LiveXLive Increases Guidance for Fiscal Year 2022 Revenue to between $107 Million and $115 Million with Adjusted Operating Income* of $5 Million to $10 Million as Live Music Reopens

Rhea-AI Summary

LiveXLive Media (NASDAQ: LIVX) has raised its revenue guidance for the fiscal year ending March 31, 2022, expecting between $107 million to $115 million and Adjusted Operating Income between $5 million and $10 million. The guidance increase is attributed to factors including ticket sales, sponsorships, and NFTs from the upcoming live event Social Gloves: Battle of the Platforms on June 12, 2021. Additionally, the return of live music events and a growth in paid subscriptions, now at 1.1 million subscribers, are expected to drive revenue further.

Positive

• Increased revenue guidance for FY 2022 to $107-$115 million, higher than previous estimates.
• Expected Adjusted Operating Income of $5-$10 million from core operations.
• Revenue driven by the upcoming live event Social Gloves and the return of live music events.
• 1.1 million paid subscribers, showing growth in subscriptions and advertising.

Negative

• None.

LOS ANGELES, May 26, 2021 /PRNewswire/ -- LiveXLive Media (Nasdaq: LIVX) ("LiveXLive"), a global platform for livestream and on-demand audio, video and podcast/vodcast content in music, comedy and pop culture, and owner of PodcastOne, Slacker Radio, React Presents and Custom Personalization Solutions, announced today that it is increasing its revenue guidance for the fiscal year ending March 31, 2022 to between $107 million to $115 million with Adjusted Operating Income* of between $5 million to $10 million from its core operations.

The increase in guidance is primarily driven by:

• Ticket sales, sponsorships, NFTs, and merchandise revenue from the upcoming live and pay-per-view pop culture boxing and music event Social Gloves: Battle of the Platforms on June 12^th at the Hard Rock Stadium in Miami Gardens, FL - when the world's biggest social media stars from YouTube and TikTok will face off, plus live music performances from DJ Khaled, Lil Baby, Migos, and Trippie Redd.
• The expected return of live music events owned and produced by LiveXLive's wholly-owned subsidiary, React Presents, including the annual Spring Awakening Festival scheduled for October 2021 in Chicago.
• Continued growth in subscriptions, advertising, and sponsorship, as LiveXLive now has 1.1 million paid subscribers**.

Robert Ellin, CEO and Chairman of LiveXLive, commented, "There is an enormous pent-up demand for live music events, and we are extremely well positioned for the expected near-term return of live music. We expect an increase in revenue from the return of live events in nearly every aspect of our flywheel of associated businesses – live ticket sales, livestream, pay-per-view, advertising, sponsorship, NFTs, and specialty merchandise."      

*See the definition of Adjusted Operating Income under "About Non-GAAP Financial Measures" within this release.
**Included in the total number are certain subscribers which are the subject of a contractual dispute. LiveXLive is currently not recognizing revenue related to these subscribers.

LiveXLive has the first talent-centric platform focused on superfans and building long-term franchises in on-demand audio and video, podcasting, vodcasting, OTT linear channels, pay-per-view ("PPV"), and livestreaming. Its model includes multiple monetization paths including subscription, advertising, sponsorship, merchandise sales, licensing, and ticketing.

About LiveXLive Media, Inc.
Headquartered in Los Angeles, California, LiveXLive Media, Inc. (NASDAQ: LIVX) (the "Company") (pronounced Live "by'' Live) is a leading global all-in-one streaming artist-first platform delivering premium music and entertainment content and livestreams from the world's top artists, expertly curated streaming radio stations, podcasts, and original video and audio on-demand content, as well as personalized merchandise, connecting artists to millions of fans every day. The Company has streamed over 1,800 artists since January 2020 and has created a valuable connection between bands, fans and brands by building long-term franchises in audio, video, podcasting, pay-per-view (PPV), livestreaming, and specialty merchandise. LiveXLive is available on iOS, Android, Roku, Apple TV, and Amazon Fire, and through OTT, Samsung TV, STIRR, Sling, and XUMO, in addition to its own app, online website and social channels. The Company's wholly owned subsidiary PodcastOne, generates more than 2.25 billion downloads per year with 400+ episodes distributed per week across a stable of hundreds of top podcasts. The Company's other major wholly owned subsidiaries are LiveXLive, Slacker Radio, React Presents and Custom Personalization Solutions. For more information, visit www.livexlive.com and follow us on Facebook, Instagram, TikTok and Twitter at @livexlive.

* About Non-GAAP Financial Measures 
To supplement our consolidated financial statements, which are prepared and presented in accordance with the accounting principles generally accepted in the United States of America ("GAAP"), we present Adjusted Operating Income ("AOI"), which is a non-GAAP financial measure, as a measure of our performance. The presentation of this non-GAAP financial measure is not intended to be considered in isolation from, or as a substitute for, or superior to, net income or any other performance measures derived in accordance with GAAP or as an alternative to net cash provided by operating activities or any other measures of our cash flows or liquidity.

