LiveXLive Media, Inc. (LIVX) Q2 2022 Earnings Call Transcript | The Motley Fool

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LiveXLive Media, Inc. (NASDAQ:LIVX)
Q2 2022 Earnings Call
Oct 28, 2021, 4:30 p.m. ET

Contents:

  • Prepared Remarks
  • Questions and Answers
  • Call Participants

Prepared Remarks:

Operator

Good afternoon, everyone, and welcome to the LiveOne Inc. fiscal 2022 Q2 earnings conference call. [Operator instructions] After today’s presentation, there will be an opportunity to ask questions. Please also note today’s event is being recorded.

At this time, I’d like to turn the conference call over to Michael Quartieri, chief financial officer. Sir, please go ahead.

Michael QuartieriChief Financial Officer

Thank you. Good afternoon, and welcome to LiveOne’s business update and financial results conference call for the company’s second quarter and six-month period ended September 30, 2021. Presenting on today’s call are Rob Ellin, CEO and chairman; Dermot McCormack, president; and myself, Mike Quartieri, executive vice president, and chief financial officer. I’d like to remind you that some of the statements made on today’s call are forward-looking and are based on current expectations, forecasts, and assumptions that involve various risks and uncertainties.

These statements include, but are not limited to, statements regarding the future performance of the company, including expected future financial results and expected future growth in the business. Actual results may differ materially from those discussed on this call for a variety of reasons. Please refer to the company’s filings with the SEC for information about factors, which could cause the company’s actual results to differ materially from these forward-looking statements, including those described in the company’s annual report on Form 10-K for the year ended December — sorry, March 31, 2021, quarterly report on Form 10-Q for the quarter ended June 30, 2021, and other SEC filings. You will find reconciliations of non-GAAP financial measures to the most comparable GAAP financial measures discussed today in the company’s earnings release, which is posted on its Investor Relations website at ir.liveone.com, and the company encourages you to periodically visit its IR website for important content.

The following discussion, including responses to your questions, contains time-sensitive information and reflects management’s view as of the date of this call, October 28, 2021. And except as required by law, the company does not undertake any obligation to update or revise this information after the date of this call. I’d like to highlight to investors that this call is being recorded. The company is making it available to investors and media via webcast, and a replay will be available on its website in the Investor Relations section shortly following the conclusion of the call.

Additionally, it is property of the company, and any redistribution, retransmission, or rebroadcast of the call or the webcast in any form without the company’s expressed written consent is strictly prohibited. Now, let me turn the call over to LiveOne CEO, Rob Ellin.

Rob EllinChief Executive Officer and Chairman

Thank you, Mike, and good afternoon, everyone, and thank you for joining us today on our fiscal 2022 second quarter business update and financial results call. We plan to keep our prepared remarks somewhat brief in favor of leaving more time for any Q&A. LiveOne team, again, has survived and thrived through the COVID-19 delta variance. — which necessity that we push all of our planned live events into Q3 and Q4, even without live events in Q2.

The LiveOne team delivered a record 60.7 million in revenue for the first six months of fiscal 2022, an increase of $35 million or 142% compared to the same period a year ago. Quite often, we have spoken of the unique flywheel business model of associated and complementary businesses and how the components create a synergistic offering to consumers to listen, watch, intend, engage and transact. Let me repeat that word transacts. We are going deeper down the funnel with our customers for further monetization through premium content and pay-per-view and live events, upselling membership packages, including merchandise NFPs and integrating consumer products that will have ownership positions.

Everyone connects. The model when fully optimized creates a unique opportunity to bridge and connect live events with digital offerings. And with the return of live music, our business model is poised to truly kick into high gear. We have multiple subsidiaries, multibillion-dollar addressable markets in each music subscription, live events, live streaming, OTT, specialty merchandising, and podcasting.

We are thrilled to see the return of live music events, and we expect to report record revenues for each of the next two quarters. Although we had an unfortunate and challenging weather condition, we held our first major live music festival springer ranking, music festival, autumn Equinox, which is the Midwest largest all electronic music vessel on October second and third in Chicago, and we sold 33,000 tickets. We signed 25,000 members. We currently have booked a lineup of over 100 live concerts and festivals featured over 300 artists performing over the next six months.

As I touch on shortly going forward, while all ticket purchases, all pay per views, all merchandise, and any of our live user paper view events will receive a paid one year paid membership that provides for discounts to future like in-person and pay-per-view events discounted merchandise and NFPs and the enormous amount of created music and podcast content. Our wholly owned subsidiary, PodcastOne continues to experience robust growth. The entire podcast team has done an outstanding job, both recruiting new entertainment podcasts as well as aggressively pursuing advertising and sponsorship deals. — podcast metrics continue to impress and grow has added over 2.48 billion podcast downloads in the trailing 12 months ending September 30th.

And its franchise of exclusive shows has grown to more than 235 with over 50 new podcasts now producing over 300 podcast episodes per week. We continue to grow our paid subscribers with our Slacker radio streaming audio service and now over 1.25 million paid subscribers. We had a keen eye on expanding the reach of Slacker, adding over 35,000 subscribers a month. As many of you may know, to a nine-year exclusive partnership with Tesla, a LiveXLive Slacker radio subscription is preinstalled as default radio in every Tesla car sold in North America, and LiveOne is paid directly by Tesla for those subscriptions.

The LiveXLive Slack app is pre-installed now in 85 other automobiles as well as across major cell carriers, Verizon, Sprint, and T-Mobile, which allows Slacker subscribers to listen in their cars as well as across their mobile devices. We are seeing compelling growth opportunities for Slacker by partnering with other automotive OEMs as a default radio service, especially outside the U.S. as well as the other white-label B2B partnerships through Android Automotive. Since launching pay-per-view, Pay-per-view one, our new subsidiary platform in May of 2020, we have generated over $26 million in pay-per-view related sales and live pay-per-view events.

As of October alone, pay-per-view live events and tickets sold more than 25,000 new subscribers and over 1 million live stream views. — coming off the outstanding success of social gross pay-per-view events in June, we look forward to owning and producing our own next hybrid pop culture franchise pay-per-view in the January 2022 quarter called Self Made KO. This event will come on boxing exhibitions, featuring women and prominent social media inputs and esports entertainment all buying for over 1 million in prices as well as a lineup of renowned music artists and bands. Social gloves drove over 136,000 pay per views in 136,000 members of LiveOne.

As many of you hopefully know, in…

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