LVO - Earnings call 1 2023

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Operator

Welcome to today's LiveOne, Inc. Q1 Fiscal 2023 Business Update and Earnings Webcast. My name is Jordan, and I'll be coordinating your call today. [Operator Instructions] I'm now going to hand over to Aaron Sullivan, CFO, to begin. Aaron, please go ahead.

Aaron Sullivan

you. Thank welcome the update ended company's XXXX. and conference financial June LiveOne's for call first to morning, and business results XX, Good fiscal quarter on call remind forecasts involve you and some of current Ellin, Sullivan, Presenting expectations, made and CFO. I and that are various on are statements uncertainties. myself, on today's Interim to that and forward-looking risks Aaron CEO like would the call today's are assumptions Chairman; and Rob based to, statements results These the but growth statements not limited including financial include, of performance future in company, and regarding the are future future the expected business. expected Actual a from variety materially those for reasons. this call results may of discussed differ on company's with SEC on materially company's refer differ ended about including actual from subsequent the these Please XXXX, forward-looking the for filings. described XX-K for March report results the annual to XX, in its and statements, to factors filings year information the those Form cause which could SEC

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

company information reflects revise your not contains or to call. the responses date of including discussion, undertake Following as update time-sensitive management's information any the to this of call, XX, does questions, required of XXXX. law, as by and August view obligation this date the after this And except

media and replay on in shortly is it conclusion Relations to company the making following available highlight to available webcast, its the being the to a the recorded. and Investor like call. investors The be of website section call I'd that the will investors is via

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

like Rob LiveOne's turn Ellin. call to the CEO, Now I over to would

Robert Ellin

update would I for good for webcast. Thank year us morning, today fiscal you, like financial everyone. our joining business you to Aaron, and and quarter results thank first XXXX

the reducing first We in an promised million acquisitions, X positive completed We announced $X with our a quarter and have by now expected over consolidation as EBITDA. overhead our $XX year just on EBITDA annual the of basis. costs million

to emphasized have streaming or EBITDA In forward addition, events to as we GAAP platform our live our this adjusted and and well our profitable allowed digital time expanded not significantly to and were largely positive some us pull audio line These that achieve path be initiatives as while year. positive of eliminating deferring expected and earnings.

to first We have million as are the in that adjusted we achieved well GAAP the announce positive company, earnings. history EBITDA pleased of both today of positive the $X for as time

] well of $X we and This announcement when to [ Our adjusted of first $XX end was between our was a increase quarter we'll QX quarter, be of guidance and adjusted major I'm for previous EBITDA with as XXXX. and million there room $X is million. a further, since our to about increase of fiscal telltale XXXX to $XXX,XXX partnership our bit see be million million compared pleased fiscal able million record the $X fourth last labels. the improvement into little and guidance signs EBITDA the to deeper above between may talk $X.X

$XXX million. our to million We $XXX of guidance also revenue maintained

debt made operating calendar to of expected level. alone EBITDA staggering We've at quarter of to our is enormous million the digital our second $XX and Our all business balance sheet. million of in recently XXXX. progress $XX generate We a revenues extended in record short-term

of LiveOne an myself. completed X our There's stock Board additional the from market a stock by as of portion current shares have we million repurchase shares repurchase buying of number common well program. far, Thus members of a substantial my of as open

be will buyback the stock future the substantially levels. in remains that if expanding at near pursuing and looking We and actively these low

shareholders million Put you its stock it be PodcastOne give all undervalued dramatically simply, parts, sum our who pay-per-view that our includes subsidiary to public shareholders. our Slacker shares in of spin podcast financing that July an and $X.X value receiving we we over part closed as spinout. is as to announced We which $XX and separate of now PodcastOne our the of the apportion to out intention of units. strongly in XXXX, own LiveOne at have feel In company XX,XXX that million just will

of pure-play of expanded in all major exchange. growth distribution available this America. over now PodcastOne July will new PodcastOne the and around by vehicles cars doing over believe making launched We the North completion robust successful in that Tesla $X publicly XXXX we well PodcastOne podcast revenues on quarter. It in been company the Android trading with XX We acquired million experience continues of XXXX, since to only our and spinout, in stated podcast our With have stock in have $XX Automotive in we partnership be revenues. series for the billion national

one top And monthly only in grown our of PodcastOne per in week. podcast uniquely list and July Spotify, of July Apple, podcast XX Fox, the over has the of franchise iHeart. has and XXX for to PodcastOne left million. in in podcast of puts the podcast exclusive its X all with podcast PodcastOne platforms of its Podtrac's top The -- advertising U.S. U.S. more publishers the ahead of podcasts rights ranked world. and companies distribution content. can sponsored through Samsung X.X the People ranking partnerships than PodcastOne independent shows audience PodcastOne was Barstool. XXX on access exclusive it's of #X and with episodes CNN,

