Loop Media Reports 2024 Fiscal First Quarter Financial Results
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Insights
Loop Media's report of exceeding the $10 million quarterly revenue mark, especially after a period of consistent $5 million revenues, indicates a significant uptick in the company's financial performance. Notably, the revenue for Q1 FY24 was generated without the influence of political advertising spend, which is typically non-recurring and can inflate figures temporarily. The organic nature of this revenue growth suggests a robust underlying business model that has effectively capitalized on its core offerings. The 79% quarter-over-quarter growth is a strong signal to investors of the company's scalability and potential for market penetration.
Furthermore, the substantial reduction in the Adjusted EBITDA loss by 69% reflects management's successful cost optimization strategies. This improvement in operational efficiency could be a precursor to achieving profitability, an important milestone for investors. However, caution should be exercised as the company enters a historically weaker advertising quarter. The management's conservative outlook aligns with seasonal advertising trends, which could potentially dampen the next quarter's financial results.
The streaming CTV platform industry is experiencing rapid growth, driven by shifts in consumer behavior towards digital media consumption. Loop Media's performance must be contextualized within this industry trend. The company's focus on curating content across various categories, including music videos and premium entertainment, positions it well to capture a diverse audience. The 79% growth in revenue indicates that Loop Media is not only retaining its existing user base but also attracting new users and advertisers.
It's also worth noting that the absence of political advertising revenue in the reported figures provides a more accurate representation of the company's core business strength. This can be seen as a positive indicator of sustainable growth, not skewed by episodic events. However, as the company approaches a typically weaker quarter for advertising, it will be crucial to monitor how Loop Media maintains its growth trajectory amidst these cyclical challenges.
The reported performance of Loop Media, Inc. reflects broader economic conditions, such as consumer spending habits and advertising budgets. The company's success in achieving significant revenue growth without relying on political advertising spend suggests a strong consumer demand for its curated content. This is an encouraging sign against the backdrop of economic uncertainty where discretionary spending can be volatile.
However, the acknowledgment of the upcoming historically weak advertising quarter indicates an awareness of economic cyclicality. It's imperative to consider that while the company has shown resilience, macroeconomic factors such as inflation, interest rates and consumer confidence can impact advertising revenues. The company's conservative stance for the coming quarter could be a strategic move to manage expectations and prepare for potential economic headwinds.
Q1 Shows Improvement on Top and Bottom Lines
Management Commentary
Jon Niermann, CEO and Co-Founder, stated, "After three quarters of just over
"We have now entered the historically worst advertising quarter of the year between January and March where we’ve learned to be more conservative in our expectations, but I am optimistic about the revenue ramp for the second half of 2024 and beyond. We believe the increased awareness of the Loop TV brand, and the expansion of distribution over the past year on our platforms and screens, demonstrates that our sales and marketing efforts are getting us new client wins. Our approach is to leverage our business model to continue to gain new customers on a consistent basis while focusing on the venues and markets that we know provide the best return on our investment and potential for revenue growth."
"Moreover, we will continue to explore strategic M&A opportunities that can allow us to leverage our platforms and networks further to integrate our company vertically," added Mr. Niermann.
"We will continue to focus on tightening the bottom line to achieve our goal of becoming cashflow positive as soon as possible, so that could mean further cost efficiencies will need to be realized, while still being careful not to materially dampen future upside in growth. It’s always a tricky balance to accomplish that, but we plan to keep a consistent eye on it," concluded Mr. Niermann.
2024 Fiscal First Quarter (December 31, 2023) Financial Results
Summary Fiscal Q1 2024 vs. Fiscal Q1 2023
-
Revenue was
$10.2 million $14.8 million -
Net loss was
$(5.3) million $(0.09) $(5.3) million $(0.09) -
Adjusted EBITDA (a non-GAAP financial measure defined below) was
$(1.5) million $(1.6) million -
Gross profit was
$3.6 million $5.7 million -
Gross margin was
35.6% , compared to38.4% . - As of December 31, 2023, we had 33,783 QAUs operating on our O&O Platform, compared to 26,903 QAUs as of December 31, 2022.
- As of December 31, 2023, we had approximately 43,000 screens across our Partner Platforms, compared to 17,000 as of December 31, 2022.
