LiveOne (Nasdaq: LVO), a renowned creator-first platform at the intersection of music, entertainment, and technology, catering to global audiences through memberships and dynamic live and virtual events, has unveiled its fiscal year 2022 (Fiscal 2022) operating results, marking significant achievements and outlining its strategic direction for 2023.
Record-breaking Revenue Growth
In Fiscal 2022, LiveOne achieved remarkable revenue growth, surging by 79% year-over-year to reach an impressive $117.0 million, up from $65.2 million in the previous year. This substantial increase underscores the platform’s ability to attract a growing audience and deliver premium experiences and content worldwide.
Enhanced Contribution Margin
LiveOne also reported a 48% increase in Contribution Margin* for Fiscal 2022, amounting to $24.0 million, compared to $16.2 million in the previous year. This heightened margin showcases the company’s dedication to optimizing its operational efficiency.
Strong Fourth Quarter Performance
For the fourth fiscal quarter ending March 31, 2022 (“Q4 Fiscal 2022”), LiveOne posted robust results with revenue reaching $23.4 million and a Contribution Margin* of $5.1 million. However, the company recorded a loss from operations of ($8.3) million and a net loss of ($8.8) million under U.S. GAAP standards for the same quarter. On a non-U.S. GAAP basis, Adjusted EBITDA* in Q4 Fiscal 2022 amounted to a ($4.8) million loss, compared to a ($2.4) million loss in Q4 Fiscal 2021.
Cost and Expense Reductions
To further strengthen its financial position, LiveOne is diligently implementing additional cost and expense reductions, targeting both operational and corporate overhead expenses. These measures are expected to yield annual cost savings exceeding $23 million by the end of Fiscal 2023.
Debt Settlement
In the first quarter of Fiscal 2023, LiveOne successfully settled approximately $5.5 million in payables and short-term liabilities, fortifying its financial standing and ensuring a stable trajectory for the year ahead.
Optimistic Outlook for Fiscal 2023
LiveOne’s CEO and Chairman, Robert Ellin, expressed optimism about the future. “The momentum in LiveOne’s audio business, which includes Slacker Radio and PodcastOne, continues to improve as a result of the continued growth of paid members through partnerships, including Tesla, as well as an increase in advertising and sponsorships. We currently expect those two subsidiaries to collectively achieve revenue in excess of $80 million in Fiscal 2023.”
He continued, “We have strategically pivoted and aggressively reduced costs and overhead by more than $23 million on an annual basis, which has allowed us to accelerate our path and timeline to achieve positive adjusted EBITDA*. I am excited to report that we expect adjusted EBITDA* between $0.5 million and $1 million in the current quarter ending June 30, 2022, and between $5 million and $10 million for Fiscal 2023.”
Membership Growth and PodcastOne’s Success
LiveOne witnessed remarkable growth in its paid membership base, with over 1,580,000 paid members as of June 26, 2022—an increase of approximately 510,000 members compared to March 31, 2021. The total member count stood at 2,350,000 as of June 26, 2022.
Additionally, LiveOne’s wholly-owned subsidiary, PodcastOne, earned recognition by ranking #8 on Podtrac’s List of Top U.S. Podcast Publishers in May 2022. The platform achieved a U.S. unique monthly audience exceeding 6.9 million, with global downloads and streams surpassing 44 million.
Stock Repurchase Program and Strategic Initiatives
LiveOne’s board of directors authorized the repurchase of up to two million shares of the company’s outstanding common stock, further demonstrating the company’s commitment to enhancing shareholder value.
LiveOne is also actively exploring strategic alternatives to foster growth and innovation. These potential alternatives include strategic acquisitions, divestitures, mergers, sales, or other forms of business combinations. The company is working with J.P. Morgan to evaluate these opportunities, although there is no guarantee of a specific transaction or timing.
