LiveOne Q1 2026 Earnings Report

LiveOne EPS Results

• Actual EPS: -$0.04
• Consensus EPS: -$0.05
• Beat/Miss: Beat by +$0.01
• One Year Ago EPS: N/A

LiveOne Revenue Results

• Actual Revenue: $19.21 million
• Expected Revenue: $24.30 million
• Beat/Miss: Missed by -$5.09 million
• YoY Revenue Growth: N/A

LiveOne Announcement Details

• Quarter: Q1 2026
• Date: 8/13/2025
• Time: Before Market Opens
• Conference Call Date: Wednesday, August 13, 2025
• Conference Call Time: 10:00AM ET

LiveOne (NASDAQ:LVO), a digital media company, engages in the acquisition, distribution, and monetization of live music, Internet radio, podcasting/vodcasting, and music-related streaming and video content. It operates LiveXLive, a live music streaming platform; PodcastOne, a podcasting platform; and Slacker, an integrated membership and advertising streaming music service, as well as produces original music-related content. The company also produces, edits, curates, and streams live music events through broadband transmission over the Internet and satellite networks to its users; provides digital Internet radio and music services to users online and through automotive and mobile original equipment manufacturers on a white label basis; and offers ancillary products and services, such as regulatory and post-implementation support services. In addition, it develops, manufactures, and distributes personalized merchandise and gifts through wholesale and direct-to-consumer distribution channels. Further, the company offers LiveOne App, an application that provides access to live events, audio streams, original episodic content, podcasts, vodcasts, video on demand, real-time livestreams, and social sharing of content. The company was formerly known as LiveXLive Media, Inc. and changed its name to LiveOne, Inc. in October 2021. LiveOne, Inc. was incorporated in 2009 and is headquartered in Beverly Hills, California.

LiveOne Q1 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: LiveOne now boasts its strongest balance sheet in years with $20M+ in cash and $14M of short-term liabilities eliminated after a 31% headcount reduction.
• Positive Sentiment: The company secured a flagship B2B partnership with a Fortune 500 firm targeting 30 million paying subscribers and an Amazon deal worth $16.5M over three years, boosting expected B2B revenues to $50M in the next 12 months.
• Positive Sentiment: PodcastOne posted record Q1 revenues of $15M, moving to a $60M+ annual run-rate, and launched its ad network in Tesla vehicles, driving ad growth from 30% to 82% and ARPU from $3 to $5.
• Neutral Sentiment: LiveOne raised $10M in equity to pursue a Bitcoin yield strategy with downside protection and appointed Web3 veterans to monetize over 10,000 hours of video via NFTs and tokens.
• Positive Sentiment: The live events pipeline includes a reality series with 275M+ followers and multi-channel monetization (NFTs, pay-per-view), alongside over 20 TV/film projects, with three shows sold for nearly $1M up front at zero extra cost.

Presentation

[Operator]

Good day, ladies and gentlemen. Thank you for standing by. My name is Jim, and I'll be your conference operator today. At this time, I would like to welcome everyone to the LiveOne, Inc. Q1 Fiscal Year twenty twenty '6 Financial Results and Business Update.

[Operator]

As a reminder, all phone participants are in a listen only mode, but later you will have the opportunity to ask questions. Today's session is also being recorded. It is now my pleasure to turn the floor over to mister Ryan Carhart. Please go ahead, sir.

[Ryan Carhart, VP, CFO, Controller, Treasurer & Secretary at LiveOne]

Thank you. Good morning, and welcome to LiveOne's business update and financial results conference call for the company's fiscal first quarter ended 06/30/2025. Presenting on today's call with me is Rob Ellin, CEO and Chairman of LiveOne. I would like to remind you that some of the statements made on today's call are forward looking and are based on current expectations, forecasts and assumptions that involve various risks and uncertainties. These statements include, but are not limited to, statements regarding the future performance of the company, including expected future financial results and expected future growth in the business.

[Ryan Carhart, VP, CFO, Controller, Treasurer & Secretary at LiveOne]

Actual results may differ materially from those discussed on this call for a variety of reasons. Please refer to the company's filings with the SEC for information about factors which could cause the company's actual results to differ materially from these forward looking statements, including those described in its annual report on Form 10 ks for the year ended 03/31/2025, and subsequent SEC filings. You'll find reconciliations of non GAAP financial measures to the most comparable GAAP financial measures discussed today in the company's earnings release, which is posted on the Investor Relations website. The company encourages you to periodically visit its Investor Relations website for important content. The following discussion, including responses to your questions, contains time sensitive information and reflects management's view as of the date of this call, 08/13/2025.

[Ryan Carhart, VP, CFO, Controller, Treasurer & Secretary at LiveOne]

And except as required by law, the company does not undertake any obligation to update or revise this information after the date of this call. I'd like to highlight to investors that this call is being recorded. The company is making it available to investors and media via webcast, and a replay will be available on its website in the Investor Relations section shortly following the conclusion of the call. Additionally, it is the property of the company and any redistribution, transmission, or rebroadcast of this call or the webcast in any form without the company's expressed written consent is strictly prohibited. Now I would like to turn the call over to LiveOne's CEO, Rob Ellin. Take it away, Rob.

