LiveOne Announces Record 6-Month Revenue of $60.7 Million, Up 142%, and Second

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LOS ANGELES, Oct. 28, 2021 /PRNewswire/ — LiveOne (Nasdaq: LVO), a global platform for livestream and on-demand audio, video, and podcast/vodcast content in music, comedy, and pop culture, and owner of LiveXLivePodcastOneSlacker RadioReact Presents, Gramophone Media and Custom Personalization Solutions (“CPS”), announced today operating results for its second fiscal quarter ended September 30, 2021 (“Q2 Fiscal 2022”).

For the six-month period ended September 30, 2021, revenue increased 142% year-over-year to a record $60.7 million compared to $25.1 million in the prior year, while Contribution Margin* increased 93% to $13.7 million versus $7.1 million in the prior year.

In Q2 Fiscal 2022, LiveOne posted revenue of $21.9 million, as well as Contribution Margin* of $5.9 million. On a U.S. GAAP basis, LiveOne recorded a loss from operations of ($9.7) million and a net loss of ($15.2) million. On a non-U.S. GAAP basis, Adjusted Operating Loss (“AOL”)* increased to ($2.1) million from ($1.4) million in Q2 Fiscal 2021.

LiveOne’s CEO and Chairman, Robert Ellin, commented, “With the return of live music events, we expect an increase in revenue from nearly every aspect of our flywheel – subscriptions, live ticket sales, live stream, pay-per-view, advertising, sponsorship, NFTs, and specialty merchandise.”

Mr. Ellin continued, “We continue to focus on the long-term objective of building and owning sustainable, valuable franchises in audio music, live music and events, podcasting/vodcasting, OTT, pay-per-view and live streaming.”

Recent and Q2 Fiscal 2022 Highlights

  • In October 2021, the company completed a corporate name change to “LiveOne, Inc.” from “LiveXLive Media, Inc.” and announced plans to rebrand its individual subsidiaries and businesses as the “ONE” brand.
  • Since launching its pay-per-view (“PPV”) platform in May 2020, LiveOne has generated approximately $26.1 million of PPV related sales in live and pay-per-view events.
  • In September 2021, LiveOne announced its intention to spin-out its existing PPV business, PPVOne, as a separate public company and its plan to distribute a portion of the new company’s equity to LiveOne’s stockholders, anticipated to take place by March 31, 2022.
  • LiveOne currently has a lineup of more than 100+ live shows featuring over 300 artists performing over the course of Fiscal 2022.
  • **Paid subscribers as of September 30, 2021 increased to more than 1,256,000, a net increase of approximately 320,000, as compared to 936,000 subscribers at September 30, 2020. Included in the total number as of September 30, 2021 and 2020 are certain subscribers which are the subject of a contractual dispute. LiveOne is currently not recognizing revenue related to these subscribers.
  • LiveOne’s wholly owned subsidiary PodcastOne had over 2.48 billion podcast downloads in the past twelve-months ended September 30, 2021 and its franchise of exclusive shows has now grown to more than 235 and now produces more than 300 podcast episodes per week. Total social media reach across the exclusive talent roster of PodcastOne now exceeds 280 million.
  • In October 2021, LiveOne completed its 6th acquisition by acquiring Gramophone Media, a brand development company comprised of boutique agencies, known for its innovative work discovering and managing international acts. The acquisition is expected to be immediately accretive to LiveOne’s earnings and strengthen LiveOne’s balance sheet.
  • LiveOne’s 24-hour linear OTT streaming channel reaches over 294 million people on Amazon Fire, Roku, Apple TV, SLING, Xumo, and ReachTV, Consumable TV streaming original content, artist interviews, concerts, festivals, ancillary event-related content, and short-form video content from around the world.
  • As previously announced in January 2021, with the assistance of J.P. Morgan, LiveOne is continuing a process to explore strategic alternatives in order to enhance shareholder value. Potential alternatives may include, among others, a strategic acquisition, divestiture, merger, sale or other form of business combination. There can be no assurance that LiveOne’s efforts will result in a specific transaction or any particular outcome or its timing.
  • Announced in December 2020, LiveOne’s board of directors authorized the repurchase up to two million shares of LiveOne’s outstanding common stock from time to time, subject to certain compliance with applicable laws and regulations.

Second Quarter 2022 and 2021 Results Summary (in $000’s, except per share; unaudited)



Three Months

Ended

September 30,

2021



Three Months

Ended

September 30,

2020


Revenue


$

21,924



$

14,559


Operating Loss


$

(9,667)



$

(7,126)


Adjusted Operating Loss*


$

(2,071)



$

(1,390)


Total Other Expense


$

(5,565)



$

(3,061)


Net Loss


$

(15,236)



$

(10,189)


Loss per share – basic and diluted


$

(0.19)



$

(0.15)


Second Quarter 2022 Results Summary Discussion

For Q2 Fiscal 2022, LiveOne posted revenue of $21.9 million versus $14.6 million in the prior year. The increase was largely due to the growth in advertising and sponsorship revenue driven by the acquisition of PodcastOne, merchandising revenue through the acquisition of CPS, as well as subscription revenue related to the growth in subscribers year over year.

Q2 Fiscal 2022 Operating Loss of ($9.7) million was higher as compared to a ($7.1) million Operating Loss in the quarter ended September 30, 2020 (“Q2 Fiscal 2021”). The $2.6 million increase was largely due to the addition of corporate personnel to support future growth and increased stock-based compensation.

Q2 Fiscal 2022 AOL* was ($2.1) million as compared to Q2 Fiscal 2021 AOL* of ($1.4) million. Q2 Fiscal 2022 AOL* was comprised of Operations AOI* of $1.2 million and Corporate AOL* of ($3.2) million. The Operations AOI* of $1.2 million was driven by Contribution Margin of $5.9 million, offset by operating expenses of $4.7 million.

Capital expenditures for Q2 Fiscal 2022 totaled approximately $0.9 million, which were driven by capitalized software costs associated with development of our integrated music player and pay-per-view services.

At September 30, 2021, LiveOne had $16.7 million in cash and cash equivalents, which includes restricted cash of $0.3 million.

LiveOne is maintaining its guidance for Fiscal 2022 of revenue of $115$125 million and reducing guidance for Fiscal 2022 Adjusted Operating Income* to $0$3 million (not including corporate overhead) due to impacts of the COVID-19 Delta variant on live events, inclement weather, and our increased investment in original and exclusive content and franchises, as well to continue an increased spend in marketing associated with driving new paid memberships.  

With respect to projected full year 2022 Adjusted Operating Income* from LiveOne’s Operations, 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 Operating Loss*. LiveOne expects that the variability of these items could have a potentially unpredictable, and potentially significant, impact on its future GAAP financial results.

About LiveOne, Inc.

Headquartered in Los Angeles, California, LiveOne, Inc. (NASDAQ: LVO) (the “Company”) is a global talent-first, interactive music, sports, and entertainment subscription platform delivering premium content and livestreams from the world’s top artists. LiveOne’s other major wholly-owned subsidiaries are LiveXLive, PPVOne, Slacker RadioReact Presents, Gramophone Media, Custom Personalization Solutions, and PodcastOne. LiveOne has streamed over 1,800 artists since January 2020, a library featuring close to 30 million songs, 500 expertly curated radio stations, 235 podcasts/vodcasts, hundreds of pay-per-views, personalized…

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