LIVX - Earnings call transcript Q4 2020

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Operator

Good day, and welcome to LiveXLive Media Q4 2020 Earnings Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Emily Greenstein, Investor Relations. Please go ahead.

Emily Greenstein

Thank you. to for business and the ended XX, welcome results and fiscal and March call conference company's XXXX. afternoon, LiveXLive update Media's financial year Good fourth quarter

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

IR to find not we date also encourage measures you the this XX, most reconciliations XXXX will call after that by recorded. earnings for as of revise to of website reflects ir.livexlive.com questions, responses as contain call, investors and highlight financial posted content. Relations website at the law, undertake to like June of Company's information measures the update important obligation discussion, required of and including to information or sensitive today on time being I'd except any is non-GAAP this to date call. GAAP is You to management's we do view visit financial and this in which comparable the The discussed release, your Company's the our following the Investor periodically

relations and investors of and call. the be the our to replay will available on it making shortly available a investor webcast conclusion media are We section via following the in the website

is consent Additionally rebroadcast retransmission of prohibited. written in of the express is company any redistribution, it and any strictly a form the company's or property without call the

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

Rob Ellin

impact everyone Emily. afternoon start the Yesterday everyone LiveXLive social a unrest, as combination surrounding is support lot today. next LiveXLive has racial joining meaningful on the ever it and times. us Good as a Thanks, stay been of each everyone. doing other industry. safe and we COVID by community live announced is music reported Thanks last want these Since an and for during able we injustice official between to healthy I year. to together Juneteenth has hope we there comes saying that. been difficult has changed a starting It important just and holiday

the multiple ability During these LiveXLive are performances. and of concerts live platforms one ways for content streaming to digital and unprecedented times when live the times. a festivals, music streaming Today, platform important stack, has COVID to most is with festivals full we multiple live go music shutdown, and in monetize become

with I'm music As events music streaming. of in have and half more all live In more LiveXLive the calendar live music have we positioned than as calendar leader of the more streamed we COVID XXXX. artists already quickly shutdown successfully in XXXX, first to events, to proud people say

contents. exciting time where for live for and initiative cutting first and the technology, talents with first platform, stream new talent LiveXLive pay-per-view, artist ever the ability distribution, globally important will artists, - production, full recently length an edge, across all As launched exclusively simulcast platforms. LiveXLive to pay-per-view marketing, audacity, digital we sponsorship provides We provides and an produce

expertise standing streaming the sales world. are festivals, digital a fan LiveXLive with around EDC, We pay-per-view, Seagate of meet Super greets, share via tipping, the Montreux, and the sponsorship. The agreements structure long as digital largest allows Rio, Rock extension tickets, the Jazz music, and tentpole merchandise music and in of platform our Bowls artists streaming to natural ready

slowly be for only first digital As reopens, positioned live we live. and music the and sponsorship will ticket driving as platform sales and both

EDM React's over will million. over Spring to React sell largest ticket. club, event acquired Last concert, to near $XX was lineup. festival, very X,XXX be average proud We we over additions by in tickets year company small Presents pay-per-view XXX we're to access announcing Awakening at revenue a significant Chicago. calendar with per promotion to including quarter, festival first in a future events the our our $XX an And live of approximately per

time well, team. just extraordinarily part events, to and at has the team XXX our Chicago of to-date not worked prior quickly management React acquisition as the X,XXX COVID our which artists Although plan, Spanish the we digital-only opposed with music pivoted React React to from events out artists on expand outreach of was team over stream to working coming our

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performance we to we've on shows. to two people artists, Adam’s his As those two favorite streamed million added over X.X

additions as well vodcast So we’ll both be new podcast streaming and to pay-per-view contents, class world our looking for lineup. as existing

we were of focused traffic. and In what laser revenue and or bottom line, has ago monetization, remain with six verticals. than on digital company and audience, to we become acquisitions addition, we at today on ways time, months generate and branding optimistic complementary is different a increase it Today, could add the focused respect an additional LiveXLive new that LiveXLive. to was are enormous traffic

French of Like major on stream merchandise driving podcast, subscription, content over as our platform. virtual digital new Since same tours potentially opportunities. networks, be million now and across April, and tipping. can fast than original squarely events, as revenue growing monetization EBITDA. Legend, last X,XXX live wherewithal positive different we including Lizzo, many XX in million the times features XX year, revenue streaming, different where having model significant Keisha. many commoditize media And integrated premium have pay-per-view, we added create for ticketing, artists, the John sponsorship the content, versus Gomez, views, including new ways. our Baby, grow tripled with produce, of artists virtual the a and paid now of Sting, Our more Have these Each XX in numerous focus as to five industry Montana, Green we total event part an Selena segments has Lil the OTT, music platform and well streaming. stretches Day, We of pay-per-view, have audio streamed standalone live biggest course, across live now Tinashe, segments, business, world, featuring

loaded companies. exited are and aboard with leaders industry executed have dollar run, team built, management multibillion Our who

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is and She Bridget as CNBC, of $XX and opportunities for to hear totally Bravo, Telemundo, distributors NBC Comcast about around billion Board. Vivendi/Universal, President also hear We involved distribution integrations Universal. of down more Bridget those to Baker content our more in including added you more you was over distribution more and previously across expand acquisitions, tentacles world. Oxygen, our the us will Helped

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franchise Zone supporting original will allowing supported newly like will on channels LiveXLive and What refer sponsor increased and acquiring channel fashion, client music art, a continues together streaming which artists service, the Live Live with together continue our extend LiveXLive. music, combining goal and our center the of the a slate fans zone slate. audiences significantly platform. key in us news to More authentic the deals across is with sports future, to Esports programming to red distribution more platforms. you'll sport helped launched ever, will feature our ad than globe. partnerships world and traffic across STIRR, in center original our and around has as programs BXB and has we with and grow music the pop partnerships produce STIRR to to music more zone, events in As expanded live see live culture, Zone

