LiveOne (Nasdaq: LVO) Issues Fiscal 2025 Revenue Guidance of $140 - $155M with $16 - $20M of Adjusted EBITDA*

Rhea-AI Summary

LiveOne (Nasdaq: LVO) forecasts its audio division, consisting of Slacker Radio and PodcastOne (Nasdaq: PODC), to combine for $130 - $140M of revenues with $20 - $25M EBITDA and over $17M of positive cash flow. The company anticipates adding over 1M subscribers and onboarding 20+ new podcasters. LiveOne also expands its stock repurchase program to $10M and is currently finalizing the restructuring of the merchandise business, slashing 75-100 staff, expected to result in $5 - $10m cost savings.

Financial Analyst

The recent announcement by LiveOne concerning its financial guidance presents a significant data point for the evaluation of the company's future performance. The projection of $130 - $140M in revenues with $20 - $25M EBITDA and over $17M of positive cash flow for the Audio Division, which includes Slacker Radio and PodcastOne, suggests a robust growth trajectory. This is further bolstered by the expectation of adding over 1M subscribers and onboarding 20+ new podcasters, indicating aggressive expansion in content and audience reach.

Additionally, the expansion of the stock repurchase program to $10M signals confidence in the company's valuation from management. Stock repurchase programs typically support the stock price by reducing supply and can be viewed as a positive signal to the market, especially when aligned with a sound capital allocation strategy. However, investors should note that such programs are discretionary and can be modified or discontinued based on changing business conditions or strategic priorities.

The restructuring of the merchandise business, which aims to achieve $5 - $10M in cost savings by reducing staff and focusing on key customers, demonstrates a strategic pivot towards efficiency and profitability. This move may have short-term costs associated with severance and restructuring but could result in improved margins over the long-term.

Investors should consider these developments in the context of the broader industry, where content platforms are fiercely competitive and subject to rapid changes in consumer preferences. LiveOne's focus on celebrity brands and its Music Publishing Division could differentiate it, but the success of such initiatives is not guaranteed. The company’s forward-looking statements are subject to the usual risks and uncertainties and as such, actual results could differ materially from management's preliminary expectations.

Industry Analyst

In the context of the digital media and entertainment industry, LiveOne's guidance reflects an aggressive pursuit of growth within a highly competitive market. The emphasis on organic growth within the Audio Division, without factoring in potential acquisitions or unannounced partnerships, suggests a strong underlying business model and operational execution.

The strategic decision to focus on celebrity brands and expand the Music Publishing Division is indicative of a pivot towards leveraging exclusive content to drive subscriber growth and engagement. This strategy is in line with industry trends where exclusivity and original content are increasingly important for differentiation and customer retention.

However, the industry is also characterized by high customer acquisition costs and a need for continuous investment in content and technology. LiveOne's planned reduction in workforce as part of its restructuring efforts could be a response to these industry pressures, aiming to reallocate resources more effectively towards growth areas.

Overall, while the guidance is optimistic, stakeholders should closely monitor the company's ability to execute on its strategic initiatives and maintain a competitive edge in a rapidly evolving digital landscape.

 -  Audio Division, consisting of Slacker Radio and PodcastOne (Nasdaq: PODC), forecasts to combine for $130 - $140M of revenues with $20 - $25M EBITDA* and over $17M of positive cash flow

- Anticipates LiveOne to add over 1M subscribers

- Expects PodcastOne to onboard 20+ new podcasters

- Expands LiveOne stock repurchase program to $10M

- Currently finalizing the restructuring of the merchandise business slashing 75-100 staff expected to result in $5 - $10m cost savings, with focus on key customers and expanding celebrity brands to maximize revenue and profitability

LOS ANGELES, CA, Dec. 19, 2023 (GLOBE NEWSWIRE) -- via NewMediaWire - LiveOne (Nasdaq: LVO), an award-winning, creator-first, music, entertainment and technology platform, announced today guidance for its fiscal year ending March 31, 2025, as well as certain other updates. LiveOne’s audio division consists of Slacker Radio and PodcastOne (Nasdaq: PODC). LiveOne owns 100% of Slacker Radio and ~80% of PodcastOne’s outstanding common stock.

Robert Ellin, Chairman and CEO of LiveOne, commented, "We are extremely excited to give our investors the first forward guidance for our fiscal year ending March 31, 2025. The guidance we released today is predominantly a reflection of organically growing our existing Audio Division and does not reflect any additional acquisitions or any unannounced potentially lucrative B2B partnerships currently in the pipeline or in advanced negotiations. Furthermore, we believe our initiatives into celebrity brands and our ever-expanding Music Publishing Division could have a material positive impact on our revenues in the near future."

