LiveOne, Inc.

Hello everyone and welcome to the Live One Inc Q3 Fiscal 2024 Financial Results and Business Update call and thank you for standing by. My name is Daisy and I'll be coordinating your call today. If you would like to register a question, please press star followed by one on your telephone keypad. And I would now like to hand the call over to your host, Aaron Sullivan, CFO to begin. So 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 third quarter end of December 31, 2023. Presenting on today's call with me is Rob Ellen, 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 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 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 views. as of the date of this call, February 8th, 2024. As an acceptance 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 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, transmission, or rebroadcast of this call or 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 you for joining us today. It's a really exciting time at Live One, and I'm extremely pleased at how all areas of our business are performing. It was truly a spectacular quarter and one that illustrates the power of our creative-first model focused on superfans, which rewards the talent and enriches the shareholders. As we near the close of fiscal 2024, we conservatively guided consolidated revenues to 115 to 120 million, and we raised our guidance for fiscal 2025 to 145 to 155 million. Of note, our audio division, contributing revenues of 130 to 140 million, and $20 to $25 million of EBITDA with over $17 million of positive cash flow. I'm so proud of our audio team considering at the time of the acquisitions of Slacker Radio and Podcast One, the combined pro forma revenue was around $40 million with 400,000 members losing $15 million a year. Today, Slacker Radio has proudly passed 3.5 million members And this past quarter added over 300,000 members and close to 700,000 year over year. We are guiding this year over a million new members. This past quarter, we onboarded 24 new podcasts, signed some long-term contracts, and we signed almost every one of our current podcast shows. We have a pipeline of over 100 existing podcasts. That's 10 times the amount of any in history. shows that we believe and many will join our network. We focus on great creators with amazing stories that can benefit and achieve increased engagement by joining our family. These shows are averaging about $350,000 annual in revenues. It's over $7 million added. This gives us a unique clarity and strong confidence in our ability to achieve our 2025 financial guidance. Also, as we expand our podcast roster and our sponsorship, we now have over 600 advertisers and partners in growing, as well as over 10 podcast networks as potential acquisitions, very similar to what we did with Cast Media. Kit, Sue, Eli, and the rest of the podcast team have done an amazing job, and you'll have an opportunity to listen to Kit presenting at 11.30 call. I'm excited to announce this past quarter, we closed our first ever 20 plus million dollar B2B deal with one of the largest streaming platforms in the world, a Fortune 500 company. This combined with our extension of our 10 year partnership with Tesla, extending their contract for at least another 18 months ensures increasing monthly revenues, which provides us with full confidence and our business plan will provide More and more of these B2B deals, we now have over 42 potential B2B partnerships in our pipeline across eight verticals. In my 30 plus year history of high level involvement in media and technology companies, any time our companies have surpassed that $100 million in revenues, with most of this almost guaranteed recurring next year, it has always provided both myself and my management team the confidence and the runway ability to drive further revenues and sizable EBITDA for our shareholders this is the live one flywheel it starts with creative first focus on superfans driving traffic and engagements and producing multiple revenue streams from the same piece of content this quarter Our only negative EBITDA division, our merchandise, CPS, has cut over $5 million of costs and will continue to cut up to $7.5 to $10 million of costs and use that cost saving to celebrate our celebrity brands. We will launch between 8 to 12 celebrity brands, starting with Birthday Sex with Jeremiah and Russell Bevan. We sold out in our first few weeks of the first round of product. This past year, proudly, our publishing division, Drumify and Splitline, was nominated for three Grammys and took home two Grammy wins. And the awards are just the beginning. We created Sounds Productions platform to compete with Splice, where producers upload their beats and sound to a storefront for other creators to purchase them. Like Splice, this is a subscription-based service, however, the big difference is our company and the creators own the IP and receive royalty payments. There is nothing better for our young artists than receiving mailbox money every month. This model motivates and attracts creative talent to our platform, driving traffic, audience engagement. Again, with very little cost to us and unlimited revenue potential, revenues increased over 300% in our first year. I'd also like to highlight we created a subsidiary of Podcast One called Studio One, focused on ownership of scripted IP. more specifically focused on second windows of selling to television and film. This quarter, we proudly announced the acquisition and launch of four shows, Opportunist, Lost in Panama, Vigilante, and Barnumtown, which has already partnered with a major streaming platform and is waiting to be greenlit as a scripted TV show. Another one of those has partnered with a different platform and is already sold as a documentary. Our supply is deep and our possibilities are endless. I really hope everyone had an opportunity to listen to our newest podcast, Varnumtown, hosted by Carl McLaughlin. This is a great example of the type of podcast we are targeting, which have the traction to be major studio productions. We believe we currently have 8 to 12 current podcasts have the potential to turn into scripted shows and more on the horizon, either creating our own or acquiring existing podcasts and then promoting them within our communities. Once again, owning more and more IP, licensing merchandise in coming years, the division could become the most profitable division within the company. Given the current strength and future potential of our business, we believe our stock remains extremely undervalued. We increased our buyback from $4 million to $10 million, leaving approximately $6 million in capacity. Thank you, everyone, for your time and attention, and I'd like to hand it back to our CFO, Aaron Sullivan for Q3 results.