LVO - Earnings call 2 2024

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Operator

Hello, everyone, and welcome to the LiveOne Inc. Q3 Results and Corporate Update Webcast and Conference Call. My name is Charlie and I'll be coordinating the call today. [Operator Instructions] I will now hand over to our host, Aaron Sullivan, CFO, to begin. Aaron, please go ahead.

Aaron Sullivan

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

earnings questions, your as the X, information after date any financial website on undertake comparable You of today encourages content. in will or the this the and Relations contains reflects update website. revise of periodically by to find you November company's except, discussion, following The most of management's information XXXX, the important company which this view call, as measures company as not does time-sensitive reconciliations date to and the required to non-GAAP visit discussed measures Investor the financial Relations release, Investor responses law, is for GAAP of the including its obligation posted call. to

company's the rebroadcast be on be this the property of It section any and conclusion written a making Investor or or I and the the highlight of consent agreed the form strictly call the without company of prohibited. call its distribution it to I'd website media expressed in is to transmission shortly the investors webcast company available is to following will call. in like being is the and that webcast, replay via The to available investors Relations recorded.

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

Robert Ellin

everyone. us and to decline take be and our solely morning, on stocks We good and X for joining margins began I'd a capital, in Aaron, decisions place cost-cutting the the Investor to units everyone appetite effort sheet, strengthen aggressive you, strategic highest almost shareholders' desirable softened protect major with our drive then for ago. thank like years market and Thank made growth demand measures for to an Microcap and profits predictable investors change. to balance cycles when profit today.

our PodcastOne. Growth division of expand to XX consisting the radio the seen audio in at large is between now. in the disconnect cost largest any and way Slack Microcaps. that all right almost not to resources used I've our years have markets of and We This public is divergence

have years, X the savings a are of I'm past another remarkable that over announce few the million looking Over consolidated job cost $XX delivering we done $X and to to thrilled $X million million months. next at in

shares We another million have room the left and over X.X to shares. acquire million have purchased X in buyback

company in and million assets. history short-term with in best over Our the X balance sheet is debt $XX

to when business, a PodcastOne, produced and revenues million annually $XX in On our we audio of $XX and about acquired the million combined lot companies and work up. Slacker need clean

$XX That been to flow our raised million these on million of We and the time million Difficulty] This EBITDA has to million effort EBITDA $XX.X a audio million, combined our for morning, $XX.X the guidance $XX now X combined months. of record audio reported EBITDA. that business I'm proud a and to swing have the acquisitions. cash business teams just number from management announce first a [Technical delivering

subscription and articulate coming these streams. from and is X One sponsorships. why key growth revenue stick clearly simplify is To hockey our X

over to million XXX,XXX Our X.X subscribers the Xx X-year in period. grown from have

Our sponsorship this over sponsors XXX blue-chip platform X.Xx grown our has year. with on

company separately XX% first this a to LiveOne The [Technical the spin PodcastOne out national our PodcastsOne, on shareholders. of commitment shareholder podcast of year, September made out on as spin completed In Difficulty], stand-alone and December the issued dividend increase trade management value exchange. public a to a

number LiveOne's podcast. remaining this far, to platform started time, $XXX,XXX Trading investors X already owns valuation. the adding trading about at the in XX%, million X-year now LiveOne average $XX per its fast-growing NASDAQ of million top trading on on So and podcast since between for leaving the directly nominal PodcastOne of revenues have creators XX year first that subsidiaries it a $XXX doubling in period, opportunity an the at invest business. valuation

from We the increased up revenues X months growing, acquired when million the and the we to have $XX business. $XX to million

podcast X:XX over called currently Xx podcasts business in to This and acquisitions, the pipeline. We have history XX normal the and XXX of is in update on I pipelines Eastern about earnings separate the our potential opportunity largest everyone listen encourage to the today. over PodcastOne.

comes over year. are just year Slacker -- huge to now We BXB opportunities LiveOne Tesla. Expanding already almost in almost growth by year with partnerships, place next in straight paid month the to our car we've a paid X pipeline. Now combined for we blue-chip identified year. on extended combined directly North Tesla this our this partnership a verticals of sold before focus membership even ninth our billion-dollar-plus XX with team America This Tesla in LiveOne. to efforts for Every tenth finished Radio. our another clear guarantee These and companies management members

and within I over indicated last year, $X in we billion XX members will years pass over million revenues. X

and added million Over past paid total million the new average X.X -- XXX,XXX record an paid of members, over have months, members X.X we ARPU $X XXX XX members. past

end X next million We members expect total paid to over million over pass X by the members. and year of

market of easily Goldman To better billion need a addressable to XXXX. Sachs industry that only metrics, hit that that X.X number. by paying report issued would will understand these surpass subscribers LiveOne X%

undervalued, business, buyback our recently expanded is $X.X the program our in we million, so strength of additional to million almost the $X Given we leaving extremely stock believe buying.

