via NewMediaWire -- PodcastOne (Nasdaq: PODC), a leading podcast
platform and a subsidiary of LiveOne (Nasdaq: LVO),
announced today its operating results for the second fiscal quarter
of its fiscal year ending March 31, 2024 (“Q2 Fiscal 2024”).
PodcastOne’s President and Co-Founder, Kit Gray, commented, “As
we continue to execute across all aspects of our business, we
expect to report both record revenue and record positive Adjusted
EBITDA in Fiscal 2024. Moreover, we remain opportunistic with
respect to acquiring accretive podcast shows and podcast
networks.”
Recent and Q2 Fiscal
2024 Highlights
- In September 2023,
LiveOne completed the spinout of PodcastOne as a separate publicly
traded Nasdaq company whereby approximately 4.2 million shares of
PodcastOne were issued to LiveOne shareholders as a Special
Dividend.
-
LiveOne currently owns approximately 81% of PodcastOne and it will
continue to consolidate PodcastOne’s financial results.
-
PodcastOne became the first podcast network to grant its podcast
talent and all company employees shares of PodcastOne stock as part
of its NASDAQ Listing
- PodcastOne
was ranked 10th in PODTRAC’s Podcast
Industry Top Publishers Rankings for October
2023 with a U.S. Unique Monthly Audience of ~6.0 million and
Global Downloads and Streams of ~34.7 million.
- PodcastOne has
increased its slate of exclusive shows to 177 original titles.
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Q2 Fiscal 2024 vs
Q2 Fiscal 2023 Results Summary (in $000’s, except
per share; unaudited) |
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Three Months EndedSeptember
30, |
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Six Months EndedSeptember
30, |
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2023 |
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2022 |
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2023 |
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2022 |
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Revenue |
|
$ |
10,516 |
|
|
$ |
8,497 |
|
|
$ |
21,153 |
|
|
$ |
17,213 |
|
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|
|
|
|
|
|
|
Operating income (loss) |
|
$ |
(1,426 |
) |
|
$ |
198 |
|
|
$ |
(1,233 |
) |
|
$ |
(283 |
) |
|
|
|
|
|
|
|
|
Total other income
(expense) |
|
$ |
(9,447 |
) |
|
$ |
(655 |
) |
|
$ |
(9,850 |
) |
|
$ |
(655 |
) |
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
(10,873 |
) |
|
$ |
(457 |
) |
|
$ |
(11,083 |
) |
|
$ |
(938 |
) |
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|
|
|
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|
Adjusted EBITDA* |
|
$ |
(528 |
) |
|
$ |
554 |
|
|
$ |
866 |
|
|
$ |
408 |
|
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Net income (loss) per share
basic and diluted |
|
$ |
(0.52 |
) |
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$ |
(0.00 |
) |
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$ |
(0.54 |
) |
|
$ |
(0. 01 |
) |
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Q2 Fiscal
2024 Results Summary Discussion
For Q2 Fiscal 2024, PodcastOne posted revenue of $10.5 million,
a 24.5% increase as compared to $8.5 million in the same period in
the prior year.
Q2 Fiscal 2024 Operating Loss was ($1.4) million compared to
Operating Income of $0.2 million in the second fiscal quarter for
its fiscal year ended March 31, 2023 (“Q2 Fiscal 2023”). The $1.6
million decrease in Operating Income was largely a result of an
increase in operating expenses.
Q2 Fiscal 2024 Adjusted EBITDA* was $0.5 million, as compared to
Q2 Fiscal 2023 Adjusted EBITDA* of $0.6 million.
PodcastOne's senior management will host a live conference call
and audio webcast to provide a business update and discuss its
operating and financial results beginning at 1:30 p.m. ET / 10:30
a.m. PT on Thursday, November 9, 2023.
Conference Call and Webcast:
WHEN: Thursday, November 9thTIME: 1:30 PM ET / 10:30 AM
PTDIAL-IN (Toll Free): (888) 350-3870DIAL IN NUMBER (Local): (646)
960-0308ACCESS CODE: 3329141
Replay Number:US (Local): (647) 362-9199Access
Code: 3329141
Webcast – Both the live webcast and a
replay can be accessed on the Investor Relations section of
PodcastOne's website at Events | PodcastOne.The webcast can
also be accessed
at: https://events.q4inc.com/attendee/855655388
About PodcastOne, Inc.
