CORRECTING and REPLACING Loop Media Reports Fiscal Second Quarter 2023 Financial Results
FQ2 Revenue up
The updated release reads:
LOOP MEDIA REPORTS FISCAL SECOND QUARTER 2023 FINANCIAL RESULTS
FQ2 Revenue up
Loop Media, Inc. (“Loop Media” or “Loop” or the “Company”) (NYSE American: LPTV), a leading multichannel streaming platform that provides curated music video and branded entertainment channels for businesses, is reporting financial and operating results for its fiscal second quarter ended March 31, 2023.
Fiscal Q2 2023 vs. Fiscal Q2 2022 Highlights (unless otherwise noted)
-
Revenue increased approximately
11% to$5.4 million -
Gross profit increased to
$1.6 million 29.4% . -
Net loss was
$9.8 million $(0.17) $5.0 million $(0.11) -
Adjusted EBITDA (a non-GAAP financial measure defined below) was
$(5.6) million $(3.0) million -
As of March 31, 2023, the Company had 32,734 quarterly active units (QAUs) operating on its platform, an increase of
22% compared to FQ1 2023.
Management Commentary
“While we did achieve quarterly growth year-on-year, the sequential high level revenue growth we have seen over the past four quarters pulled back during this second quarter due to the challenging macroeconomic environment coupled with the toughest advertising quarter of the year due to seasonality. To counteract that, our various advertising and marketing initiatives resulted in a
“In addition, we are being extra diligent to scrutinize costs, reduce spending and create efficiencies where we can to strengthen the bottom line. We’ve already pinpointed significant cost reductions by the end of Q3 that we believe will help achieve this goal while also building our margins. We believe this can happen without jeopardizing future growth while we work our way aggressively towards becoming positive cashflow,” Niermann added.
“We’re now ready and able to deploy our direct sales initiative designed to accelerate Loop’s ad revenue growth directly from marketers and their agencies. This is expected to apply positive pressure to Loop’s inventory, increasing sell-through while growing CPMs. We believe a healthy mix of direct + programmatic ad revenue is coming at the right time given Loop’s size and leadership position in the CTV for Business and DOOH marketplace,” said Bob Gruters, CRO of Loop.
Fiscal Second Quarter 2023 Financial Results
In the fiscal second quarter, revenue increased approximately
Gross profit in the fiscal second quarter of 2023 increased slightly to
Total sales, general, and administrative (“SG&A”) expenses (excluding stock-based compensation and depreciation and amortization) in the fiscal second quarter of 2023 were
Net loss in the fiscal second quarter of 2023 was
Adjusted EBITDA in the fiscal second quarter of 2023 was
On March 31, 2023, cash and cash equivalents were
Conference Call
The Company will conduct a conference call today, May 11, 2023, at 5:00 p.m. Eastern Daylight Time to discuss financial and operating results for its second quarter ended March 31, 2023.
Loop’s management will host the conference call, followed by a question and answer period.
Date: May 11, 2023
Time: 5:00 p.m. Eastern Standard Time
Participant registration link: here
The conference call will also be available for replay on the investor relations section of the Company’s website at www.loop.tv/investors.
About Loop Media, Inc.
Loop Media, Inc. (“Loop Media”) (NYSE American: LPTV) is a leading digital out of home (DOOH) TV and digital signage platform optimized for businesses, streaming more than 200 free music video, news, sports and entertainment channels through its Loop TV service. Loop Media is the leading company in the
Loop Media’s digital video content reaches millions of viewers in DOOH locations including bars/restaurants, office buildings, retail businesses, college campuses, airports and on free ad-supported TV platforms like Roku and at local gas stations on GSTV terminals in
Loop is fueled by one of the largest and most important video libraries that includes music videos, movie trailers and live performances. Loop Media’s non-music channels cover a multitude of genres and moods and include movie trailers, sports highlights, lifestyle and travel videos, viral videos and more. Loop Media’s streaming services generate revenue from advertising, sponsorships, integrated marketing and branded content and from subscriptions.
