LiveWorld Reports First Quarter 2022 Financial Results

Rhea-AI Summary

LiveWorld, Inc. (OTC Markets: LVWD) reported a strong financial performance for Q1 2022, with total revenues of $2.5 million, reflecting a 10% increase from Q1 2021's $2.2 million. Healthcare revenues grew 12% to $2.1 million. Net income reached $122,000, maintaining a steady 5% margin. Despite a decrease in cash and equivalents to $2.9 million, the company anticipates improved cash flow in Q2 due to ongoing contract renewals and enhanced sales efforts aimed at sustaining revenue growth through 2022 and 2023.

Positive

• Total revenues increased by 10% year-over-year.
• Healthcare revenues rose by 12%, indicating strong demand.
• Net income remained stable at 5% of total revenues.

Negative

• Cash and cash equivalents decreased from approximately $3.6 million to $2.9 million.
• Slight delays in cash collections were noted during contract renewals.

Company sees double digit growth in revenues and continued operating profits

• Q1 total revenues of $2.5 million, up 10% year-over-year
• Healthcare revenues of $2.1 million, up 12% year-over-year
• Net income from operations of $122,000 or 5%
• Current company valuation is approximately 0.77x Q1 annualized revenues

 

CAMPBELL, Calif. & NEW YORK CITY--(BUSINESS WIRE)-- LiveWorld, Inc. (OTC Markets: LVWD), today announced financial results for the first quarter of 2022. Total revenues were approximately $2.5 million for the first quarter, as compared to the approximately $2.2 million in total revenues reported for the same period in 2021. This was an increase of approximately $227,000 or 10% when compared to the first quarter of 2021.

We reported a net income for the quarter of approximately $122,000 or 5% of total revenues. This compares to net income of approximately $121,000 or 5% of total revenues reported for the first quarter of 2021.

We finished the first quarter with approximately $2.9 million in cash and cash equivalents, as compared to the approximately $3.6 million at the end of 2021. The first quarter of the year sees slight delays in cash collections as we renew contracts. We expect to see improvements in our cash in the second quarter.

“In the first quarter we saw solid growth in our revenues and continued operating profits from our healthcare initiatives,” said David Houston, Chief Financial Officer of LiveWorld. “Additionally, we materially increased our sales and marketing efforts to see continued revenue growth in 2022 and 2023. We intend to carry on with these increased efforts for the remainder of 2022.”

Detailed financial information may be downloaded at www.liveworld.com/ir (LiveWorld’s Investor Relations page) or at www.otcmarkets.com.

About LiveWorld

LiveWorld is a digital agency specializing in social media and technology solutions that help companies spark emotional conversations, build stronger customer relationships, and drive behavior change. We live at the intersection of bold creative rooted in strategy that inspires, moderation that activates human interactions, and technology that enriches and scales customer experiences. With over 25 years of making connections, our integrated team leverages our social media DNA to deliver emotion driven behavior change through digital campaigns with a human touch. LiveWorld clients include the number one brands in pharmaceuticals, healthcare, and financial-travel services. LiveWorld is headquartered in San Jose, California, with an additional office in New York City.

Learn more at www.liveworld.com and @LiveWorld.

“Safe Harbor" Statement Under The Private Securities Litigation Reform Act

This press release may contain forward-looking information concerning LiveWorld plans, objectives, future expectations, forecasts and prospects. These statements may include those regarding LiveWorld’s current or future financial performance including but not limited to lists of clients, revenue and profit, use of cash, investments, relationships and the actual or potential impact of stock option expense, and the results of its product development efforts. Actual results may differ materially from those expressed in the forward- looking statements made as a result of, among other things, final accounting adjustments and results, LiveWorld’s ability to attract new clients and preserve or expand its relationship with existing clients, LiveWorld’s ability to retain and attract high quality employees, including its management staff, the ability to deliver new innovative products in a timely manner, changing accounting treatments, and other risks applicable to the Company. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, and the Company undertakes no obligation to update these forward-looking statements to reflect subsequent events or circumstances.