you, I'd to it Now CFO. hand our Aaron. Thank Sullivan, to like off Aaron

Aaron Sullivan

record just very spend minutes EBITDA for QX PodcastOne Slacker for September brief quarter which few were of XX, million of period of a second of million. XX, fiscal $XX.X a and of $XXX,XXX. revenue and revenue our the XXXX, revenue $XX.X posted XX. Consolidated the X-month providing September million adjusted posted for results ended has $XX.X adjusted ended million overview EBITDA and I'll $X of

prior $X.X second XX% Consolidated quarter merchandise period. and and the consists and XX% revenue of merchandising to membership year QX FY million U.S. the loss a LiveOne or basis, sponsorship On 'XX. posted XX% for --for million. sponsorship share advertising, a consolidated 'XX, QX 'XX membership For per compared XX% GAAP diluted EBITDA and advertising net in other fiscal fiscal of $X.XX in adjusted diluted share was of $X.X

XX% of recognizing September in as As approximately Total subject are members, $XXX,XXX dispute revenue. that are numbers of increase million or prior total had were Note not who we currently which certain paid members, year. included XXXX, the net million to X.X a are include currently members XX. $X.X contractual to for which September of XX, approximately compared the we members X a

Rob, back it I'll turn you. to

Operator, for Rob. do questions? may have lost . you to it We open want up

Robert Ellin

short-term record the was wrap go $XX before $XX at strongest debt to in the of history $X million Q&A. at in company, PodcastOne the of X another the subscriber as well $X.XX it the debt well. million both flows stock a Balance assets, record company, of we been pipeline above to of it's hopper into those largest the of was history and growth, million sheet, acquisitions cash largest and up converted debt. EBITDA, just in converted of listenership, $X, markets, So of ever pipeline record record

like Q&A. everyone, Thank to to up open I'd it you, for that, with joining. So

Operator

Our from Alliance question Brian Kinstlinger first Instructions] Global of [Operator comes Partners.

Unknown Analyst

Sherman Brian. is for this Aaron, on

and on could how share expect and have . many onboarded More cash? over how time you Firstly, and podcasts more any you do onboard you frame? Kast to specifically, updates what many

Robert Ellin

about longer the additional should add think X took continue with the But timing the took months next point. days we've onboarded than or to We've at almost which of longer we X little on few uplisting, X expected XX around We'll So they telltale I Kast, to had signs. of an the And added because you great network. we this over expected. podcast podcasts. we're It a than update us substantial see seeing onboarded, podcasts.

Unknown Analyst

then And titles what of can you Kast, talk hope you reasonable about outside annually? the for of goals numbers onboard to are

Robert Ellin

already to really this year this year. be onboarded So is podcasts XX going that we've special a

this other pipeline of all for it them of We existing X has that moving existing, OpenNet podcasters. are for XXX podcasts, are the has that today now, our networks almost been right, in have seller's the last these years, been that we're and a on over are doors market right from bidding

networks. a it's Right now, podcast for buyer's market

And well previously. year. And economics great the see half -- year. better can were And deals for this XX at I networks very and second be half they opportunities similar over I be this year see so to the floodgates should there's opening, should first the of way the and than the podcasts us a

Unknown Analyst

the much And fiscal the of that revenue or onboarding other new 'XX. missing? ad result lower market factors the lastly, I can for How be versus podcasts might you touch of is any pace guidance the range on

Robert Ellin

question. Good

from business. So is that most coming of the merchandise

our we energy strengthening made in the One our on audio and was, and and things. buying business, have of the sheet. determination the to in X We balance back articulated all cleaning in as stock right? focus call, I

that looking merchandise -- at profitable. took starting just that of are the as cost not out revenues ago. a announced costs So weeks We cut. are of $X couple to that We're business, and we million we

on it from take -- is bit a is merchandise business. that Some of side board, the bit of it little ones the but a coming the of most to some cash sign little of

Operator

Our Water comes next of [indiscernible] Research. question Tower from

Unknown Analyst

questions. of Rob, couple a

give sense flat partners? are You mentioned for new us you verticals. Can for trip they potential what . X a

Robert Ellin

these to And the There's right? going be are just more Yes. way verticals. beginning,

Digital partner others. to already I've have have been you're So knows and that Turbine, background going with T-Mobile, a Verizon, we've for with with carriers which knows and right? right, my what many partners anyone built been

of additional carriers, very in is the some companies this shortly. meaningful. Tesla, right? to call, additional auto and pipeline like It's we being as XX careful companies, merchandise So in last expect those companies names and over said announce pipeline, we that in giving

So gym [indiscernible] from gym with anyone to there's anything world about that going to is that the hear going well as more competing and Amazon is to be shortly. that the telecoms going way very as satellite And you're in talking retailers, verticals operators us equipment. right, equipment, personal need to

be team hired expanding seeing next few the throughout whole dramatically us just team BXB We and BXB a months. you'll that

