LiveOne, Inc. (NASDAQ:LVO) Q1 2024 Earnings Call Transcript

Unidentified Company Representative: It’s all encompassing. But there is a significant per side flat fee when you initially sign up for that. And if you look at all the other artists that are involved in that Madden project, they’re not artists that do low fees. It really is the most coveted placement in the video game space, in my opinion.

Sean McGowan : Okay. A couple of other questions. So is the — Rob, is the trading — a little bit more color on the Slacker trading, like you said, a little sooner than you thought, assuming that it actually happens then? Or is that what you guys had in mind? .

Robert Ellin : Yes. I mean I think you’re going to get a lot of clarity in the next 2 weeks, right? We signed the merger agreement a couple of weeks ago. I happen to be with Byron and the Hampton’s right now, is with them yesterday and just finalizing. So we’re ready to go. We have to — our audit check to be filed right to Slacker, it will be the first time we’re filling them, which would be really exciting, right? People are going to get to see the numbers. And I’ve been in the audio music business for a long time. I own [indiscernible] previously. And as you know, Sean, had an amazing run with the stock in it. What happened, no one could ever make money. We make a ton of money, right? This is printing cash. And obviously, having the Tesla partnership is — and this being our tenth year in business with them and Tesla having a spectacular year is all exciting and obviously just an amazing partnership, right?

And that’s going to continue to grow our B2B deals, our pipeline of B2B, you’ll probably see on LinkedIn and out there, we’re out there aggressively even though we cut — we consolidated 150 people in staff and took $31 million of cost out. We’re hiring B2B people, revenue, salespeople, revenues people because right now, the flywheel is explosive, so we’re going to be hiring nonstop. And we’re seeing telltale signs that I said I’m going to blow through the 10 million subscribers now before 2027. And we see telltale signs, any one of those, one more automobile company, one international carrier right comes along, one social media company. All these guys have been partners over the years. And as you know, I built digital turbine off the backs of carriers.

There’s no reason that we can’t pick up a carrier and really partner with them and give them content and give them the full 360 play. And the fact that we’re the lowest price and the fact that we are willing to white label like we do with Tesla, we’re the only ones in the world that can do that. There’s only 15 companies in this space. It’s growing to 1.7 billion paying subscribers and probably 3/4 of the world will have the music subscription. I think we’re going to take a chunk of that space. And I think you’re going to see another car company, you’re going to see international rights. You’re going to see them all coming this year. And finally, we’ve got the balance sheet in shape and the flywheel is kicking in so fast that there’s no reason that we can’t land a huge B2B partnership very shortly.

Sean McGowan : Okay. Last quick question maybe for Aaron. When do you expect the 10-Q to be filed?

Aaron Sullivan : Sean, we expect Monday 14.

Robert Ellin : And Sean, just before you jump, just one more thing I forgot to add to it. One of the things that I said to the Street is when we announced the deal, right, to merge into the SPAC, I wouldn’t do that deal unless just like PodcastOne, we had other roll-up acquisition opportunities that could fit in there. So that may give us expansive growth and, again, at super accretive acquisition valuations, and there’s some great assets right now that are coming available. So you may see that coming as well.