Company Overview - LiveOne is a creator-first music, entertainment, and technology platform headquartered in Los Angeles, CA, focused on delivering premium experiences and content worldwide through memberships and live and virtual events [2] - The company operates several subsidiaries, including Slacker, PodcastOne, PPVOne, CPS, LiveXLive, DayOne Music Publishing, Drumify, and Splitmind [2] - LiveOne's services are accessible on various platforms, including iOS, Android, Roku, Apple TV, Spotify, Samsung, Amazon Fire, Android TV, and STIRR's OTT applications [2] Recent Developments - LiveOne announced the addition of the Emmy-winning documentary series "Before the Fame" to its original IP slate, which aims to provide viewers with an intimate journey through the early days of iconic figures in sports, music, and entertainment [1][5] - Robert Ellin, Chairman and CEO of LiveOne, expressed excitement about this addition, indicating that it will resonate well with viewers [1]

Core Insights - LiveOne has announced the addition of the Emmy-winning documentary series "Before the Fame" to its original content lineup, which focuses on the early lives of iconic figures in sports, music, and entertainment [1] Company Overview - LiveOne is headquartered in Los Angeles, CA, and operates as a creator-first music, entertainment, and technology platform, delivering premium experiences and content globally through memberships and live and virtual events [2] - The company's subsidiaries include Slacker, PodcastOne, PPVOne, CPS, LiveXLive, DayOne Music Publishing, Drumify, and Splitmind, and it is accessible on various platforms including iOS, Android, Roku, Apple TV, Spotify, Samsung, Amazon Fire, and Android TV [2] Content Strategy - The addition of "Before the Fame" reflects LiveOne's strategy to enhance its original content offerings, aiming to attract viewers by providing intimate narratives of renowned personalities [1][5]

Core Points - LiveOne will host a VIP shareholder update on March 17, 2025, at the Montage Hotel Laguna Beach [1] - The company will participate in the 37th Annual ROTH Conference from March 16-18, 2025, at the Laguna Cliffs Marriott Resort & Spa [1][2] - CEO Robert Ellin will be available for one-on-one investor meetings during the conference [2] - LiveOne aims to share its vision and strategy with shareholders and the investment community [2] Company Overview - LiveOne is headquartered in Los Angeles, CA, and operates as a creator-first music, entertainment, and technology platform [3] - The company focuses on delivering premium experiences and content worldwide through memberships and live and virtual events [3] - LiveOne's subsidiaries include Slacker, PodcastOne, PPVOne, CPS, LiveXLive, DayOne Music Publishing, Drumify, and Splitmind [3] - The platform is accessible on various devices including iOS, Android, Roku, Apple TV, Spotify, and Amazon Fire [3] Financial Insights - The company plans to provide updates on its revenue model, M&A strategy, and B2B partnerships [5] - LiveOne is restructuring its balance sheet with expected cost savings of over $30 million [5] - The company has acquired 400,000 additional shares and intends to acquire 450,000 shares of PodcastOne [5]

Company Overview - LiveOne, headquartered in Los Angeles, CA, is a creator-first music, entertainment, and technology platform that focuses on delivering premium experiences and content worldwide through memberships and live and virtual events [2] Key Metrics - LiveOne has surpassed 1.15 million subscribers and ad-supported users, indicating significant growth in its user base [1] - The company has experienced a 120% increase in its user metrics since January 1, 2025 [1] - Daily listening among Tesla owners averages 50 minutes, with 1 million Tesla owners converted to the platform [1] Marketing and Growth Strategy - AI-driven marketing efforts are playing a crucial role in driving user conversion and expanding the database [1]

Core Insights - LiveOne has surpassed 1,000,000 subscribers and is experiencing growth in its B2B partnership pipeline, targeting a total addressable market (TAM) exceeding $13 billion [1][2] - The company has reported a 100%+ increase in combined paid and ad-supported subscribers since January 1 [5] - LiveOne has converted over 900,000 Tesla vehicles, representing more than 45% of the total [5] - There is a month-over-month increase of over 30% in listening on Telly [5] Company Overview - LiveOne is headquartered in Los Angeles, CA, and operates as a creator-first music, entertainment, and technology platform [2] - The company offers premium experiences and content through memberships and live and virtual events, with subsidiaries including Slacker, PodcastOne, and LiveXLive [2] - LiveOne's services are accessible on various platforms, including iOS, Android, Roku, and Spotify [2]

