Loop Media Reports Fiscal Fourth Quarter and Full Year 2022 Financial Results
Loop Media (NYSE American: LPTV) reported a remarkable Q4 2022, with revenue up 5x YoY to $12.2 million and full-year revenue increasing 6x to $30.8 million. Gross profit surged to $4.7 million in Q4, lifting gross margins to 38.5%. However, the company faced a net loss of $14.6 million or ($0.28) per share, though this was an improvement from the prior year's loss. Cash and equivalents rose to $14.1 million, thanks to a successful public offering. Looking ahead, Loop aims for continued growth and positive adjusted EBITDA in fiscal 2023.
- Revenue increased 5x YoY to $12.2 million in Q4.
- Full-year revenue rose 6x to $30.8 million.
- Gross profit surged to $4.7 million in Q4, with margins at 38.5%.
- Cash and cash equivalents rose to $14.1 million from $4.2 million YoY.
- Net loss was $14.6 million in Q4, compared to $13.1 million in Q4 2021.
- Adjusted EBITDA remained flat at $(2.7) million.
- Q4 Revenue up 5x YoY to
Summary Fiscal Fourth Quarter 2022 vs. Fiscal Fourth Quarter 2021
-
Revenue increased 5x to
.$12.2 million -
Gross profit increased significantly to
, while gross margin also increased significantly to$4.7 million 38.5% . -
Net loss was
or$14.6 million per share, compared to a loss of$(0.28) or$13.1 million per share.$(0.31) -
Adjusted EBITDA (a non-GAAP financial measure defined below) remained relatively flat at
.$(2.7) million -
As of
September 30, 2022 , the Company had 18,240 quarterly active units, or QAUs, operating on its platform.
Summary Fiscal Year 2022 vs. Fiscal Year 2021
-
Revenue increased 6x to
.$30.8 million -
Gross profit increased significantly to
, while gross margin more than doubled to$11.4 million 36.9% . -
Net loss was
or$29.5 million per share, compared to a loss of$(0.61) or$31.0 million per share.$(0.76) -
Adjusted EBITDA was
compared to$(10.3) million .$(7.8) million
Management Commentary
“Fiscal 2022 was a transformative year for Loop as we accelerated into our next phase of growth, capping off the year with a successful public offering and uplist to the NYSE American,” said
“There are more than 32 million small and medium sized businesses that can leverage our Loop players compared to the 18,000 currently in circulation, which we believe positions us for continued revenue growth, margin expansion, and turning adjusted EBITDA positive in fiscal 2023.”
Fiscal Fourth Quarter 2022 Financial Results
Revenue in the fourth quarter increased 5x to
Gross profit in the fourth quarter of 2022 increased significantly to
Total selling, general, and administrative (“SG&A”) expenses in the fourth quarter of 2022 were
Net loss in the fourth quarter of 2022 was
Adjusted EBITDA in the fourth quarter of 2022 remained relatively flat at
On
Conference Call
The Company will conduct a conference call today,
Loop’s management will host the conference call, followed by a question and answer period.
Date:
Time:
Live webcast registration link: here
Toll-free dial-in number: 1-833-630-1956
If you have any difficulty registering or connecting with the conference call, please contact Elevate IR at (720) 330-2829.
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’s digital video content reaches millions of consumers in OOH 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 and in 400,000 hotel rooms in over 1300 hotels in
Loop is fueled by one of the largest and most important 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 from free-ad-supported-television (“FAST”) and from subscription offerings.
To learn more about
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
Non-GAAP Measures
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.
