LiveXLive Media Announces Fiscal 2021 Preliminary Results, 12th Consecutive Quarter Of Record Revenue, And Raises Fiscal 2022 Guidance
LiveXLive Media reported record revenue of $65.2 million for the fiscal year ended March 31, 2021, alongside a contribution margin of $16.2 million. Revenue growth was mainly fueled by advertising, merchandising, and sponsorships. However, the company experienced a net loss of $41.8 million and an operating loss of $29.4 million. Despite these losses, adjusted operating loss improved to ($5.8) million. The total paid subscriber base increased to 1.073 million. The company anticipates growth with live events resuming, while actively exploring strategic alternatives for shareholder value enhancement.
- Record revenue of $65.2 million for fiscal 2021.
- Contribution margin reached $16.2 million.
- Paid subscribers increased 27% year-over-year to 1,073,000.
- Generated approximately $16 million in PPV packages and sponsorships in 2021.
- Net loss of $41.8 million for fiscal year 2021.
- Operating loss of $29.4 million.
- Revenue from some subscribers not recognized due to a contractual dispute.
- Increased operating expenses of $2.9 million compared to prior year.
LOS ANGELES, June 28, 2021 /PRNewswire/ -- LiveXLive Media, Inc. (Nasdaq: LIVX) ("LiveXLive"), a global platform for live stream and on-demand audio, video and podcast content in music, comedy and pop culture, and owner of PodcastOne, Slacker Radio, React Presents and Custom Personalization Solutions ("CPS"), announced today record revenue and contribution margin* for its fourth fiscal quarter and year ended March 31, 2021.
In fiscal 2021, LiveXLive posted record revenue of
LiveXLive's CEO and Chairman, Robert Ellin, commented, "Despite tremendous headwinds in calendar 2020 due to COVID 19, we managed record financial results across nearly all operating metrics. We were able to complete two extremely additive and accretive acquisitions – PodcastOne and our new merchandise company, CPS, which rounds out our flywheel of associated businesses. With the imminent return of live music events, we expect an increase in revenue from nearly every aspect of our flywheel – live ticket sales, live stream, pay-per-view, advertising, sponsorship, NFTs, and specialty merchandise."
Mr. Ellin continued, "We are building long term, sustainable, valuable franchises in audio music, podcasting, OTT, pay-per-view and live streaming."
Recent Highlights
- LiveXLive's production of the inaugural live PPV of the Social Gloves: Battle of the Platforms event delivered over 3.5 billion total impressions and Social Gloves drove over 8,000 new paid subscribers of the LiveXLive app.
- Since launching its PPV platform, LiveXLive has generated approximately
$16 million in PPV packages, sponsorships, and merchandise sales in the current calendar year. - As previously announced in January 2021, with the assistance of J.P. Morgan, LiveXLive is continuing a process to explore strategic alternatives in order to enhance shareholder value. Potential alternatives may include, among others, a strategic acquisition, divestiture, merger, sale or other form of business combination. There can be no assurance that LiveXLive's efforts will result in a specific transaction or any particular outcome or its timing.
- During fiscal year 2021, LiveXLive livestreamed 146 live music events and 1,781 artists across the LiveXLive platform, generating over 149 million live views.
- LiveXLive's 24-hour linear OTT streaming channel reaches over 294 million people on Amazon Fire, Roku, Apple TV, SLING, Xumo, and ReachTV, Consumable TV streaming original content, artist interviews, concerts, festivals, ancillary event-related content, and short-form video content from around the world.
- ** Paid subscribers as of March 31, 2021 increased to 1,073,000 as compared to 848,000 subscribers at March 31, 2020 and paid subscribers as of June 15, 2021 increased to over 1,100,000 as compared to 857,000 a year ago. Included in the total number as of March 31, 2021 and June 15, 2021 are certain subscribers which are the subject of a contractual dispute. LiveXLive is currently not recognizing revenue related to these subscribers. Monthly average revenue per user was
$3.48 for the 4th Quarter of Fiscal 2021. - PodcastOne had over 2.27 billion podcast downloads in Fiscal 2021 and its franchise of exclusive shows has now grown to more than 235 and now produces more than 300 podcast episodes per week. Total social media reach across the exclusive talent roster of PodcastOne now exceeds 282 million.
- Engagements within LiveXLive's social media channels garnered a triple-digit year-over-year increase with total engagements up over
20% and average engagements per post up25% . - Announced in December 2020, LiveXLive's board of directors authorized the repurchase up to two million shares of LiveXLive's outstanding common stock from time to time, subject to certain compliance with applicable laws and regulations.
