LIVX - Earnings call transcript Q2 2021

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Operator

Good day and welcome to the LiveXLive Media Q2 Fiscal 2021 Earnings and Business Update Webcast. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Tenia Muhammad, Investor Relations. Please go ahead.

Tenia Muhammad

Thank you. to for Business ended the XXXX. welcome Results and September and Call Conference company’s afternoon LiveXLive Update Media’s Financial XX, Good first quarter

me various PodcastOne. Norm of Pattiz, forecasts are CEO and Executive to, that call based Rob Interim Joining and and some LiveXLive’s and the Dermot like Founder call wholly-owned to include, assumptions of statements Jerry forward-looking involve future statements performance limited expectations, today’s you subsidiary on of including CFO; on and but that and results made Chairman; the are would Gold, Ellin, financial President; risks McCormack, Chairman today’s the not on I statements These and uncertainties. company, are current are remind future expected differ differ SEC the those the could about of reasons. cause described in XXXX, business. from on this in for company’s may ended XXXX, the in for XX, statements, results quarter Report company’s the to year actual results SEC the subsequent on its including March Actual filings Quarterly ended a materially call the those materially XX-K for growth Report with information Please variety Form Form September to Annual XX-Q on forward-looking and filings. discussed which from these XX, future factors, regarding refer

its as is earnings ir.livexlive.com. which the GAAP at financial comparable your company and release, and content. encourages after measures responses call being IR to on the like not November the measures recorded. The that does of company Relations the conclusion this and visit most following investors date Relations find periodically in revise update website to section important or questions, replay to media in reflects is of law, the will discussion, of any is available this to You investors today shortly required the of I’d time-sensitive the will via this the date to as and making the non-GAAP undertake to Investor company’s its highlight XXXX, call, obligation it the financial by reconciliations its And information discussed to of available contains you webcast, on website except company the posted Investor XX, call. information call. The management’s a be view following for including website

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

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

Rob Ellin

business superfans. on delivering and maturation quickly recognition The focused digital performances. live a thank The and world-class accelerated a and quarter of has has bring watching to platform means progress you Thank best talent-centric livestream brand festivals multiple by of for festivals our us business management a joining the first in to update. and team our today deliver foundation Good you, the afternoon development, and board second complimentary concerts COVID to been built LiveXLive LiveXLive listening times for primary Tenia. years offering and fiscal people. XXXX out and Difficult from as around

$XX.X given in along million margin. intent with to is Solutions, in in Personalization XXX% contribution by of pleased fiscal we quarter in year revenue recorded am sponsorship million the the diversifying with component I of of derisked as substantial record excited acquisition the result Merchandise And XXXX. the our and we XX, of have business September raise expected streams for to to the pay-per-view, consecutive between advertising to And ended we’re quarter of our the verticals, of March Company revenues calendar momentum revenue second recently nearly guidance which the of recorded We Custom XXth million. increase That all we recent E-Commerce the acquisition in $XX.X report our announced additional and the revenue close acquire a business XXXX. current letter end see to launch XX revenue PodcastOne. $XX in our approximately ended

agreement a sheet as in over $XX.X including on months entering $XX senior at by into in payment stock convertible a also balance shareholder at improvement payables, improvement of transactions, million. result transactions of our sheet million extended in number common million secured We XX of equity two meaningful our $X.XX, by $X.X balance terms a had financing as The million $XX.X $X.XX. capital increased working a by

pent-up and a OTT to focused Samsung platforms on video linear on TVs which XX XXX stack a Roku, include events. demand music and Xumo, STIRR, events live distribution, has XX a all artists as XX Awakening over Scheduled Apple sponsorship. have has our and content, and now for has the SLING, distribution, in-house artists for grown the trophy expand. of artists and million already April featuring to featuring return expanded events, edge been platform one and that vodcasting, events a be our livestreamed fully simulcasts of provide channel properties reach over X,XXX-plus and of We Awakening of technology six like their XXX platforms on I’m is in sustainable significant production, X.X Over million Plus. streaming marketing continues with is artists happy platform LiveXLive’s TV, Cancun, the pay-per-view, million by which and Today Spring Samsung year. there hour integrated long-term franchises, evolved ticket to talent-first across live Mexico. XXX Smart we valuable last streaming festival million Fire people XXXX, months sales, reviewed audio needless say, building music, demand TV generating late to globally Spring over connecting to LiveXLive cutting XX times both to report last LiveXLive leading social superfans, to OTT live and with podcasting, compared and Amazon digital in over