LiveOne also recently raised revenue guidance for its fiscal year ending March 31, 2024 to $118M - $120M.

The timing, price and actual number of shares repurchased under the stock repurchase program will be at the discretion of LiveOne's management and will depend on a variety of factors, including stock price, general business and market conditions, and alternative investment opportunities. The repurchase program will continue to be executed consistent with LiveOne's capital allocation strategy, which will continue to prioritize growing LiveOne's business.

Under the stock repurchase program, repurchases can be made from time to time using a variety of methods, including open market purchases, all in compliance with the rules of the U.S. Securities and Exchange Commission and other applicable legal requirements. The repurchase program does not obligate LiveOne to acquire any particular amount of shares, and the program may be suspended or discontinued at any time at LiveOne's discretion. LiveOne will review the stock repurchase program periodically and may authorize adjustment of its terms and size.

The increase in the stock repurchase program, which may include the possibility of buying back shares of common stock of PodcastOne, is subject to approval by LiveOne’s board of directors and any other applicable approvals and consents, which LiveOne fully expects to promptly obtain.  

The anticipated financial results discussed in this press release are based on management's preliminary expectations. During the course of LiveOne’s and PodcastOne’s standard quarter-end and fiscal year-end closing procedures and review process, LiveOne and PodcastOne may identify items that would require it to make adjustments, which may be material, to the information presented above. As a result, the estimates above constitute forward-looking information and are subject to risks and uncertainties, including possible adjustments to preliminary financial results.

About LiveOne, Inc.
Headquartered in Los Angeles, California, LiveOne, Inc. (Nasdaq: LVO) (the “Company”) is an award-winning, creator-first, music, entertainment, and technology platform focused on delivering premium experiences and content worldwide through memberships and live and virtual events. The Company's subsidiaries include Slacker Radio, PodcastOne (Nasdaq: PODC), PPVOne, Palm Beach Records, CPS, LiveXLive, DayOne Music Publishing, Drumify and Splitmind. LiveOne is available on iOS, Android, Roku, Apple TV, Spotify, Samsung, Amazon Fire, Android TV, and through STIRR’s OTT applications. For more information, visit liveone.com and follow us on Facebook, Instagram, TikTok, YouTube and Twitter at @liveone. For more investor information, please visit ir.liveone.com.

About PodcastOne
PodcastOne (Nasdaq: PODC) is a Los Angeles based podcast network founded in 2012 by Kit Gray and Norm Pattiz providing creators and advertisers with a full 360-degree solution in sales, marketing, public relations, production, and distribution delivering over 2.1 billion downloads per year with a community of 250 of the top podcasters, including Adam Carolla, Kaitlyn Bristowe, Jordan Harbinger, LadyGang, and A&E's Cold Case Files. PodcastOne has built a distribution network reaching over 1 billion listeners a month across all of its own properties, LiveOne (Nasdaq: LVO), Spotify, Apple Podcasts, iHeartRadio, Samsung and over 150 shows exclusively available in Tesla vehicles. PodcastOne is also the parent company of LaunchpadOne, an innovative self-serve platform developed to launch, host, distribute and monetize independent user-generated podcasts. For more information, visit podcastone.com and follow us on Facebook, Instagram, YouTube and Twitter at @podcastone.

Forward-Looking Statements
All statements other than statements of historical facts contained in this press release are “forward-looking statements,” which may often, but not always, be identified by the use of such words as “may,” “might,” “will,” “will likely result,” “would,” “should,” “estimate,” “plan,” “project,” “forecast,” “intend,” “expect,” “anticipate,” “believe,” “seek,” “continue,” “target” or the negative of such terms or other similar expressions. These statements involve known and unknown risks, uncertainties and other factors, which may cause actual results, performance or achievements to differ materially from those expressed or implied by such statements, including: the Company’s reliance on one key customer for a substantial percentage of its revenue; the Company’s ability to consummate any proposed financing, acquisition, spin-out, special dividend, merger, distribution or transaction, the timing of the consummation of any such proposed event, including the risks that a condition to the consummation of any such event would not be satisfied within the expected timeframe or at all, or that the consummation of any proposed financing, acquisition, spin-out, merger, special dividend, distribution or transaction will not occur or whether any such event will enhance shareholder value; the Company’s ability to continue as a going concern; the Company’s ability to attract, maintain and increase the number of its users and paid members; the Company identifying, acquiring, securing and developing content; the Company’s intent to repurchase shares of its and PodcastOne’s common stock from time to time under its announced stock repurchase program and the timing, price, and quantity of repurchases, if any, under the program; the Company’s ability to maintain compliance with certain debt covenants; the Company successfully implementing its growth strategy, including relating to its technology platforms and applications; management’s relationships with industry stakeholders; the effects of the global Covid-19 pandemic; uncertain and unfavorable outcomes in legal proceedings; changes in economic conditions; competition; risks and uncertainties applicable to the businesses of the Company’s subsidiaries; and other risks, uncertainties and factors including, but not limited to, those described in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2023, filed with the U.S. Securities and Exchange Commission (the “SEC”) on June 29, 2023, Quarterly Report on Form 10-Q for the quarter year ended September 30, 2023, filed with the SEC on November 20, 2023, and in the Company’s other filings and submissions with the SEC. These forward-looking statements speak only as of the date hereof, and the Company disclaims any obligation to update these statements, except as may be required by law. The Company intends that all forward-looking statements be subject to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995.