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

Thank you, Ryan. And to start with, I wanna thank thank Ryan for the brilliant job he's done as our new CFO. Coming off the dramatic changes in the Tesla agreement and the loss of those revenues, Ryan has just done an absolutely spectacular job of fixing our balance sheet. We replaced East West Bank who had called in their their loan over $7,000,000. We replaced them with JGB with over 16 and a half million dollars.

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

And then subsequently, we just closed a 10,000,000 equity financing. So, confidently, I can tell you we have the strongest balance sheet that we've had in many years with over $20,000,000 in cash. And with that, we have also eliminated $14,000,000 of short term liabilities, including $2,500,000 alone this quarter. We've just taken the initiative to reduce staff by 31%, cutting our staff down from a 138 employees to 95 employees. And now we move to the positive side as we cleaned up the balance sheet, fortified ourselves with a big cash position, long term partners, we now move to the really exciting side of the B2B partnerships that have been worked on for numerous years.

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

Starting with the biggest launch in the history of the company with a Fortune 500 company, we have the opportunity of driving to 30 plus million paying subscribers with that partner. We've done the first soft launch as of April 5 I'm sorry, as of August 5. And we see this as a potential opportunity to not only replace Tesla, but could be much bigger than Tesla over the next five years. Secondly, our Amazon deal that we announced a few months ago has gotten off the ground to spectacular start, a $16,500,000 three year deal, and we fully expect to not only fit our numbers, but to beat those numbers and start looking at larger MGs based on on the traffic and audience that we deliver. We also, with our Fortune two fifty streaming network, we can now say is well over $26,000,000 and increasing and could could finish the year even higher than that.

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

We have 75 additional b two b deals in the works. We are doing soft testing. Our technology team is doing a brilliant job of continuing to work with some of the biggest carriers, car companies, retailers, streaming networks, cable networks around the world, and many others that could be those next big b to b partners. We also just reported record revenues out of PodcastOne doing $15,000,000 for the quarter. As you may remember, we started this when we acquired that company doing $17,000,000 a year, and we're now on a run rate to do $60,000,000 plus this year.

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

We've just launched for the first time inside of Tesla cars. We have we have converted a staggering 1,300,000 people out of 2,000,000 total cars, probably as big a number is who's actually using our service previously. And for the first time, we have just with a large partnership with DAX, the largest programmatic advertiser in the world, We have just launched our ad network and grown from 30% to 82% ad growth in Tesla cars. We have also increased our ARPU from $3 to $5, and this is the time to start converting those Tesla subscribers. As you're hearing more and more ads and you have more and more of our hosts driving you to convert, this is the time that we expect the third and fourth quarter of this year to start driving a percentage of those to converting of those Tesla subscribers.

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

We just completed a $10,000,000 equity raise with my good friends at Lucid. Lucid, David Rosenberg, and John Litman. David was my partner when we did Digital Turbine and raised our first two rounds of money at 2 and $4 a share and subsequently saw that stock grow to a 100. We raised this in a Bitcoin yield strategy and to advance our Web three initiatives. We have just added three of the prominent leaders in Web three, including Steve McClurg, who ran the first ETF and sold to Coinbase, Steve Lehman, who sits on the board of Coinbase, and Andy Vick, we brought back to our team to monetize our ten thousand hours plus of video content through tokenization, NFTs, and other digital assets.

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

We've just sold our third TV show through a network, through a streaming platform. Barnum Town, Vigilante, and Opportunist. We took in almost a million dollars dollars in from those those sales, and we now have the opportunity of those TV shows to now become major hits on those streaming platforms and deliver millions to tens of millions of dollars with no additional cost to the company as we continue to build our flywheel. We now have a slate of over 20 potential shows on our platform that are all talking to streaming networks about TV, film, and bringing back some of my team's background and some of the team team's expertise at delivering some of the greatest and most profitable movies and television shows in history. Our live events business.

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

We were shut down during COVID. We've had a tough time relaunching it. But now that we're well financed, we've just announced that we will we will launch our biggest live event since Social Bluffs. When we did Social Bluffs, we did $27,000,000 at night with 4 and a half million dollars in EBITDA. We are now in have announced and are launching reality elliptic series, which will be some of the biggest reality stars in the world in a format like the Olympics with over 275,000,000 followers amongst their audience.

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

Our m and a opportunities, we continue to work with JPMorgan, and we have moved very aggressively now to potential mergers, acquisition opportunities, including a potential sale of a subsidiary. As we move forward, this team has proven again. We survived COVID. We survived a massive loss in revenues with Tesla. We have turned that around and rebuilt that audience with Tesla, converting 60% of those people back into free and paid subscribers.

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

It'll take time to get those revenues back, but a huge opportunity. And we have now proven that our b to b team is starting to hit on all cylinders. As we look forward over the next three years, I see the opportunity again that we can easily achieve those goals of hitting 10,000,000 subscribers, a half a billion dollars in revenues with substantial bottom line over the next three to five years. With that, I want to offer the opportunity for anyone to open up for Q and A and ask any questions, and I look forward to our upcoming quarter and the rest of this year. Thank you very much.