after us unequaled an positioned live to continue COVID. one of is built at the we shift have what the that forefront that well flywheel is and believe paradigm will streaming We

features events ticketing, monetization include a and all artists. data into customers Monsta robust sold merchandise create and opportunities introduce artists winner us concerts numerous credit our thousands free produced have top recent pay-per-view our virtual Pitbull, which revenue from LiveXLive, K-Pop to Modern Drummer opportunity X for digital countries live allowing millions plus and XXX at over tours, visitors pay-per-view, With share with the sensations, we funnel. with and there. of our Festival, over of tens pay-per-view Pay-per-view to LiveXLive out holding of exclusive pay-per-view delivered tipping provides launch Darius for livestream Grammy grow by XXX both relationship subscription, in New to an Wonho new and of build of register users Rucker, sales tickets

iHeart, and We YouTube, that Live talented publishers the course, and record including Daily Motion. LiveXLive are Facebook, Tencent fortunate make artists labels and Twitch, industry music of hundreds special, to Nation numerous partners, TikTok, Twitter, have amazing of partnerships, other

pre-installed We other as America. is app President we paying for Tesla years, Through T-Mobile. McCormack. globe, partner, The over our now of and to well partnership with company With XXX,XXX and XX and Tesla have that, in the have subscription an Dermot subscribers. exclusive major as is growing LiveXLive deals my Sprint eight the pre-installed carriers, distribution sold BXB every Dermot? around where across in off going car automobiles in hand Verizon, I’m and partners to it LiveXLive

Dermot McCormack

Thank Rob. you,

and with sponsorship the few front. continue deals the Claw, on future. White Pure real We spots Mike’s to Mentos State Hyundai, sponsorship the last Fitness, Fresh enormous foreseeable these Corona, of deals are have Hard sponsorship the strong Kia, we bright the Porsche, we now One expect over obé new Lemonade, Most Chipotle, into SIMPLE of KFC, Gum. Pepsi, progress Farm, is and and months have see Mobile, made McDonald’s, growth

TikTok business. ON, live has An over or continue franchise over produce we an digital our the and billion advertising a an records of XXX acquisition or our model event the existing streaming closed Music complements broke views Coachella and as and XXX,XXX truly which stack, awareness and and our Lives PodcastOne, be ON views July, XXX success live brand than artists in weekly music growing in of streaming. proprietary franchises validated interest streamed week viewership Lives growth all larger users. a Coachella. Music original of livestream showing received which We million average and It concurrent more during million climb, of offering vodcasts is video significant event. weekly value with X consistently that In Lollapalooza alongside Lives countries, franchise. X adding live subscription digital by views continues Music to audience the a XX streaming in than Lives revenue to event, every content this only to the our on massive incredible music music has festival following COVID. any of call component, concert our livestream diversifies The one sponsorship early we Music

an have is experience wholly-owned Executive PodcastOne head sales and overall update Norm our which Go tripled team, business division. of Norm. us With Founder, advertising ahead, give today to and team. count also the our Chairman on We a Pattiz, of

Norm Pattiz

ad It's EBITDA to and a had and quarter beginning turnaround it's to pass the see some good here are very great in great the positive be Dermot. We positive PodcastOne to information. Thanks, at with along economically market.

course very support especially and surpass very, Pitbull, The sponsors as new the and since State XXX true with are with to part PodcastOne the social for programming our with I say the total which podcasts the to Farm, pay-per-view podcast video, of we've podcasts, of very Talkspace, degree and XXX elements the social that a offering strong NetSuite our vodcast important Pitbull, we expectations, that network, think continue build least committed across XX buy-in a like was shows with including over campaign. of audio encouraging. our vodcast, and poised advertisers This Clorox, blue-chip and million QX merger a are we're well-known. and of offerings our reach added launch strong strong of video to Pepsi, podcast and reach expanded the our vodcast, from LiveX, KFC, and

