LVO - Earnings call 3 2023

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Operator

Hello, and welcome to the LiveOne, Inc. Q3 Fiscal 2023 Financial Results and Business Update Webcast. My name is Elliot, and I will be coordinating your call today. [Operator Instructions] I'd now like to hand over to Aaron Sullivan, Interim CFO. The floor is yours. ahead. go Please

Aaron Sullivan

Rob morning, financial Good quarter to business CFO. call LiveOne's December myself, Chairman; Thank Sullivan, Aaron conference and call and Interim are today's on results XXXX. third CEO for update and XX, and you. Presenting welcome Ellin, the ended company's

statements I and of assumptions and the but the on the may company's SEC ended are the future include, business. made those to materially would differ XXXX, current its these filings. you uncertainties. materially for those that today's Actual to, on expectations, SEC company's on the year results differ expected from from future which the of to XX, statements, for XX-K growth some remind and future variety Please involve company, forward-looking financial based filings actual risks various reasons. call These the subsequent discussed like forecasts could limited in regarding with this not and that statements are the expected March about a information are annual Form and including including factors, refer forward-looking results to report cause statements on of performance in results for described call

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

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

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

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

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

Robert Ellin

and work consolidation I'd business like subsidiaries, to proud our -- of Thank our fiscal are morning, us the for XXXX and quarter good of today Aaron, and we acquisitions joining you, financial consolidation, everyone X each everyone. year The results. thank to months complete. third update of XX say is for

XX% top. of over risen and building especially at our humbled market and to stars media crashes, have time COVID by expertise variances; showcase have It's thrived. of staff, our we We our team's the we to have epic companies. have survived in and but organization the cut billion-dollar We've technology, been COVID,

shares. that We've while tell additional starting from The now and equity and to shares $X.XX proudly our have of week, and our of will Xx to growth week, assets. is a has gone at trading this revenues million converted short-term stock all over can now at of XX% now next EBITDA million X.Xx I in stock, of debt peers gone, $X value million $XX.X X early story stock, back you to trade a buy into repurchased at worth revenues. adjusted start stock a company preferred we

record delivered million. record consolidated As a Division, revenues $XX $XX EBITDA and Audio million of of our we've adjusted

of EBITDA, to last proudly money. million and of I now, PodcastOne, XXX% can When year. of and were tell substantial businesses adjusted we well compared do they $XX $XX losing acquired increase amounts an Slacker million Radio will those of combined adjusted acquired you over both EBITDA over

every area. in growing We're

our total X.XX XX, December exploded, -- X.X paid increase, million taking a XXX,XXX our total over and 'XX, including of a Our membership million. members, adding since free, to members membership XX% has total and

out years TAM million within the business. we to expect the to get To of billion this paying X.X said come of is XX overall of the and less up million. going I've members. street they're to Audio will very This X% What XXX stocks of all year's told X tiny than the industry. be from the the is This piece a TAM be subscribers,

of number platform. the sponsors record pre-COVID. on hit X We had We've

on and passed this year. by to have year March this XXX sponsors have over expect over XX our We XXX platform

great one Candidly, cable million technology, labels partnerships for this be we are is sign and with partnerships more our and year music all exciting. BXB We're deliver of do Tesla and see Tesla well and ability car going grow. to Android for subscription to many publishers of with one, billion getting the partnership, from we companies. white-label everything is companies as anywhere just able sell across as XX in be all products spectacular more as going to to to of things that have Automotive LiveOne. the than a obviously, to as well social less to other Google Number We've And Our and the a XX media added other meeting, to the partnerships is sponsorship record [indiscernible] retailers platform. the carriers, telltale to original with continues to programming. need which for X.X eyeballs

announced launched partnership MVP and Beva, the exciting just shortly LiveOne we'll product. be X brands. new a of Winemaker We've stars, a division, recently We Russell version very consumer well as launching Jeremy pop very our as between culture

delivered quarter. viewer, we ] to in and has shortly. the and platform PodcastOne. We on and a from has growing, the listeners over have million [ begin grown as XX, our million we very has unique filed month S-X That million revenues, for December XX over and expect well. to XXX podcasts XX record trading TAM Company X.X

it's on your over X look its and opportunity business, TAM in way the billion the next just years. you growth to overall $X here, billion $XX As at of podcast has for revenues the passed

it with Aaron, finish you. to like I'll off Thank over and I'd comments to back some the at Now end. hand