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CONSOLIDATED BALANCE SHEETS |
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ASSETS |
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Current assets | ||||||||
Cash | $ | 14,071,914 |
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$ | 4,162,548 |
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Accounts receivable, net | 12,590,970 |
|
1,571,226 |
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Inventory | 17,669 |
|
223,048 |
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Prepaid expenses and other current assets | 1,478,897 |
|
1,662,843 |
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Content assets - current | 745,633 |
|
850,263 |
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Total current assets | 28,905,083 |
|
8,469,928 |
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Non-current assets | ||||||||
Deposits | 63,889 |
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34,289 |
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Content assets - non current | 678,659 |
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365,360 |
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Property and equipment, net | 1,633,169 |
|
38,936 |
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Operating lease right-of-use assets | 76,696 |
|
237,094 |
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Intangible assets, net | 590,333 |
|
702,778 |
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— |
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1,970,321 |
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Total non-current assets | 3,042,746 |
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3,348,778 |
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Total assets | $ | 31,947,829 |
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$ | 11,818,706 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities | ||||||||
Accounts payable | $ | 7,453,801 |
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$ | 1,147,585 |
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Accrued liabilities | 5,620,873 |
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434,858 |
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Accrued royalties | 4,559,088 |
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633,463 |
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Payable on acquisition | 250,125 |
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250,125 |
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License content liabilities - current | 1,092,819 |
|
985,000 |
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Note payable - current | — |
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25,714 |
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Deferred Income | 140,764 |
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191,331 |
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Convertible debt related party - current, net | — |
|
530,226 |
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Lease liability - current | 75,529 |
|
167,101 |
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Total current liabilities | 19,192,999 |
|
4,365,403 |
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Non-current liabilities | ||||||||
Non-revolving line of credit, related party | 2,575,753 |
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— |
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Non-revolving line of credit | 4,524,985 |
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— |
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Convertible debt – related party, less current portion, net | — |
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2,458,194 |
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Convertible debt, less current portion, net | — |
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404,319 |
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Note payable – non-current | — |
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460,924 |
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Derivative liability | — |
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1,058,633 |
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Lease liability | — |
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75,530 |
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Total non-current liabilities | 7,100,738 |
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4,457,600 |
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Total liabilities | 26,293,737 |
|
8,823,003 |
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Commitments and contingencies | — |
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— |
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Stockholders’ equity | ||||||||
Series B Convertible Preferred stock, |
— |
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20 |
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Common Stock, |
5,638 |
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4,449 |
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Additional paid in capital | 101,970,318 |
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69,833,650 |
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Accumulated deficit | (96,321,864 |
) |
(66,842,416 |
) |
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Total stockholders' equity | 5,654,092 |
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2,995,703 |
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Total liabilities and stockholders' equity | $ | 31,947,829 |
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$ | 11,818,706 |
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CONSOLIDATED STATEMENTS OF OPERATIONS |
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Three months ended |
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2022 |
2021 |
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Revenue | $ | 12,152,840 |
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$ | 2,409,145 |
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Cost of revenue | 7,471,921 |
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2,215,087 |
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Gross profit | 4,680,919 |
|
194,058 |
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Operating expenses | ||||||||
Selling, general and administrative | 14,824,108 |
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5,121,464 |
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Impairment of goodwill and intangible assets | 1,970,321 |
|
8,815,724 |
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Total operating expenses | 16,794,429 |
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13,937,188 |
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Loss from operations | (12,113,510 |
) |
(13,743,130 |
) |
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Other income (expense) | ||||||||
Interest income | — |
|
1,470 |
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Interest expense | (1,643,271 |
) |
(246,635 |
) |
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Loss on extinguishment of debt, net | (1,153,219 |
) |
(13,905 |
) |