Amanda LadyGang LadyGang million Facebook, what's LadyGang Instagram, of we Tobin million reach with a and featuring past deal a Steven for podcast and a with downloads. the year. in-store health the extended be successful massive Becca with joint Fernandez XXX and leading podcast, excited Jacqueline experts total milestone PodcastOne and more influencers, we YouTube, Keltie Additionally, just has for Dr. the Jac year, We Irvin Vanek, not huge Knight, the achieved quarter, a The podcast next TikTok, another over launches and Cerny, could for XXX and over and a Gundry, across Michael followers Twitter. had of a featuring, with wellness

we of Head our And initiatives Die’s and world podcasts hires, as large-scale some We commercial also and Director would These executive new which overall all campaigns, decade a he of joins key that PodcastOne. and hires at the of exciting he Warner prior in two to of two like quarter Alistair the are Ilana marketing led the announce Head Audience bright. programs which with to over top to aspects will our take share with recently Development, The oversee Marketing $XXX,XXX That's Universal. it. new directors of Funny forward production our I'm this and served the and the positive strong at a had And advertising Production. podcast. industry, shortly, Production. that she'll and future is key or $X.X XXXX. EBITDA. in PodcastOne for looks to marketing Ilana numerous Bros., over details Walford, made. projected all television revenue gross $X NBC, we Alistair mention is good veteran Gifted, that, as us to a where oversee Again, million billion from story. in to sticking division, and in working with I of Susnow, want year

Rob Ellin

Jerry – Interim Jerry, to handing take our over, Jerry, and off you Norm, please. it thanks, Excellent, CFO.

Jerry Gold

Thank you, Rob.

a quarter. the So been it's has it's certainly exciting saying, as very exciting year and been very team a for us,

our across a the KPIs, prior XX net basically a row, million, record subscription and advertising quarter. from net over live which we about including We record for $XXX,XXX services programming increase – XX contractual $XX.X XX, with subscribers programmatic in X% ticket revenue operating loss, report we've year-over-year. of and views advertising. division are XXX,XXX our from adjusted our sales, advertising XX-year the XX% operating QX X% was As of XX% events to XXXX, to still million breakeven up growth licensing, to to large live mentioned XXXX, million, pay-per-view subject with At loss subscription our advertising subscriber were our from the in growth services year $X.X a year-over-year and year-over-year. million in $XX.X to the significantly sponsorship, and ended a revenue due of subscribers XXXX revenue small when this year-over-year On revenue in includes from offset XXXX our in a September and consolidated basis, live in by and part dispute, XXX,XXX, our our to XX% event, PodcastOne QX decline ended subscription, certain diversifying goal a of that revenue sponsorship, go our of and streams prior we revenue from – pay-per-view diversify compared QX XX% in XX%

in the advertising second year-over-year the contribution prior driven $X.X compared growth overall sponsorship Our in over with prior the million to of to as the in $X.X XX.X% XXX% the by coupled was to margin improvements to compared period. quarter, million margin addition in revenue, PodcastOne quarter. grew XX.X% Improvement

million Our in reduce period. the XX% the the operating up services and million, breakeven. was before. set driven million adjusting $X.X as revenue in up QX, operations, of operations basically to subscription was XX.X%, the improvement addition our of $X.X event revenue loss basically The million by was prior pay-per-view advertising driven of Operating a by from – programmatic with loss our from which adjusted growth loss a loss was in the division, and live in $X.X year-over-year operating mentioned improved PodcastOne In by sponsorship, is again, our loss AOL decline I $XX.X advertising quarter

$XXX,XXX to prior the quarter. and During in QX, sponsorships compared $X.X million as in our advertising operation generated

XXXX subscription at quarter mentioned I is as not contractual of decrease subscribers that, to second revenue point. in million, result $X.X And QX a we $X this of the revenue the as a XXXX. compared on This Our are was result million of those recognizing dispute before.

confident we collect in very will to that eventually favor be that that will are resolved revenue. be conflict We our able our

in generated in May we XXXX. Finally, million $X.X pay-per-view from platform the launch sales ticket of our

margin and events prior contributor We per expect loss across remainder event an Contribution can offset adjusted margin, acquired compared throughout number the margin $X.X increased grow largely the this was million which was an in decrease from of continue see as discussed the revenue of $X of to operating loss, platform the XXX% QX our XXXX. average dramatic to $XX,XXX over prior from over to improved course adjusted contribution we XX of year, In an million was business. spent In spent by average approaching $X.X that to to operating as the increased events of in average our produce the expenses cost to paragraph. breakeven $X.X per we at the million of live improvement. improvement year-over-year. and we again, QX, $XXX,XXX produce $XXX,XXX, XX% which prior eight driven event a in improvement the podcast operating you cost, events quarter, in a million of Of large as by of

such supporting and company other rent that executive, to and division, lower as initiatives principally largely the public functions. is cost of finance, COVID corporate increased administrative including loss period. the driven entire areas company, due support prior and from personnel savings one-time functions the costs any lower costs, driven reduction and general to by Turning Again, consists legal

due million in of quarter, stock-based partly to $X.X XXXX organic expenses costs the costs certain $XXX,XXX development non-recurring lower depreciation non-cash by marketing and million or quarter, QX PodcastOne by digital-only the largely operating increased during increased $X.X and traffic to to compensation, was Excluding the operating driven product direct amortization the events. compared increase addition offset expense, XX% from expenses, prior

