LiveOne, Inc. Q1 FY2025 earnings call

• Audio Division achieved strong Q1 results with record revenue and adjusted EBITDA.
• Slacker Radio's B2B partnerships: partnered with Tesla, hired Bill Wittress for B2B strategy, signed 4 major deals with 63 in pipeline, expanded B2B team to 6, aiming for over 10 professionals.
• PodcastOne: signed 37 new podcasts in 12 months, total podcasts now 187, sold a show to TV/film, publishing grew 300% and won 2 Grammys.
• Stock buyback expanded to $12 million, with over 4.4 million shares purchased.

The Audio Division, comprising Slacker Radio and PodcastOne, achieved record revenues of $31.9 million and adjusted EBITDA of $5.1 million in Q1 Fiscal 2025. For 2025, the Audio Division is projected to have revenues between $130 million and $140 million and adjusted EBITDA between $20 million and $25 million. Slacker Radio had Q1 revenues of $18.7 million and adjusted EBITDA of $5.4 million. PodcastOne had Q1 revenues of $13.2 million and an adjusted EBITDA loss of $300,000. Membership grew from 3.7 million to 3.9 million. Revenue contribution: membership was 56% and advertising/sponsorship/merchandising other was 44% in Q1 Fiscal 2025.

• Audio Division projects 2025 revenue of $130 million to $140 million and adjusted EBITDA of $20 million to $25 million.
• B2B partnerships expected to drive growth, with multiple deals in the pipeline set to close before year-end.

• Uncertainties in closing and executing B2B partnerships.
• Seasonal factors and market competition impacting revenue performance.
• Increased legal and accounting costs due to public company filings for LiveOne and PodcastOne.

Q: How aggressive is the advertising to increase market share or growth in downloads and unique listeners?

A: The budget is used effectively, leveraging content distribution across platforms like Spotify and TikTok, with the goal of getting content in front of more audiences.

Q: How does the pipeline of 63 B2B deals break down by vertical?

A: Focus on auto, carriers globally, retailers, hotels, airlines; 63 deals are in the pipeline with more opportunities beyond that.

Q: What's driving the higher cost of sales at PodcastOne?

A: Higher content acquisition costs for signing new podcasts, with costs expected to level out in the next few quarters.

Q: When will revenue guidance be updated?

A: Guidance is current, but B2B deals will drive future growth, and updates will be provided as deals are signed and become clearer.

Q: Talk about the company's IP and patents.

A: The company has over 40 patents, and IP is valuable as podcasts are being sold to TV/film with significant revenue potential.

Q: What's driving the increase in G&A expenses?

A: Increased stock-based compensation, legal and accounting costs for public company filings, and costs related to auditing multiple business units.

Q: Are there seasonal pressures on Audio Division revenue?

A: Some seasonality exists, particularly in merchandise and podcasting, but the subscription business is relatively stable throughout the year.