LiveOne, Inc. (NASDAQ:LVO) Q3 2024 Earnings Call Transcript

Operator: [Operator Instructions] Our next question is from Thierry Willard from Water Tower Research. Your line is open. Please go ahead.

Thierry Willard: Yes. And you’ve already covered a lot of ground. So I just have just 1 question. You’re guiding to a very substantial jump in EBITDA for the fourth quarter. And I was wondering if you could give us some color how much of that is seasonal? Is it driven by a onetime deal? Or is it and what part of it is maybe leverage in the model?

Aaron Sullivan: So I’ll take Rob, and then you can jump in. So for Q4, as I mentioned earlier, we had a lot of kind of onetime noise in kind of Q2, Q1 — Q2 with a little bit leading into the current quarter on our efforts to spin out PodcastOne. So that’s behind us. So we’re expecting to see some cost savings there. As the audio business continues to grow into Q4, we just see additional contribution down to the down to the bottom line there. And that’s really kind of the 2 driving trends there in the EBITDA for our expected for Q4. I don’t know, Rob, if you have anything else to add?

Rob Ellin: Yes. I mean I would just say not PodcastOne. we had also filed a public offering for a Slack Radio to emerging to a Slacker, which we subsequently pulled because the market was so terrible, but also because the company is growing so fast, right, revenues and EBITDA. So we had the cost of 3 audits legal fees and so on is very expensive. And Aaron, who has just made CFO, he’s just done a great job of that, and a great job of managing it. And you’ll see — I think you’ll see those margins come back through this coming quarter.

Thierry Willard: So I mean if I summarize that, the EBITDA level you’re forecasting for the fourth quarter is maybe a sustainable level going forward and in kind of a new quarterly basis?

Aaron Sullivan: Yes. I mean our EBITDA, as you can see, and we don’t break down by quarter, but we did put out guidance for next year where we said our Audio business, we’re just going to do $130 million to $140 million, right, with $20 million to $25 million of EBITDA, right? So you’re starting to see some real traction and real move towards cash flow and bottom line.

Operator: We have no further questions. So I’d like to hand back to Rob Ellin for any closing or further remarks.

Rob Ellin: I just want to thank everyone and appreciate your time in a difficult market like this. This is a great time for our company and growth. We’re going to continue to buy stock. We’ll be able to buy stock in the next couple of days. Now if the earnings are often we’ll continue to buy stock. And if we’re going to trade down at these low levels, we’ll expand that buyback again if we need to. So I want to thank everyone and thank you for spending the time, and we appreciate your support in a tough market. .

Operator: Thank you, everyone, for joining today’s call. You may now disconnect your lines, and have a lovely day.