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And strong, remain of Tesla Tesla's XX, in and partners around very T-Mobile. installed BXB in offerings we the as expanding revenue Sprint our you handle and pre well we labels carriers, the globe we we LiveXLive is the with across service to up customers and automobiles in new close major previously, to globally, said many be whereby exclusive expanding and to publishers partnerships rest also America. any as are able world. publicly partner, of as sold know, customers, and As Verizon, production to are an car our our

YouTube, monetize We TV and Tencent, Apple our Fire across many various and these streaming well through so Twitter, Facebook, channels. Twitch, as distribution apps are TVs. Dailymotion, ways Roku have There XX to million with a global app across Samsung Amazon content had as partnered

and video are and sponsorships platforms national sponsorship have tripled with ability Tia, Claw over and same the brands, significant both basically content fans to bands to mobile bringing side and White over including again, XX same we over in sponsors. automobiles over course, have we use, key like the as monetize with the carriers, recent content audio and and companies again. use partners, OTT together The Samsung, Of months,

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the in Rio our of featuring with and Gomez expand existing listeners. broadcast called part is all bring collaborate are to fan our LiveXLive to franchise, relationships future broadcasting Lives culture, digital celebrities so broke deeper franchises number all lineup with and this across rooftops, a village poolside rooms the artists. podcast with and million XXX,XXX highly a Coachella, video festival expect XXX EDC, to Rock The We bases We and larger into artists views stream. in family. TikTok with event. concurrent big our guarded live own profile groundbreaking live and with an at with music, their of and their TikTok continue be will an unite Music Adam music. festival recognizable Carolla partnered of shoot or and pop produced records our audience a names, really the unbelievable studios. private We billion of has or one, building adding XX-hour the in we'll Selena Rio strategy views and A Rock additional X users on them artist XX during to Coachella the and global T.I. aired flipped We backyards, countries. It performances average of switch Shaq XXX those incredible podcasting, our streaming EDC high across a over loyal a That's from a entire global living in with streaming

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and iHeart our New with We such up Duran, footprint continue Home at Stay including to recent Elvis events as expand York. our partnership Ball Rise

partnership we through - includes which last streaming Just month our extended than live more XXXX, last events. XX night

globally. iHeart been in far other the for We exclusive we've Ball. years Rock international top Festival, We're to and last and ever Music by iHeartRadio doing Rio rights to the distribute events the have crossover live events company Jingle streaming digital, their four match first so which in

events element. LiveXLive Going forward, presents we're live digital actually on like a putting with

pop events of Apple original millennials. partnerships streams stop and and franchises new gate, of the Music reach unique but Venues to to events, remains aggregation not be active events and hand offers create one is Facebook the advertising follow through created going for with content app live an for channels unified month, to has ability a to Fire most sponsorship Distribution produce partnership With I'm and Mike their and with of sponsorship thank culture TV, to well to and a a priority. This audio pay-per-view slate introduced TV really going whole Our Oculus estimated million audio TV, and new distribution with off next set track of to venues our a addition exclusive ticketed this during Zemetra. global the on digital, Smart of you. advancing we the stop sponsors experience full a and ticketing and the distribution and the triple we Mike, opportunity new launch quarter. monthly only content, own Roku, video. music more than drive a XX we revenue Samsung streaming with the and The sponsorship Lives soon fans revenue Oculus, and sponsorship, with Right on June app This new key strategic destination partnered and to world. our also and as to Amazon TikTok video as already that, reaching released users.

Mike Zemetra

quarter financial XXXX year-over-year, paid fiscal adjusted million Rob. with XX% adjusted another loss with $XX.X We of including operating in including $X.X record and this in $X.X Even prior in million XX and million XX strong million is Great, line million. ended operating of our fiscal Moreover, of XXXX, QX thank XXXX, contribution margins QX guidance KPI and with subscriber our call. fiscal and loss over we streaming live million had XXXX you, growth $X.X record revenue, our in revenue annual net viewers. and events to of earnings results $XX.X

fiscal subscribers in $X.X XXX,XXX part from contribution revenue a to subscribers with fiscal paid on XXXX, services. paid XXXX Fiscal of margin fiscal was productions $XX.X we and fiscal events. XXXX. adjusted to loss digital or cost offset realize of to XXXX, with our and event year-over-year was fiscal QX grew results of XX% part cost XXXX The on slight an fiscal and average to spending of fiscal by event, business, an in advertising $XX.X ending first Heading services our in produced the core XXXX. by licensing. our to the XXX,XXX paid a in fiscal from efficiencies million year-over-year increase revenue total sponsored to We performance, iHeartRadio. this financial XXX,XXX an advertising portion fiscal XX.X% of events, realized fiscal as approximately produce our in average XXXX, decline the compared augment More was net more a live efficiencies latter year-over-year the in XX as XXXX from year-over-year. event. of such largely and expect XXXX will of in Ending in ended operating improvements paid licensing XXXX from stream subscribers specifically subscription at fiscal due we million $XX.X improvement to our with XX% our cost events of subscription our of comparison, The million with X% margin driven million, per XX% XXXX by our on XX coupled million. pay-per-view XXX,XXX grew average as more remarks fiscal of our XXXX. provide large million $X.X across in million per was Fiscal subscriber $X.X The cost XX.X% driven from over $X.X consolidated spent or to live approximately partners my XXXX year-over-year compared XXXX events per prepared QX at improvement improvement up to By we XXX% year-over-year, scale as flat in from by XXXX. an compared number XXXX in and as fiscal with XXXX into Offsetting $X.X base, to of only growth in million coupled with year-over-year commentary

to drivers pandemic and This prepared Now, in Due QX remarks. in year-over-year XXXX properly business fiscal deeper $X.X by paid performances along a with of flat $X.X entry a in growth million year-over-year in XXXX I get the by revenue COVID-XX our XXXX. $X.X which by would revenue my period. I was XXXX. beginning year-over-year decline booked up impacted was XXXX was in million, driven slight largely XXXX QX was margin correct and advertising COVID-XX loyalty accrued state the discuss sales across in XXXX. from to reduce million million. March will cost over financial QX revenue into a X% licensing same $X.X the QX, versus in impact offset one-time subscribers like contribution later obligations increase despite in an to by QX partially the

