LiveOne Revenue Drops in Q3, Full-Year Guidance Lowered

Music streaming company LiveOne saw its revenue drop 6% to $29.4 million in its fiscal third quarter ended Dec. 31, the company announced Thursday (Feb. 13). Revenue in the audio division fell 1% to $27.1 million. The drop led LiveOne’s operating loss to widen to $5.1 million from $800,000 in the prior-year period.

In the nine-month period, LiveOne’s revenue of $95.1 million was up 8.7% from the prior-year period. Operating loss in the period more than doubled, however, to $7.3 million from $3.5 million.

LiveOne, which has both a Slacker-branded music streaming service and numerous business-to-business relationships, ended the quarter with 800,000 Tesla “subscribers” — 475,000 of which are ad-supported. The company used to have preferred status with Tesla, powering the in-auto music streaming app that was free to Tesla owners, but that relationship changed in 2024. Now, LiveOne is no longer free to Tesla owners, although the electric vehicle manufacturer will continue to pay grandfathered LiveOne accounts in perpetuity.

Now, LiveOne sells discounted packages to Tesla owners. “The conversion opportunity has enormous upside by offering Tesla owners an opportunity to upgrade and have access on all devices at discounted priority pricing,” LiveOne CEO Robert Ellin said in a statement in October. “We’ll drive growth, unlock new revenue streams, own our data, and increase ARPU [average revenue per user].”

But the third-quarter decline caused LiveOne to lower its expectations for the full year. While announcing earnings, the company updated its guidance for full-year revenue and adjusted earnings before interest, taxes, depreciation and amortization. LiveOne now expects revenue for the full fiscal year ending March 31 to be $112 million to $120 million, down from $120 million to $135 million. Adjusted EBITDA is expected to be $6 million to $10 million compared to previous guidance of $8 million to $15 million.

The revised guidance caused LiveOne shares to fall 18.6% to $0.96 on Thursday. That put LiveOne’s share price 55% below its 52-week high of $2.15.

On Wednesday (Feb. 12), PodcastOne –which LiveOne spun off in 2023 while retaining approximately 72% of its outstanding shares — announced that quarterly revenue increased 22% to $12.7 million and net loss narrowed to $1.6 million from $2.6 million.