukulka

afternoon, call Good XXXX to financial LiveXLive December Thank the and third conference for XXXX. year quarter results XX, you. welcome of ending fiscal

could CEO; are Joining today’s you future based assumptions call call future Actual about reasons. the business. which that of statements statements those to differ would full-year and from subsequent Rob growth forecasts XXXX and are Company’s XX-K and the materially remind four Mike including these Please results actual statements, Form of on refer March that Ellin, like the on to from XX, of for me to the Zemetra, forward-looking the with include Report to call of cause SEC statements are our information a expectations, on and the Co-Founder made in for filings. on for These the some SEC Annual forward-looking, the involve I CFO. ended variety differ year are expected and today’s current the and uncertainties. XXXX this including limited in filings but not materially regarding for factors described may financial performance results LiveXLive risks and those discussed results Company’s and quarter

of only Importantly, this XX, information this time-sensitive conference the date of as contains is accurate that February XXXX. call call,

of undertake date management’s XX, responses questions obligation reflects the today only. not to except do or by law, for ir.livexlive.com. of posted the discussion to important And information the any this And content. financial at to to earnings non-GAAP reconciliations most GAAP of this after is will You in IR view following required visit of including our as you section encourage the Investor discussed February update on measures our website revise periodically The financial we comparable XXXX find release, your I as which Relations website call. measures today

to turn Ellin. Now, let Rob? over the call me Rob

Rob Ellin

joining Thanks us everyone for on call. today's

been has for Our transformative LiveXLive. third difficulty] quarter [technical

are so with and QX progress We this year. have the made our results thrilled we far

our we with launched including [technical partnership partnership of future And and quarter, difficulty] we partners, key in music iHeart bringing authentic our an [technical partnership voice expand AEG, the is we and an in Live zone. all as pop music, of to Media. LiveZone successfully of breadth LiveXLive with difficulty] [technical exciting development into our launching the live the -- and consumed. successfully change During live we extended is as globally LiveZone, the LiveXLive will Nation culture Insomniac, and for continued solidify others. events way music sportscenter all difficulty] and We the

communities The X communities, genres and audience, festival. a our support of That two-day is around from delivered we bands, social huge We’re events combination host, XX% audience, creating our viewership per our [ph]. increase million in and day. our X.X hosts in approximately views

we music reach posted quarter. metrics. we're X.X again influencers, financial aggregating successfully across the in and as well QX, esports stars. sports revenues, for and We but XX% only $X first now are as stars not delivered users. lifestyle in all music, content, reporting We superstars, the time million fashion, up We In in featuring million record active performances

XX% and events, views. we and festivals We high profile adding have with sequential today, ending Year-to-date, XX the approximately XX,XXX more than livestreamed have added of subscriber impressive representing as quarter XX growth. growth, attracting XXX,XXX, million global

diligently the focused more Cardi million Scott, And short-form on Post from cash managing in hours and by We've remain $XX.X program flow. of live modestly Rapper, XXX of pieces to Malone, this cash quarter Montana, Wayne, sheet B, icons Diplo, biggest We $XX.X in Travis livestreams content generated featured have artists Chance XXX content. and music the position performances the as world, original Mayer. over Our of our million. including such French increased balance than XXX John strengthening and our Lil

as leadership strategic Chief specifically M&A Development team, M&A. out and and industry urban focused with our original Nas our continue joined hop, swinging We already and us and genre and additional two program. We've in brings also a huge, unique managers, came as urban creators multiyear initiatives. original new and content unlocks gives hip curators creation, and hip a earned and XXX-degree Schulhof programming high Appeal with edge distribute on for David strengthen This Mass partnership Officer. of brand David culture experience lead partnership labels, and unique our create, content the content Ambassadors and has artists, Board added delivered members. will level produce hop and to partnerships relationships first world-class to the David and agents, opportunities.

founder include member Patrick credits His Games, Former investor of legend, Lionsgate, Land, the Locker. and and He knowledge at media most TV renowned the portfolio of mission Perfect, Entertainment. in as Wachsberger, as and CEO investor tremendous La Fund. The supported early our in bring of Ramin his experience recently Summit founder will and years a Picture Puritan spent Fidelity, our former board Twilight insight value Fidelity And manager and The Remain Puritan industry led Hunger and technology, lead CEO Chairman deep world billion Hurt and company. Fund And $XX our an to vision La and XX for last the LiveXLive. IPO. Arani. and

Before of quarter we dive key and expectations for our evolution first business. of I’ll the the principles LiveXLive, few into our reiterate

