LiveOne, Inc.

Hello everyone and welcome to the Live One Inc Q3 results and corporate update webcasting conference call. My name is Charlie and I'll be coordinating the call today. You will have the opportunity to ask a question at the end of the presentation. If you'd like to register a question, please press star followed by one on your telephone keypads. I want to hand over to our host, Aaron Sullivan, CFO to begin. Aaron, please go ahead.

Thank you. Good morning and welcome to Live One's Business Update and Financial Results Conference Call for the company's second quarter ended September 30, 2023. Presenting on today's call with me today is Rob Allen, CEO and Chairman of Live One. 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 in 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 for these forward-looking statements, including those described in its annual report on Form 10-K for the year end of March 31, 2023, and subsequent SEC filings. You'll 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. The company encourages you to periodically visit investor relations website for important content. The following discussion, including responses to your questions, contains time-sensitive information and reflects management's view, as is the date of this call, November 9th, 2023, and as acceptable is required by law, the company does not undertake any obligation to update or revise this information after the date of the call. I'd like to highlight to investors that this call is being recorded. The company is making it available to investors and media by webcast and 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, transmission or rebroadcast of this call or the webcast in any form without the company's express written consent is strictly prohibited.

Now I would like to turn the call over to Live One CEO, Rob Allen. Thank you, Aaron, and good morning, everyone. I'd like to thank everyone for joining us today. Investor appetite and demand for microcap stocks began to decline and soften almost two years ago. We made major strategic decisions then to protect our shareholders' capital, take aggressive cost-cutting measures, and solely on predictable growth units with the highest profit margins in an effort to strengthen our balance sheet, drive profits, and be a desirable place for investors when the market cycles change. We have used almost all of our resources to expand our audio division consisting of Slack or radio and Podcast One. This is the largest divergence disconnect that I've seen in 40 years in the public markets between large and micro-caps. Growth at any cost is not the way right now. Over the past two years, I'm thrilled to announce that we have done a remarkable job of delivering $32 million in consolidated cost savings and are looking at another three to 5 million over the next few months. We have purchased over 3.5 million shares in the buyback and have left room to acquire another 5 million shares. Our balance sheet is the best in company history with zero debt and over $28 million in short-term assets. On our audio business, when we acquired Slacker and Podcast One, the combined companies produced about $40 million in revenues and $15 million annually and needed a lot of work to clean up. This morning, I'm proud to announce that our management team's have reported a combined audio business now delivering 52.6 million, a record number, and $10.3 million in EBITDA just for the first six months. We raised our EBITDA and cash flow guidance on the audio business to $18.5 million to $21 million in EBITDA. That combined effort has been a 35 million dollar swing from the time of these acquisitions to clearly to clearly articulate and simplify why our hockey stick growth is coming from these key two key revenue stream streams one is subscription and two is sponsorships our subscribers have grown eight times from 400 000 to over 3.3 million in the five-year period our sponsorship has grown two and a half times with over 700 blue chip sponsors on our platform this year. In September this year, LiveOne completed the spin-out of Podcast One as a separately traded public company under the symbol PODC. Matt's commitment to increase shareholder value issued a dividend of 18% to our shareholders. The spin-out made Podcast One the first standalone podcast network to list and trade on a national exchange. And so far for the first time, investors now have the opportunity to invest directly in that fast-growing podcast business. Trading between a $60 and $100 million valuation since it started trading on NASDAQ, LiveOne owns 80%, leaving LiveOne's remaining four subsidiaries trading in a nominal valuation. Podcast one is doubling the number of top creators on its platform in the three year period, adding 18 already this year at an average of about $350,000 in revenues per podcast. We have increased revenues to $21 million to the six months and growing up from the 20 million when we acquired the business. We currently have over a hundred podcasts in the pipeline. This is about 7X our normal pipelines and over 10 potential acquisitions, the largest opportunity in the history of Podcast One. I encourage everyone to listen to the separate Podcast One earnings and business update called 130 Eastern today. Now to Slacker Radio. We just extended our Tesla partnership for the 10th straight year. Every Tesla car sold in North America comes with a paid membership certificate. to Live One. These members are paid directly to Live One by Tesla. Expanding our management team with a clear focus on B2B partnerships, we identified five verticals and have now over 27 blue chip billion dollar plus companies in our pipeline. These combined efforts, combined opportunities almost guarantee another huge growth year for next year already in place before we've even finished our ninth month of this year. I indicated last year we will pass over 10 million members within five years and over a billion dollars in revenues. Over the past 12 months, we've added 600, a record 679,000 new paid members and an average of over $3 ARPU. And now past 3.3 million total members, 2.4 million paid members, We expect to pass over 4 million total members by the end of next year and over 3 million paid members. To better understand these metrics, Goldman Sachs issued a report that industry will hit 1.7 billion paying subscribers by 2027. Livemore would only need 1% of that addressable market to easily surpass that number. Given the strength in the business, we believe our stock is extremely undervalued So we recently expanded our buyback program to $8.5 million, leaving almost $5 million of additional buying. Now I'd like to hand it off to Aaron Sullivan, our CFO. Thank you, Aaron.