fiscal We to our separate anticipate happen announced and as our to spin out company. XXXX. previously rapidly We that business intention it public a pay-per-view also moving expect in

user every sold in stations paid and a X-year know, We with is interface Radio is LiveOne our through the brand-new you single added of car all pre-installed Slacker car exclusive our to LiveOne's podcasts directly all by Tesla, many refresh memberships. those within top vehicles. all Tesla into the partnership recently new Tesla America. Tesla of for As in completed membership

In content Automotive, including seamlessly into on curated streaming Google enjoy XXX December, broadcasts, service, ability original LiveOne we in without LiveOne's in-car a platform. million over streamed up-and-coming our and on us PodcastOne need had vehicles the over use library stations, car experience podcast to white platform. of device and that via consumers Android X,XXX launched your Automotive, gives with any and of songs, within radio XX the giving we've launch integrated us music over to takes mobile distribution to the the and car label allowing many exclusive content to X the over current Google orders original The

OEMs: Android the cell now of and T-Mobile. well Dodge, app Automotive continues from LiveOne Volvo, Verizon, and in Chevrolet, Sprint preinstalled is The virtually others. to major Lincoln as course, carriers: over Ford, major automobiles see Nissan, other all as, wide adoption Slacker XX

programs chain, smart well We've their restaurant by with seen watches membership airlines. Tesla opportunities BXB just loyalty partnerships exercise card part equipment, compelling issuers we service growth like radio automotives credit other to grow to and as other for be and major of as as other partnering default Slacker did with

members XX% billion X.XX that million of Total estimated paid free revenues. XXX,XXX of paid members, million a a this addressable total are hitting compared A path net As as report TAM, June streaming increase had subscribers. we or million. last X.XX number paying company over over that or XX, That $X membership billion XX year. including We to XXXX. XXXX, see to recent subscribers music for industry be in by X.X puts at to now over market,

Slacker able the is addressable TAM, well to capture audience. less in of average could over If revenues. XX $X that that was of just X% So million billion mean the than X%

result advertising sales in we sponsors of that I from division, successful pipeline grown X And LiveOne over would growing. well now. the to like over XXX of integration add and the sponsorships have our and XXX as right our has to a

its than any and opportunity see time X first in X-figure in PodcastOne fact, million-plus weeks sales has for seen we calendar an In more history, deal. time XXXX the an

to back results. Aaron XXXX to like hand Sullivan fiscal QX now our would you, I it Aaron. review Thank over to

Aaron Sullivan

record in KPIs, increase spend in Contribution margin million million. a the minutes June including results fiscal 'XX. million few our provide with XX% XX% ended record And to fiscal was to our overview adjusted to fiscal $X.X EBITDA revenue QX in just XXXX a of first an was members loss along to Thanks, $XX.X XXXX, quarter XXXX increased of for XX% Rob. XX, year-over-year. paid in I'll a a compared XXXX. $X compared QX

loss per net $X.XX or net in in XXXX. On versus $X.XX share loss QX of share a a basis, XXXX posted a $X.X million U.S. record QX of income GAAP per diluted million or fiscal LiveOne $X.XX fiscal diluted of

XX% comprised sponsorship ticketing advertising, ended For the XX% June of and XX% ticketing events subscription was advertising, quarter our and XX, XX% the sponsorship, and in XXXX, compared year and period. subscription to event prior merchandising revenue

million recognizing X.XX Not XX, certain members, at June including of million X.XX subject June dispute members members QX included not at paid XXXX. paid contractual with free a X.XX are are increase are a which XX, of was for compared as ended net the numbers million currently We XXX,XXX we total in members to members XXXX. reported who Total revenue.