LIVEWORLD, INC.
UNAUDITED CONDENSED BALANCE SHEETS
(In thousands, except share data)
		March 31,			December 31,
		2022			2021
ASSETS
Current assets
Cash and cash equivalent		$	2,932		$	3,551
Accounts receivable, net			2,652			1,773
Prepaid expenses			389			156
Total current assets			5,973			5,480
Property and equipment, net			44			47
Other assets			25			25
Total assets		$	6,042		$	5,552
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable		$	310		$	231
Accrued employee expenses			800			1,076
Other accrued liabilities			27			14
Deferred revenue			1,695			1,169
Total current liabilities			2,832			2,490
Total liabilities			2,832			2,490
Stockholders' equity
Common stock: $0.001 par value, 100,000,000 shares authorized 45,633,442 issued and outstanding as of March 31, 2022 and December 31, 2021 respectively			34			34
Additional paid-in capital			143,727			143,701
Accumulated deficit			(140,551)			(140,673)
Total stockholders' equity			3,210			3,062
Total liabilities and stockholders' equity		$	6,042		$	5,552

LIVEWORLD, INC.
CONDENSED STATEMENT OF OPERATIONS
(In thousands, except per share data)
		Three Months Ended			Three Months Ended
		March 31,			March 31,
		2022			2021
Total revenues		$	2,451		$	2,224
Cost of revenues			1,238			1,156
Gross Margin			1,213			1,068
Operating Expense
Product development			202			217
Sales and marketing			401			252
General and administrative			483			474
Total operating expense			1,086			943
Income from operations			127			125
Income before tax			127			125
Other Income / Expense		------------			-----------
Provision for income taxes			5			4
Net income			122			121
Basic income per share		$	0.00		$	0.00
Shares used in computing basic loss per share			45,633,442			45,633,442
Diluted net income per share		$	0.00		$	0.00
Shares used in computing diluted income per share			68,916,821			65,603,063
Departmental allocation of stock-based compensation:
Cost of revenues		$	9		$	3
Product development			1			1
Sales and marketing			4			1
General and administrative			12			5
Total stock-based compensation		$	26		$	10

LIVEWORLD, INC.
CONDENSED STATEMENTS OF CASH FLOWS
(In thousands)
		Three Months Ended			Three Months Ended
		March 31,			March 31,
		2022			2021
Cash flows from operating activities:
Net income		$	122		$	121
Adjustments to reconcile net income provided by operating activities:
Depreciation of long-lived assets			6			5
Stock-based compensation			26			10
Changes in operating assets and liabilities:
Accounts receivable			(878)			(999)
Other assets			(232)			(118)
Accounts payable			79			5
Accrued liabilities			(264)			84
Deferred revenue			525			452
Net cash provided by (used in) operating activities			(616)			(440)
Cash flows from investing activities:
Purchase of property and equipment			(3)			(5)
Net cash provided by (used in) investing activities			(3)			(5)
Loan		------------				106
Proceeds from exercise of stock options		------------			-----------
Net cash provided by (used for) financing activities		------------				106
Change in cash and cash equivalent			(619)			(339)
Cash and cash equivalents, beginning of period			3,551			2,552
Cash and cash equivalents, end of period		$	2,932		$	2,213
Supplemental disclosure of non-cash financing and investing activities:
Income tax paid		$	5		$	4

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20220512005293/en/

IR Contact:

David Houston

LiveWorld

dhouston@liveworld.com

(408) 615-8496

PR Contact:

Matthew Hammer

LiveWorld

mhammer@liveworld.com

(737) 212-9739

Source: LiveWorld, Inc.

FAQ

What is LiveWorld's revenue growth in Q1 2022?

LiveWorld reported a 10% increase in total revenues, reaching $2.5 million in Q1 2022.

How much net income did LiveWorld report for Q1 2022?

LiveWorld reported a net income of $122,000 for Q1 2022.

What are LiveWorld's expectations for cash flow in Q2 2022?

LiveWorld expects improvements in cash flow in Q2 2022 as they renew contracts.

How did healthcare revenues perform in Q1 2022 for LiveWorld?

Healthcare revenues increased by 12% to $2.1 million in Q1 2022.

What percentage of revenue was net income for LiveWorld in Q1 2022?

Net income for LiveWorld in Q1 2022 was 5% of total revenues.