In the 2024 fiscal first quarter, revenue decreased approximately
Gross profit in the 2024 fiscal first quarter was
Total sales, general, and administrative ("SG&A") expenses (excluding stock-based compensation, depreciation and amortization, impairment of goodwill and intangible assets, and restructuring costs) in the 2024 fiscal first quarter were
Net loss in the 2024 fiscal first quarter was
Adjusted EBITDA in the 2024 fiscal first quarter was
On December 31, 2023, cash and cash equivalents were
For the 2024 fiscal first quarter, we had approximately 77,000 active Loop Players and Partner Screens across the Loop Platform, which includes 33,783 quarterly active Loop Players, or QAUs across our O&O Platform, an increase of
Our QAU footprint for the first quarter of fiscal 2024 was reduced as a result of natural attrition of Loop Players that were not immediately replaced, as we transitioned to a more targeted distribution model, pivoting our focus to certain designated advertising markets and geographies, as well as more desirable out-of-home locations and venues, including convenience stores, restaurants, bars, and other retail establishments. We believe this targeted distribution plan will allow us to grow our active Loop Player numbers quarter on quarter and provide a more robust distribution platform for our advertising partners over time. In addition, a number of our Loop Players experienced downtime in September 2023 as a result of an operating program update and technical issues related to outdated WiFi in those venues. Not all of those Loop Players returned to active performance in the first quarter of fiscal 2024.
Conference Call
The Company will conduct a conference call today, February 6, 2024, at 5:00 p.m. Eastern Standard Time to discuss financial and operating results for its 2024 fiscal first quarter ended December 31, 2023.
Loop's management will host the conference call, followed by a question and answer period.
Date: February 6, 2024
Time: 5:00 p.m. Eastern Time
Participant registration link: Q1 Link
Below are the details for those participants who would like to dial in and ask questions.
Conference ID: 9046830
Participant Toll-Free Dial-In Number: 1(800) 715-9871
Participant International Dial-In Number: 1(646) 307-1963
The conference call will also be available for replay on the investor relations section of the Company's website at ir.loop.tv
About Loop Media, Inc.
Loop Media, Inc. ("Loop®") (NYSE American: LPTV) is a leading connected television (CTV) / streaming / digital out-of-home TV and digital signage platform optimized for businesses, providing music videos, news, sports, and entertainment channels through its Loop® TV service. Loop Media is the leading company in the
Loop® TV’s digital video content is streamed to millions of viewers in CTV / streaming / digital out of home locations including bars/restaurants, office buildings, retail businesses, college campuses, airports, among many other venues in
Loop® TV is fueled by one of the largest and most important premium short-form entertainment libraries that includes music videos, movie trailers, branded content, and live performances. Loop Media’s non-music channels cover a wide range 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 programmatic and direct advertising, and subscriptions.
To learn more about Loop Media products and applications, please visit us online at Loop.tv
Follow us on social:
Instagram: @loopforbusiness
X (Twitter): @loopforbusiness
LinkedIn: https://www.linkedin.com/company/loopforbusiness/
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 performance, 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 Securities and Exchange Commission 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 | ||||||||
Three months ended December 31, |
||||||||
2023 |
|
2022 |
||||||
| Revenue | $ | 10,171,256 |
|
$ | 14,825,831 |
|
||
| Cost of revenue | ||||||||
| Cost of revenue - Advertising and Legacy and other revenue | 5,739,710 |
|
8,457,633 |
|
||||
| Cost of revenue - depreciation and amortization | 807,007 |
|
682,167 |
|
||||
| Total cost of revenue | 6,546,717 |
|
9,139,800 |
|
||||
| Gross profit | 3,624,539 |
|
5,686,031 |
|
||||
| Operating expenses | ||||||||
| Sales, general and administrative | 6,170,977 |
|
7,958,134 |
|
||||
| Stock-based compensation | 1,328,225 |
|
1,790,807 |
|
||||
| Depreciation and amortization | 381,875 |
|
187,716 |
|
||||