- In June 2021, LiveXLive entered into a new two-year
$7 Million secured revolving credit facility with EastWest Bank that will bear interest at the Prime Rate plus0.5% . Cash and cash equivalents as of June 25, 2021 was approximately$25 Million .
Fourth Quarter 2021 and 2020 Results Summary (in
Three | Three | |||||||
Revenue | $ | 21.0 | $ | 9.9 | ||||
Operating Loss | $ | (8.8) | $ | (7.9) | ||||
Adjusted Operating Loss* | $ | (2.5) | $ | (2.2) | ||||
Total Other Income (Expense), Net | $ | (6.9) | $ | (0.8) | ||||
Net Loss | $ | (15.4) | $ | (8.5) | ||||
Loss per share - basic and diluted | $ | (0.20) | $ | (0.15) | ||||
Fourth Quarter 2021 Results Summary Discussion
For the Q4 fiscal 2021, LiveXLive posted record revenue of
LiveXLive live streamed 37 live events during Q4 fiscal 2021, as compared to 14 in Q4 fiscal 2020, significantly reduced the cost per event, and made incremental investments of
Q4 fiscal 2021 Operating Loss of (
Q4 fiscal 2021 AOL* of (
Capital expenditures for Q4 fiscal 2021 totaled approximately
At March 31, 2021, LiveXLive had
Subsequent to March 31, 2021, LiveXLive received notification from its lenders under the Small Business Administration's Payroll Protection Program ("PPP") that the entire balance of the approximately
The Company is in process of finalizing the accounting of its recent acquisition, Customized Personalization Solutions ("CPS"), which was acquired in December 2020, as a result, the Company will file an extension for its Annual Report on Form 10-K for the year ended March 31, 2021. The Company's financial results and guidance may be subject to change based on the outcome of this process.
The Company expects that it will finalize its financial statements and file the related Annual Report as soon as practicable within the extension period.
About LiveXLive Media, Inc.
Headquartered in Los Angeles, California, LiveXLive Media, Inc. (NASDAQ: LIVX) (the "Company") (pronounced Live "by ''Live) is a global talent-first, interactive music, sports, and entertainment subscription platform delivering premium content and livestreams from the world's top artists. The Company has streamed over 1,800 artists since January 2020, a library featuring close to 30 million songs, 500 expertly curated radio stations, 235 podcasts/vodcasts, hundreds of pay-per-views, personalized merchandise, an NFT business, and has created a valuable connection between brands, fans, and bands. LiveXLive Media's other major wholly-owned subsidiaries are LiveXLive, Slacker Radio, React Presents, Custom Personalization Solutions, and PodcastOne, which generates more than 2.27 billion downloads per year 300+ episodes distributed per week across a stable of hundreds of top podcasts. The combination of acquisitions and the expansion of products and franchises have secured LiveXLive as a top-rated music, entertainment and media services company. LiveXLive is available on iOS, Android, Roku, Apple TV, and Amazon Fire, and through OTT, STIRR, Sling, and XUMO, in addition to its app, online website, and social channels. 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 Contribution Margin (Loss), Adjusted Operating Income ("AOI") and Adjusted Operating Loss ("AOL"), which are non-GAAP financial measures, as measures of our performance. The presentation of these non-GAAP financial measures is not intended to be considered in isolation from, or as a substitute for, or superior to, operating loss and or net income (loss) 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 Contribution Margin (Loss) and AOL to evaluate the performance of our operating segment. We believe that information about these non-GAAP financial measures 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. AOL is not calculated or presented in accordance with GAAP. A limitation of the use of AOL 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, AOL should be considered in addition to, and not as a substitute for, operating income (loss), net income (loss), and other measures of financial performance reported in accordance with GAAP. Furthermore, this measure may vary among other companies; thus, AOL as presented herein may not be comparable to similarly titled measures of other companies.
Contribution Margin (Loss) is defined as Revenue less Cost of Sales. AOI/AOL is defined as operating income (loss) 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.
With respect to projected full year 2021 AOL and full year 2022 AOI from 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 AOL and AOI. We expect that the variability of these items to have a potentially unpredictable, and potentially significant, impact on our future GAAP financial results.
For more information on this non-GAAP financial measure, please see the table entitled "Reconciliation of Non-GAAP Measure to GAAP Measure" included at the end of this release.