Core Insights - LiveOne has promoted Ryan Carhart to Chief Financial Officer, effective February 19, 2025, highlighting his strong financial discipline and relationships with analysts and bankers [1] - The company anticipates an additional $13 million in cost savings due to immediate actions taken by the new CFO, aiming for total cash savings exceeding $23 million [1] - LiveOne has successfully paid down $3.7 million of its $7 million loan from East West Bank and is in the process of refinancing the remaining debt to secure growth capital [1] Company Overview - LiveOne is a creator-first music, entertainment, and technology platform headquartered in Los Angeles, CA, with a focus on delivering premium experiences through memberships and events [2] - The company's subsidiaries include PodcastOne, Slacker, LiveXLive, and others, and it operates across various platforms including iOS, Android, and Roku [2] PodcastOne Insights - PodcastOne is a leading podcast platform with over 3.9 billion total downloads and a community of 200 top podcasters [3] - The platform has built a distribution network that reaches over 1 billion monthly impressions across channels like YouTube and Spotify [3]

Core Viewpoint - LiveOne, Inc. (LVO) reported a wider GAAP loss in Q3 fiscal 2025, with a loss of 6 cents per share compared to a loss of 3 cents in the previous year, missing the consensus estimate of a 3-cent loss [1][2] Financial Performance - Revenues decreased by 5.8% year over year to $29.4 million, missing the consensus mark by 9.9% [2] - Adjusted non-GAAP EBITDA was $1.5 million, down 53.5%, while the Audio Division's non-GAAP adjusted EBITDA reached $3.6 million [6] - Operating loss totaled $5.1 million, compared to a loss of $0.8 million in the prior-year quarter, primarily due to revenue decline from the Audio Division [6] Business Developments - LVO signed five new deals in Q3, adding over $44 million in revenues, including a $25 million partnership with a Fortune 500 media conglomerate and a $16.5 million deal with Amazon [2][3] - The company anticipates finalizing at least two more partnerships by year-end, with a strong pipeline of over 70 B2B partnerships in various stages of development [3] Audio Division Highlights - The Audio business, including Slacker Radio and PodcastOne, generated $90 million in revenues over the past nine months, marking a historic milestone [4] - The total number of paid and monthly active ad-supported users surpassed 800,000 as of January 2025 [4][5] Outlook and Guidance - For fiscal 2025, LVO revised its revenue guidance to $112-$120 million, down from $120-$135 million, and adjusted EBITDA forecast to $6-$10 million from $8-$15 million [8] - Within the Audio Division, revenues are now expected to be between $106 million and $115 million, slightly reduced from the prior estimate of $110-$120 million, while the adjusted EBITDA target remains unchanged at $12-$20 million [9] Stock Performance - LVO currently holds a Zacks Rank 3 (Hold), with shares losing 18.6% over the past year, contrasting with the Zacks Audio Video Production industry's growth of 32.2% [10]

