Financial Highlights
- Consolidated Q2 Fiscal 2025 Revenue Reaches $32.6M, Year-to-Date Revenue at $65.7M
- Adjusted EBITDA* (excluding CPS) Stands at $3.3M for Q2 and $6.6M Year-to-Date
- Audio Division (Slacker Radio and PodcastOne PODC) Revenue Hits $31.7M in Q2 (+18% Year-Over-Year), totaling $63.3M Year-to-Date (+21% YoY)
Fiscal 2025 Guidance Maintained
- Projected Consolidated Revenue of $120M – $135M
- Estimated Adjusted EBITDA* between $8M – $15M
- Expected Audio Division Revenue of $110M – $120M
- Audio Division Adjusted EBITDA* Projection of $12M – $20M
Share Repurchase Program
- $12M Buyback Program Reaffirmed
- 4.4M Shares Repurchased out of ~94M Outstanding
- $6.2M Remaining in Buyback Program
PodcastOne PODC Ownership Increased
- LVO Raised Ownership in PodcastOne to 72%
- Acquisition of 583,000 PODC Shares at an Average Price of $1.77, Including 224,000 Shares This Quarter
Upcoming Investor Call Details
- Date: Thursday, November 7, 2024
- Time: 10:00 A.M. ET
- Format: Live Conference Call and Audio Webcast

LOS ANGELES, Nov. 07, 2024 (GLOBE NEWSWIRE) — LiveOne LVO, a recognized platform for music, entertainment, and technology, released its second fiscal quarter results for the period ending September 30, 2024 (“Q2 Fiscal 2025”).

LiveOne is currently exploring strategic alternatives to enhance shareholder value, with help from J.P. Morgan. Options could include strategic acquisitions, divestitures, mergers, sales, or other business combinations. However, there is no guarantee that these efforts will lead to a specific transaction or outcome in a set timeframe.

Q2 Fiscal 2025 Key Highlights

Paid memberships grew by 645,000, or 27%, compared to last year, totaling approximately 4.0 million members as of September 30, 2024, including free ad-supported accounts.**
PodcastOne ranked 12^th in PODTRAC’s Podcast Industry Top Publishers for September 2024, with a U.S. Unique Monthly Audience of ~5.4 million and global downloads and streams around ~16.2 million.

Q2 FY25 versus Q2 FY24 Results Summary (in $000’s, except per share; unaudited)

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Company Financials Show Mixed Results Amid Changing Market Conditions

Detailed Financial Performance Overview

	Three Months Ending				Six Months Ending
	September 30,		September 30,

Revenue	$	32,594	$	28,528

		$	65,672		$	56,295
Operating income (loss)	$	(1,400	)	$	(2,515	)	$	(2,186	)	$	(2,754	)
Total other income (expense)	$	(926	)	$	(5,433	)	$	(1,649	)	$	(5,610	)
Net income (loss)	$	(2,317	)	$	(7,927	)	$	(3,875	)	$	(8,422	)
Adjusted EBITDA*	$	2,885		$	2,785		$	5,788		$

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LiveOne Reports Strong Q2 Fiscal 2025 Performance with Revenue Growth

Financial Highlights and Future Outlook

For Q2 Fiscal 2025, LiveOne posted revenue of $32.6 million, marking a 14% increase compared to $28.5 million in the same quarter last year. The Audio Division saw revenue reach $31.7 million, an 18% rise from $26.9 million in Q2 Fiscal 2024.

The company’s Operating Loss for Q2 Fiscal 2025 was ($1.4) million, a notable improvement from an Operating Loss of ($2.5) million reported in Q2 Fiscal 2024. This $1.0 million reduction in Operating Loss was primarily due to decreased operating expenses.

Adjusted EBITDA for Q2 Fiscal 2025 improved slightly to $2.9 million, compared to $2.8 million in the same period last year. This total included an Audio Division Adjusted EBITDA of $5.4 million, a Media Division Adjusted EBITDA of ($0.8) million, and a Corporate Adjusted EBITDA of ($1.7) million. The Audio Division’s notable performance was attributed to enhanced Contribution Margin and lower operating costs.

Capital expenditures for Q2 amounted to approximately $0.6 million, driven largely by software development costs for LiveOne’s integrated music player.

Looking ahead, LiveOne maintains its fiscal guidance for the year ending March 31, 2025. The company expects consolidated revenue in the range of $120 million to $135 million, along with an Adjusted EBITDA between $8 million and $15 million. Specifically for the Audio Division, projected consolidated revenue is between $110 million and $120 million, with an Adjusted EBITDA of $12 million to $20 million.