PodcastOne (Nasdaq: PODC) is a Los Angeles based
podcast network founded in 2012 by Kit Gray and Norm Pattiz
providing creators and advertisers with a full 360-degree solution
in sales, marketing, public relations, production, and distribution
delivering over 2.1 billion downloads per year with a community of
250 of the top podcasters, including Adam Carolla, Kaitlyn
Bristowe, Jordan Harbinger, LadyGang and A&E's Cold Case Files.
PodcastOne has built a distribution network reaching over 1 billion
listeners a month across all of its own properties, LiveOne
(Nasdaq: LVO), Spotify, Apple Podcasts, iHeartRadio, Samsung
and over 150 shows exclusively available in Tesla vehicles.
PodcastOne is also the parent company of LaunchpadOne, an
innovative self-serve platform developed to launch, host,
distribute and monetize independent user-generated podcasts. For
more information, visit podcastone.com and follow us
on Facebook, Instagram, YouTube and Twitter
at @podcastone. For more investor information, please
visit ir.podcastone.com.
Forward-Looking Statements
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: LiveOne’s reliance on one key
customer for a substantial percentage of its revenue; LiveOne’s and
PodcastOne’s ability to consummate any proposed financing,
acquisition, spin-out, special dividend, merger, distribution or
transaction, including the spin-out of LiveOne’s pay-per-view
business, the timing of the consummation of any such proposed
event, including the risks that a condition to the consummation of
any such event would not be satisfied within the expected timeframe
or at all, or that the consummation of any proposed financing,
acquisition, spin-out, merger, special dividend, distribution or
transaction will not occur or whether any such event will enhance
shareholder value; Slacker’s ability to list on a national
exchange; PodcastOne’s ability to continue as a going concern;
PodcastOne’s ability to attract, maintain and increase the number
of its users and paid members; PodcastOne identifying, acquiring,
securing and developing content; LiveOne’s intent to repurchase
shares of its and PodcastOne’s common stock from time to time under
LiveOne’s announced stock repurchase program and the timing, price,
and quantity of repurchases, if any, under the program;
PodcastOne’s ability to maintain compliance with certain financial
and other covenants; PodcastOne 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 PodcastOne’s subsidiaries; and
other risks, uncertainties and factors including, but not limited
to, those described in PodcastOne’s Annual Report on Form 10-K for
the fiscal year ended March 31, 2023, filed with the U.S.
Securities and Exchange Commission (the “SEC”) on June 29, 2023,
Quarterly Report on Form 10-Q for the quarter year ended June 30,
2023, filed with the SEC on August 15, 2023, and in PodcastOne’s
other filings and submissions with the SEC. These forward-looking
statements speak only as of the date hereof, and PodcastOne
disclaims any obligation to update these statements, except as may
be required by law. PodcastOne intends that all forward-looking
statements be subject to the safe-harbor provisions of the Private
Securities Litigation Reform Act of 1995.
* About Non-GAAP Financial Measures
To supplement our consolidated financial statements, which are
prepared and presented in accordance with the accounting principles
generally accepted in the United States of America ("GAAP"), we
present Contribution Margin (Loss) and Adjusted Earnings Before
Interest Tax Depreciation and Amortization ("Adjusted EBITDA"),
which are non-GAAP financial measures, as measures of our
performance. The presentation of these non-GAAP financial measures
is not intended to be considered in isolation from, or as a
substitute for, or superior to, operating loss and or net income
(loss) or any other performance measures derived in accordance with
GAAP or as an alternative to net cash provided by operating
activities or any other measures of our cash flows or
liquidity.
We use Contribution Margin (Loss) and Adjusted EBITDA to
evaluate the performance of our operating segment. We believe that
information about these non-GAAP financial measures assists
investors by allowing them to evaluate changes in the operating
results of our business separate from non-operational factors that
affect operating income (loss) and net income (loss), thus
providing insights into both operations and the other factors that
affect reported results. Adjusted EBITDA is not calculated or
presented in accordance with GAAP. A limitation of the use of
Adjusted EBITDA as a performance measure is that it does not
reflect the periodic costs of certain amortizing assets used in
generating revenue in our business. Accordingly, Adjusted EBITDA
should be considered in addition to, and not as a substitute for
operating income (loss), net income (loss), and other measures of
financial performance reported in accordance with GAAP.
