LiveOne Reports Record First Six Months Fiscal 2023 Adjusted EBITDA* of $6.4 Million and Revenue of $46.8 Million
LiveOne (Nasdaq: LVO) reported Q2 Fiscal 2023 results, revealing revenue of $23.5 million, up from $21.9 million year-over-year. Total revenue for the first half reached $46.8 million and Adjusted EBITDA was $6.4 million, a significant increase from a year ago. However, the company posted a net loss of $2.1 million. LiveOne updated its Fiscal 2023 guidance, forecasting revenue between $100 million and $110 million and Adjusted EBITDA between $9 million and $11.5 million. Additionally, the company plans a stock repurchase of up to $2 million to enhance shareholder value.
- Q2 Fiscal 2023 revenue increased to $23.5 million, a 7.3% year-over-year growth.
- Adjusted EBITDA for 1H Fiscal 2023 reached $6.4 million, a significant improvement from the previous year.
- Paid members increased to 1.8 million, showing a net growth of approximately 209,000 members since June 2022.
- Total cash and short-term assets stood at $32.8 million.
- Net loss for 1H Fiscal 2023 was $2.1 million, or $(0.02) per diluted share.
- Guidance lowered for Fiscal 2023 revenue to between $100 million and $110 million from previous expectations.
Company’s Audio Division Delivers First Six Months Revenue of
Company Updates Guidance for Fiscal 2023 of Revenue Between
Expects to File S-1 for PodcastOne Spin-Out by
Company Increases Stock Repurchase Program By Up to an Additional
LiveOne’s Senior Management
In the first six months ended
As part of
Separately,
LiveOne’s CEO and Chairman,
The timing, price and actual number of shares planned to be repurchased under LiveOne’s expanded stock repurchase program will be at the discretion of its management and will depend on a variety of factors, including stock price, general business and market conditions, and alternative investment opportunities. The repurchase program will be executed consistent with
Recent and Q2 Fiscal 2023 Highlights
-
Paid members as of
November 9, 2022 increased to 1.8 million, a net increase of approximately 209,000 as compared toJune 30, 2022 . Total members (paid and free ad-supported) as ofNovember 9, 2022 were 2.6 million.** -
LiveOne’s wholly-owned subsidiary, PodcastOne, posted record 1H Fiscal 2023 revenue of
$17.2 million U.S. unique monthly audience surpassed 6.7 million inSeptember 2022 . -
As previously announced in
January 2021 , with the assistance of J.P. Morgan,LiveOne is continuing a process to explore strategic alternatives to enhance shareholder value. Potential alternatives may include, among others, a strategic acquisition, divestiture, merger, sale or other form of business combination. There can be no assurance thatLiveOne's efforts will result in a specific transaction or any particular outcome or its timing.
Q2 Fiscal 2023 and 2022 Results Summary (in |
||||||||||||||||
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
||||||||||
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Revenue |
|
$ |
23,532 |
|
|
$ |
21,924 |
|
|
$ |
46,755 |
|
|
$ |
60,691 |
|
Operating income (loss) |
|
$ |
(987 |
) |
|
$ |
(9,667 |
) |
|
$ |
(750 |
) |
|
$ |
(19,626 |
) |
Total other income (expense) |
|
$ |
(2,393 |
) |
|
$ |
(5,565 |
) |
|
$ |
(1,285 |
) |
|
$ |
(3,654 |
) |
Net income (loss) |
|
$ |
(3,409 |
) |
|
$ |
(15,236 |
) |
|
$ |
(2,061 |
) |
|
$ |
(23,287 |
) |
Adjusted EBITDA* |
|
$ |
4,398 |
|
|
$ |
(2,071 |
) |
|
$ |
6,368 |
|
|
$ |
(3,822 |
) |
Net income (loss) per share basic and diluted |
|
$ |
(0.04 |
) |
|
$ |
(0.19 |
) |
|
$ |
(0.02 |
) |
|
$ |
(0.30 |
) |
Q2 Fiscal 2023 Results Summary Discussion
For Q2 Fiscal 2023,
Q2 Fiscal 2023 Operating Loss was
Q2 Fiscal 2023 Adjusted EBITDA* was
Capital expenditures for Q2 Fiscal 2023 totaled approximately
As
Conference Call and Webcast
LiveOne’s senior management will host a live conference call and audio webcast to provide a business update and discuss its operating and financial results beginning at
Conference Call and Webcast
WHEN:
TIME:
DIAL-IN (Toll Free): 844-200-6205
DIAL IN NUMBER (Local): 646-904-5544
