LIVX - Earnings call transcript Q1 2020

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Operator

Good day, and welcome to LiveXLive Media Q1 2020 Earnings Conference Call and Webcast. All participants will be in a listen-only mode. [Operator Instruction] After today's presentation, there'll be an opportunity to ask questions. [Operator Instruction] Please note, this event is being recorded.

I would now like to turn the conference over to Emily Greenstein, Investor Relations. ahead. go Please

Emily Greenstein

welcome update and fiscal Media's results financial XXXX Good call to for business XXXX. conference June of the and ended morning, XX, LiveXLive first year quarter

Ellin, me CEO CFO. Joining call today's are and and Mike on Chairman; Zemetra, Rob

remind and like some that regarding risks statements including in uncertainties. assumptions today's that to made based on include of and These not statements are involve XXXX the forward-looking the I of are statements limited and but current on LiveXLive you growth results would expected future the call, full performance expectations, to are the year forecasts fiscal future to business. and Media for

refer may discussed XXXX XX-K differ on SEC SEC on from materially those year with ended statements, differ which Annual from for these for filings. forward-looking XX, in Report with those described information results about Company's a cause and materially to our reasons. for subsequent results the to XX, our actual factors the XXXX filings call filed Actual in Please could the this variety Form including March June of SEC

August of Importantly, contains accurate XXXX. as information this time the X, call, date that this only of is sensitive call conference

Investor visit to You content. important website the in you financial our IR measures is at financial the which encourage will discussed ir.livexlive.com Company's we periodically Company's measures reconciliations Relations non-GAAP most website find on posted today of and to comparable GAAP the earnings for release,

required to of after revise we not date questions, information this The except X, view only as law, following management's the call. of do reflects as August your obligation XXXX this update to any responses today, and undertake or discussion, including by

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

Robert Ellin

started very much, XXXX our fiscal out great We on for you call. momentum. us Emily. with Thank today's joining everyone, Thanks,

public company first most and music. in a become on live livestream global we've are We deliver can humbly music after world, and our to experience have we around full-year the say high-quality to innovative continued the immersive, we as the fans thought NASDAQ,

performance XX% reached delivered representing year-over-year generating QX million $X.X subscribers increase over Paid growth. revenues, XX% up We XXX,XXX, record in in year-over-year.

X livestreamed year, in of views year. X to million over compared as XX last in driving total XX QX a million we Additionally, versus events last QX

have we events Year-to-date, and over XX to now million date. reached livestreamed views music XX

The Our Swift content and more ASAP than QX genres hours BTS, original artists and live users. of Taylor music the all Madonna, content as across livestreams XX more by the for have Brothers, over generate than of included including world, such of Jonas XXX in performances XXX our biggest icons Alesso, Rocky, featured available pieces

winning served Global including President A Buscemi unique We've – brings team player distribution and continued expertise. key this previously Dermot a winning TechCrunch episodic Dermot Verizon in to McCormack quarter for Emmy including leadership content brands AOL's ranging President, modernization from Huffington the development he developed James to $X.X and build-out Post as oversaw ability, Studios and and Scene the Bench. management of Dermot original billion, business where programming, Park Making video as Franco the world-class a sale named from AOL Award of Steve technology, we to and Video

at Cablevision, Dermot growth. Senior their also integral divisions interactive a was the broadband oversaw as an of and VP he part where

web. base Viacom, household highest a the most he as a MTV on achieved music the valued over MTV musician he XXX million his with penetration, of through the followers, site user As build prior leading helped role

business the a intro from next-generation great addition he's rolling. to to and quick Dermot, where XXXX update our going is the our on team a give an content, Just you

Dermot McCormack

everybody. Good morning,

and our new for will our storytelling, theme approach going artist content, bolster to first, content original be love forward overarching with we As live the community-driven.

in and used stories media. We artist ultimately tell around will seeing or want to and we and and from We stories just in around take a common that access entertain insight us highlight and typical soundbites that fan delight perspective, enlighten, to are unite the and music stories give unique that and social not to find the themes.

tapestry. has one. to one; hits live new musician is want a bios, from brands full rich in featured a new a and together that will documentaries lifestyle. formats. everywhere. content music is Every to We Ultimately, to stands weave that hope to to series, in for from Music every festival and from fan, from ways, song innovative festival something lifestyle venue; is two-minute story; entourage travel stories weekly every our have integrate shows has and We social reflect and daily music shows these live,

