LiveOne Shares Soar 18% On 4Q Results, Cost and Expense Reductions 5:03 pm ET June 28, 2022 (Dow Jones) Print By Denny Jacob
LiveOne Inc. shares jumped 18% to 90 cents in after-hours trading Tuesday after the company narrowed its loss in the fourth quarter and said it is cutting costs that will increase its annual cost savings to over $23 million for fiscal 2023.
The digital media company, which distributes and monetizes music- and video-related content, narrowed its loss to $8.8 million, or a loss of 11 cents a share, for the three months ended March 31, from a loss of $15.4 million, or a loss of 20 cents a share, a year earlier.
Revenue rose to $23.4 million from $21 million.
The company said it is implementing additional cost and expense reductions from both operations and corporate overhead. LiveOne said it expects this to increase its previously implemented annual cost savings to over $23 million in its fiscal year ending March 31, 2023.
LiveOne said it also settled about $5.5 million in payables and short-term liabilities for the current quarter ending Thursday.
Chief Executive Robert Ellin said its audio business continues to improve due to growth of paid members through partnerships as well as an increase in advertising and sponsorships. Mr. Ellin also said its cost reductions has allowed the company to accelerate its timeline to achieving positive adjusted earnings before interest, taxes, depreciation and amortization to the current quarter.
The company said it is continuing to explore strategic alternatives in order to enhance shareholder value, which it first announced in January 2021.
LiveOne, Inc., formerly LiveXLive Media, Inc., is an interactive music, sports, and entertainment subscription platform delivering content and livestreams from the artists. The Company’s platform provides livestream and on-demand audio, video, and podcast/vodcast content in music, comedy and pop culture. Its brands include PodcastOne, SlackerOne, ReactOne, PersonalizedMerchOne and StudioOne. Its StudioOne provides subscription and advertising streaming music service. Its ReactOne produces original music-related content, including live music festivals, concerts and events. Its PersonalizedMerchOne operates as retailer of personalized merchandise and gifts. Its PodcastOne operates a podcasting platform.