Additionally, LiveOne’s management plans to hold a live conference call and audio webcast to discuss these results and provide a business update. This event will take place at 10:00 a.m. ET / 7:00 a.m. PT on Thursday, November 7, 2024.

Conference Call and Webcast Details:

WHEN: Thursday, November 7th
TIME: 10:00 AM ET / 7:00 AM PT
DIAL-IN (Toll-Free): (800) 715-9871
DIAL-IN NUMBER (Local): (646) 307-1963
REPLAY NUMBER: (800) 770-2030

WEBCAST – Access both the live event and replay via the Investor Relations section on LiveOne’s website at Events | LiveOne.

The webcast is also available at: https://events.q4inc.com/attendee/127231561

The timing, price, and number of shares repurchased under LiveOne’s stock repurchase program, which may also include shares from PodcastOne, are subject to management’s discretion. Factors influencing this decision include stock price and general market conditions. The repurchase program aligns with LiveOne’s capital allocation strategy, aimed at fostering business growth. While shares may be acquired intermittently through various methods in compliance with legal requirements, LiveOne is not obligated to purchase specific amounts and may alter the program as needed.

About LiveOne
Based in Los Angeles, CA, LiveOne (Nasdaq: LVO) is a creator-focused platform that delivers premium music, entertainment, and technology experiences worldwide through various memberships and events. Its subsidiaries include Slacker, PodcastOne PODC, PPVOne, CPS, LiveXLive, DayOne Music Publishing, Drumify, and Splitmind. LiveOne is accessible on multiple platforms including iOS, Android, Roku, and Spotify. For further information, please visit liveone.com or follow them on social media.

Forward-Looking Statements
This press release contains forward-looking statements, which may be identified by phrases such as “may,” “will,” or “expect.” Such statements involve uncertainties that could lead to actual results differing from those projected. Factors impacting these statements include LiveOne’s dependence on its largest customer, potential financing activities, and overall capability to attract and maintain users. The company also outlines its intentions regarding its stock repurchase program.

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LiveOne Faces Financial Challenges Amid Legal Disputes and Strategic Changes

LiveOne’s recent financial updates reveal a complex picture influenced by various challenges, including contractual disputes and evolving strategic partnerships.

Forward-looking statements from LiveOne are grounded in numerous uncertainties. These include the parameters surrounding share repurchases, the capacity of LiveOne to comply with financial covenants, and the effectiveness of its growth initiatives related to technology platforms. Concerns also extend to the company’s ability to manage debt, navigate legal disputes, and adapt to shifting economic conditions and competitive landscapes. For a comprehensive view, stakeholders can refer to LiveOne’s Annual Report on Form 10-K for the fiscal year ended March 31, 2024, submitted to the U.S. Securities and Exchange Commission (the “SEC”) on July 1, 2024. It’s important to note that LiveOne does not commit to updating these forward-looking statements unless legally mandated to do so, with these declarations subject to the safe-harbor provisions established by the Private Securities Litigation Reform Act of 1995.

** Note on Membership Count: LiveOne’s total paid members include individuals currently tied to a contractual dispute, leading to a lack of revenue recognition from these accounts. Additionally, the reported membership figures do not yet account for the recent renewal of LiveOne’s partnership with Tesla. LiveOne plans to disclose future results regarding efforts to transition Tesla drivers into direct customers by September 30, 2024.

* Understanding Non-GAAP Financial Metrics
LiveOne employs Contribution Margin (Loss) and Adjusted Earnings Before Interest, Tax, Depreciation, and Amortization (Adjusted EBITDA) to supplement its financial statements, which comply with U.S. Generally Accepted Accounting Principles (GAAP). These non-GAAP measures aren’t intended to replace standard performance metrics derived from GAAP but serve to provide a clearer understanding of operational performance, unaffected by non-operational variations.

Both Contribution Margin (Loss) and Adjusted EBITDA are used to assess LiveOne’s operational segments. The company believes presenting these metrics aids investors in understanding changes in results stemming from operations while filtering out non-operational influences. Notably, Adjusted EBITDA isn’t calculated per GAAP standards and has its limitations, such as not representing the periodic costs associated with revenue-generating assets. Investors should consider these measures alongside GAAP-defined performance metrics.