Rob. you, Thank

Robert Ellin

and as be conference Dermot, from a Thank calls you'll lot him on. come more next the hearing you,

we continue expanding and our remains ad our pop most and partnerships the buy and important to original distribution world; around growth transformative As content continue from around offering sponsorships; centered major most to the objectives: technology, programming. strategy cities important our expand, including content, the three unique build events original culture

music next-generation, across launched May, social MVP In our audio and and platform we video. subscription live app,

We around original the greatest and have The music audio events, fans, combined app social premier podcasts, the best world. live sharing. touch events new to content, of extension Slacker streams, Radio with access one provides the brand video-on-demand

globally. music for this are we curated stream video audio like over and a vertical new a playback music over edge-to-edge video-on-demand becoming the XX enhances supporting each force, multi-view service we livestreams program, app original uniquely experience and features a With and video quickly XXX perspectives user. and to XXX, events for channels, exclusive dominant personalized XX/X, live of both music stages, new destination The year that users will social

music launched to attending the live best the in friends closest in elements, watching in from merchandise, events immersive and provides mash X.X includes world. with to that your your music the social the most fans, and we experience version between ability simultaneously to your July, anywhere consumers or In the person home chat, other buy the also car

of quarter seven Hip-Hop and to brand professionals platform, team performer from as artist artist-focused Perry three second founder DJ and As Lollapalooza and Nas. for alternative Perry Channel, the pop-up, legendary episodic as godfather expanding his of the am co-create LiveXLive quarter is this experience lives. joined audio an XX/X star is original Perry us a we expanded relationship Ferall to content the ambassador curate this our the I alongside rock.

content a partner Nation, to this amazing best continue festival. spirit music Afro festival where with through the biggest cultures provides recently, in video-on-demand, global theatrical with Most rights. television captured of and us launched Portugal, world. livestreaming We – and the we last exclusive connected partnership music virtual organizer the reality, partnership and signed mobile, people which with the with the we and streamed livestream on ground from The a weekend and programmers

commentary a updates and each and experience have and on expanded LiveZone, artists. lifestyle more content gives consumer a and proves XXX pilots offering, artist show cultural authentic an and original we segments again music content to which including event, This original guided over We've music, news, fans voice unique with of experience festival LiveXLive mixes interviews, enhancing to pieces platform.

across LiveZone, This expanded quarter shows we add audio and video. both to daily

globe. distribution to partners sponsorship, LiveXLive the continues Distribution gain around and

XX and automobiles, grow, expect we to to the the end world. and opportunities XXX reach from the in in other carriers well countries to Verizon, at by of be Tesla as – across country every expand are to The as continues second partnership we looking Our and XXX have T-Mobile, quarter globally. major now or expanded countries Sprint

and Our Facebook apps And devices shortly Twitch with well very and be available Tencent partnered YouTube and XX Roku, million as TV, TVs. across Townsquare Fire launching Dailymotion, are Apple we've as Twitter, Media, Amazon Sinclair. on we'll and Samsung

a platforms must must to X.X and see have must You monthly billion at can have a XX have to continue million live, streaming music. users,

platform, festival the We biggest livestreamed included Sinclair world, EDC a row, well For Video. Tencent as agreements Broadcasting music STIRR year Group the distribution in Vegas. from dance second China's in and as with we the Las leading

television the Video partnership to fantastic in as expands opportunity STIRR a massive local of the stations and States. in festival audience the a largest to globe miss Tencent to fully Our can't brand the year. pool This United well of experience around which the China our as provided

we exchange BIGtoken the million a a for also marketing partnership subscription. management with to on company consumer by premium SRAX strategic which quarter, of data are earned This users, livestream digital offer data XX than sharing entered option points into and more

In related to this data by driving will choices growth, music subscriber specific target addition also listening generating to audiences help habits. us and to

add by sales over very our for our Kia We see Corona continue like in opportunities XXX Samsung growing to and team open to well to and increased and Dos we global including The as near flood companies sponsors, Fortune the gates the RFPs XXX%. future. now the and is Equis and

Officer expect by end sales We team have quarter. to XX over be to to Revenue our shortly and the growing of announcing again professionals, Chief expanded five the second

momentum [XXXX] in for on and from built Wrap great significant a set XXXX. QX plans. sight up the of future have the of year rest XXXX our upon growth we

