Release Date: November 07, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- LiveOne Inc (LVO, Financial) achieved record revenues of $65.7 million for the first six months, marking a 17% increase over the prior year.
- The company reported a significant partnership extension with Tesla, providing prominent space on Tesla's home screen and opportunities for cross-selling.
- LiveOne Inc (LVO) is actively expanding its B2B team and has announced a $24 million streaming partnership, with expectations to announce more deals soon.
- The podcast division is experiencing growth, with a run rate increase from $20 million to $50 million over four years and plans to add more podcasts.
- The company is actively buying back stock, having repurchased 4.5 million shares, and plans to continue buybacks, indicating confidence in its valuation.
Negative Points
- LiveOne Inc (LVO) reported a consolidated net loss of $2.7 million for Q2 fiscal '25.
- There is uncertainty regarding the conversion of Tesla users to paid subscribers, which could impact future revenues.
- The company faces challenges in the competitive podcast market, with high costs for acquiring large podcasts.
- General and administrative expenses increased significantly this quarter, partly due to stock-based compensation and audit fees.
- The market has reacted negatively to changes in the Tesla partnership, affecting the company's stock valuation.
Q & A Highlights
Q: How many paid subscribers do you have that are either going to be grandfathered in or that are not related to Tesla?
A: We can't give that number, but it's a percentage of the total number of subscribers. It's not a number that either Tesla or us are able to provide publicly. - Robert Ellin, CEO
Q: What percentage of your Tesla users listen to your digital radio for more than 10 minutes a day?
A: This week, 285,000 people used our service, and for this month, it's well over a million. The average usage is about 20 minutes, which is extremely high for the industry. - Robert Ellin, CEO
Q: Are you already integrated into TechNow, and has there been a meaningful impact yet to the subscriber base?
A: It's just beginning. We've started trials with TechNow, which has over 100 million users. It's a perfect fit for us, and both parties are excited about the partnership. - Robert Ellin, CEO
Q: How is the podcast business performing, and what are the expectations for the second half of the fiscal year?
A: We've added 49 new podcasts this year, adding almost one every two weeks. The podcast industry is heating up, and we have over 100 podcasts in our pipeline. We expect to grow from $50 million to $100 million over the next 24 months. - Robert Ellin, CEO
Q: How is management thinking about overhead in the short term given the expected shrinkage before recovery?
A: We're not making any changes yet because we're excited about the opportunity. We expect to convert subscribers and have decisions to make in the middle of the fourth quarter. - Robert Ellin, CEO
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
