- Maintains Guidance to Achieve Positive Adjusted EBITDA*
in Current Q1 Fiscal 2023 and Revenue Guidance for FY 2023 of
Between $125 - $140 Million
- Has Repurchased 500K
Shares of under its Announced 2 Million Stock Repurchase
Program
- Currently Has Cash and Cash Equivalents Totaling
Approximately $14 Million
LOS ANGELES, May 19, 2022 /PRNewswire/ -- LiveOne (Nasdaq:
LVO), a creator-first, music, entertainment, and technology
platform focused on delivering premium experiences and content
worldwide through memberships and live and virtual events,
announced today anticipated further cost and expense reductions and
certain updated financial guidance.
As part of LiveOne's plan to focus on generating cash from
operations on a consolidated basis, LiveOne is implementing
additional cost and expense reductions from both operations and
corporate overhead which is anticipated to increase the previously
implemented $14 million of annual
cost savings to a total of over $20
million in its fiscal year ending March 31, 2012 ("Fiscal 2023").
LiveOne has recently repurchased 500,000 shares of its common
stock under its previously announced stock repurchase program.
Repurchases of up to 2,000,000 of LiveOne's shares of common stock
have been previously authorized by its board of directors. The
authorization to repurchase will expire on January 31, 2023.
LiveOne's Chairman and CEO, Robert
Ellin, commented, "We continue to consolidate our operations
and remain focused on capitalizing upon our significant revenue
growth over the past two years by planning to achieve positive
Adjusted EBITDA* in both the current Q1 Fiscal 2023, as well as
full-year Fiscal 2023."
Mr. Ellin continued, "Our wholly owned PodcastOne and
Slacker Radio subsidiaries are operating at record levels, both in
terms of revenue and EBITDA. We will continue to focus on growing
memberships, business of our subsidiaries, sponsor-backed original
programming, B-to-B opportunities, gamification and our NFT
platform, each of which may add to Adjusted EBITDA."
The timing, price and actual number of shares repurchased under
the Company's stock repurchase program will be at the discretion of
LiveOne's management and will depend on a variety of factors,
including stock price, general business and market conditions, and
alternative investment opportunities.
About LiveOne, Inc.
Headquartered in Los Angeles, California, LiveOne,
Inc. (NASDAQ: LVO) (the "Company") is an award-winning,
creator-first, music, entertainment and technology platform focused
on delivering premium experiences and content worldwide through
memberships and live and virtual events. As of April 25, 2022, the Company has accrued a paid
and free membership base of over 2.26 million**, streamed over
2,900 artists, has a library of 30 million songs, 600 curated radio
stations, nearly 270 podcasts/vodcasts, hundreds of pay-per-views,
personalized merchandise, released music-related NFTs, and created
a valuable connection between fans, brands, and bands. The
Company's wholly-owned subsidiaries include Slacker
Radio, React Presents, Gramophone Media, Palm Beach
Records, Custom Personalization Solutions, LiveXLive, PPVOne
and PodcastOne, which generates more than 2.48 billion
downloads per year and 300+ episodes distributed per week across
its stable of top-rated podcasts. LiveOne is available on iOS,
Android, Roku, Apple TV, Amazon Fire, and through OTT, STIRR, and
XUMO. For more information, visit www.liveone.com and
follow us on Facebook, Instagram, TikTok, and
Twitter at @liveone.
* About Non-GAAP Financial Measures
To supplement our
consolidated financial statements, which are prepared and presented
in accordance with the accounting principles generally accepted in
the United States of America
("GAAP"), we present Contribution Margin (Loss) and Adjusted
Earnings Before Interest Tax Depreciation and Amortization
("Adjusted EBITDA"), which are non-GAAP financial measures, as
measures of our performance. The presentation of these non-GAAP
financial measures is not intended to be considered in isolation
from, or as a substitute for, or superior to, operating loss and or
net income (loss) or any other performance measures derived in
accordance with GAAP or as an alternative to net cash provided by
operating activities or any other measures of our cash flows or
liquidity.
We use Contribution Margin (Loss) and Adjusted EBITDA to
evaluate the performance of our operating segment. We believe that
information about these non-GAAP financial measures assists
investors by allowing them to evaluate changes in the operating
results of our business separate from non-operational factors that
affect operating income (loss) and net income (loss), thus
providing insights into both operations and the other factors that
affect reported results. Adjusted EBITDA is not calculated or
presented in accordance with GAAP. A limitation of the use of
Adjusted EBITDA as a performance measure is that it does not
reflect the periodic costs of certain amortizing assets used in
generating revenue in our business. Accordingly, Adjusted EBITDA
should be considered in addition to, and not as a substitute for
net income (loss), and other measures of financial performance
reported in accordance with GAAP. Furthermore, this measure may
vary among other companies; thus, Adjusted EBITDA as presented
herein may not be comparable to similarly titled measures of other
companies.