To learn more about Loop Media products and applications, please visit us online at Loop.tv
Follow us on social:
Instagram: @loopforbusiness
Twitter: @loopforbusiness
LinkedIn: https://www.linkedin.com/company/looptv/
Safe Harbor Statement and Disclaimer
This news release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, but not limited to, Loop Media’s expected 2023 results, ability to compete in the highly competitive markets in which it operates, statements regarding Loop Media’s ability to develop talent and attract future talent, the success of strategic actions Loop Media is taking, and the impact of strategic transactions. Forward-looking statements give our current expectations, opinion, belief or forecasts of future events and performance. A statement identified by the use of forward-looking words including "will," "may," "expects," "projects," "anticipates," "plans," "believes," "estimate," "should," and certain of the other foregoing statements may be deemed forward-looking statements. Although Loop Media believes that the expectations reflected in such forward-looking statements are reasonable, these statements involve risks and uncertainties that may cause actual future activities and results to be materially different from those suggested or described in this news release. Investors are cautioned that any forward-looking statements are not guarantees of future performance and actual results or developments may differ materially from those projected. The forward-looking statements in this press release are made as of the date hereof. Loop Media takes no obligation to update or correct its own forward-looking statements, except as required by law, or those prepared by third parties that are not paid for by Loop Media. Loop Media’s SEC filings are available at www.sec.gov.
Non-GAAP Measures
Loop Media uses non-GAAP financial measures, including adjusted EBITDA and quarterly active units or QAUs, as supplemental measures of the performance of the Company’s business. Use of these financial measures has limitations, and you should not consider them in isolation or use them as substitutes for analysis of Loop Media’s financial results under generally accepted accounting principles in
The Company defines an “active unit” as (i) an ad-supported Loop Player (or DOOH location using our ad-supported service through our “Loop for Business” application or using a DOOH venue-owned computer screening our content) that is online, playing content, and has checked into the Loop analytics system at least once in the 90-day period or (ii) a DOOH location customer using our paid subscription service at any time during the 90-day period. The Company uses “QAU” to refer to the number of such active units during such period.
| LOOP MEDIA, INC. | ||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||
| (UNAUDITED) | ||||||||||||
| Three months ended March 31, | Six months ended March 31, | |||||||||||
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||
| Revenue | $ | 5,393,231 |
$ | 4,879,839 |
$ | 20,219,062 |
$ | 7,875,873 |
||||
| Cost of revenue | ||||||||||||
| Cost of revenue - Advertising and Legacy and other revenue | 3,177,607 |
3,169,059 |
11,635,240 |
4,302,981 |
||||||||
| Cost of revenue - depreciation and amortization | 630,543 |
346,158 |
1,312,710 |
657,213 |
||||||||
| Total cost of revenue | 3,808,150 |
3,515,217 |
12,947,950 |
4,960,194 |
||||||||
| Gross profit | 1,585,081 |
1,364,622 |
7,271,112 |
2,915,679 |
||||||||
| Gross margin % |
|
|
|
|
||||||||
| Operating expenses | ||||||||||||
| Sales, general and administrative | 7,769,314 |
4,686,326 |
15,727,448 |
9,014,197 |
||||||||
| Stock-based compensation | 2,475,807 |
1,173,106 |
4,266,614 |
2,722,512 |
||||||||
| Depreciation and amortization | 235,009 |
32,399 |
422,725 |
64,802 |
||||||||
| Total operating expenses | 10,480,130 |
5,891,831 |
20,416,787 |
11,801,511 |
||||||||
| Loss from operations | (8,895,049) |
(4,527,209) |
(13,145,675) |
(8,885,832) |
||||||||
| Other income (expense) | ||||||||||||
| Interest income | — |
— |
— |
200 |
||||||||
| Interest expense | (919,444) |
(494,389) |
(1,927,027) |
(998,506) |
||||||||
| Gain (Loss) on extinguishment of debt, net | — |
— |
— |
490,051 |
||||||||