$XX.X strengthened cash, $X.X we up $XX.X prior by of XXXX driven from operations. with cash sheet. as $XX net our from ended the are offset earning are in balance We proceeds think million million of outflows from cash increases cash mentioned, net million year, QX I prior in considerably Rob by largely million financing

mentioned. my the that The Solutions the guidance. about I due in increase Importantly Custom again, financing the and And talked to item, strengthened we addition concludes prepared previously working of million $XX by of our capital mentioned already balance Rob the sheet remarks. one think Personalization additional increased

I’ll back Now turn to Rob. it

Rob Ellin

you, Thank gentlemen.

As see, built, operate, forward. announcing shortly, grow we and very a but We're experts over about you really to and world-class businesses. have going multi-billion the excited team the a new you'll of team CFO we'll excited who dollar together team the put can sold excited to each prospects and see be to company, the continue really about really

questions up Q&A, so have. And it I'm any open to to going you

Operator

Thank you.

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

David Yueh

David Hi, this is Ron. for

what full through walk on to the gives how what your finally e-commerce how events Second, revenue And with like that progress can did CPS, of integration there? events? look year you then can the talk the plan with future the pay-per-view, then perform on sales us confidence acquisition the And PodcastOne? do and and pipeline does Pitbull of for and you on force events the important you. components around about you Thank for integrate advertising, First, pay-per-view? live guidance you

Rob Ellin

A in one, Okay. of – which let to first. questions me lot try answer

So down pay-per-view $X say we release. a we don't of press by Pitbull, revenues. broke exciting, revenues through previously super we total But in million break did

worked more the subscribers, our ambassador extraordinarily and what's company. the is of worked of flywheel, think going pay-per-view, long-term see to our well, out really and a well, I you're Pitbull out And extraordinarily And he's he's not entire program, but podcasting, he's So right. only it's in that. driving more is in partner

acquisition LiveZone Corona, to repeating and the some sponsorship, as yes, excited that of Music customers. sponsor is literally has as be customers and have which sales that been the about the And December And looking them been, we Corona, see sales a of team. has a almost team basis, and from almost that of AAA well that of of PodcastOne a all people. It's been now announcing sudden you're a talk acquisition And seeing see been now be weekly we can tremendous guy every lives now – part never by to first you got you a that an the at with This as as XX hired and team sales we've terms is the we first to about we've right? then I sponsors, salespeople Pepsi In selling, on of couldn't our multi-year of sponsor single event. we help. list ON or able our fact the time, has last another army more starting Corona

really, So exciting you want really Dermot, the or to want Jerry to Jerry, side. you jump in on that – others?

Jerry Gold

not advertising, for CPS, with about sales our and gave I'm we pay-per-view our – and think streams, we we increase the question is was addition sure I and ticket confident are and sponsorship which in we revenue And greatly can fact guidance. have that heard just Well, the that quite our you've the the achieve diversified that there first what that the to you. guidance

Dermot McCormack

couple you a just little our major until give And to Pitbull, October, of a Yes. delayed color, pay-per-views were November. in including

in where going lot where announced we quarter. Wiz this the a Jeremih, are So about, hitting have quarter, of really so that's Nelly, this exciting Pitbull, excited really Khalifa, see and we ones direction

Rob Ellin

that your question. Hopefully answered

Operator

go David ahead. Capital. our with comes ROTH And Please next Bain question from

David Bain

overall those from augment trended pay-per-view would maybe upon was you well particularly, think events that's hoping to so that's merchandising Is speak from trending conversion, revenue, I that the I ancillary of and it margins and start, could revenue I pay-per-view first maybe that ahead how And pay-per-view the now? subscriber some to of just guess, maybe acquisition. Thanks correct? would we more where direct the Great. or trending had the much.

