Loop Media (US:LPTV)2023-08-12 16:44Financial Data and Key Metrics Changes - Revenue decreased approximately 47% to $5.7 million compared to $10.8 million in the same period last year, primarily due to a reduction in ad placements and a general slowdown in digital advertising spend [29] - Gross margin rate was 31.8%, down from 35% in the prior year quarter, driven by revenue mix changes and the full quarter impact of the lower margin Partner Platform business [9] - Net loss for the fiscal third quarter was $7.9 million or $0.14 loss per share, compared to a net loss of $5.7 million or $0.11 loss per share for the same period last year [10] Business Line Data and Key Metrics Changes - The Partner Platform business saw a 50% increase in screens, adding 12,000 screens to reach a total of 36,000 [38] - Gross profit in the fiscal third quarter was $1.8 million, down from $3.8 million in the same period last year, due to reduced sales and challenges in leveraging fixed costs [30] Market Data and Key Metrics Changes - The company experienced headwinds in the digital programmatic ads market, which began in the second half of fiscal Q1 and continued through fiscal Q3 [3][4] - Monthly video impressions viewed are estimated to exceed 2 billion, indicating a substantial distribution footprint [34] Company Strategy and Development Direction - The company aims to diversify revenue sources and reduce the impact of advertising market downturns, focusing on direct ad sales and key advertising geographies [23] - A new inventory category for supply-side partnerships called CTV Out of Home has been created, which is expected to enhance revenue growth opportunities [20] Management's Comments on Operating Environment and Future Outlook - Management believes the slowing growth is temporary and anticipates more positive outcomes in future periods as the advertising market improves [3][7] - The company is committed to increasing efficiency and cost-cutting while maintaining growth, having reduced SG&A costs by approximately 20% from fiscal Q2 to Q3 [25][36] Other Important Information - Cash and cash equivalents increased to $6.4 million as of June 30, 2023, compared to $4.7 million on March 31, 2023, driven by equity offerings and improved cash management [37] - The company had only 73 full-time employees at the end of Q3, emphasizing a lean organizational structure [27] Q&A Session Summary Question: What are the expectations for future revenue growth? - Management expressed optimism about future revenue growth as the advertising market improves and highlighted the strong pipeline of partners and expanding distribution network [7][20] Question: How is the company addressing the current advertising market challenges? - The company is focusing on diversifying revenue sources, increasing efficiency, and reducing costs while maintaining a commitment to growth [23][24]