Aaron Sullivan

results Thanks, quarter Consolidated Rob. X-month to and X X- for I'll our a ended and ended $XX.X of $XX.X 'XX revenue respectively. overview the XXXX. million, third for the fiscal few December an XX, first December periods XX, was million and spend just minutes months XXXX, provide

Audio Division posted respectively. revenue X-month Our million, and for and of $XX the million X- $XX periods

$X.X For the and the events X sponsorship in XX% of period. ticketing third comprised XXXX, the and quarter months ended revenue ticketing and merchandising membership and respectively. and was $X.X year XX% was advertising to advertising events X EBITDA membership December sponsorship XX% XX, for prior and compared adjusted Consolidated million, XX% million

U.S. for net 'XX of in XXXX. loss or and XX, million posted X $X.XX ended December consolidated $X.X LiveOne loss per diluted On a net $X.X million GAAP share months $X.XX the a basis, of or a QX fiscal

Our million, Audio million adjusted respectively. $X.X of and EBITDA Division's the a also X- for $XX record X-month and periods was

revenue. approximately we or X.XX February are dispute the include are of recognizing at had net XXXX. currently Total are X.X approximately February of we X, a subject a paid million increase XX% who X, December free not or members As members contractual certain which total to XXX,XXX XXXX. members, in currently for million members memberships to compared XX, Included

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

it now will Rob. I turn over to And back

Robert Ellin

LiveOne in back now We're highlight of record any our other to hits every of in as Automotive to car number we've a conference as that cars buyback. time company, some grows the for sponsorship hit XX press well day as as class now board, as the million exciting membership. Just $X on the as points growth We it management, shares. in call. And partnership across huge two, able the wrap be car grows. want just we right, Every road, well grow well them. growing. Number a up, release in with our board; Android started world-class we numbers to fashion. this and a We have everyone, I similar white-label many Tesla industries in of one, alongside to bought world

stock joined to a I'm extraordinarily stock. the Next additional year us I've And positions, have is extremely company. here year. with the begin adding for deliver forward and week, the long been for new a have us, and spectacular and in I Thank of undervalued, and to their excited difficult a this us I want for joining see be market. to will term, back we to that going personally you. of be This thank everyone we're patient buying a some buyer to look company's been shareholders going shares. year spectacular We're to

I'd any to open questions. it Now up

Operator

from Global. [Operator from Kinstlinger Instructions] First Brian comes question Alliance

Brian Kinstlinger

assume I offset in versus business. the And in rightsizing the Can challenges you've which last the is it's job to great there, being December growth trends you there in in done quarter December -- market. And the December? is advertising significant quantify then podcast download by see

as you if could you're maybe So quantify seeing well. there what

Robert Ellin

I be podcasting, material mean and what market. it's side numbers think of are. digital right, I direct to advertising actually that difficult year the a response, Part have the backing, in in you you is exactly of beauty Yes. have podcasting numbers of because of the it a you going huge very know

so the to that same the have see not many just partners on companies just of But who ours And also really -- are a have but a at adding network. really in exciting of competitors trend. podcasts of they've that to to TAM happening and at valuations. like our Spotify lot going signs fight the time, we're directionally, massive think money right? telltale Apple we're amount tremendous I So we industry, also spent acquiring and The are so

go our Sales Xx trends revenues. it. just literally were great. podcast probably money out Sirius than raised $XX at a revenues Podtrac to #X radio We're our at just see valuation. with brought XXx in the We about business million you saw, ranked Best As Team. as look We PodcastOne at We on public less

expertise. out sales we and the but will entire have of Sirius overall And They I terrific trends. trends business iHeart think our they've industry. to just fight the that and we just come have sponsor specifically, for team had see advertising best I and in