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

let hand back it me now And Rob. to over

Robert Ellin

Okay.

the COVID, to surpass cash subscription everybody, [ have pre-COVID Just [indiscernible] now [indiscernible] well [indiscernible]. earnings [indiscernible]. right we for the [indiscernible] [indiscernible] the X.X growth here, inception, this [indiscernible] keep $X.XX, [indiscernible] ] XXX will grown read right, we make massive Slacker to starting the built now of that record truly we And [ very the now higher since over market, to in have [indiscernible] couldn't equity [indiscernible] $X.XX Radio above [indiscernible] flow guidance to the and we with partnership higher a X finalize the ] surviving watch is million to years, reason I and unique that goes, [indiscernible] now to [indiscernible] And royalties the to flywheel some [indiscernible] level. grow recent well

up that, well. of open proudly With as I'm to it questions. I'll [indiscernible] earnings

So now. any we'd happy questions, them be please, have anyone to answer

Operator

[Operator Instructions] Securities. comes of Sine Our Capital Barry question first Spartan from

Barry Sine

with Rob, me questions. comes is moderator clear. up. ahead The my can but just you anything, do if let go don't your breaking know audio through FYI, I

of look significant your quarters First EBITDA, revenue? hit how do of do sustainability expenses a numbers up positive next EBITDA the that ramp-up the is sustain you looking What versus over positive guidance And in ramp XQ. the as revenue like? all, to X for you

Robert Ellin

question. Great

end of everyone hopefully, And quarter can third So as the you we our know, will me which fourth and hear have tentpole happen quarter. of events, the of some at beginning clearly.

event media extraordinarily So you're [indiscernible], healthy time, you know, very, have as it with but as social was we to very did margins. big last right, going our profitable

So very confident that. we feel in

is to the two Number energy the continue business, temperature focus numbers. line changed we out bottom of has as right, take on our and costs

see more You're and going more, right, to EBITDA.

You grow those see again us to raised right, $XX big to and opportunities saw potentially EBITDA, of just to $X guidance million the million we again.

excited really line where we're heading so as as heading. well the And is margins about bottom where are

Barry Sine

Okay. And on then events. live

You social tentpole event, out media called a just event.

be also advertising to are your and in going You've requires profitable, events sponsorships. the that that only there to you're metric going is past that be said --

So of event, the you can sponsorship events the that doing on back mean type profitably? good if have getting you you're that visibility do about this that talking so getting into does

Robert Ellin

may and platform right, our are -- right content of all of now creators, to to to the and in their costs and services, exceptional us as community, we're to delivery now I getting go that year. earlier, articulated They because to Barry, to I who continue in our talked for owners, pay the a every Yes. distribution festival down NFTs, see right, front right? success of down. about want lot, our that talent, this of turn have to then, the put marketing size production from on sponsors Those opportunities you have us. content our visibility gone I mean out costs And be content we

community It's platform, much billion is We are paid time. and we of [indiscernible] to last getting we our of all that upside and our audio, our Social this ability that has podcast, it little upside our exactly that have on Does being no sides make grown the downloads are in with drive very very the a of the the we and risk right? it. So what Boxing with to new risk, with we not every component sweet sense? did across And lot our company. that with billions of spot paid now because of XX on of got

Barry Sine

year, on important sense. the you've of the That value, that makes tentpole a But events they flywheel brand taken And you of this the events. need and a pause in building longer Spring and to mix the question cetera. value a live long-term to company? the know visibility kind to Awakening, the do brand visibility have term, of lot really company are How these faster I et spinning build keep faster? longer-term and just of

Robert Ellin

we mean the of I as as always Now of is of ESPN, most We ESPN this I've of responses Yes. it's droves. in do. And advertising that the just lining we part events newsroom we of right? right? up some their fees advertisers they of healthy. literally paid some know, some up articulated do. this, for, nominal see you those they're very own, beauty just so the rights, But for lining they and the sponsors in, rent right? now come And and them music,

more But company the first bigger And paid. the let it's to sitting largest of right, million-dollar again, in on audience the just the for you we alone traffic, going Barry, of time pipeline deals in get have, prophecy, history really have be of history X-figure the the more the self-fulfilling that this company. could deals, opportunities you're

Barry Sine

question, And there I of around and There's the interrupted one was can't was see pretty on I insurance cash inflow we that comes non-GAAP prior still status last there? what know still proceeds that? book statements. the that which out storms. cash the that by might from is kind that in just item the cash my Awakening think financial due, then Spring balance. is out significant. you that think that Is And What's I And in? when the in

Robert Ellin

the just this moved made of has And a made extremely all the absolutely. can they've been case tell lot New into public, so just but just company we recently difficult, in They've that Yes, insurance they progress York. have I you.

we're could be contingency worse be they lawyers And there they of a could overall And have that soon. damages on settlement to caused by millions there us, our win not react payments going offers the think should it and coming So day all making millions X. business, take and dollars. basis the

the for there was mean down conditions, entire the hours, right, no heart right? of of I question shut X.X weather festival. through The event at was

opportunity our like a count hatch. good chickens we before there So don't think we they have and we to

huge there's lawyers and think the have potential I not would there, contingency. certainly, taken

something we So may see very soon.