Rob Ellin

Yes.

know, we we've So is as down. don't XX,XXX What we sold don't you break over can it, tickets. break those I David, you tell

you you've on the of they're very where different a and becoming in So So to right? subscribers card. at giving convert credit than XX into for them, these for free, I you viewers top got then immediately when the flywheel but come funnel. are coming come free, They're million

and into more And see paid in. locking think going subscribers? it's then you're actually of and convert them you day So can loading one, more and that them I to kicking

real artist, right? ability a giving with Bruce give experience already business As in, a and you want hat no you and merchandise. you to we're buy to buy merchant already see and the to Springsteen We this, a while an watching doing merchandise or We're fully different the chat, in or T-Shirt. immersive message kicks going concert virtual

So other own to ability conjunction have merchant in the us it and and revenue specialty those stream LiveXLive. the gives in items empowers or with us, owned artists partnership now we actually

David Bain

Got it.

own And or update where your in Okay. organically either you European an maybe there or we've then acquire a the path, license. discussed any past, Is would there? acquisition global

Rob Ellin

Yes. I would stay tuned.

when between read a him, our for size. big closed acquisition lines, former the CFO If of if an left, was bonus you there material

mode. the proud So my of yes, like or these in acquisition really we're $X very acquisitions still better much just I'm an We at financing effectively was did team. done.

fully from doing And it's we're see is I and the would the everything the you pay-per-view that is on audience performing on right. our could and doing laser-focused K-Pop, our expect little globally. shareholders expanding stages artists of that our dilution very everywhere, with amount as we're to are company by So

pay-per-view all our tickets buyers of over the globe. have We

answer the overseas. operations And exciting. where is, the really is yes, So laser expanding focused

David Bain

positive. great, to wrote All bifurcate a comment for and And and that is was right, everything, pay-per-view hear podcasts a and their podcasts and great. EBITDA you nice us, just ahead

action. in the get others you. on Let Thank

Rob Ellin

David. Thanks,

Operator

Our with Please next go Elliot D.A. question comes Alper ahead. from Davidson.

Elliot Alper

color just be Thanks. contribution I would back your yet financial if the including, know it'll guidance, acquisition. of helpful. the change want strategy Thanks. And of hasn't on CPS business? just the that acquisition, of to overlap, color to that how's guidance the I profitability is be of and this and but the I curious timeline any of the margin is to affect and how the secondly, company mix going the guess, CPS Great. then to into in ask fit any that going a about about there closed quarter

Rob Ellin

built transact, is part the of of this, beauty in the flywheel, again, right, it because side talked side, with you that gets So direct we of it, merge the a listen, the or watch, the attend, bigger a right, the live lot I've and come about, first Starting is also response that can buy and on but you engage a it. is this but can from already into come a even memorabilia hat the marketing. it, revenues marketing, of podcasting, flywheel from in sponsorship, they from T-Shirt, is, they

So own ability those owning imagine products to with talent. and owning own into the the the flywheel, conjunction in our products

energized commodity take to I margins really So and to business it one, ownership. an as side higher. the from way move gives of day built this and opportunity us really continue towards our we dilute Again,

Jerry Gold

And part question, the of already it's other profitable. your

So it EBITDA an standpoint. accretive AOL would from be definitely

Elliot Alper

the then an the guess integrated following number up you quarter? And for is also, And share guidance? I fiscal XXXX could then great. into organic Okay, just new that is there revenue

Rob Ellin

I haul articulated, sharing What ran Norman podcast what say are business business very, to number. EBITDA it not numbers have advertising, it Clearly, would the today. we were right. we a that, a is, very almost successful that to those like and in So and you was as very smartly sponsorship

extremely this next see So acquisition, even will very the right, an profitable. acquisition be Slacker

acquisition PodcastOne have the now have are profitable. very you You profitable to very next and going

like, social XXX,XXX the But now. and right use numbers down think amongst is. media we as added breaking not something announced. where we're I excited about really And Norm vodcasts the growth revenue we we're podcast articulated, So

– growing of of the quarter. will fully divisions of this So these each each that the be expect we company

Elliot Alper

it. Appreciate Great.

Norm Pattiz

of the probably that's grow one embraced the that being certainly, And why I I we're have concept, from And always growth most at is We're that and the really comes this we going like at having going marriage have that's strange line. growth eye hasn't, going by our to audience myself in on to but bottom so think funded a to the that invest much. reasons we this we're that and PodcastOne see which team. good been black everybody LiveXLive thing.