Brian Kinstlinger

able possibly December versus -- the share in -- December in XXXX to And can quarter? the XXXX quarter trends sorry, you XXXX XXXX download if versus you're

Robert Ellin

reported think in correct we've I don't trends any I shortly think But think part out the that that you'll I first of wrong, yet. as and of IPO. see don't those I'm come announcements our me if -- that Aaron,

Brian Kinstlinger

high new we Or a From growing significantly. think growing? is With growing a they it content not level, about Okay. on the you're all putting significantly? should are

Robert Ellin

Yes.

have self-fulfilling our a been up. of of trends It's All kind substantially prophecy, Brian.

know, So revenues revenues up driven have at same audience, our gone substantially. on traffic based our time so traffic are up the gone you as substantially right? and As

XX extra to did Connolly we added an we and with And is you're podcasts. some that additional company, add time of we traffic. of that Every Kevin when is adding podcast, deal -- some we his and fair our added

Brian Kinstlinger

And have can that update might the then tentpole can strategy Do tell us the And any you you you think occur? you so, months? Yes. when you in events? next us will if XX events know on of roughly LiveOne those tentpole on

Robert Ellin

biggest of right? there'll All-Stars number right, of artists. just and our the X the We which just Lives over did billion All-Stars million we've be of announced Music done, that we engagements, is Music announced LiveOne and launch XXX streams event a which mean the we to reached programming I did competition is the that ever record-breaking company, Yes. of Lives, the in live history all

winning a boxing the but competition we think And of quarters this way be higher social each event the over with expect that end then at than It our of be last December, an there'll I time, shortly. in these fully coming time. next up. coming I had winter will the XXX

producers, to with office. know, great we last did As million well social boxing. television the you Ben north $XX a one know, Silverman, launch a as partnership a TV Reality of announced show you including EBITDA I And right, partnership TV, did. in year's Reality announced where the the of when around we We

and we exciting be we a internally. balance to up really We're little to We So in dramatically. acquisitions right, right, with the able bit this events. took consolidate, year to now year cleaned of position multiple now put the forward back, a ourselves tentpole X for sheet this of step move debt-free, a

Brian Kinstlinger

with settlement the you And were and shares that's are great. on? both today total us everything the outstanding SoundExchange, what Can Great. speaking going debt those of the conversion tell of

Robert Ellin

Yes, have so $XX million... about we

Brian Kinstlinger

course, of but changed, quarter, right? [indiscernible] it's

Robert Ellin

Yes.

-- $XX And about the preferred have that right, is convertible at now range, -- in shares right? now you'll million equity have We outstanding, is then $X.XX. debt

So going $XX of converted, that $XX million outstanding. about to you're million right, have shares

this. stock the that right? higher Obviously, So I be all than say extremely fully was diluted, has done, to if

$XXX have You'd million about outstanding. shares

Brian Kinstlinger

Great.

Lastly, see Aaron, And for you if I were expect you cash cash if payable? either benefits months, in when quarter could talk didn't be I number, to you free X-month gains such could then the quantify in the about of some December any positive. there accounts nonrecurring know X flow uses. but as

maybe update would be an great. there So

Robert Ellin

Yes.

So we cash numbers. haven't publicly put out any

down to now puts at with have But multiple labels, they've on payouts we position substantial we bought obviously, with find which different is happened extraordinarily have right? We've years us took We left higher. when acquired will where taken it, $XX settled, settlement that where very music been really music haven't or in no had sound where a music that publishers, shortly. payables of which $X.XX partnerships We equity of exciting, X We Slacker Radio. million we we are right? exchange,

Some as $X. high as

in us a position. really puts So great it

but yet we separate look haven't announced. up payables, of the last cash line our can can old is bottom about you flow, from We in improvement And right, really and company. see at cash time substantial free flows the from cash you the talked

