Core Points - LiveOne will host a VIP shareholder update on March 17, 2025, at the Montage Hotel Laguna Beach [1] - The company will participate in the 37th Annual ROTH Conference from March 16-18, 2025, at the Laguna Cliffs Marriott Resort & Spa [1][2] - CEO Robert Ellin will be available for one-on-one investor meetings during the conference [2] - LiveOne aims to share its vision and strategy with shareholders and the investment community [2] Company Overview - LiveOne is headquartered in Los Angeles, CA, and operates as a creator-first music, entertainment, and technology platform [3] - The company focuses on delivering premium experiences and content worldwide through memberships and live and virtual events [3] - LiveOne's subsidiaries include Slacker, PodcastOne, PPVOne, CPS, LiveXLive, DayOne Music Publishing, Drumify, and Splitmind [3] - The platform is accessible on various devices including iOS, Android, Roku, Apple TV, Spotify, and Amazon Fire [3] Financial Insights - The company plans to provide updates on its revenue model, M&A strategy, and B2B partnerships [5] - LiveOne is restructuring its balance sheet with expected cost savings of over $30 million [5] - The company has acquired 400,000 additional shares and intends to acquire 450,000 shares of PodcastOne [5]

Company Overview - LiveOne, headquartered in Los Angeles, CA, is a creator-first music, entertainment, and technology platform that focuses on delivering premium experiences and content worldwide through memberships and live and virtual events [2] Key Metrics - LiveOne has surpassed 1.15 million subscribers and ad-supported users, indicating significant growth in its user base [1] - The company has experienced a 120% increase in its user metrics since January 1, 2025 [1] - Daily listening among Tesla owners averages 50 minutes, with 1 million Tesla owners converted to the platform [1] Marketing and Growth Strategy - AI-driven marketing efforts are playing a crucial role in driving user conversion and expanding the database [1]

Core Insights - LiveOne has surpassed 1,000,000 subscribers and is experiencing growth in its B2B partnership pipeline, targeting a total addressable market (TAM) exceeding $13 billion [1][2] - The company has reported a 100%+ increase in combined paid and ad-supported subscribers since January 1 [5] - LiveOne has converted over 900,000 Tesla vehicles, representing more than 45% of the total [5] - There is a month-over-month increase of over 30% in listening on Telly [5] Company Overview - LiveOne is headquartered in Los Angeles, CA, and operates as a creator-first music, entertainment, and technology platform [2] - The company offers premium experiences and content through memberships and live and virtual events, with subsidiaries including Slacker, PodcastOne, and LiveXLive [2] - LiveOne's services are accessible on various platforms, including iOS, Android, Roku, and Spotify [2]

Core Insights - LiveOne has promoted Ryan Carhart to Chief Financial Officer, effective February 19, 2025, highlighting his strong financial discipline and relationships with analysts and bankers [1] - The company anticipates an additional $13 million in cost savings due to immediate actions taken by the new CFO, aiming for total cash savings exceeding $23 million [1] - LiveOne has successfully paid down $3.7 million of its $7 million loan from East West Bank and is in the process of refinancing the remaining debt to secure growth capital [1] Company Overview - LiveOne is a creator-first music, entertainment, and technology platform headquartered in Los Angeles, CA, with a focus on delivering premium experiences through memberships and events [2] - The company's subsidiaries include PodcastOne, Slacker, LiveXLive, and others, and it operates across various platforms including iOS, Android, and Roku [2] PodcastOne Insights - PodcastOne is a leading podcast platform with over 3.9 billion total downloads and a community of 200 top podcasters [3] - The platform has built a distribution network that reaches over 1 billion monthly impressions across channels like YouTube and Spotify [3]

Core Viewpoint - LiveOne, Inc. (LVO) reported a wider GAAP loss in Q3 fiscal 2025, with a loss of 6 cents per share compared to a loss of 3 cents in the previous year, missing the consensus estimate of a 3-cent loss [1][2] Financial Performance - Revenues decreased by 5.8% year over year to $29.4 million, missing the consensus mark by 9.9% [2] - Adjusted non-GAAP EBITDA was $1.5 million, down 53.5%, while the Audio Division's non-GAAP adjusted EBITDA reached $3.6 million [6] - Operating loss totaled $5.1 million, compared to a loss of $0.8 million in the prior-year quarter, primarily due to revenue decline from the Audio Division [6] Business Developments - LVO signed five new deals in Q3, adding over $44 million in revenues, including a $25 million partnership with a Fortune 500 media conglomerate and a $16.5 million deal with Amazon [2][3] - The company anticipates finalizing at least two more partnerships by year-end, with a strong pipeline of over 70 B2B partnerships in various stages of development [3] Audio Division Highlights - The Audio business, including Slacker Radio and PodcastOne, generated $90 million in revenues over the past nine months, marking a historic milestone [4] - The total number of paid and monthly active ad-supported users surpassed 800,000 as of January 2025 [4][5] Outlook and Guidance - For fiscal 2025, LVO revised its revenue guidance to $112-$120 million, down from $120-$135 million, and adjusted EBITDA forecast to $6-$10 million from $8-$15 million [8] - Within the Audio Division, revenues are now expected to be between $106 million and $115 million, slightly reduced from the prior estimate of $110-$120 million, while the adjusted EBITDA target remains unchanged at $12-$20 million [9] Stock Performance - LVO currently holds a Zacks Rank 3 (Hold), with shares losing 18.6% over the past year, contrasting with the Zacks Audio Video Production industry's growth of 32.2% [10]

