LiveOne, Inc. Q3 FY2025 earnings call

• Audio business performance: Slacker Radio and Podcast One achieved record revenues of $90 million for the first nine months and $14.1 million adjusted EBITDA. • B2B partnerships: Signed major deals adding over $44 million in revenues, with a pipeline of over seventy B2B partnerships. • Tesla partnership: Renewed contract with Tesla for the twelfth year, with branding in every Tesla car and over 800,000 new users signed since December. • Podcast One: Record revenues and traffic, expanded to the eighth largest network, secured a $16.5 million deal with Amazon, and guided to $51 million revenues and positive EBITDA. • Stock buyback: Committed $12 million to a stock buyback program, with $6.2 million remaining. • M&A exploration: Working with bankers to explore M&A opportunities to enhance the business.

The audio business, including Slacker Radio and Podcast One, broke $90 million in revenues for the first nine months, with $14.1 million of adjusted EBITDA for the same period. B2B partnerships added over $44 million in revenues in the last ninety days, including $25 million with a Fortune 500 media conglomerate and $16.5 million with Amazon. The audio business contributed significantly to the overall revenue, with the audio segment's performance being a key driver.

• Expect to close at least two more B2B partnerships by year-end. • The Tesla partnership is a multibillion opportunity, expecting over $3 per month ARPU. • Podcast One guided to $51 million revenues and positive EBITDA. • Publishing and products business have growth potential with transformative moves expected in the coming years.

• Delayed revenue from ad-supported subscribers due to advertising payment timelines (90-120 days). • Cost increases for new content not immediately offset by revenue. • Pricing elasticity and market dynamics affecting ARPU, as seen with competitors like Spotify raising prices.

Q: Brian Kinstlinger asks about the ARPU related to Slacker's pricing, specifically about the $39.99 per year subscription.

A: Rob Ellin discusses pricing elasticity, revenue collection with real data, and the opportunity to raise prices due to new data from the Tesla partnership.

Q: Brian Kinstlinger inquires about Podcast One's costs rising faster than revenue.

A: Rob Ellin talks about onboarding delays, industry advertising payment timelines (90-120 days), and the land-grab strategy for new talent.

Q: Sean McGowan asks about monetization of ad-supported subscribers.

A: Rob Ellin explains advertising timelines (90-120 days) and conversion of ad-supported subscribers to paid ones.

Q: Sean McGowan asks about revenue from sources other than Slacker and Podcast.

A: Rob Ellin mentions growth in publishing, products like Coffee Edge, and television show sales with potential for significant value.