LiveOne, Inc.

Ladies and gentlemen, thank you for patiently waiting. We will be starting momentarily. Thank you for standing by. Ladies and gentlemen, welcome to the Live One NQ for Fiscal 2025 Financial Results and Business Update webcast. All lines have been placed on mute to prevent any background noise. After those speakers' remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again. Thank you. I will now turn the call over to Ryan Carhart, CFO. Ryan, you may begin.

Thank you. Good morning and welcome to Live One's business update and financial results conference call for the company's fourth quarter and fiscal year ended March 31st, 2025. 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 ended March 31, 2024, 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 the 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, July 3rd, 2025. And except as 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 conclusions of this call. Additionally, it is a 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 Ellen.

Good morning, everyone. This is Rob Ellen, CEO and Chairman of Live One. I want to thank you, everyone, for joining. This has been a pivotal year for the company. The company has been transformed in some of their deals with Tesla and has come out stronger than we even expected. We have delivered 100. First, I'm going to talk about today's numbers, and then I'm going to talk about the future and some of the really exciting moonshots that the company is now focused on. Our financial performance, we did over $112 million in revenues, $108 million on our audio business, and delivered $18 million of EBITDA, $6 million above what we had gotten the street to only two months ago. Our podcast business did over $52 million from $38 million last year. This quarter alone was $14 million and an EBITDA of over $900,000. We just raised our guidance to $55 to $60 million with $3.5 to $5 million of EBITDA. Other highlights from our podcast business, we have now had six straight months of being a top 10 podcaster in the world. We have over a billion impressions across our network. We have 46 new podcasts in the last 24 months and passed 200 plus total. with a robust pipeline of over 100 new podcasts in the pipeline today, and we're adding almost one a month. We also have 17 potential acquisitions in the podcast industry that we are looking at as we continue to roll up and consolidate the business. As you got to meet Ryan earlier, Ryan has done a brilliant job of stepping in as CFO and made some very transformative financial moves including replacing east west bank seven and a half billion dollar credit line with jgb a partner of ours for four years previously has come back in with a credit facility of up to 27 and a half million dollars giving us an opportunity of having on performance the biggest cash position we'll ever have we've eliminated over 10 million dollars in short-term liabilities. We've cut one-third of our staff at Slacker Radio and over 70% of our cash at CPS. With over $40 million in total costs, this is the reason that our EBITDA was able to outperform even our own guidance. Now I'm going to talk about the future. The future is pretty remarkable. Added 2 million Tesla cars. We've now converted over 1.3 million. We now have a over 1.5 million subscribers and ad-supported users. We've launched two massive partnerships with Amazon over $16.5 million and with a Fortune 250 company for over $25 million. We have 75 additional B2B deals in the pipeline. We're now at almost a $50 million run rate on those new partnerships across five new B2B deals. We're expecting to launch our biggest B2B partner potentially in the history of the company with almost 10 X subscribers to Tesla. And that first phase will be launched in August. As we continue to look at the future of technology, as most of you know, my background is taking media companies and finding transformative technologies. I will be focusing almost all of my energy on AI and on web three crypto initiatives. On the AI side of it, we have been able to cut dramatic costs, including one third of our costs at Slacker Radio by adding AI and be able to utilize hosting and be able to utilize marketing. With that marketing, we have just started our first campaign to start to advertise in conjunction with DAX, the largest programmatic advertising in the world, And our fill rate on our Tesla users is over 50%. We are about to launch our second phase of that initiative to start converting, utilizing AI to convert those subscribers, to convert those users into subscribers. As we look at our Web3 crypto initiatives, the starting point was to build a renowned group of crypto experts, with Steve McClurge joining our team who started the first ETF in the history of Web3, Steve Lehman on the board of Coinbase, and Lou Kerner, one of the great analysts at Goldman Sachs, who started Crypto Monday. We have just launched the first ever podcast network focused on Web3 and crypto, we see a massive opportunity for us to acquire and start new initiatives in the podcast space with over 75 potential podcasters in the crypto space right now in our pipeline, as well as using AI initiatives to create our own original IP and initiatives in this space. to show our confidence and our belief in how weak our stock has been and how undervalued it is. The company has just bought back over 350,000 shares of LiveOne and over a million shares of PODC. We will continue that buyback as we have over $6 million, just under $6 million of additional room in our buyback and show our confidence in the company and explore all options to add to our holdings in both of those companies. As LiveOne continues to demonstrate our ability to be nimble, our ability to fight through difficult times, our ability to utilize technology to transform the industry, this is the most exciting time that we've seen in the history of the company. And with a balance sheet to really be able to grow aggressively the business, We see this as extremely exciting year going forward, and we look forward to talking to you at the end of the next quarter. So thank you everyone for joining, and we look forward to an update shortly. I'd like to hand it off to Ryan. Ryan is our new CFO, and as I stated, he's just done an absolutely brilliant job of maneuvering with placing East West Bank on the difficult circumstances and doubling our credit, or more than doubling our credit facility, literally within weeks of finding out that East West Bank was pulling their line. So, Ryan, with that, I'd like to hand it off to you and thank you for your help.