LiveOne shares soar 18% on Q4 results, cost and expense cuts
By Denny Jacob
Shares of LiveOne Inc. jumped 18% to 90 cents in after-hours trading on Tuesday after the company pared its fourth-quarter loss and said it was cutting costs, which would boost its annual savings to more than $23 million for fiscal year 2023.
The digital media company, which distributes and monetizes music and video-related content, narrowed its loss to $8.8 million, or a loss of 11 cents per share, for the three months ended March 31. , compared with a loss of $15.4 million, or a loss of 20 cents per share, a year earlier.
Revenues increased from $21 million to $23.4 million.
The company said it was implementing additional cost and expense reductions in operations and corporate overhead. LiveOne said it expects this to increase its previously implemented annual cost savings to more than $23 million in its fiscal year ending March 31, 2023.
LiveOne said it also settled approximately $5.5 million in debt and short-term debt for the current quarter ending Thursday.
Managing Director Robert Ellin said its audio business continues to improve due to growth in paying members through partnerships as well as increased advertising and sponsorships. Mr. Ellin also said his cost reductions have allowed the company to accelerate its schedule to achieve positive adjusted earnings before interest, taxes, depreciation and amortization through the current quarter.
The company said it continues to explore strategic alternatives to improve shareholder value, which it first announced in January 2021.
Write to Denny Jacob at [email protected]