Furthermore, this measure may vary among other companies; thus,
Adjusted EBITDA as presented herein may not be comparable to
similarly titled measures of other companies.
Contribution Margin (Loss) is defined as Revenue less Cost of
Sales. Adjusted EBITDA is defined as earnings before interest,
other (income) expense, income tax expense, depreciation and
amortization and before (a) non-cash GAAP purchase accounting
adjustments for certain deferred revenue and costs, (b) legal,
accounting and other professional fees directly attributable to
acquisition activity, (c) employee severance payments and third
party professional fees directly attributable to acquisition or
corporate realignment activities, (d) certain non-recurring
expenses associated with legal settlements or reserves for legal
settlements in the period that pertain to historical matters that
existed at acquired companies prior to their purchase date and a
one-time minimum guarantee to effectively terminate a live events
distribution agreement post COVID-19, (e) depreciation and
amortization (including goodwill impairment, if any), and (f)
certain stock-based compensation expense. Management does not
consider these costs to be indicative of our core operating
results.
With respect to projected full year 2024 Adjusted EBITDA, a
quantitative reconciliation is not available without unreasonable
efforts due to the high variability, complexity and low visibility
with respect to purchase accounting adjustments,
acquisition-related charges and legal settlement reserves excluded
from Adjusted EBITDA. We expect that the variability of these items
to have a potentially unpredictable, and potentially significant,
impact on our future GAAP financial results.
For more information on these non-GAAP financial measures,
please see the tables entitled “Reconciliation of Non-GAAP Measure
to GAAP Measure” included at the end of this
release.
PodcastOne IR
Contact:Kirin SmithPCG Advisory(646)
823-8656ksmith@pcgadvisory.com
PodcastOne Press
Contact:(310)246-4600Susan@Guttmanpr.com
Financial Information
The tables below present financial results for the three and six
months ended September 30, 2023 and 2022.
PodcastOne,
Inc. Consolidated
Statements of Operations (Unaudited)(In thousands,
except share and per share amounts) |
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Three Months Ended |
|
Six Months Ended |
|
|
September 30, |
|
September 30, |
|
|
|
2023 |
|
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|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
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|
|
Revenue: |
|
$ |
10,516 |
|
|
$ |
8,497 |
|
|
$ |
21,153 |
|
|
$ |
17,213 |
|
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|
|
|
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Operating
expenses: |
|
|
|
|
|
|
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Cost of sales |
|
|
9,057 |
|
|
|
6,328 |
|
|
|
17,279 |
|
|
|
12,909 |
|
Sales and marketing |
|
|
1,451 |
|
|
|
1,226 |
|
|
|
2,701 |
|
|
|
2,816 |
|
Product development |
|
|
28 |
|
|
|
43 |
|
|
|
55 |
|
|
|
108 |
|
General and administrative |
|
|
1,215 |
|
|
|
676 |
|
|
|
2,135 |
|
|
|
1,612 |
|
Amortization of intangible assets |
|
|
191 |
|
|
|
26 |
|
|
|
216 |
|
|
|
51 |
|
Total operating expenses |
|
|
11,942 |
|
|
|
8,299 |
|
|
|