Forward-Looking Statements
We make forward-looking statements in this release within the meaning of the Private Securities Litigation Reform Act of 1995 (the "PSLRA"). Certain statements contained in this earnings release (or otherwise made by us or on our behalf from time to time in other reports, filings with the U.S. Securities and Exchange Commission (the "SEC"), news releases, conferences, internet postings or otherwise) that are not statements of historical fact constitute "forward-looking statements" notwithstanding that such statements are not specifically identified. These forward-looking statements relate to our expectations or forecasts for future events, including without limitation our earnings, revenues, expenses, Adjusted Operating Income, Adjusted Operating Loss, Contribution Margin (Loss), capital expenditures or other future financial or business performance or strategies, or the impact of legal or regulatory matters on our business, results of operations or financial condition. These statements may be preceded by, followed by or include the words "may," "might," "will," "will likely result," "should," "estimate," "plan," "project," "forecast," "intend," "expect," "anticipate," "believe," "hope," "seek," "continue," "target" or similar expressions. These forward-looking statements are not guarantees of future performance and are based on information available to us as of the date of this release and on our current expectations, forecasts and assumptions, and involve substantial risks and uncertainties. Actual results may vary materially from those expressed or implied by the forward-looking statements herein due to a variety of factors, risks and uncertainties, including: our reliance on one key customer for a substantial percentage of its revenue; our ability to consummate any proposed financing, acquisitions or transaction and 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 such event will enhance shareholder value; our ability to continue as a going concern; our ability to attract, maintain and increase the number of its users and paid subscribers, as well as our ability to recognize revenue for those subscribers which are the subject of a contractual dispute; us identifying, acquiring, securing and developing content; our intent to repurchase shares of our common stock from time to time under our announced stock repurchase program and the timing, price, and quantity of repurchases, if any, under the program; our ability to maintain compliance with certain financial and other covenants; successfully implementing our growth strategy, including relating to our technology platforms and applications; ability to integrate our acquired businesses and the ability of the combined businesses to grow; the ability of our executive officers to manage expected growth profitably; the outcome(s) of any legal proceedings pending or that may be instituted against us, our subsidiaries or third parties to whom we may owe indemnification obligations; changes in laws or regulations that apply to us or our industry; our ability to recognize and timely implement future technologies in the music and live streaming space; our ability to capitalize on investments in developing our service offerings, including the LiveXLive app to deliver and develop upon current and future technologies; significant product development expenses associated with our technology initiatives; our ability to deliver end-to-end network performance sufficient to meet increasing customer demands; our ability to timely and economically obtain necessary approval(s), releases and or licenses on a timely basis for the use of music content on our service platform; our ability to obtain and maintain international authorizations to operate its service over the proper foreign jurisdictions its customers utilize; our ability to expand our service offerings and deliver on our service roadmap; our ability to timely and cost-effectively produce, identify and or deliver compelling content that brands will advertise on and or customers will purchase and or subscribe to across our platform; the effects of the global Covid-19 pandemic; general economic and technological circumstances in the music and livestreaming digital markets; our ability to obtain and maintain licenses for content used on legacy music platforms; the loss of, or failure to realize benefits from, agreements with our music labels, publishers and partners; unfavorable economic conditions in the airline industry and economy as a whole; our ability to expand its domestic or international operations, including our ability to grow our business with current and potential future music labels, festivals, publishers, or partners; the effects of service interruptions or delays, technology failures, material defects or errors in our software, damage to our equipment or geopolitical restrictions; costs associated with defending pending or future intellectual property infringement actions and other litigation or claims; increases in our projected capital expenditures due to, among other things, unexpected costs incurred in connection with the roll out of our business plans and technology roadmap or our plans of expansion in North America and internationally; fluctuation in our operating results; the demand for live and music streaming services and market acceptance for our products and services; our incurrence of additional indebtedness in the future; our compliance with the covenants in our senior notes; risks and uncertainties applicable to the businesses of our subsidiaries and other risks, uncertainties and factors, including, but not limited to, those described in our 2020 Annual Report on Form 10-K for the fiscal year ended March 31, 2020, filed with the SEC on June 26, 2020, our Quarterly Report on Form 10-Q for the quarter ended December 31, 2020, filed with the SEC on February 16, 2021, and in our other filings with the SEC. The forward-looking statements contained in this press release speak only as of the date the statements were made. We do not undertake any obligation to update these forward-looking statements, unless required by law. We intend that all forward-looking statements be subject to the safe-harbor provisions of the PSLRA.