As result generated subscription contribution XX% margin and approximately business of XXXX. a in our QX, this entry, correcting

marketing company. addition by overall growth in of approximately QX, been million QX driven slightly versus other Excluding have driven XX.X% the contribution improvements million higher XXXX in of by million or overall or by support XXXX. $X.X margin XXXX XXXX QX would the QX, in approximating new loss initiatives this $X.X in million entry, spending QX, operating new to music adjusted correction higher in personnel $X.X XXXX margin and contribution costs the Offset QX versus XXXX $X.X including corporate XX.X%. of was versus from a reduced of President the services

in software also internally XXXX million million addition, developed XXXX. QX, versus in capitalized of In approximately $X.X we $X.X costs QX,

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

operation, costs. audio to and sales, lesser with administrative music internet Turning operations live including extent, video stream product and operations, consists music our of certain and marketing and along our services, our to development a general

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

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

the with driven the which QX part paid As a of Note was began XXXX. our increased Tesla net consumer with QX, XXX,XXX reminder, annual the paid BXB ended consumer subscriber March during both and by part subscribers XXX,XXX partners. in to also slow our XXXX our across in up growth The business, includes from net from increase onset across driven services. pandemic COVID-XX the U.S., subscription additions direct-to-consumer in of the paid subscribers that and our we the strength BXB of latter

We same our increase year-over-year trend of fiscal to booked in XXXX least entry XXXX the reflected at correcting sales. the quarter despite in of continue cost is first discussed expect one-time to flat largely which million XXXX, the margin driven over of fiscal guidance. contribution QX an revenue during $X.X in reduce of QX was XXXX this by previously period,

During incurred a to of event, QX we approximately million XX approximately XX,XXX per the to average costs cost XX% XXXX. cost compared QX, event at improvement events produce $X.X when in per XXXX, production representing in an average

year-over-year compared QX, operating $X.X can XXXX. $X.X XXXX. Rob, marketing XXX,XXX mute? discussed, music $X.X put realize average we growth previously events. Offset million in in discussed approximately million was by initiatives to our are of operations the at per production live scale foresee trend five XXXX. XXXX on We an As as this cost efficiencies Hey, [technical increase The to events in loss various and continuing was to massive on difficulty]. million QX continuing to XXXX. QX, event. - QX, yourself QX, produce Comparatively, QX, and expenses events as through we of largely driven adjusted Thank cost lower previously million $X.X by in the XXXX you incurred you support live to we operating

the consists and entire division adjusted personnel to to areas company professional and legal increase administrative growth that finance, costs initiatives company, corporate, higher was corporate overall initiatives million such general and any $X.X $X.X as in to QX, compared due corporate functions, including as was various higher the fiscal coupled support our XXXX. XXXX. support fees loss other largely The to of driven Turning throughout operating with functions. executive, supporting principally public QX million

million. expenses Now, $X.X in the of operating I XXXX were in QX, of expenses year-over-year, corporate which The by QX were expenses versus increase $X.X result music amortization trends non-recurring non-cash compensation coupled $X.X XXXX discussed services QX, increased and the operating million, expenses. was million personnel million stock-based million and of slightly excluding of largely developed would $X.X previously and higher certain like to $X.X expense marketing professional largely G&A million with our to X.X in higher decrease and internally expenses due QX XXXX a to and of depreciation fees, QX improvement XXXX. offset million the software due lower discuss operating $X.X capitalization

Turning net $X.X of balance offset slightly we XXXX operating outflows $X.X of of cash per $XX.X payables and by down $XX.X proceeds and The driven financing XXXX. million net The cash from QX, cash ended largely was year-to-date offset million by driven ending active by operations our of year. restricted by from by activities sheet, at management of throughout adjusted principally $X.X working our operations QX, cash from million and usage million cash and with cash net decrease or driven fiscal savings XXXX. cash million our cash from loss, was restricted to capital investing our largely year-over-year net

acquired we would PodcastOne. you I update May like items. on few to Now XXXX, additional In a

revenues XXX over annually. off of and PodcastOne downloads generating more million week were in per reminder advertising. leaders billion X podcasts podcasting, $XX.X leading one Full is calendar of producing driven principally a the year As than XXXX

better XX% XXXX PodcastOne margins approximately growing Historically, in acquired its effective April which our pro million. Assuming issuances We close were year our revenue than of been XXXX have million three expect quarters X, XX% to gross approximately and mid we for today. is acquired of shares July, entire PodcastOne was and slightly services, would year. fiscal are forma which sometime at $XX X.X topline subscription fiscal the PodcastOne per with

join our upon acquisition. also Norman to become the excited our have third who Pattiz shareholder team largest are We closing

In ended XXX% potential common April X.X under As which of loan XXXX, Program, outstanding billion and March had shares outstanding. notes. million our approximately approximately common in Protection XXX,XXX Paycheck plan forgiveness SBA underlying we We XX, XX we of approximately warrants the convertible debentures secured to XXXX, file with quarter stock unsecured and million a for we obtained QX, XXXX. $X.XX the

a of total X.X debentures we today, of secured million convertible in outstanding. have As

amended XXXX. debenture in our of QX, agreement we credit our Lastly, secured holders

result which principle a minimum we have cash cash cash not of million a into a amendment, subject restricted a $X.X throughout we to As account. of required always this to holding XXXX. as is were been $X.X million fiscal change, was our the transfer This requirement, entire