Revenue Performance - For the three months ended December 31, 2024, the company reported revenue of $29.4 million, a decrease from $31.2 million in the same period of 2023[169]. - Revenue decreased by $1.8 million, or 6%, to $29.4 million for the three months ended December 31, 2024, compared to $31.2 million for the same period in 2023[187]. - Total revenue for the nine months ended December 31, 2024, was $95.1 million, an increase of $7.6 million, or 9%, compared to $87.5 million for the same period in 2023[225]. - Revenue for the nine months ended December 31, 2024, was $95,117 thousand, an increase from $87,541 thousand in 2023, reflecting a growth of approximately 8.9%[268]. - Membership revenue increased by $4.8 million, or 8%, to $52.6 million for the nine months ended December 31, 2024, driven by member growth with the largest OEM customer[226]. - Advertising revenue increased by $6.1 million, or 19%, to $38.2 million for the nine months ended December 31, 2024, primarily due to growth at PodcastOne[227]. - Media Group revenue decreased by $1.6 million, or 40%, to $2.4 million for the three months ended December 31, 2024, primarily due to a reduction in merchandising revenue[216]. Customer Concentration - The company's largest OEM customer accounted for 46% of consolidated revenue for the quarter ended December 31, 2024, down from 49% in 2023[182]. - The company reported total revenue from the OEM customer of $13.5 million for the three months ended December 31, 2024, down from $15.5 million in 2023[169]. - Membership services revenue fell by $2.6 million, or 15%, to $14.3 million, primarily due to changes in terms with the largest OEM customer[188]. - Revenue decreased by $2.5 million, or 15%, to $14.4 million for the three months ended December 31, 2024, primarily due to a change in revenue model with the largest OEM customer[211]. Operating Performance - Net loss attributed to LiveOne increased to $5.2 million for the three months ended December 31, 2024, compared to a net loss of $1.6 million for the same period in 2023[186]. - Operating loss decreased by $1.4 million, or 53%, to $1.2 million for the Audio Group operations, reflecting improved revenue performance[208]. - Adjusted EBITDA decreased by $2.5 million, or 37%, to $4.3 million for the three months ended December 31, 2024, compared to $6.8 million for the same period in 2023[213]. - Operating loss for the nine months ended December 31, 2024, was $7.3 million, compared to a loss of $3.5 million for the same period in 2023[223]. - The company incurred a net loss of $9.5 million for the nine months ended December 31, 2024, with cash provided by operating activities amounting to $10.6 million during the same period[270]. Expenses and Costs - Total operating expenses rose by $2.6 million, or 8%, to $34.6 million, with significant increases in impairment of intangible assets by $3.7 million[197]. - Sales and marketing expenses increased by $0.3 million, or 16%, to $1.8 million, driven by higher employee costs[198]. - Product development expenses rose by $0.4 million, or 61%, to $1.1 million, attributed to increased employee costs[199]. - Impairment of intangible assets surged to $3.8 million, a significant increase of 3210% compared to $0.1 million in the prior year[201]. - Total cost of sales increased by $8.9 million, or 14%, to $71.9 million for the nine months ended December 31, 2024, compared to $63.0 million for the same period in 2023[231]. Strategic Initiatives - The company plans to expand internationally, incurring significant upfront expenses associated with growth opportunities in Europe, Asia Pacific, and Latin America[183]. - The company aims to convert OEM drivers to direct subscribers of the LiveOne app, which is expected to create a meaningful upside opportunity[171]. - The company announced a change in its relationship with its largest OEM customer, which may significantly impact liquidity and cash flows beyond December 31, 2024[272]. - The company is exploring options to extend or refinance its senior secured line of credit to improve liquidity[273]. - The company plans to raise up to $150 million through a universal shelf Registration Statement filed with the SEC, which is effective until February 17, 2025[280]. Financial Position - As of December 31, 2024, the company had a working capital deficiency of $18.1 million, raising substantial doubt about its ability to continue as a going concern[270]. - The company has a senior secured line of credit of $4.3 million and additional loans totaling $1 million as of December 31, 2024[269]. - The company has a minimum cash deposit requirement of $5 million with the Senior Lender as part of the 2025 Business Loan Agreement[275]. - As of December 31, 2024, the company was in compliance with the covenants under the Capchase Loan and the ABL Credit Facility[288].