Let now paying is billion, of back you things Sachs. well expected Sachs subscribers. just XXXX by to now XXX There year. billion Those paying as over focus X.X of $XX industry, live estimated a raised music XXX the preview me as were market numbers Goldman are subscriptions subscribers give from step by last we at X.X a Taking million over TAM on. XXXX the according the for with billion over-the-top overall music Goldman million global

as of at eye flywheel merch sales, intersection the and livestreaming the traffic looking as our expanding over-the-top. library. sales, with ticket strong storm, data LiveXLive maturation is more dramatically well pieces and platform the is of of subscribers and The into the unique more converting last sponsors, our and

closer of These all plan we is to step are rest strong and beyond. XXXX Our tailwinds for to new cycle. what proving app completing one we the are the

partner the across industry new music position truly most artists incremental publishers, revenue creating importantly, has maintaining the us industry. promoters, world, Conclusion, to in stream the labels, biggest a in independent allowed and managers a the with brand

the LiveXLive is and X,XXX SGI, and and network came We music to channels now social the becoming Music with partnerships, of over expanding our language choose experience. channel to gates, have XXX XX/X, music out exclusive the from. events is and Insomniac destination a iHeart live live universal and staggering

to this year. over stream expect events XX We

million Our putting was XX million of over year-to-date, year. us year. current XXX rate run XX traffic over achieved the for million already well a last on We've

XXX,XXX pass press with shortly to X a will We by million year-end. subscribers full-court paid

live alone. X.X already surpass by of music. the projected or on the beginning still five is percentage Goldman revenues of long-term million XXX of the in revolution $X.X to million in is subscription X Sachs This The tiny today just years, a and a subscribers exist goal billion over beginning that billion

an as development expanding the from payables equity our music the of out music $X as are in million last million maturation the extension the stages we exciting final over somewhere conversion, partnership industry, in the million our two years. $X range, some is include well industry, The $XX of our of over relationship, to in

Now off I'm going CFO. to Mike? hand Zemetra, our to Mike

Michael Zemetra

Great. million, livestreaming Rob. with over through operating growth events revenue, adjusted Thank in which year-over-year of QX net results quarter. margin XX of record We and $X.X began XX% $X.X million subscriber contribution viewers with you, million KPIs included XXXX, XXXX fiscal and during fiscal loss million paid $X.X to strong nine the

My growth QX prepared specifically. more performance revenue in our commentary the year-over-year. XXXX million, paid to XXXX $X.X compared provide QX on due QX subscribers aforementioned will as $X.X XXXX XX% XX% million was XXXX year-over-year remarks in from consolidated our up to QX

with from to XX% advertising fiscal revenue QX net a ending Ending licensing. subscribers in XXXX, paid or XXXX. XXXX subscribers grew XX% XXX,XXX by from and from and ended We of subscription our XXX,XXX QX paid

as QX was from our in with XXXX compared driven by subscription QX improvement to coupled in XXXX. loss XXXX a compared $X.X year-over-year subscribers, XX% million was growth improved services XX% approximately $X.X in of of as $X.X in contribution The QX million margins margin million to of approximately contribution XXXX. QX paid

non-cash and for events excluding was QX compensation in driven XXXX, offset year-over-year contribution and total was increase increase which events, by flat flat produced amortization, operating and a million XX XXXX, largely margin, year-over-year net in $X.X QX $X.X by XXXX operating million versus $X.X depreciation, fiscals in expenses. $X.X also QX million certain adjusted million we non-recurring In spent QX stock-based nine expenses loss XXXX. at livestream XXXX

operations music Now I'd across corporate like the discuss divisions. our QX financial performance and

with Internet music music and a consists lesser to and development product certain to livestream reminder, and operations, as and marketing our services of audio a including Turning operations, along costs. our general administrative extent, sales, our radio operations

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

increase XXXX. to in During music ending Driving in this QX a across QX, revenue generated our platform. $X.X in million improvement our was music million XX% subscription as subscribers net operations compared $X.X paid

paid XXXX BXB consumer ending which As net annual XXX,XXX up XXX,XXX our XXX,XXX from ended increased by in was increase subscribers. additions the and QX Tesla a subscribers we customer-driven across The services. driven of paid strength paid business, our reminder, paid subscription with subscribers, of QX includes

We to With the we which live application, year-to-date today, mid-May, we one into in in music subscribers. campaigns, viewed and and unified application. viewers livestream single over services continuing through marketing now XX and them are music engage invest our launched online under livestreams have audio paid combines million our our convert ability to our

