New York, New York--(Newsfile Corp. - April 5, 2021) - PCG Digital -- With over one million subscribers entering 2021, LiveXLive (NASDAQ: LIVX) is employing a multi-channel approach to accelerate their growth. The goal is to reach the 10 million mark by 2030, when the total available market (TAM) for music subscribers is estimated to be $1.2 billion.
On February 11th, LIVX released a report that showed record growth for an eleventh consecutive quarter. Revenue for the quarter increased 96.9% YOY to $19.1 million. The total projected revenue for fiscal 2021 is expected to be between $64 million and $69.5 million.
That's not all. Shareholder equity increased by $23.5 million, and cash was increased from $5.2 million to $17.6 million during the quarter. All of this occurred after two major acquisitions in 2020. PodcastOne was acquired in July, Custom Personalized Solutions (CPS) in December.
Music Content Distribution with LiveXLive Slacker Radio
Every great product or service needs a delivery mechanism. For LIVX, that's Slacker Radio. They had over two billion audio listens in 2020, 63 billion since their inception. With an ever-increasing hunger for subscription music, those numbers are expected to increase this year.
Ranked as the best quality music app and Editor's Choice by PC Magazine, one of the keys to success in 2021 is their listeners' desire for live music. Obviously, live music was limited during the COVID-19 pandemic, but 74% of concert fans said they will continue to watch livestreaming events even after physical events resume. LiveXLive, Slacker Radio and React will be streaming these shows in-person.
PodcastOne Adds Another Dimension and New Listeners
Widely regarded as a premier music distributor, LIVX diversified their offering in 2020 with the acquisition of PodcastOne, a company that grossed $27.5 million on its own in 2019. PodcastOne generates more than 2.25 billion downloads per year with 400+ episodes distributed per week across a stable of hundreds of top podcasts.
This was a big win. The founder of PodcastOne, Norm Pattiz, is the brains behind the explosive growth of Westwood One Radio, the largest audio network in America. The acquisition does more than just diversify the LIVX product line, it brings over existing listeners. PodcastOne's "LadyGang" podcast recently hit one hundred million downloads. In addition to Keltie Knight, Becca Tobin and Jac Vanek from LadyGang, the network also features podcasts from Adam Carolla, Pitbull, Brett Favre, Kaitlyn Bristowe, Todd and Julie Chrisley, Michael Irvin, and Mike Tyson. Followers of these shows now have full access to music on Slacker Radio.
CPS Acquisition Helps Expand Social Media Footprint
Custom Personalized Solutions (CPS) is an eCommerce platform that generated $20 million in revenue in 2020 prior to the LIVX acquisition. The deal was done debt-free and comes with approximately $5.2 million in working capital.
The financial numbers on this acquisition look great, but they are not the only benefit to the deal. LiveXLive is planning to use the CPS platform to partner musical artists and influencers with large networks to improve their social media footprint.
CPS also provides a direct-to-consumer eCommerce platform, opening up new opportunities for monetization. The global licensed merchandise market is expected to reach $400 million in the next two years, so this partnership will further help accelerate growth at LIVX.
New Networks Increase Sponsorship and Advertising Revenue
Offering integrated channels as a venue to reach younger listeners has already paid off for LIVX in their multi-year livestream partnership with iHeartRadio. With podcasts and eCommerce, they are now able to offer expanded sponsorship opportunities.
Some of the bigger names that have gotten behind the LIVX growing media empire are Pepsi, McDonald's, Porsche, Mike's Hard Lemonade, and Capital One. These are in addition to integrated sponsorship and merchandise programs with top name artists and musicians.
The Company also has a deal with Tesla to provide a one-year paid subscription to Slacker Radio in all new electric Tesla models sold in the United States. That number is expected to be roughly 750,000 units, a 50% increase over Tesla sales numbers from last year.
Stock Market Outlook for LIVX in 2021
Subscription revenue, which was 94% of revenue in February 2020, is now just 44% of revenue. The other 56% is coming from advertisers. Revenue for 2022 is estimated at $90 million to $100 million, and that's assuming no revenue from live events, which are still on hold. The 2020 acquisitions of PodcastOne and CPS have facilitated a diversification in revenue streams that makes the company outlook promising.
In summary, most analysts covering the Company rate it as a strong buy, and investors can potentially see a nice return on LIVX in 2021 if fundamentals continue to improve.
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