Contribution Margin (Loss) is defined as Revenue less Cost of
Sales. Adjusted EBITDA is defined as earnings before interest,
other (income) expense, income tax expense, depreciation and
amortization and before (a) non-cash GAAP purchase accounting
adjustments for certain deferred revenue and costs, (b) legal,
accounting and other professional fees directly attributable to
acquisition activity, (c) employee severance payments and third
party professional fees directly attributable to acquisition or
corporate realignment activities, (d) certain non-recurring
expenses associated with legal settlements or reserves for legal
settlements in the period that pertain to historical matters that
existed at acquired companies prior to their purchase date and a
one-time minimum guarantee to effectively terminate a live events
distribution agreement post COVID-19, (e) depreciation and
amortization (including goodwill impairment, if any), and (f)
certain stock-based compensation expense. Management does not
consider these costs to be indicative of our core operating
results.
With respect to projected 2023 Adjusted EBITDA, 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 EBITDA. We expect
that the variability of these items to have a potentially
unpredictable, and potentially significant, impact on our future
GAAP financial results.
Forward-Looking Statements
All statements other than
statements of historical facts contained in this press release are
"forward-looking statements," which may often, but not always, be
identified by the use of such words as "may," "might," "will,"
"will likely result," "would," "should," "estimate," "plan,"
"project," "forecast," "intend," "expect," "anticipate," "believe,"
"seek," "continue," "target" or the negative of such terms or other
similar expressions. These statements involve known and unknown
risks, uncertainties and other factors, which may cause actual
results, performance or achievements to differ materially from
those expressed or implied by such statements, including: the
Company's reliance on one key customer for a substantial percentage
of its revenue; the Company's ability to consummate any proposed
financing, acquisition, spin-out, distribution or transaction, the
timing of the closing of such proposed event, including the risks
that a condition to closing would not be satisfied within the
expected timeframe or at all, or that the closing of any proposed
financing, acquisition, spin-out, distribution or transaction will
not occur or whether any such event will enhance shareholder value;
the Company's ability to continue as a going concern; the Company's
ability to attract, maintain and increase the number of its users
and paid subscribers; the Company identifying, acquiring, securing
and developing content; the Company's intent to repurchase shares
of its common stock from time to time under its announced stock
repurchase program and the timing, price, and quantity of
repurchases, if any, under the program; the Company's ability to
maintain compliance with certain financial and other covenants; the
Company successfully implementing its growth strategy, including
relating to its technology platforms and applications; management's
relationships with industry stakeholders; the effects of the global
Covid-19 pandemic; changes in economic conditions; competition;
risks and uncertainties applicable to the businesses of the
Company's subsidiaries; and other risks, uncertainties and factors
including, but not limited to, those described in the Company's
Annual Report on Form 10-K for the fiscal year ended March 31, 2021, filed with the U.S. Securities
and Exchange Commission (the "SEC") on July
14, 2021, Quarterly Report on Form 10-Q for the quarter
ended June 30, 2021, filed with the
SEC on August 16, 2021, Quarterly
Report on Form 10-Q for the fiscal quarter ended September 30, 2021, filed with the SEC on
October 29, 2021, Quarterly Report on
Form 10-Q for the fiscal quarter ended December 31, 2021, filed with the SEC on
February 14, 2022, and in the
Company's other filings and submissions with the SEC. These
forward-looking statements speak only as of the date hereof, and
the Company disclaims any obligations to update these statements,
except as may be required by law. The Company intends that all
forward-looking statements be subject to the safe-harbor provisions
of the Private Securities Litigation Reform Act of 1995.
** Included in the total number of paid members for the reported
periods are certain members which are the subject of a contractual
dispute. LiveOne is currently not recognizing revenue related to
these members.
LiveOne IR Contact:
(310) 601-2505
ir@liveone.com
LiveOne Press Contact:
aileen@livexlive.com
917.842.9653
aavidon@livexlive.com
516.522.1349
View original content to download
multimedia:https://www.prnewswire.com/news-releases/liveone-increases-fiscal-year-2023-adjusted-ebitda-guidance-to-between-5-million---10-million-as-it-increases-anticipated-annual-cost-and-expense-reductions-from-14-million-to-more-than-20-million-301551229.html
SOURCE LiveOne, Inc.