MTV. music ESPN create the frame us the to generation using and playbook heard next to industry our it apply You’ve business

with currently -- social modern leaders mobile technology creating partnering the network, live, and thought utilizing first live largest We music. in music are

music corner the brands, in as seamlessly and leveraging bring unify and delivery, watch livestreaming, to on accomplish carpet concerts allows apps the and of music through wherever next content of around goal Our revolution around bring This mission that to technologies to slate favorite favorite and including programming. simple, technology music AR this move highly the our to the to looking is together world to LiveXLive generation fans, and the music. artists by bands level, and and includes capitalize to fans live music their our At to is shows. award watched VR. red original is their scenes, fans, perform helping We a experience live festivals, and shareable listened backstage, world. entertainment industry, highest new such is our over-the-top at mobile full a interviews, around behind

the for ourselves we of the we to ourselves team of we leader live touched game, defined executives world music leadership very to thought be class a into $XX We authentic well live are voice surface unsurpassed and connections Netflix the of built a companies aims is as and world, us experience of to into the the where the and now billion for just We’ve XXXX global serve unify position Live have the in that Board come. Company fourth with ambitious and in today. head the music now going We're change multi-billion-dollar music. years is will industry. as And XXXX. company quarter

heart and over-the-top in well-positioned live streaming. are of demand the of and to on music the in capitalize We We're streaming. storm live global massive this right

sponsorships. these original pool Our music of will the believe content, more world, growth growth is partnerships around and continue exciting and our events anchored main offering traffic, in drive growing opportunities. We to strategy three objectives. largest viewership, priorities the creating subscriber Livestreaming, monetization

first on LiveXLive from XX with channels unique is to million of base available driving We In our million technology our livestreams achieved since XXXX Our subscriber users acquisition. XXX of in year, preparing additional now livestreams Slacker. consolidating Slacker for yet. to XX have best the tremendous of businesses, to programming programs. enable to job time, for over XXX,XXX and is XX the we up curated and impressions integrated difficulty] and the plan and done streamed launch VJ, Radio entire team has are We our the been to channels. we events and EBITDA XX% a changing integrating and grew focused product. third fiscal that platforms app QX, trajectory DJs users, quarter. the and over today the launch festivals profitability [technical program the as We've to over over XXX added Slacker’s in original

immersive around spend significant and to to listen, subscribers, extending technology ability to advancements office, the audio, to share products Fans Slacker on and Slacker around chat, experience a TVs, globally. most communities. around reinvents create adding cutting fans genres launched creating your We adding platform, of the OTT, to basis. create features to have social starting drive our our reach car, a buy in and create life our allowing and made in layering video on and between, technology newest audience LiveXLive our giving daily social time Smart streaming a in the social Global artists, consumer from consumer calling, your home sales. across connecting our in reach festivals, We Samsung We're over-the-top a your Studio, engaged merchandise merchandise experience launched We sponsorship, which they quarter. XX the can more and to enhancing on music. We're devices Slacker anywhere feature over music users with million to the of consumer share effectively communities the app

first XXX VR to experience Samsung with collaborated also our segment We deliver [indiscernible].

onsite music quarter. world around at Bay opportunity in the experience music few LiveZone Growing Rolling unlocks future than and Kia programs, of brands, advertisers a months representing content Area successfully which with with clock and pre festivals and LiveZone the key helped artists, and X.X content. live We It LiveZone, streamed million rolling only and our to other more Nas, a exclusive also over the and this with music provided The Samsung. and culture launch XXX% post when monetization the developing We’ve music from our further reporting the around opportunities. industry. reach activation game last increase over LiveZone to before Loud the slate and any eight partners correspondents fans will that interviews Second, of be a Yachty. correspondent LiveXLive for changer show and livestreams, athletes, network. demonstrated XX compared deliver differentiate event opportunities for coverage enables out the of original sportscenter anchors as with featured our initiatives, including of had and unlocking has Lil

initiative help exciting is Carti, curating are XCX, of top some LiveXLive Charli as -- Nas, drive for engagement Presents promote in Chromeo, musical events our Whack. Playboi entertainments user largest has Another across brand Ross, world original, the more Rick the featured to our world. Presents. such the LiveXLive own talents us in These events and Tierra

use live morning, turning across LiveXLive press this Immediately Grammys, event saw in hundreds we global event industry for our X.X our release the you media night. event event. fifth following VIP livestreamed of million platform the packed music insiders a As a produced Sunday into

third opportunities partnerships. priority sponsorship Our strategic is and advancing

Rolling key first VR we I festival With experience. running immersive As Angeles. Loud Los our Kia’s a with point partnerships livestreamed and Samsung. brand Fortune Kia in We Loud we on and debuted XXX mentioned Rolling fully companies XXX Samsung sponsor initiative, delivered earlier,

maintained best and As live its and music on curators LiveXLive the independence with efforts partnering has focused programmers.

utilize creating We gave with out build of fans lineup events alternative direct listeners, an opportunity iHeartMedia, less MTV minute alternative names with iHeart successfully We premier XXX livestream release. John with us tickets on million Bob the very this in the VHX. created year streamed We and brands. rock biggest any exciting a with of features both have our nationwide Ego. now ALTer Sykes, expanded selling music and the to partnership ALTer than in the device. Pittman giving help Ego, opportunity a the experts our is to who of partnership as a

publishers, whole a in and slate to award that music content concerts, overall most personalities neutral more To base partner and now pilots, new up, sum original stream the and world, importantly music festivals, biggest from content creating the and of promoters, our view parties, the labels, pieces. LiveXLive have artists position independent venues, music and brand for shows, revenue in lifestyle industry has allowed the the including industry a with even can managers We industry. a our user opportunity

and over creates quality that music modernization services engaged and are years, opportunities We or and is in stimulates which We geography, content by beyond genre audience. is more future our last growth. the engagement aggregating creating available believe XX sponsorship. language and the content audience, an not Music that opportunity best creating subscription drive limited universal the

