• Consolidated Revenue: $33.1 million for the three-month period ended June 30, 2024.
• Slacker Revenue: $18.7 million in Q1 fiscal 2025.
• PodcastOne Revenue: $13.2 million in Q1 fiscal 2025.
• Adjusted EBITDA: $2.9 million for Q1 fiscal 2025.
• Slacker Adjusted EBITDA: $5.4 million in Q1 fiscal 2025.
• PodcastOne Adjusted EBITDA: Loss of $300,000 in Q1 fiscal 2025.
• Net Loss: $1.7 million or $0.02 per diluted share in Q1 fiscal 2025.
• Total Members: Approximately 3.9 million as of June 30, 2024.
• Revenue Composition: 56% from membership and 44% from advertising, sponsorship, merchandising, and other.

• Warning! GuruFocus has detected 5 Warning Signs with LVO.

Release Date: August 13, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• LiveOne Inc (NASDAQ:LVO) achieved record-breaking revenue of $31.9 million and $5.1 million in adjusted EBITDA for Q1 fiscal 2025.
• The company projects significant growth for its audio division, with anticipated revenue of $130 million to $140 million and adjusted EBITDA ranging from $20 million to $25 million for the year.
• LiveOne Inc (NASDAQ:LVO) has secured a $24 million partnership with a major streaming network, adding approximately $2 million in monthly revenue.
• The company has expanded its B2B team to capitalize on a pipeline of 63 potential partnerships, with expectations to close deals with companies ranging from $1 billion to $1 trillion in market cap.
• LiveOne Inc (NASDAQ:LVO) is expanding its stock buyback program to $12 million, demonstrating confidence in its future and commitment to enhancing shareholder value.

Negative Points

• PodcastOne, a division of LiveOne Inc (NASDAQ:LVO), posted an adjusted EBITDA loss of $300,000 for Q1 fiscal 2025.
• The company reported a consolidated net loss of $1.7 million or $0.02 per diluted share for the quarter.
• Content acquisition costs have been higher than anticipated, impacting the cost of sales, particularly at PodcastOne.
• General and administrative expenses have increased due to additional stock-based compensation and costs associated with being a separate public entity.
• Certain members are currently subject to a contractual dispute, affecting revenue recognition for those members.

Q & A Highlights

Q: How much more does the B2B partnership have to go in terms of reaching the peak run rate? A: Robert Ellin, CEO, stated that while exact numbers aren't disclosed, the partnership started in November and is scaling up. Revenue growth is expected each quarter, and the partnership is seen as a significant opportunity to expand content across large streaming platforms.

Q: Is the $24 million B2B partnership the same as the one mentioned in November? A: Yes, Robert Ellin confirmed that the $24 million partnership is the same one that started in November and is currently growing and scaling up.

Q: Can you provide more details on the $63 million pipeline and how it breaks down by vertical? A: Robert Ellin explained that while legal constraints limit detailed disclosure, the company expects to add more auto companies and expand globally. The pipeline includes opportunities with carriers, retailers, hotels, and airlines, with 63 deals identified as having potential to close within the next 12 months.

Q: Are there any seasonal factors affecting the Audio Division's revenue? A: Aaron Sullivan, CFO, noted that while there is some seasonality in the merchandise and podcast businesses, particularly in fiscal Q3 (calendar Q4), the subscription business does not experience significant seasonality, which helps balance overall revenue.

Q: What is driving the increase in general and administrative costs? A: Aaron Sullivan attributed the increase to additional stock-based compensation and costs associated with PodcastOne being a separate public entity, including legal and accounting expenses.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.