Rob Ellin

Yes.

just everyone, for rushed to we're think because and going finish, I highlight to think off. I be

quarter, our line. look per were up As what at looked be business last where this until at can revenues about focused We bottom company laser perspective company is a now on revenues from this always talked The every can quarter hour. event. per now we

we've PodcastOne getting And many And coming many and so the lives really so right? you and of – award same hopefully exciting of the come as which it's show, you'll that so ON. building added with revenue part the different to the franchises watch have content, be And Music acquisition Lives Music with guys opportunity will into December the who streams SPs award from flywheel in of digital our our an which launched the we've X Producer of Dermot votes already know, the like middle was Executive of over And don't ever most first the of award show. shows. million, December, had still X.X Think MTV you is VMA's, the Production, million, it profitable piece Head and of have now if English, launched that X.X already. million on of Garrett is

And And so we're the excited about the we're the about around We're this goes. where of rest sponsorship about it. it. excited traffic around year excited

Operator

with Hickman go Please Our Ladenburg. Jon next from comes ahead. question

Jon Hickman

did and side your don't on to effect but this wants PodcastOne? the Slacker COVID much question, who on answer know how I advertising

Norm Pattiz

they I'll that jump audience it to very live were Well, very, listening without effect all negatively affected was that of and on certain sports advertising but sports sports on an what's to course, side, the advertisers sports, in products line stuff went going need returning And very very see by place, sports. for talk But affected of any true. being their and seeing everybody's encouraged More thing. thing sell, because us. up make that how back. that held certainly in that that's what of of taking kind particularly to place. back we're an there It's and When which stop audio the sports, products it sell. and PodcastOne talking advertisers. were and terms commentary about be in a came have And That's to live going taking back, them are we categories, come we going they would out this get deliver COVID actually disingenuous. say sure blue, chains have there there Nobody's weren't during advertisers about negatively are they supply had of on in but effect. We're good didn't actually to but podcasts interesting, to

pretty pivot, that to I a to course is medium what a able realize we done Of wind think good And pretty to do. with And up able you're in. you successfully. we in when but of be we're keyword a kind situation, it we've did, at digital that any being deal

Dermot McCormack

I'll in jump And Yes. as well. just

said the on we think broadcast COVID. in But We digital LiveXLive of I experiences, see arm from And had could earlier, had for And physical we've franchises pivot of the things. us that At we canceled. that to were weekly straightforward. we period. premiere we pretty delivering the like Rob because was that company the advertising beginning had the shot COVID, in hundreds events benefited was side, seen basis. we expect we from built tremendous in show that

Jon Hickman

about how that jive it does programmatic So with comment advertising? the

Dermot McCormack

forms, is be really custom really we particularly that or excel content, to when off, is and piece was opposite. down a the programmatic shot the the particularly, we type so custom whether we took shut Programmatic and when makers commodity, into direct put all one built of business our world, business very out offering can selling going the sponsorships. we're all business, at do. Because just music is a a Programmatic to the live of unique direct at a got content but continue but in will heart

Jon Hickman

of this subscriber? Okay. contractual elaborate on little a you And thing then bit could

Jerry Gold

Sure.

to in version certain we of dealing on we're differences of been not – in have our on we process process only relationship, the favorably, time of a view this a first the it. we to resolution and the in of So is we terms. this the under second but somewhere to we come through there, reality, worldwide And the negotiate the with trying are had course contract, it our We're believe the in that we in that. of been longer of definition some position. resolve of And very confident actually the able contract. we've will were dispute, In very contractual this time have

negotiations great know. Tesla. some that of recognition. a it faster, accounting with there revenue done as former terms my but Unfortunately, colleagues take We while have you We public are rules up hoped in tightened get accounting had relationship world the a to in

and I we we them we’re So that very those relationship But for and position recognize in relationship out. looking conclusion our profitable are following this get that with dispute will a revenues. we’re more and XXX% during worked as conservative confident with even Tesla longer it and our will said, not believe

Jon Hickman

it more you Can Looks $X like than you million. quantify quarter? much how was this cost

Jerry Gold

That’s more Yes. accurate, it was $X million. than

press and now You it release. XX-Q at see the can

Jon Hickman

Okay.

you you if it it have So for do get back, gain to as revenue? a recognize

Jerry Gold

I’m sorry. Say it again.

Jon Hickman

LiveXLive, accounting that gain works the So you loss work? as do for a future does if out or recognize how favorably this in those revenues

Jerry Gold

as it recognize revenue. special we’ll Most likely

Jon Hickman

Okay.

Jerry Gold

it it’ll show I it but in because mean, have be I’ll a revenue. to number, disclose up will

Jon Hickman

Okay. Thank you. for it That’s me.

