LiveWorld Reports Second Quarter 2024 Financial Results

Rhea-AI Summary

LiveWorld, Inc. (OTC: LVWD) reported its Q2 2024 financial results, showing a decrease in revenues and a net loss from operations. Key highlights include:

- Total revenues of $2.8 million, down 9% year-over-year
- Healthcare revenues of $2.4 million
- Net loss from operations of ($134,000)
- Cash increased by $136,000 to $4.8 million

The company expects flat revenues for 2024 compared to 2023 due to tightened corporate budgets and client program attrition. LiveWorld is investing in new solutions and market segments, aiming for future growth in 2025 and beyond.

Positive

• Cash position increased by $136,000 to $4.8 million from December 31, 2023
• New clients signed and increased programs with some current clients
• Investment in new solutions for advertising media management and pharma compliance support

Negative

• Total revenues decreased by 9% to $2.8 million compared to Q2 2023
• Net loss from operations of ($134,000) in Q2 2024
• Full year 2024 revenues expected to be relatively flat compared to 2023
• Net loss of $632,000 for the first six months of 2024, compared to net income of $298,000 in the same period of 2023

CAMPBELL, Calif. & NEW YORK--(BUSINESS WIRE)-- LiveWorld, Inc. (OTC Markets: LVWD), today announced financial results for the second quarter 2024.

Q2 2024 Financial and Business Highlights

• Total three months revenues of $2.8 million
• Healthcare revenues of $2.4 million in Q2 2024
• Net loss from operations of ($134,000)
• Cash increased by $136,000 to $4.8 million from December 31, 2023

Management Commentary

“In the first six months of 2024 we have seen net losses as a result of reduced revenues and our planned investment for 2024,” remarked David Houston, Chief Financial Officer of LiveWorld. “During this period we signed new clients and increased programs with some current clients. But we also found some corporate budgets tighten which we believe is a short-term condition. This combined with the usual client program attrition, indicate the full year 2024 revenues will be relatively flat when compared to 2023. Long term we believe our market segments and product lines are poised for growth.”

“2024 and 2025 are investment years for LiveWorld,” said Peter Friedman, Chairman & CEO. “Our new solutions in managing advertising media and in providing compliance support for pharma digital and social media marketing, along with our existing award-winning creative advertising programs and best in class moderation, are being well received. We expect these and our entry into new segments in the healthcare market to form a foundation for growth in future years.”

Financial Review for the Three and Six Months Ended June 30, 2024

Total revenues were approximately $2.8 million for the three months, as compared to approximately $3.1 million in total revenues reported for the same period in 2023. This was a decrease of approximately $284,000 or 9% when compared to the three months of 2023.

Total revenues were approximately $5.4 million for the six months, as compared to approximately $5.8 million in total revenues reported for the same period in 2023. This was a decrease of approximately $459,000 or 8% when compared to the three months of 2023.

The company reported a net loss for the three months of approximately $134,000 or 5% of total revenues. This compares to net income of approximately $164,000 or 5% of total revenues reported for the three months of 2023.

The company reported a net loss for the six months of approximately $632,000 or 12% of total revenues. This compares to net income of approximately $298,000 or 5% of total revenues reported for the six months of 2023.

The company finished the quarter with approximately $4.8 million in cash and cash equivalents, compared to approximately $4.6 million at the end of 2023.

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

About LiveWorld

LiveWorld is a social-first digital agency that unlocks the full potential of social media to transform customer relationships through integrated compliance, engagement, and insight solutions. We provide brand marketers bold creative rooted in strategy that captivates and resonates, social moderation and engagement that activates interactions, software that enriches customer experiences, and compliance that enables and accelerates digital programs.

With over 28 years of making connections, we leverage 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 Campbell, 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)
		June 30,				December 31,
		2024				2023
ASSETS
Current assets
Cash and cash equivalent		$	4,772			$	4,635
Accounts receivable, net			2,082				1,701
Prepaid expenses			226				225
Total current assets			7,080				6,561
Property and equipment, net			38				44
Other assets			26				27
Total assets		$	7,144			$	6,632
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable		$	222			$	238
Accrued employee expenses			768				890
Other accrued liabilities			260				343
Deferred revenue			1,646				438
Total current liabilities			2,896				1,909
Total liabilities			2,896				1,909
Stockholders' equity
Common stock: $0.001 par value, 100,000,000 shares authorized 45,633,442 issued and outstanding as of June 30, 2024, and December 31, 2023, respectively			34				34
Additional paid-in capital			144,287				144,131
Accumulated deficit			(140,073	)			(139,442	)
Total stockholders' equity			4,248				4,723
Total liabilities and stockholders' equity		$	7,144			$	6,632

