LiveOne Reports Q3 Revenue Decline to $29.4M, Net Loss Increases to $5.6M

LiveOne, Inc. reported its financial results for the third quarter and nine months ended December 31, 2024, revealing a revenue of $29.4 million for the quarter, a decrease of 5.7% from $31.2 million in the same period last year. For the nine-month period, revenue increased by 8.5% to $95.1 million compared to $87.5 million in the prior year. The company experienced a net loss of $5.6 million for the quarter, compared to a loss of $2.2 million in the same quarter of 2023. For the nine months, the net loss was $9.5 million, an improvement from a loss of $10.7 million in the previous year.

The financial performance reflects several operational changes, including a significant impairment charge of $3.8 million related to intangible assets, which contributed to the increased losses. Operating expenses for the quarter rose to $34.6 million, up from $32.0 million a year earlier, driven by higher costs in sales and marketing, product development, and general administrative expenses. The company’s cash and cash equivalents increased to $10.9 million as of December 31, 2024, compared to $7.0 million at the end of the previous fiscal year.

LiveOne's strategic developments included the completion of PodcastOne's direct listing on the NASDAQ in September 2023, which allowed it to operate as a standalone publicly traded company while remaining a majority-owned subsidiary of LiveOne. The company also reported a significant increase in its customer base, with membership services revenue contributing $14.3 million for the quarter, although this was down from $16.9 million in the prior year. Advertising revenue saw an increase to $12.9 million, up from $10.6 million, indicating a positive trend in engagement metrics.

In terms of operational metrics, LiveOne's total liabilities decreased to $55.1 million from $57.3 million, while stockholders' equity showed a slight improvement to $1.1 million from $1.6 million. The company’s employee headcount remained stable, and it continues to focus on expanding its geographic reach and product offerings. LiveOne has also filed a new universal shelf registration statement with the SEC, allowing it to raise up to $150 million in capital, which is crucial for its ongoing operations and growth strategy.

Looking ahead, LiveOne's management expressed cautious optimism about its ability to execute its growth strategy, although they acknowledged the challenges posed by uncertain market conditions. The company plans to continue leveraging its platform to enhance user engagement and expand its service offerings, while also seeking additional funding to support its operations. The outlook remains contingent on the successful execution of these strategies and the ability to navigate the evolving market landscape.