LiveOne (NASDAQ:LVO) Issues Quarterly Earnings Results

Key Points

• LiveOne beat quarterly expectations, reporting adjusted EPS of $(0.23) versus the consensus estimate of $(0.24). Revenue was approximately $19.4 million, with consolidated adjusted EBITDA of $4.3 million and record PodcastOne revenue of about $16.1 million.
• Management highlighted expanding B2B partnerships with companies including Netflix, Amazon, Paramount, Samsung, LG and Vizio, and said these relationships could support more than $250 million in annual revenue within three years, though this is not formal guidance.
• Shares fell 14.5% to $3.90 after the results. Investors face risks from potentially temporary margin benefits, share dilution, and uncertainty around proposed AI-content licensing deals, despite the company’s stock repurchases and planned M&A activity.

LiveOne (NASDAQ:LVO - Get Free Report) issued its earnings results on Wednesday. The company reported ($0.23) earnings per share for the quarter, beating analysts' consensus estimates of ($0.24) by $0.01, Zacks reports.

Here are the key takeaways from LiveOne's conference call:

• LiveOne reported Q1 revenue of approximately $19.4 million and consolidated adjusted EBITDA of $4.3 million, while audio generated $18.6 million of revenue and $6.3 million of adjusted EBITDA. PodcastOne delivered record revenue of roughly $16.1 million and $1.6 million of adjusted EBITDA.
• Management highlighted accelerating B2B distribution, including new or expanding relationships with Netflix, Amazon, Paramount, AT&T, Samsung, LG and Vizio, plus a new four-year agreement with a major retailer. It believes these partnerships support a path to more than $250 million in annual revenue within three years, although this remains an aspiration rather than formal guidance.
• The company increased cash by $3.3 million, added $7 million to stockholders’ equity, eliminated $5 million of liabilities and repurchased $7 million of the planned $12 million in stock. Management said it intends to continue buying shares at current valuations and is also pursuing an accretive M&A transaction.
• LiveOne is in discussions with 17 AI companies to license its audio and video archive, with potential pricing of $100 to $500 per hour, and expects initial monetization as soon as next quarter. These opportunities are still under negotiation and their ultimate financial contribution is uncertain.
• Management said Q1’s improved Slacker margins and EBITDA benefited from approximately $1.5 million of liability reductions and stock-for-services arrangements, meaning underlying margins may normalize. The company also issued shares at $7.50 per share for certain transactions, contributing to a higher share count and potential dilution.

LiveOne Stock Down 14.5%

Shares of NASDAQ:LVO traded down $0.66 during trading on Wednesday, hitting $3.90. 187,345 shares of the company were exchanged, compared to its average volume of 72,365. The business's 50 day moving average is $5.43 and its 200-day moving average is $5.29. The company has a market capitalization of $53.74 million, a P/E ratio of -2.01 and a beta of 1.66. LiveOne has a 1-year low of $3.60 and a 1-year high of $7.20.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently commented on the company. Wall Street Zen cut LiveOne from a "hold" rating to a "sell" rating in a report on Sunday. Alliance Global Partners reaffirmed a "buy" rating on shares of LiveOne in a research note on Tuesday, July 7th. Finally, Weiss Ratings reiterated a "sell (d-)" rating on shares of LiveOne in a research report on Tuesday, June 9th. Two investment analysts have rated the stock with a Buy rating and one has given a Sell rating to the company. According to data from MarketBeat, the company currently has an average rating of "Hold" and a consensus price target of $12.50.

Institutional Investors Weigh In On LiveOne

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Jane Street Group LLC acquired a new position in LiveOne in the 2nd quarter worth about $247,000. No Street GP LP acquired a new stake in shares of LiveOne during the third quarter valued at about $1,239,000. Marshall Wace LLP bought a new stake in shares of LiveOne during the second quarter worth about $174,000. Acadian Asset Management LLC grew its holdings in shares of LiveOne by 2,891.7% during the first quarter. Acadian Asset Management LLC now owns 147,490 shares of the company's stock worth $101,000 after purchasing an additional 142,560 shares during the last quarter. Finally, Qube Research & Technologies Ltd acquired a new position in shares of LiveOne in the second quarter valued at approximately $87,000. Institutional investors own 21.25% of the company's stock.

About LiveOne

LiveOne, Inc NASDAQ: LVO is a digital media and entertainment company specializing in live and on-demand music, podcasts and original content. The company provides streaming access to live concerts, festival performances and exclusive artist-driven programming through its digital platform and mobile applications. Its service offerings include ad-supported free tiers as well as premium subscription packages that deliver high-quality audio and video experiences for music fans worldwide.

The LiveOne platform aggregates a diverse range of content, including live concert streams, curated on-demand playlists, artist interviews and behind-the-scenes footage.

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