LiveXLive Media, Inc. (LIVX) Q1 2022 Earnings Call Transcript | The Motley Fool


Logo of jester cap with thought bubble.

Image source: The Motley Fool.

LiveXLive Media, Inc. (NASDAQ:LIVX)
Q1 2022 Earnings Call
Aug 12, 2021, 4:30 p.m. ET


  • Prepared Remarks
  • Questions and Answers
  • Call Participants

Prepared Remarks:


Good afternoon, and welcome to the LiveXLive Media, Inc., Q1 fiscal 2022 financial results and business update conference call. All participants will be in a listen-only mode. [Operator instructions] After today’s presentation, there will be an opportunity to ask questions. [Operator instructions] Please note, this event is being recorded.

I would now like to turn the conference over to Mike Quartieri, executive vice president and chief financial officer. Please go ahead.

Mike QuartieriExecutive Vice President and Chief Financial Officer

Thank you, Danielle. Good afternoon, and welcome to LiveXLive Media’s business update and financial results conference call for the company’s first quarter ended June 30, 2021. Presenting on today’s call are Rob Ellin, CEO and chairman; Dermot McCormack, president; and myself, Michael Quartieri, the company’s chief financial officer. 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 of the business. 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-K for the year ended March 31, 2021, and subsequent SEC filings. You will 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 its Investor Relations website at

And the company encourages you to periodically visit its IR 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, August 12. 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 the 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, retransmission, or rebroadcast of the call or the webcast in any form without the company’s expressed written consent is strictly prohibited. Now let me turn the call over to LiveXLive’s CEO, Rob Ellin.

Rob EllinChief Executive Officer and Chairman

Thank you, Mike. Good afternoon, everyone, and thank you for joining us today for our fiscal 2022 first-quarter business update. We continue to focus on the long-term objective of building and owning sustainable, valuable franchises, IP, and transformative technologies. Three years ago, we took the company public, doing $7 million in revenues.

I’m proud to say my team has delivered for the 13th straight quarter record revenues of $38.8 million, by far the biggest quarter in history. Amazingly, we now have six TAMs, each with multibillion-dollar upsides. They’re all growing together a perfect storm. We are building a brand recognition and using music subscription, live events, live streams, OTT, merchandise, both digital and hard, and podcast to drive our flywheel.

Today, LiveXLive has grown and involved into the leading talent-first platform focused on their super fans. Almost $39 million in revenues with none of our live events other than social ones. We’ve had to push back our main Event Spring Awakening via COVID to October, as well as our 40 to 50 live events, and we’re seeing telltale signs that this is starting to open up. As we are getting close to the end of COVID and the opening of live events, we were able to use our first live event to prove our flywheel.

Our first in-person and global live streaming pay-per-view event post-COVID-19, Social Gloves, Battle of the Platforms, cemented our flywheel is a true zeitgeist of modern media fan interaction: listen, watch, attend, engage and transact. Social Gloves reached over 3.5 billion engagements and continues to grow by the day. LiveXLive social media platforms garnered a triple-digit year-over-year increase, with total engagement over 671% and average engagements post up 1,493%. Social Gloves and Landmark 136,000 pay-per-views.

That’s equivalent to selling out Madison Square Garden six times. This is a tremendous feat for a first-time event. This is an addition to the thousands of fans who are in attendance at Hard Rock Stadium. In addition, Social Gloves drove a staggering 9,300 new paid subscribers for the night, which represents a conversion rate of nearly 7% that bodes very well for us as live events return.

We are very proud of the phenomenal music lineup, featuring some of the biggest names in hip-hop, Latto; DJ Khaled, Fat Joe, Migos, and Little Baby. Music is in our DNA, bringing together these explosive performers with pop culture stars, showcase live is the trailblazer in producing and creating this new form of entertainment, connecting sports, music, social media, as well as NFTs. Proving our model, showcase from selling merchandise at the stadium, packaging NFTs, pay-per-view live streaming, having our podcasting talent at the event and bringing our key franchises to life, LiveXLive Presents, LiveZone, Music Lives, and Self Made, it’s all about us leveraging events to build long-term franchises. Partnerships grew with two year — two multiyear, multimillion-dollar deals with Hard Rock International and NFT leader, Cybertino.

The strategic partnership with Hard Rock International will provide us with the new platform to bring exclusive and original live pop culture events. Together we can amplify and distribute these via pay-per-view events to select and integrated resorts and Hard Rock Cafes properties nationwide. The new alliance will directly tap into LiveXLive’s flywheel business, again, listen, watch, attend, engage and transact now with a global partner as Hard Rock. Our wholly owned subsidiary, PodcastOne, had over 2.38 billion podcast downloads in the trailing 12 months period ending June 30.

And its franchise of exclusive shows has grown to more than 235, with 35 new podcasts, now productions, more than 300 podcast episodes per week. Through a series of acquisitions, both buy and build, we have created and improved our flywheel of wholly owned businesses that work together in a complementary and synergistic fashion. In subscription radio, we have our Slacker Radio, live streaming, LiveXLive through an incredibly robust plus platform, LiveXLive events with React entertainment, podcasting with PodcastOne, merchandise through custom personalized solutions, and a growing roster of original content franchise that is distributed through LiveXLive’s 24-hour OTT channel that now reaches a proud, 294 million people. As we described in our audience, listen, watch, attend, engage and transact.

I’m pleased to report the first quarter ended June 30, ’21, revenue increased 69% to a record $38.8 million, our consecutive quarter of record revenues, 13th consecutive, along with 175% increase in contribution margin, which is a record $7.8 million. Given the momentum we see in nearly all of our business verticals, we’re excited to increase our previous revenue guidance for the current fiscal year, March 31, to between $115 million and $125 million. An increase of $5 million from a prior guidance with adjusted operating income with our operations segment to between $6 million and $12 million. As of June 30, 2021, our cash and cash equivalents were the highest in the history of the company at $24.7 million.

Over the past 12 months, we have derisked the business by diversifying our revenue streams with the launch of pay-per-view, the addition of substantial…


Read More:LiveXLive Media, Inc. (LIVX) Q1 2022 Earnings Call Transcript | The Motley Fool