[Operator]

And to our telephone audience at this time, if you would like to ask a question, please press star and one on your telephone keypad. Once again, if you would like to ask a question, ladies and gentlemen, that's star and one on your telephone keypad. We'll take our first question today from the line of Barry Sine at Litchfield Hills.

[Barry Sine, Analyst at Litchfield Hills Research]

Hey, good morning gentlemen. A couple of questions if you don't mind. First, can you give a rough idea of what the annualized revenue of all the currently signed partnerships would look like for LiveOne and PodcastOne because I know that includes podcast.

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

Yeah. We we can't go much deeper than we've gone, Barry, and that we've said we expect $50,000,000 in b two b revenues. Right? We can't get deeper than that, but we will shortly. As I just articulated, we've just launched what could be our biggest partnership in history with multiple others that could be very close behind that.

[Barry Sine, Analyst at Litchfield Hills Research]

And just to clarify, Rob, the 50 includes both Slacker and PodcastOne b to b. Correct?

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

Correct. It's our entire audio business.

[Barry Sine, Analyst at Litchfield Hills Research]

And then on the expense side, you just announced the staff reductions. What does EBITDA look like pro form a with those reductions? And I'm concerned, have you reduced the I know you've added to the Slacker team over the last year or so. Have you reduced that team or the Slacker technology team? Because those would seem to be key to all the 75 partnerships you're working with.

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

Yeah. As you know, we can't provide guidance, you know, at this point and give you EBITDA numbers. What I could tell you is is those cuts are across the board. A substantial amount of those are at Slacker. Right?

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

What AI has done and has done for not just us, but for the overall industry, including starting on the content side, it gives us the ability that you know, we have 500 music channels and growing, right, in over, you know, over 50,000,000 songs on our platform. We have the ability to curate now utilizing AI with a way smaller staff to be able to deliver, you know, radio stations at an equal or better level than we've ever done before with a way smaller staff. So we've cut we've cut across the board, and we're not done with that, Barry. Right? We will have additional cost savings, right, moving forward.

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

So we're really excited about what AI and AI initiatives have done for our industry, right, across the board and what it does for our technology team and couldn't be more excited about about the, the opportunity right now where we are. I wish I could share guidance with you today, but we have not put out any guidance. We will in the very near future.

[Barry Sine, Analyst at Litchfield Hills Research]

And then on the, Tesla relationship evolution, I think you had at the peak about 2,000,000 subscribers. I think you said you've converted about 1,300,000 to paying what kind of ARPU are you seeing there? You mentioned AI. I know you've talked in the past about using AI to help your advertising to help the conversion. How is that going?

[Barry Sine, Analyst at Litchfield Hills Research]

And then the rest of them are ad supported. So about how many ad supported on top of that 1,300,000 subscribers do we have?

[Barry Sine, Analyst at Litchfield Hills Research]

And what does ARPU look like there for ad supported?

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

No. That that 1,300,000 is total of the Tesla conversions. Right? So there were 2,000,000 cars of which previously the consumer had to choose whether or not they paid for, right, $10 a month for connectivity.

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

Right? That didn't mean that all of those used that they all used the radio service. Right? In fact, you know, obviously, there's a large percentage that didn't. So we we couldn't be more proud and more excited by the fact that 1,300,000 have converted.

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

We don't break down the exact numbers now. We're well over 1,500,000 total subscribers, and our ARPUs are increasing from $3 right now to a little over $5. And we see opportunities for those to increase, including with our new b two b partnerships to increase to closer to $7. And as you see Spotify and see raising rates substantially, right, you know, that we're still at the, you know, the early stages of of these these additional raises in prices, and we're so far below the market. We are at a very comfortable level that we are still the cheapest by far in the industry, averaging $5 and even even at close to $7, we'll still be in that in the in the lowest end of the range.

[Barry Sine, Analyst at Litchfield Hills Research]

Rob, just to clarify, the $5 ARPU, that's a blended ARPU of people who are paying to subscribe as well as advertising revenue from the from the base?

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

No. No. No. That's that's the paying subscribers. Right?

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

Advertising, you're only gonna you're only just starting. Right? This is the baby steps. So we we partner with Dax, the biggest programmatic advertiser. Right?

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

We've just started to launch that advertising. And if you're on our service, you'll notice. Right? You're gonna get a staggering amount of ads. Right?

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

It was 30 ago. So all of a sudden, those ads are gonna kick in, but that's only gonna be $50.60 cents cents in that range. Right? You're not gonna make up for that $3. What you're gonna get is you're gonna get the opportunity now by putting in that advertising.

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

Right? You're gonna get the opportunity of now understanding that customer better, using AI to drive them and convert them, using your host to convert them, right, and really reaching out to them on a regular basis. And then, candidly, you know, as Spotify likes to describe it, a lot of people don't wanna hear ads. There are gonna be some people that drop off the platform, and there's gonna be some people that convert. What we're watching is a conversion rate that is above $5.

[Barry Sine, Analyst at Litchfield Hills Research]

I better make sure I can renew my subscriptions so I don't hear all those ads. On the on the reality series, a number of questions there on visibility. It sounds like it's early going, so you probably don't have these. But, you know, everybody remembers the huge success of Social Gloves. Do you have a formal name for it, a host, location? Do you know your distribution will be on cable, pay per view?