LIVEWORLD, INC.
CONDENSED STATEMENT OF OPERATIONS
(In thousands, except per share data)
		Three Months Ended June 30,							Six Months Ended June 30,
		2024				2023			2024				2023
Total revenues		$	2,786			$	3,070		$	5,359			$	5,818
Cost of revenues			1,567				1,477			3,144				2,793
Gross Margin			1,219				1,593			2,215				3,025
Operating Expense
Product development			245				272			517				531
Sales and marketing			460				451			970				881
General and administrative			629				606			1,340				1,213
Total operating expense			1,334				1,329			2,827				2,625
Income from operations			(115	)			264			(612	)			400
Income before tax			(115	)			264			(612	)			400
Other Income			1				1			2				2
Provision for income taxes			20				101			22				104
Net income from operations			(134	)			164			(632	)			298
Earnings per share analysis from operations:
Basic income per share		$	(0.00	)		$	0.00		$	(0.01	)		$	0.01
Shares used in computing basic loss per share			45,633,442				45,633,442			45,633,442				45,633,442
Diluted net income (loss) per share		$	(0.00	)		$	0.00		$	(0.01	)		$	0.00
Shares used in computing diluted income (loss) per share			45,633,442				64,547,778			45,633,442				64,547,778
Departmental allocation of stock-based compensation:
Cost of revenues		$	19			$	15		$	38			$	29
Product development			5				3			9				7
Sales and marketing			8				8			16				16
General and administrative			48				34			93				67
Total stock-based compensation		$	80			$	60		$	156			$	119

LIVEWORLD, INC.
CONDENSED STATEMENTS OF CASH FLOWS
(In thousands)
		Three Months Ended June 30,								Six Months Ended June 30,
		2024				2023				2024				2023
Cash flows from operating activities:
Net income (loss)		$	(134	)		$	164			$	(632	)		$	298
Adjustments to reconcile net income (loss) provided by (used in) operating activities:
Depreciation of long-lived assets			6				8				13				15
Stock-based compensation			80				60				156				119
Changes in operating assets and liabilities:
Accounts receivable			181				575				(381	)			476
Other assets			125				46			----					(64	)
Accounts payable			(14	)			82				(16	)			127
Accrued liabilities			10				87				(204	)			(154	)
Deferred revenue			203				(436	)			1,207				364
Net cash provided by (used in) operating activities			457				586				143				1,181
Cash flows from investing activities:
Purchase of property and equipment			(1	)			(16	)			(6	)			(20	)
Net cash provided by (used in) investing activities			(1	)			(16	)			(6	)			(20	)
Cash flows from financing activities:
Proceeds from exercise of stock options		----					---			----					---
Net cash provided by (used for) financing activities		----					---			----					---
Change in cash and cash equivalent			456				570				137				1,161
Cash and cash equivalents, beginning of period			4,316				4,392				4,635				3,801
Cash and cash equivalents, end of period		$	4,772			$	4,962			$	4,772			$	4,962
Supplemental disclosure of non-cash financing and investing activities:
Income tax paid		$	20			$	101			$	22			$	104

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240814006253/en/

LiveWorld Contacts

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 were LiveWorld's (LVWD) Q2 2024 total revenues?

LiveWorld's total revenues for Q2 2024 were $2.8 million, representing a 9% decrease compared to the same period in 2023.

How much were LiveWorld's (LVWD) healthcare revenues in Q2 2024?

LiveWorld's healthcare revenues in Q2 2024 were $2.4 million.

What was LiveWorld's (LVWD) net loss from operations in Q2 2024?

LiveWorld reported a net loss from operations of ($134,000) in Q2 2024.

How much cash did LiveWorld (LVWD) have at the end of Q2 2024?

LiveWorld had approximately $4.8 million in cash and cash equivalents at the end of Q2 2024, an increase of $136,000 from December 31, 2023.

What is LiveWorld's (LVWD) revenue outlook for 2024?

LiveWorld expects full year 2024 revenues to be relatively flat compared to 2023 due to tightened corporate budgets and client program attrition.