Brian Kinstlinger

Great. you quantify the if And just nonrecurring? can Aaron,

Aaron Sullivan

Yes, yes. so --

So nonrecurring in of item $XXX,XXX was just over about quarter. on recurring, there the

Operator

to from We Ladenburg. turn Hickman now Jon

Jon Hickman

maybe but about Maybe Aaron, XX quarter. guidance growth this or expenses a you $X.X little million months is for next operating expense us the for were question a Could so? operating this give

Aaron Sullivan

as Jon, onetime there just so -- benefit about there in of there'll $XXX,XXX. a was be a I noted,

expect in substantial back that in you terms trying see wouldn't expenses, can in, you're the to I So to expect growth. growth, of when right? come

of hit, side going Now see corporate bit in a quarters. But that's when to around of certain of the of fees in I will have expenses variability hit terms kind little and we of mainly you're where audit wouldn't kind be expenses throughout benefits substantially right? reduce see we're to year expect going forward, to We've cost to of at. where kind full going saves than -- the it the higher year. continued we're of We've

what expect now, we in. run consistent pretty $XXX,XXX to adding rate would So a back I the have right

Jon Hickman

was -- then on And the release, Do growing have about Okay. you so a -- press that for Slacker PodcastOne that number the for in business? you XX% annual basis. said you an

Aaron Sullivan

a don't We number. have

download that don't that number As see earlier, we mentioned of but we kind have yet, shortly. expect to

Robert Ellin

we in the as we And you as the SEC to obviously, be comment we're a has the to in talking hopefully period letters, trading got the Jon, maximum. about just PodcastOne. quiet XX next start a know, We'll in more approved it XX lot -- back expect and days

Operator

comes Our next question from Wainwright. Kevin Dede from H.C.

Kevin Dede

talked you about white-label the with Rob, Android.

any has Now car owner upon it car that is in Or that thing access? Auto baked that chooses additional that runs LiveOne so each is Android purchase? an

Robert Ellin

Yes.

different a it's that. no, little So bit than

white-label opportunity a So Automotive Android to -- the solution. us is give for the white

next and and AI -- music, Now song your technology, song, what AI those XX And Number our next your to love of be our advantages we our right? next deliver able are Radio? the people one Slacker patents is just virtual the to right? behavior understanding and have of the your

less right? of Spotify right they're is just raising by And all they're than our raising $X. announced competitors. now Sirius Number price. XX% prices, pricing, our the announced they're right? the raising We're two price

Cadillac to you we're one, give radio, you I lower right? the that And give number BMW be Tesla that So white-label even you to that going willing three only and are ones radio, is radio. know than of we're give

is industry. So It's anything huge not to Costco. opportunity, watches, to just gym audio there's from for to this Walmart a and for equipment, the

XX% to our seeing It's to a really massive with Radio, smarter. partnerships did, And to BXB great to in cuts the while now smarter have to eyeballs. their to Elon business. cooler Cadillac million is This expand Android, just As to -- than and of I've makes just X.X partners. who for opportunity are and we is them businesses built cut to car you a And made radio, for off just for my BMW what everybody our opportunities great else, with be upsell it that partners brilliant. adding it's them marketing staff, all really because is a billion radio unique back able just brand look these business we It sell we're know, all BXB grow of companies to other strategy. opportunity XX which do the

Kevin Dede

give then on international us update licenses? you service an You can And in you where can the and attaining provide are spectrum there?

Robert Ellin

Say time? that more one

Kevin Dede

Yes, Rob, I'm sorry.

the I'm service about licenses offer to you you internationally. Just are where in obtaining curious need

Robert Ellin

Yes.

is This with in just time to balance strengthen with up the this pull COVID that It really throughout payables, capital sheet, took it up clean clean that off. we've the publishers settle labels to really the And So about great but process. conditions record question. the I not year know market and position. before, us raising and talked the right,

this is do year our that. I think to

to think expand I it's a opportunity massive overseas.