We’re in the this haul. game for long

-term long goals Our same. remain the

X.X platform. which XX First, we growing years, on paying each the on achieve believe XXXX. we plan a have million to to paid surpassed continue to double-digit will march subscribers, and of our we're XXX,XXX subscribers five X our quarter, half at million, users over rates monthly within We fiscal expect we least first already million and

and we can we a year. stream over Second, events believe XXX festivals a

stream events next we upping now and will year for XX year. stream this our next We over and expect year are XX number to

Third, launch hours continue days we closer that XX goal. of aired a our expect us the to day, expand to have progress to We're Fourth, enough making a footprint all across content week. believe here platforms. brings we and strong LiveZone distribution digital seven

the we're interested. walk the to to set detail. always Facebook, JMP hand investors We Mike years. off look Zemetra to Thank quarter upcoming third We to have now to add open at YouTube, Twitch, our be continue have Then, on distribution Technology across that through you. to partnered XXth, plus going XX road we’ll expectations this Tencent more San platforms analysts for and QX at happy in for We’ll with Francisco million and forward I'm meetings events. X.X February Dailymotion, Conference and up financial and results to presenting anyone billion in up seeing to on questions.

Mike Zemetra

Thank you, Great. Rob.

$X fiscal $X.X the our livestreams XXXX of record QX the with second of results, loss including during continued of event XXXX and adjusted and subscriber strong half operating revenue quarter. million, We million,

our on year-over-year, Given quarter-over-quarter my up and to to quarter-over-quarter of paid and subscribers remarks. more QX the commentary advertising QX consolidated our QX history focus due lesser compared $X $X in our loss prepared compared growth year driven of $X.X QX with versus get from performance XXXX. by offset prior quarter-over-quarter $X quarter-over-quarter from coupled of revenue million, XXXX, driven The during in on will across expanded margin was operating million I discussed in a adjusted QX growth in deeper sequential consolidated into margin extent to subscription million million growth lack the drivers the improvement principally was $X.X margins as produced to operating events $X.X improvement a music XXXX. will XQ previously slightly initiatives driven which the XXXX. million $X.X million increased business QX livestream overall sequential expansion million was from our by QX was contribution million, licensing. quarter. improvement our The $X.X expenses, by of operations, continue QX improved in and in XX% revenue by lower third loss operating quarter-over-quarter was largely specifically was team to versus as quarter, in my financial QX. later

During QX quarter in costs. developed each million software we and also approximately internally XXXX, $X.X capitalized QX of

divisions. financial corporate our Now, performance to discuss like I across operations the would and music

Turning music. to

administrative a with Our operations, music and costs. sales, internet along product our general of livestream including operations and consist marketing radio audio services and and development, to extent, our certain lesser

to subscribers growth and advertising discussed, largely due licensing from of quarter-over-quarter. quarter-over-quarter XXXX, previously our was As across revenue XX% QX and our up $X revenue QX million paid

to in the subscription our growth like revenue. would discuss I First,

operations driven as million this was services. During strength which paid quarterly XXXX, paid paid American in business, QX QX North generated XXX,XXX music revenue subscribers, from and compared The XX,XXX increased across paid $X.X We Tesla was XXX,XXX XX% or BXB $X.X million up subscribers subscribers consumer-driven in from telecom a increase ended platform. additions also consumer in net our our of providers with music the by quarter-over-quarter. a major subscribers. XX% our QX subscription QX, XX% and ending across of part in increase subscription improvement sequential in Driving to net paid improvement our includes

impressions campaigns to including events our leveraging grow continuing since We XXX,XXX live XXXX. from today, base. increased in invest to XXX,XXX subscriber paid further XX% subscribers have online March to or paid XXX,XXX Through any XX, by net marketing from are a

We paid throughout continue remainder growth to confident in subscriber our remain XXXX. the fiscal

revenue. our Next, like growth advertising in and would licensing the I talk discuss -- to

QX, $X.X Samsung. increase and licensing Kia branded was by in XX% $X.X from million in which up During QX. included advertising operations million our QX, music in and partnerships The largely driven revenue, generated new

sponsored Samsung and reality Angeles. us festival virtual in of our partnered to During Kia Rolling And Samsung to the at virtual launch reality QX, long-term devices. We VR value more with sportscenter hope the Loud Los across announce believe and truly in similar music the livestream forward. LiveZone, and of moving exciting music partnerships

contribution improved a versus with was million margin of QX growth $X.X business livestream driven from QX a QX. our Our QX mix coupled paid $X.X events and versus was improvement quarter-over-quarter $X.X subscription million lower XXXX. in The the by loss margins sequential number of million of of in

