Loop Media Reports 63% Revenue Decline and $4.54 Million Net Loss in Latest Quarter

Loop Media, Inc. reported significant financial challenges in its latest 10-Q filing for the quarter ending December 31, 2024. The company generated revenue of $3.73 million, a substantial decline of 63% from $10.17 million in the same period last year. This drop in revenue was attributed to a slowdown in digital advertising spending, changes in business terms with major ad demand partners, and a decrease in the number of Loop Players due to cost-cutting measures. The net loss for the quarter was $4.54 million, a slight improvement from the $5.29 million loss reported in the previous year.

In terms of operational metrics, Loop Media had approximately 83,000 active Loop Players and Partner Screens, which included 23,225 quarterly active units (QAUs) on its owned and operated platform. This represented a decrease of 16% in QAUs from the previous quarter, as the company focused on optimizing its distribution strategy by prioritizing key advertising markets and reducing its presence in less desirable locations. However, the number of Partner Screens increased by about 11,000, indicating some growth in that segment.

The company has also made strategic moves to address its financial situation, including a focus on cost-cutting measures that resulted in a 38% reduction in total operating expenses, which fell to $4.91 million from $7.88 million year-over-year. This reduction was primarily driven by lower sales, general, and administrative expenses, as well as decreased stock-based compensation. Loop Media continues to explore financing opportunities to support its operations, as it reported cash reserves of $323,587 at the end of the quarter, down from $3.81 million a year earlier.

Loop Media's balance sheet reflects a total asset value of $6.78 million, down from $7.51 million at the end of the previous quarter. The company’s liabilities increased to $27.84 million, leading to a stockholders' deficit of $21.06 million. The company has indicated that it may need to raise additional capital to sustain operations and continue its growth trajectory, as it anticipates further losses in the near future.

Looking ahead, Loop Media's management has expressed concerns about its ability to continue as a going concern, emphasizing the need for additional financing and revenue generation. The company is actively evaluating strategic alternatives to maximize shareholder value and is focused on expanding its subscription offerings, including a new two-tier music video service. However, the ongoing challenges in the advertising market and the need for significant operational adjustments remain critical factors influencing its future performance.