We remain this very crossover. excited about

applications. are engagement to live are platform working we the engagement still and in everyone that audio we'd phases is better our across and like on the understand across to this both data video While consumer of early encouraging, remind

above subscribers Through have today, ending XXX,XXX. paid increased

versus in of a expenses mix XXXX. growth The loss subscription $X.X of $X.X year-over-year. by Our paid contribution QX was production the million QX with of driven and improvement business, margin coupled million million contribution $X.X flat our was year-over-year

a across our in which XX% QX contribution As XXXX, our growth revenue, Radio in versus over in other of base, subscription the plans. in higher QX subscriber paid driven percentage XXXX. margins was generally was by improving Plus This margins is subscription services significantly XX%

event. events of average produce QX $X.X $X.X event. XXXX average In XXXX, XX at total and per events $XXX,XXX million an $XXX,XXX also nine spent of cost and on By in a livestream events an we we total spent comparison, million per produced approximately QX to five of at livestream

improvement the The year-over-year by average in greater number in higher QX versus XX% by cost QX of was driven ongoing company, largely along our per with initiatives a XXXX. event XXXX than events

our elaborate and of Recall, QX we fiscals one in XXXX livestreamed Vegas, most festivals EDC XXXX.

QX to XXXX. festival the $XXX,XXX to QX cost average less Excluding compared as approximately cost in fiscal would EDC have in XXXX produce Vegas, been per $XXX,XXX than the

QX was $X.X various adjusted XXXX versus QX $X.X $X.X The and by largely XXXX. to margin. support Music QX initiatives increase QX expenses higher Operations by and operating in in the in as year-over-year development product million Music to compared events Operations the XXXX and of million and was sales loss driven marketing improvement $X.X million million offset operating growth contribution

Corporate. to Turning

the public operating at QX functions. As a and principally consists company general finance, division relatively driven and including entire initiatives compared reminder, million to legal in our of was that as as functions such administrative any executive, $X.X and Corporate areas company year-over-year support adjusted $X.X loss supporting other million flat XXXX. corporate QX

to trends expenses like in I'd discuss the operating year-over-year. Now, our

compensation, stock-based respectively [$X.X] expenses million QX non-recurring Excluding or non-cash XXXX expense, in increase million depreciation million QX XXXX and certain net versus XXXX XXXX. expenses QX $X.X $X.X million and and $X.X year-over-year. million $X.X operating were operating of of amortization a QX in

the coupled QX development marketing with was to driven $X of expenses, product $X.X approximately million increases sales expenses in increase driven $X.X XXXX events a initiatives million music in support of in number higher The $X.X QX in these by of and development million that app by and a in XXXX launch number XXXX. improvement our increase an year-over-year. expenses new was in Offsetting of included the May G&A product million new

our investing Turning ended activities $X.X largely net million, to at of The from balance cash million XX, of million with cash period. of our decrease of XXXX from XXXX. million, ending QX debentures by in was repayments operations $X.X $XX.X down sheet, $X.X $XX outflows million and we driven the March cash of of

from driven cash of our management by by The adjusted our by net principally payables. net loss, savings in our cash largely working was usage operations capital, operating driven offset active

net our to stock. million offering of XXXX, a $XX approximately Raising shares of million immediately expenses we closing. in $XX.X position and registered direct after the cash sold direct million following $X.X X ending common our bringing proceeds In July million approximately

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

As We unsecured common common we convertible debentures of July our an of including million $XXX,XXX estimated and the common stock, approximately common XXXX, outstanding XX.X secure now outstanding $X.X notes. quarter have XX, today. approximately had million outstanding and shares June stock with of our offering registered warrants shares the of XX.X and million underlying as XXXX potential ended approximately

a At in $XX.X embedded million in value we net debt XX, and derivatives. of of had deferred fair total approximately $X.X million debt issuance June inclusive cost outstanding

extension over vendors currently LiveXLive are years, key certain $X we with million payables Finally, million million to current finalizing paid of $XX $X the to over two settling between stock. in In be including

to Turning guidance.

million, million to million previous $XX adjusted $XX loss XXXX, range of full-year guidance are $X we from $XX our operating of to and $X $XX of reiterating million For million million. to CapEx revenue

for like concludes to line now the open That prepared We'd remarks. Q&A. my

Operator

will [Operator of from ahead. question Ron We now go Securities. comes The Josey Please question-and-answer JMP session. the begin Instructions]

Ronald Josey

A Thanks for Great. few please. taking the question.

Just just one on go one. – let's by

So call Rob, XX expectation about, Can or and release grow. I the just wouldn't you concerts, but of number XX? maybe why stream a streaming bigger here on think the talked in the then festival back with as just XX. press bigger the on for a picture, And the clarification picture XX all come clarify festivals you it's you thinking

And then, at talked cost could EDC, some festival details the you $XXX,XXX, per if Mike, additional provide about ex $XXX,XXX. you

more drove love or said Is the here? something is Can partnership else it it Is that details more initiatives with You you ongoing iHeart? provide to it down. understand that. would

me trust music here, the last both with around some and equity in you, of – form one payables. mentioned I last then, And one industry just the think, your

super helpful. be would insight additional any So

concerts, Thank then asking the payables cost equity you, the and per So the festival. about for guys.