Contribution Margin (Loss) is defined as Revenue minus Cost of Sales, while Adjusted EBITDA is characterized as earnings before interest, income tax expense, depreciation, and amortization, and excludes specific non-recurring expenses and stock-based compensation. Management views these exceptional costs as non-indicative of core operating outcomes.

Currently, a quantitative reconciliation for projected Adjusted EBITDA for the full fiscal year 2025 cannot be provided due to the unpredictability and complexity surrounding acquisition-related charges and potential legal settlements. These items could significantly affect future GAAP results.

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

LiveOne Investor Relations Contact:
Liviakis Financial Communications, Inc.
(415) 389-4670
john@liviakis.com

Press Contact:
LiveOne
press@liveone.com

Financial Overview

The following tables summarize financial results for the three and six months ending September 30, 2024, and 2023.

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Financial Overview: Comparing 2024 and 2023

LiveOne , Inc.
Unaudited Consolidated Statement of Operations
(In thousands, except share and per share amounts)

Three Months Ended

Six Months Ended

September 30,

	2024			2023			2024			2023

Revenue:		$	32,594		$	28,528		$	65,672		$	56,295

Operating expenses:
Cost of sales			24,518			20,547			49,605			39,748
Sales and marketing			1,491			2,253

Company Financial Update: Key Insights into Operations and Expenses

Major Areas of Expenditure Revealed

	2,922		4,157
Product Development		1,160		1,439	2,231	2,685
General and Administrative		6,283		6,352	11,790	11,760
Impairment of Intangible Assets		–		–	176	–
Amortization of Intangible Assets		542		452

This summary reveals the company’s approach to managing its major expenses over several operational sectors, underscoring its commitment to innovation and effective administration.

Company Financials: Analyzing Losses and Expenses for Quarter

Key Financial Data Revealed

1,134		699
Total operating expenses	33,994		31,043		67,858		59,049
Loss from operations	(1,400	)	(2,515	)	(2,186	)	(2,754	)

Other Income and Expenses Overview


Other income (expense):
Interest expense, net	(808	)	(780	)	(1,667	)	(2,198	)

Conclusion: Understanding the Financial Landscape

With significant losses reported, further scrutiny of these financial statements can enhance understanding of the company’s operating challenges. Investors and analysts alike are closely monitoring these figures as they reflect larger economic trends and company-specific strategies for overcoming hurdles.“`html

Financial Update: Company’s Losses Narrow but Significant Expenses Persist

Analyzing the Latest Financial Results

(118 ) (4,653 ) 18 (3,412 ) Total other expense, net (926 ) (5,433 ) (1,649 ) (5,610 ) Loss before provision (benefit) for income taxes (2,326 ) (7,948 ) (3,835 ) (8,364 ) Provision (benefit) for income taxes (9 )

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LiveOne Reports Significant Financial Losses

Steep Declines in Earnings Strain Company’s Balance Sheet

Net loss		(2,317	)		(7,927	)		(3,875	)		(8,422	)
Net loss attributable to non-controlling interest		(458	)		(347	)		(846	)		(347	)
Net loss attributed to LiveOne	$	(1,859	)	$	(7,580	)	$	(3,029	)	$	(8,075	)

LiveOne has faced substantial challenges evident in their recent financial disclosures. Their net loss, which totaled (2,317), reflects a broader trend affecting many players in the digital entertainment space. As competition intensifies, the pressure to innovate remains high. Historically, companies like LiveOne have needed to adapt rapidly to market changes— and today’s financial results highlight the importance of sustainable strategies.“`html

LiveOne Reports Financial Performance and Balance Sheet Overview

Key Metrics Highlighted for September 30


Net loss per share – basic and diluted	$	(0.02	)	$	(0.09	)	$	(0.04	)	$	(0.11	)
Weighted average common shares – basic and diluted		94,658,182			87,222,168			94,605,055			87,097,201

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2024 Asset Overview Reveals Financial Health of Major Companies

A Closer Look at Current Assets in 2024 Financial Statements

LiveOne Inc. Consolidated Balance Sheets (Unaudited) (In thousands)

	September 30,	March 31,

2024			2024

Assets
Current Assets
Cash and cash equivalents	$	11,053		$	6,987
Restricted cash		30			155
Accounts receivable, net		14,079			13,205
Inventories		1,675			2,187
Prepaid expense and other current assets		2,138			1,801
Total Current Assets		28,975			24,335

Company Financials: A Close Look at Assets and Liabilities

Here’s a summary of the latest financial data detailing the company’s assets and liabilities as reported.


