LiveWorld Reports Third Quarter Financial Results

Rhea-AI Summary

LiveWorld, Inc. (OTC Markets: LVWD) reported a 3% increase in Q3 2022 revenues to $2.8 million, with nine-month revenues rising 8% to $8.0 million. Q3 healthcare revenues also grew by 3% to $2.4 million. The company achieved a net income of $253,000, representing 9% of revenues. Cash reserves totaled $3.5 million at quarter-end. Management anticipates a material revenue improvement for Q4 2022 due to new client acquisitions in agency creative services and technology, reinforcing positive growth expectations for 2023.

Positive

• Q3 2022 revenues increased by 3% year-over-year to $2.8 million.
• Nine-month revenues rose 8% year-over-year to $8.0 million.
• Net income for Q3 was $253,000, or 9% of total revenues.
• Continued profitability for the tenth consecutive quarter.
• Expectations for material revenue improvement in Q4 2022.

Negative

• Net income decreased from 10% of total revenues in Q3 2021 to 9% in Q3 2022.

CAMPBELL, Calif. & NEW YORK--(BUSINESS WIRE)-- LiveWorld, Inc. (OTC Markets: LVWD), today announced financial results for the third quarter of 2022, ended September 30.

Q3 2022 Financial and Business Highlights

• Q3 total revenues of $2.8 million, up 3% year-over-year
• Nine months total revenues of $8.0 million, up 8% year-over-year
• Q3 Healthcare revenues of $2.4 million, up 3% year-over-year
• Net income from operations of $253,000 or 9% of revenues
• Cash was $3.5 million at end of quarter

Management Commentary

“The third quarter was the tenth consecutive quarter of profitability and we saw continued growth in our revenues,” said David Houston, Chief Financial Officer of LiveWorld. “Over the past few months, we closed new clients in agency creative services, moderation, and technology. This will have a positive impact to both the top and bottom lines for the fourth quarter of 2022 and into 2023.”

“Our current client relationships remain solid as we look to expand our offerings to them, even in this uncertain overall economy,” said David Houston. “Given the recent new client wins and growth of current clients, our expectations for the fourth quarter are for a material improvement in the revenues, which should provide for a higher level of profitability.”

Financial Review for Q3 and Nine Months Ended September 30^th

Total revenues were approximately $2.8 million for the third quarter, as compared to the approximately $2.7 million in total revenues reported for the same period in 2021. This was an increase of approximately $91,000 or 3% when compared to the third quarter of 2021. Total revenues for the nine months ended September 30, 2022 were approximately $8.0 million, as compared to the $7.4 million for the nine months ended September 30, 2021. This was an increase of approximately $544,000 or 8% when compared to the nine months ended September 30, 2021.

The company reported net income for the quarter of approximately $253,000 or 9% of total revenues. This compares to net income of approximately $263,000 or 10% of total revenues reported for the third quarter of 2021. The company recorded net income for the nine months period ended September 30, 2022, of approximately $514,000, or 6% of total revenues, as compared to the net income for the nine months ended September 30, 2021, of approximately $514,000, or 7% of total revenues.

The company finished the third quarter with approximately $3.5 million in cash and cash equivalents, and approximately $3.6 million compared to the end of 2021.

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 connections, 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 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)
	September 30,				December 31,
	2022				2021
ASSETS
Current assets
Cash and cash equivalent	$	3,547			$	3,551
Accounts receivable, net		2,225				1,773
Prepaid expenses		209				156
Total current assets		5,981				5,480
Property and equipment, net		42				47
Other assets		25				25
Total assets	$	6,048			$	5,552
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable	$	149			$	231
Accrued employee expenses		711				1,076
Other accrued liabilities		55				14
Deferred revenue		1,432				1,169
Total current liabilities		2,347				2,490
Total liabilities		2,347				2,490
Stockholders' equity
Common stock: $0.001 par value, 100,000,000 shares authorized 45,633,442 issued and outstanding as of September 30, 2022 and December 31, 2021 respectively		34				34
Additional paid-in capital		143,826				143,701
Accumulated deficit		(140,159	)			(140,673	)
Total stockholders' equity		3,701				3,062
Total liabilities and stockholders' equity	$	6,048			$	5,552

LIVEWORLD, INC.
CONDENSED STATEMENT OF OPERATIONS
(In thousands, except per share data)
	Three Months Ended Sept 30,						Nine Months Ended Sept 30,
	2022			2021			2022			2021
Total revenues	$	2,777		$	2,686		$	7,953		$	7,409
Cost of revenues		1,374			1,193			3,906			3,695
Gross Margin		1,403			1,493			4,047			3,714
Operating Expense
Product development		252			208			697			643
Sales and marketing		268			409			1,060			967
General and administrative		619			608			1,712			1,567
Total operating expense		1,139			1,225			3,469			3,177
Income / (loss) from operations		264			268			578			537
Income / (loss) before tax		264			268			578			537
Other Income / Expense	------------			-----------				1		-----------
Provision for income taxes		11			5			65			23
Net income / (loss)		253			263			514			514
Basic income / (loss) per share	$	0.01		$	0.01		$	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		$	0.01
Shares used in computing diluted income (loss) per share		62,916,831			62,730,038			62,566,831			62,730,038
Departmental allocation of stock-based compensation:
Cost of revenues	$	12		$	4		$	34		$	8
Product development		3			1			7			4
Sales and marketing		8			1			18			4
General and administrative		30			7			66			19
Total stock-based compensation	$	53		$	13		$	125		$	35

LIVEWORLD, INC.
CONDENSED STATEMENTS OF CASH FLOWS
(In thousands)
	Three Months Ended Sept 30,								Nine Months Ended Sept 30,
	2022				2021				2022				2021
Cash flows from operating activities:
Net income (loss)	$	253			$	263			$	514			$	514
Adjustments to reconcile net income (loss) provided by (used in) operating activities:
Depreciation of long-lived assets		7				5				19				14
Stock-based compensation		53				13				125				35
Changes in operating assets and liabilities:
Accounts receivable		252				703				(451	)			(362	)
Other assets		29				22				(53	)			(55	)
Accounts payable		(399	)			27				(83	)			36
Accrued liabilities		38				49				(324	)			507
Deferred revenue		(232	)			(270	)			263				747
Net cash provided by (used in) operating activities		1				812				10				1,436
Cash flows from investing activities:
Purchase of property and equipment		(2	)			(3	)			(14	)			(12	)
Net cash provided by (used in) investing activities		(2	)			(3	)			(14	)			(12	)
Cash flows from financing activities:
Loan	------------				-----------				------------					106
Proceeds from exercise of stock options	------------				-----------				------------				-----------
Net cash provided by (used for) financing activities	------------				-----------				------------					106
Change in cash and cash equivalent		(1	)			809				(4	)			1,530
Cash and cash equivalents, beginning of period		3,548				3,273				3,551				2,552
Cash and cash equivalents, end of period	$	3,547			$	4,082			$	3,547			$	4,082
Supplemental disclosure of non-cash financing and investing activities:
Income taxes paid	$	11			$	5			$	65			$	23

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20221114005277/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 Q3 2022 financial results?

LiveWorld reported Q3 2022 revenues of $2.8 million, up 3% year-over-year, with net income of $253,000.

What is the outlook for LiveWorld in Q4 2022?

Management expects material revenue improvement in Q4 2022 due to new client acquisitions.

How did LiveWorld's nine-month revenues perform in 2022?

Nine-month revenues for 2022 reached $8.0 million, an 8% increase from 2021.

What percentage of revenues was net income in Q3 2022 for LiveWorld?

Net income for Q3 2022 stood at 9% of total revenues.