Fiscal 2022 and 2021 Results Summary
For the fourth quarter of Fiscal 2022, LiveOne achieved revenue of $23.4 million, compared to $21.0 million in the same period in 2021. Operating Loss for Q4 Fiscal 2022 was ($8.3) million, an improvement from the ($8.8) million loss in Q4 Fiscal 2021. Adjusted EBITDA* for Q4 Fiscal 2022 was a ($4.8) million loss, compared to a ($2.4) million loss in Q4 Fiscal 2021.
Fiscal 2023 Guidance
LiveOne is maintaining its guidance for Fiscal 2023, with expected revenue ranging between $125 million and $140 million, and anticipated Adjusted EBITDA* between $5 million and $10 million.
Conference Call and Webcast
LiveOne’s senior management will host a live conference call and audio webcast to discuss the company’s operating and financial results on Wednesday, June 29, 2022, at 10:00 a.m. Eastern time / 7:00 a.m. PT.
About LiveOne, Inc.
Headquartered in Los Angeles, California, LiveOne, Inc. (NASDAQ: LVO) is an award-winning platform dedicated to music, entertainment, and technology. The company provides premium experiences and content to a global audience through memberships and live and virtual events. As of June 26, 2022, LiveOne has amassed over 2.35 million members, streamed over 2,900 artists, and offers a library of 30 million songs, 600 curated radio stations, nearly 270 podcasts/vodcasts, and personalized merchandise. LiveOne’s wholly-owned subsidiaries include Slacker Radio, React Presents, Gramophone Media, Palm Beach Records, Custom Personalization Solutions, PPVOne, and PodcastOne. PodcastOne alone generates more than 2.48 billion downloads per year and distributes over 300 episodes per week across its top-rated podcasts. The platform is accessible on various devices and platforms, including iOS, Android, Roku, Apple TV, Amazon Fire, and more. For further information, visit www.liveone.com and follow LiveOne on Facebook, Instagram, TikTok, and Twitter at @liveone.
Note on Non-GAAP Financial Measures
LiveOne uses non-GAAP financial measures, including Contribution Margin and Adjusted Earnings Before Interest Tax Depreciation and Amortization (Adjusted EBITDA), to evaluate performance. These measures provide insights into operational results separate from non-operational factors and are not intended to replace GAAP financial measures. Contribution Margin is defined as Revenue less Cost of Sales, while Adjusted EBITDA is earnings before interest, other (income) expense, income tax expense, depreciation and amortization, and before certain non-cash GAAP purchase accounting adjustments, legal and professional fees attributable to acquisition activity, non-recurring expenses, gain (loss) on derivative financial instruments, severance, and restructuring costs, share-based compensation, stock-based consultant expenses, and sponsorship allowances. A reconciliation of these measures to their most directly comparable GAAP financial measure is provided in the table below. Non-GAAP financial measures are not necessarily comparable to similarly titled measures reported by other companies.
Forward-Looking Statements
This press release contains “forward-looking statements,” as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements include, among other things, LiveOne’s expected financial results for Fiscal 2023, statements about LiveOne’s strategic initiatives, and other statements identified by words such as “anticipate,” “believe,” “contemplate,” “estimate,” “expect,” “forecast,” “intend,” “plan,” “potential,” “project,” “will,” “would,” and other similar expressions. These forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements. Forward-looking statements represent LiveOne’s management’s beliefs and assumptions only as of the date hereof. Except as required by law, LiveOne undertakes no obligation to update these forward-looking statements publicly to reflect future events or circumstances, whether as a result of new information, future events, or otherwise. Readers should carefully review the statements set forth in the reports that LiveOne files from time to time with the U.S. Securities and Exchange Commission. For further information on factors that could impact LiveOne’s financial and other results and the forward-looking statements in this press release, please refer to LiveOne’s filings with the Securities and Exchange Commission, including LiveOne’s most recent annual report on Form 10-K and quarterly reports on Form 10-Q, available at www.sec.gov.