Revenue Performance - For the three months ended December 31, 2024, the company reported revenue of $29.4 million, a decrease from $31.2 million in the same period of 2023[169]. - Revenue decreased by $1.8 million, or 6%, to $29.4 million for the three months ended December 31, 2024, compared to $31.2 million for the same period in 2023[187]. - Total revenue for the nine months ended December 31, 2024, was $95.1 million, an increase of $7.6 million, or 9%, compared to $87.5 million for the same period in 2023[225]. - Revenue for the nine months ended December 31, 2024, was $95,117 thousand, an increase from $87,541 thousand in 2023, reflecting a growth of approximately 8.9%[268]. - Membership revenue increased by $4.8 million, or 8%, to $52.6 million for the nine months ended December 31, 2024, driven by member growth with the largest OEM customer[226]. - Advertising revenue increased by $6.1 million, or 19%, to $38.2 million for the nine months ended December 31, 2024, primarily due to growth at PodcastOne[227]. - Media Group revenue decreased by $1.6 million, or 40%, to $2.4 million for the three months ended December 31, 2024, primarily due to a reduction in merchandising revenue[216]. Customer Concentration - The company's largest OEM customer accounted for 46% of consolidated revenue for the quarter ended December 31, 2024, down from 49% in 2023[182]. - The company reported total revenue from the OEM customer of $13.5 million for the three months ended December 31, 2024, down from $15.5 million in 2023[169]. - Membership services revenue fell by $2.6 million, or 15%, to $14.3 million, primarily due to changes in terms with the largest OEM customer[188]. - Revenue decreased by $2.5 million, or 15%, to $14.4 million for the three months ended December 31, 2024, primarily due to a change in revenue model with the largest OEM customer[211]. Operating Performance - Net loss attributed to LiveOne increased to $5.2 million for the three months ended December 31, 2024, compared to a net loss of $1.6 million for the same period in 2023[186]. - Operating loss decreased by $1.4 million, or 53%, to $1.2 million for the Audio Group operations, reflecting improved revenue performance[208]. - Adjusted EBITDA decreased by $2.5 million, or 37%, to $4.3 million for the three months ended December 31, 2024, compared to $6.8 million for the same period in 2023[213]. - Operating loss for the nine months ended December 31, 2024, was $7.3 million, compared to a loss of $3.5 million for the same period in 2023[223]. - The company incurred a net loss of $9.5 million for the nine months ended December 31, 2024, with cash provided by operating activities amounting to $10.6 million during the same period[270]. Expenses and Costs - Total operating expenses rose by $2.6 million, or 8%, to $34.6 million, with significant increases in impairment of intangible assets by $3.7 million[197]. - Sales and marketing expenses increased by $0.3 million, or 16%, to $1.8 million, driven by higher employee costs[198]. - Product development expenses rose by $0.4 million, or 61%, to $1.1 million, attributed to increased employee costs[199]. - Impairment of intangible assets surged to $3.8 million, a significant increase of 3210% compared to $0.1 million in the prior year[201]. - Total cost of sales increased by $8.9 million, or 14%, to $71.9 million for the nine months ended December 31, 2024, compared to $63.0 million for the same period in 2023[231]. Strategic Initiatives - The company plans to expand internationally, incurring significant upfront expenses associated with growth opportunities in Europe, Asia Pacific, and Latin America[183]. - The company aims to convert OEM drivers to direct subscribers of the LiveOne app, which is expected to create a meaningful upside opportunity[171]. - The company announced a change in its relationship with its largest OEM customer, which may significantly impact liquidity and cash flows beyond December 31, 2024[272]. - The company is exploring options to extend or refinance its senior secured line of credit to improve liquidity[273]. - The company plans to raise up to $150 million through a universal shelf Registration Statement filed with the SEC, which is effective until February 17, 2025[280]. Financial Position - As of December 31, 2024, the company had a working capital deficiency of $18.1 million, raising substantial doubt about its ability to continue as a going concern[270]. - The company has a senior secured line of credit of $4.3 million and additional loans totaling $1 million as of December 31, 2024[269]. - The company has a minimum cash deposit requirement of $5 million with the Senior Lender as part of the 2025 Business Loan Agreement[275]. - As of December 31, 2024, the company was in compliance with the covenants under the Capchase Loan and the ABL Credit Facility[288].

Financial Data and Key Metrics Changes - The company achieved record revenues of $95 million for the first nine months and $29 million for the quarter, indicating strong performance despite challenges [9] - The cash position increased by $4 million to almost $11 million after paying off $3 million to East West Bank [18] Business Line Data and Key Metrics Changes - The audio business, including Slacker Radio and PodcastOne, generated $90 million in revenues for the first time in the company's history, with an adjusted EBITDA of $14.1 million for the nine months [9] - PodcastOne achieved record revenues and traffic for the quarter, with a guidance of $51 million in revenues and positive EBITDA for the year [20][21] Market Data and Key Metrics Changes - The partnership with Tesla resulted in over 800,000 new users, representing 40% of the total pool of 2 million Tesla cars in North America [15][36] - The company signed five B2B deals in the last 90 days, adding over $44 million in revenues, including significant contracts with a Fortune 500 media conglomerate and Amazon [10] Company Strategy and Development Direction - The company is pivoting its business model to leverage partnerships and deliver its music platform to large user bases through B2B deals [17] - A stock buyback program of $12 million has been initiated, with $6.2 million remaining, reflecting management's confidence in the company's future [17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, stating that this is the first time the company has the opportunity to become a multibillion-dollar company within the next 24 to 36 months [84] - The management acknowledged the challenges faced but emphasized the transformative potential of recent partnerships and the strong performance of the audio business [8][82] Other Important Information - The company is exploring M&A opportunities with multiple bankers, including JPMorgan, to enhance its business and unlock additional value [22] - The publishing business grew by approximately 100%, with a 1 song contributing to potential significant revenues [72] Q&A Session Summary Question: What is the expected ARPU going forward? - Management indicated that there is an opportunity to raise prices significantly, especially with the recent changes involving Tesla [25][27] Question: How does the new Tesla service work for new customers? - New Tesla customers have the option to choose ad-supported or subscription services, with a significant number of free ad-supported subscribers already signed up [30][32] Question: Why isn't the gross margin lower given the costs associated with new subscribers? - Management explained that the ad-supported service just launched, and the costs associated with it are not yet fully reflected in the margins [64][66] Question: How close is the company to seeing revenue from sources other than Slacker and PodcastOne? - Management highlighted growth in the publishing business and the launch of new products, indicating a positive trajectory for additional revenue streams [72][73]