contribution As to subscription approximately in XX% period. are of other improved a significantly with X.XX more margin This XX% QX. subscribers, subscription accounting in our percentage an benefit services, by BXB a business plus percentage assessment recorded revenue, from onetime by higher which points the a profitable radio was across and from mix our in of driven coupled QX generally versus

live million versus compared operations previously $X.X the driven subscription margin Consistent X.XX QX county quarter-over-quarter $X.X adjusted XX% operations margins QX. Moreover, produce million for XXXX. produce in loss to improvement production to music the of music in was incurred QX points $X.X in cost adjustment, QX of events. approximately to we as eight was event closer QX with million festivals. improvement our an average costs by QX largely QX. QX to six was QX contribution events operating produce $X.X to $X.X discussed was versus a live live increase Excluding or The million from percentage in and million

to corporate. Turning

legal the and Company, supporting finance, corporate executive was other functions QX. $X.X public with company and QX at QX and principally support corporate million loss to division operating functions. including in as consistent as that compared initiatives Our adjusted million $X.X entire consists general of driven administrative such areas

Now, expenses to our trends I would like in quarter-over-quarter. discuss operating the

noncash million operating QX $X.X certain QX $X.X newer quarter-over-quarter related QX, XXXX. an million compliance QX increase with The XXXX fees, company quarter-over-quarter. to million in stock-based expense, due Excluding higher of and increase expenses $X.X in versus our $X.X and higher to coupled QX initiative. support of compensation, or to XX% depreciation amortization million million costs operating principally expenses professional in in growth, largely nonrecurring personnel $X.X were public was

goodwill operating quarter-over-quarter. the nonrecurring XXXX with associated million in compensation intangible The and noncash latter QX. which resulted acquisition, amortization $X.X $X the amortization was decreased of to and purchase of accounting adjustments December stock-based to approximately reverse finalization by identified our largely Our of accounting from certain depreciation expense, and expenses periods required Slacker assets. in which prior driven This million us expense

in The net $X.X by million period. our by in $X.X ended The QX activities from cash in increase driven quarter-over-quarter of at to improvement working the by from $XX.X $X.X net cash was $XX.X million payables our our offset quarter-over-quarter QX. loss Turning million of our driven with of cash savings adjusted proceeds improved by operations cash investing principally million net XXXX with QX coupled of driven balance from outflows quarter-over-quarter, QX cash ending capital operating management the largely We from of XXXX. sheet. net operations million, up in largely by active

to on a I Now, like you items. few additional update would

by $X.X Of approximately debentures potential our approximately convertible to-date to for secured As the outside of outstanding. the we X.X purchase end senior We and million million XXXX. underlying quarter XX, agreement In adventures XX.X shares million funding financing and our February in at net common approximately approximately million fees, XXXX, the we XX common in proceeds legal stock of XXXX, original of today amended our XX.X notes. warrants million aggregate, received February to total increase had X.X December XX.XX% outstanding discount, and with securities million to versus principal also after the us bringing banker issue XXXX, X.X unsecured million. secured XXX,XXX convertible QX ended was

a is today, total outstanding. XX.X of As million convertible secured of debentures

guidance. to Turning

to XX or XX full-year guidance operating adjusting previous communications, fiscal Revenue million the million; reiterating million. are Consistent million; We $XX.X XXXX. of and loss our CapEx $X follows: of range expect in to with XXXX we $XX from events livestream $XX X as the of to festivals

a to like we the will out upcoming would I presenting point few conferences, in Lastly, quarter. at, be

able California. will at The go concludes XXth which Brian at be instructions] Rob As XXst first Carlton California. at like we the the Laguna San remarks. the XXXX Global question Q&A. the Kinstlinger Conference, March Conference, we Annual XXth JMP now ahead. line also to Francisco, prepared on mentioned, be Roth which up from be my through would at take Ritz the will open for in Securities will And presenting comes Niguel, We the Please [Operator held Carlton, February XX Ritz with Alliance Partners. That place

Brian Kinstlinger

expecting guys. on Hi, subscriber implied in of current much. a is advertising and sequential, bit assume the revenue guidance so pickup revenue or growth, slower little I nine-monthly fourth which significant Thanks subscriptions. Based the you’re quarter from

are, Samsung? you like about have those or Kia sources whether a what talk can coming So, new sponsors and you on

Rob Ellin

Yes.

So, Brian. cars. continued with there It’s a We're XX our in other question. Tesla. the combination now Thanks should be for growth combination, of

Mike We’re bit be led partnerships similar will little in and what a to to us XX AT&T have States carrier in give saw to opportunity walk and with every effect to, the well see an Kia we other that sponsors, but a RFPs as ago. more these through very years hope as United Samsung domino’s and soon, with than in detail, ESPN

it's first to that, two in, Slacker. companies we've come XX time party. to start drove With exciting that As we impressions sponsors join XXX to see Fortune articulated the million those also

of history funnel no at was we filling company. we're the there We’ve just Slacker. acquired time for profitable turned EBITDA it, in funnel. around. first when So, the And It's it that the now

covert we a it's can million just staggering X% them, continue of And going to So, small those. growth. hope that XX If of percentage pretty to is convert grow. going we to be to

to we’ve know, our from raised subscribers guidance XX,XXX month you to a XX,XXX. XX,XXX As

have want may do near raise number anything that? we Mike, future, add again. to So, to to you in the very that

Mike Zemetra

look I up RFPs the dollar absolute back that we just quarter of our if say XXX%. an mean, last at over Yes. versus number XXX%, on I’ll today, basis is

while we're we like running. the in stages the in side, but advertising still of definitely So, -- the hit promotional we not and feel subscription ground early subscription,

So, we feel good.