| Change in fair value of derivatives | — |
47,568 |
— |
146,313 |
||||||||
| Other income | (2,624) |
— |
(2,624) |
— |
||||||||
| Total other income (expense) | (922,068) |
(446,821) |
(1,929,651) |
(361,942) |
||||||||
| Loss before income taxes | (9,817,117) |
(4,974,030) |
(15,075,326) |
(9,247,774) |
||||||||
| Income tax (expense)/benefit | — |
(800) |
(1,230) |
(1,051) |
||||||||
| Net loss | $ | (9,817,117) |
$ | (4,974,830) |
$ | (15,076,556) |
$ | (9,248,825) |
||||
| Basic and diluted net loss per common share | $ | (0.17) |
$ | (0.11) |
$ | (0.27) |
$ | (0.21) |
||||
| Weighted average number of basic and diluted common shares outstanding | 56,381,209 |
45,531,995 |
56,381,209 |
45,005,276 |
||||||||
| LOOP MEDIA, INC. | |||||||||||||
| EBITDA RECONCILIATION | |||||||||||||
| (UNAUDITED) | |||||||||||||
| Three months ended March 31, | Six months ended March 31, | ||||||||||||
2023 |
|
2022 |
|
2023 |
|
2022 |
|||||||
| GAAP net loss | $ | (9,817,117) |
$ | (4,974,830) |
$ | (15,076,556) |
$ | (9,248,825) |
|||||
| Adjustments to reconcile to EBITDA: | |||||||||||||
| Interest expense | 919,444 |
494,389 |
1,927,027 |
998,506 |
|||||||||
| Interest income | — |
— |
— |
(200) |
|||||||||
| Depreciation and amortization expense* | 865,552 |
378,557 |
1,735,435 |
722,015 |
|||||||||
| Income tax expense (benefit) | — |
800 |
1,230 |
1,051 |
|||||||||
| EBITDA | $ | (8,032,121) |
$ | (4,101,084) |
$ | (11,412,864) |
$ | (7,527,453) |
|||||
| * Includes amortization of content assets and for cost of revenue and operating expenses. | |||||||||||||
| LOOP MEDIA, INC. | ||||||||||||
| ADJUSTED EBITDA RECONCILIATION | ||||||||||||
| (UNAUDITED) | ||||||||||||
| Three months ended March 31, | Six months ended March 31, | |||||||||||
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||
| GAAP net loss | $ | (9,817,117) |
$ | (4,974,830) |
$ | (15,076,556) |
$ | (9,248,825) |
||||
| Adjustments to reconcile to Adjusted EBITDA: | ||||||||||||
| Interest expense | 919,444 |
494,389 |
1,927,027 |
998,506 |
||||||||
| Interest income | — |
— |
— |
(200) |
||||||||
| Depreciation and amortization expense* | 865,552 |
378,557 |
1,735,435 |
722,015 |
||||||||
| Income tax expense (benefit) | — |
800 |
1,230 |
1,051 |
||||||||
| Stock-based compensation** | 2,475,807 |
1,173,106 |
4,266,614 |
2,722,512 |
||||||||
| Gain on extinguishment of debt | — |
— |
— |
(490,051) |
||||||||
| Change in fair value of derivative | — |
(47,568) |
— |
(146,313) |
||||||||
| Adjusted EBITDA | $ | (5,556,314) |
$ | (2,975,546) |
$ | (7,146,250) |
$ | (5,441,305) |
||||
| * Includes amortization of content assets and for cost of revenue and operating expenses. | ||||||||||||
| ** Includes options, Restricted Stock Units ("RSUs") and warrants. | ||||||||||||
LOOP MEDIA, INC. |
||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||
| March 31, 2023 | September 30, 2022 | |||||
| ASSETS | (UNAUDITED) | |||||
| Current assets | ||||||
| Cash | $ | 4,650,763 |
$ | 14,071,914 |
||
| Accounts receivable, net | 5,694,321 |
12,590,970 |
||||
| Prepaid expenses and other current assets | 918,175 |
1,496,566 |
||||
| Deferred offering costs | 232,845 |
— |
||||
| Content assets - current | 2,700,232 |
745,633 |
||||
| Total current assets | 14,196,336 |
28,905,083 |
||||
| Non-current assets | ||||||
| Deposits | 64,090 |
63,889 |
||||
| Content assets - non current | 1,111,580 |
678,659 |
||||
| Property and equipment, net | 2,701,130 |
1,633,169 |
||||
| Operating lease right-of-use assets | 17,185 |
76,696 |
||||
| Intangible assets, net | 534,111 |
590,333 |
||||
| Total non-current assets | 4,428,096 |
3,042,746 |
||||
| Total assets | $ | 18,624,432 |
$ | 31,947,829 |
||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||
| Current liabilities | ||||||
| Accounts payable | $ | 6,883,215 |
$ | 7,453,801 |
||
| Accrued liabilities | 3,413,038 |
5,620,873 |
||||
| Accrued royalties and revenue share | 3,184,604 |
4,559,088 |
||||
| Payable on acquisition | — |
250,125 |
||||
| License content liabilities - current | 1,282,655 |
1,092,819 |
||||
| Deferred Income | — |
140,764 |
||||
| Lease liability - current | 18,483 |
75,529 |
||||
| Non-revolving line of credit | 1,809,594 |
— |
||||
| Total current liabilities | 16,591,589 |
19,192,999 |