[Barry Sine, Analyst at Litchfield Hills Research]

When might we see that? Is it going to be expensive to produce? And then I would assume you're gonna monetize it as well as distribution rights through partnership sales. You wanna have, you know, key name sponsors there. So a lot of questions on that.

[Barry Sine, Analyst at Litchfield Hills Research]

What what visibility you can give us on that reality?

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

Yeah. So so you're gonna read a lot about it very shortly. It's coming. K? This is not the early stages.

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

It's actually moving fast. And if you remember in Social Gloves, right, in Social Gloves, we were able to get $2,000,000 from Hard Rock Stadium. We're able to get $3,000,000 in NFT money. Right? And as you know, crypto is just on fire right now.

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

Right? I just brought in my dear friend Andy Vick who produced that show, who helped bring in that money alongside of Jackie Stone, our head of marketing at the time. Right? We couldn't do any of these things, right, for multiple reasons. One was COVID, but then we just weren't capitalized properly, right, to be in the position to really do this.

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

That show sold $33,000,000 of NFTs and had a 160,000,000 followers. This already has 230,000,000. And from what I understand from the the producers, right, of this show that are partnering with us, they expect the numbers to be over 400,000,000 in social media. So there could be a pay per view component to it. There could be a there could be a distributor like we did with Social Clubs.

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

There could be a VR element to it, and there's certainly gonna be a very sizable NFT element to it. And then you're gonna have music on top of it, which we have not announced the artist. So this is gonna read and smell exactly like social bugs, except for I don't have the risk of someone getting hurt like boxing. I don't have have the risk of a commission having to approve it. Right?

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

And in this case, the social media has come to us. The talent has come to us to do this, so the excitement and energy around this is is really unique. And, yeah, we couldn't be more excited about it. It won't be the only one. We have multiple other events like this, small, medium, and large, and this will put us back very much in the forefront of that live events, music, you know, pop pop culture crossover that, you know, made us you know, made this company in the beginning before COVID.

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

So we're really excited to be back in that in that business and excited. And, obviously, you get you get the most important win at the end of it is you get the one time win where in social class, we did 27,000,000 that night and four and a half million of EBITDA. But the bigger win is you get all of these you know, you get millions to tens of millions of people coming through, right, who you're collecting data on who eventually become your subscribers and your partners.

[Barry Sine, Analyst at Litchfield Hills Research]

The the flywheel, I think you like to call it. Those are my questions. Thank you.

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

Great. Thanks, Barry, as always, and and call me. Let's make sure we set up a follow-up call.

[Operator]

Our next question today comes from John Hickman at Ladenburg. Mr. Hickman, your line is open.

[Jon Hickman, MD - Equity Research at Ladenburg Thalmann]

Hi, Rob. Can you hear me?

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

Hey, John. How are you, pal?

[Jon Hickman, MD - Equity Research at Ladenburg Thalmann]

Fine. Could you elaborate a little bit on how this new Fortune 500 B2B deal my work with the 30,000,000 subs, do they do the subs have to, like, opt in to the Slacker service? What how do you get paid here?

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

Yes. So so I can't answer too many questions yet. We will be able to very shortly. I'm gonna tell you, as I said, you know, way over 30,000,000 paying members. Right?

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

And having over 30,000,000 paying members, right, whether it's a carrier or a car company, this is a staggering number compared to Tesla. Right? And this will be a white label solution where they're actually branding it and aggressively marketing it to those members as a product of their own. Right? We'll be in the backgrounds of it, and we'll be powering it like Intel Inside.

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

Right? But this will be them going out and reaching and using all of the things we built over the twenty years and the $200,000,000 that we spent building Slacker Radio and building PodcastOne and building the infrastructure and the live events and so on. They'll be using every muscle in that to be delivering what they believe is a fantastic service, a discount to their members.

[Jon Hickman, MD - Equity Research at Ladenburg Thalmann]

But their members have to opt in?

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

Of course.

[Jon Hickman, MD - Equity Research at Ladenburg Thalmann]

Okay. Of course.

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

And opting opting in opting in may be as simple as pressing a button.

[Jon Hickman, MD - Equity Research at Ladenburg Thalmann]

Okay.

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

Alright. So if you think about if you think about Disney and Verizon. Right?

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

When Disney launched, they got to a 100,000,000 subscribers in no time. How did they get there? Verizon gave it to all of anyone that wants to that, you know, that re upped their service or bought a new phone. They immediately, like, got Disney service for free, and they subsidized it.

[Jon Hickman, MD - Equity Research at Ladenburg Thalmann]

Okay.

[Jon Hickman, MD - Equity Research at Ladenburg Thalmann]

Okay. So this $50,000,000 of b two b revenues, over what time period is that?

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

Over over a twelve month period.

[Jon Hickman, MD - Equity Research at Ladenburg Thalmann]

Beginning, like, now?

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

Correct.

[Jon Hickman, MD - Equity Research at Ladenburg Thalmann]

Okay.