Brian Kinstlinger

the So, quarter? should in bigger a quarter current advertisers have sequential growth

Rob Ellin

timing, stages [ph] we're in always still I good the we but early TBD, about really mean, it. feel

Brian Kinstlinger

And then, extending months the discussed making? can year Do months away? it you progress that? talk with festivals, about -- What think six major you're on replay labels, about you of a that do you the record think your the We've rights. we three are away, that are thoughts away, is

Rob Ellin

Great Yes. question.

off tremendous middle made [indiscernible] the app. And we So, launch of May. April progress It to we're that that. to that shipped stated in expect on and fully we going in launch will with be our we to

So, app first in publically But place to we going launch more of we’re of with app partnerships audio transformative, time hope our the those have and for we detail, the in across the previously. much that, the video. be goes fully that all have is to And from app. immersive generation it'll next that

the while everyone and the genres buy artists, around keep your your for buy watching, ability audience between ever, first communities app, engaged. festivals. to and home from as full part, simultaneously the So, have as you well chat, message the listening or in create the t-shirt time and And you're

Brian Kinstlinger

app, new maximize points? And the similar you price to the points a so you then, question, can Can for two-part you Slacker adoption? talk the one. Last price that are marketing, expect about

Rob Ellin

we're it these the plus -- points. it Slacker right? disclosed What Plus, [indiscernible] chat think But the the price publicly has haven’t or Slacker, slack. live message, is now be is you generation really including to similar be we of to will Slacker very ability that taking become doing next all So, The of we're what ability, original events, to able effectively, Plus can Slacker which [indiscernible] discuss.

price be to from and points a the than to could similar. even even that element that. bit higher little premium X.XX we So, expect there'll an be go go We'll

Brian Kinstlinger

was part ad the ad maximize the to sorry other Is of that be question. And the campaign adoption? some going campaign, to there major

Rob Ellin

Absolutely.

parts as that you’ve is great the by audience driven the festivals. watching, these of one Brian, So, this, been about have massive been

marketing small for X.X There alone of this. And have percentage the So, we these a billion drive to one just see for already. own up of have luxury tools of you'll Slacker, year, significant we many people. through of we of We have the And audiences. going a start a in of initiatives for Day well potential the graph marketing just greatest the technology consumer social we studies social can fan have course, propositions are XX graph. We base the reach that festivals that this that launches artists. built of that move we Valentine's out is then, across those oriented as as new our all we different that is

gap. So, we’re starting to generation next press that button, even the previously to

Operator

ahead. Ron next with Securities. JMP go question The Josey from Please comes

Ron Josey

you I two new with the then repeat can picture wasn't integration? something I the questions. Rob, but maybe heard timing and follow-ups May just mid the two sure. and in bigger app I April on Just think

maybe that and If would the you can just repeat out that helpful. be partnership there,

Rob Ellin

Sure.

latest the is So, other as biggest and right EDC so April launch again exciting really you the Apple, music of to be to many festival to it have the for events the of deliver and from that middle May right by the know, the includes it around expectation season, world. XXth. deliver May we lineup And around a in

Ron Josey

or some clear, more maybe info to new it's not LiveXLive integration everything or is a have? app so on maybe be environment, app, new would Slacker Slacker, And is two-app on the with just what this this

Rob Ellin

Sure.

done as additional job So, look costs at all Slacker going, of to such $X.X what we building where our publically billion. you brand. of stated any Slacker sold Disney technology, and really which BAM, is like that has we're without one going will to is can integrate, become Slacker is a And magnificent out which

app have right across the YouTube We with is now capabilities Amazon, We’ve TV. our partnered Roku, and Apple but Facebook. Twitch and

So, to around have the capabilities the we this world. deliver really

Ron Josey

new capabilities. the have would app And those

we think about Could ‘XX, I all one bigger maybe could coming said you festivals when Mike of next out, advertising just talk the it this festivals three the then, is in years maybe these us one you growth fiscal maybe in sort think questions year get -- AEG, And growth festival you you one you if But three now do fiscal Insomniac year is out new then, of this the where so, and you. is going year. years, XX from? are one or to then picture side? last and And to And perhaps from is up advertising or iHeart of come next Rob, I going have subscription maybe just picture, side, because past the then, Is for And Mike. the the is, that's follow-up, individual holders? that Okay. the XX where subscription? live bigger help understand to continue

Rob Ellin

Yes.