Financial Data and Key Metrics Changes - The company achieved record revenues of $95 million for the first nine months and $29 million for the quarter, indicating strong performance despite challenges [9] - The cash position increased by $4 million to almost $11 million after paying off $3 million to East West Bank [18] Business Line Data and Key Metrics Changes - The audio business, including Slacker Radio and PodcastOne, generated $90 million in revenues for the first time in the company's history, with an adjusted EBITDA of $14.1 million for the nine months [9] - PodcastOne achieved record revenues and traffic for the quarter, with a guidance of $51 million in revenues and positive EBITDA for the year [20][21] Market Data and Key Metrics Changes - The partnership with Tesla resulted in over 800,000 new users, representing 40% of the total pool of 2 million Tesla cars in North America [15][36] - The company signed five B2B deals in the last 90 days, adding over $44 million in revenues, including significant contracts with a Fortune 500 media conglomerate and Amazon [10] Company Strategy and Development Direction - The company is pivoting its business model to leverage partnerships and deliver its music platform to large user bases through B2B deals [17] - A stock buyback program of $12 million has been initiated, with $6.2 million remaining, reflecting management's confidence in the company's future [17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, stating that this is the first time the company has the opportunity to become a multibillion-dollar company within the next 24 to 36 months [84] - The management acknowledged the challenges faced but emphasized the transformative potential of recent partnerships and the strong performance of the audio business [8][82] Other Important Information - The company is exploring M&A opportunities with multiple bankers, including JPMorgan, to enhance its business and unlock additional value [22] - The publishing business grew by approximately 100%, with a 1 song contributing to potential significant revenues [72] Q&A Session Summary Question: What is the expected ARPU going forward? - Management indicated that there is an opportunity to raise prices significantly, especially with the recent changes involving Tesla [25][27] Question: How does the new Tesla service work for new customers? - New Tesla customers have the option to choose ad-supported or subscription services, with a significant number of free ad-supported subscribers already signed up [30][32] Question: Why isn't the gross margin lower given the costs associated with new subscribers? - Management explained that the ad-supported service just launched, and the costs associated with it are not yet fully reflected in the margins [64][66] Question: How close is the company to seeing revenue from sources other than Slacker and PodcastOne? - Management highlighted growth in the publishing business and the launch of new products, indicating a positive trajectory for additional revenue streams [72][73]

Revenue Performance - LiveOne reported record revenues of $95.1 million for the nine months ended December 31, 2024, compared to $87.5 million for the same period in the prior year, representing an increase of 8.5%[1][5] - The Audio Division achieved record revenue of $90.6 million, a 13% year-over-year increase, with Q3 Fiscal 2025 revenue at $27.1 million, down 1% from $27.3 million in Q3 Fiscal 2024[3][6] - Revenue for the three months ended December 31, 2024, was $29,445 million, a decrease of 5.7% compared to $31,245 million for the same period in 2023[28] Operating Loss and Expenses - LiveOne's Q3 Fiscal 2025 operating loss was $5.1 million, compared to a loss of $0.8 million in Q3 Fiscal 2024, primarily due to decreased revenue from the Audio Division[7] - Total operating expenses for the three months ended December 31, 2024, were $34,558 million, an increase of 7.9% from $31,998 million in the same period in 2023[28] Net Loss and Financial Position - Net loss for the three months ended December 31, 2024, was $5,638 million, compared to a net loss of $2,224 million for the same period in 2023, representing an increase in loss of 153.5%[28] - Net loss attributable to LiveOne for the three months ended December 31, 2024, was $5,233 million, compared to a net loss of $1,574 million for the same period in 2023[28] - The company reported a net loss per share of $0.06 for the three months ended December 31, 2024, compared to a net loss per share of $0.03 for the same period in 2023[28] Cash Position and Assets - LiveOne's cash position was $10.9 million as of December 31, 2024, with $11 million in cost savings achieved through restructuring efforts[3] - Cash and cash equivalents as of December 31, 2024, were $10,854 million, an increase from $6,987 million as of March 31, 2024[30] - Total assets decreased to $56,216 million as of December 31, 2024, from $63,863 million as of March 31, 2024[30] - Total liabilities decreased to $55,087 million as of December 31, 2024, from $57,306 million as of March 31, 2024[30] Subscriber Growth and Business Development - The company has 800,000 Tesla subscribers, including over 475,000 ad-supported users, with a 130% increase in overall direct-billed subscribers since October 2024[12] - LiveOne closed 5 B2B deals in the quarter and expects to close 2 or more by year-end, with over 70 deals in the pipeline[3] Guidance and Future Outlook - LiveOne updated its fiscal year 2025 guidance to consolidated revenue of $112 million to $120 million and Adjusted EBITDA of $6 million to $10 million[10] Podcast Performance - PodcastOne ranked in the Top 10 in PODTRAC's Podcast Industry Top Publishers Rankings for January 2025, with a U.S. unique monthly audience of approximately 5.2 million[4] Adjusted EBITDA - Adjusted EBITDA for Q3 Fiscal 2025 was $1.5 million, down from $3.3 million in Q3 Fiscal 2024, with Audio Division Adjusted EBITDA at $3.6 million[8] Contribution Margin - Contribution margin for the three months ended December 31, 2024, was $7,153 million, down from $7,978 million in the same period in 2023, reflecting a decrease of 10.3%[36] Shareholder Returns - The company reaffirmed its $12 million stock buyback program, with $6.2 million remaining[3] Share Count - Weighted average common shares outstanding for the three months ended December 31, 2024, were 95,501,753, compared to 87,882,364 for the same period in 2023[28]