ACCESS CODE: 194246
REPLAY NUMBER: 866-813-9403 / ACCESS CODE: 741873
WEBCAST – Both the live webcast and a replay can be accessed on the Investor Relations section of
The webcast can also be accessed at: https://events.q4inc.com/attendee/614063880
About
Headquartered in
* About Non-GAAP Financial Measures
To supplement our consolidated financial statements, which are prepared and presented in accordance with the accounting principles generally accepted in
We use Contribution Margin (Loss) and Adjusted EBITDA to evaluate the performance of our operating segment. We believe that information about these non-GAAP financial measures assists investors by allowing them to evaluate changes in the operating results of our business separate from non-operational factors that affect operating income (loss) and net income (loss), thus providing insights into both operations and the other factors that affect reported results. Adjusted EBITDA is not calculated or presented in accordance with GAAP. A limitation of the use of Adjusted EBITDA as a performance measure is that it does not reflect the periodic costs of certain amortizing assets used in generating revenue in our business. Accordingly, Adjusted EBITDA should be considered in addition to, and not as a substitute for operating income (loss), net income (loss), and other measures of financial performance reported in accordance with GAAP. Furthermore, this measure may vary among other companies; thus, Adjusted EBITDA as presented herein may not be comparable to similarly titled measures of other companies.
Contribution Margin (Loss) is defined as Revenue less Cost of Sales. Adjusted EBITDA is defined as earnings before interest, other (income) expense, income tax expense, depreciation and amortization and before (a) non-cash GAAP purchase accounting adjustments for certain deferred revenue and costs, (b) legal, accounting and other professional fees directly attributable to acquisition activity, (c) employee severance payments and third party professional fees directly attributable to acquisition or corporate realignment activities, (d) certain non-recurring expenses associated with legal settlements or reserves for legal settlements in the period that pertain to historical matters that existed at acquired companies prior to their purchase date and a one-time minimum guarantee to effectively terminate a live events distribution agreement post COVID-19, (e) depreciation and amortization (including goodwill impairment, if any), and (f) certain stock-based compensation expense. Management does not consider these costs to be indicative of our core operating results.
With respect to projected full year 2023 Adjusted EBITDA, a quantitative reconciliation is not available without unreasonable efforts due to the high variability, complexity and low visibility with respect to purchase accounting adjustments, acquisition-related charges and legal settlement reserves excluded from Adjusted EBITDA. We expect that the variability of these items to have a potentially unpredictable, and potentially significant, impact on our future GAAP financial results.
For more information on these non-GAAP financial measures, please see the tables entitled “Reconciliation of Non-GAAP Measure to GAAP Measure” included at the end of this release.
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, distribution or transaction, including the proposed special dividend and spin-out of PodcastOne or its pay-per-view business, the timing of the consummation of such proposed event, including the risks that a condition to consummation of such event would not be satisfied within the expected timeframe or at all, or that the consummation of any proposed financing, acquisition, spin-out, special dividend, distribution or transaction will not occur or whether any such event will enhance shareholder value; PodcastOne's ability to list on a national exchange; 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
** Included in the total number of members for the reported periods are certain members which are the subject of a contractual dispute.