Operator

Our next question comes from Brian Kinstlinger of Alliance.

Unknown Analyst

Sheridan [ for in calling This is ] Brian.

the podcasting First down question first please is, subscriptions you revenue quarter could from separately? break and

Robert Ellin

to Aaron, ahead, down break think I from do yet don't you But we it want go can respond to Aaron. that. that?

Aaron Sullivan

subscription prepared in gave I of the the Yes. percentage remarks.

back that. I'm So here. you of into just it can following kind up

for can that add quarter. subscription. the we is So table Rob, And XX% million then revenue. that's of the advertising a actually, $X revenue quarterly and I the will in XX-Q And see that podcast-related, about say out primarily breaks that

Robert Ellin

So it's an exceptional number, Brian.

will almost continue bought just growing us million and rate it's now level right? doing an run numbers, acquisition to double in at division about know, is be That sitting may us. on opportunity we to in The As vehicle If also a revenues. this companies. put acquire for $XX its podcast just that other we you those PodcastOne own podcast

adding we podcasts many One almost X and basis or as that can we of into And weekly pass Barstool as you slot left. a keep independent every see, the #X just only month. networks on others

Unknown Analyst

All right.

expect pricing And going the sponsorship do any your regards forward business? advertising economy, on in pressure in how podcasting? trending Second, regional CPMs in on are to you and

Robert Ellin

is huge is is but this important, that's mean But difficult way passing on much the only it's in billion, to feels And It the to of podcasting $X lot so and $X revenues. Sirius companies. does always pretty Apple I right? for beginning. beginning going. it's quickly. reality $XX advantage where well, the like billion a have because of market. billion, attention. and most Media you its industry paid in these getting but billion think I billion $XX Spotify inning It's the have $X is of a Well, more a first only The

seeing more understanding talking more really super fans moving a and podcasting we're other from into know advertisers that enormously just that. because to digitally, you to their platforms and and and drive the direct it's creator is response, product So moving successful a in and is sell product, a way actually performance what

one going places. be very many signs right podcasting. now, market gain to telltale seen share we've healthy Even So there going if a different they're in that is there's tough to a in market

Unknown Analyst

you with is see fears the the agree pricing But definitely advertisers? pressure now right that. from I some the given how do trending? recessionary Sure. Like Sure. on CPMs

Robert Ellin

Yes.

So terrific. far,

this there it. healthy downturn are now in that networks. we're not we've extremely have is preparing pointing seen case in We advertisers point. podcasting right seen so at far, podcast and But some utilizing And where certainly signs and of

Brian, and right, to see on together. the our just road, flywheel, LadyGang Jay on pieces how more the we're and more Carolla of We've talked more more. starting As the and Adam the I and Cutler you have about, road, fit road had

podcasts more background that of and Wachsberger that And of my it amount film. the to the television are see really We turn and the done owning to know, our that are drive own right? and you first to our So fun and Patrick television partnership from more more not with response, we've shortly in direct had strong of that Last sponsorship, but those podcasters, revenues what announced and to merchandise is generated. third going as windows to shows. we more products, live conjunction I've second our film. additional in we and announce podcasts know revenue with least, and We'll start going us, you with signs and space,

lot a out there's that it. revenue of So come of streams

Unknown Analyst

All right.

last has that doing one for And Could to rate about improvements? you like subscribers? guys get members think question. paid success been And the converting you to Just talk you of conversion do are what there?

Robert Ellin

driving right? blow where around of we've users, pretty and to we're stay I going away consistent. mean to think into to XX% bringing kind conversions. I stuff they X% our be don't going you that's more going consistently watch know events. you it. be our is of flywheel. the around really of our to depends like We're to and XX%, from. been is our We're great free I getting converting them X% used This brand -- come It But come brand. to XX%, these some We're it think sponsorship

think done network. that a starting competitors really again that an a brand amazing We've paid get to against to of, years, we've I across are amazing right? massive XXX and and starting in the get job created our we're production. there, out all for in partners a all paid play X building built was for. for different community I get skills the We brand paid

we brand as numbers growing see strong really are the becoming So really well signs exceptionally well. social valuable, is our that and

Operator

Jon Our next Ladenburg. from of question comes Hickman

Jon Hickman

Nice couple a ask of a was model fairly in I There questions? quarter gross Could by the way. margins. jump significant

you be forward, similar? have going Going margins when to are events, tentpole your

Robert Ellin

Aaron, do that? to take you want

Aaron Sullivan

Yes.

