LOS ANGELES - Digital media company LiveOne (NASDAQ: LVO) announced significant changes to its partnership with electric vehicle maker Tesla (NASDAQ:TSLA) on Tuesday. The updated agreement, effective today, will see Tesla integrate LiveOne's streaming service into its vehicles, replacing the existing streaming button with LiveOne's application.
The company also launched LiveOne 2.0, a new version of its platform that allows subscribers to access music across all devices. LiveOne anticipates that its 1.9 million subscribers will have the option to upgrade to Premium or Plus services, potentially tripling its Average Revenue Per User (ARPU).
Starting December 1, 2024, Tesla will cease subsidizing LiveOne products for some customers. However, LiveOne plans to offer all Tesla customers discounted music packages. Tesla is set to continue payments to LiveOne monthly for grandfathered users indefinitely.
LiveOne's CEO, Robert Ellin, expressed optimism about the partnership's potential, stating that the conversion opportunity for Tesla owners to upgrade services is expected to drive growth and new revenue streams. Ellin also noted the company's control over data and anticipated increase in ARPU.
In light of these developments, LiveOne has adjusted its financial guidance for fiscal year 2025. The company now projects consolidated revenue to be between $120 million and $135 million, with consolidated Adjusted EBITDA ranging from $8 million to $15 million. LiveOne also reaffirmed its $12 million stock buyback program and announced the retirement of 4.2 million shares, reducing the total outstanding shares to approximately 94 million.
Based in Los Angeles, LiveOne is known for its creator-first approach and offers a variety of services, including Slacker Radio, PodcastOne, and live and virtual events. Its platforms are accessible on multiple devices and applications, aiming to deliver premium content and experiences worldwide.
The information in this article is based on a press release statement from LiveOne. Statements in the press release that are not historical facts are considered forward-looking and involve risks and uncertainties that could cause actual results to differ materially from those projected. LiveOne has cautioned that these forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those expressed or implied by such statements.
In other recent news, LiveOne Inc. reported robust growth in its Audio Division for Q1 fiscal 2025, with record-breaking revenues of $31.9 million and adjusted EBITDA of $5.1 million. Despite a consolidated net loss of $1.7 million, the company forecasts strong revenues of $130 million to $140 million and adjusted EBITDA between $20 million to $25 million for the Audio Division in the upcoming fiscal year. LiveOne also announced a multi-year partnership with TextNow, aiming to enhance the digital lifestyle of TextNow users by offering them a year of LiveOne's Plus service at a reduced cost.
LiveOne has also extended the maturity date for its promissory note tied to an asset-backed loan credit facility with East West Bank. The new maturity date is set for September 15, 2024. The company also announced an immediate increase in the prices of its subscription plans, a move aimed at supporting continuous product innovation and the delivery of enriched content experiences.
LiveOne is also expanding its B2B partnerships and membership base, with four major deals signed and plans to close partnerships with companies ranging from $1 billion to $1 trillion market cap by the year-end. The company has also expanded its stock buyback program to $12 million, having already purchased over 4.4 million shares. These are some of the recent developments in the company.
InvestingPro Insights
As LiveOne (NASDAQ: LVO) embarks on this significant partnership with Tesla, investors should consider some key financial metrics and insights from InvestingPro. The company's revenue growth of 18.81% over the last twelve months and 19.13% in the most recent quarter aligns with its ambitious projections for fiscal year 2025. This growth trajectory supports CEO Robert Ellin's optimism about the potential of the Tesla partnership to drive further expansion.
However, it's important to note that LiveOne's stock has faced challenges recently. InvestingPro Tips indicate that the stock has taken a significant hit over the last week and month, with a 1-month price total return of -45.47%. This volatility could be attributed to market reactions to the company's strategic shifts and financial projections.
Despite these short-term fluctuations, analysts predict that LiveOne will be profitable this year, according to another InvestingPro Tip. This forecast aligns with the company's adjusted financial guidance and could signal a turning point for LiveOne's financial performance.
For investors seeking a more comprehensive analysis, InvestingPro offers 9 additional tips that could provide valuable insights into LiveOne's financial health and market position. These additional tips could be particularly useful in evaluating the potential impact of the Tesla partnership on LiveOne's future performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.