LiveOne Inc, formerly LiveXLive Media Inc, is a premium internet network devoted to live music and music-related video content. The company has been building an online destination for music fans to enjoy live performances from music venues and music festivals around the world, such as Rock in Rio, Outside Lands Music and Arts Festival, and Hangout Music Festival, as well as original content, artist exclusives, and industry interviews. The Company operates mainly through three segments, PodcastOne, Slacker, and Media Group, with a majority of its revenue derived from the Slacker segment.
Performance Overview
For the first fiscal quarter ended June 30, 2024, LiveOne Inc (LVO, Financial) reported revenue of $33.1 million, surpassing the analyst estimate of $32.46 million. This marks a 19% increase compared to $27.8 million in the same period last year. The Audio Division, a significant contributor, posted a record revenue of $31.9 million, a 24% increase from $25.7 million in Q1 Fiscal 2024.
Financial Achievements and Challenges
Despite the revenue growth, LiveOne Inc (LVO, Financial) faced an operating loss of $0.8 million, up from a $0.3 million loss in the previous year. This increase in operating loss was primarily due to higher operating expenses. The net loss for the quarter was $1.6 million, translating to a loss per share of $0.02, aligning with the analyst estimate.
Key Financial Metrics
Adjusted EBITDA for Q1 Fiscal 2025 improved to $2.9 million from $2.2 million in Q1 Fiscal 2024. The Audio Division contributed significantly with an Adjusted EBITDA of $5.1 million, driven by improved Contribution Margin and reduced operating expenses.
| Three Months Ended | June 30, 2024 | June 30, 2023 |
|---|---|---|
| Revenue | $33,078 | $27,767 |
| Operating Income (Loss) | ($784) | ($255) |
| Net Income (Loss) | ($1,557) | ($515) |
| Adjusted EBITDA | $2,903 | $2,210 |
| Net Income (Loss) per Share | ($0.02) | ($0.01) |
Income Statement Highlights
LiveOne Inc (LVO, Financial) reported total operating expenses of $33.9 million, up from $28.0 million in the previous year. The increase was driven by higher costs of sales, which rose to $25.1 million from $19.6 million. Sales and marketing expenses decreased to $1.4 million from $1.9 million, while product development and general and administrative expenses remained relatively stable.
Balance Sheet and Cash Flow
As of June 30, 2024, LiveOne Inc (LVO, Financial) had total assets of $64.6 million, slightly up from $63.9 million as of March 31, 2024. The company's cash and cash equivalents stood at $6.2 million, down from $7.0 million. Total liabilities increased marginally to $58.0 million from $57.3 million.
CEO Commentary
"We are thrilled to announce another quarter of record growth, driven by our Audio Division’s ongoing momentum. With a robust pipeline and four newly signed partnerships, we are excited about our future prospects. Our strategic positioning and operational efficiencies have effectively prepared us to leverage emerging opportunities. As we remain focused on our long-term objectives, we are committed to maintaining our creator-first platform approach and catering to our superfans. Additionally, our continued company share repurchases underscore our belief in the intrinsic value of our shares and demonstrate alignment with our dedicated shareholders."
Conclusion
LiveOne Inc (LVO, Financial) has demonstrated strong revenue growth and improved Adjusted EBITDA, reflecting the company's strategic positioning and operational efficiencies. However, the increase in operating expenses and net loss highlights the challenges the company faces in managing costs. Investors will be keen to see how LiveOne Inc (LVO) navigates these challenges while capitalizing on its growth opportunities in the coming quarters.
Explore the complete 8-K earnings release (here) from LiveOne Inc for further details.