We use AOI to evaluate the performance of our operating segment. We believe that information about this non-GAAP financial measure assists investors by allowing them to evaluate changes in the operating results of our business separate from non-operational factors that affect operating income (loss) and net income (loss), thus providing insights into both operations and the other factors that affect reported results. AOI is not calculated or presented in accordance with GAAP. A limitation of the use of AOI as a performance measure is that it does not reflect the periodic costs of certain amortizing assets used in generating revenue in our business. Accordingly, AOI should be considered in addition to, and not as a substitute for, operating income, net income, and other measures of financial performance reported in accordance with GAAP. Furthermore, this measure may vary among other companies; thus, AOI as presented herein may not be comparable to similarly titled measures of other companies.

AOI is defined as operating income before (a) non-cash GAAP purchase accounting adjustments for certain deferred revenue and costs, (b) legal, accounting and other professional fees directly attributable to acquisition activity, (c) employee severance payments and third party professional fees directly attributable to acquisition or corporate realignment activities, (d) certain non-recurring expenses associated with legal settlements or reserves for legal settlements in the period that pertain to historical matters that existed at acquired companies prior to their purchase date and a one-time minimum guarantee to effectively terminate a live events distribution agreement post COVID-19, (e) depreciation and amortization (including goodwill impairment, if any), and (f) certain stock-based compensation expense. Management does not consider these costs to be indicative of our core operating results.

We define subscription traffic and engagement metrics to include unique users who (1) access our audio music subscription platform and (2) who watch our livestream events across a variety of mobile, OTT and desktop applications and channels. We use this user metric for financial and operational decision-making and as a means to evaluate period-to-period comparisons. We present user metrics because we believe them to be an important supplemental measure of performance that is commonly used by securities analysts, investors and other interested parties in the evaluation of companies in its industry and because it believes that these metrics provide useful information to investors regarding our financial condition and results of operations. 

With respect to projected full year 2022 AOI from Core Operations, a quantitative reconciliation is not available without unreasonable efforts due to the high variability, complexity and low visibility with respect to purchase accounting adjustments, acquisition-related charges and legal settlement reserves excluded from AOI. We expect that the variability of these items to have a potentially unpredictable, and potentially significant, impact on our future GAAP financial results.

Forward-Looking Statements
All statements other than statements of historical facts contained in this press release are "forward-looking statements," which may often, but not always, be identified by the use of such words as "may," "might," "will," "will likely result," "would," "should," "estimate," "plan," "project," "forecast," "intend," "expect," "anticipate," "believe," "seek," "continue," "target" or the negative of such terms or other similar expressions. These statements involve known and unknown risks, uncertainties and other factors, which may cause actual results, performance or achievements to differ materially from those expressed or implied by such statements, including: the Company's reliance on one key customer for a substantial percentage of its revenue; the Company's ability to consummate any proposed financing, acquisition or transaction, the timing of the closing of such proposed event, including the risks that a condition to closing would not be satisfied within the expected timeframe or at all, or that the closing of any proposed financing, acquisition or transaction will not occur or whether any such event will enhance shareholder value; the Company's ability to continue as a going concern; the Company's ability to attract, maintain and increase the number of its users and paid subscribers; the Company identifying, acquiring, securing and developing content; the Company's intent to repurchase shares of its common stock from time to time under its announced stock repurchase program and the timing, price, and quantity of repurchases, if any, under the program; the Company's ability to maintain compliance with certain financial and other covenants; the Company successfully implementing its growth strategy, including relating to its technology platforms and applications; management's relationships with industry stakeholders; the effects of the global Covid-19 pandemic; changes in economic conditions; competition; risks and uncertainties applicable to the businesses of the Company's subsidiaries; and other risks, uncertainties and factors including, but not limited to, those described in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2020, filed with the U.S. Securities and Exchange Commission (the "SEC") on June 26, 2020, Quarterly Report on Form 10-Q for the quarter ended December 31, 2020, filed with the SEC on February 16, 2021, and in the Company's other filings and submissions with the SEC. These forward-looking statements speak only as of the date hereof and the Company disclaims any obligations to update these statements, except as may be required by law. The Company intends that all forward-looking statements be subject to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995.

Press Contact:
917.842.9653
aileen@livexlive.com

LiveXLive IR Contact:
310.601.2505
ir@LiveXLive.com

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SOURCE LiveXLive Media, Inc.

FAQ

What is the updated revenue guidance for LiveXLive (LIVX) for fiscal year 2022?

LiveXLive has increased its revenue guidance for the fiscal year 2022 to between $107 million and $115 million.

What factors are driving the revenue increase for LIVX?

The revenue increase is driven by ticket sales, sponsorships, NFTs, and the return of live music events, including the Social Gloves event.

How many paid subscribers does LiveXLive currently have?

LiveXLive currently has 1.1 million paid subscribers.

What is the expected Adjusted Operating Income for LiveXLive for the fiscal year 2022?

The expected Adjusted Operating Income for LiveXLive for fiscal year 2022 is between $5 million and $10 million.