LIVEONE CAPS OFF RECORD OPERATING METRICS FOR CALENDAR YEAR 2021 AND RAISES FINANCIAL GUIDANCE TO ACHIEVE POSITIVE ADJUSTED EBITDA* IN Q1 ENDING JUNE 30, 2022
LiveOne (NASDAQ: LVO) reported strong preliminary operating metrics for 2021, including 1.35 million paid subscribers, a 34.5% increase year-over-year, and 699,000 new members. The company raised its fiscal year 2022 revenue guidance to $112-$113.5 million and maintained guidance for 2023 at $120-$140 million. Significant milestones include 2.48 billion podcast downloads and 188 million livestream views. LiveOne aims for positive adjusted EBITDA in Q1 2023 and announced plans for further cost reductions, potentially increasing annual savings to over $14 million.
- 1.35 million paid subscribers, representing a 34.5% increase year-over-year.
- Revenue for fiscal year 2022 guidance raised to $112-$113.5 million.
- Expecting positive adjusted EBITDA in Q1 fiscal 2023.
- Announced further cost-saving measures potentially increasing savings to over $14 million annually.
- Successful livestreaming of 155 events with 188 million views.
- Certain subscribers are under a contractual dispute, affecting revenue recognition.
LOS ANGELES, Jan. 19, 2022 /PRNewswire/ -- LiveOne (Nasdaq: LVO), a creator-first, music, entertainment and technology platform focused on delivering premium experiences and content worldwide through memberships, subscriptions and live and virtual events, announced today certain preliminary operating metrics for calendar year 2021 and raised fiscal year 2022 financial guidance.
LiveOne Ended Calendar Year 2021 with the following:
- 1.35 Million + paid subscribers**, up
34.5% year-over-calendar year.
- 699,000 + total new LiveOne members**
- Added over 100 new blue chip sponsors.
- Livestreamed over 2,900 artists, 188 million livestream views, 155 events, and
58.9% engagement growth across its social and digital platforms.
- 115 pay-per-view events broadcasted on LiveOne's platform.
- LiveOne's wholly owned subsidiary PodcastOne had record metrics of over 2.48 billion podcast downloads.
- PodcastOne's popular LadyGang podcast surpassed 500 episodes.
- 33 new podcast shows joined the PodcastOne network consisting of 18 new shows and 15 existing shows that migrated to the PodcastOne platform.
- Launched over 100 new LiveOne radio stations.
- Completed a User Interface refresh of all "New" and "Top" stations within the Tesla in-car paid Slacker Radio streaming experience.
- Signed award-winning music curator and DJ, Kid Ô, to a multi-year contract to curate and host three new LiveOne mood-based, lifestyle stations.
- Used proprietary LiveOne mobile studio technology for an on-site, multi-day live audio broadcast from its Spring Awakening Music Festival.
- Launched the LiveOne Top 50 Songs of 2021 station, hosted and curated for the first-time-ever by five leading LiveOne radio format captains.
- Signed legendary Rock music host and evangelist Matt Pinfield to a multi-year contract as the new host of the "LiveOne Weekly Rock Countdown".
- LiveOne is implementing further cost and expense reductions from both operations and corporate overhead which is anticipated to increase the previously implemented
$5.6 million of annual cost savings to an estimated total of over$14 million annually.
- LiveOne's 24-hour linear OTT streaming channel reaches over 294 million people on Amazon Fire, Roku, Apple TV, SLING, Xumo, and ReachTV, Consumable TV streaming original content, artist interviews, concerts, festivals, ancillary event-related content, and short-form video content from around the world.
- Announced in December 2020, LiveOne's board of directors authorized the repurchase of up to two million shares of LiveOne's outstanding common stock from time to time, subject to compliance with applicable laws and regulations. LiveOne reiterates its intent to repurchase up to 2 million shares of its common stock.
- As of December 31, 2021, LiveOne had approximately
$14 million in cash.
LiveOne expects to report positive adjusted EBITDA* in Q1 fiscal 2023 ending June 30, 2022.
LiveOne's CEO and Chairman, Robert Ellin, commented, "We capped off calendar year 2021 with record numbers in paid subscribers, podcast shows, pay-per-view events, social engagements, live stream performances, and livestream views. We are excited for the calendar year 2022 and see a significant opportunity to both further revenue growth, as well as achieve positive adjusted EBITDA* in the quarter ending June 30, 2022."
Business Outlook
LiveOne is raising its full-year Fiscal 2022 revenue guidance as follows: revenue of
LiveOne has the first talent-centric platform focused on superfans and building long-term franchises in on-demand audio and video, podcasting, vodcasting, OTT linear channels, pay-per-view, NFTs, and livestreaming. Its unique model includes multiple monetization paths including subscription, advertising, sponsorship, merchandise sales, licensing, and ticketing.
About LiveOne, Inc.
Headquartered in Los Angeles, California, LiveOne, Inc. (NASDAQ: LVO) (the "Company") is a creator-first, music, entertainment and technology platform focused on delivering premium experiences and content worldwide through memberships, subscriptions and live and virtual events. As of January 2022, the Company has accrued a paid subscriber base of over 1.35** million, streamed over 2,900 artists, has a library of 30 million songs, 600 curated radio stations, 268 podcasts/vodcasts, hundreds of pay-per-views, personalized merchandise, released music-related NFTs, and has created a valuable connection between fans, brands, and bands. The Company's wholly-owned subsidiaries are LiveXLive, PPVOne, Slacker Radio, React Presents, Gramophone Media, Palm Beach Records, Custom Personalization Solutions, and PodcastOne, which generates more than 2.48 billion downloads per year and 300+ episodes distributed per week across its stable of top-rated podcasts. LiveXLive is available on iOS, Android, Roku, Apple TV, Amazon Fire, and through OTT, STIRR, and XUMO. For more information, visit www.livexlive.com and follow us on Facebook, Instagram, TikTok, and Twitter.
* 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 the United States of America ("GAAP"), we present Contribution Margin (Loss) and Adjusted Earnings Before Interest Tax Depreciation and Amortization ("Adjusted EBITDA"), which are non-GAAP financial measures, as measures of our performance. The presentation of these non-GAAP financial measures is not intended to be considered in isolation from, or as a substitute for, or superior to, operating loss and or net income (loss) or any other performance measures derived in accordance with GAAP or as an alternative to net cash provided by operating activities or any other measures of our cash flows or liquidity.
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 2022 and 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.
** Included in the total number of subscribers for the reported periods are certain subscribers which are the subject of a contractual dispute. LiveOne is currently not recognizing revenue related to these subscribers.
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," "no 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, distribution or transaction, the timing of the closing of such proposed event, including the risks that a condition to closing would not be satisfied within the expected timeframe or at all, or that the closing of any proposed financing, acquisition, spin-out, 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 subscribers; 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; 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, 2021, filed with the U.S. Securities and Exchange Commission (the "SEC") on July 14, 2021, the Company's Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2021, filed with the SEC on August 16, 2021, the Company's Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2021, filed with the SEC on October 29, 2021, 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 obligations 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.
LiveOne IR Contact:
310.601.2505
ir@liveone.com
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SOURCE LiveOne, Inc.
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