Exchange: NASDAQ | Sector: Communication Services | Industry: Entertainment
Q4 2024
Published: Jul 1, 2024
Earnings Highlights
Revenue of $30.90M up 20.9% year-over-year
EPS of $-0.02 increased by 59.7% from previous year
Gross margin of 19.8%
Net income of -1.95M
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LiveOne, Inc. (LVOPP) Q4 2024 Financial Results – Revenue Growth in Digital Media / Live-Entertainment Platform Amid Ongoing Losses and Improving Cash Flow
Executive Summary
LiveOne, Inc. delivered a solid top-line expansion in Q4 2024, with revenue of 30.90 million, up 20.9% year over year, driven by its multi-platform digital media ecosystem. However, the quarter’s profitability remained negative, as the company reported a net loss of 1.95 million and an operating loss of 1.16 million, underscoring ongoing investment and scale efforts across LiveXLive, PodcastOne, and Slacker Radio. On the plus side, operating cash flow reached 3.04 million and free cash flow was 1.78 million, supporting liquidity amid a leveraged balance sheet. Balance sheet metrics show a fragile near-term liquidity position (current ratio 0.52) with negative equity (-3.78 million) and a modest cash balance of 7.14 million, while total debt stood at 8.55 million and net debt at 1.41 million, signaling manageable leverage but limited cushion for adverse shocks.
The revenue mix appears to be benefiting from growth across the company’s digital music, live-streamed events, and on-demand content offerings; yet, profitability remains a challenge as operating and net margins remain negative. The firm’s working capital dynamics reflect typical growth-stage digital media players with elevated accounts receivable and payables, and meaningful non-cash and one-off adjustments in other working capital. Management commentary (where available) and the quarterly results imply continued emphasis on monetization of its diverse content stack and ad / subscription revenue opportunities, alongside ongoing investments in content, technology, and distribution. Investors should monitor operating leverage realization, potential impairment risk given goodwill and intangible assets, and the pace of margin recovery from ongoing investments.
Overall investment posture is cautious: the company demonstrates revenue growth and improving cash flow, but must translate that into sustained profitability and stronger balance-sheet resilience to support a multi-quarter recovery without dilutive financing or rising leverage.
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: 30.899 million for Q4 2024, up 20.94% YoY and down 1.11% QoQ (vs Q3 2024 31.245 million). The YoY growth confirms market demand for LiveOne’s multi-platform content stack, but QoQ decline suggests seasonal or cadence-related pressures.
Gross Profit: 6.118 million, gross margin 19.80% (0.198). YoY gross profit declined 15.65% and QoQ declined 17.88%, signaling continued cost of revenue pressures and potentially a changing revenue mix.
Operating Income: -1.161 million, operating margin -3.76% (−0.0376). YoY change not directly comparable given the loss position; QoQ deterioration indicates ongoing operating deleverages from investment activities.
EBITDA: -0.127 million with EBITDA margin of −0.41%; reflects near-term operating inefficiencies and growth investments.
Net Income and EPS: Net income −1.954 million; net income margin −6.32%; basic EPS −0.0221, diluted −0.0221. YoY net income improved by 59.01% (positive) but remains negative; QoQ improvement 12.14% is modest given a high base of losses in prior periods.
Financial Highlights
Revenue and profitability
- Revenue: 30.899 million for Q4 2024, up 20.94% YoY and down 1.11% QoQ (vs Q3 2024 31.245 million). The YoY growth confirms market demand for LiveOne’s multi-platform content stack, but QoQ decline suggests seasonal or cadence-related pressures.
- Gross Profit: 6.118 million, gross margin 19.80% (0.198). YoY gross profit declined 15.65% and QoQ declined 17.88%, signaling continued cost of revenue pressures and potentially a changing revenue mix.
- Operating Income: -1.161 million, operating margin -3.76% (−0.0376). YoY change not directly comparable given the loss position; QoQ deterioration indicates ongoing operating deleverages from investment activities.
- EBITDA: -0.127 million with EBITDA margin of −0.41%; reflects near-term operating inefficiencies and growth investments.
- Net Income and EPS: Net income −1.954 million; net income margin −6.32%; basic EPS −0.0221, diluted −0.0221. YoY net income improved by 59.01% (positive) but remains negative; QoQ improvement 12.14% is modest given a high base of losses in prior periods.
- Per-share metrics: Weighted average shares outstanding 88.39 million.
Liquidity, cash flow and balance sheet
- Operating cash flow: 3.044 million; free cash flow: 1.778 million; cash flow from operations represents a positive cash generation platform despite net losses, aided by working capital movements.
- Cash and equivalents: 7.142 million; total debt: 8.554 million; net debt: 1.412 million. Cash position provides some liquidity headroom, but debt levels and negative equity posture require monitoring.
- Balance sheet health: Total assets 63.864 million; total liabilities 57.306 million; stockholders’ equity negative −3.782 million, driven by accumulated deficits (retained earnings −238.984 million) and substantial goodwill/intangible assets (sum of 35.794 million). Current assets 24.335 million versus current liabilities 46.842 million yields a current ratio of 0.52 and quick ratio of 0.48, signaling tighter near-term liquidity.
- Working capital and efficiency: Working capital is negative (current assets − current liabilities). Accounts receivable 13.205 million and accounts payable 15.154 million indicate stretched near-term liquidity; days sales outstanding 38.46 and days payable outstanding 55.04, with a negative cash conversion cycle (−10.03 days) reflecting favorable supplier terms offset by receivables collection timing and working capital swings.