Revenue Performance - LiveOne reported record revenues of $95.1 million for the nine months ended December 31, 2024, compared to $87.5 million for the same period in the prior year, representing an increase of 8.5%[1][5] - The Audio Division achieved record revenue of $90.6 million, a 13% year-over-year increase, with Q3 Fiscal 2025 revenue at $27.1 million, down 1% from $27.3 million in Q3 Fiscal 2024[3][6] - Revenue for the three months ended December 31, 2024, was $29,445 million, a decrease of 5.7% compared to $31,245 million for the same period in 2023[28] Operating Loss and Expenses - LiveOne's Q3 Fiscal 2025 operating loss was $5.1 million, compared to a loss of $0.8 million in Q3 Fiscal 2024, primarily due to decreased revenue from the Audio Division[7] - Total operating expenses for the three months ended December 31, 2024, were $34,558 million, an increase of 7.9% from $31,998 million in the same period in 2023[28] Net Loss and Financial Position - Net loss for the three months ended December 31, 2024, was $5,638 million, compared to a net loss of $2,224 million for the same period in 2023, representing an increase in loss of 153.5%[28] - Net loss attributable to LiveOne for the three months ended December 31, 2024, was $5,233 million, compared to a net loss of $1,574 million for the same period in 2023[28] - The company reported a net loss per share of $0.06 for the three months ended December 31, 2024, compared to a net loss per share of $0.03 for the same period in 2023[28] Cash Position and Assets - LiveOne's cash position was $10.9 million as of December 31, 2024, with $11 million in cost savings achieved through restructuring efforts[3] - Cash and cash equivalents as of December 31, 2024, were $10,854 million, an increase from $6,987 million as of March 31, 2024[30] - Total assets decreased to $56,216 million as of December 31, 2024, from $63,863 million as of March 31, 2024[30] - Total liabilities decreased to $55,087 million as of December 31, 2024, from $57,306 million as of March 31, 2024[30] Subscriber Growth and Business Development - The company has 800,000 Tesla subscribers, including over 475,000 ad-supported users, with a 130% increase in overall direct-billed subscribers since October 2024[12] - LiveOne closed 5 B2B deals in the quarter and expects to close 2 or more by year-end, with over 70 deals in the pipeline[3] Guidance and Future Outlook - LiveOne updated its fiscal year 2025 guidance to consolidated revenue of $112 million to $120 million and Adjusted EBITDA of $6 million to $10 million[10] Podcast Performance - PodcastOne ranked in the Top 10 in PODTRAC's Podcast Industry Top Publishers Rankings for January 2025, with a U.S. unique monthly audience of approximately 5.2 million[4] Adjusted EBITDA - Adjusted EBITDA for Q3 Fiscal 2025 was $1.5 million, down from $3.3 million in Q3 Fiscal 2024, with Audio Division Adjusted EBITDA at $3.6 million[8] Contribution Margin - Contribution margin for the three months ended December 31, 2024, was $7,153 million, down from $7,978 million in the same period in 2023, reflecting a decrease of 10.3%[36] Shareholder Returns - The company reaffirmed its $12 million stock buyback program, with $6.2 million remaining[3] Share Count - Weighted average common shares outstanding for the three months ended December 31, 2024, were 95,501,753, compared to 87,882,364 for the same period in 2023[28]