-- we bit, So, little as a a you sated guys to between read minimum, the XX right. lines

Insomniac, X over they If you read XX year. to of to a events, events start to that but it’s with we’ve between they’re like lines, them, add grow But this the going committed to do seven will that minimum continue right. to and only X another

announced theaters. so one our and the far. successful dance We're staggering event with are amount being the the launch So, only Mexico. well Mexico as Japan, But, do an EDC, music one content to from world, a a just super of biggest which first ever both we've as in we it being was iHeart, have hop of City. China, festival hip pieces opportunity two doing festivals,

greatly. we're and confident going are And expand across hopeful board. it's we to So, really partnership our the been that

each of independent of add promoters festivals to the and in continue continue festivals music the world. We from major the

Ron Josey

just one. then, And one Mike, last maybe

million quarter the said think, cash ending $XX.X equivalents. in I with you

You that. debt. but quarter didn't coming I think point was X on manage tables point bit did management. cash this tables and I still think said management? see balance, there I you cash the questions think, -- this just how something flow million little about active add, X in quarter, I you get that you do talk active I Can and and a you

you. that Thank what So, mean? does

Mike Zemetra

sure. Yes,

out or part went I in if derived where that said million financing never position our you know at CapEx during So, because quarter. cash been prepared $X.X about continue $X.X question? quarter, had that about from capital -- the look you and we that real of can driven in feel important million my And But, positive the improved the now. remarks, we our actively million did they from, the actively was year adjusted we've in Does your loss We're good managing going the of to flow on -- a sequentially operating manage it's take to go. our payables. debt of driven answer during from markets then, $X and from the of operations part that was additional where right us. net We that during And to with period. the cash some was cash,

Ron Josey

Yes.

how is so those like are how think, I when due I’ll And in queue. for that managing guess? I the Thank or go cause does manage you. payables, that that actively like -- -- do a the you back

Mike Zemetra

Yes.

maybe other cash, in times, of to be upfront instead XXX% we’ll the acquisition. ton payables negotiating we Sometimes for inherited paying stock. then, we negotiate And portions of a Slacker -- in will

really trying those. just to it's manage timing. we're constantly And the managing so, And

Rob Ellin

is this Mike being about it on front. humble

be clear, to million is addition Just $XX.X million. to the the $X

JP $XX our know [ph] line is which a done convertible we've we've share. is increased is So, which you date

So debt interest us, it’s of business. holders almost shows for support the of high our it a and rate the

only more IPO. have remarkable we So, -- pretty cash actually the than million. closed when $XX.X The IPO we today was

that million we're $X cash the additional end over post of with So, million currently quarter. today $XX in of the now as

Operator

Please [Operator instructions] question comes ahead. from go with next Wainwright. Dede H.C. The Kevin

Kevin Dede

Good included me, Rob, the just That low least pop-up. implies the pretty the make end, big And a assumptions meeting It’s of sure you other expectations just maybe and Dede. I sequential I festivals underlying sure help that want straight. at strong guidance got number quarter, Mike, make you’re right. understand afternoon, Kevin guys. to I've to you've

Rob Ellin

So, going we do we've XX year. right; announced that events, we’re for this to stated XX

Charli us. weekend. spectacular for number first with this a our This than live events it Rick drove a our another fifth we is event had did cost an We streams. X.X had million level Presents -- XCX amazing way LiveXLive of up line from lower So, on a and Ross, events, weekend

do going events. those to we're continue So, to

a minimum five of expect end. to So, we of them before do year

Kevin Dede

Okay.

Mike Zemetra

Kevin. Hey,

RFPs sponsorship up you with advertising pipeline sure heard of speaking if are they Just in again, dollars. look to am you when not at were absolute I the if the front, reiterate, on and we But, quarter-over-quarter, Brian. XXX%

more to of pick-up pretty going in outreach, of quarter-over-quarter. in life, in that again, the as then, we're more the like middle see -- to eyeballs, that I’ve quarter-over-quarter. to the early, And revenue terms engaging terms in while So, substantially we first more events, right, sequentially start innings, build advertisers and of still seen start increase never my you're an

the those The and in December, is lot part XX,XXX that that in, right. kicked kicked other a subscribers, in -- of

starting churn just with that obviously customers breakage the to breakage starting and to -- see to such from no because have and free to we’re Tesla, kick-in we very just churn revenues partnership have are unique those and So, the those [ph]. little a

grow So, with the you're going to topline your to revenues, continue subscription well. as

Kevin Dede

Okay.

a I I of point. losing was of the So, just revenue of XXX,XXX? Was What your in I'm numbers. the I bit outside roughly Brian. the September commentary Mike, what, quarter? the hear think, music little Yes, appreciate But, could

Mike Zemetra

about and talking advertising You're sponsorship?

Kevin Dede

Yes.

Mike Zemetra

QX. $XXX,XXX and -- $XXX,XXX $XXX,XXX and was in in QX, sorry it QX, in

Kevin Dede

Okay.

Mike Zemetra

$X.X QX revenue subscription QX. was in $X.X then, in And it and about was million million

Kevin Dede

in March So, you've outside six is help growth all what the your of festivals -- that you, point got told, what push your level of subscription will given that quarter? that actually

Mike Zemetra

six We quarter, the had that's in correct. third festivals

Kevin Dede

your what's and Six for hit number third, to in XX? the the the fourth,

Mike Zemetra

stated to of the stream So, end we’ve fully then, that we XX year. we’ve the by publicly XX events expect today. streamed of as And

Rob Ellin

[indiscernible] somewhere this So, you between at quarter. look can

to Just simplify.

