LiveOne Inc reported Q4 2024 revenue of $30.90 million, up 20.9% year over year, signaling continued demand for its live music, podcast, and digital content ecosystem. Despite top-line growth, the quarter delivered a net loss of $1.95 million and an operating loss of $1.16 million as gross margin compressed to 19.8% from prior periods, and operating expenses remained a meaningful drag on profitability. On a constructive note, operating cash flow reached $3.04 million and free cash flow totaled $1.78 million, supporting a cash balance of $7.14 million at period end. Net debt stood at approximately $1.41 million with total debt of $8.55 million, while liquidity metrics remained tight (current ratio 0.52, quick ratio 0.48, cash ratio 0.15). The company also carries a negative equity position (-$3.78 million), reflecting ongoing balance sheet clean-up needs common to micro-cap media platforms pursuing growth investments and content acquisitions.
Key Performance Indicators
Revenue
30.90M
QoQ: -1.11% | YoY:20.94%
Gross Profit
6.12M
19.80% margin
QoQ: -17.88% | YoY:-15.65%
Operating Income
-1.16M
QoQ: -54.18% | YoY:-35.00%
Net Income
-1.95M
QoQ: 12.14% | YoY:59.01%
EPS
-0.02
QoQ: 12.65% | YoY:59.74%
Revenue Trend
Margin Analysis
Key Insights
Revenue: $30.90 million, up 20.9% YoY; QoQ change = -1.11%.
Net income: -$1.95 million; net margin = -6.32%. YoY net income change = +59.01%; QoQ = +12.14% despite the ongoing quarterly loss.
Financial Highlights
Quarterly performance highlights for Q4 2024 and relevant year-to-date context:
- Revenue: $30.90 million, up 20.9% YoY; QoQ change = -1.11%.
- Gross profit: $6.12 million; gross margin = 19.8% (vs. 23.8% in the prior reported quarter). YoY gross profit change = -15.65%; QoQ = -17.88%.
- Operating income: -$1.16 million; operating margin = -3.76%. YoY change = -35.00%; QoQ = -54.18%.
- EBITDA: -$0.13 million; EBITDA margin = -0.41%.
- Net income: -$1.95 million; net margin = -6.32%. YoY net income change = +59.01%; QoQ = +12.14% despite the ongoing quarterly loss.
- Earnings per share (non-dtr): -$0.0221; diluted EPS: -$0.0221; weighted average shares outstanding: ~88.39 million.
- Cash flow: net cash from operating activities = $3.04 million; free cash flow = $1.78 million; cash and cash equivalents = $7.14 million at end of period.
- Balance sheet highlights: total assets = $63.86 million; total liabilities = $57.31 million; total stockholders’ equity = -$3.78 million; cash/debt position = $7.14 million cash vs. $8.55 million total debt; current ratio = 0.52; quick ratio = 0.48; debt ratio = 0.13.
- Notable drivers: sequential operating leverage remains limited; cash flow generation supports a path to optionality as monetization initiatives evolve, but margin recovery requires better cost control and monetization mix optimization.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
30.90M
20.94%
-1.11%
Gross Profit
6.12M
-15.65%
-17.88%
Operating Income
-1.16M
-35.00%
-54.18%
Net Income
-1.95M
59.01%
12.14%
EPS
-0.02
59.74%
12.65%
Key Financial Ratios
currentRatio
0.52
grossProfitMargin
19.8%
operatingProfitMargin
-3.76%
netProfitMargin
-6.32%
returnOnAssets
-3.06%
returnOnEquity
51.7%
debtEquityRatio
-2.26
operatingCashFlowPerShare
$0.03
freeCashFlowPerShare
$0.02
dividendPayoutRatio
-140.7%
priceToBookRatio
-43.24
priceEarningsRatio
-20.92
Net Income vs. Revenue
Expense Breakdown
Management Commentary
Earnings call transcript data not provided in the input. As a result, specific management quotes, themes, or guidance from the QQ4 2024 call could not be extracted or summarized. A complete synthesis of management commentary and thematic emphasis should be incorporated once the transcript is available.
Transcript data not available.
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Transcript data not available.
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Forward Guidance
No formal forward-looking guidance was included in the QQ4 2024 data supplied. Given the revenue growth trajectory and ongoing gross margin compression observed in Q4 2024, investors should monitor: (i) monetization improvements across LiveXLive, PodcastOne, and Slacker platforms, (ii) efforts to scale advertising, subscriptions, and more favorable mix of content, (iii) expense discipline and operating leverage (particularly on SG&A and COGS), and (iv) balance sheet repair and liquidity developments. Management commentary, if provided in forthcoming filings or calls, should address targeted margin recovery timelines, capital allocation priorities, and milestones for turning operating losses toward breakeven or profitability. Key factors to monitor include cash burn rate, working capital trends, and any debt/financing actions that could affect equity ownership.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
LVO Focus
19.80%
-3.76%
51.70%
-20.92%
RDIB
-5.47%
-15.40%
-37.40%
-86.20%
MCS
25.90%
0.96%
-0.31%
-80.84%
RDI
-5.47%
-15.40%
-37.40%
-86.20%
NWS
1.00%
7.30%
0.62%
80.23%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
The QQ4 2024 results depict a company with meaningful revenue growth and improving cash generation steps, but with a fragile balance sheet and margin challenges that require disciplined execution. The positive operating cash flow and free cash flow support a constructive near-term liquidity trajectory, yet the lack of formal guidance and negative equity introduce caution for near-term investment. For investors with higher risk tolerance, LiveOne offers potential upside if monetization initiatives translate into higher gross margins and stronger operating leverage over the next several quarters. A more favorable view would require visible improvements in gross margin, stabilization or reduction of operating losses, and a clearer path to sustainable profitability, ideally supported by a credible guidance framework and stronger balance sheet fundamentals.
Key Investment Factors
Growth Potential
Revenue growth remains positive (YoY +20.9% in Q4 2024) driven by LiveXLive, PodcastOne, and associated live-streaming initiatives. The scalable nature of digital content platforms plus potential monetization improvements (advertising, subscriptions, and white-label offerings) represent a potential path to higher gross margins and free cash flow as operating leverage takes effect and the mix shifts toward higher-margin digital products.
Profitability Risk
Key risks include persistent gross margin compression, reliance on a fragile balance sheet with negative equity and tight liquidity (current ratio 0.52), and a relatively high debt load for a micro-cap. The absence of stated guidance and the presence of ongoing net losses heighten execution risk. Competitive pressure in streaming and podcast markets could further pressure monetization yield and user acquisition costs.
Financial Position
Positive operating cash flow and free cash flow in Q4 2024 support short-term liquidity, with $7.14 million in cash and equivalents and $3.04 million operating cash flow. However, negative equity (-$3.78 million) and a concentrated working capital position (current liabilities of $46.84M vs. current assets of $24.34M) indicate balance sheet fragility. The debt load ($8.55 million total, net debt ~$1.41 million) and modest liquidity constraints suggest a need for prudent financing and potential dilution risk if external capital is pursued.
SWOT Analysis
Strengths
Revenue growth in Q4 2024 with YoY increase of 20.9% indicates demand for LiveOne’s digital content ecosystem.
Positive cash flow from operations ($3.04 million) and free cash flow ($1.78 million) despite a net quarterly loss.
Diversified digital content platform with multiple revenue streams (live music streaming, podcasts, vodcasting, and merchandise).
Cash position of $7.14 million provides near-term liquidity runway to invest in growth initiatives.