Unknown Analyst

great. That's

brought you in? in mentioned is members You way on to have growing increase are member $XXX,XXX it paid Do existing is Or that you partners that the . a new it existing numbers. platform? -- -- [indiscernible] the partners

Robert Ellin

to and and is really social one or and we media service creators radio right, white of a This pricing. utilize partnerships, label do size. is have that And to provide nimble is number a on BXB that Tesla, have rest for creators, our ourselves customers has X $X can't special able million we're price be to grow extended talent being which We're right, our competitors. the And tenth Verizon [indiscernible] the else the the of solution their the that relationship there is users all solution, do. the industry, is others that have the as its we ability ability our call white crowd far spectacular our of partnerships. no all our as almost continuing that now of of things that that X label industry our really in Radio, X/X year. and where Tesla most in We're billion we by separate white for threefold. of been to from well the We're of going lowest that $XX our has we capability to to X matter, number based labeling, Number any [indiscernible] in of for grow to all right? doing and in it able with creators, do podcast be utilizing is is can continue to

Unknown Analyst

last Great. Maybe just one question.

how time do that should You do that of a that? you good and XX% about revenue Currently, sponsorship. membership that's from mentioned as see Is membership you on higher -- the XX% Or think think trending . goes? for we balance.

Robert Ellin

you be longer coming lot thing year of this doing These you're pretty out over And million. some $XX on $XX gave see to as million. What's our we've the million run right? million, see the We right? running has is years. million, nice right, the sizable $XX guidance now same rate, both $XX a And horses race is $XX from neck side, X now got to the so grown on dramatically million, at podcast $XX fast, where And in of doing grown were and to will same of of on neck growth, side business now years and losing EBITDA of when on we've these of on from -- right? They're from X was money. Slacker X grow X-horse next And audio going here we've right? race podcast million [indiscernible] thing profitable, the the a businesses it. real it, the started podcast which they're is Slacker side and XX seeing the opened acquiring each it, we're a be And I $XX

Unknown Analyst

comments of better unprecedented I the situation how hopefully appreciate times and sector current your kind microcap but ahead. on that is, the

Operator

Hickman Our comes from Thalmann. next Ladenburg question Jon of

Jon Hickman

best quick quarter you've you've just your history on the a mean one Does ever Will the quarter, is you third the had that quarter record. Rob, comment question. corporate to had? in the be elaborate best going December or quarter that current

Robert Ellin

subscribers history Yes, announced, we a growth we're where podcast of announcing of We're signs by be best what the that already it and the is. giving we've X telltale about almost -- new see growth every the the we've already right? will weeks. company. lot month, growing in quarter We're is a the of metrics can the a XX,XXX And

really podcast So it's every become -- as new now you to easy, know, kind $XXX,XXX of model has $XXX,XXX of the adding Jon, really we're revenues.

Every subscriber we're [indiscernible] easily the figure to So right can XX% you right? that XX% right. we're out, somewhere those in in subscriber adding, in see with right, that right subscribers, $X.X pay thing those you XX% margins. Same the ARPU, we're adding, announcements, profits. to that's net $X in about adding margins, between Every

just won't EBITDA if than we continue hit revenues Media raised to you up. add guidance, to podcasts well see a know do than won't the to -- the very, can again those, special quarter be our going we And our is even very reason coming quarter So that's continue pipeline in took that, the to fast it's because we going are be the expected. longer right would now. hit But I expected, -- we the of signs like uplisting IPO telltale to the longer we that kicking Kast numbers, took the as though

Jon Hickman

So of EBITDA, with the guidance the higher coming . lower revenue or is that control difference expense margin? and out better

Robert Ellin

lot right business. being cost of right? $X those We business. year [indiscernible], with pieces of [indiscernible] for us before. took like right to back And doing a to We're nominal very sheet just do, just going paid and now, very right start now. If stock of produce not stock, million any to any talked now what to a to to energy shows to get unless a we of being cautious but business profit as And get that capital them. money keep core money them, We're to businesses in going another do margins start -- just on to cautious, at and money I balance and and out buying use going almost We're are is much No, there unless working stock on there we're those see to continue our upfront trade shows we're our about have our revenues. right, not going upfront any we'll the of risk back strengthen social them the right? going We're we're buy with delivering to continue signs. to very is focus telltale live on we're on is you guaranteed of next the valuation

Operator

any Rob closing this over [Operator Instructions] Ellin to At for no back hand I'll have further stage, we remarks. questions.

Robert Ellin

I period. we the everyone. it, quarter's call appreciate -- to thank joining, and few the just you you, thank look everyone short Thank next forward numbers. want join a in in I Please for and to podcast

Operator

Ladies this call. you and concludes gentlemen, for joining. today's Thank

now You lines. may your disconnect

LiveOne (LVO) 9 Nov 232024 Q2 Earnings call transcript