Kevin Dede

X to X?

Rob Ellin

already We've two. Yes. done

Kevin Dede

efficiencies was And each given brought more on Rob, much scale Do there's hard sort mean LiveZone. adding and then, guess you're great I so And some festival another of in that point. you that do, hoping granting could with especially more, elaborate you you promotion? I you it's I imagine to much so to this. think mean, up I concert

of So, kind talk you just could to that little bit?

Rob Ellin

I’ve that We Chief [technical -- should Revenue our and before. Absolutely. discussed We’ve And haven’t yet. a rushed you hired difficulty] sales Officer big our really three we that difficulty] selling six started that months ticket talented which And just really right, belief ago. is team very team for But, just announced members even items. now, we the we hired sales earlier. [technical individual team have festivals our and reason have humble

we're the plus we that hop, genres, in they depending [technical hop, can selling what So, festivals, to sell XX is we've going hip They're we done so [technical on looking difficulty] which going all sponsors the and Mike selling right dramatically entire are sell has partners believe across hip conversations that that all or platform of to content [technical difficulty] real is we've have now. much seen articulated, RFPs And real audience about what increased there and for. now have the is, as having just difficulty].

Kevin Dede

a I'd couple on already, is partners that Well, guess, Rob. of real argue, just you extra you're what of wondering festival have given amount the about side, providing. the expense promotion services I'm the I

Rob Ellin

have And competing we've more festivals mean, going a ability truck more of content, of talked close I our they competitors, no because camera [technical is as are with else they before, down our but of one except [technical have companies, as our we’ve this. for And negotiate cost difficulty]. all doing difficulty]. right economies out about and even reasons; part we to there are we exciting this scale; of really the few knocked [indiscernible] as that's multiple still negotiate the companies, to going had we is who down

take launch costs deals keep more even our us cost give been those that I in-house that. And able as generation well as brought app, team we it’s we've in the down. to down built. next think all we’ve as going members to technology of We our So, negotiate advantages to room to

Kevin Dede

start happens know, -- concerts mean, out enough. I what Fair are But, and that Mexico, when you streaming you the talking think especially, U.S.? I threw Rob. Japan. Thanks about outside Okay. I when

Rob Ellin

Yes.

the Montreux We've Brazil sorry, streaming in streamed we years, We’ve from already, stream already, So, festivals -- Switzerland, Kevin. visiting, we’ve festivals Jazz well. as been four Paleo last we've Switzerland from Ron, four streamed from Brazil, four world. the all we streamed I'm like streamed over from streamed we

events in part of staggering very is And in cases the biggest music with a So, our for cost amount the Global. the way world. over reason Rock that an partnership most example is Rio a in we've And the beauty got of is has lower. there

streaming The world. as well Montreux as of than entire for the event. Paleo. rest Brazil; very we And the alone exists rights structure is Global our is Jazz with get So the cost are for we same lower the with when

Operator

ahead. The comes Canaccord go next Moldow from question Genuity. with Please Austin

Austin Moldow

your at have main the Thanks your original sort of questions. Hi. intersection a I my and platforms, of for Slacker kind question music programming, taking asset. of

addressable seen in any after we've do and any I you go investments industry have the of in the the late as what acquisitions size Given and podcast podcast way? with plans listeners non-music of market, to wonder live to of seem ones shows I doing of least a touring there's way the for to that a after uniquely listened podcasts, lot if lot and that given at to a you, go that nowadays. be

Rob Ellin

Yes. great It's a question.

that, certainly It Altman. really thing. original brilliantly is overblown the very So, And announced storyline show, way to currently think and in. Dollar I these the show, really original the it’s us I unique Josh And which original Listing. And be the roaster. from has similar podcasts we are the and whether our David or think is our documentary world. Whether programming. it’s are TV a does that interesting what end, called the the objective about. like partnership been team programming is is program game content, Million that the with Josh and a we've the added podcasts podcasts for to critical that very a whether and trying a are a and like another to whether getting a with is we to announced just our movie, it's authentic it’s team music, to leader have the And short-form little just about Schulhof to experts find in we to add podcast, best a have added thought podcast, between Patrick, real voice be tool

Austin Moldow

given of kind wondering I'm philosophy just more subscription my of you monetizing the viewing I of but around forward, launching And for media opportunity subscribers the question biggest think what versus and your I'm your and what's going think companies know a their a was is some what how around wondering internet you in it. ad-supported commentary of lot the happened viewing. viewing number just with of biggest features? last -- the ad-supported think OTT about alone lot own Got is, you you January

