LPTV - Earnings call 1 2024 | Loop Media, Inc.

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Operator

Good afternoon, everyone, and thank you for participating in today's conference call to discuss Loop Media's financial results for the 2024 fiscal first quarter ended December 31, 2023.

Joining us today are Loop's CEO, Mr. Jon Niermann; and the company's CFO, Mr. Neil Watanabe.

By now, everyone should have access to the 2024 fiscal first quarter earnings press release, which the company issued earlier today at approximately 4:05 p.m. Time. Eastern available Relations is website of the www.loop.tv. at in release section Investor Loop's The

cause call assumptions those available materially XXXX. and of statements, on These Do uncertainties from will on SEC. company's differ are this Litigation which certain date that risks these forward-looking forward-looking addition, In be the known Private statements reflected the only the forward-looking statements that website. and are well call, actual Securities Instructions] Certain this of described from in as are and not statements call required being made forward-looking to under place the Act results for and are except time [Operator are questions forward-looking to the conference unknown to made in of could as risks this with Reform statements. to webcast undue as time also considered These as by reliance company's subject filings replay any webcast uncertainties law. subject on

company adjusted of business. with revise non-GAAP certain release rules. GAAP financial any measures including been SEC accordance results of the also supplemental as forward-looking or to our company's non-GAAP no to any The the revision includes statements. in to reconciled most measures, publicly performance The obligation of measures measures EBITDA undertakes presentation comparable have All directly

and press find X-K important You'll earnings in to release Form other the reconciliation charts and furnished the SEC. information

turn Jon Niermann. I the over Mr. CEO, would call now like to to Loop's

Jon Niermann

mark. to and core political revenue, we business. contained our $XX exceeded quarters FY 'XX, over afternoon, X million off organic of million Unlike was in no and little our FY the good revenue revenue QX you, Thank spend again QX 'XX just advertising purely everyone. quarterly revenue After once $X

Quarter-over-quarter in in of 'XX XX% million $X.X from $XX.X QX QX 'XX. growth million FY to of FY increased

and operating focus in network in a of $X.X as revenue EBITDA $X.X addition significantly we In million efficiency, impact adjusted lowering or reduced QX to saw resulted growth, on to XX% the quarterly costs compared our the strong by which 'XX. loss million

active quarterly across As we across XX,XXX and of decrease Players of December Players active or approximately includes the QX 'XX, QAUs and O&O for over XX,XXX Screens the for Loop XX% Platform 'XX 'XX. Loop platform, which an slight FY over QAUs Loop had QX XX,XXX Partner X,XXX our or FY the a of X,XXX increase QAUs QAUs XX, XX,XXX

Screens Partner XX,XXX X,XXX Partner of over an of Partner XX,XXX over QX end approximately FY 'XX. our the FY the Partner Screens Platforms, 'XX at QX announced across for the increase And or and Screens XX,XXX XX,XXX XXX% Screens Partner

as a Our footprint Loop of QAU restaurants, advertising distribution transition more convenience replaced retail bars of including locations the natural other as targeted reduced were establishment. venues, of we was not result that immediately markets quarter fiscal focus a and and 'XX more to out-of-home stores, pivoting desirable and model, for designated our first certain as well as Players attrition to geographies

active lot our numbers a for targeted platform robust will player more grow over partners distribution allow this advertising us and plan believe quarter-on-quarter We time. to distribution provide our

of operating addition, in those in the early active return WiFi a Not to outdated In those first and downtime performance and October of to Players experienced fiscal program our related 'XX of September Players in Loop issues number late of result a as technical quarter an venues. 'XX. Loop all update

marketing efforts screens the The year the revenue where and on demonstrates January now and half distribution of the the of to sales optimistic March, us year second expansion conservative notoriously expectations. giving client our the advertising over of brand I Loop beyond. between ramp TV We have worst our am in be are awareness the and learned we've and new more the quarter platforms XXXX increased past But of for that wins. entered and our about

is our investment we allow M&A for approach return to to and Moreover, the to on to we can potential model our will revenue basis to and and know to markets us provide venues our consistent business the focusing Our that customers continue leverage look company vertically. that networks further opportunities while on gain on a growth. strategic explore leverage our new best platforms integrate

cash and on plan soon careful mean further to We upside possible, it. growth. as not dampen It's consistent keep tightening to to accomplish so to materially as tricky to that efficiencies, being goal our that, the be becoming a to focus eye cost a while always we need bottom future balance continue realized will line still we flow achieve but of could positive on will

