LVO - Earnings call transcript Q2 2022

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Operator

Good afternoon, everyone, and welcome to the LiveOne Inc. Fiscal 2022 Q2 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. Please also note today's event is being recorded. like Chief the Financial I'd to call time, Quartieri, Michael Officer. this to conference turn over At Sir, please go ahead.

Michael Quartieri

and results which about quarter for made expected Thank Quartieri, differ company's a to and you. and financial company's future September call update filings CEO Presenting future Rob Mike on Chairman; LiveOne's results to in period variety today's refer the business. second this expected XX, information the call XXXX. the Good including afternoon, myself, financial Dermot from of SEC company, materially President factors, and call the company's may results McCormack, the could with discussed Executive cause welcome Actual those on actual and and Vice ended X-month statements, Ellin, are business and June for on Financial conference President; forecasts some future Please statements not XX-Q growth Chief reasons. the other the the including various performance report regarding year filings. XX, Form results quarterly I'd December of are Form These and quarter are remind like on and uncertainties. to, the include, statements involve expectations, call that you -- today's of based Officer. those to these and that for risks ended XX-K XXXX, current forward-looking forward-looking and statements from annual report in sorry, company's on described XX, March differ XXXX, for ended limited materially but are to the SEC on assumptions the for

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

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

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

Robert Ellin

LiveOne X to the The ago. time transact. engage any events components the the to XXX% record the delta in again, more remarks period unique model Mike, and prepared everyone, we the $XX.X we you you, intend, and watch, leaving -- fiscal which live for brief good a team, our QX and today XXXX variance. We and planned to for for how revenue QX. on Quarter months plan same push a Business team in spoken Q&A. LiveOne Call. joining COVID-XX that create Quite events delivered have year or associated compared of first consumers increase to our thank keep complementary of live an without even and of often, Update offering our million businesses flywheel and $XX of and Thank XXXX, listen, a of business synergistic of million fiscal has Results survived all QX, favor Financial afternoon, thrived and into us in Second somewhat through necessity

Let me repeat transacts. that word

and events, offerings. to creates upselling the integrating is when deeper further high live consumer The unique through kick pay-per-view merchandise NFPs monetization bridge to opportunity for our gear. digital going events business premium with position will and truly packages, customers content our and that and connect connects. model down in. a the are products into return have fully live ownership We including funnel Everyone poised with of with And model optimized live membership music,

multiple have addressable subscription, in markets each streaming, live We music multibillion-dollar OTT, and podcasting. live specialty merchandising subsidiaries, events,

We and each X are to music return revenues of events, next expect record for thrilled to quarters. the live see the of we report

music music unfortunate the Midwest challenging autumn currently an tickets. weather We sold Equinox, artists and XX,XXX third featured festival, which October We X first a all festival and over had X festivals we live and largest and electronic in we lineup XXX ranking, next our conditions, performing held vessel Although live members. on the major is springer booked signed over concerts XX,XXX Chicago, months. have we over of XXX music

X all amount to year and discounts for touch As shortly going in-person podcast paid enormous and and provides ticket all purchases, created views, content. that and the pay-per-view merchandise merchandise user I paid of a music paper membership future pay receive events on and forward, of any while view all events will live discounted like per NFPs our

grown Our and growth. deals. entire well continue wholly job, aggressively and over over And downloads September advertising podcasts its done producing owned XX. has to months shows of outstanding week. in podcast now entertain than added new The both more pursuing impress billion XXX recruiting XX grow subsidiary, the has team PodcastOne -- podcast episodes podcast as exclusive trailing podcasts has an sponsorship as continues per to podcast XXX ending new to experience over X.XX robust franchise XX with metrics

streaming subscribers. now had expanding the with eye We over on keen our and month. a million We reach adding radio continue Slacker, of subscribers XX,XXX service a audio paid our grow over X.XX subscribers to paid Slacker