Robert Ellin

Yeah.

total festivals versus XX versus [indiscernible] events. XX So is

we have now exclusive a music now live over with we X,XXX – run signed arrangements So have events.

we'll the year that them think I a choose X,XXX of in us But stream your second from being that will So And as question, which of of of any selective not XX plus. well with part have over in can't chosen of terms we to stream festivals, this we're again. answering festivals. events bucket like, your of each

we the it. As graph the build social size to the that right there on studies is We're events partnerships in transformative industry to of competitors based do graph of a of that technology about today social the you the left. and excited performing know, really nobody in that's on is artist which terms really choose the

Bull and gone. all are Yahoo! Red

to same be an – to it's field try partners us really and experience as possible. just we objective to us consumer choose So the the most that the and open quality best the for really selective deliver

Michael Zemetra

two. take Maybe, last the Yes. I'll

per partnership On of but economies economies cost we're this drive making learning and the of part of to our also festival, constantly budgets getting iHeart, we is active mean, more lower our with focus scale in as scale. some we're and I on decisions production.

equity mean, constantly we're up that balance to key equity. to respect I listen, With improve willing suppliers This some of million million $X vendors take to the to side, and our opportunistic $X is sheet. music our across with platform to are trying

the we're in finalize so and to weeks. discussions looking actively And those coming in

Robert Ellin

just Ron beginning. just that, the to And is add this to

music throughout partners been the have industry partners in this. Our great

expect, extend to million the over well right. as a as And that's converting just I $XX beginning, period two-year as to articulated, think We over Mike equity. piece a

equity right. distribution with position be us to I stronger a leader side, expanding continue watch industry closely be having the us stronger to additional perform to the the in company. overseas think, as be both partners in on as here, and well for continue we as we'll larger to become and It's to going thought

Ronald Josey

Got it. guys. you, Thank

Operator

next comes question Global ahead. Alliance Kinstlinger Please from The go of Brian Partners.

Brian Kinstlinger

or on rate And in thanks so guys, when is conversion it to the about too the more talk the about increases it is Can quarter early? in talk you too much. impact integrated or app is Is year? second it Nice the you that far can having if Hi you expect is so conversion this acceleration of happen? half it early, in quarter.

Robert Ellin

Yes.

of think MVP into the Brian. I'll will to too the start take early, right. was add I definitely and app, this This with It's launch Mike it.

starting aspects just the be social are So added. to

ability July, aspects. those In be So chat, would right. launched merch, to and buy we've version, started just social X.X to mash which our add we includes what

and will micropayments. ability deeper go and Soon add that. then, And we'll start we'll add to to be tickets into ability buy and pay-per-view tipping the

it to this to and Mike, size add So is the of the and the some It's exciting, really start but early seeing anything signs, launch we're really yet. beginning good you – to to too it's that? that expansion definitely want the to app. commit of of

Michael Zemetra

still launched we're Yes, just the phases. yeah, is, I active in early today. mean, We're some seeing news high users good among But engagement Rob's this. the right. We

so to better, continue evaluate more it. we're information. get guys we to give you And as we'll And going

Brian Kinstlinger

maybe... then And Great.

Robert Ellin

And to to I add just Brian, apologize. that,

happens are to is, that What experiences and really to the on add remarkably change, audience is going name from that able joint fallout of it. that, increase now to people into exciting out are the to And app. from we that video, could the just the about and and came Just tell you Slacker when adding has site. re-branding have almost the some the that this time that keep usually purely spending I were all from that audience you

Brian Kinstlinger

me leads your can time next. or going was I you watches subscriber a a site on That ask the Great. livestream. is to quantify Maybe either average what

RFQs talk advertising we've think about for to when that is is I then advertisers. XXX% Maybe as two in about advertising, going materialize to talk an increase stronger you into quarters. metric And heard dollars. we this attractive think

Robert Ellin

fairness, wish it's could In morning Yes. and I could to you it that tomorrow say I right. be,

right in, more tailwinds As direction. the right. to are these or Revenue We're just add We've close sales the Officer, our coming We're very to RFPs to Chief people. people, heading continue announcing right. in going sales more are added

So we're going expand the to to continue team.

of literally could all answer, wish what businesses, prophecy traffic almost it it's open, I months. and it self-fulfilling tomorrow you going a hits. the know, a take matter right, to audience the you grows, actually as sponsorship-based gates date grows the as growing but it's RFPs. be We just simple coming. in And It's I could those could And flood give are six keep or could a

Brian Kinstlinger

minutes? to subscriber watching of it long is a or a hour? quantify able you it event? Is half handful provide maybe how Is Are

Michael Zemetra

exciting a Wango Tango, Swift Facebook minutes, Yes. watched It's her it, small usually with really and people Taylor feed over account above a into what's XX her sent and XX-minute had for is XXX,XXX the People were actually that set. they Facebook were the because across concurrent it never entire watching about very got much stream. the views pretty base. this seen happening excited user

So really this is exciting.