With turn results. the to will that, to financial call you over I our take Neil Neil? through

Neil Watanabe

everyone. you, Thank good Jon, and afternoon,

financial year's fiscal review results, refer and specified. unless our want that the I to prior we quarter, first As everyone variance commentary all to otherwise remind comparisons

fiscal to revenue XXXX $XX.X million $XX.X first the from does reflect QX current XXXX. million quarter, not benefit in any advertising year. QX last political compared period same the to revenue In for The was fiscal compared

the improved revenue have channels in last X through our we growth revenue in various current improved the as QX our productivity quarters. significantly our Additionally, initiatives over

higher was $X.X gross the to the smaller margin driven a revenue the year the rate same gross XXXX. fiscal margin. compared In XXXX. same partner period profit $X.X ago primarily fiscal XX.X% mix operating but The the platform for included quarter, business, lower XXXX by carries which for of XX.X% decrease our In million margin as quarter, portion to period first in gross XXXX fiscal period fiscal was in first million was compared

restructuring million stock-based from of partially impairment for a administrative in goodwill, receivable our quarter in and lower capital intangible revenue expenses, base offset XXXX. was and The depreciation same expenses, were excluding general and reserve assets payroll to costs and XXXX marketing compensation-related the and first sales, compared raise growth improvement decreased amortization, million increased fiscal increases. $X.X the in in in by other on reduction compensation, primarily due costs and resulting digital spend, debt to Total bad expenditures fiscal period $X.X and

gaining efficiencies We and to throughout continue XXXX. focus reflected to which we be expect SG&A, on

same in first or $X.X the Net to a XXXX loss period loss a EBITDA $X.X million fiscal same or compared $X.XX loss was a for loss $X.X in of net share million a in per quarter million $X.XX $X.X Adjusted for loss million of XXXX. loss XXXX, quarter compared XXXX fiscal in a the of per of fiscal share loss was first slight the the improvement. fiscal to a period of

XX, $X.X on September million our XXXX. to December million sheet. Turning $X.X and XXXX, Cash balance compared equivalents to cash XX, were on

we reduce to December we As gross compared focus to as we revenues, million net total continue with increasing and the our million we of XX, our had progress on continue to revenues XX, to $X.X September XXXX, EBITDA leveraging expenses line plan as a loss $X.X debt the of margins XXXX. Overall, in year. adjusted as of through

thank everyone look to call. further prepared today. next providing like to listening our conference updates We forward This on for I'd our remarks. concludes

up We for will now open questions. it

Operator, back to you.

Operator

line from question with Instructions] of Riley. B. [Operator Wold first Eric the comes Our

Eric Wold

of kind questions. X got I've

in that the it, The quick. to in I'll first reduction the the but it how I you try around Loop sequentially. first parts the more replace? color you, I X,XXX reduction or you you has removed X question net terms did Player not said a give quarter. versus And added in Can little about behind know to is really how X us that the of many guess, make many was

attrition quarter second a is, the we have you this second part X again that of like year? And is actually flush the of this kind gain quarter? natural And should a Or kind net quarter? in throughout placements then the December in in can expect

of But is I think And and that put had get the desirable can of worth around thoughts and reduction else sales efficiently those a not about -- venues more same them. Or more profitable just you were last the somewhere Were to out know just is and kind place made. part having that you anymore? more around more were these why all to that take it just want it they -- capital? if the locations you kind then equipment I take markets. to efforts using not was

Jon Niermann

on jump that. I'll in Eric. Thanks,

X now. we of have us years data behind So

to be, we can the on thing. we're that's as important think our it investment. And that to return getting sure most that sure bottom as look make make we I have as tight is best the line

performed into that, performance, that know the clearly others. end of we our don't they're those, So what terms some going but best. know for we we mentioned clearly competitive after, But we're other going we just understand at type ones the the was well. get And do perform of I'm to obviously that, that of reasons of what not primarily. in now venues the types

have different We're that you a third a One, things technology there's So in or whether -- kind of happened. it's our Loop just couple of like fourth with generation Player. phone. of your have

updates. different enough acquire maintain worth generating enough You not updates, they're airtime, to iterations, have If and those. handle don't they really certain update push an strong so to venues each those our not aren't through it's while

call in the evolved what that, of we we'll that's where So natural of terms attrition. kind have

that also want. not to issue we the particular targeting player put going the there going WiFi, learned that we're get So we not learned we're better to for we if replacing example, into but on a return with was because investment

second but for to. We the Of it smarter question, to course. believe your forward. anticipate net want We know will. part occur? it can it's We going of We net So a be a going it us that. will,

certainly of the after coming market, way are, of certain a there where here little performing, to Bob geographies. When different want he that So with understand how just they're dealing the I of these going types advertisers, was is think time venues well. bit as and what players kind our they knows they're

doubling be going it that best that thought stage, all information, with kind start down just we fine. to of time those paring really and are this the venues So at we just the to out believe on was

in though hit growth little players. of to very there, comfortable we're with the So or we the a even going took we're where be XXXX