tentpole slightly on than in So higher we we'd I the current a think quarter have margins quarter. expect

for quarter our will quarter. So the I XX% as the in our would current to to be closer say around blended XX% tentpole opposed margin

Robert Ellin

how accounting little the Jon, a in. looked jump And that depend on, just is right, -- of to at. that of going is bit A to little

the and things As company, we going done and consolidation to looking including concern rid We're things, the the also our of a many forward have but know, auditor, has getting that new to exciting other extremely restructuring Gloves our previously was you at it big was accountants like revenues was deals. a the -- was of number It lot BDO like that valued high. Social barter opinion, the a extremely where in almost way from right?

on. other weren't of that were to hand. on of you getting number, You one -- part sort the any margins were not truly going hand They

multiple we're more XX events. big big know -- next in So as announce well, to would to XX I the see event we and going days we're about going to say, that, that

Jon Hickman

quarter, And right, not big the the quarter? is the event slated September Okay. December for

Robert Ellin

it it's a the ever in bit NBC fourth most third that think and more beginning careful that, quarter. of end so a creators we The would that Silverman, of I want publicly called created prolific be to the partnership a announced at of likely little the Ben, with quarter, reality But little the Ben Office. and right, show TV is one I

right around now And so and numbers show heavy reality negotiations dramatically. with -- these could to in I many do a could Ben networks are be that of TV change the

want tremendously. little about change it. our the to because It a be picking careful structure date I can bit that change could So cost also

you. show FOX, dollars the tens that much Netflix, a to think UFC. what did you so on Fighter We're the drive behind HBO Hulu, a of of Ultimate Just or like if had spending for show reality very millions putting

Jon Hickman

Okay.

in quarter. Okay. But going that September we're definitely, not to the see

just I the -- to reductions, right. model wanted through the consistent expense So the they could of -- make had that are you sure to relatively And be that year? for remainder should I then we

Robert Ellin

Yes. Yes.

Jon Hickman

And last... my then Okay.

Robert Ellin

we reason guidance... our the So raised

Jon Hickman

ahead. Go

Robert Ellin

Yes.

So right, guidance done reductions able tremendous the from the masterful these production cost our marketing top, rising been to are of job cream Aaron we side, consolidating side, a talent of has side, and to top of businesses, to expense raised a be the out amount take those the the really we've is sales business. proving and again successful. extremely reason

really finance can couldn't putting hard it So And and the this of of prouder is and the together you work imagine COVID, lot the I piece to be easier. X in in heart it's has puzzle that team done become our right? consolidate Now a of companies Aaron consolidating. how

Jon Hickman

little own and the going are going tell of percentage us bit to in, percentage $X said do when of and that to done? The existing percentage what LiveOne think is might million own and that investors money it's those went the the you a own company what what shareholders all PodcastOne? raised, you you last you Okay. on could Then my question, elaborate spin-off could

Robert Ellin

in be less give -- X-K, states X-K is XX%, of the not $XXX it to sure than me up give X right That's will that more exactly. company let right, you be out Just than what right? So is publicly me Yes. Aaron? will valuation. Number the Let right. no IPO, the the just million

Aaron Sullivan

we XX%. maintain will Sorry, control yes, Yes. of

Robert Ellin

Yes. All right.

right? million right? So You've did million, valuation, in got put $XX $X million, of want figure if So right? about you can dilution, You did going you there, a number whatever XX% that that range, somewhere you in that right? right, existing kind And any come spin $XX then we're staying range. be we shares that, in to of out shareholders. to going that's include, above to to spin That out will part as XX%. to that that

-- somewhere It'll day and will a very have number. it that public be margins. be XX% shareholders right, healthy will EBITDA X, will right, But that And the it X% to out range, massive very XX,XXX positive, to shareholders. right? will to healthy great spun a right, in community with profitable, be of be be going size profitable,

really we including gentlemen came lot to those, the own. and other were of advisory things that, who believe on really Bornstein, So just members, and their out of Gray we're done keep proven some excited ESPN on a run their really for right, Kit have that an they that business and job and exceptional do own, it, business their team of some can John, operate the and of Board NFL our the network. like Steve built that and And ability

the active second we You roles proactive to in. company this a now may and take have bigger for in that like company be see more guys them

be next So exciting only it's months X the pure-play really podcasting business to maximum. the in to X

Operator

H.C. Next question of comes from Kevin Wainwright. Dede

Kevin Dede

investments a you Dede. you're talked doing whether improvements on lot you're Kevin or out, experience? making, else at enhance can speak the in all cost to to pulling it's you about platform software anything Rob, It's you're the

