LiveOne (Nasdaq: LVO) Announces Special March Update
- LiveOne holds a substantial $11.5 million cash position, the largest in 18 months.
- The company has repurchased $250k of its stock in the past 30 days and a total of $4.5 million of LVO shares.
- LiveOne extinguished $3.0 million of PodcastOne (Nasdaq: PODC) payables.
- They have $5.5 million remaining for discretionary repurchase of LVO and/or PODC common stock.
- The company expects record Q4 revenues due to increased Tesla sales, 30 new podcasts, and over $2 million in new monthly recurring revenues from a B2B Fortune 250 streaming partner.
- None.
Insights
The announcement of a company's $11.5 million cash position, which is the largest in 18 months, signals a strong liquidity status, a key indicator of financial health. This, coupled with the extinguishment of $3.0 million in payables and the repurchase of $4.5 million in LVO shares, demonstrates a confident management team investing in its own equity, which is often interpreted as a positive signal about future prospects. The $5.5 million remaining for discretionary repurchase indicates a continuation of this strategy, which can be a lever to increase earnings per share by reducing the number of shares outstanding.
However, investors should consider the opportunity cost of these buybacks, particularly in the context of the company's explosive growth and expectations for record Q4 revenues. If the company is indeed experiencing significant growth, it might be more advantageous to reinvest this capital into the business to fuel further expansion, rather than repurchasing shares. Especially since the growth is attributed to factors such as increased Tesla sales, the launch of 30 new podcasts and a lucrative partnership with a Fortune 250 company, which could potentially offer higher returns on investment.
The growth in Tesla sales and the addition of 30 new podcasts indicate a strategic expansion in content and partnerships that cater to current market trends. This, along with the $2 million+ in new monthly recurring revenues from a B2B streaming partner, suggests that LiveOne is effectively capitalizing on the booming demand for digital content and streaming services. Such a move aligns with consumer behavior shifts towards online entertainment, a trend accelerated by the global pandemic and sustained in the post-pandemic landscape.
Investors should be mindful of the competitive landscape in the digital content and podcasting space, as it is crowded with numerous players vying for market share. The ability of LiveOne to continuously innovate and differentiate its offerings will be critical to maintain this momentum. The partnership with a Fortune 250 company also implies a vote of confidence in LiveOne's B2B capabilities, which could lead to further partnerships and strengthen its market position.
From a legal perspective, the repurchase of stock must be conducted in accordance with SEC regulations, ensuring that insider trading laws are not violated. The announcement of such repurchases must be transparent and timely to maintain fairness in the market. Additionally, the company's growth and partnership with a Fortune 250 company suggests that it may be entering into complex contracts and agreements, which require careful legal scrutiny to protect its interests and intellectual property, especially in the dynamic field of digital content where licensing and copyright laws are paramount.
Investors should be aware that the company's legal team plays a significant role in facilitating these deals and safeguarding against potential litigation, which could have material impacts on the company's financials and operations. The robustness of the company's legal framework can be a significant factor in its ability to sustain growth and manage risks associated with its expansion strategies.
-Reports
-Extinguished
-Repurchased
-Repurchased Total
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-Experiencing Explosive Growth and Expects Record Q4 Revenues Driven by Increased Tesla Sales, 30 New Podcasts and
LOS ANGELES, CA, March 18, 2024 (GLOBE NEWSWIRE) -- via NewMediaWire – LiveOne CEO Robert Ellin commented, “I am immensely proud of the remarkable achievements of our organization. The hard work, dedication, and passion exhibited by our team has been nothing short of extraordinary. Every division has played an integral role in reaching the milestones we celebrate today.”
Mr Ellin continued, “Our collective commitment to excellence has yielded results that exceed expectations. We’ve broken barriers, set new standards, and transformed our industry. I am so excited about the future of our company and look forward to delivering more exciting reports in the near future.”
About LiveOne, Inc.
LiveOne, Inc. is an award-winning, creator-first, music, entertainment, and technology platform delivering premium experiences and content worldwide. With subsidiaries like Slacker Radio and PodcastOne, LiveOne has garnered accolades for its innovative approach, including the Best Live Moment award by Digiday for the "Social Gloves" PPV Event.
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, spin-out, special dividend, merger, distribution or transaction, the timing of the consummation of any such proposed event, including the risks that a condition to the consummation of any such event would not be satisfied within the expected timeframe or at all, or that the consummation of any proposed financing, acquisition, spin-out, merger, special dividend, distribution 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 members; 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; uncertain and unfavorable outcomes in legal proceedings; 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, 2023, filed with the U.S. Securities and Exchange Commission (the “SEC”) on June 29, 2023, Quarterly Report on Form 10-Q for the quarter year ended June 30, 2023, filed with the SEC on August 15, 2023, 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 obligation 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.
For media inquiries, please contact:
LiveOne IR Contact :
Liviakis Financial Communications, Inc.
(415) 389-4670
john@liviakis.com
LiveOne Press Contact :
LiveOne
press@liveone.com
Follow LiveOne on social media: Facebook, Instagram, TikTok, YouTube, and Twitter at @liveone.
FAQ
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