to and know, listen X-year Slacker paid as across sold well preinstalled which major a well in every for LiveXLive carriers, North in may in Sprint Tesla cell those with partnership by subscriptions. as subscription you test is radio their T-Mobile, and mobile America of as many to a default now cars The across Slacker in Lixilackrap as automobiles XX their subscribers as devices. is pre-installed As Tesla, Verizon, exclusive LIV-X is directly radio car other allows

opportunities for are pay-per-view, Slacker well automotive sales a we XXXX, Android especially generated $XX seeing Since as default our X, the partnerships events. pay-per-view U.S. over in launching in and compelling as radio We Automotive. partnering with other service, subsidiary related through OEMs other of live as May white-label outside by the Pay-per-view growth BXB new platform have pay-per-view million

media culture in quarter outstanding and to of our over owning pop events October pay-per-view will boxing sold bands. alone, inputs next producing live renowned for called hybrid subscribers January own look live a over new and event views. million events the more in of of Social and X forward all buying stream franchise As pay-per-view and gross and off prices the entertainment and we come on XX,XXX than lineup success June, women artists esports coming -- million pay-per-view XXXX as in music as This self-made featuring X prominent exhibitions, well social K. tickets

drove in XXX,XXX gloves XXX,XXX [ph]. LiveOne members pay-per-views of Social over

would take shareholders. public of our you hopefully know, We for plan Dermot about in our XXXX, introduce existing last new separate to marketing company's to Live spin X a in LiveOne, many XXXX. to spin equity original intention distribute the of events. place content I like details investment as provide As before September a President significant now portion and anticipate spoke call, that is of XX, programming, commit of more those out out business our I and March we to In making efforts. pay-per-view company McCormack the announced LiveOne to

Dermot McCormack

and everything LiveOne to has stated, to just Rob an unique as creating shows, a IP and And long-term Because event not programming. we are franchises in creating flywheel, invest to and for shareholders. that from documentary a made to are original and Rob. a content you, podcast its we developing Thank be just major value developed LiveOne unique our our commitment of can a into product, market

X we past and invested subscribers. have new over memberships quarters, $XX developing, marketing the and which both implementing million franchises, in revenues, drove our Over

year, including potential and we lockdown to the self-made for documentaries. television lives snubbies, lives to launched number franchises lives Over to have the events have of the into chance valuable believe awards, we podcasts mention and a develop shows going film, and the presents like-by-like and become assets on. forward, have music past that on, the music that music Not

is We grow a to continue for its yet Baselink countries hybrid which basketball and and plan festival XXX over global XX returning amenity integrated third this most with our ambitious installment lives, featuring unique music physical tournament of successful from performances, and first-of-its-kind Miami participating. virtual and with a live November,

franchises partners. with to live and music is expand, episode be milestone musical to crossing XXth hits Our continue recently like-by-like advertising presents our on and have proven the big other

as public design another acts and of major at the of is in up, Edition, complements like of breakout results. its spec, breaking DTS audiences and our its finish to solution push I second artists Gramophone edge of out December positioning, signature talent brand and our well international Quartieri, by other our approach operating to relations model addition the their This which discovering marketing, review business plus is yet it awards, hand and self-made advertising will over and closing than service boundaries amplify we is and this where artist successful leading to management. aspiring advertising entertainment to company, the the media beyond. but tier services integration divisions, it in flywheel innovative would acquisition to as liven going. platform expands online search of an platform unique that the graphic more development further work, add acquisition social month, our strategic was artist a deals and across on artists This our company now unique are business PR, in providing representing like history. who advertisers and City-based QX hybrid brand And music for CFO, Mike we with our closer I keeping due the with The announced in creator to also development. acquisition our artists Monsta sales to also develop and known will to sensations, The and builds would specializes on time like Live X-figure and and and York approach. our brand New for existing end-to-end The LiveOne's and any to K-Pop scheduled Ramapo, our