||||
| Non-current liabilities | ||||||
| Non-revolving line of credit | — |
1,494,469 |
||||
| Non-revolving line of credit, related party | 3,088,753 |
2,575,753 |
||||
| Revolving line of credit | 4,185,069 |
3,030,516 |
||||
| Total non-current liabilities | 7,273,822 |
7,100,738 |
||||
| Total liabilities | 23,865,411 |
26,293,737 |
||||
| Commitments and contingencies | — |
— |
||||
| Stockholders’ equity | ||||||
| Common Stock, |
5,638 |
5,638 |
||||
| Additional paid in capital | 106,151,803 |
101,970,318 |
||||
| Accumulated deficit | (111,398,420) |
(96,321,864) |
||||
| Total stockholders' equity | (5,240,979) |
5,654,092 |
||||
| Total liabilities and stockholders' equity | $ | 18,624,432 |
$ | 31,947,829 |
||
| LOOP MEDIA, INC. | ||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||
| (UNAUDITED) | ||||||
| Six months ended March 31, | ||||||
2023 |
|
2022 |
||||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||||
| Net loss | $ | (15,076,556) |
$ | (9,248,825) |
||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||
| Amortization of debt discount | 1,244,329 |
713,197 |
||||
| Depreciation and amortization expense | 422,725 |
64,802 |
||||
| Amortization of content assets | 1,312,710 |
657,213 |
||||
| Amortization of right-of-use assets | 59,511 |
78,114 |
||||
| Bad debt expense | — |
20,000 |
||||
| Gain on extinguishment of debt, net | — |
(490,051) |
||||
| Change in fair value of derivative | — |
(146,313) |
||||
| Stock-based compensation | 4,266,614 |
2,722,512 |
||||
| Payment in kind for interest stock issuance | — |
88,500 |
||||
| Change in operating assets and liabilities: | ||||||
| Accounts receivable | 6,896,649 |
(3,075,632) |
||||
| Prepaid income tax | — |
(1,842) |
||||
| Inventory | 10,252 |
160,965 |
||||
| Prepaid expenses | 568,138 |
(11,720) |
||||
| Deposit | (201) |
(29,590) |
||||
| Accounts payable | (1,181,952) |
871,866 |
||||
| Accrued liabilities | (2,207,835) |
1,033,139 |
||||
| Accrued royalties and revenue share | (1,374,484) |
1,964,214 |
||||
| Licensed content liability | (3,457,477) |
(853,500) |
||||
| Operating lease liabilities | (57,046) |
(80,877) |
||||
| Deferred income | (140,764) |
(34,392) |
||||
| NET CASH USED IN OPERATING ACTIVITIES | (8,715,387) |
(5,598,220) |
||||
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||||
| Purchase of property and equipment | (1,046,876) |
— |
||||
| NET CASH USED IN INVESTING ACTIVITIES | (1,046,876) |
— |
||||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||||
| Proceeds from issuance of common stock | — |
1,250,000 |
||||
| Proceeds from credit facility | — |
1,500,000 |
||||
| Proceeds from line of credit | 28,087,249 |
— |
||||
| Payments from line of credit | (27,326,600) |
— |
||||
| Debt issuance costs | (22,300) |
— |
||||
| Issuance costs for stock uplist | (86,330) |
— |
||||
| Deferred offering costs | (61,983) |
(123,498) |
||||
| Payment of acquisition related consideration | (250,125) |
— |
||||
| Repayment of stockholder loans | — |
(552,832) |
||||
| Short swing profit recovery | 1,201 |
|||||
| NET CASH PROVIDED BY FINANCING ACTIVITIES | 341,112 |
2,073,670 |
||||
| Change in cash and cash equivalents | (9,421,151) |
(3,524,550) |
||||
| Cash, beginning of period | 14,071,914 |
4,162,548 |
||||
| Cash, end of period | $ | 4,650,763 |
$ | 637,998 |
||
| SUPPLEMENTAL DISCLOSURES OF CASH FLOW STATEMENTS | ||||||
| Cash paid for interest | $ | 665,309 |
$ | 101,186 |
||
| Cash paid for income taxes | $ | 1,230 |
$ | 1,051 |
||
| SUPPLEMENTAL DISCLOSURES OF NON CASH INVESTING AND FINANCING ACTIVITIES | ||||||
| Payment in kind common stock payment | $ | — |
$ | 88,496 |
||
| Conversion of Preferred Class B stock to common stock | $ | — |
$ | 1,980 |
||
| Unpaid deferred offering costs | $ | 170,862 |
$ | 247,023 |
||
| Unpaid additions to property and equipment | $ | 387,588 |
$ | — |
||
| Investment in licensed content and internally developed content | $ | 52,916 |
$ | — |
||
View source version on businesswire.com: https://www.businesswire.com/news/home/20230511005611/en/
Loop Media Investor Contact
James Cerna, Head of Capital Markets
ir@loop.tv
Loop Media Press Contact
Samara Cooperberg, Associate Vice President
looptv@5wpr.com
Source: Loop Media, Inc.