Rob Ellin

this of this the we’re part one the is, Well, in beauty right. only of lane,

ones it head are head, going been And only doing is the So, have against as the luxurious only they’re other the for in this that doing everybody and music. we’re to each years. XX that one competing is we’re

we’re I so that we programming. think have much uniquely original because So, positioned

articulated to the next the EDC EDC generation messaging right. is way Our from revenue launch right. these alone, all higher, is drove tested and app, including our But, is we merge and from them of pieces we’ve XX,XXX marketing sponsorship. people of as just as [ph] part of are our model merchandise, XX% and Mike subscription, the About chat coming XX% of we site, uniqueness

likes to call octopus. XX-legged Mike it So, the

VOD events, difficulty] drive, We difficulty] to drive the own, more of subscription, percentage well audience give more add to to amount to staggering is as bigger convert end that want ticket sponsors, that the Do different [technical anything the we bigger of the we And revenue pictures amazing a as traffic to streams sales that going difficulty] data. multiple and this us offer. then, the at you [technical that well Mike? the [technical here better as of have day,

Mike Zemetra

XX%-XX%. mentioned, model. Yes. Today, as at believers heavy we're I mean, I in think, we're the Rob subscription

in I maybe But, always to there of sponsorship side. kind XX%, there's balance you're think, I interplay. they're the on long-term going XX% the think is where view a the

are age being and just models. day the think I unilateral

or bring advertising to to want want don't listeners who advertising. so, going you're free, and as on for as mind paid listen hearing seeing listeners well And to they

of combination. be swivel will some mix exciting. we as be always those And it'll around think I different So, more types channels,

Operator

And our Please Quantum Boone ahead. last go Andrew question with today comes from Capital.

Andrew Boone

bundles you just well for on the as of kind a well telecom taking had questions. in as quarter. as adds the I Understood your net Tesla. Thanks that guys. one guys as quick strong Hi, highlighted marketing

your forward going parse you to right, guys terms of Thank trying much Just how that looks that, top of and what control you. in funnel. like

Rob Ellin

T-Mobile, So, space added between Coachella [ph]. Coachella the $X now YouTube with has Coachella million, X we amount and is probably that viewers about this somewhere what's same And had EDC, in [ph] three-way just year. reupped -- the that. deal and deal they right until million that interesting for between their paid XX up in

ready. are the and So, that seeing sponsors signs We're seen RFPs. you’ve the indications the

the So, that a of excitement beginning the is coming of revolution the And space. this beginning. around in But, this is it. is beginning all just

Mike Zemetra

can Maybe I help.

guidance called dialing we're in North the terms large And of is entity some dialing we today, or terms very it we because there's top car. up funnel in every public with more a I on by plenty growing American terms how we a of of spending can much control, out acquiring and I and got wonderful control either in Tesla. outlook subscribers in that of and terms much we subs. And relationship we're think, there, have have the down of it that having pretty -- cash, obviously We're of In that, not we how mean, -- in feel confident. visibility

visibility. think I have So, we good pretty

in happen super launching be season, May. Rob approaching to we're in in of we're about process terms that. be flagship will planning to festival of we're the product mentioned, going our new of going that marketing As kick-off and how really the at we're excited and which And

Andrew Boone

Rob’s channel me organic half? coming like is in XX,XXX through point Can December If kind sales, call Tesla non-bundled it of a low-single-digits December. in to terms and more at were that of is look help or of terms validate you just I

what's think were I backend the what in like, right how I quarter, know versus in do now? You guys You loaded about model that my mean?

Mike Zemetra

Yes.

added first way month, net year the quarter; last best we the off quarter by think subscribers per quarter, added is do it start I XX,XXX. second we we XX,XXX; the XX,XXX adding in So, the to

an continue we the we’re flagship we to this that next momentum I related year, will And growth, throughout then, year. acceleration going launching. product as to to into think, anticipate be largely head remainder there of this be of

Rob Ellin

additional first million And driven over We're that his XXX from we'll we confident we and by adding channels is impressions there, X-million-subscriber on others, plus continued you time combination number. that to subscribers. Slacker watch to channels, the drive Yes. over the traffic see paid that highly hit, Josh X on gave is Tesla, launching number confident Nas own this channels, mid-year, LiveXLive of to very announcement the Altman channel Slacker, that including being of some your the are that feeling

Operator

I'd any back turn this and gentlemen, the remarks. like for concludes Rob conference our session. to over Ladies question-and-answer closing to Ellin

Rob Ellin

have just started transformative and music our I that is thank to really want This the to move mission for quarter network. social everyone. Company. live Yes. towards We really exciting

experience best talk ourselves events together, And brings amount we great about fully positioned it. have close partner these Facebook, because as and than and we this, music; how a with house. them consumer grew to this have to the them Live As them this Insomniac at fast in platform, Nation no one And to that There partnering build they grow as there's the no that with about that and seat gives think from a live a a you we those aspect. together. communities We’ve doing music we’ll iHeart, on to immersive like of lane luxury tremendous build first with be social AEG, universal language. and is partners we is better opportunity the in of

of So, -- prouder couldn't team. team my I again, be my

look grow next to you. with couple forward quarters of continue the the We team of and to we all

Operator

for now is you conference concluded. Thank The presentation. today's attending

disconnect. may now You

LiveOne (LVO) 13 Feb 192019 Q3 Earnings call transcript