LiveOne, Inc. Q2 FY2025 earnings call

• Record Financials: Achieved record revenues for the first 6 months with consolidated revenues of $65.7 million, Q2 revenues of $32.6 million (up 14%), Audio revenues $31.7 million (up 18.18%), adjusted EBITDA for Audio division $5.6 million.
• Tesla Partnership: Extended contract with Tesla through May 2026, new terms allow marketing to Tesla customers across all devices; in discussions with 8 major auto companies.
• Podcast Business: PodcastOne has a run rate of $50 million, 100 podcasts in pipeline, 8 podcast networks in M&A pipeline, acquiring more PodcastOne shares, 10+ podcasts with TV/film adaptation potential.
• Celebrity Brands: Announced second celebrity brand, 7-10 pods a year for 5 years with unit potential $10M-$1B.
• Publishing: Publishing business grew over 300%, launching live streaming pay-per-view event for SuperDuperKyle's album.
• Stock Buyback: Bought back almost 4.5 million shares, increased buyback to $12 million.

Consolidated revenues for Q2 2024 were $32.6 million, a 14% increase from the prior year. Audio revenues were $31.7 million, an 18.18% growth. Slacker posted record revenue of $19.5 million in Q2, and PodcastOne posted $12.2 million. For the 6-month period ended September 30, 2024, consolidated revenues were a record $65.7 million, up 17% from the prior year. Q2 2025 consolidated revenue consisted of 60% membership and 40% advertising, sponsorship, merchandising and other.

• Expect to announce at least 2 major B2B deals by year-end and 2 by March 31, fiscal year-end.
• Podcast business expected to grow from $50M to $100M over next 24 months.
• Monitor Tesla conversions mid-December to mid-January.

• Uncertainty in Tesla subscriber conversions and marketing impact.
• Competition in podcast space, especially for large podcasts.
• Dependence on successful B2B deals and podcast adaptations for revenue growth.

Q: How many paid subscribers are grandfathered or not related to Tesla?

A: Can't provide the number, it's a percentage of total subscribers.

Q: What percentage of Tesla users listen for over 10 minutes a day?

A: Usage is high, average about 20 minutes, with over 1 million users this month.

Q: Conversions from Tesla users?

A: Already seeing sign-ups, excited about potential conversions.

Q: Overhead and Tesla impact?

A: Not making changes yet, waiting to see conversion results.

Q: Access to Tesla subscriber base?

A: Under NDAs, but Tesla is cooperative in marketing.

Q: Pipeline of B2B opportunities?

A: Hiring B2B team, expecting more deals, including retail, auto, etc.

Q: Podcast space competition?

A: Big shows hard to compete, but small to midsize podcasts are available, with opportunities.

Q: Celebrity brands revenue?

A: Starting to see traction, with products like coffee and alcohol launching.

Q: G&A expenses?

A: Higher due to stock-based comp and audit fees, expected to normalize.

Q: Stock pricing and B2B deals?

A: Confident in B2B opportunities, expecting growth and buybacks.