LiveOne, Inc. Common Stock LD Micro 20th Annual Main Event Conference

Thank you, everyone. Good afternoon. How many of you here have a music subscription? Spotify, Apple? How many have two? We are one of seven music subscription platforms, right, left in North America. Listen, watch, attend, engage, transact. We just reported consolidated revenues of $19.4 million and adjusted EBITDA of $4.3 million. Full year, last year, consolidated revenues were $77 million with adjusted EBITDA of negative $900,000. We have turned that dramatically. We have achieved 52% year-over-year reduction in operating expenses through aggressive AI-driven efficiencies and a streamlined workforce. We have gone from 350 people down to about 88. I think we are at about 80 today. Really amazing. Fiscal guidance, $85 million to $95 million in revenues, $8 million to $10 million of EBITDA. It is a huge swing. We expanded our stock repurchase program from $7 million to $12 million.

We have about $5 million left, and we bought $1 million-plus last quarter. We increased our cash by over $3.3 million, increased our stockholders' equity by almost $7 million, and reduced our liabilities by $5.5 million. As you look at our portfolio of assets here, Slacker Radio, our pure play audio, very much like Spotify or Sirius. We are the low-end provider. We are sort of the Walmart of the business at the lowest price because we are a white label solution for many partners that you will hear about. Our podcast business just finished number 6 for the second month in a row. Over 1 billion impressions. We have over 200 podcasters, and the revenues are ramping up and growing fast. As you look at the model, our flywheel allows for many different things, many different revenue streams.

This is the first time in my career. Most of you know me from Digital Turbine or know me from i1.com. I took both of those businesses, my team took it, one to $860 million, sold to Barry Diller, and Digital Turbine to a multi-billion dollar valuation, have had one business model. In this, we have five that each has an opportunity of being $1 billion or better. Music subscription, podcast, live streaming/pay-per-view, merchandise, and music publishing. That flywheel is just simply the more talent, the more traffic, the bigger the audience, the more revenue streams that drive from it. As you look at our numbers, they are pretty staggering. 6.6 billion listens. Over 2,900 artists streamed on our platform. 148 live-streamed events. 2,200 hours of live music. Our partnerships continue to grow.

Our platforms, we have just announced partnerships with LG, Samsung, AT&T to go along with Paramount and Netflix, to go along with the great partnerships that we already have. PodcastOne has over 190 exclusive shows with over 3.9 billion podcast downloads annually across 350 hours of weekly distributed content. We are in 220 countries, and we have live-streamed to 334 million people. As you look at our growing franchises, we have just announced a partnership with Dr. Phil. Dr. Phil, probably the second most important television host behind Oprah, was making $50 million to $70 million with CBS for almost 15 years, has now gone into the podcast business, and I think he is going to be just an amazing force with that. He brought all of his content, all of his library with him to our platform.

We have the likes of LadyGang and Baby Mamas No Drama and almost every housewife, you can dream of from New York to L.A. Adam Carolla, one of our stars since day one, the first podcaster in history and the Guinness Book of Records holder for most downloads. Slacker Radio, we have 50 million tracks. We have 500 crafted music channels. We have 400,000-plus hours of podcast episodes. We have 100 million downloads. 55 in net promoter score. Our audio listens are over 82 billion. 67% music subscription growth by 2030. The TAM in this industry is exploding. Goldman Sachs just came out with a new report. That report gave guidance that streaming will grow by over 30% by 2030. We will continue to be a participant in that and continue to grow off the backs of these massive distribution deals.

Podcast business, 350-plus episodes produced on a weekly basis. 19 million monthly downloads. 200,000-plus advertisers. 5.8 million monthly uniques. 600 million downloads, and again, very proudly, we moved from when we bought the company number 20 to number six in the world. We have grown those revenues. We bought the company in 2021. The beginning of COVID, was doing $20 million in revenues. We finished last year at $61 million in revenues, and it looks like we have nice growth again this year, probably in the 15%-20% range, and continue to both grow in distribution, in size, as well as revenues. As you look at the advertisers, our advertising network. You are reading about Netflix numbers missing terribly today, and their advertising business just has not taken off. Amazon fighting the same thing. We have a massive distribution of advertising.

Even though we only do $80 million in revenues, look at the list of advertisers on our platform, and that is because our team, led by Sue McNamara, was the head of CBS Radio, and then post-CBS Radio, she went on to run Howard Stern's, all of Howard Stern's sales. She has literally done just an amazing job of building a lineup of the most prolific advertisers around the world. Our pay-per-view business, we are just starting to relaunch after COVID. Had to wait and take a step back and refocus and make sure we kept our eye on the ball on where the revenues were, our cost savings were, and get the business in line with where it was. But our pay-per-view business, we have just announced a massive deal across boxing, of which we did over $30 million in revenues and over $5 million in EBITDA pre-COVID.