Financial Information
The tables below present financial results for the three and six months ended
Consolidated Statements of Operations (Unaudited) (In thousands, except share and per share amounts) |
||||||||||||||||
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Revenue: |
|
$ |
23,532 |
|
|
$ |
21,924 |
|
|
$ |
46,755 |
|
|
$ |
60,691 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cost of sales |
|
|
13,742 |
|
|
|
16,051 |
|
|
|
29,125 |
|
|
|
46,990 |
|
Sales and marketing |
|
|
2,362 |
|
|
|
2,599 |
|
|
|
4,727 |
|
|
|
7,348 |
|
Product development |
|
|
1,240 |
|
|
|
2,178 |
|
|
|
2,857 |
|
|
|
4,333 |
|
General and administrative |
|
|
4,475 |
|
|
|
9,246 |
|
|
|
6,685 |
|
|
|
18,623 |
|
Amortization of intangible assets |
|
|
2,700 |
|
|
|
1,517 |
|
|
|
4,111 |
|
|
|
3,023 |
|
Total operating expenses |
|
|
24,519 |
|
|
|
31,591 |
|
|
|
47,505 |
|
|
|
80,317 |
|
Loss from operations |
|
|
(987 |
) |
|
|
(9,667 |
) |
|
|
(750 |
) |
|
|
(19,626 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest expense, net |
|
|
(2,576 |
) |
|
|
(1,068 |
) |
|
|
(3,573 |
) |
|
|
(2,128 |
) |
Loss on extinguishment of debt |
|
|
- |
|
|
|
(4,321 |
) |
|
|
- |
|
|
|
(4,321 |
) |
Forgiveness of PPP loans |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
2,511 |
|
Other income (expense) |
|
|
183 |
|
|
|
(176 |
) |
|
|
2,288 |
|
|
|
284 |
|
Total other expense, net |
|
|
(2,393 |
) |
|
|
(5,565 |
) |
|
|
(1,285 |
) |
|
|
(3,654 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Loss before provision for income taxes |
|
|
(3,380 |
) |
|
|
(15,232 |
) |
|
|
(2,034 |
) |
|
|
(23,280 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Provision for income taxes |
|
|
(29 |
) |
|
|
(4 |
) |
|
|
(27 |
) |
|
|
(7 |
) |
Net loss |
|
$ |
(3,409 |
) |
|
$ |
(15,236 |
) |
|
$ |
(2,061 |
) |
|
$ |
(23,287 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net loss per share – basic and diluted |
|
$ |
(0.04 |
) |
|
$ |
(0.19 |
) |
|
$ |
(0.02 |
) |
|
$ |
(0.30 |
) |
Weighted average common shares – basic and diluted |
|
|
84,709,971 |
|
|
|
78,351,655 |
|
|
|
84,189,970 |
|
|
|
77,670,598 |
|
Consolidated Balance Sheets (Unaudited) (In thousands) |
||||||||
|
||||||||
|
|
|
|
|
||||
|
|
2022 |
|
2022 |
|
|||
Assets |
|
|
|
|
||||
Current Assets |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
7,151 |
|
|
$ |
12,894 |
|
Restricted cash |
|
|
240 |
|
|
|
260 |
|
Accounts receivable, net |
|
|
12,958 |
|
|
|
13,687 |
|
Inventories |
|
|
2,201 |
|
|
|
2,599 |
|
Prepaid expense and other current assets |
|
|
1,869 |
|
|
|
1,868 |
|
Total Current Assets |
|
|
25,419 |
|
|
|
31,308 |
|
Property and equipment, net |
|
|
4,091 |
|
|
|
4,688 |
|
|
|
|
23,379 |
|
|
|
23,379 |
|
Intangible assets, net |
|
|
12,622 |
|
|
|
16,720 |
|
Other assets |
|
|
579 |
|
|
|
728 |
|
Total Assets |
|
$ |
66,090 |
|
|
$ |
76,823 |
|
|
|
|
|
|
|
|
||
Liabilities and Stockholders’ Equity (Deficit) |
|
|
|
|
|
|
||
Current Liabilities |
|
|
|
|
|
|
||