Robert Ellin

Yes. that's basis. a daily on I mean

our greet meet a built right tech partnership San you technology have We've platform NFTs, In out Elon for Polygon. others. that of They on Qualcomm we've building used announced of out do and Tesla. an we've Diego, continue platform. for world-class a that amazing team and added to Musk of world. They a digital onto job know, with LadyGang As and we

built by This is in-house. all team our tech

We'll upgrade a prouder in added the just just couldn't them. alone, we've of podcasts upgrade cars I continue to Tesla and that And technology. of just all So did our be them. complete then

expense, continue has it not been number, big and big a a to So really team cash product Really do able the upgrade make that in world. our product just right? that best not to and a talented the

Kevin Dede

Well, one -- know the time one some Slacker platform you give at I were all is you that tech but point, that ago, merging complete? mean with platform. was I us Can

Robert Ellin

platform sure I talking not I'm tech what about. you're talking assume you're about PodcastOne?

Kevin Dede

assume you no. know to Slacker there no, that to before some it better. that's It were I need was back was in think upgrade I I things -- No, done. that acquisition. that on in order have it

Robert Ellin

utilize they're always had. them, NFTs, project grow also. -- whole brilliant and we'll to with upgrade, able And Polygon, this able like the a always mean to paid Kevin, it's and we projects have literally team right? I've we almost group Every It's for build-out doing, -- team partnerships, to We Yes. ever that month, right? is done, They're the candidly, but any they're our partnership is our continue it's including always it's we our Brad upgrade. for tech there. give the handle, best NFT And I that platform. and

content. going large in our need right, to we're partners content continue large leverage, that believe audiences, our and large to and distribution So

distribution million billion do with X.X live and must We'll continue must XX have content As those with to more XX deals, our to X.X of million massive anyone I've to more music. have and eyeballs, always BXB said, from audiences more and billion. more

Kevin Dede

hoping any the quantify to there You more producers NFT is of could about mentioned artist-first Maybe bit development is you that to attracting. speak way little you're sort how And more NFTs, Rob. talk evolving. I effort? content your was platform a

Robert Ellin

and than mean only going the NFTs, sitting NFT is going massive transact, create them them up say, do could well and distribution. no and try in of coming conjunction right? in out XXX,XXX Social it greatest their our both thing to as listen, grow our with what did do we with We're not We're going side, with watch, the merch set to different own. So to date I you that we're world and is of and leverage world, capital we the backs world. to right, the the to on as created in right, right? metaverse, our engage, million we Boxing, to say We're $X them partner here partners in sold in the out grow to that right hey, their is

Kevin Dede

Okay.

So step you about if to are and your take back, that can coming we NFT leverage trying capability? talk artists over they're how the a

Robert Ellin

Sure.

what around and paid tremendous paid paid the to marketing services. us for us to us, right marketing right? us festival Social Milwaukee, They off for start with They if what for they deliver They getting sponsors, it. built with we And who T-Pain And produce liked in we to built gave opportunity Just paid produce it. we with our in our risk our it, have paid his NFTs did around the built around merchandise it. bat they did in no hired right? distribution, right, upside to Boxing and

So and all on our it's platform. just --

content, us that we're all instead for well getting and as that and So of paid paying paying getting audience. as traffic

in We're with now and doing right, LadyGang, thing a events. participating live live just those Same event.

on growing. and did a piece -- with platform. talent, other streams perform right, XX our just We revenue over event, night, charity big just same night one artists had the we New of the

is artists think fans told biggest X,XXX in into their biggest and LiveOne. come social their watch our I media Kevin, thing So play listen the and all of now X,XXX thing -- on that platform, take the artists

Kevin Dede

they're of you that Milwaukee get the kind Okay. many how X,XXX figure far guess at to for to those the the structure? offered, try I'm them NFTs Is you And look gone development you keep? as to for there as and you curious of Can Given margin way rev any about just having of of paying talk do I build then how it, Rob. really have about example that the guys out much them?