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

Some of it some of started some of that started a little earlier. Right? You know, as, you know, as you're building it up.

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

Right? It's a slow buildup, but, you know, you'll start to see what really click you start to see that really click in the third and fourth quarter. Really, the end of the third quarter, beginning of the fourth quarter starts kicking in a much heavier way.

[Jon Hickman, MD - Equity Research at Ladenburg Thalmann]

Okay. And then right at the end of your prepared remarks, did you say something about the sale of a subsidiary?

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

What I said was is that, you know, based on the inbound calls that have come in, right, and you and I have talked about this. I've been traveling around the world, and as you know, my background historically is signing partnerships globally. Right? We've never had that ability before. But in that, right, there are many people that are missing, you know, any piece of our services.

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

Right? So there are multiple inbound calls. And as you hear the likes of Netflix going into audio and Spotify going to video, everybody is infringing on each other's businesses. And you just saw, you know, Napster sell for 210,000,000. They were doing 40,000,000 in revenues.

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

Right? Right? You saw Tidal sell a few years ago for 400,000,000. Neither one of them were anywhere near profitability. We're losing, you know, fortunes of money.

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

Right? It's really hard to rebuild the DSP. Tesla tried to do it. Right? Tesla tried to tried to literally behind our back years ago build their own music service.

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

It's really hard to do. So we have had a staggering amount of inbound phone calls. We need to be we need to be vigilant. We need to be protective of our shareholders, right, and make sure that if a sale of a division happen or a merger happen or a or a investor came in, strategic investor came in, there's so many parties in this space right now that must have a music platform. Right?

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

Facebook's missing one. Microsoft's missing one. Walmart's SportVizio, they're missing one. Costco's missing one. Target's missing one.

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

Every single carrier is missing one. Every single streaming network is missing one. Right? Do you think that at Disney, HBO, and so on are gonna have an audio version of the platform? They're already everyone's already talking about how podcasting is is literally moving mountains and how much video is now being sold and the amount of revenue is coming from video.

[Jon Hickman, MD - Equity Research at Ladenburg Thalmann]

Okay. One last question. So you raised the $10,000,000 to buy Bitcoin. Have you actually purchased it?

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

Yeah. So we'll we'll be talking about that literally in the next seventy two hours. So we've done is we've done a Bitcoin treasury strategy, right, which the partner that we hired to manage that has been delivering between 1215% returns for the last five years. So it's actually a managed account that is actually a protected protects you on the downside, right, and is yielding cash flow, which, as you know, we have a $110,000,000 annual. Right?

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

If they can generate on $10,000,000, call it, if they can generate generate a million dollars for it, that million dollars of cash flow comes straight through and can be used to either buy additional Bitcoin treasury or to buy other things. The other part that it does for us is, again, is it positions the company very strongly back into the NFT token market, right, positions us because we have so much content. It really puts us in a very unique position that, as you know, we we took in $3,000,000 in NFT money and over 5,000,000 total in NFT money off our content in the first round of this. The numbers are gonna be staggeringly higher the next time. And that was with no additional cost to us.

[Jon Hickman, MD - Equity Research at Ladenburg Thalmann]

Let me ask the question a different way. In q three, when we look at your balance sheet, will there be $10,000,000 of Bitcoin on the balance sheet?

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

I mean, you you'll see when we when we publicly announce our next JAS move, you'll see what we're doing. But can't ask you what has what what has happened until we publicly release that.

[Jon Hickman, MD - Equity Research at Ladenburg Thalmann]

Oh, okay. And you said that would be within seventy two hours?

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

Coming any minute now.

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

Yeah. Just just to give you we've we've been in the process of setting up our accounts, right, with a with the Coinbase's of the world, right, which took a little longer than we thought would take. So as soon as that is completed, which is momentarily, you'll start to see what our position is there, and you're gonna start to see some of those things across all of web three and where this is going.

[Jon Hickman, MD - Equity Research at Ladenburg Thalmann]

Okay. Thanks. Bye.

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

Thank you.

[Operator]

Our next question will come from Brian Kinstlinger at Alliance Global Partners.

[Brian Kinstlinger, MD, Director - Research & Head - Technology Research at Alliance Global Partners]

Great. Thanks. I have just two questions. The first, you into one of the questions, you just responded that you expect 15,000,000 of revenue over the next, say, twelve months or so. Can you give us a sense of what the run rate is today on b to b so we can understand the incremental contribution?

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

Yeah.

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

We we can't we can't give any further guidance than we publicly have. We have not put out guidance yet on live one. Right? That may be coming shortly. Looking backwards.

[Brian Kinstlinger, MD, Director - Research & Head - Technology Research at Alliance Global Partners]

No. Sorry.

[Brian Kinstlinger, MD, Director - Research & Head - Technology Research at Alliance Global Partners]

I'm looking backwards. What is the what has been the trailing b two b revenue?

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

Yeah. So so the breakdown of it, you know, very small amounts of that today is is kicking in. It's just beginning.

[Brian Kinstlinger, MD, Director - Research & Head - Technology Research at Alliance Global Partners]

Okay.

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

So you're gonna see a lot a lot more of that revenue, as I said, a lot more of that revenues end of third quarter and really in the fourth quarter.