this and of segment are adjusted we the XX% overhead forecasting representing midpoint. combined million loss $XX to in million, operating mix our to midpoint, over between a year-over-year principally PodcastOne, include year improvement to year-over-year. of festivals XXXX. fiscal our is contribution an to as costs from improvement fiscal advertising expenditures Annualized capitalized stream guidance, which over $X.X in representing $X million note XXX% $X XXX% XXXX of XX% revenues and events with million to XXX the $X.X over loss and million range three a be planned XXXX. with Turning of With revenue financial million to of music margin our between a to XX% XX% at year-over-year fiscal only at our fiscal increase XXXX live to million. of XX% $X expectation internally to $X impact corporate this quarters of guidance be of full Music year-over-year assuming consolidated acquisition increase XX% of Capital $XX The versus adjusted follows. July the the Please includes closes labor the Services on Revenue to X, XXXX. of the profitable

includes million increase including XXXX. adjusted $XX.X million, the following loss totaling operating full given to all festival, in to as midpoint subscribers, up XXXX. and the subscribers a on our grow programmatic of Awakening management XX% declines which COVID-XX, Now, we expect million revenue reductions million XX and million sponsorship XXXX/XXXX And between revenue, XX any the guidance million growth. and and of impact in $X QX initiatives entire did over and $X.X expense midpoint. live lead an not greater quarter and of between in lockdown some a to provide live savings savings XX% approximately I any in substantially one, live, loss of QX, events, our $XX.X our advertising payroll current in some since would $X.X on-premise within forecasted initiatives QX, million in like $X.X in in the such historical customers, to and or QX, at X quarter will to this, Spring in of to at do include music improvement of for we expect we times color existence. representing fiscal production on views, our over revenue XXXX operating XX% all QX, than compared topline the excess Factoring $X.X million year-over-year XXXX revenue. year-over-year of three costs or volatility including QX, what and ending larger as three, Two, million in matching events After

Fiscal our evolution, thoughts. financial diversification in would will progress, conclude our some be cost point radical in XXXX turning our mix like final improvement line showing and revenue I the Lastly, in to massive structure. bottom with

final remarks. on Rob open laser to are and profitability turn and Q&A. focused for can We towards like execution. would thoughts, it Rob? the up That concludes growth I and for line then my strong to we over prepared pathways

Rob Ellin

streaming And Sachs for fiscal estimates massive billion year now COVID to expected than was of of on their up and streaming back to recently reach accelerator To progress is XXXX. paid faster $XX a incredible be market XX% wrap proving over streaming. XXXX to expect for adoption. the Goldman grow the LiveXLive. a raised growth by

distribution, with As physical largely event well We've The audio, and in building subscribers the as awareness. X.X created opportunities music present music, content traffic live streaming music production audio, subscription Along transactional. any LiveXLive global and and center with value. the has storm perfectly enormous events create and these focused growth five exceed stack of We're believe far, paid based sharing, Thus the to billion audience on substantial on based podcasting both our other shareholder of the in a streaming, video, revenue. revenue XXXX. social with generating pay-per-view ecosystem been live and unlike company brand platform over top. and positioned we is live

we meaningful on flow. are purely adding PodcastOne, to is driving attracting cash scalable the national revenue sponsors. Now monetization, a We're traffic generating and focused now component advertising and

that sponsored the we in to revenues year subscription. expect with come to get best our Next management house, team enables the we from advertising are world audience company being a remaining At the in the technology XX% a ticketing anywhere seat the approximately core, with class of world.

next to on $XX,XXX live year. free add back this seen ever come events year, large We competitive with perhaps of base, maybe the AAA per content. not partners, programming for scale till of for Large even middle content paths, the have built a global mode key I've technology, monetization fantastic new curation and a assets, subscriber cost lowest and ownership of and hour great will and music original

win us music reached Streaming have creative great in those new tools, numbers, going well when turn unprecedented artists help broadcasts, come only topping that partners positioned the today's normal the ability the music, it - world live pivotal a to of LiveXLive during bigger are television navigate of We ever music change. bigger than and new time will coming comes back, in recognizing to we ever. and a than and that have is the moment to but industry. not it's back

mix profitable revenue and improved our have We outlook. radically

M&A. of just the We LiveXLive and to very intend look has. still much. beginning you healthy. and are stages tuned grow the Thank any stay anyone through to forward story our to questions and that organically We Stay both of

Operator

JMP question first Ron from Josey with comes today Securities. Our Instructions] [Operator

Ron Josey

given for Rob impact the I more thanks are bit since they - question. have Great, for Maybe to with little the viewers, one with are a On coming am million are XX or talk franchise's back how to April the just that if views about you X, on you else. Lives those two offer so and taking they new those platform? for Music wondering and live Mike Rob can guidance, everything the often And

of view then in sort the timing we revenues potential Present and us are you sponsorship mentioned And the there I'm that it guidance for more new? looks understand lower might Can but help like coming is understand reason guidance, question how about hopefully question, is Rob. insights talk looks and going momentum sort the And but if year maybe just sub adjusted restricted operating bit views? on are in see about back up. XQ, for with you. that very a little as that's the the given And goes with gets you higher is revenue React million to helpful international included lost but on benefits or they international PodcastOne much XX insights included why. can on and partner. the I any so wouldn't then and great for in a then close? guess also long will, loss the live just Thank sorry here How you full users you that's of of and in year why advertising just cash these then on on coming like two how lastly, then Mike So And to details how sort Rob you of on just on you XQ. help in Can question one any why there? cash talk expansion often Long then any

Rob Ellin

guess, one, in audience, lot questions right. I’ll of with of a I lot start So the

traffic most that we themselves. is the the audience the to and - day continue from artists we really unique is because of audience our mix about of So going to come the as from one Ron and talked

to right? because going the Gomez traffic we We music, demographics. of all from You're quarter, from during So Rolling to across Selena different Stones call right? many deal this see genres

and the is staggering hashtags exciting engagements kids putting been it's So XX but which LiveXLive a and video. billion million the X is enough effectively

getting Our some recognition. brand real is

calls. out inbound getting Our brand there, is the

wood it's more coming and subscribers, are years. I in As four The for inbounds bricks think more And those convert and you see there. the to going free you're the to opportunities of know, subscribers. paid been last breaking and we've chopping really exciting see to

in of it. marketing first I do any We our run pay-per-view. was we in didn't that. tickets sold X,XXX As said, It

see on it to to you going know see going forward - going basis. You're a you're weekly

see monetize us coming traffic in. now to You're that that's going

exciting. really is side that So

a side, On may in the in podcast jump minute. Norman even here

was I a think he on plane.