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Gain (Loss) on settlement of obligation, net | — |
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(1,100 |
) |
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Change in fair value of derivatives | 349,935 |
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159,017 |
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Other income | — |
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2,728 |
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Total other income (expense) | (2,446,555 |
) |
(98,425 |
) |
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Loss before income taxes | ||||||||
Income tax (expense)/benefit | 1,727 |
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714,742 |
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Net loss | (14,558,338 |
) |
$ | (13,126,813 |
) |
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Basic and diluted net loss per common share | (0.28 |
) |
$ | (0.31 |
) |
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Weighted average number of basic and diluted common shares outstanding | 51,452,458 |
|
42,474,397 |
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CONSOLIDATED STATEMENTS OF OPERATIONS |
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Years ended |
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2022 |
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2021 |
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Revenue | $ | 30,832,796 |
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$ | 5,069,149 |
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Cost of revenue | 19,450,398 |
|
4,165,066 |
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Gross profit | 11,382,398 |
|
904,083 |
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Operating expenses | ||||||||
Selling, general and administrative | 34,179,050 |
|
20,333,216 |
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Impairment of goodwill and intangible assets | 1,970,321 |
|
11,206,523 |
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Total operating expenses | 36,149,371 |
|
31,539,739 |
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Loss from operations | (24,766,973 |
) |
(30,635,656 |
) |
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Other income (expense) | ||||||||
Interest income | 200 |
|
10,123 |
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Interest expense | (3,620,212 |
) |
(1,690,552 |
) |
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Gain (Loss) on extinguishment of debt, net | (1,607,782 |
) |
564,481 |
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Gain (Loss) on settlement of obligation, net | — |
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(1,100 |
) |
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Change in fair value of derivatives | 514,643 |
|
159,017 |
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Other income | — |
|
4,279 |
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Total other expense | (4,713,151 |
) |
(953,752 |
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Loss before income taxes | ||||||||
Income tax benefit | 676 |
|
614,912 |
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Net loss | (29,479,448 |
) |
$ | (30,974,496 |
) |
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Basic and diluted net loss per common share | (0.61 |
) |
$ | (0.76 |
) |
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Weighted average number of basic and diluted common shares outstanding | 48,167,932 |
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40,807,445 |
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Adjusted EBITDA Reconciliation |
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Year ended |
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2022 |
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2021 |
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GAAP net loss | $ | (29,479,448 |
) |
$ | (30,974,496 |
) |
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Adjustments to reconcile to EBITDA: | ||||||||
Interest expense | 3,620,212 |
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1,690,552 |
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Interest income | (200 |
) |
(10,123 |
) |
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Depreciation and amortization expense* | 1,592,458 |
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2,557,959 |
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Income tax benefit | (676 |
) |
(614,912 |
) |
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Stock-based compensation** | 9,355,342 |
|
8,374,265 |
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Non-recurring uplist expense | 1,575,000 |
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— |
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Impairment of goodwill and intangible assets | 1,970,321 |
|
11,206,523 |
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Loss on extinguishment of debt, net | 1,607,782 |
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— |
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Change in fair value of derivative | (514,643 |
) |
— |
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Adjusted EBITDA | $ | (10,273,852 |
) |
$ | (7,770,232 |
) |
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* Includes amortization of content license assets. | ||||||||
** Includes options, RSUs and warrants | ||||||||
Three months ended |
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2022 |
2021 |
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GAAP net loss | $ | (14,558,338 |
) |
$ | (13,126,813 |
) |
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Adjustments to reconcile to EBITDA: | ||||||||
Interest expense | 1,643,271 |
|
246,635 |
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Interest income | — |
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(1,470 |
) |
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Depreciation and amortization expense* | 463,756 |
|
702,484 |
|
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Income tax benefit | (1,727 |
) |
(714,742 |
) |
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Stock-based compensation** | 5,407,070 |
|
1,337,466 |
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Non-recurring uplist expense | 1,575,000 |
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— |
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Impairment of goodwill and intangible assets | 1,970,321 |
|
8,815,724 |
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Loss on extinguishment of debt, net | 1,153,219 |
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— |
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Change in fair value of derivative | (349,935 |
) |
— |
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Adjusted EBITDA | $ | (2,697,363 |
) |
$ | (2,740,716 |
) |
* Includes amortization of content license assets. |
** Includes options, RSUs and warrants |
View source version on businesswire.com: https://www.businesswire.com/news/home/20221213005974/en/
Loop Media Investor Contact
ir@loop.tv
Loop Media Press Contact
Loop@phillcomm.global
Source:
FAQ
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