LiveXLive IR Contact:
310.601.2500
ir@livexlive.com
Financial Information | ||||||||||||||||
The tables below present financial results for the three and twelve months ended March 31, 2021 and 2020. | ||||||||||||||||
LiveXLive Media, Inc. | ||||||||||||||||
Consolidated Statements of Operations (Unaudited) | ||||||||||||||||
(In thousands, except share and per share amounts) | ||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Revenue: | $ | 21,041 | $ | 9,879 | $ | 65,230 | $ | 38,659 | ||||||||
Operating expenses: | ||||||||||||||||
Cost of sales | 16,462 | 7,682 | 48,987 | 32,786 | ||||||||||||
Sales and marketing | 3,033 | 1,053 | 9,517 | 6,255 | ||||||||||||
Product development | 2,772 | 3,085 | 9,680 | 10,767 | ||||||||||||
General and administrative | 6,071 | 4,719 | 20,831 | 19,120 | ||||||||||||
Amortization of intangible assets | 1,528 | 1,229 | 5,585 | 5,726 | ||||||||||||
Total operating expenses | 29,866 | 17,768 | 94,600 | 74,654 | ||||||||||||
Loss from operations | (8,825) | (7,889) | (29,370) | (35,995) | ||||||||||||
Other income (expense): | ||||||||||||||||
Interest expense, net | (1,207) | (1,038) | (5,303) | (3,738) | ||||||||||||
Loss on extinguishment of debt | (3,692) | - | (5,180) | - | ||||||||||||
Other income (expense) | (1,993) | 201 | (2,312) | 614 | ||||||||||||
Total other expense, net | (6,892) | (837) | (12,795) | (3,124) | ||||||||||||
Loss before income tax benefit | (15,717) | (8,726) | (42,165) | (39,119) | ||||||||||||
Income tax benefit | (350) | (192) | (345) | (192) | ||||||||||||
Net loss | $ | (15,367) | $ | (8,534) | $ | (41,820) | $ | (38,927) | ||||||||
Net loss per share – basic and diluted | $ | (0.20) | $ | (0.15) | $ | (0.61) | $ | (0.69) | ||||||||
Weighted average common shares – basic and diluted | 75,638,949 | 58,670,584 | 69,040,055 | 56,206,107 | ||||||||||||
LiveXLive Media, Inc. | ||||||||
Consolidated Balance Sheets (Unaudited) | ||||||||
(In thousands) | ||||||||
March 31, | March 31, | |||||||
2021 | 2020 | |||||||
Assets | ||||||||
Current Assets | ||||||||
Cash and cash equivalents | $ | 18,635 | $ | 5,702 | ||||
Restricted cash | 135 | 6,735 | ||||||
Accounts receivable, net | 10,567 | 3,889 | ||||||
Prepaid expense and other assets | 3,366 | 1,396 | ||||||
Inventories | 2,568 | - | ||||||
Total Current Assets | 35,271 | 17,722 | ||||||
Property and equipment, net | 4,367 | 3,397 | ||||||
Goodwill | 22,619 | 9,672 | ||||||
Intangible assets, net | 22,468 | 23,198 | ||||||
Other assets | 1,044 | 127 | ||||||
Total Assets | $ | 85,769 | $ | 54,116 | ||||
Liabilities and Stockholders' Equity (Deficit) | ||||||||
Current Liabilities | ||||||||
Accounts payable and accrued liabilities | $ | 32,646 | $ | 30,723 | ||||
Accrued royalties | 12,349 | 13,071 | ||||||
Notes payable, net | 2,729 | 331 | ||||||
Deferred revenue | 1,262 | 949 | ||||||
Senior secured convertible debentures, net | - | 2,720 | ||||||
Unsecured convertible notes, net | 1,976 | |||||||
Total Current Liabilities | 50,962 | 47,794 | ||||||
Senior secured convertible debentures, net | - | 6,505 | ||||||
Unsecured convertible notes, net | 5,501 | 6,794 | ||||||
Senior secured convertible notes, net | 13,047 | - | ||||||
Notes payable, net | 885 | - | ||||||
Lease liabilities, noncurrent | 742 | 45 | ||||||
Due to music partner | 3,937 | - | ||||||
Other long-term liabilities | 2,422 | - | ||||||
Deferred income taxes | 137 | 108 | ||||||
Total Liabilities | 77,633 | 61,246 | ||||||
Commitments and Contingencies | ||||||||
Stockholders' Equity (Deficit) | ||||||||
Preferred stock, | - | - | ||||||
Common stock, | 77 | 59 | ||||||
Additional paid in capital | 178,000 | 120,932 | ||||||