So favorite The as and added unfortunately taken I done think stores. his his plane we Adam join closing Adam is integrating, We've The Carolla, well. late. Corolla we've imminently. to is already deal He company's music two was already where right. here trying

So and variety be know the Saturday that it. be turning think will that podcast thinking taking have with into a your a vodcast, And of to like and third show, stick are a a those show. a you And show, now Kimmel, was elements Ron, Jimmy excited a third just a radio will really podcast TV the vodcast it like are we've exciting I sponsors live, about added, you most really important. one now

Ron Josey

cash? and international the you that and unpacking that there's mentioned make No, want time the sure to I guidance then how does I just was just but curious it, Mike, on

Rob Ellin

licenses we is acquisition told have the critical the internally. or a It international, by question the either will on what street

one and Jerry versus done PressPlay Bebel many Right As you Mike digital licenses Ronnie of and these know, times. music. and CFO, have and Mike was Napster Jerry Gold

have doing times, times own so it So done [indiscernible] we the many I previously. white this. They've people

up will that did an shortly is intriguing this very is time So be interesting an there acquisition and time we right. coming say that

us with those going And there's Ron, massive where licenses that we a head I will and your so one that, you global is give look as opportunity at think those of know to Spotify licenses we of as add you is from overseas. those our know, numbers as XX% coming subscription revenue their all today, and those side revenues coming Netflix, U.S. our companies of

company opportunity a huge for that's So the we shortly. very growth think

Ron Josey

Rob. you, thank Great,

Mike Zemetra

I'm I in in down order guidance wrote go to and your questions, trying So of here. terms

terms come sort combination to from So advertising. some bit coming is mean, our platform. will is that of how React advertising you historical mix of or said I revenue there that? think for the do a about our in previously were going our new XX% be COVID And we sponsorship programmatic some of I that's subscription advertising. little asking impact off That's PodcastOne, the XX% of what to

there will be bit And so of decline little a there.

- government As events. basically the React’s, has far I as live mean we're shutdown

forecast events doesn't to our year. fruition come to going So any this assume are live

to least July. sometime fiscal PodcastOne, on close up, and but feel the does in in happening. additional that we'll event the if future at date. year So this it'll for create confident foreseeable that revenue And anticipated see some very opportunity, open in that On we we're

I to is anything So don't move variably think going there.

about that were included payroll aren't Rob $X.X benefit They some expenses myself down. make went and a substantial cost negotiate $X.X mentioned adjusted recurring. cetera QX throughout that that as Does getting far savings be total the uncertainty of aren't to operating period. of in I the sense? as reductions and necessarily so arbitrary to including million. instituted, permanent as an able were beginning cost instituted we of savings and about for going Those of and As et of loss, both the terms you're largely the and we Those entire quarter Those million in was COVID-XX. before, quarter, result the operating the in

Ron Josey

you. thank does, It

Mike Zemetra

our terms kind for covenants cash before, of our included fundamentally, operating And was as lenders, cash the million going new into negotiation, a that a this But And the account. any $X.X minimum covenants. result with requirement then negotiated about XXXX. million different financial I there isn't entire on as which restricted were of fiscal how we mentioned we of cash cash because always we existing $X.X throughout of put with

Operator

Davidson. comes D.A. question Thomas with next Forte from Our

Tom Forte

get the back my thanks I for queue. then questions. I in taking had to Great, two want

festivals quickly? what's to when then the the ask - asked most and by strategy one How your the live strategy the and you to I want your investors. could questions are full? so pivot return of first And they ones So two I role able in often

Rob Ellin

Chicago team able to and to delivered in be do to the able enhance to we remember is Tom. able the is, which to event Yes, acquired right our secure we've reality right digital that right been really rest only ever took we junior been live question, had they was been what we've digitally, always I we from great million our able strategy, started team than mean and pivot folded as tremendously subsidiary. for core team, take elegantly them and from we've When that we deliver festivals, We $X a right. and so secure. React that to our with talent of the acquired team, artist’s of more with debt were

year. had again, And so so last X,XXX had this really XXX we the And we've see. far artists exciting versus it's to over year

inflection in growing. Rome So four It's an or we mountain. was wasn't - in this was built. think, not built I held five like ESPN, And keep a I'm this drove sure the actually before believe event day just this that fully is to like drive. times point as a this going probably a $XX COVID this this that going BTS would you they realizing isn't read audiences And revenues, in right they're now, did week, pay-per-view these staggering million artists away.

a a and back move billion attend attend come and festivals huge genre we X.X music music. of know of live the millennials so right. also highlight event. and will a I because And music to world live bigger than goes believer as two-thirds I'm live music I'm music love live I live attending big that But you fan music, ever

it to if everything see it's there We're that with it's with proud to still that's our so we them, that exciting we're to across, our Live own come which long but today are XXX in expanded. we full Nation, together a play back going our So just when back, it live matter And going comes like Juneteenth when partnerships catches iHeart, back, really hopefully this with they're to what come we a time Coachella goes to well it events to away. And of April, me. sitting we're time be comes doing announced back. amazing with from partnerships announced

we've that for at competitor, this authenticity believe that music, comfortably we're to and And we've relationships. in that our a maintained maintained in channel platform we've going in truly And around did authentic created an And sports, this concept our anyone in of think can people a really you are live difficult doing that music. and some year compete So being if only now entire a we've I around say Zone it's independence, start. to business hope and Live the and all to there head job. tie an ones much have see the music. the of in There's the as all being very world our ESPN least the like ESPN but with out a plan opportunity be components sitting I that playing to you we four day get