Operator

Please ahead. comes Spartan next Barry go Securities. from Capital Sine Our question with

Barry Sine

on last the okay. Hey, question clarify advertising the And question inventory? were you the my huge doing salespeople Question in well regarding Tesla they new sales existing Are not How selling that integrating PodcastOne – a PodcastOne, and well? are force. brought point. of is terms obviously is, that the my the Then of increase The in in dispute just LiveXLive right, in advertising brought is integration. key to then, portion revenue. full revenue, a

Rob Ellin

to answer me Dermot. then going part, it Let to you and the I’m hand first

back number. the to Tesla go to Just

month, the last paid we down through they May. for because remember $XXX,XXX right, right, you one quarter, number had took a If

look can about $X.X this at is million. you number So

okay, So you Dermot, quarter, think jump over that took in revenues add in could terms the advertising don’t if And what in on a so you forward. about side? why that that going of

Dermot McCormack

complimentary. amazing platform Yes. were because PodcastOne kind one a complimentary, we’re and in we the gone call of was cost together. of maybe deals super years. partner I’ve and we so seeing And Across the board, on results continue the under merging we’re acquisitions The A is has of agencies side the the There multiple it’s selling out, to of complimentary company We the and that there’s each And have us almost relationship of multiple instantaneous. the some have to bunch the results. brands, Pitbull sales deal certain been advertising with is gate. going – most seen. relationships this on – me of that we’re see out was on mergers involved over inventory many have to the able success and to

Norm Pattiz

think are the companies has. business iHeart are successfully reasons Look, side like created do we that offer department other something that deal one platform Spotify. to did offer our know else business, get to that business, area. in of probably that together position to the to Media working I in that bigger because, audio or what primarily are one companies first was and whether in in it departments no have successfully, great podcaster but What place at podcasting surprise opportunity in to now in – doing the nobody something as a a sales doing be premium podcast we’re to comes there the it’s this of no wanted I a all the has sales and they’re the has why It business, the had and our from

podcasting other Our on the things also salespeople daily, the to forth. back talking one and are side. that’s passing each information It’s driving they’re of

be One, company. to going music more focused were We’re things a lot Westwood a focused. we music are At that doing

be owned doing, edge all by advertisers you the department everybody And cutting of we your the the need that’s cutting exactly for that it’s LiveXLive sales to artists But working benefit bigger being for nice way. and the first. and back and excited assets having have edge keep on So course, are to music we’re on of what and of consumers what a in things. doing in exciting business much

Barry Sine

Okay.

lead Just long. pretty the for I time and sales, on is advertising believe subscription that point,

potential salesforce not Correct? believe the yet full what quarter to does I represent can would this the So in and kind do. is of terms of come best the

Norm Pattiz

statement. fair That’s a

Barry Sine

Thank you.

Operator

Our next Partners. from Alliance Global Please ahead. Kinstlinger comes with Brian question go

Brian Kinstlinger

Thank you. Great.

contribution that’s revenue trends or us predates more You highlighted that going it quite us kind recent model a gated give but some COVID. per forward? Can helps revenue given trends CPS, of XXXX revenue you information

Rob Ellin

we at $XX this very stated said, much the Yes. The PodcastOne. to accretive going balance million do it’s look to it’s accretive going to like way sheet. be plus would to this that would publicly this, said, I they’re year. We going I to be EBITDA. We think And

very be very, profitable to it today, every the similar to success thinking to the the and acquisition of for PodcastOne Slacker of be of is I’ll in similarly accretive immediately. So that the going how is success very this way company and that

Brian Kinstlinger

events, subscribers there more Great. pay-per-view thought prices higher maybe a that’s discounts is And to at then, to recurring consumers paid adding offering to the model?

Rob Ellin

some including see see of see you’ll that may and podcasting, subscription coming. relationship, you’ll And crossover material some of Absolutely. seeing in that you

it $XX as them for that turning can for the business platform them you on focused. share. crossover to it Spotify, of from bring things. you Adam keep right, to all a subscribers using as and us They’re as coming, going subscribers The into subscribers, for our is, is companies, million we’re right. in again, the who’s audio is, to And the and use right. well flywheel new paying of O’Neil, commodity very see materiality amount certainly staying material diluting same subscribers. part industry, they’re and revenues bring at using the percentage long-term big of we $XXX versus that our it’s They’re podcast to in is what’s drive that the We’re two business the is beauty Corolla putting into podcasters as subscribers it basis, million for leaving, T.I., Shaquille very Many inventory a happening right? laser And This is well. the in right, unique has of which of

have right, maybe I the a get podcasting in in couldn’t and all Pitbull, deal, they saw be immediately, want is Seeing streaming the better are right that a over. and So piece it the best a to think much going inning. margins which to participant all you going what’s still live the it. And first them about because happening both that. than third the in continue in better any you that for get how second right. be Pepsi flywheel, pay-per-view, you’re magical, of you those to confident, advertisers see buying can pay it have you see inning, as – I are to And so think of is these better, now quick sale industry. who inning, to our and Podcasting And because cross is drive can is that