Property and equipment, net		3,749		3,646
Goodwill		23,379		23,379
Intangible assets, net		10,986		12,415
Other assets		854		88
Total Assets	$	67,943	$	63,863

Liabilities, Mezzanine Equity and Stockholders’ Equity (Deficit)
Current Liabilities
Accounts payable and accrued liabilities	$	29,575	$	26,953
Accrued royalties

Financial Overview: Current and Long-Term Liabilities Analysis

A Deep Dive into Liabilities

13,358		10,862
Notes payable, current portion	690		692
Deferred revenue	649		728
Senior secured line of credit	7,000		7,000
Derivative liabilities	–		607
Total Current Liabilities	51,272		46,842
Notes payable, net	431		771
Other long-term liabilities	9,317		9,354

A Deep Dive into Deferred Income Taxes and Total Liabilities

Understanding Deferred Income Taxes

Deferred income taxes 339 339

Total Liabilities Overview

Total Liabilities 61,359 57,306

Commitments and Contingencies

Commitments and Contingencies

Mezzanine Equity Explained

Mezzanine Equity Redeemable convertible preferred stock, $0.001 par value; 100,000 shares authorized; none and 5,000 shares issued and outstanding as of September 30, 2024 and March 31, 2024, respectively – 4,962

Stockholders’ Equity Analysis

Stockholders’ Equity (Deficit) Preferred stock, $0.001 par value; 10,000,000 shares authorized; 13,187 and 18,814 shares issued and outstanding as of September 30, 2024 and March 31, 2024, respectively 13,187 18,814 Common stock, $0.001 par value; 500,000,000 shares authorized; 94,578,077 and 88,627,420 shares issued and outstanding as of September 30, 2024 and December 31, 2024, net of treasury shares, respectively 95 92 Additional paid in capital 230,933

Analyzing LiveOne’s Financial Position: An Overview of Stockholders’ Deficit

	216,116
Treasury stock		(250	)		(4,782	)
Accumulated deficit		(248,623	)		(238,984	)
Total LiveOne’s Stockholders’ Deficit		(4,658	)		(8,744	)
Non-controlling interest		11,242			10,339
Total equity (deficit)		6,584			1,595
Total Liabilities, Mezzanine Equity and Stockholders’ Equity (Deficit)	$	67,943		$	63,863

LiveOne, Inc.: Unveiling Financial Insights through Adjusted EBITDA Analysis

LiveOne Inc.
Reconciliation of Non-GAAP Measure to GAAP Measure
Adjusted EBITDA* Reconciliation (Unaudited)
(In thousands)

Non-

Recurring

Net

Depreciation

Acquisition and

Other

(Benefit)

Income

and

Stock-Based

Realignment

(Income)

Provision

Adjusted

(Loss)

Amortization

Compensation

Costs (1)

Expense (2)

for Taxes

EBITDA*

Three Months Ended September 30, 2024

PodcastOne and Slacker Report Mixed Operations Results

Performance Overview


Operations – PodcastOne	$	(1,669	)	$	394	$	861	$	–	$	–	$	11	$	(403	)
Operations – Slacker		3,866			743		526		30		642		–		5,807
Operations – Media		(1,687	)		214		198

Concluding Thoughts

PodcastOne and Slacker’s recent operational results highlight the competitive nature of the podcasting and streaming industries. Despite the current struggles, these companies remain significant players in the media landscape.

Corporate Financial Review: A Closer Look at Recent Figures

Understanding Key Financial Metrics

Corporate	404			30			–			(841	)
Corporate		(2,827	)			2		706		207			254		(20	)		(1,678	)
Total	$	(2,317	)		$	1,353	$	2,291	$	641		$	926	$	(9	)	$	2,885

PodcastOne Financial Performance Revealed in Recent Reports

Financial Overview for Three Months Ended September 30, 2023

Operations – PodcastOne	$	(10,873)	)	$	253	$	854	$	413	$	9,447	$	–	$	94
Operations – Slacker		2,250			694		998		742		354		5,038
Operations – Media		3,168			294

Financial Review Highlights Key Corporate Metrics

	178			107		(4,308	)			–			(561	)
Corporate			(2,472	)		3			686			78		(60	)		(21	)	(1,786	)
Total		$	(7,927	)	$	1,244		$	2,716		$	1,340	$	5,433		$	(21	)

