LiveOne, Inc. (NASDAQ:LVO), a company in the retail-eating sector, announced today the departure of Craig Foster from its board of directors. Foster, who also served on the Audit Committee and the Nominating and Corporate Governance Committee, resigned effective October 4, 2024, to focus on other professional commitments.
The company, headquartered in Beverly Hills, California, stated that Foster's resignation was not due to any disagreements with LiveOne's operations, policies, or practices. In response to the vacancy, LiveOne plans to appoint one or more current independent board members to the Audit Committee and the Nominating and Corporate Governance Committee. Additionally, the company will initiate a search for a new qualified board member to fill Foster's role.
LiveOne's stock, trading under the ticker LVO on The NASDAQ Capital Market, may see investor reaction to this change in board composition. The company's next steps include identifying a suitable replacement that aligns with its strategic direction and governance standards.
In other recent news, LiveOne has announced several significant developments. The company has expanded its partnership with Tesla (NASDAQ:TSLA), integrating their streaming service into Tesla vehicles and launching LiveOne 2.0, a new platform version. This move is expected to potentially triple LiveOne's Average Revenue Per User (ARPU). The company has projected consolidated revenue to be between $120 million and $135 million for fiscal year 2025.
LiveOne has also reported Q1 fiscal 2025 revenues of $31.9 million and adjusted EBITDA of $5.1 million for its Audio Division. 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.
In addition, LiveOne has entered a multi-year partnership with TextNow, offering TextNow users a year of LiveOne's Plus service at a reduced cost. The company has also extended the maturity date for its promissory note tied to an asset-backed loan credit facility with East West Bank to September 15, 2024.
Lastly, LiveOne has increased the prices of its subscription plans to support continuous product innovation and enhanced content experiences. The company 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 year-end.
InvestingPro Insights
LiveOne's recent board shake-up comes at a time when the company is facing financial challenges, as revealed by InvestingPro data. The company's market capitalization stands at a modest $66.75 million, reflecting its current position in the market. Despite a significant revenue growth of 18.81% over the last twelve months, LiveOne is not currently profitable, with a negative operating income of $4.91 million.
InvestingPro Tips highlight that LiveOne's stock price movements have been quite volatile, with the stock falling significantly over the last three and six months. This volatility could be a factor in the company's governance decisions and may influence investor sentiment following the board change.
On a positive note, analysts predict that the company will be profitable this year, which could provide some optimism for shareholders. Additionally, LiveOne operates with a moderate level of debt, potentially giving it some financial flexibility as it navigates this transition period.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for LiveOne, providing a deeper understanding of the company's financial health and market position.
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