Michael Quartieri

Dermot. Thanks,

our to a results. We minutes results to strong a to XX% a brief million, 'XX $X.X subscribers and Contribution Let September increased ended me million, growing XX, margin year-over-year increase period XX% spend million. revenue fiscal six was revenues XX% record with a with year-over-year. million. QX provide our overview adjusted loss month to few our of XXX% contribution margin $XX.X ended QX Moreover, while with for increased to in paid net including KPIs, increased $X.X $XX.X $XX.X operating XX% the current year-over-year million, record

the For QX in quarter, up revenue operations from acquisition in $XX.X M&A podcast adjusted losses prior growth fiscal the to are of and adjusted growth The of XXX million, XXX segment as the adjusted additional year-over-year prior is X,XXX,XXX year certain by of $X.X ended by operating the large which we $X.X part negatively dispute paid our 'XX corporate comprised from in in total that quarter. a is was driven $XX.X company's at million which million. improvement operating QX the with margin Please due currently year-over-year XXXX. contribution quarter was revenue. and advertising pandemic. current in a reported in subject million result XX% 'XX our that compared $X.X of loss loss driven to $X.X year the million. to The was of $X.X to are by in was results, increase successful operating year-over-year in paid costs for paid The XX% paid consolidated and growth income increase million, not compared loss addition in advertising, Fiscal consolidated impacted activities. CPS offset included COVID-XX improvement CPS. subscribers operations of subscribers. by The to subscribers We Fiscal increase QX year of subscribers, subscribers paid operating million adjusted a September on prior are from increased the subscribers, support recognizing XX, note adjusted was contractual the our to compared operating net 'XX the to

in which prior advertising record the For a $XXX months $XX was of paid which to The and increase represents year-over-year The Contribution merchandising increase $XX.X by ended period our $XX.X driven increase increase revenue from to XXXX, the and ended in million compared the subscribers, sponsorship events, is all CPS, revenues X-month our ticketing in X, up margin million, driving six aspects for compared flywheel, XX revenue was XX% year additions podcast as September XX, and is was continued prior quarter. the September growth of which million previously our driving year events the revenue, of return the revenues. the live is an driven with outlined. along of increase million, in period. in pay-per-view,

Our impacted entire listener grow marketing flywheel long franchises, our by was continued believe contribution negatively across run. margin increased campaign of growth strategic the over and XX which to compared period. loss period revenue for September attractive quarter prior investment The to the million returns was $X.X operating year. the marketing loss we percentage the in live a and investment the in $X.X our operating result for Adjusted year event in base will yield current month increase our beyond adjusted into future the investments six the ended content in to drive million is strategic

We Turning including of cash $XX.X balance restricted $XXX,XXX. the to cash sheet. of with ended million,

the hand Turning and as weather let our year paid in Rob. exclusive to on our investments result over inclement for adjusted fiscal from to increased between financial new breakeven COVID-XX to estimate and income continue back And long-term segment events, a of live million Delta million our content XXXX, impacts original with operations franchises associated and memberships. driving our revenue marketing we well guidance $XXX and me of and variant reaffirming $X for now, our to guidance it spend reducing as million, $XXX are operating the of as the on

Robert Ellin

truly for a is time exciting This LiveOne.

We we subscription will fans announcing that a our soon believe be in compelling major consumers. be one development membership for and will and model,

Next a well. we over members a be will as and for Thursday This analysts members after going time subscription heading forward. of the is $XX to an with our This John at press press, existing the XXX,XXX conference the uniquely shareholders of average company and close, person. the where holding join now unique welcome driven positioning is to membership that we is have per and we business

the flywheel a press prepared opening position to live now really events, envelope you in that really are As now running. and we're hit

future our and banks, a which We $X our really line company we an want the are had each in share thank for is members. Q&A previously will pass we for credit very excited announced for rates now We're the business X.X million interest This I subscribers, hope increase reiterating have we that company, -- you. call. XXX,XXX that joining. to look position low And and are everyone substantially. And million today's we any time for buyback of the we the Thank got the that right, exciting to at near and subsidiaries of growing forward to