Now we are back in the space, and we are back in with a partner where we take a feed from television, no cost to us, and we just generate traffic and audience and revenues. You will start to see music, podcasts, music and podcast live pay-per-view events that will be added to the lineup. CPS, been a struggle. When we bought it, we bought it right in the beginning of COVID. It was supposed to be part of our live business. When we took down the live business during COVID, we also did the same in merchandise. We have now refocused that merchandise business, took 150 bodies out of it, and only focused on celebrity brands. Celebrities meaning podcasters, musicians, social media stars who have an audience. We can launch a product with them very cheaply, and if it takes off, we step on the gas and hit it.

As you all know, you're reading about every one of these crazy celebrity stories building billion-dollar revenue streams, whether it's MrBeast, whether it's Kim Kardashian, and they continue to grow and continue to build. We've got the luxury of already knowing that podcasters, 50% of the revenues comes from direct response. If you can sell direct response, you can sell a product. As you look at our capabilities, we match up extraordinarily well with each of our competitors. iHeart's at $6 billion, Sirius is at $25 billion, Spotify's at $90 billion, and you go to trillion-dollar companies. With us, we're sitting at a $35 million market cap, way down from where it was.

Right now, we're buying back a ton of stock because we have all the same things as them, except we have way more original programming and way more skills in that our patents are, of course, 46 different areas, including pay-per-view, live streaming, and tokenization. Our global distribution just continues to grow. As you look at this lineup, this is changing so fast. Just in the last eight weeks, sorry, last eight months, we've announced partnership with AT&T, LG, Samsung, VIZIO, and we've just announced a four-year deal with one of the biggest retailers in the world. That retailer has over 50 million monthly paying subscribers. We are white labeling and launching that by December 31st, which could dwarf the size of any partnership this company's had, including Tesla. Tesla was 50 million, they only had 2 million cars. This is 50 million-plus monthly paying subscribers.

They already have their credit cards and just need to add this on, and some of it will come, like Tesla, will come directly from that retailer. Some of it will come on their high-end customers, they'll pay us directly. Their mid-tier customers, they'll pay a portion of it, and the lower-end customers, they'll offer it for free with advertising. That advertising will be that retailer's advertising, so you have guaranteed revenues coming from it, and we're expecting that launch anywhere between November 15th and December 31st. As you look at the team, we have a world-class team. Craig Christensen, our CFO. She's coming off taking the company 22 acquisitions, went to $700 million of value. Sue McNamara, we've already talked about. Kit Gray came out of iHeart, whole background in him.

Josh Hallbauer, who ran Roc Nation's publishing, built it for us, has built that for us as well. As you look at our board, it is one of the most prolific boards maybe in the history of media and technology. Led by Ramin Arani. Ramin was the Fidelity, ran the Puritan Fund, one of the great hedge fund managers, asset managers, one of the top in the industry, and subsequently went on to be the first investor in Spotify, Goop, Peloton, and many other great asset sets. He now sits on the board of Brunello Cucinelli, and he sits on our board. Ken Solomon built the Tennis Channel, took it from zero to $135 million EBITDA. Patrick Wachsberger is the architect who took Lionsgate up by over $20 billion in value when he merged his company into Lionsgate. Stock sat for eight to 10 years.

When he came in as chairman, stock went through the roof. Kris Wright runs a little division of Nike called Jordan Brand. Steve Bornstein built ESPN, built the NFL Network. To wrap it up, the highlight of it is, our revenues are ramping back up after the loss of Tesla. We restructured the business. We took costs out of the business. We are ramping back up $19.3 million of revenues, adjusted EBITDA of $4.3 million. Our audio business alone did $6 million in EBITDA for the quarter. We reported a full year 2026 consolidated revenues of $77.1 million and adjusted EBITDA of negative $900,000. Our podcast business, record revenues, $16 million in revenues, EBITDA $1.6 million, 172% year-over-year growth. Podcasts hit a record number six on Podtrac second week in a row, which was just announced this week, surpassing the likes of Disney, Fox, Warner, and many others.

Our fiscal 2027 guidance, $85 million-$95 million in revenues and EBITDA of $8 million-$10 million. That is a $15.6 million swing from last year. We are positioned to continue eliminating. We have eliminated over $15 million of liabilities, all converted at $7.5 a share, or three times the stock price today. We closed a $10 million financing eight months ago at $7.5. Those are the lowest prices we ever did, all at three times where the price is today. We just announced a really exciting podcast. We acquired the rights to "The Magnificent Others" with Billy Corgan. If you are watching it, watch closely. We announce a new podcast almost every two weeks. As you see those podcasts, it is really simple. These are mostly existing podcasts.