[Brian Kinstlinger, MD, Director - Research & Head - Technology Research at Alliance Global Partners]

Okay. And then can you articulate your digital currency strategy? There are those that are raising capital as quickly as they can, and they trade me at a premium, and now they call it, to buy digital currency rapidly mimicking micro strategy. And then there's others that are just wanting exposure on their balance sheet, so they're raising a little bit of money opportunistically so they have that digital currency exposure. Where where do you lie in that?

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

Yeah. I mean, I I think that, you know, the movie hasn't been written yet. Right? You know, this is we wrote the script. We got ourselves in here because we've been a thought leader in technology.

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

Right? And my team has been thought leaders in technology for forty years. Right? We always wanna be at the forefront of where technology is going, and we're huge believers directionally where this is going. But we also want a protected position, which is why we did this Bitcoin yield where you have an option strategy against it, you're protecting against the downside because it is a very volatile market.

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

Right? But we absolutely have, you know, deep, you know, plans for and approval by our board, you know, for substantially more money to come in. Right? And that could come in from a sale of a subsidiary. That could come in if the stock performs like it should.

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

Right? And, you it's trading at, you know, fair market value, it could come in. Right? In the interim right now, we're very focused on what we've accomplished so far, and I think you'll see some of that strategy starting to materialize, both the acquisition of Bitcoin Yield as well as as our NFT and token strategy starting to kick in, which will drive both revenues as well as having a balance sheet that has ownership and what we believe strongly will be will go way higher over the next couple of years.

[Brian Kinstlinger, MD, Director - Research & Head - Technology Research at Alliance Global Partners]

Great. And then you just recently began aggressively working or focusing on conversion from ad supported to paid subscribers for Tesla. So I'm sure it's too soon to evaluate execution. But and you've been clear, it's not gonna happen overnight. But how long do you think it will take before conversion has an impactful will have a major impact, Shari, on the results?

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

You know, again, it's such a tricky question. Right? You know, as you look at, you know, Spotify and they said the reason they have their free service. Right? And I could tell you I keep both because I just wanna see how it sounds.

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

And I can tell you, honestly, you know, for me, listening to ads all day long is difficult. Right? Except for me, I would convert immediately. Right? But you're gonna lose you're gonna lose some people that just walk away because of it.

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

You're gonna you're gonna gain some people that you're gonna gain revenues from those advertising, and then you're gonna convert a percentage of them. And, again, I I think our aspirations are are the same over a twelve month to twenty four month period to convert somewhere between between 2030% of those subscribers.

[Brian Kinstlinger, MD, Director - Research & Head - Technology Research at Alliance Global Partners]

Got it. Now you talked about the my last question is, you talked about the the B2B partnership with the 30,000,000 paid subscribers. But in the press release, you talked about the Fortune two fifty streaming network. And maybe this is something you've talked about in the past, so maybe I'm just confused, so I apologize. Can you provide any detail around that as well, like, you have for the for the $100,000,000,000 company?

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

Not yet. We will be able to very shortly. So all I can tell you is that there's been a soft launch, right, which has gone exceptionally well. There'll be a larger launch shortly. It has leaked out there from the management of the company.

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

So there are some things. If you search around, you may be able to find it. We wanna be good partners. We wanna be spectacular partners. Right?

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

Makes sense. Yep. Because there are more of these deals that are now itched away. You know, some just there's something like a you know, I'm a big I'm a big basketball guy. When you go on a hot streak, we just feel like that streak's coming.

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

Right? And, obviously, this has been you know, this is a tough long sales process. You're talking about massive companies. We truly believe that we will have another car company and another carrier company and a retailer this year, all three of them over the twelve month period. And we're behind, so we have to accept that.

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

We have to accept that these took longer than we expected. And some of that obviously is, you know, there was some skepticism about our balance sheet. There was some skepticism about our cash position. Right? Now that we've cleaned those things up, I think all of that has gone away, is now about what can we do with this business now and how big can we grow it, and can we recover from the loss of Tesla.

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

Right? You know, when COVID hit, as you know, we lost 50% of our revenues. We not only recovered, we grew from 38,000,000, and we grew it to a 100,000,000. We've now taken a second missile that we have to recover from. Right?

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

And I I give my team so much credit. Nobody's backed off. Nobody stopped. Everybody's focused. People are working around the clock, and they're literally the excitement and energy.

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

I haven't seen this much excitement and energy since I bought Slacker Radio going back, since I bought PodcastOne. Right? We've gone through some great times. We've had some great stock runs. We've gone through some really difficult times.

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

This has been a difficult time on both sides, both the stock as well as the business. And I could tell you that, you know, there's more optionality in this company than any company I've ever been involved with before. I gotta fight through. I gotta battle through, but at least now I got plenty of cash. I got plenty of balance sheets, and I've got amazing assets here that if I can keep fighting to survive, right, we're gonna come out of this stronger than ever.

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

And, you know, over the next couple of years, this will be this will be you know, I think I think it'll be my biggest company I've ever built. And it's the best team I've ever had. So I just gotta keep them focused, keep them energized, right, and and and keep battling with it.

