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LiveOne reports 20% revenue increase in Q1 FY25

EditorNatashya Angelica
Published 18/07/2024, 17:58
LVO
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LOS ANGELES - LiveOne (NASDAQ:LVO), a music and entertainment technology company, has reported a 20% increase in revenue for the first quarter of fiscal year 2025, generating a record $33.1 million. The company also announced an adjusted EBITDA of $2.9 million, marking a 31% rise from the same period last year. LiveOne’s positive cash flow from its core operations was $17.5 million for the quarter.

The company realized cost savings of approximately $5 million during the quarter and ended the period with a strong cash position exceeding $10 million. Moreover, LiveOne has expanded its share repurchase program, increasing the total from $10 million to $12 million.

LiveOne's CEO and Chairman Robert Ellin expressed enthusiasm about the financial results, attributing the success to robust revenue growth and effective cost-saving measures. He also indicated that the company is well-positioned for continued progress.

LiveOne, headquartered in Los Angeles, operates a creator-first platform that provides music, entertainment, and technology experiences. Its subsidiaries include Slacker Radio, PodcastOne, PPVOne, and several others, available across various digital platforms.

The company's financial results are preliminary and based on the quarter ending June 30, 2024. These forward-looking statements reflect LiveOne’s expectations and are subject to risks and uncertainties that could cause actual results to differ materially.

This information is based on a press release statement from LiveOne, and LiveOne has cautioned that the forward-looking statements are subject to various risks and uncertainties, including the company's reliance on key customers and the ability to execute proposed financial transactions. LiveOne has disclaimed any obligation to update these statements except as required by law.

In other recent news, LiveOne has reported significant growth in both revenue and earnings, exceeding expectations in their fourth-quarter results. This success is attributed to the integration of AI into its operations, a strategic move that has been lauded by Roth/MKM, which maintained its 'Buy' rating on LiveOne stock.

The entertainment and technology platform has also partnered with Seekr to develop the first AI-powered search platform for beats and sounds, a service expected to be available by year-end.

LiveOne has also executed a share repurchase, buying back 4.1 million shares as part of its $10 million share repurchase program, demonstrating its commitment to creating value for investors. Furthermore, for the first time in a decade, LiveOne increased its membership fees, a move expected to support the company's growth initiatives and solidify its position in the audio and entertainment sector.

The company also anticipates joining the Russell 2000 Index, a development expected to increase its market visibility and liquidity. These are some of the recent developments in LiveOne's operations, reflecting its ongoing efforts to enhance its offerings and market presence.

InvestingPro Insights

LiveOne (NASDAQ:LVO) has shown a commendable performance with its latest financial results, indicating a strong uptick in revenue and a solid cash flow from its core operations. The company's strategic cost-saving initiatives have also contributed to its financial health, as evidenced by the expansion of its share repurchase program. Despite these positive developments, it's important for investors to consider a broader financial context provided by InvestingPro data and tips.

InvestingPro data reveals that LiveOne has a market capitalization of $145.02 million, reflecting its scale in the music and entertainment technology industry. The company's revenue has grown by 18.9% over the last twelve months as of Q4 2024, a sign of robust business growth that aligns with the recent press release.

Still, the company's P/E ratio stands at -8.93, and it's trading at a high EBITDA valuation multiple, which could suggest that the market has high expectations for future earnings growth, despite the company not being profitable over the last twelve months.

InvestingPro Tips highlight several critical factors: LiveOne's stock price movements are quite volatile, which could indicate a higher risk for investors. Moreover, the company does not pay a dividend, which may influence the investment decisions of income-focused shareholders. Moreover, short-term obligations exceed liquid assets, posing a potential liquidity risk that investors should monitor.

For those interested in delving deeper into LiveOne's financials, InvestingPro offers additional tips that can provide a more nuanced understanding of the company's performance and prospects. Readers can take advantage of a special offer using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription. With six more InvestingPro Tips available, investors can gain comprehensive insights to inform their investment strategy.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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