Brian Kinstlinger

Right, last question.

Robert Ellin

huge API Just branding. people think how those and magical is. we for right, said, when did right, as the Instagram, consecutive over What Swift's XXX,XXX about from go. across was opens just Seacrest own Mike of where on, branding. right, staggering cross-promoted, viewers. Facebook we giving Ryan watched, numbers huge was Taylor up one that us but XX,XXX is, page, are could numbers for LiveXLive more interviewing think Facebook that so about, important the And got hosts even Those and

Brian Kinstlinger

Yes, great. Exciting.

are year, Lastly, if maybe is agreement? still this is give that an one, fiscal update, pretty going can Or video-on-demand happen there you far any to on you negotiations? think in apart? you the Do

Robert Ellin

They've tell, they've given – flexibility and partners on you this the of we're more this think end exciting are us, can and you moving second shooting right. The what's And the how throughout the much rapidly. of is as supportive telltale No, great is the music is as I see labels for more signs that, here industry quarter, us. been and see you right.

Brian Kinstlinger

so thanks guys. Great, much,

Operator

ahead. The of next Group. Allen go question comes Please from Klee Maxim

Jack Aarde

on has Vegas the also produce me – average What am to Can lower, mentioned was? number you then you mentioned just of what I had a festival the that the cost. Allen. And decreased. Aarde. cost average that I you Vander was a Jack cost is festival for couple that much the was remind excluding this this questions. quarter Hi,

Michael Zemetra

Yes.

cost, $XXX,XXX and was to if it $XXX,XXX. believe, you then the So was Vegas, I exclude average

Robert Ellin

and a to multiple Mike and getting add this listeners. it. the from just more is XXX have with that value didn't exciting And relationship in one get [indiscernible] a covered million iHeart the wins have different getting staggering amount artist if listeners little the that artist partnership Number a way you're can content is get artists do with more because really do they of the to color. they before, you million than XXX you're

radio all stations, on watch come is, two is across those LiveXLive. iHeart Number right, marketing, to

that year line million of marketing very are right going because I So Those think also they're was us now about quarter-by-quarter power year, in that total right. where, talked the taking $X.X for that billboards. the to be of costs we marketing is across on much iHeart, last the placing numbers their

So on in the a it on and in spectacular It's iHeart has marketing of come biggest of billboards, the the LiveXLive. some their XX brought watch artists out just partnership events, seven been and that world, BTS, probably and the event as band billboards, this biggest as world did we Swift on so views artist over X one with in Madonna. billion the right great well now, Taylor

that from great be be see sales billions do they team. live could partnership our of the that expanding. force I the sales the that just where sales a is to enhancement their small their with expand. right, This upselling also digital opportunity that from see team, could of revenues partnership continuing to exciting part I grow dollars really and to really

that costs bigger part get, we have scale. of our negotiate The talked we leverage economies more with about the in second to vendors Mike all is of the line. And get to our

So our $XX,XXX to in an cost under as hour, articulate which probably we is quarter, an hour. this $XX,XXX $XX,XXX the

the and to really cost million $X per to at It's right. with AAA anywhere $X As million Game cost be content all this you're AAA to is, able million, from episode, of content bring exciting this this $X.X level. typically reading of at Thrones it's

Jack Aarde

just look not see terms is helpful. that just the do festival, how you'd average think where in at a cost that's of you it, kind Or it? Thanks were you'd trending Got where end the have for about towards year? – expect the of I color this to then, And if guys number of of rough there. ballpark per to really

Robert Ellin

right. what's festival of happening think would right, I of perform near in right, future, be heading And you at demanding, pays of the XX plus, a is are in rather think would perform EDC front to trend It's us the livestream in the I these that a kind to million in very obvious that, direction that think XXX,XXX artists going you rather front people is and the captain right. – because produce growing, happens, that there's I keep just the trend these, or is the numbers right

and the mature this industry we the a matures, of of is this in still our beginning revolution space. As beginning

numbers this. more and artists bigger, of more get the As the want

Night its Bowl, whether whether historically, about of cents. As dollars way sports have and is longer other I've the great the is it because marketing, it's or always artists usually radio, whether that the Super it's is life Jimmy places. about in right, not opportunities It's these it's music Live, marketing talked shelf whether Saturday are about, Kimmel, than