Accounts payable and accrued liabilities |
|
$ |
29,364 |
|
|
$ |
45,418 |
|
Accrued royalties |
|
|
9,193 |
|
|
|
13,530 |
|
Notes payable, current portion |
|
|
315 |
|
|
|
12 |
|
|
|
|
2,634 |
|
|
|
- |
|
Deferred revenue |
|
|
1,014 |
|
|
|
1,157 |
|
Derivative liabilities |
|
|
2,274 |
|
|
|
- |
|
Total Current Liabilities |
|
|
44,794 |
|
|
|
60,117 |
|
Senior secured convertible notes, net |
|
|
13,734 |
|
|
|
13,650 |
|
Unsecured convertible notes, net - related party |
|
|
5,297 |
|
|
|
5,879 |
|
Senior secured revolving line of credit, net |
|
|
7,000 |
|
|
|
6,965 |
|
Notes payable, net |
|
|
148 |
|
|
|
148 |
|
Lease liabilities, noncurrent |
|
|
320 |
|
|
|
468 |
|
Other long-term liabilities |
|
|
4,609 |
|
|
|
174 |
|
Deferred income taxes |
|
|
338 |
|
|
|
338 |
|
Total Liabilities |
|
|
76,239 |
|
|
|
87,739 |
|
|
|
|
|
|
|
|
||
Commitments and Contingencies |
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
Stockholders’ Equity (Deficit) |
|
|
|
|
|
|
||
Preferred stock, |
|
|
- |
|
|
|
- |
|
Common stock, |
|
|
88 |
|
|
|
83 |
|
Additional paid in capital |
|
|
207,615 |
|
|
|
202,854 |
|
|
|
|
(1,938 |
) |
|
|
- |
|
Accumulated deficit |
|
|
(215,914 |
) |
|
|
(213,853 |
) |
Total stockholders’ equity (deficit) |
|
|
(10,149 |
) |
|
|
(10,916 |
) |
Total Liabilities and Stockholders’ Equity (Deficit) |
|
$ |
66,090 |
|
|
$ |
76,823 |
|
Reconciliation of Non-GAAP Measure to GAAP Measure Adjusted EBITDA* Reconciliation (Unaudited) (In thousands) |
|||||||||||||||||||||||
|
|
Net Income (Loss) |
|
Depreciation
|
|
Stock-Based
|
|
Other Non-
|
|
Other
|
|
(Benefit From)
|
|
Adjusted
|
|||||||||
Three Months Ended |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Operations - Audio |
|
$ |
2,434 |
|
|
$ |
2,049 |
|
$ |
791 |
|
$ |
91 |
|
$ |
1,163 |
|
$ |
- |
|
$ |
6,528 |
|
Operations - Other |
|
|
(2,854 |
) |
|
|
1,586, |
|
|
80 |
|
|
2 |
|
|
364 |
|
|
- |
|
|
(821 |
) |
Corporate |
|
|
(2,989 |
) |
|
|
6 |
|
|
528 |
|
|
245 |
|
|
866 |
|
|
29 |
|
|
(1,309 |
) |
Total |
|
$ |
(3,409 |
) |
|
$ |
2,641 |
|
$ |
1,399 |
|
$ |
338 |
|
$ |
2,393 |
|
$ |
29 |
|
$ |
4,398 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Three Months Ended |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Operations - Audio |
|
$ |
(996 |
) |
|
$ |
2,173 |
|
$ |
754 |
|
$ |
63 |
|
$ |
583 |
|
$ |
- |
|
$ |
2,577 |
|
Operations - Other |
|
|
(2,255 |
) |
|
|
233 |
|
|
430 |
|
|
46 |
|
|
135 |
|
|
- |
|
|
(1,411 |
) |
Corporate |
|
|
(11,985 |
) |
|
|
9 |
|
|
3,660 |
|
|
227 |
|
|
4,847 |
|
|
2 |
|
|
(3,237 |
) |
Total |
|
$ |
(8,051 |
) |
|
$ |
2,379 |
|
$ |
4,844 |
|
$ |
336 |
|
$ |
5,565 |
|
$ |
5 |
|
$ |
(2,071 |
) |
|
|
Net Income (Loss) |
|
Depreciation
|
|
Stock-Based
|
|
Other Non-
|
|
Other
|
|
(Benefit From)
|
|
Adjusted
|
|||||||||||
Six Months Ended |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Operations - Audio |
|
$ |
5,268 |
|
|
$ |
4,097 |
|
$ |
1,074 |
|
$ |
170 |
|
|
$ |
(784 |
) |
|
$ |
- |
|
$ |
