LiveOne Provides Business Update on PodcastOne Spin-out, Balance Sheet and Paid Subscriber Growth
Record Paid Membership Growth Adding 136,000 Since January 1, 2023, a 40% Year-Over-Year Increase
Surpassed 2 Million Paid Members**
Current Cash Position of $10 Million and $27 Million in Short Term Assets
Commenced Previously Announced $2 Million Stock Buyback
Extends Record Date to April 7, 2023 for its Planned Special Dividend of a Portion of PodcastOne’s Equity
LOS ANGELES, CA - (NewMediaWire) - March 21, 2023 - LiveOne (Nasdaq: LVO), an award-winning, creator-first music, entertainment, and technology platform, announced today a business update on the planned PodcastOne spin-out, balance sheet, paid subscriber growth, and share buyback.
“We are excited about the planned spin-out of PodcastOne as it will be the only pure play publicly traded podcast company. We are extending the record date to April 7, 2023 as we continue to work closely with regulators and the exchange to ensure a seamless transaction. We expect the special dividend and trading of PodcastOne to begin in April," said Robert Ellin, CEO and Chairman of LiveOne.
LiveOne also reported a current cash position of $10 million, which provides the company with ample resources to support its growth and investment initiatives. "Having a solid balance sheet is crucial to any business, and we believe we are in a strong financial position to support our growth initiatives,” Ellin remarked.
Since January 1, 2023, paid subscribers have increased by 136,000, a year-over-year increase of 40%, and now exceed 2 million monthly paying members.** "We are thrilled to see such tremendous growth in our paid subscribers in such a short period. It's a testament to the quality of content and service we provide to our listeners," said Brad Konkol, Head of Slacker Radio.
Furthermore, LiveOne expects to reach 2.75 million paying monthly subscribers by fiscal year 2024.** This expected growth indicates a strong demand for the company's content, podcasting platform, and efforts to enhance the listeners' experience. "Our team has worked tirelessly to improve our offerings and create a better user experience for our subscribers. We're proud of our results and look forward to continuing this momentum," Mr. Konkol added.
About LiveOne, Inc.
Headquartered in Los Angeles, California, LiveOne, Inc. (NASDAQ: LVO) (the "Company") is an award-winning, creator-first, music, entertainment and technology platform focused on delivering premium experiences and content worldwide through memberships and live and virtual events. The Company's wholly-owned subsidiaries include Slacker Radio, a membership music streaming service, and PodcastOne, which generates more than 2.3 billion downloads per year, 350+ hours distributed weekly, and 14M+ monthly unique listeners. Nearly all new Tesla EVs sold in the U.S. come with a paid membership to LiveOne’s Slacker Radio (that now includes PodcastOne) which is paid by Tesla. As of March 3, 2023, the Company has accrued a paid and free ad-supported membership base of approximately 2.85 million**. The Company was awarded Best Live Moment by Digiday for its “Social Gloves” PPV Event, and has been a finalist for 8 more awards, including Best Live Event, Best Virtual Event, Best Overall Social Media Excellence, and Best Original Programming from Cynopsis and Digiday. As of February 9, 2023, the Company has streamed over 2,900 artists, has a library of 30 million songs, 600 curated radio stations, over 300 podcasts/vodcasts, hundreds of pay-per-views, personalized merchandise, released music-related NFTs, and created a valuable connection between fans, brands, and bands. The Company's other wholly-owned subsidiaries include PPVOne, Gramophone Media, Palm Beach Records, Custom Personalization Solutions, and LiveXLive, and the Company’s other majority-owned subsidiaries are Drumify and Splitmind. LiveOne is available on iOS, Android, Roku, Apple TV, Amazon Fire, and through OTT, STIRR, and XUMO. For more information, visit liveone.com and follow us on Facebook, Instagram, TikTok, and Twitter at @liveone.
All statements other than statements of historical facts contained in this press release are "forward-looking statements," which may often, but not always, be identified by the use of such words as "may," "might," "will," "will likely result," "would," "should," "estimate," "plan," "project," "forecast," "intend," "expect," "anticipate," "believe," "seek," "continue," "target" or the negative of such terms or other similar expressions. These statements involve known and unknown risks, uncertainties and other factors, which may cause actual results, performance or achievements to differ materially from those expressed or implied by such statements, including: the Company's reliance on one key customer for a substantial percentage of its revenue; the Company's ability to consummate any proposed financing, acquisition, spin-out, special dividend, distribution or transaction, including the proposed special dividend and spin-out of PodcastOne, Slacker or its pay-per-view business, the timing of the consummation of such proposed event, including the risks that a condition to consummation of such event would not be satisfied within the expected timeframe or at all, or that the consummation of any proposed financing, acquisition, spin-out, special dividend, distribution or transaction will not occur or whether any such event will enhance shareholder value; PodcastOne's or Slacker’s ability to list on a national exchange; the Company's ability to continue as a going concern; the Company's ability to attract, maintain and increase the number of its users and paid members; the Company identifying, acquiring, securing and developing content; the Company's intent to repurchase shares of its common stock from time to time under its announced stock repurchase program and the timing, price, and quantity of repurchases, if any, under the program; the Company's ability to maintain compliance with certain financial and other covenants; the Company successfully implementing its growth strategy, including relating to its technology platforms and applications; management's relationships with industry stakeholders; the effects of the global Covid-19 pandemic; uncertain and unfavorable outcomes in legal proceedings; changes in economic conditions; competition; risks and uncertainties applicable to the businesses of the Company's subsidiaries; and other risks, uncertainties and factors including, but not limited to, those described in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2022, filed with the U.S. Securities and Exchange Commission (the "SEC") on June 29, 2022, Quarterly Report on Form 10-Q for the fiscal quarter ended December 31, 2022, filed with the SEC on February 14, 2023, and in the Company's other filings and submissions with the SEC. These forward-looking statements speak only as of the date hereof, and the Company disclaims any obligations to update these statements, except as may be required by law. The Company intends that all forward-looking statements be subject to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995.
** Included in the total number of paid members for the reported periods are certain members which are the subject of a contractual dispute. LiveOne is currently not recognizing revenue related to these members.
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