Brian Kinstlinger

million you Last sponsorship $X business. for like Great. this in with a question like talked Is I guys and about number last quarter have, legacy a there quarter? advertising for

Rob Ellin

Dermot? or Jerry

Jerry Gold

you Well, back the to go first Yes. to have question.

in of difference the the – think quarter quarter, basically I at can’t difference it second if advertising it you That look and in really well, way. you that me. I open first sponsorship don’t do between comes front have and the

Brian Kinstlinger

Did get partnerships. announced you’ve bunch a up is a to or you – just it of mean, I trying grow sense. $X in the million

Jerry Gold

Yes.

growth live streaming events pay-per-view And this our additional and say there advertising all growth I think that resulted and that the came came way, is that sponsorship would I from acquisition. there’s around done. it we’ve So the that from

those. increase I think dramatic in

Dermot McCormack

to of abundance to relationships Just over are these like relationships of that a add to series extent. single, a shows too. not season Many so they’re certain

over and the of go these So, many will several relationships. quarters

Rob Ellin

December. quarter, to highlight they September. I and to announced got look Wiz to other October. We pushed just you It the next detail, got those too give Khalifa And pushed all you in Pitbull ones, to much can’t again, multiple as October, we and going November, was announced at obviously but happen

more So just pay-per-view, most the infancy is but of pay-per-view, only getting part I credit to exciting. we’re not to card. event the going that well And a is be as in the just both you’re pay-per-view sponsorship stage see think going pay-per-view more couldn’t as way see you’re matures. it important you’re And events, of

of I those going coming percentage that’s in a more subscription. on that’s coming is of to that So converted and the superfan the we’re higher at higher and you’re top coming in, think to consumer more see focused funnel. the which And

the call converted X% or we subscription. stated X% last I think in to

Dermot McCormack

got subscribers got all we pay-per-view, got sales with work Rob, to conversion really And to merch us When on bundling pay-per-view. to we We sorts the opportunities. just flywheel got and to and we a the that. sponsor different add of works,

with work, it revenue many we’re it when of we the does events hit and our all really doing, like Pitbull So will goals.

great So, just relationship exclusive part know too, artist. pay-per-view big have the that is opportunity a of because a the such advertising with we

Brian Kinstlinger

right, All thanks guys.

Operator

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

Rob Ellin

Yes.

events with and is thank thank music typical Live you from time. want EDC or events staying I in happen live for to None and this our happen my completely shut tentpole React. this Rock was Rio did down Just of during team remarks us shareholders final not year. of

million, revenues. plus We’re really property in $XX or Spring excited. events normally year mentioned live today, Cancun which trophy Awakening, to launched We we right? music Awakening, business, do in Spring and live we a So month XX was that the million $XX XX

video like that We company a sales. in to the world ESPN come Roaring be my and to More team of more What is I We’re events, there teams, And about drive and music going it’s that But live to way we’re money to it Twenties. music. back humbly to people dollars. live the And the feel come it’s to billions along, going factor the the going only Live happened? back see today was came and and thirst is is done. and wouldn’t to right? really the right? is it driving positioned not the and really more only COVID be players, is billions attend billions same XX that music years ticket next-generation sales. get believes just fear And going prove when day, sports audio also like ago, excited one when will be energy is and streaming

My sad and that, literally Hyundai very that work. to bankrupt. put that real And of help with to were we happening to events I what’s sponsors gave partnered to and the it’s money thoughtfully going is live think inside theaters Porsche community. the team put artists

and in positioned been what that. with do world from with of we’re between grow the able multi-billion we’re All will proud right? this them. the really we is proud flywheel again exit have position I some in really sell have entire and here. tickets who to when sell in to that only company And that digital the we’ll sell Rock we Rio, doing will executives both production, to And think building dollar we’re and over, top subscription, position So world EDC, of businesses the the tickets, we’ll the built way both sales truly the and COVID is we’re everything of digital in build world an what

great we going to and So, We we’re have. grow team have, great this we partnerships survived and bigger bigger.

with And look I quarter. in So appreciate support I talking next your spending forward want for today. to the and appreciate, time really to thank everyone you

Operator

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

You disconnect. may now

LiveOne (LVO) 16 Nov 202021 Q2 Earnings call transcript