Neil Watanabe

all add also the we've but Jon of same and just found geographically. perform learned that don't productivity that more venue, I'd targeting player, like players the analyzed the as mentioned And to we of the

we found started And out profitability, certain as and the so And put key advertisers monitoring in measuring we part for looking we density original distribution can. really DMA that was of are them then just markets. wherever

will focusing shotgun have overall, we been that profitability more efforts are on being versus our a growth standpoint on sniper for from approach so those geographic locations which, tend to region. more improve And our and

Eric Wold

will I And That's be I a shorter guess last Okay. helpful. question, promise my one. it

back half spend have quarter kind not had QX know recovery political You minimal kind typical I period. the did stronger slower or or the year of noted you're it. that itself a debt the the in ad of fiscal in expecting the after benefits of

ad they however expecting kind you half if a spend political want as of not do have you to them political And not guess, in maybe, of show have all spend? to them allow the want show opt want of venues how to are you phrase you for have much or of kind it, spend your to to back year? ad What ad in the percent to could or I versus them?

Jon Niermann

Yes.

cetera. to that venues for that any to It's not we make we sure part show. that, a -- the it's sure want et content that's AI the And make just So of and different family-type we are. venue, use,

ads very careful we're forcing obviously. with things terms of So in on -- and people,

have always function they to not So do that. that

a part just were think portion previous I of that trying growth when so make the this $XX.X more think the your to your the would the $XX.X for of advertising. question to we was alone we the very year, a million, than sign of was was core quarter on which that business. political the And is first had have last encouraging organic been large point it time million is just But we quarter,

future be So good. when we think you start the we that's to believe on advertising, to what then layer

Operator

next the line Our MKM. ROTH Aftahi from Darren comes of with question

Darren Aftahi

want just question. Eric's you to your job responding the to sure correctly I Jon, heard last comment progress. make Nice I on so on

you actually out year-over-year. grew Is strip if So ago, were political a that to correct? year you

Jon Niermann

Yes.

For the core business, yes.

Darren Aftahi

Got it.

on Okay. the players. That's maybe helpful. question another the of And attrition then

unit there's the of attrition always then there's attrition. So a revenue and

weren't the cycles get any like kind a or of with of it didn't sounds maybe technology, yielding revenue. players cetera, So upgrade et efficient in lot

quantify So what is I impact guess question, to X,XXX my with attrition was way revenue those a there players? of kind there

Jon Niermann

still meaningful Just maintained not based a that as say it's, are would on think, in Darren, difficult, little know we what the X,XXX, those I be. players But a sense to the majority the we've that that exactly revenue. generating of

-- were a this put ton those it's they we like and lost of these then it not that It's way. revenue -- like they're if not So generating gone.

of It's your if kind is basically So question. that's minimal. very, very

that not the And were they're are reason, using or they're player a a or either off those So demographics. for not should off like ideal coming primarily. they location

us, and it's not It's the evolution. bad of part growth process natural just for So kind thing. really a of

Darren Aftahi

the the first deal having whatever, and that gross of maybe first quarter on One lower. And did assume full looks like the your is Great. partner, XX,XXX, that based you relates I'm One, curious your with have X did large more with on margin, on of improved. would screens. bringing partner on sort a margins been XX,XXX gross that it things this would initial you in partners, to on last quarter, that.

is, is and an a then second gross partner my having than the on gross So your I over-index first have profit different quarter? your profile guess question in impact margin

Jon Niermann

Yes.

to continue opportunity the certainly leverage we our grows do distribution, As better happens. to grow and deals

look historic same. any ago, on better years we better But deal the yes, have I line, we today would us. for see wouldn't deal the a impact So bottom that that a a share done X.X we do think, might

Neil Watanabe

Darren, even partner our on it lower still less margin, platform, expense a but we talked Loop about though -- expansion than Players. carries the operating the

percentage standpoint, higher similar will of that as Players. going difference the again, we've pace So what always Players rate talked bring on, down. as profitability, have a from is that the of very we quarter the But some Loop than partner our add platforms about, that to rate is is in the sales we're the Loop to

a discussion where about press reason part the we compressed rate that mix for bit. sometimes or be can that talked the But of is on in release the

Jon Niermann

back think But a to key the better share rev is I Loop, it which is Darren, thing.