* About Non-GAAP Financial Measures  
To supplement our consolidated financial statements, which are prepared and presented in accordance with the accounting principles generally accepted in the United States of America ("GAAP"), we present Contribution Margin (Loss) and Adjusted Earnings Before Interest Tax Depreciation and Amortization ("Adjusted EBITDA"), which are non-GAAP financial measures, as measures of our performance. The presentation of these non-GAAP financial measures is not intended to be considered in isolation from, or as a substitute for, or superior to, operating loss and or net income (loss) or any other performance measures derived in accordance with GAAP or as an alternative to net cash provided by operating activities or any other measures of our cash flows or liquidity.
We use Contribution Margin (Loss) and Adjusted EBITDA to evaluate the performance of our operating segment. We believe that information about these non-GAAP financial measures assists investors by allowing them to evaluate changes in the operating results of our business separate from non-operational factors that affect operating income (loss) and net income (loss), thus providing insights into both operations and the other factors that affect reported results. Adjusted EBITDA is not calculated or presented in accordance with GAAP. A limitation of the use of Adjusted EBITDA as a performance measure is that it does not reflect the periodic costs of certain amortizing assets used in generating revenue in our business. Accordingly, Adjusted EBITDA should be considered in addition to, and not as a substitute for operating income (loss), net income (loss), and other measures of financial performance reported in accordance with GAAP. Furthermore, this measure may vary among other companies; thus, Adjusted EBITDA as presented herein may not be comparable to similarly titled measures of other companies.
  
Contribution Margin (Loss) is defined as Revenue less Cost of Sales. Adjusted EBITDA is defined as earnings before interest, other (income) expense, income tax expense, depreciation and amortization and before (a) non-cash GAAP purchase accounting adjustments for certain deferred revenue and costs, (b) legal, accounting and other professional fees directly attributable to acquisition activity, (c) employee severance payments and third party professional fees directly attributable to acquisition or corporate realignment activities, (d) certain non-recurring expenses associated with legal settlements or reserves for legal settlements in the period that pertain to historical matters that existed at acquired companies prior to their purchase date and a one-time minimum guarantee to effectively terminate a live events distribution agreement post COVID-19, (e) depreciation and amortization (including goodwill impairment, if any), and (f) certain stock-based compensation expense. Management does not consider these costs to be indicative of our core operating results.

With respect to projected full year 2024 Adjusted EBITDA, a quantitative reconciliation is not available without unreasonable efforts due to the high variability, complexity and low visibility with respect to purchase accounting adjustments, acquisition-related charges and legal settlement reserves excluded from Adjusted EBITDA. We expect that the variability of these items to have a potentially unpredictable, and potentially significant, impact on our future GAAP financial results.

For more information on these non-GAAP financial measures, please see the tables entitled “Reconciliation of Non-GAAP Measure to GAAP Measure” included at the end of this release.  

LiveOne IR Contact:
Kirin Smith
PCG Advisory
(646) 823-8656
ksmith@pcgadvisory.com

Press Contact:
LiveOne
press@liveone.com

For PodcastOne
310.246.4600
Susan@Guttmanpr.com

What are LiveOne's revenue forecasts for its audio division?

LiveOne forecasts its audio division to combine for $130 - $140M of revenues.

What is LiveOne's EBITDA forecast for its audio division?

LiveOne forecasts its audio division to have $20 - $25M EBITDA.

What is LiveOne's cash flow forecast for its audio division?

LiveOne forecasts its audio division to have over $17M of positive cash flow.

How many new subscribers does LiveOne anticipate adding?

LiveOne anticipates adding over 1M subscribers.

How many new podcasters does PodcastOne anticipate onboarding?

PodcastOne anticipates onboarding 20+ new podcasters.

What is the size of LiveOne's expanded stock repurchase program?

LiveOne expands its stock repurchase program to $10M.

What is LiveOne doing to maximize revenue and profitability?

LiveOne is finalizing the restructuring of the merchandise business, slashing 75-100 staff, expected to result in $5 - $10m cost savings, with a focus on key customers and expanding celebrity brands.