LiveOne, Inc.

Hello and welcome to the Live One Inc Q3 fiscal 2023 financial results and business update webcast. My name is Elliot and I'll be coordinating your call today. If you would like to register a question during the presentation, you may do so by pressing star 1 on your telephone keypad. And I'd like to hand over to Aaron Sullivan, interim CFO. The floor is yours. Please go ahead.

Thank you. Good morning and welcome to LiveONE's Business Update and Financial Results conference call for the company's third quarter ended December 31, 2022. Presenting on today's call are Rob Ellen, CEO and Chairman, and myself, Aaron Sullivan, Interim CFO. I would like to remind you that some of the statements made on today's call are forward-looking and are based on current expectations, forecasts, and assumptions that involve various risks and uncertainties. These statements include but are not limited to statements regarding the future performance of the company, including expected future financial results and expected future growth in the business. Actual results may differ materially from those discussed on this call for a variety of reasons. Please refer to the company's filings with the SEC for information about factors which could cause the company's actual results to differ materially from these forward-looking statements, including those described in its annual report on Form 10-K for the year ended March 31, 2022 and subsequent SEC filings. You will find reconciliations of non-GAAP financial measures to the most comparable GAAP financial measures discussed today in the company's earnings release, which is posted on its investor relations website. And the company encourages you to periodically visit its investor relations website for important content. The following discussion, including responses to your questions, contains time-sensitive information and reflects management's view as of the date of this call, February 9, 2023. And except as required by law, the company does not undertake any obligation to update or revise this information after the date of this call. I'd like to highlight to investors that this call is being recorded. The company is making it available to investors and the media via webcast and a replay will be available on its website in the investor relations section shortly following the conclusion of the call. Additionally, it is the property of the company and any redistribution, retransmission or rebroadcast of the call or the webcast in any form Without the company's express written consent, it's strictly prohibited. Now, I would like to turn the call over to LiveOne CEO, Rob Allen.

Thank you, Aaron. And good morning, everyone. I'd like to thank everyone for joining us today for our fiscal year 2023 third quarter business update and financial results. The consolidation, we are proud to say the consolidation, 18 months of work of six acquisitions and each of our subsidiaries is complete. We've caught over 30% of our staff and the stars of our organization have risen to the top. We've been humbled by COVID, COVID variances, epic market crashes, especially in media and technology, but we have survived and we have thrived. It's time to showcase our team's expertise at building billion dollar companies. I can proudly tell you that all of our debt is now gone, converted into preferred equity at $2.10 this week, and we now have over $27.5 million in short-term assets. The company has repurchased 2 million shares of stock, and starting early next week, we'll start to buy back $2 million worth of additional shares. We've gone from a story stock to a growth stock to now a value stock, trading at 60% of revenues and five times adjusted EBITDA, while our peers traded 3.3 times revenues. As we've consolidated our audio division, delivered record revenues of $64 million and a record adjusted EBITDA of $15 million. When we acquired Slacker Radio and acquired Podcast One, they were both losing substantial amounts of money. I can proudly tell you now those combined businesses will do well over $85 million and over $18 million of adjusted EBITDA, an increase of 105% compared to adjusted EBITDA of last year. We're growing in every area. Our membership has exploded, adding over 620,000 paid members since December 31st to 21, and a 45% increase taking our total membership to 1.96 million, and our total members, including free, of 2.8 million. What I've told the street is we expect to, within five years, get to 10 million members. This is a very tiny piece of the overall TAM of the audio business. Goldman Sachs has come out and said they're going to be 1.7 billion paying subscribers, up from this year's 375 million. This will be less than 1% of the TAM of the industry. We've hit record number of sponsors on the platform. We had seven pre-COVID. We have passed over 300 this year and expect by March 31st to have over 400 sponsors on our platform this year. Our B2B partnerships are getting more and more exciting. Number one, obviously, is our Tesla partnership, which continues to grow, and we just see telltale signs this is going to be a spectacular year for Tesla and for LiveOne. We've added partnerships with Google, Android Automotive to be able to white label for other car companies as well as many other products across everything from retailers to cell carriers to social media to cable companies. Candidly, anyone with 10 million to 2.5 billion eyeballs is going to need a music platform. We're one of 12 left on earth that have all of the technology partnerships with the record labels and the publishers, and the ability to deliver subscription sponsorship, as well as all of the great things we do in media and original programming. We recently launched a very exciting division, LiveWin Brands. We've just announced a partnership between two pop culture stars, Jeremiah, as well as winemaker Russell Bevin, and we'll be launching the MVP version very shortly of our new consumer product. Podcast one. We filed our S1 on December 27th and we expect to begin trading very shortly. Company has delivered record revenues, has over 11 million unique viewers, listeners a month and growing. And we have over 300 podcasts on the platform and has grown from 20 million to 8.7 million for the quarter. That TAM as well, As you look at your opportunity of growth here, the TAM has just passed a billion dollars in revenues for the overall podcast business, and it's on its way to $10 million over the next five years. Now I'd like to hand it back over to Aaron, and I'll finish off with some comments at the end. Thank you.