rtside (US:PODC)2025-02-14 20:20Revenue and Growth - Revenue for the nine months ended December 31, 2024, was $38.0 million, representing a year-over-year growth of 20% from $31.6 million in 2023[134] - Revenue increased by $6.4 million, or 20.2%, to $38.0 million for the nine months ended December 31, 2024, from $31.6 million in 2023[187] - Revenue increased by $2.3 million, or 22%, to $12.7 million for the three months ended December 31, 2024, compared to $10.4 million for the same period in 2023[163] Podcast Performance - The company surpassed 3.8 billion network downloads and expanded its programming slate to 194 shows during the quarter ended December 31, 2024[136] - The number of podcast downloads decreased by 40% year-over-year to 368,812,413 for the year ended March 31, 2024, and by 50% to 155,469,000 for the nine months ended December 31, 2024[149] - PodcastOne has 5.1+ million monthly unique listeners and 16+ million IAB monthly downloads[131] - PodcastOne was ranked 8 on the December 2024 list of Top Podcast Publishers by Podtrac[129] Financial Performance - Net loss for the three months ended December 31, 2024, was $1.6 million, improving from a net loss of $2.6 million in the same period of 2023[161] - Net loss for the nine months ended December 31, 2024, was $4.6 million, an improvement from a net loss of $13.7 million in the same period of 2023[171] - Contribution margin decreased by $1.7 million, or 34.5%, to $3.2 million for the nine months ended December 31, 2024, compared to $4.9 million in 2023[187] Expenses - Cost of sales rose by $2.6 million, or 28%, to $12.0 million for the three months ended December 31, 2024, in line with revenue growth[164] - Cost of sales for the nine months ended December 31, 2024, increased by $8.2 million, or 31%, to $34.8 million compared to $26.7 million for the same period in 2023[171] - General and administrative expenses decreased by $1.3 million, or 51%, to $1.3 million for the three months ended December 31, 2024, compared to $2.6 million for the same period in 2023[168] - Sales and marketing expenses increased by $0.2 million, or 22%, to $0.9 million for the three months ended December 31, 2024, compared to $0.7 million for the same period in 2023[166] - Sales and marketing expenses decreased by $0.8 million, or 24%, to $2.6 million for the nine months ended December 31, 2024, compared to $3.4 million in 2023[176] - Product development expenses decreased by $30,000, or 43%, to $40,000 for the nine months ended December 31, 2024, from $70,000 in 2023[177] - General and administrative expenses decreased by $0.6 million, or 13%, to $4.1 million for the nine months ended December 31, 2024, compared to $4.7 million in 2023[178] - Stock-based compensation expense decreased by 62% to $679,000 for the three months ended December 31, 2024, compared to $1.8 million for the same period in 2023[162] Cash Flow and Liquidity - As of December 31, 2024, cash and cash equivalents amounted to $0.6 million, with a related party payable balance of $0.8 million[189] - LiveOne's net cash used in operating activities for the nine months ended December 31, 2024 was $0.7 million, primarily due to a net loss of $4.6 million, which included non-cash charges of $3.1 million[200] - LiveOne's net cash provided by operating activities for the nine months ended December 31, 2023 was $1.8 million, despite a net loss of $13.7 million, which included non-cash charges of $12.9 million[201] - LiveOne's net cash used in investing activities for the nine months ended December 31, 2024 was $0.2 million, primarily for the purchase of fixed assets[202] - LiveOne's liquidity will depend on its ability to convert OEM drivers to direct subscribers and negotiate flexible terms with music labels and publishers[194] - LiveOne is seeking additional interim financing to continue operations beyond February 2026, with existing cash resources deemed insufficient[195] - LiveOne's working capital was $0.4 million as of December 31, 2024, raising substantial doubt about its ability to continue as a going concern[197] Debt and Financing - As of December 31, 2024, LiveOne's total outstanding consolidated indebtedness was $5.2 million, net of fees and discounts, consisting of the ABL Credit Facility and the Capchase Loan[192] - LiveOne repaid a total of $3.25 million of the principal amount underlying the ABL Credit Facility in late 2024, reducing the facility size to $3.75 million[191] - As of December 31, 2024, LiveOne was in compliance with all covenants under the Capchase Loan and the ABL Credit Facility[206] Strategic Initiatives - An agreement with ART19, a subsidiary of Amazon, is expected to generate revenue exceeding $25 million for the 2025 calendar year[136] - The company is actively pursuing potential acquisitions of podcasts and shows consistent with its growth strategy[138] - PodcastOne's advertising strategy focuses on host-read embedded ads, dynamic ads, and programmatic monetization channels[132] - The company aims to mitigate risk by acquiring multiple assets over time across a broad spectrum of podcast-related media[130] - PodcastOne operates Launchpad One, a self-publishing platform for independent podcasters, serving as a talent pool for new podcasts[133]