Darren Aftahi

launched And I know Local. helpful. That's you I that. sneak could it. Got if guys just in. more one

quarter, go I in think and I piloted revenue prospects local into about curious we the any quarter think correct for aspiration, if of me but as maybe just were of local calendar in. it the was sort we your wrong, I'm to don't I'm kind thoughts contributed 'XX.

Jon Niermann

You're right.

year. nothing meaningful quarter, of towards quarter, of kind really the the beta For to the again, in full kicking now, through latter half the

We they in optimistic very it working think start But see it's to make type half. tested, it's certainly just the sure of Is the we're to want it video? you'll more right and that I second Is is, from So it being images still it use. about it. that which and everything still?

There's lot monetize think, that to the for along. it going beta of easier we'll it able learnings a be that pulling as and us, make of we're out we're much I just then, better will

Operator

line of next Singular Our the from comes David question with Marsh Research.

David Marsh

seems Congrats on it like improvement quarter. the I here. mean, real some

financials? expense nonrecurring What in long be the quick to of how that the up $XXX,XXX expect popping is we do housekeeping. First, and

Neil Watanabe

expected didn't that related that that consummate. expenses continue. to David, were capital some raise to some activities isn't We had

that you onetime that sort back at historics, in transaction we added a expense go a our back recorded this But as can marching much point, of nonrecurring. line. had we of nonrecurring haven't the we that as through So

So it's, X an situation, I quarter. least think, for at isolated that

David Marsh

give had you year-over-year. helpful. Last month and I'll And how pacing like sense to feels X are mean, just in it really of it. we winter, of calendar fundamentals. books a what call kind more first quarter, this the That's business about then I us year like year, transitioning Okay. things the nuclear just with Can advertising talk

Jon Niermann

in always this for anyone as as kind quarter I think Well, starts advertising. said, of odd deals is that it we

January at look past of then kind and look it. You

see we of, us, you it's -- say for wouldn't nuclear the any winter So like kind I don't said.

quite you signs think the expected is But I simply, that for see rebounding, industry as us. it's all advertising the et pacing cetera.

David Marsh

is this it And seen -- point? seen to Okay. where guess, political concentrated anything at have Or terms early you you're have have anything? That's fair. in then the I too of you just markets in

Jon Niermann

to starting see Just it.

see of and certainly but definitely starting again, to get when just of the year in, right? starting good. you So of it's could which interesting to is we're to that have second is that going think like that, everything So election, we kind half in. majority to think conventions some I it a come But of an be start trickle it,

David Marsh

Okay. then the side. was in margin posted And just margin. on the talk just thought the QAU given your that quarter I first about the kind now strong really kind lastly that me, for partner actually of gross wanted of it's of more to side players here versus mix gross

get I bit if on of how just heavier gross partner you some is kind this And guys margin trend wanted the we to forward. component go mix can color from to as a

Neil Watanabe

QX David, ended with We a $X XX.X% revenue on you're million right. gross absolutely margin number.

basis mix revenue as and that So that better those get of relationships reflects I we're think negotiate XXX do and certainly points some the margin going between leverage of And to appropriately. forward, we rationalize levels, improving certain opportunities the can of quarter-over-quarter to type we kind efforts. can and doing the

And north we came XX% certainly of looking obviously, into we QX. that can the go that

they think the bit it revenue, can a a but contingent, we get it of get as very fixed the expansion. and certain benefit it's cost rate margin we proves leverage level become goods we of to so portions that well. So And of of revenue I

-- of for that just think margin think opportunity the I is we So that rate certainly posted. past certainly north can we what we've indicated our in go

Operator

session. Q&A for concludes the to closing That remarks. Niermann Jon Back

Jon Niermann

again speaking to to very just and everyone quarter. you look the with for thank to joining want today, Goodbye. you update an Thank forward next we I much. call

Operator

call. today's concludes This

now You disconnect. may

Loop Media (LPTV) 6 Feb 242024 Q1 Earnings call transcript