LiveOne (Nasdaq: LVO) year end update

Rhea-AI Summary

LiveOne (NASDAQ: LVO) announced significant financial improvements and strategic initiatives. The company has achieved over $10 million in cash savings, extended $5 million in payables to long-term (including Sound Exchange), and paid off a $2.75 million East West Bank credit line. The company plans to allocate these savings toward strategic growth initiatives, including:

- Converting more Tesla subscribers
- Expanding B2B partnerships, including a recently announced $25+ million deal with a Fortune 500 company
- Expanding original IP content
- Enhancing music partnerships
- Monetizing data business through AI integration

Positive

• Achieved over $10M in cash savings
• Secured $25M+ deal with Fortune 500 company
• Paid off $2.75M bank credit line
• Extended $5M in payables to long-term

Negative

• None.

Insights

Financial Analyst

LiveOne's strategic financial restructuring demonstrates a calculated approach to balance sheet optimization. The $10M in cash savings through debt restructuring, including the extension of $5M in payables and retirement of the $2.75M East West Bank credit line, significantly improves the company's liquidity position. With a market cap of $109.5M, this cash preservation represents approximately 9.1% of the company's market value.

The allocation strategy focuses on high-ROI initiatives, particularly the expansion of B2B partnerships, highlighted by the recent $25M+ Fortune 500 deal. This B2B pivot could provide more stable, predictable revenue streams compared to direct-to-consumer models. The Tesla subscriber conversion program and AI-driven data monetization efforts suggest a dual approach to revenue diversification and margin expansion.

The debt restructuring, particularly the Sound Exchange payment extension, provides operational flexibility while maintaining key industry relationships. This financial engineering creates a runway for strategic investments without immediate cash flow pressure.

Tech Industry Analyst

The strategic focus on AI and data monetization represents a pivotal shift in LiveOne's business model. By leveraging AI for data analytics, the company is positioning itself at the intersection of entertainment and technology, potentially creating multiple revenue streams from the same user base. The emphasis on original IP development suggests a Netflix-like approach to content differentiation in the music streaming space.

The B2B partnership expansion strategy, particularly targeting Fortune 500 companies, indicates a sophisticated enterprise-focused pivot that could yield higher margins than traditional consumer streaming. The Tesla subscriber conversion initiative highlights the company's ability to tap into premium automotive infotainment systems, a rapidly growing market segment as connected cars become increasingly prevalent.

Strengthens Balance Sheet with Over $10M in Cash Savings

- Extends $5M payables to long-term, including Sound Exchange

- Pays off $2.75M East West Bank line

- Allocates savings to strategic initiatives, including:

- Converting more Tesla subscribers

- Expanding B2B partnerships, including the $25M+ deal announced last week with a Fortune 500 company

- Expanding slate of Original IP

- Enhancing music partnerships

- Monetizing data business utilizing AI

LOS ANGELES, Jan. 16, 2025 (GLOBE NEWSWIRE) -- LiveOne (NASDAQ: LVO), an award-winning, creator-first, music, entertainment, and technology platform, today provided a business and financial update.

Robert Ellin, Chairman and CEO, stated, "I'm excited to use our recent cash flow savings to strengthen our balance sheet, expand music partnerships, and grow content globally. By leveraging AI, data analytics, and original programming, we'll drive subscriber growth, unlock new revenue streams, and solidify our leadership in the B2B music space."

About LiveOne
Headquartered in Los Angeles, CA, LiveOne (Nasdaq: LVO) is an award-winning, creator-first, music, entertainment, and technology platform focused on delivering premium experiences and content worldwide through memberships and live and virtual events. LiveOne's subsidiaries include Slacker Radio, PodcastOne (Nasdaq: PODC), PPVOne, CPS, LiveXLive, DayOne Music Publishing, Drumify and Splitmind. LiveOne is available in Tesla vehicles and on iOS, Android, Roku, Apple TV, Spotify, Samsung, Amazon Fire, Android TV, and through STIRR’s OTT applications. For more information, visit liveone.com and follow us on Facebook, Instagram, TikTok, YouTube and Twitter at @liveone. For more investor information, please visit ir.liveone.com.

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: LiveOne’s reliance on its largest OEM customer for a substantial percentage of its revenue; LiveOne’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; LiveOne’s ability to continue as a going concern; LiveOne’s ability to attract, maintain and increase the number of its users and paid members; LiveOne identifying, acquiring, securing and developing content; LiveOne’s intent to repurchase shares of its and/or PodcastOne’s common stock from time to time under LiveOne’s announced stock repurchase program and the timing, price, and quantity of repurchases, if any, under the program; LiveOne’s ability to maintain compliance with certain financial and other covenants; LiveOne successfully implementing its growth strategy, including relating to its technology platforms and applications; management’s relationships with industry stakeholders; LiveOne’s ability to extend and/or refinance its indebtedness and/or repay its indebtedness when due; uncertain and unfavorable outcomes in legal proceedings and/or LiveOne’s ability to pay any amounts due in connection with any such legal proceedings; changes in economic conditions; competition; risks and uncertainties applicable to the businesses of LiveOne’s subsidiaries; and other risks, uncertainties and factors including, but not limited to, those described in LiveOne’s Annual Report on Form 10-K for the fiscal year ended March 31, 2024, filed with the U.S. Securities and Exchange Commission (the “SEC”) on July 1, 2024, Quarterly Report on Form 10-Q for the quarter ended September 30, 2024, filed with SEC on November 14, 2024, and in LiveOne’s other filings and submissions with the SEC. These forward-looking statements speak only as of the date hereof, and LiveOne disclaims any obligation to update these statements, except as may be required by law. LiveOne intends that all forward-looking statements be subject to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995.

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

How much cash savings did LiveOne (LVO) report in their January 2024 update?

LiveOne reported over $10 million in cash savings in their January 2024 business update.

What is the value of LiveOne's (LVO) recently announced Fortune 500 partnership?

LiveOne announced a B2B partnership worth over $25 million with a Fortune 500 company.

How much debt did LiveOne (LVO) pay off to East West Bank?

LiveOne paid off a $2.75 million line of credit to East West Bank.

What strategic initiatives is LiveOne (LVO) investing in with their cash savings?

LiveOne is investing in Tesla subscriber conversion, B2B partnerships, original IP expansion, music partnerships enhancement, and AI-driven data business monetization.

How much in payables did LiveOne (LVO) extend to long-term?

LiveOne extended $5 million in payables to long-term, including Sound Exchange obligations.