Operator

Please today Global comes ahead Kinstlinger Partners. Instructions] our go Alliance [Operator your And question first from with question. from Brian

Brian Kinstlinger

numbers sponsorship the how platform you parts talk other this you that speak us ticket average gave you price, to spring Hi, revenue, you great. the of -- maybe results. and Can and on as monetize Can well great maybe Thanks, event about you own? awakenings.

Dermot McCormack

Yes.

can't tickets as go So right? buy as views will you $XXX know, opportunities merchandise. is paper member what is ticket and a as much and in buyers tell by too well live those but becomes the to average to of into I detail, our to be ticket, offered you now as well events next NFTs could live range price one Each ticket of our as the a of we

highest company. as prove for know, you just Sponsorship the XXX truly X We had. time And go Brian, sponsor we years that sponsors sponsors over X had flywheel. before ever over back, we And we've for exciting this the ago the we've company. have XXX as company that passed So to now was COVID. in

Brian Kinstlinger

And paid than that become for a a for just a a you to clear, member? different be for member, paying is they when subscription are Or year? them

Dermot McCormack

be hear a of special for that. get revenues, with get pump But the or is your in months But you'll right? you drives the paying we'll subscriber, Then X them convert And that. into long-term to for year, press, call the the a funnel, then as month, right, X automatically color going more and we're on well top we'll a Well, next more holding them becoming Thursday, subscriber, which little bring obviously more advertising of purchase, into whether at a it's as a music industry. obviously which conference objective the the you're lot to you'll members... subscribers

Brian Kinstlinger

so Got pretty whereas and gloves, it. were social And margins clear, quarter own be you thin. event, your didn't the first the to

You own this event.

I self-made, You this still also which own quarter. is happening in think

margin be the Is events an event substantially so better gloves. should profile of of those And statement? social the X accurate than that

Robert Ellin

No.

more events, extremely shortly. own have on franchises in franchises get them, way clubs that right? profitable, and right, and it. Social to look we'll life you to you control environment When And bring very our our was test these clarity at the right, we when

out So we're building substantially. those franchises

clarity So together. These lot more these have trigger it's more franchises we have you And as we'll the have them, get including And built the franchises, we a unique been to really years upside watch that. built own my in franchises when of and I've over to we way. businesses exciting to Movie them But know, test value them. come enormous all on a Brian, much off XXX. did of

Brian Kinstlinger

Okay.

new strengthening. advertising you're queue. seems how talk about adding then one, that is in be and lot brand Lastly, about a you this business to the performing of talk for content improving Can Maybe your I'll get podcast back environment. in demand

Robert Ellin

which, an I over And doing was advertising dramatically added, turning new required a now podcast business amazing podcast right are it's off now. think in moving substantial that know, podcasts. spectacular starting you're really job with time. traffic. He's at job see as just on is hardcoded the you to done [ph] Yes. like Kira And we've the taking XX that of of

watch the views last weeks, million already news you XX on we've them X of over If X.X with announced them.

team and we what history side, going the so and the people a be couldn't of about X with for only side we from the and help Kit done it revenues of the XX-year them sales understand So recognizing I XXX -- do the not that podcast them are brand franchise. and on production, and marketing overall full more them we play, that excited the where it performance is deliver give have

Operator

And question follow-up have Instructions] Partners. [Operator Global we a do Alliance Brian from from Kinstlinger

Brian Kinstlinger

I revenue Sure the bit phone, being part you flywheel the see maybe but results. tried to into little then and trailing your you XX upon and can Gramophone, discussed how EBITDA in go of can build those And about months. you've talk as a

Dermot McCormack

Yes.