Core Viewpoint - LiveOne reported a quarterly loss of $0.03 per share, consistent with the Zacks Consensus Estimate, and the same loss as the previous year [1] - The company missed revenue expectations, posting $29.45 million, which is a 9.93% shortfall compared to the consensus estimate and a decline from $31.25 million year-over-year [2] Group 1: Financial Performance - LiveOne's quarterly loss was $0.03 per share, matching the Zacks Consensus Estimate, and reflecting no change from the previous year's loss [1] - The company reported revenues of $29.45 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 9.93% and down from $31.25 million a year ago [2] - Over the last four quarters, LiveOne has not surpassed consensus EPS estimates and has only topped revenue estimates once [2] Group 2: Stock Performance and Outlook - LiveOne shares have decreased by approximately 19.7% since the beginning of the year, contrasting with the S&P 500's gain of 2.9% [3] - The future performance of LiveOne's stock will largely depend on management's commentary during the earnings call and the earnings outlook [4] - The current consensus EPS estimate for the upcoming quarter is -$0.05 on revenues of $26.43 million, and for the current fiscal year, it is -$0.11 on revenues of $124.79 million [7] Group 3: Industry Context - The Audio Video Production industry, to which LiveOne belongs, is currently ranked in the top 19% of over 250 Zacks industries, indicating a favorable industry outlook [8] - Historical data suggests that the top 50% of Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1 [8]

Core Insights - LiveOne reported a revenue of $29.4 million for Q3 Fiscal 2025, a 6% decrease from $31.2 million in Q3 Fiscal 2024 [3][4] - The company is exploring strategic alternatives to enhance shareholder value, which may include acquisitions or mergers [2] - LiveOne's operating loss for Q3 Fiscal 2025 was $5.1 million, compared to a loss of $0.8 million in the same quarter last year [5] Financial Performance - Revenue for the nine months ended December 31, 2024, was $95.1 million, up from $87.5 million in the same period in 2023 [3][25] - Adjusted EBITDA for Q3 Fiscal 2025 was $1.5 million, down from $3.3 million in Q3 Fiscal 2024 [6][29] - The Audio Division generated revenue of $27.1 million in Q3 Fiscal 2025, a slight decrease of 1% from $27.3 million in Q3 Fiscal 2024 [4][8] Operational Highlights - LiveOne's Audio Division recorded a total revenue of $90.6 million for the year, representing a 13% year-over-year increase [8] - The company closed five B2B deals and expects to finalize more by year-end, with over 70 deals in the pipeline [8] - As of December 31, 2024, LiveOne had $10.9 million in cash and reaffirmed a $12 million stock buyback program, with $6.2 million remaining [8] User Growth and Engagement - The total number of paid and monthly active ad-supported users exceeded 800,000 in January 2025, with direct-billed premium subscribers increasing by 78% since October 2024 [9] - LiveOne's partnership with Tesla has significantly contributed to user growth, with over 100,000 new subscribers added following a presentation at Mar-a-Lago [9] Future Guidance - LiveOne updated its fiscal year 2025 guidance to a consolidated revenue range of $112 million to $120 million and Adjusted EBITDA of $6 million to $10 million [10]