22,386 |
|
|
|
17,496 |
|
(Loss) income from
operations |
|
|
(1,426 |
) |
|
|
198 |
|
|
|
(1,233 |
) |
|
|
(283 |
) |
|
|
|
|
|
|
|
|
|
Other income
(expense): |
|
|
|
|
|
|
|
|
Interest expense, net |
|
|
(654 |
) |
|
|
(1,382 |
) |
|
|
(2,247 |
) |
|
|
(1,382 |
) |
Change in fair value of derivative |
|
|
(8,793 |
) |
|
|
865 |
|
|
|
(7,603 |
) |
|
|
865 |
|
Other income (expense) |
|
|
- |
|
|
|
(138 |
) |
|
|
- |
|
|
|
(138 |
) |
Total other expense, net |
|
|
(9,447 |
) |
|
|
(655 |
) |
|
|
(9,850 |
) |
|
|
(655 |
) |
|
|
|
|
|
|
|
|
|
Loss before provision
for income taxes |
|
|
(10,873 |
) |
|
|
(457 |
) |
|
|
(11,083 |
) |
|
|
(938 |
) |
|
|
|
|
|
|
|
|
|
Provision for income
taxes |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Net loss |
|
$ |
(10,873 |
) |
|
$ |
(457 |
) |
|
$ |
(11,083 |
) |
|
$ |
(938 |
) |
|
|
|
|
|
|
|
|
|
Net loss per
share – basic and diluted |
|
$ |
(0.52 |
) |
|
$ |
(0.00 |
) |
|
$ |
(0.54 |
) |
|
$ |
(0.01 |
) |
Weighted average
common shares – basic and diluted |
|
|
20,714,161 |
|
|
|
147,984,230 |
|
|
|
20,357,080 |
|
|
|
147,984,230 |
|
PodcastOne, Inc.Consolidated Balance
Sheets (Unaudited)(In thousands) |
|
|
|
|
|
|
|
September 30, |
|
March 31, |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
(Unaudited) |
|
(Audited) |
Assets |
|
|
|
|
Current
Assets |
|
|
|
|
Cash and cash equivalents |
|
$ |
491 |
|
|
$ |
3,562 |
|
Accounts receivable, net |
|
|
9,693 |
|
|
|
6,876 |
|
Prepaid expense and other current assets |
|
|
967 |
|
|
|
1,006 |
|
Total Current
Assets |
|
|
11,151 |
|
|
|
11,444 |
|
Property and equipment, net |
|
|
236 |
|
|
|
242 |
|
Goodwill |
|
|
12,041 |
|
|
|
12,041 |
|
Intangible assets, net |
|
|
2,821 |
|
|
|
732 |
|
Related party receivable |
|
|
2,166 |
|
|
|
3,768 |
|
Total
Assets |
|
$ |
28,415 |
|
|
$ |
28,227 |
|
|
|
|
|
|
Liabilities and Stockholders’
Equity |
|
|
|
|
Current
Liabilities |
|
|
|
|
Accounts payable and accrued liabilities |
|
$ |
8,119 |
|
|
$ |
6,898 |
|
Bridge loan, net |
|
|
- |
|
|
|
7,155 |
|
Derivative liabilities |
|
|
- |
|
|
|
4,767 |
|
Related party payable |
|
|
2,426 |
|
|
|
2,288 |
|
Total Current
Liabilities |
|
|
10,545 |
|
|
|
21,108 |
|
Related party payable |
|
|
256 |
|
|
|
- |
|
Total
Liabilities |
|
|
10,801 |
|
|
|
21,108 |
|
|
|
|
|
|
Commitments and
Contingencies |
|
|
|
|
|
|
|
|
|
Stockholders’
Equity |
|
|
|
|
Common stock, $0.00001 par value; 200,000,000 shares authorized;
23,059,837 and 20,000,000 shares issued and outstanding as of
September 30, 2023 and March 31, 2023, respectively |
|
|
- |
|
|
|
- |
|
Additional paid in capital |
|
|
43,576 |
|
|
|
19,785 |
|
Accumulated deficit |
|
|
(25,962 |
) |
|
|
(12,666 |
) |
Total stockholders’ equity |
|
|
17,614 |
|
|
|
7,119 |
|
Total Liabilities and
Stockholders’ Equity |
|
$ |
28,415 |
|
|
$ |
28,227 |
|
|
|
|
|
|
PodcastOne, Inc.Reconciliation of Non-GAAP
Measure to GAAP MeasureAdjusted EBITDA*
Reconciliation (Unaudited)(In
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-RecurringAcquisition
andRealignmentCosts
(1) |
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
DepreciationandAmortization |
|
|
|
|
Other(Income)Expense
(2) |
|
(Benefit)Provisionfor
Taxes |
|
|
|
|
Net Income(Loss) |
|
|
Stock-BasedCompensation |
|
|
|
|
AdjustedEBITDA* |
|
|
|
|
|
|
|
|
Three Months Ended September 30,