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PodcastOne Financial Overview: Six-Month Update Ending September 30, 2024

Key Metrics Reveal Growth and Strategic Moves

2,785

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Financial Performance Review of Operations: Insights and Trends

Non-

Recurring

Acquisition and

Other

(Benefit)

Net Income

Depreciation and

Stock-Based

Realignment

(Income)

Provision

Adjusted

(Loss)

Amortization

Compensation

Costs (1)

Expense (2)

for Taxes

EBITDA*

Six Months Ended September 30, 2024

Operations – PodcastOne

$	(3,036	)		$	1,013	$	1,254	$	38	$	–		$	11	$	(720	)
Operations – Slacker			7,218			1,493		1,032		176		1,313			–			11,231
Operations – Media			(3,077	)		431		517		600		60			–

Corporate Financial Performance for the Six Months Ending September 30, 2023

Examining Key Financial Figures

Corporate			(4,980)				3			1,188			229			276				29			(3,254)
Total		$	(3,875)			$	2,940		$	3,991		$	1,043		$	1,649			$	40		$	5,788

Six Months Ended September 30, 2023

In short, these figures give an overview of the corporate financial landscape as it stands halfway through the fiscal year. Notably, the negative and positive figures reflect an ongoing complexity in financial management. For stakeholders, understanding these metrics is essential to navigate the company’s future prospects effectively.

Financial Updates: PodcastOne and Slacker Operations Review

Assessing PodcastOne’s Financial Performance

Performance Overview of Slacker

Media Operations Fiscal Snapshot

Operations – PodcastOne	$	(11,083)	)	$	339	$	938	$	719	$	9,850		$	–	$	763
Operations – Slacker	$	5,831		$	1,408	$	1,214	$	874	$	102		$	–	$	9,429
Operations – Media	$	2,392		$	543	$	213	$	133	$	(4,952)	)	$	–	$	(1,671)	)

The financial performance of companies like PodcastOne, Slacker, and others continues to evolve as the digital media landscape grows more competitive. Understanding these metrics can provide insights into their operational health and future prospects.

Financial Insights: A Closer Look at Recent Accounting Adjustments

Understanding Non-Recurring Acquisition and Realignment Costs

Non-Recurring Acquisition and Realignment Costs consist of various expenses that are not expected to happen regularly. These include non-cash GAAP purchase accounting adjustments related to deferred revenue and costs, legal fees, accounting expenses, as well as employee severance payments. Furthermore, it covers third-party professional fees connected to acquisition activities and legal settlements pertinent to issues at businesses acquired before their purchase dates.

Breaking Down Other Income and Expenses

Other income and expenses primarily consist of interest expenses and changes in the fair value of derivative liabilities. These figures are documented in the statement of operations and factor into the reconciliation of Adjusted EBITDA to net loss.

		(5,562	)			8			1,229			130			610				58			(3,527	)
Total		$	(8,422	)		$	2,298		$	3,594		$	1,856		$	5,610			$	58		$	4,994

See the definition of Adjusted EBITDA under “About Non-GAAP Financial Measures” within this release.

Strong Financial Performance Continues for 2024

Key Metrics for Six Months Ending September 30, 2024, Show Notable Gains

LiveOne , Inc. Reconciliation of Non-GAAP Measure to GAAP Measure *Contribution Margin Reconciliation (Unaudited) (In thousands)**

	Three Months Ended
	September 30,
	2024			2023

Revenue:	$	32,594		$	28,528
Less:
Cost of sales		(24,518	)		(20,547	)
Amortization of developed technology		(691	)		(726	)
Gross Profit		7,385			7,255

Add back amortization of developed technology:		691

		726
Contribution Margin*		$	8,076			$	7,981

	Six Months Ended
	September 30,
	2024			2023

Revenue:	$	65,672		$	56,295
Less:
Cost of sales		(49,605	)		(39,748	)
Amortization of developed technology		(1,466	)		(1,473	)
Gross Profit		14,601			15,074

Financial Overview: Contribution Margin and Amortization Insights

Add back amortization of developed technology:			1,466				1,473
Contribution Margin*		$	16,067			$	16,547

See the definition of Contribution Margin under “About Non-GAAP Financial Measures” within this release.

LiveOne Announces Fiscal Q2 2025 Financial Performance

Daily Market Recaps (no fluff)

LiveOne Reports Strong Q2 Results Amid Strategic Alternatives Exploration