Margins and efficiency indicators
- Gross margin: 19.8%, indicating a relatively modest gross profitability given cost structure.
- Operating margin: −3.76%; Net margin: −6.32%; indicates ongoing profitability pressure and need for scale/tremium monetization to reach breakeven.
- Cash flow efficiency: Operating cash flow to revenue ratio around 9.85% in the latest quarter, suggesting some cash generation capability as the business scales, but still reliant on non-operating items and working capital movements.
Balance sheet health vs. industry norms
- The company carries negative equity and a modest cash balance, with debt levels that are manageable but contribute to a leveraged equity base. In the context of digital media / entertainment platforms, many peers target positive EBITDA or adjusted EBITDA in mid-term; LiveOne’s current metrics imply a longer path to profitability, contingent on monetization efficiency, cost discipline, and scale effects.
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
Management discussion and quantitative results were not provided in the supplied transcript dataset. No earnings call transcript content was available to extract direct quotes or thematic management commentary. Please supply the earnings call transcript to enable a thematically grouped synthesis of strategy, operations, and market views with verbatim quotes.
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N/A
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Forward Guidance
No formal forward guidance was provided in the supplied data. Given the results, investors should assess the potential trajectory of profitability driven by monetization of the multi-platform ecosystem (LiveXLive, PodcastOne, Slacker Radio) and the ongoing investments in content, technology, and distribution. Industry dynamics in digital media and live entertainment suggest a continued emphasis on scalable ad-supported and subscription revenue models, with potential upside from cross-platform monetization, higher ARPU, and improved monetization efficiency. Key factors to monitor include: (1) revenue mix evolution (ad-supported vs. subscription vs. licensing), (2) operating leverage realization through cost controls and platform efficiencies, (3) capex intensity and its impact on cash flow, (4) impairment risk on goodwill/intangibles given ongoing losses, and (5) balance-sheet resilience, including liquidity runway and debt maturities. If management communicates targets (e.g., adjusted EBITDA breakeven, FCF breakeven, or revenue milestones), the achievability will hinge on maintaining revenue growth while materially lowering operating losses and reducing impairment exposure.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
19.80%
-3.76%
51.70%
-20.92%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Rated as a higher-risk, growth-oriented story with a potential for profitability inflection if monetization gains and operating leverage accelerate. The company’s revenue growth is encouraging, but the persistent net loss and negative equity require improving margins and liquidity resilience to support a sustained recovery. The stock trades with limited visibility into near-term profitability, and the balance sheet suggests a need for prudent capital management. Investors should watch for: (1) margin expansion signals and operating leverage realization, (2) any management-provided guidance on EBITDA/FCF milestones, (3) changes in working capital efficiency, and (4) development of high-margin revenue streams (advertising, licensing, and subscriptions). In the absence of explicit guidance, a cautious stance is warranted until there is demonstrable improvement toward breakeven profitability and stronger balance-sheet metrics.
Key Investment Factors
Growth Potential
Targeted growth drivers include monetization of the existing content stack across LiveXLive, PodcastOne, and Slacker Radio, expansion of advertiser and sponsor partnerships, higher ARPU via integrated monetization (ads, subscriptions, licensing), and potential international expansion for live events and streaming. The company has demonstrated YoY revenue growth (+20.9%), indicating demand for its multi-platform offering and potential scale advantages as operating leverage improves.
Profitability Risk
Key risks include sustained negative profitability and ongoing cash burn given negative equity and reliance on growth investments. The balance sheet shows negative stockholders’ equity and limited current liquidity (current ratio 0.52). Dependence on advertising and membership models may render results sensitive to macro ad cycles and monetization efficiency. Impairment risk exists due to high goodwill and intangible assets. Competitive intensity in digital media and live streaming could compress margins further if monetization is delayed.
Financial Position
Liquidity is modest with cash of 7.14 million and total debt of 8.55 million; net debt of 1.41 million. Negative equity and a low current ratio signal balance-sheet fragility in a stressed macro environment. However, positive operating cash flow (3.04 million) and free cash flow (1.78 million) provide a modest cushion to fund growth initiatives, underscoring a fragile but improving liquidity profile. Ongoing monitoring of working capital dynamics and capital allocation efficiency will be important.
SWOT Analysis
Strengths
Revenue growth in a diversified content ecosystem (LiveXLive, PodcastOne, Slacker Radio) indicates demand for the platform.
Positive cash flow from operations and free cash flow generation in Q4 2024 support liquidity during a period of investment.
Moderate leverage with manageable total debt relative to cash balance.
Weaknesses
Sustained net losses and negative operating income create earnings risk and rely on continued capital allocation efficiency.
Negative stockholders’ equity and significant accumulated deficits undermine balance-sheet resilience.
Near-term liquidity constraints with current ratio well below 1.0.
Opportunities
Upside from monetizing cross-platform content through ads, subscriptions, and licensing revenue streams.
Potential uplift from international expansion and stronger cross-selling across LiveXLive, PodcastOne, and Slacker Radio.
Improvements in operating leverage from scale, content licensing optimization, and cost discipline.
Threats
Intense competition in digital media and streaming could pressure monetization.
Impairment risk on goodwill and intangible assets if profitability does not improve.
Macro ad-market volatility and consumer spend sensitivity could impact advertising and subscription revenue.