9,826 |
|
Operations - Other |
|
|
(3,457 |
) |
|
|
1,858, |
|
|
169 |
|
|
115 |
|
|
|
395 |
|
|
|
- |
|
|
(920 |
) |
Corporate |
|
|
(3,872 |
) |
|
|
12 |
|
|
941 |
|
|
(1,318 |
) |
|
|
1,673 |
|
|
|
27 |
|
|
(2,538 |
) |
Total |
|
$ |
(2,061 |
) |
|
$ |
5,967 |
|
$ |
2,184 |
|
$ |
(1,032 |
) |
|
$ |
1,284 |
|
|
$ |
27 |
|
$ |
6,368 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Six Months Ended |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operations - Audio |
|
$ |
(6,531 |
) |
|
$ |
4,317 |
|
$ |
2,542 |
|
$ |
84 |
|
|
$ |
405 |
|
|
$ |
- |
|
$ |
818 |
|
Operations - Other |
|
|
375 |
|
|
|
460 |
|
|
786 |
|
|
262 |
|
|
|
(338 |
) |
|
|
- |
|
|
1,546 |
|
Corporate |
|
|
(17,131 |
) |
|
|
17 |
|
|
6,603 |
|
|
733 |
|
|
|
3,587 |
|
|
|
7 |
|
|
(6,185 |
) |
Total |
|
$ |
(23,287 |
) |
|
$ |
4,794 |
|
$ |
9,931 |
|
$ |
1,079 |
|
|
$ |
3,654 |
|
|
$ |
7 |
|
$ |
(3,822 |
) |
|
(1) |
Other Non-Operating and Non-Recurring Costs include outside legal, accounting and other professional fees directly attributable to acquisition activity in the period, in addition to certain non-recurring expenses associated with legal settlements or reserves for legal settlements in the period that pertain to historical matters that existed at certain acquired companies prior to their purchase date and non-recurring employee severance payments and to a lesser extent, a one-time minimum guarantee to effectively terminate a live-event distribution agreement post COVID-19. |
|
(2) |
Other (income) expense above primarily includes interest expense, net, forgiveness of PPP loans, and loss on extinguishment of debt. These are included in the statement of operations in other income (expense) and are an add back to net loss above in the reconciliation of Adjusted EBITDA* to loss. |
||
| * | See the definitions of Contribution Margin and Adjusted EBITDA under “About Non-GAAP Financial Measures” within this release. |
||
Reconciliation of Non-GAAP Measure to GAAP Measure Contribution Margin* Reconciliation (Unaudited) (In thousands) |
||||||||
|
|
Three Months Ended
|
||||||
|
|
2022 |
|
2021 |
||||
|
|
|
|
|
||||
Revenue: |
|
$ |
23,532 |
|
|
$ |
21,924 |
|
Less: |
|
|
|
|
|
|
||
Cost of sales |
|
|
(13,742 |
) |
|
|
(16,051 |
) |
Amortization of developed technology |
|
|
(1,151 |
) |
|
|
(1,156 |
) |
Gross Profit |
|
|
8,639 |
|
|
|
4,717 |
|
|
|
|
|
|
|
|
||
Add back amortization of developed technology: |
|
|
1,151 |
|
|
|
1,156 |
|
Contribution Margin* |
|
$ |
9,790 |
|
|
$ |
5,873 |
|
|
* |
See the definition of Contribution Margin under “About Non-GAAP Financial Measures” within this release. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20221110005770/en/
LiveOne IR Contact:
310.601.2505
ir@liveone.com
Press Contact:
aileen@liveone.com
917.842.9653
Source:
FAQ
What were LiveOne's Q2 Fiscal 2023 revenue results?
How much did LiveOne's Adjusted EBITDA increase in the first half of Fiscal 2023?
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