way And dramatically. about if to carriers always fight to and you're the have going own When others deeper to with repeat time talk Europe in is know, back, many it's can And can other cycles satellite. means partnerships stronger It the -- to any content they But right, video, start of relationship it. be be their used India, and them. every and carriers. than company, have every going are more one audio anywhere have got to you think remember has countries. when before owned see would to we think so every digital have to their right? opportunities It on already as to one, I And in for I discussion Kindle. they battle had customers, can partnership you right almost just be change, I my turbine, have the signs would we company a huge that And the Japan right? they're licenses either them global It telltale sub It platforms, discussions unique going see in them with there's platforms. $X offer of active in believe Spotify our carrier foremost, some cable. be over car And this with and to are huge because I the could I all expand, in -- But be and Tesla They're paying savings expand or a be streaming to we with have. And it's first overseas. maybe very negotiations, are ourselves right? who and number there carriers, a already And content. cost for we It I grow else. now. that's obviously, time, per something

Kevin Dede

mentioned, You could with think, of Slacker, platforms data hear but I that lot where rather programs sponsorship which you think I review I a you you versus where -- you have offered really It are on sponsors? goes? so was with quickly, mean, the you the and platform. I LiveOne just that the what, which XXX sponsors apologize, and just that and sponsors can't have PodcastOne with you with that fast,

Robert Ellin

okay. Well,

Sirius, entire team, right? Brough to Sue X platform right? with growing. by so second, we try on, the right? salesperson, simplify bought sales has XX-person team, years the PodcastOne, it had of selling So for have right? combined that sales right? We Those XX Alex iHeart fact for led that background across -- sponsorships Start Our a are and a We and McNamara now

obviously, Tesla of you going across podcasting. car. sponsors get be Most And our growing right? only our audio in So just programmatic. going We're tier to get it's in of We've in podcasting is podcasting, you're sponsorship, the free that to But both. that sponsors added to we're audio. every growing

of a just to across did seen direct to as our year Hyundai great And many get from You programs, see with this going well response to you're well sponsors. them event those eBay, just programmatic Volkswagen huge has so as we live you've then as and grow.

have XX% net doing more going was sponsor the paying have only least behind who more of events it, that You're and And with a it. to to see those. margins now for at it on we're

Kevin Dede

Okay.

XXX remarks, all prepared all total offered it taking -- just -- of in currently your your back, And across platforms? step I you what now right. think So sponsors was, a what,

Robert Ellin

year-end. By

year-end. a So we're I'm -- March XX

right, So we've year with had over part XXX over far, XXX. so to away closing the

Kevin Dede

were a know for you I Okay. 'XX. data And March then offered was year-end you -- number? What where that point

Robert Ellin

for sponsors? 'XX number March a Year-end of

Kevin Dede

Yes, I that, of a think number you yes. had

Robert Ellin

last grown will well to year year We've And to next over year. from pre-COVID this XXX over X about XXX. be XXX

Operator

Hori next from Our Capital. Calvin from question Hori comes

Calvin Hori

Did lawsuit? I say you miss something? you settled the Did SoundExchange

Robert Ellin

X-K. in Yes, Yes. we it did. We filed

So from we about What years out paid discount payables over million a is with short settled term SoundExchange $X.X healthy to of it. we term. on lawsuit, long moving announced X the

the So in day. both converted It's same the debt swing $XX $X.XX. at all a million getting

million $X.X in moved also long term. We

company our So and exciting for sheet the week a balance really really strengthens dramatically.

this up short-term $X.X we by X said ago $XX.X reported million. to morning weeks $XX from also million, went We million that like our assets

a that very short-term it's be we'll those facility $XX somewhere So you to credit and got thing between next million is against assets. the likely see million $XX to borrow able

at And $X for more stays is us. so to the from dramatic that if weigh down this stock the that a buyback down improvement we'll increase million levels, line. these than And

Calvin Hori

view Great. And of sometime as Slacker going well then mentioned paper this sort one to Okay. on spin unit? there you that any Is off as thing, that a year. timing probably other