Operator

Our next Co. question Needham & comes Laura from Martin with

Laura Martin

I'd this. me, like understand you help to for me parse

exploding words love So sort monetization. on that about stream with new coupled these going focus Rob growth of spaces I revenue we're talking the you're to and drivers that

that. First and loves foremost, Wall Street always

which feel now was now says to last be All million forma to it's me me. of and gives like a groceries grower should me And X% then, makes going feel this like million, he and guidance Mike $XX pro a but $XX year that's grower? well, be strong double-digit

to takes more me tell at get needs XX% COVID or to it company just it free what cash rising this revenue to flow? So end. growth Is

the like to to match storytelling need expanding a on revenue numbers base? higher Like ad I which is monetization You focus more do how have rapidly of get the margin. stream revenue,

Rob Ellin

Yes let me give you start with question Laura it, right. XX,XXX I'll feed Mike. great

moving now today heard by I and into corporate overhead him everyone business know right positives don't if that Mike operationally, said So from the separate right. the EBITDA

that's been start million negative monetization. We've because to million a was We've a in EBITDA. think traffic building exciting, building even so brand. to So we about $XX really right really $XX couldn't been last year really exciting

lot talked this You a more. about and I've

revenue. a force later now we in three and a now We a to until you massive PodcastOne, then right? terms And to sales months opportunity got massive yet going have Well force right. hire December are of start sales COVID with

live to million not right? So those right enough comes day going when back. that business to revenues. at streaming we to guidance predict that to But some component I'm piece hope Because we’ll this that $XX bought of those React let's counting open. zero that, smart is was previously what We're be of looking of that

the because right next in not Kia anybody we but eight, X, April. months partners very, that so only massive to when MTV is very count cautious we're Rock so We XX, component least, heard you at Coachella Second not closing of first had including right. and major the let's it counting. nine you're March to until of obvious know, and you be because, Is get, we've call you of want sponsors right distributors, July is EDC’s so so counting going we've going help? that and only the of on is And only can't PodcastOne their Right, as that, Samsung. we're and numbers and then last that to not we Tencent, we're those International, any Rio's, conscientious get remember, is that close look revenues. on We're

Laura Martin

on Excellent have do anything you this? answer. Mike,

Mike Zemetra

and of across larger that, little then anticipating from think COVID providers revenue sidelines. And XX top is React, And plus the Yes put the mentioned impacted. in programmatic of upwards we're million having mean, business bit perspective. of our that a Rob I There on of button. hit our OEM challenge you a it a impact advertising some on like is is, Tesla, are of business. on our I kind certainly

at in months plus XX% growing year, nine forecast? when your PodcastOne, year full to So the that of not at for actually take the are eight coming you and as we look you to according

Laura Martin

is say I’ll My a other great assets. perfect that's hidden Right, answer. question

tends largest capital. your to juggernaut you is onto this One Pattiz undervalue shareholder. called brought and he old things of human XX And just is Board year Norman a Street the Wall third

shareholder but so it to Could So public walk call, better about about it's can you with you Could hidden what asset on talk you he's brag? talk he's aligned interests. maybe the through business he is for and missing the can like deal specifically costs what lowering he yours that in revenue a to or value probably you? brings Wall either statement income segue Street value making add maybe

Rob Ellin

getting right. we Laura of deal, proven close more that get that call is history to that book records so is to want before be radio we've text day the think start and with culture Norm I sort a right, that or to right. put the While show podcast in could to and one combine is coming and of and able we that probably I times it, this TV a number seven Well, already add his to in take speak more happening to and eight of I'm And or show be pop podcasting music of right?

a saw podcaster is of O'Neal our just weeks, platform. today right. we is O'Neal, You major us announced event a just on Shaquille with Well deal Shaquille he a a in now with couple doing

I But I lot worried never thought selling a that these Norman it, fantastic yet, is, they're and relationships, guys love million entire selling great. the he's guys, with of lot value full channel. crossover of to and the And you going radio I would And Pattiz’s Bob managers right. I are just didn't to discount about celebrities that relationships, $XX right. I are about enough Mel earlier. - It's people between because you're to our So agencies, have upset machines right. have Pittman, A teams why this built I themselves when Norman just didn't talk the then see start wouldn't to in had the getting and - enough that what We me get right. platform we’re sell we Karmazin,

of people three place, actively to you I've him them. left as this year the right time, sales. four in XX enthusiastic three, know he's We about engaged the with XX, company in on huge, pretty top He's huge about army say to would as great on for half from we addition you down overnight. right Dermot as three right an force seen about of sponsored daily him is you’re a from has excited right also and and him right. And spectacular. excited working And the went Mike is been with as during have about to our every as right, the just this as we've business. yes almost see the Norman energy doesn't basis. everyone's men And deal negotiating a selling just a I one the the there can he ascending crossover Norman XX And as zoom, is grow. and having know, revenue they stop because COVID and But room of some is He's and get his I've So behind him. he's sales about salesman, a talked excited their day parts got just deal I with Because to best continue think can before sales to you on get as Xx any is articulated that and to up forces really and the together. quarter are going guys he

Operator

Our with next David Capital. Bain question from comes ROTH

David Bain

moving maybe kind auto know, like hoping dive share, get that, data any seeing you become little monetize know back was have I higher we I do still early pay-per-view those subscriber subscribers, First, over of was of that? you significant to end I kind it a LiveX. to or hoping of near gauge through the revenue term. of buying, could a already to terms in of to percentage those the you is seems touched typical monetization. potentially kind understanding ticket in on a an have Rob, that's are franchise margins free you of but to subscribers further little into Any points a

Rob Ellin

is, with different then that them into right question credit you one in thing they're getting traffic to very just convert, you the closer obvious, soul. free. sure learning for captain right Laura which - for of asked a asked your and how Ron to going kind But it's know lot in does We're question someone your how coming right, And convert. right. you're When right and card heart a they're it's the and the your funnel, get when

what offering convert, subscriber an in it the for as $XX and really be that what you So And they right? percentage buying could for only $XX, you right get year, $XX right about our and average when when penetration of a they whole is convert. excited come can

lightning If XX% rod. there's converted you a

David Bain

And on an look at that with and our and share play just bit? revenue to get a of little model margins, kind the we can so idea