2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
(10,873 |
) |
|
$ |
62 |
|
$ |
1,173 |
|
$ |
719 |
|
$ |
9,447 |
|
$ |
- |
|
$ |
528 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
(457 |
) |
|
$ |
56 |
|
$ |
300 |
|
$ |
- |
|
$ |
655 |
|
$ |
- |
|
$ |
554 |
|
|
|
|
|
|
|
|
Non-RecurringAcquisition
andRealignmentCosts
(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DepreciationandAmortization |
|
|
|
|
Other(Income)Expense
(2) |
|
(Benefit)Provisionfor
Taxes |
|
|
|
|
Net Income(Loss) |
|
|
Stock-BasedCompensation |
|
|
|
|
AdjustedEBITDA* |
|
|
|
|
|
|
|
|
Six Months Ended
September 30, 2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
(11,083 |
) |
|
$ |
123 |
|
$ |
1,257 |
|
$ |
719 |
|
$ |
9,850 |
|
$ |
- |
|
$ |
866 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
September 30, 2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
(938 |
) |
|
$ |
105 |
|
$ |
586 |
|
$ |
- |
|
$ |
655 |
|
$ |
- |
|
$ |
408 |
|
(1 |
) |
|
Other Non-Operating and Non-Recurring Costs include outside legal,
accounting and other professional fees directly attributable to
acquisition activity in the period, in addition to certain
non-recurring expenses associated with legal settlements or
reserves for legal settlements in the period that pertain to
historical matters that existed at certain acquired companies prior
to their purchase date and non-recurring employee severance
payments and to a lesser extent, a one-time minimum guarantee to
effectively terminate a live-event distribution agreement post
COVID-19. |
|
|
|
|
|
|
(2 |
) |
|
Other (income) expense above primarily includes interest expense,
net, change in fair value of derivative liabilities, forgiveness of
PPP loans, and loss on extinguishment of debt. These are included
in the statement of operations in other income (expense) and are an
add back to net loss above in the reconciliation of Adjusted
EBITDA* to loss. |
|
|
|
|
|
|
|
* |
See the definition of Adjusted EBITDA under “About Non-GAAP
Financial Measures” within this release. |
PodcastOne, Inc.Reconciliation of Non-GAAP
Measure to GAAP Measure Contribution Margin*
Reconciliation (Unaudited)(In
thousands) |
|
|
|
|
|
Three Months Ended |
|
|
September 30, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
Revenue: |
|
$ |
10,516 |
|
|
$ |
8,497 |
|
Less: |
|
|
|
|
Cost of sales |
|
|
(9,057 |
) |
|
|
(6,328 |
) |
Amortization of developed
technology |
|
|
(58 |
) |
|
|
(45 |
) |
Gross Profit |
|
|
1,401 |
|
|
|
2,124 |
|
|
|
|
|
|
Add back amortization
of developed technology: |
|
|
58 |
|
|
|
45 |
|
Contribution Margin* |
|
$ |
1,459 |
|
|
$ |
2,169 |
|
|
|
Six Months Ended |
|
|
September 30, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
Revenue: |
|
$ |
21,153 |
|
|
$ |
17,213 |
|
Less: |
|
|
|
|
Cost of sales |
|
|
(17,279 |
) |
|
|
(12,909 |
) |
Amortization of developed
technology |
|
|
(112 |
) |
|
|
(97 |
) |
Gross Profit |
|
|
3,762 |
|
|
|
4,207 |
|
|
|
|
|
|
Add back amortization
of developed technology: |
|
|
112 |
|
|
|
97 |
|
Contribution Margin* |
|
$ |
3,874 |
|
|
$ |
4,304 |
|
|
* |
See the definition of Contribution Margin under “About Non-GAAP
Financial Measures” within this release. |
PodcastOne (NASDAQ:PODC)
Gráfica de Acción Histórica
De May 2024 a Jun 2024
PodcastOne (NASDAQ:PODC)
Gráfica de Acción Histórica
De Jun 2023 a Jun 2024