Jack Aarde

Got it is then little could and the you're expand it. combined of to Slacker the how you subscribers And app in seeing relates on what new terms LiveXLive kind performing further a just development? lastly, as pickup in and of that

Robert Ellin

back, subscribers to right, XX,XXX to haven't to make that, subscribers going and was a losses. up month, we Yes, losing had the we're month. disclosed growing numbers Slacker remember around we XX,XXX XX,XXX other than on for close a

Top elegant. Android. been it's got We've been XX response has So on far a been it's fantastic. The really, rating

The reviews Apple. with similar been have terrific. expect We

and world next-generation – we're the all and you and ability app can video that across So get computer is the the them both live and commodity of a experience first ever get habitual that with you behavior. audio the habitual the related the platforms to new their the a about and consumer, all audio in enhanced this content the bring to excited other really It's learning with behavior app. best fresh time can

Jack Aarde

for That's right, Got it. it thanks, All me. guys.

Operator

next comes ahead. The of from Jon question Please [Operator go Ladenburg. instruction] Hickman

Jon Hickman

now Rob Mike, remind many do Hi. guys from sales have you or you how can the...?

Robert Ellin

now we Five. have Yes, growing we Jon. will shortly five. that again, be And

We expect very be have by a brings in music, original a Most announcing programming, is, year-end across important XX. cetera. I sponsorship, Officer real experience to as said, near across over who Chief future, Revenue et the we'll

Jon Hickman

are now many subscriber Tesla and organically from, saw want they so subscribers into of Okay, stream partners a know, maybe the to want because many continued insight you how – want and month are who your coming don't people can kind directly, – like carriers coming from to the some give like or how us content? each be I and of a and then

Robert Ellin

Yes, side from healthy continue which and for a we property, side. on I well I BXB the seeing that. come well, Tesla mean, to of some a the Rob our subscribers. as as the lot losing I the mean, as from we BXB come growth But consumer side, we mean when we're it a seeing net healthy both the reasons, first percentage as disclose includes Slacker percentage was positive are carriers. don't inherited of major consumer mentioned,

Jon Hickman

you So sure have XXX,XXX? you just to make I the numbers here, right June end had of said at the

Michael Zemetra

Correct.

Jon Hickman

the And reporting have, you as July, XXX,XXX? now end of guess you're I

Michael Zemetra

Over, XXX,XXX.

Robert Ellin

Yes.

pass imminently. to expect XXX,XXX We

Jon Hickman

Okay.

in over somewhere X,XXX subscribers So you've that's the July. that gotten month of

Michael Zemetra

probably to Jon. It's closer XX,XXX,

Jon Hickman

Okay.

That's Okay, thank you. it me. for

Robert Ellin

Thanks, Jon.

Operator

The next Please of ahead. question Ashok ThinkEquity. comes Kumar go from

Ashok Kumar

half production and year? Hello, loaded you. you costs in Mike. you the trend fiscal accelerating that for Mike, in Thank right the and first second mix business and revenue flow model, Rob cash with talk second improvement in about Could half and the can half. about more talk

in on terms visibility Tesla's the to – to you indicated a and question fiscal favor you subscribers, would what earlier for the any year a domestic the XX/XX trend right it from then be there? account at? number see trends XX% of subscriber also of do at just you And the of Thank you. in level? mix, would for have subscribers, taking What to And remainder is margin that high and you revenue look production. subscribers, do conversion margins into And the had viewers split

Robert Ellin

lots of there. questions Okay,

cost event. So the per the on question was first

EDC mentioned happened as this production before, our event quarter, our that, elaborate If we exclude costs Vegas. which is most $XXX,XXX. I sub So were

I think the expectation...