Rob Ellin

time? sorry, say that more Dave I'm one

David Bain

the share, again pay-per-view On just margin? on and revenue

Mike Zemetra

Yes, Rob. take I that could

terms in David of hey, the stages So early model. we're in this

not you it to producing. to will across Because amount be about stages. in economics of own think And variable in of only revenue building early the just And building to streaming this us. terms are the we're I come on a platform we meaningful going are we're our so, know, share, it as artists, know is but also

in indicative there's So monetizing, but different ways of to still of sort early terms. terms it's give too

David Bain

to speak Okay. PodcastOne then can can front? and be to talent. used talent the like attract And on stock you compensation retain One,

hit talents to declined? in revenue entity are has and dollars You how become And the you seeing about held mentioned, advertising up themselves. a sense some those as fuel has franchises in PodcastOne then get back as some of in kind could as have of advertising it COVID into that,

Rob Ellin

to take want you Mike, that?

Mike Zemetra

take Yes, I'll that.

experiencing side. It's on like in across what severity general. anywhere not certainly we're advertising So mean, programmatic impacts the our there's I to an podcasting

- grower, seeing my impact, XX%. is early going in So stages PodcastOne in historically the kind the was our XX% process be we're of of what to if COVID probably thought that's at at that least

built and forecasts. So into yes our that's all

David Bain

And then Okay. I just and question, last again guess?

Rob Ellin

Just we'll think a start David a I long back, time going of the question, it's our time again back that terms right. David, really in because get mojo just to in question we've for first your to before important yes

stock as it volume makes picks some at record a intriguing. yes up. when little publishers the It to of down when you a more the came that know, we've and converted deal the going impossible back share $X.X was the So, labels

just announced have for Jeremiah is talent. thing and same We've celebrity Apartment. the Naz's think live I we Nelly

and you're them see more all to And money he wanting of we’re want Dre right. made in going beach, did, and equity see Dr. all component, to I an when Kool-Aid those well our platform that think and of part seeing a way they're partnerships, family artists to to going as that more we're as more drink vodcasting grow. our that his and part strong very, more we see as more across more of very and and become podcasting our reaction as you'll ambassadorships think I engaged,

David Bain

EBITDA profitability to and sort fiscal of of I where end about piece least apart And Is trying the kind it at that just piece feed could the of if you in looking final I at one then just a profitability this at positive a and or me. was of that think spoon year? just quickly, is kind this we if accomplishment? sustained simplified of can guidance. kind Are way

Mike Zemetra

hi David. Yes,

Rob Ellin

and we bought me slack years And Mike, turn as extremely right profitability. in XX,XXX it we second, line, was for per that PodcastOne, lost a extremely the publicly a day and same never we take million of loose and let that $XXX half we right said feet seen including of announced two right. we it React, said right. the it's announced balance said terms sheet, revenues. when bottom we accretive, profitable, deal business We When

profitable. and easier, transform turn those these are way right them So businesses to

private So, can management the right. both way termination. work just look expertise we markets knowledge of This our markets. before and the markets public this COVID what and When and make for is is, public start is you still made we to

there. get to Our was traffic starting

some recognition. in audiences move structure the place, numbers. and get our and bottom towards brand more in of economies to place, had started and moving cost towards line get We our Our start more, scale getting

David Bain

revenue on simultaneous new and improved you Thanks ramp guess profitability. I lot. And congrats know, sources just the and a

Operator

with Capital Sign Securities. Barry Spartan from comes question Next

Barry Sign

I to ago, pretty live already a wanted back months that to something which you've exclusively event touched six Q&A, much go had were Rob on. you in the company. is you've And that

a your replace built numbers. successfully to and virtual event your you revenue hit You've company

pandemic? replace they live now company larger the the you or new a come this or built top now, think have when do So Do at virtual looking of during you virtual you so on build from absent having think you year back? the events a they would so business have virtual than

Rob Ellin

talked back so But got Yes, I with enamored live and was long pay-per-view the little a years I my comes XX speech right. Johnson, pay-per-view back Jordan we XX there. in Magic I I apologize We've announced the to may day look lost said going ago, the start, you I always know market in was know it know. you going as have years. I've forward been music as boxing we've lot, really and a about market back Michael helped and

And huge live sell to could - what I'm that can an tickets that BTS there's very if we So the comes do, and to so same intriguing on got and is platform one sold be doing believe what artists, we're far that concert, artist last is tickets, a you a can is to X,XXX Coachella, a combination just tickets what if back, so believer sell without or whether all, thing digitally. over I at right. there any you week you watching it's powerful, I few that watching marketing multiple sell, a tickets XXX,XXX if

heard of hadn't any probably mostly You jam those of fans are bands.

our I today. stream not is think a that brand guidance is is that in new here revenue that there coming

you about be And tuned right, in the have working, tipping, for gifting it. world, our to the we because one smarter pay-per-view biggest to business. coming in I the artists an we think But day and $XX is us get monetize with the to to We stay learn know right. educated, a stream the going got to technology what's does fact that ability enormous when band million is

biggest you the there’s artists Gomez, world them whether had across if was board leader, there's in in it’s So the we platform. the BTS whether Selena whether right on a our had

$XX don't close really So there if no forum business monetize. there I very, chair, today, worked near you future. be of is same us way in a those it still before company, to say, have have can your our to would pay-per-view to a works, has artists no be stay in day. There And that with is because really close right. one a million the a that very We're piece meaningful could know do a pay-per-view band small touring,