[Brian Kinstlinger, MD, Director - Research & Head - Technology Research at Alliance Global Partners]

Great. Last question to actually follow-up. If if some of these are white labeled, will you ever be able to announce who they are? Because we won't see it, right, as a live one button or a Slacker button. What or are there some cases where you won't be able to announce?

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

You actually will. You actually will see it. Not only will you see it, you'll actually see powered by. It'll be very much like Intel Inside.

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

You'll see powered by LiveOne. Right? Because these are these are, of course, audio, video. This this isn't necessarily just audio. This there's massive opportunities that, you know, streaming network.

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

There's more video. Right? So our video content is now coming into fruition. As you see, podcasting as well as all of our live stuff. Right?

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

We have thousands of hours in the biggest music events in the world that can all be revived and brought back, and now you're watching that video being so important, especially for AI models. Right? So, you know, one of our holdings that you represent, you know, they're making a lot of money off of Google just wanting their content because they can't get the a plus comp. They can't get to Disney and and, you know, Warner. So they have to use content to build those AI models.

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

We have a lot of content that could be monetized right now. I've always talked about this flywheel. Right? I just watched one of my dear friends literally, you know, make tens of billions of dollars utilizing his video content of effectively it's a podcast that he was doing for fifteen years. And, literally, he's getting paid by Google just to use that for their AI models to build those because they don't have enough content to do it on to prove their models and prove them out.

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

So I see a lot a lot of opportunities there for us to really utilize that flywheel that we've been talking about for years. And as you know, video, YouTube just came out and said, you know, their numbers you know, YouTube podcast are just going through the roof. It's gonna be billions of dollars. Right? It's gonna dwarf the audio numbers in the next five years.

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

So I see, you know, tremendous opportunity for us to monetize all of this rich media. And as you know with music, it's very inexpensive to have made this content, And this content has enormous value because you have the biggest stars in the world.

[Brian Kinstlinger, MD, Director - Research & Head - Technology Research at Alliance Global Partners]

Okay. Thanks so much.

[Operator]

We'll hear from the line of Sean McGowan at ROTH Capital Partners.

[Sean McGowan, MD & Senior Research Analyst at Roth Capital Partners, LLC]

Thank you. Hi, Rob. Hi, Mark. Question about the ARPU figure. Is that just want to clarify, is that actually what you're getting now?

[Sean McGowan, MD & Senior Research Analyst at Roth Capital Partners, LLC]

Or is that a a goal, like, for the near term? Are are you actually getting an average of $5 per paying user?

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

That's what we're getting.

[Sean McGowan, MD & Senior Research Analyst at Roth Capital Partners, LLC]

Okay. Thanks. That's what I figured. And to clarify also, when you become a paying subscriber, you're you then don't have any ads?

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

Correct.

[Sean McGowan, MD & Senior Research Analyst at Roth Capital Partners, LLC]

Okay. On those shows that you mentioned, you know, Varnum, Vigilante, Opportunist that are, you know, are in in in production now for other screens, where does that revenue go? Is that is that within podcast or was that somewhere else when you when you start booking that revenue? I wanna know where we're gonna see it.

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

Well, that's that's gonna be more on the podcast side on those three shows, but that doesn't mean that some of the other content doesn't cross over. Right? Monetizing of television, film, right, could be anything from documentaries. You know, we shot six years of rock and reel. Right?

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

Having full content, some of the greatest content in the world. There there could be multiple revenue streams that come out of it, and then the NFT side of it, right, and the tokenization side of it, they could be coming coming more on the LiveOne side probably than the podcast side in the beginning. But on those three specific television shows, right, which are true crime, those three shows have been sold to major networks. Those shows are you know, they're close. Right?

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

I can't tell you they're fully greenlit yet, but if one of them gets greenlit, you know, that was the upfront money. Right? The million dollars was the upfront money. Now that that money going forward is you get paid per episode. Right?

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

You get paid back end on it, and we have no additional cost, not a single dollar of additional cost in that.

[Sean McGowan, MD & Senior Research Analyst at Roth Capital Partners, LLC]

Right. Makes sense. I just wanted to know where we would be looking for that revenue going forward, you know, when it starts to come in, assuming that they get greenlit. You mentioned a a total of 20 potential shows on the platform. Any sense of, you know, when there could be some realization on that?

[Sean McGowan, MD & Senior Research Analyst at Roth Capital Partners, LLC]

Are we talking about, you know, a couple of years from now or a couple of quarters from now, a couple of weeks from now?

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

I mean, we're we're you know, you sit you sit waiting by by the phone in these things. Right? And, obviously, you've just watched the transformation. Right? Warner Warner just changed the whole team.

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

Paramount just got taken over. Right? Yo. Management teams are moving left and right. So you gotta get you gotta get you know, you gotta get in those crosshairs of getting signed with.

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

The beautiful part of this is we're right now in the trenches of could be greenlit next week. It could be three months. It could be six months, but they're in the trench. They're in they're in production today. Meaning, they're paying millions of dollars to writers, producers, right, to build towards making a show.

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

That doesn't mean they'll greenlight. Right? You still gotta get that final greenlight. Right? Because there's only x amount of shows green lit a year.