Robert Ellin

Yes.

back, through got for collect to paid the We And single accordingly. right? on the came $X Gloves paid came right? bring paid use ours, we pay the step We right? Rock. as And money ticket a to pay-per-views. $X in us, to got we it all out that paid got revenues which got in. all then right? going We the to We because come it's merchandise, money. They million. Hard the NFT taking us, paid is every million an easiest, platform, All the as everything to runs us for the the sponsors I'm So us, for Social So and example

we So XXX have. in every that, in we try on have XX to component one that position every of the of healthy XX, points margin

Kevin Dede

you an on taking us internationally? give Tesla where update platform you Could Okay. are in that

Robert Ellin

industry in -- mean you the in as I of is this parties with come the top if I X-K is herd you usually a XX X table. mentality think read LiveOne X-year record Yes. right? music that to the partner the It's telltale sign, now week, multiple this labels, a

I under up us cleaned balance strengthened now. we grow, right? that going to our publisher, we're of on going sign times, deals to to up sheet. labels, X-year our going get And think proved and you're We've the every we're to We every X- the company. payables. toughest We've see perform, the cleaned one

be, every EBITDA instead is cash of stock big earnings. And right? just of took dollar right, think record this could If royalties, b flow, X labels is a, about is and that, how

well them why of win this for the self-fulfilled It's drive fourth to them and we've So think take for EBITDA we part helping that's raised a raised I it. equity, equity higher guidance it's well of the they us as a quarter. substantially time is going earnings. And more it's Their prophecy that as go right? and as

to chunk large like a become that right, cash way earnings. allow more If you paid right? our Just of music way think industry. that $XX we've coming more you partners, X revenues, portion into million or Imagine said saw record X profitable, gets more business, or have our flow pay they labels come it, it our the become they substantially, -- If that have we right, to that business. subscription-based there's from us and right, are way of audio raise it, means

remember, and we to if that and $X.XX this EBITDA now, partnerships, In a if year, no-brainer really build at where potentially what number and right, continue forward growing, of having also we million do the we those and of at going believe for $XX then these margins, read go you I $X.XX, imagine model under-promise, going We growing just the to Universal every face lot yes, can Music going that, are at to be Aaron numbers speed right think upside right? to that if where is keep going next numbers. looking is we've -- So -- So forward continue those exploding. of want may have quarter. you and years car other yes, to and that right? If a is is Tesla got deliver our that, these ago couple to that a royalties took X-K a to continue in partnerships about EBITDA

Kevin Dede

solicit labels Do the That's going, take What in order to of though all was best Tesla's business licensing? to of all U.S.? you their record have steps in kind to I the need order for need do outside you cars where Rob. X

Robert Ellin

coming X-year means able signing next the Kevin, be between The our to grown line, in the relationship is balance additional It reading it's European deals. Just and pay rights, it's international confidence now signing to next The quick. step coming like the sheet, ability the the you're our in you're has level. fees to confidence deals.

Kevin Dede

right. Okay. That All helps, Rob.

Robert Ellin

XX% Spotify each to subscription overseas. just about and models, quarter. and understand, XX% Think about their U.S. about all Netflix and revenues are is talked we've And these again, talked of -- this we've

one including smart prices white be win opportunity can radio. Tesla together that our of the tech growth these collaboration in massive Elon. is to a be are works business, and for there's your LiveOne. our that So so Elon, this It reasons as And much label as can everyone some of we so team lower,

an here. have ego don't we Now

and seeing So more you're more of those BXB partnerships.

with As is bottom for too announcement world and these a about you. label not saw just Automotive Android of and going too all positioned you uniquely with that saw They're the the the to white as you aren't ZYNC, the Spotifys recent brands. those announcement in We're line and work confident build to profits. much which very being they've powerful, comfortable big, and done revenues too and It's about they're branding. BXB very partner, are

Kevin Dede

that remains or on comments means case, the And financials, Aaron within if that Rob, Okay. XX% spin-off. Did retain clarify just the that regarding to in correct? the you to understand LiveOne correctly that's some I consolidated PodcastOne XX%? you're going and made

Robert Ellin

Correct.

is when One networks We crash, expect left. both has the parent have pay-per-view company, one to that independent valuations, at market been been this, month announced PodcastOne and up which consolidated only $XXX It's risk the you inside right? one bought to of we're Sirius [ ago, the in be right, you bought. else in to to ] of that his heart obviously, podcast sold The a of the world, O'Brien huge including Everything for Conan this million. only that

right? $XX cash $XXX If in revenues, million you story, million go paid for in they read Sirius'

someone a the one well. of So is of be but excitement and the buy to did business this there that that energy lot if we quarter, here as around $X also risk parts trying million obviously, exciting could

consolidating So is but and keeping is Part JPMorgan. our of with is them be it and defensive. to them, it did part of objective offensive we re-up

our we stock we to multiple fashion and good to making different we to here before make times and job look Our as ways that again run it and $X, we're a at we the any sure a that all for can sure the fiduciary in fiduciary, monetize get have shareholders. $XX is shape that

Operator

Matthew Our question from next Harrigan Instructions] Benchmark. [Operator of comes