really super pay-per-view focused events are the continues as on in the And up. over So move the joins he who a had disclosed These growing acquisition. events, continue we and exactly that you biggest He on to many together a the and It well well band today we right. to super huge fans. brings this of is others, our the are what's chess watch fans Founder of on team a including ARPUs this, of market talent, at Maverick. the has ultimate watch echoing our company a talent-first unique though, and is haven't is our BTS, happening. to revenue President the are [ph] it; Eshai Monsterx a going footprint the runs exciting gigantic as line gigantic really heart platform are a has not fast the and both revenues breaking [ph], Earth as bottom as as as K-Pop is management our history pay-per-view into hit

to ARPU year, our membership, X.XX% subscription. right, membership And from is Our last went XXX I this over on today. our as year in our said, $XX

Brian Kinstlinger

the now. XXX,XXX to going are events you're none increasing or to results out -- Tesla's. Great. that that paid it, maybe having think you several And obviously, that's your Hertz subscribers. as where are as in is a the into base And ordered the hopefully year build? then, be longer -- starting get flywheel out of do term, so, can where members right you take converted I paid subscriber to this look --

Dermot McCormack

just this that and right? think the stating that is starting momentum going many I see Well, get, corporate in. That to exciting, Tesla is of $XXX,XXX to kick we're contracts really is first just we're

As to continue minute going subscription any million our grow X.X and And I a pass pace to fast mentioned, at subscribers now, membership we're both monthly our right? going now. we're to

of We're talked going XX goals. And So grow, watch you we've than per model year, look as to ever out able talked achieve that you we're to more about this confident those as we subscribers, million X-year to XX,XXX getting about right? that a month. subscribers be

expanding subscribers. have We starting Tesla Now to us raise corporate able And over be do may the But any seeing to Uber's this now that And company of job globally. And right, as time North that. we're the we're technology our come fleets, allows talking And about -- of globe over to to in. record to core be that substantially going to to us. all our and in about with falls label start be same XXX-plus corporate be you're this magnificent right? in rental hopefully, shortly. for XX do we'll XXX with team space. XX a able really start growing in a we've that has we excited globally, cars, is a with right, see to all built this to from unique done relationships that now white thousand very around American to thing of cars I'm labels XXX,XXX companies, And the see the number those side And taxis, car orders.

Operator

floor Ellin and over that, end question-and-answer we're turn for Rob back gentlemen, to closing session. the going any to like ladies today's to with And I'd remarks.

Robert Ellin

of joining that $XX number. want everyone for pretty another round COVID. we and million It's I the through team thank finalized, Just thank revenue to my hit amazing fighting for

from right, we did year, million. $X was up million only knows, last which $XX As everyone

growth of row. in now, is years a almost this right, XXX% X So

million COVID guidance it, had telltale opening between have guidance our $XXX And is but live -- see in million. reiterated is We would up. have if The We $XXX still variance substantially. that variance we again and the signs raised here, the

lost see but that coming quarter them it's the this I think everyone really opens my about quarter, And And really we patience. and that fast. record the starting right back to time again team to I signs last the unique We in talked revenues to everything a now and telltale us, and growth. again, gone I I Our dramatically, move are I If market in it's continue, want over business. coming coming. forward for next our our to flywheel for rest their exciting this surviving X thank to the record we up are year. for of look quarters, can live that and is with the we We lost the lost we've live events all time of a be here through. We XXs roaring have the for going live that XXX partners. thank

We have coming. events our tentpole

appreciate next social like and way your looking I time more they Thursday. call single to become you, member now LiveXLive, forward Our buys a every of coming glove ticket, merchandise conference consumer are but in the that time. like a everyone, Bison tips, our NFT, and going I'm buys exposing to Thank [ph] next is

Operator

and call. We thank we'll with Ladies conclude you that for today's gentlemen, conference attending.

now your may You disconnect lines.

LiveOne (LVO) 29 Oct 212022 Q2 Earnings call transcript