Chris we're content all our we of the Garrett going start The playing what's right. And what - just have neither on Rio. to team curation think to home streaming Brown, do is, experience from they happen The performance. the And perhaps, because do from is live it to artists just creative MTV to it's I more about like right. live. and was of going Rock artists in work of who to because run putting see get not going So DNA about English

do to to yet literally see fans that see that I event theater. how unique. tell just a and and simultaneously. more Cargo something right, a a you're in have you to we're tickets or sell pay-per-view excited in right to sell forward it, OneRepublic see comes, to to from to can't back able no going to And going I is opportunity be there more going lake - to of are tickets from I artists look we There see perform right like it's And So an U.S. be whether live it’s else. Open. to as just But someone XG us enormous there's are and

but it a the tipping revenues they standpoint, [indiscernible] it's $XXX which is tipping. effectively and already seen million You're going right tipping, a enormous to iHeart event see from donation we've raised right and coming in charity

having think watch your I music for love, minute. to versus visit enormous a people just coming cards and I love opportunity there's So credit love, and love,

Barry Sign

Next advertising question around revenue. is

How margin? And do their quickly what think table you the bring already to a really are and your there, an something has to-date you impressions? that built know at recently, I How they you've as incredible can up advertising team portfolio? the And revenue portfolio, team focused look many ramp fairly about content been PodcastOne. folks have talked very you're what's but that's you've minimal. said you advertising started not strong with LiveXLive adding you've on to As advertising on monetize until that

Rob Ellin

have, advertising. better right I are, numbers better gave shot So you have salespeople those more you can numbers me the with mean, the you - right salespeople

Now watch understanding average the to when and this start like they of that you from it premise get minutes, right. from watched people it's watch amount the beginning time you'll an that that from podcasting podcasts of like like the XX end hear Norman,

the like you another selling right. is start know, Claw, their excitement Barry it's you didn't I've has night's and that team but is and But I up, as I’ll you unique be want surprised property that I this on see about, music on has their you you where saw didn't to had inflection this think beaten advertising the momentum weekend mean, to that offering, our every me a I to don't think that anything. right - phone this very for feel of we sell if feel gotten advertising feeling going. White moment we beaten momentum earlier time I up we the an tough around and is selling So And just Friday start point. see that advertiser feel excited live I one

and more traffic So because Kias, excited crossover, as I and like going tuned see you're more Facebook, well the stay getting sponsors when Samsung's I feel in the to and distributors right, Kia and think as more money. you're

Barry Sign

My your about, last call for to little dropped in lot things on come teasers of this M&A question both you've and call, is a M&A. prior around

parameters use. then equity add posture, to imminent what kind one imminent you a And about, portfolio? PodcastOne what transaction looking waiting you And you that there of to call current PodcastOne? using and think is quarter if you're stronger kind is ago of caught, had was your M&A what to to have - with was last the example up be wrap you've is that comments Dick describe of is talked Moby what or for a can the still made now of difference a On kind financial are all the us on I you M&A? word the versus out And use to you your much that that

Rob Ellin

acquisition great is it's close, was and very is than right? We another answer was going question. I before super tough not number in there it. is, as right. we our value is we're and The revenues three And company, of which excited $XX.X million market, top that became before. that and that lot fantastic is it that said believe acquisition easier the PodcastOne podcast really a right in that remember shareholder, forward, it up So, for So right, and this the Norman acquisition, in in was picked now about

the in You're middle COVID, doing the stock not during is of period. well that

back stock people of part We're it that stock a doing and see royalties. is middle our already starting not our We're to in range, from highs. the in the back in the but at exciting look to not very our Now going of we're are different better, at some is way right. our

to publishing starting the labels, to said, I again. As record the convert

would I I But I strongest exciting there's we're they there's stay seeing powerful. to the a plan more We're everyone say, you're it's into from feeling to acquisitions. been and going are see another of And as more We're about be it day. a inbounds very to to right. row. the think Barry, right. close so young artists, by feeling are see tuned of in shortly think partnerships. candidates, ever acquisitions a would going I same acquisition many continue great shortly. right, and and felt I going good labels. people always to to and it's And very, strongest we've more to events, you're be, releases such distributors, we managers press so them but too of and on here. the lot we're kicking - to the and about climb. say thing to see, going size, work But They're is Yes, that, a it's very to to this flywheel, Previously, big applies the were tires mountain company, right hard, to and the acquisition speaking And going again, from fits getting more think we

Operator

Unfortunately, only for one question. of out have we time and more have run time

will question Alliance final Brian with Global from So today Partners. come our Kinstlinger

Brian Kinstlinger

will more fiscal be I an lot is - was fiscal asked And been the benefit to that of that A already included ask the of on questions but going Is next international any big rights. a instead there in to guidance, acquisition? year? catalyst

Rob Ellin

our answer reflects or in that guidance acquisition. expansion one. can't I and And nothing international

Brian Kinstlinger

follow-up the Mike here. and had shorter obviously then I And much

correctly, And that paid similar activate every subscription? paid that to that just or - You mentioned if internationally to you I does a being and/or in is have think deal installed the heard domestically installed? the for purchaser I would Tesla, is

Mike Zemetra

question Brian pre-installed is it the Sorry, the on vehicle… Tesla

Brian Kinstlinger

Well the in domestic.

Mike Zemetra

agreed. Yes free it a In the it's domestic with the… installed, comes yes,

Brian Kinstlinger

car membership. in to free the or car Internationally you're buy pays for does or installed now they be that every the for Tesla going pay are subscriber and subscriber installed it’s that premium, have the to it? for Right pays going Tesla, does owner new to paid

Rob Ellin

this. Mike, let me take Yes

test built right. is not it built acquisition, right, have how per or as their no going the of paying sale car, to the right the be to very we churn, us Tesla pay looks as answer or that lease for it things expanding could Tesla Does could the But sure to the relationships direct cost you along some has had breakage along things like tested way the very, have right. that way. all no So looks is get always test, play no - Tesla to It owner the and a that historically, all with to time, a they're help? the whether versus positive tried it almost out. promising car to right into they perfect - going partnership and very in

Brian Kinstlinger

Yes, of it yes, you course. Thank helps,

Operator

you today's as all joining call. conclude us our will question-and-answer call. today's This session, for conference as well on Thank

disconnect. now You may

LiveOne (LVO) 19 Jun 202020 Q4 Earnings call transcript