Matthew Harrigan

Zoom aren't vehicles to to entertainment that. pure Eric Since concentrated, really or do on it think yet, Pandora, that play what market, there it. et on cetera. know relative and that's that live term or of attractive [ Spotify, side just that's needless engaged say. the to VR I'd I'm it's sustainable the AR I near asked public a out know you advantages but intrigued you trying your that, although such Maybe some like kind think question, through over to cautious have mean an video I are as for I on streaming of in interesting ]. -- who side he's lot years well, people naive entry how the X of very very and Yuan advantages the on I how sustainable the aren't some get level. are the sense LiveNation, about

Robert Ellin

the right? content, talent creators There those way ability, ability way. unique right, It media ]. the social there And ] great that's the because believer I'm and X got companies sold live stuck industry and I last more $X was a now way a more huge -- music, a almost wide so to for And where ago, [ now, right? right, [ we wide paper billion, And my Diller festivals, such white open. question. And left actually it more live And have smarter. in they open. believer we Barry way liveone.com huge streaming. you've the a music MTV audience left in was sold concerts, and a I Yes. are ago. to this has years XX reach It to wasn't were in XX because we're years was their streaming. It's

maybe from lot it is easier a right, go performing on little days media we make a a Like better no money put business MTV, stream said on No And in on is in Japan, that can I about artists over music, Those from X,XXX know the do in XX our social done it on millions absolutely millions friends. live are did digital, the So streamed live, going It's on part we've different they about Dodgers, put We travel they right? artists team their listen Rio has and theater. the ESPN we've digital Montreux we've X earlier, Israel everything media. artists, full engagements not hit right? if skyrocketing was COVID part Yankees, sponsor to they to streams, it festivals and a and I world had not dollar where whatever their or And hybrid world. the China, because X and and by this, the platform. media to do their is and for star fans told it to they in whether Rock we one come mean I to do as favorite LiveOne. to Bieber, of platform In but than night, pay-per-view our in is and is, those our right? And consumer some and they out tested live, billion EDC, watch the like back spend continue their dollars engagements week. going that Rangers, you got in did explosive pay-per-view. did numbers tour. right, Justin what is repurposed social it's for even up to it watch, and Jazz him we go perform Korea, only think the Earth. from We're biggest digitally just all Nobody was Or going artist, their the same. a it because X,XXX perform performance, mean, to had Last ever around works sent of the across it. My across they night, EDC think a young in right? We've the K-pop opinion X,XXX that to and has $XXX,XXX have woke growth it, humble a every right? I out All alone, across billion biggest artists watch and grow. your week, XXX in put have

My belief you have in sold. attend. people Rock fans, million a dollar amount and watch had when XX million people there's So Rio super like is X

is really expensive a people dollar for to on $X.XX they ticket, Brazil the average. what that $XXX pay in hit a you It million pay If just on is in ticket X Brazil.

million the artist's festival, the of weekend you the the If right, you manager's revenues, X got stream you created of $XX times goes in the hand. brand-new writer's that $XX, revenue the got hand, a $XX hand, into hand, just agent's million,

to penetration amount increased music the you just everyone dollar the substantially. And of in

billion, unicorn right? its think you you and years reach to the believe massive to can ago a which around there's $X.X truly remember, I social And may a billion, business ability be Independent world. have media our own. didn't I opportunity, on So years XX or ago, Entertainment, pay-per-view went started $X.X the I

United You're reaching the States. just

I event selling night. for very XXX,XXX if think it see So one tickets one massive risk there's a just with you handle properly. little opportunity we

Operator

for We any so hand have no further back questions on line, I'll remarks. closing the phone

Robert Ellin

thank to your I want to just So finalize, difficult everyone appreciate and market. a in support

proud I'm that bottom million a Xx of to the EBITDA number. were as positive We underpromise from my to Xx our $XXX overperform. going of company to of continue are from that first going the number were and team. promised hit $X to We million. we top of And we and

world and So million we just to $X understand temperature And We swing understand and changed, shareholders our We value. year. increasing from bottom on line EBITDA there. laser-focused. has delivering raised a our the $XX last we're the out the million, guidance and to $XX to we're will laser-focused That be million $XX million.

opens I'll we'll looking window And closely I open again. And increasing soon quarter. have as our as personally every very, in market looking been buyback. buyer the be a myself be a to very

appreciate everyone, interest I LiveOne. and you, in and time appreciate your thank So I everyone's

loves hopefully, as well. this everyone Our soon team company, Thank you. and else will

Operator

call. today's you concludes This joining. Thank for

your disconnect lines. now may You

LiveOne (LVO) 11 Aug 222023 Q1 Earnings call transcript