Robert Ellin

will cash to to million Yes. Slacker, we the throws come PodcastOne right? EBITDA off partners and million the I now said is million I up just trading. is PodcastOne the think up success So $XX and $XX be of of increased going aggressively actively for the who substantially. going we've negotiations obviously, today, We Audio right there. $XX in shortly the be right? flow obviously, over business, that pretty cash. you're And overall said, and of happen something fact in see of We're I right, mean, think filed, imminently. SX that The and

peers much, So I valuation like would you'll revenues, see at trading -- right. a our higher much expect a much are X.Xx

right? interest million we'll we're the of of right? see not that in multiple a financially a PodcastOne, -- million $XX active in $XX right? You're does than it. over Our it, pass It's $XX it's we aggressive pass, seeing that. not going would Otherwise, Audio higher to on We but right, if Division did million, lot

took the right, pay-per-view $X spent And an upside. I over has we've really, it's consolidating, went taking time. you we're we on That's really at EBITDA interest business doing we're that dramatically, pressed really year excited right, a really to that interesting most ago we're pay-per-view billion and ago. years XX upside. know, lot I'm entertainment on the that about of probably smart, XX of $X.X pay-per-view. that independent of envelope almost of billion serious like as extended And started $X this period really billion haven't And side, but traded an event. division around because the seeing going time, up And years and for with where really

We Aaron think Wednesday pay-per-view.... Windsor, just other EmblemX. at night. shot the I

Aaron Sullivan

That was Tuesday, not Wednesday.

Robert Ellin

Right.

are the So they it record from. views. with publishers, we're from lot come managers come from bringing doing A pay But in. those they'll They're are labels, it sponsor They'll come coming who in the with per it. of time, this for bringing

K-pop, energetic it. always festivals, as engagements. of lot pre-COVID X,XXX as music plan we've whole had launch it's right? big a The pay-per-view the about right? know, really read done works. you and about really And you exciting probably X billion to So streamed artists, We've We've was artists, over for around

really they're paid those sponsor to going careful a ones us. from Now is the cautious right, very on very directly for and by backed about, on they're and really on be or time We're backed to focus that. and gas step the

with then pay upside pre on of did we XX% to So they paid as with us the the margins $XX,XXX it pay-per-view it and and well. upfront stream

Calvin Hori

of to shareholders -- can spun off PodcastOne shareholders? finally, how then be you And just much Okay. existing clarify will

Robert Ellin

Yes.

So between X% and XX%.

think X.X%. about between, thinking So in

filing So says trading public start the million it's at valuation. to going $XXX

our of lot next dividend going few is out the a to to be weeks. shareholders in equity So

Calvin Hori

[indiscernible]. that So means

Robert Ellin

[indiscernible] that? Shareholders. What's

Calvin Hori

LiveOne will own XX% then?

Robert Ellin

it's little million sold less going a to remember, million it's $XX be valuation. at than a -- $X we because that Yes,

bit XX% if XX% Yes, higher big XX%. than take going about it's $XXX little of million, So to And number. own it. LiveOne's a of a you

our than I Sales And of guys, know would direct that year higher me, my this just additional sales advertisers the telling is that add to way just of top Head have. hundreds we of it, XXX add of McNamara, on right programmatic, to Sue to actually from got advertiser that including -- we

Operator

for our to Q&A. hand final remarks. concludes I Ellin, any This now CEO, back Rob

Robert Ellin

Yes.

Just just been everyone to for a it of has thank right? to This want a their up, patience, I humbling wrap couple years.

I our think to together. tough very differently any a I win They've was of dramatic we change. that so year. recognize team. My my come come think in gone this has have the proud all And we're XX market cuts. a And the I've we change through a most, to laser-focused my And ago, just and together. been It's months before. of making been that career shareholders. going of I'm going to before this than battle, for team have is world-class team, capital on for going you winning have investors

everyone. for you, joining. So you Thank thank

Operator

thank to This call has your now concluded. you We'd participation. like for

disconnect lines. may now You your

LiveOne (LVO) 9 Feb 232023 Q3 Earnings call transcript