LiveOne(LVO) - 2024 Q4 - Earnings Call Transcript

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]