LiveOne Posts Loss in Q3, Revenues Down Y/Y, FY2025 Guidance Revised

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]