Ashok Kumar

Is and production it will at front-end high have clarification cash you that second less more it accelerated in loaded. have I were getting event, trends half just – – was the just a some is terms for level burn in of cost? given revenues your the costs your

Robert Ellin

I last was you're of the similar the half of in we back to the year, half Yes. the first going year, think had I see what mean, cash to the what higher, where is year. burn

see your Is to trend. question? that going that You're

Ashok Kumar

Thank you. please. Yes,

Robert Ellin

okay. Yes,

more the going hopefully that XX/XX to the see split, towards side. On move advertising we're

phases it, push in continue between, call to going advertising. we're early and XX% goal Our that's the balanced that somewhere goal. more We're get Again, is towards to to to XX% still that. our

Ashok Kumar

how I can about business holding maybe see that management do next and and over from live been to live at a music the talk year and in expanding charter out terms it's of attract, could And so? able mean, translating about, high caliber you've the Dermot talk an opportunity just that expanding you that into the zero-sum And doing to events, right. level, fiscal price, not of opportunity – you

Robert Ellin

to I is opportunity create convert Sure, the to more into to us we goal programming, into users us began more, we related now feel more – from the yes. of with advertising spear. build subscribers. programming programming which tip to music subscribers is to opportunity the The give engage more mean, to give revenue, live

goal come a for with we and original who extend live increase spent, to around to really inventory. programming time want relationship continue is the to open relationship So to show may people the extend sort the up in of

So that's general goal. the

We bigger and at also better look continue options. to will distribution

more do will to We that. programming need

do as to as a and expand the live So lifestyle tip build spear general our and a music to of there's opening continue huge is think goal brand premier use program, it programming that. we the to to around the

Ashok Kumar

footprint…? Okay. your expand Dermot you as

Robert Ellin

bringing is relationships the bringing – on part executives many onboard of he exciting of has him of of the of original exciting who worked that have so Part part Dermot programming. for part

quickly, management you're going company. see this to going joining additional you're to very think I see – So

you've Nas right, Hasselhoff seen partnerships with David saw now Perry, with and the right. You

executives see as ambassadors probably relationship to to seven, those three continue added of team You're to our well we've any music going artist from now. to as grow minute again

artist-centric world-class the artists, these Dermot's experience teams in on programming. So see this an original and space, to as running you're background communities joining experts team platform, some in building going around

Ashok Kumar

of assumption? lifetime I safe in subscribers a customers your content, also, guess, your and revenue or Rob, So And, will increase that's increase, probably right? with right,

Robert Ellin

That's Yes. goal. the general

Ashok Kumar

goals? plan And to acquire mean can to assets develop Got the I you some see you're do – you technology operational – it. expanding requirement that given or you need otherwise do in international organically or to footprint, any you you reflect would your

Robert Ellin

I it will both. come think, from

to my fight right. team history every When is to the unique build. happens just back, part or buy As that probably trend right, and the starting my exciting you the so seven back, carriers to now know, it a they're – and and But eight opportunities. and are carriers years, fight start is you're seeing

the we right. As could part the really we're many of when partnerships. the the you to level their I want off you're that were It's conclusion of globe, from to about that control this around right, going they're hear opportunity now own starting so carriers to and call, subscribers we starting bought Slacker, to tell that and excited data, opportunity losing the have

of with technologies Tencent left one China of one Sirius left in to that world with billion, $XX And billion $X right, the that Spotify traded we're in all eight eight having nine the thing we're at or Slacker, and nine in technologies and world. same or Pandora

globe, Tesla may to around international presence the easily really can our that our from with carriers launches that. that and similar label solution partnership So see could that trigger the white you deal be a be

best, in be I growth. And to pop having culture enhance live. channels the exciting be think by see participant our audio audio, experience making it then XXX not well important to And by really in a curated carriers we as across could those events how most the going it's as the

Ashok Kumar

Robert, very Mike. Thank you and much. Congratulations, Dermot,

Michael Zemetra

you. Thank

Robert Ellin

Thank you.

Operator

back This for question-and-answer I turn to concludes our session. Ellin conference the remarks. Mr. to closing like would over

Robert Ellin

much, in, thank flywheel the the everyone, world a best Own culture more here around biggest artists pop have The drive the really joining and the audience. getting in Well, is kick for great. we're right. Hey, so and you world, excited. events more starting massive to

a the have million of starts on just tiny If wheel really start right, run over to these rate We're this a livestreams to percentage can we to XXX year. subscribers, in. – numbers kick those convert to flywheel

revenue merch Now so merch, many the streams different to can that the We same drove we XX,XXX and it. audience, people guy we're tickets.There's test launched will from we've come site starting EDC right. thing this that with for happen think

about direction recent And where the everything of in the so including upgrades going, additional we're upgrades management. in excited management, is really

and in, quickly. and this percentage that to a to small this flywheel starts in XXX%, starts small and So kick increase sponsorship, the RFPs of piece really of the convert to starts move

the call forward conference updating look So, thank you again. to everyone for next and you participating, and we

Operator

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

disconnect. now may You

LiveOne (LVO) 11 Aug 192020 Q1 Earnings call transcript