Loop Media, Inc.

Good afternoon, everyone, and thank you for participating in today's conference call to discuss Loop Media's financial results for the 2024 Fiscal First Quarter ended December 31, 2023. Joining us today are Loop's CEO, Mr. John Nierman, and the company's CFO, Mr. Neil Watanabe. By now, everyone should have access to the 2024 Fiscal First Quarter earnings press release, which the company issued earlier today at approximately 4.05 p.m. Eastern time. The release is available in the investor relations section of Loop's website at www.loop.tv. In addition, this call will be available for webcast replay on the company's website. Following management remarks, we'll open the call for your questions. Please note, there are two ways to ask questions during the Q&A. One, for those on the phone, please press star 1 on your telephone keypad to raise your hand. And two, for those on the webcast, please select ask a question in the top right corner of the screen. Enter your question and click submit. Certain questions made on this conference call and webcast are considered forward-looking statements under the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to certain known and unknown risks and uncertainties, as well as assumptions that could cause actual results to differ materially from those reflected in these forward-looking statements. These forward-looking statements are also subject to risk and uncertainties that are described from time to time in the company's filings with the SEC. Do not place undue reliance on any forward-looking statements which are being made only as of the date of this call. Except as required by law, the company undertakes no obligation to revise or publicly release the results of any revision to any forward-looking statements. The company's presentation also includes certain non-GAAP financial measures, including adjusted EBITDA as supplemental measures of performance of our business. All non-GAAP measures have been reconciled to the most directly comparable GAAP measures in accordance with SEC rules. You'll find reconciliation charts and other important information in the earnings press release in Form 8K furnished to the SEC. I would now like to turn the call over to Loop's CEO, Mr. John Nierman.

Thank you, and good afternoon, everyone.

After three quarters of just over $5 million in revenue, we once again exceeded the $10 million quarterly revenue mark. Unlike Q1 FY23, our Q1 FY24 revenue contained little to no political advertising spin and was purely organic revenue off our core business. Quarter over quarter growth increased 79% from 5.7 million in Q4 of FY23 to 10.2 million in Q1 of FY24. In addition to the strong revenue growth, we saw the impact of our focus on lowering operating costs and network efficiency, which resulted in a significantly reduced quarterly adjusted EBITDA loss by 69%, or $1.5 million as compared to $4.8 million in Q4-23. As of December 31, 23, we had approximately 77,000 active loop players and partner screens across the loop platform, which includes 33,783 quarterly active loop players, or QAUs, across our ONOA platform, an increase of 26%, or 6,880 QAUs, over the 26,903 QAUs for Q1 FY23 and a slight decrease of 3,238 over the 37,021 QAUs for Q4 FY23. And approximately 43,000 partner screens across our partner platforms, an increase of 153% or 26,000 over the 17,000 partner screens at the end of Q1 FY23 and 1,000 partner screens over the 42,000 partner screens announced for Q4 FY23. Our QAU footprint for the first quarter of fiscal 24 was reduced as a result of natural attrition of loop players that were not immediately replaced as we transitioned to a more targeted distribution model, pivoting our focus to certain designated advertising markets and geographies, as well as more desirable out-of-home locations and venues, including convenience stores, restaurants, bars, and other retail establishments. We believe this targeted distribution plan will allow us to grow our active Loop Player numbers quarter on quarter and provide a more robust distribution platform for our advertising partners over time. In addition, a number of our Loop Players experienced downtime in late September and early October 23 as a result of an operating program update and technical issues related to outdated Wi-Fi in those venues. Not all of those players return to active performance in the first quarter of fiscal 24. We have now entered the notoriously worst advertising quarter of the year between January and March, where we've learned to be more conservative in our expectations. But I am optimistic about the revenue ramp for the second half of 2024 and beyond. The increased awareness of the Loop TV brand and the expansion of distribution over the past year on our platforms and screens demonstrate that our sales and marketing efforts are getting us new client wins. Our approach is to leverage our business model to continue to gain new customers on a consistent basis while focusing on the venues and markets that we know provide the best return on our investment and potential for revenue growth. Moreover, we will look to explore strategic M&A opportunities that can allow us to leverage our platforms and networks further to integrate our company vertically. We will continue to focus on tightening the bottom line to achieve our goal of becoming cash flow positive as soon as possible. So that could mean further cost efficiencies we will need to be realized while still being careful not to materially dampen future upside and growth. It's always a tricky balance to accomplish that, but we plan to keep a consistent eye on it. With that, I will turn the call over to Neil to take you through our financial results. Neil?