| Total operating expenses | 7,881,077 |
|
9,936,657 |
|
||||
| Loss from operations | (4,256,538 |
) |
(4,250,626 |
) |
||||
| Other income (expense) | ||||||||
| Interest expense | (1,002,189 |
) |
(1,007,583 |
) |
||||
| Loss on extinguishment of debt | (25,424 |
) |
— |
|
||||
| Other expense | (1,251 |
) |
— |
|
||||
| Total other income (expense) | (1,028,864 |
) |
(1,007,583 |
) |
||||
| Loss before income taxes | (5,285,402 |
) |
(5,258,209 |
) |
||||
| Income tax (expense)/benefit | — |
|
(1,230 |
) |
||||
| Net loss | $ | (5,285,402 |
) |
$ | (5,259,439 |
) |
||
| Basic and diluted net loss per common share | $ | (0.09 |
) |
$ | (0.09 |
) |
||
| Weighted average number of basic and diluted common shares outstanding | 66,787,371 |
|
56,381,209 |
|
||||
|
||||||||
| LOOP MEDIA, INC. | ||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| December 31, 2023 | September 30, 2023 | |||||||
| ASSETS | (UNAUDITED) | |||||||
| Current assets | ||||||||
| Cash | $ | 3,811,159 |
|
$ | 3,068,696 |
|
||
| Accounts receivable, net | 7,941,430 |
|
6,211,815 |
|
||||
| Prepaid expenses and other current assets | 669,360 |
|
987,605 |
|
||||
| Content assets - current | 1,937,900 |
|
2,218,894 |
|
||||
| Total current assets | 14,359,849 |
|
12,487,010 |
|
||||
| Non-current assets | ||||||||
| Deposits | 12,145 |
|
12,054 |
|
||||
| Content assets - non current | 304,180 |
|
448,726 |
|
||||
| Deferred costs - non current | 1,710,583 |
|
744,408 |
|
||||
| Property and equipment, net | 2,533,829 |
|
2,711,558 |
|
||||
| Intangible assets, net | 449,778 |
|
477,889 |
|
||||
| Total non-current assets | 5,010,515 |
|
4,394,635 |
|
||||
| Total assets | $ | 19,370,364 |
|
$ | 16,881,645 |
|
||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 6,627,014 |
|
$ | 4,978,920 |
|
||
| Accrued liabilities | 2,318,599 |
|
3,546,338 |
|
||||
| Accrued royalties and revenue share | 6,277,646 |
|
4,930,329 |
|
||||
| License content liabilities - current | 521,746 |
|
489,157 |
|
||||
| Deferred Income | 19,565 |
|
— |
|
||||
| Revolving line of credit - current | 4,907,573 |
|
2,985,298 |
|
||||
| Non-revolving line of credit | 1,760,000 |
|
2,124,720 |
|
||||
| Total current liabilities | 22,432,143 |
|
19,054,762 |
|
||||
| Non-current liabilities | ||||||||
| License content liabilities - non current | 184,000 |
|
208,000 |
|
||||
| Non-revolving line of credit | 441,390 |
|
475,523 |
|
||||
| Non-revolving line of credit, related party | — |
|
1,959,693 |
|
||||
| Total non-current liabilities | 625,390 |
|
2,643,216 |
|
||||
| Total liabilities | 23,057,533 |
|
21,697,978 |
|
||||
| Commitments and contingencies | — |
|
— |
|
||||
| Stockholders’ equity | ||||||||
| Common Stock, |
7,085 |
|
6,562 |
|
||||
| Additional paid in capital | 129,876,691 |
|
123,462,648 |
|
||||
| Accumulated deficit | (133,570,945 |
) |
(128,285,543 |
) |
||||
| Total stockholders' equity | (3,687,169 |
) |
(4,816,333 |
) |
||||
| Total liabilities and stockholders' equity | $ | 19,370,364 |
|
$ | 16,881,645 |
|
||
| LOOP MEDIA, INC. | ||||||||
| ADJUSTED EBITDA RECONCILIATION | ||||||||
Three months ended December 31, |
||||||||
2023 |
|
2022 |
||||||
| GAAP net loss | $ | (5,285,402 |
) |
$ | (5,259,439 |
) |
||
| Adjustments to reconcile to Adjusted EBITDA: | ||||||||
| Interest expense | 1,002,189 |
|
1,007,583 |
|
||||
| Depreciation and amortization expense* | 1,188,882 |
|
869,883 |
|
||||
| Income tax expense (benefit) | — |
|
1,230 |
|
||||
| Stock-based compensation** | 1,328,225 |
|
1,790,807 |
|
||||
| Non-recurring expense | 257,242 |
|
— |
|
||||
| Loss on extinguishment of debt | 25,424 |
|
— |
|
||||
| Other expense | 1,251 |
|
— |
|
||||
| Adjusted EBITDA | $ | (1,482,189 |
) |
$ | (1,589,936 |
) |
||
| * Includes amortization of content assets and for cost of revenue and operating expenses and ATM facility. | ||||||||
| ** Includes options, Resticted Stock Units ("RSUs") and warrants. | ||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20240206582010/en/
Loop Media Investor Contact
Andrew J. Barwicki
andrew@barwicki.com
ir@loop.tv
Loop Media Press Contact
Jon Lindsay Phillips
loop@phillcomm.global
Source: Loop Media, Inc.
FAQ
What is Loop Media's ticker symbol?
What were Loop Media's Q1 FY24 revenue and the percentage increase from the previous quarter?
What caused the decrease in Loop Media's quarterly Adjusted EBITDA loss?
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