Accumulated deficit | (169,941) | (128,121) | ||||||
Total stockholders' equity (deficit) | 8,136 | (7,130) | ||||||
Total Liabilities and Stockholders' Equity (Deficit) | $ | 85,769 | $ | 54,116 | ||||
LiveXLive Media, Inc. | ||||||||||||||||||||||||||||
Reconciliation of Non-GAAP Measure to GAAP Measure | ||||||||||||||||||||||||||||
Adjusted Operating Loss* Reconciliation (Unaudited) | ||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Contribution |
|
| Stock-Based | Non- | Other Costs(2) | Adjusted | ||||||||||||||||||||||
Three Months | ||||||||||||||||||||||||||||
Operations | $ | 4,579 | $ | (5,552) | $ | 2,388 | $ | 1,944 | $ | - | $ | 142 | $ | (1,078) | ||||||||||||||
Corporate | - | (3,273) | 7 | 1,305 | - | 584 | (1,377) | |||||||||||||||||||||
Total | $ | 4,579 | $ | (8,825) | $ | 2,395 | $ | 3,249 | $ | - | $ | 726 | $ | (2,455) | ||||||||||||||
Three Months | ||||||||||||||||||||||||||||
Operations | $ | 2,197 | $ | (4,805) | $ | 1,863 | $ | 1,714 | $ | - | $ | 141 | $ | (1,087) | ||||||||||||||
Corporate | - | (3,084) | - | 1,501 | - | 444 | (1,139) | |||||||||||||||||||||
Total | $ | 2,197 | $ | (7,889) | $ | 1,863 | $ | 3,215 | $ | - | $ | 585 | $ | (2,226) | ||||||||||||||
Contribution | Loss from | Depreciation | Stock-Based | Non- | Other | Adjusted | ||||||||||||||||||||||
Twelve Months | ||||||||||||||||||||||||||||
Operations | $ | 16,243 | $ | (16,209) | $ | 8,756 | $ | 6,093 | $ | - | $ | 1,107 | $ | (253) | ||||||||||||||
Corporate | - | (13,161) | 14 | 5,189 | 421 | 1,950 | (5,587) | |||||||||||||||||||||
Total | $ | 16,243 | $ | (29,370) | $ | 8,770 | $ | 11,282 | $ | 421 | $ | 3,057 | $ | (5,840) | ||||||||||||||
Twelve Months Ended March 31, 2020 | ||||||||||||||||||||||||||||
Operations | $ | 5,873 | $ | (22,558) | $ | 8,017 | $ | 6,184 | $ | - | $ | 387 | $ | (7,970) | ||||||||||||||
Corporate | - | (13,437) | 3 | 5,843 | - | 2,913 | (4,678) | |||||||||||||||||||||
Total | $ | 5,873 | $ | (35,995) | $ | 8,020 | $ | 12,027 | $ | - | $ | 3,300 | $ | (12,648) | ||||||||||||||
(1) Non-Recurring Acquisition and Realignment Costs principally include outside legal, accounting and other professional fees directly attributable to acquisition activity in the period. | ||||||||||||||||||||||||||||
(2) Other Non-Operating Costs principally include certain non-recurring expenses associated with legal settlements or reserves for legal settlements in the period that pertain to historical matters that existed at certain acquired companies prior to their purchase date and non-recurring employee severance payments and to a lesser extent, a one-time minimum guarantee to effectively terminate a live-event distribution agreement post COVID-19. | ||||||||||||||||||||||||||||
* See the definition of Adjusted Operating Loss under "About Non-GAAP Financial Measures" within this release. | ||||||||||||||||||||||||||||
LiveXLive Media, Inc. | ||||||||||||||||
Reconciliation of Non-GAAP Measure to GAAP Measure | ||||||||||||||||
Contribution Margin* Reconciliation (Unaudited) | ||||||||||||||||
(In thousands) | ||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Revenue | $ | 21,041 | $ | 9,879 | $ | 65,230 | $ | 38,659 | ||||||||
Less: Cost of Sales | (16,462) | (7,682) | (48,987) | (32,786) | ||||||||||||
Contribution Margin* | $ | 4,579 | $ | 2,197 | $ | 16,243 | $ | 5,873 | ||||||||
* See the definition of Contribution Margin under "About Non-GAAP Financial Measures" within this release. | ||||||||||||||||
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SOURCE LiveXLive Media, Inc.
FAQ
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