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

But having three of them there, I'd be shocked if at least one of them wasn't green lit. And Barnum Town is one of my favorite podcasts ever made. That'd be that'd be at top of my list. Vigilante has multiple seasons that can get picked up. It's not even just just one.

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

It's, you know, multiple seasons have an opportunity of being picked up as different shows. And Opportunities Hot could be could be a could be multiple seasons, but it also has elements of documentaries and so on, which doesn't make you as much money, but there's still very nice money for it. And, yeah, as I said, John, this is just this is pure cash flow. Right? You know, we we just collect the check.

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

You know? It's when I produced the movie 300, that production money, I still get I still got checks on it 21 years later. Right? I just got a check for Spiderwick Chronicles. You know?

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

That money just keeps flowing through, and every time it goes back in the system. Now, obviously, it's not nearly as big as it used to be, but it it's money that gets paid to you for the rest of your life.

[Sean McGowan, MD & Senior Research Analyst at Roth Capital Partners, LLC]

Okay. So every day, there's something that reminds me that I'm getting older, and the the idea that 300 was twenty one years ago is the thing that's gonna make me feel older. Thank you. Appreciate it.

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

Yeah. Yeah. No. I feel old with you.

[Sean McGowan, MD & Senior Research Analyst at Roth Capital Partners, LLC]

The a little bit more color on that reality show. Can you just tell us, like, what what kind of show are we talking about? Did you is it a is it a, you know, physical athletic competition show? Like, you know, this is sport?

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

Like the Olympics. Like the Olympics. They'll they'll be a long jump. They'll be well, the beauty of this is no one's getting hurt.

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

Right? No one's getting injured. Right? And the faces, right, aren't just there for a couple of minutes of a fight. Right?

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

They're there for hours at a time, and they're collaborating over a full weekend of this. And you'll read about it shortly. It'll be done in Los Angeles. It'll be done at a major stadium. Right?

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

It'll be done with, you know, some of the best people in the industry, and you're gonna see reality names of some of the biggest stars stars, you know.

[Sean McGowan, MD & Senior Research Analyst at Roth Capital Partners, LLC]

Battle of the network star brought back from the seventies. Right? That that kind of thing?

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

Exactly.

[Sean McGowan, MD & Senior Research Analyst at Roth Capital Partners, LLC]

That?

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

Exact Exactly. Literally to a t. You hit it right in the nose.

[Sean McGowan, MD & Senior Research Analyst at Roth Capital Partners, LLC]

Got it. See, it pays to be old sometimes. And where would that revenue be?

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

That revenue is at LiveOne.

[Sean McGowan, MD & Senior Research Analyst at Roth Capital Partners, LLC]

Okay. A couple of other questions. So when will the queue be out?

[Ryan Carhart, VP, CFO, Controller, Treasurer & Secretary at LiveOne]

We're on track to file tomorrow. You should see it tomorrow.

[Sean McGowan, MD & Senior Research Analyst at Roth Capital Partners, LLC]

Okay. Figure that. Okay. And just to clarify, Rob, when you were talking about the $50,000,000 in revenue over the next twelve months and you said more 3Q and 4Q. I assume you meant fiscal 3Q and and 4Q?

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

Yep.

[Sean McGowan, MD & Senior Research Analyst at Roth Capital Partners, LLC]

Okay. Alright. That's it for me. Thank you very much.

[Operator]

And mister Carhart and mister Allen, I will turn the call back to you for any additional or closing remarks that you have.

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

Yes. I wanna thank everyone for taking the time and taking the call and and just, you know, reiterate that the company has just bought back another 300,000 plus shares. We also bought back a lot of PodcastOne shares. We still have 5 and a half million dollars remaining on our buyback. Right?

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

We will be prudent and smart about we use that capital. And as I articulate on this, I truly believe this is the most exciting time for the company in many years where we have tremendous amount of optionality and tremendous amount of upside. And, you know, these partnerships, Amazon partnership, streaming Fortune two fifty company, s and p 100 company. Right? We're really a 500 company.

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

We really put ourselves in a position where that b to b business, right, which is what I built my entire career on, really feels like it's building that momentum. The flywheel is building and revenue is coming from different places. We got a lot to make up with Tesla. Alright? That that doesn't happen easily, but this team will will come through as they always do, and and we'll prove ourselves shortly.

[Robert Ellin, Founder, CEO & Chairman at LiveOne]

And I just wanna I just wanna, again, just tell you how proud I am of my team of not only surviving this, but coming out of it and coming out of it strong again. And this should be a really exciting next six months for this company.

[Operator]

Ladies and gentlemen, this does conclude today's teleconference, and we do thank you all for your participation. You may now disconnect your lines.

Participants

Executives

• Ryan Carhart, VP, CFO, Controller, Treasurer & Secretary
• Robert Ellin, Founder, CEO & Chairman

Analysts

• Barry Sine, Analyst at Litchfield Hills Research
• Jon Hickman, MD - Equity Research at Ladenburg Thalmann
• Brian Kinstlinger, MD, Director - Research & Head - Technology Research at Alliance Global Partners
• Sean McGowan, MD & Senior Research Analyst at Roth Capital Partners, LLC