Q1 2022 Livexlive Media Inc Earnings Call

[music].

Good afternoon, and welcome to the life by Live Media, Inc. Q1 fiscal 2022 financial results and business update conference call all participants will be in a listen only mode.

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After todays presentation, there will be an opportunity to ask questions to ask a question you May Press Star then one on your telephone keypad.

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Please note this event is being recorded.

I would now like to turn the conference over to Mike Cortez Ari.

Gave vice President and Chief Financial Officer. Please go ahead.

Thank you Danielle good afternoon, and welcome to live by lives Medias business update and financial results Conference call for the company's first quarter ended June 32021.

Presenting on today's call are Rob <unk>, CEO, and chairman Dermot Mccormack, President and myself, Michael for Terry The company's Chief Financial Officer.

I would like to remind you that some of the statements made on today's call are forward looking and are based on current expectations forecasts and assumptions that involve various risks and uncertainties. These statements include but are not limited to statements regarding the future performance of the company, including expected future financial results.

And expected future growth of the business.

Actual results may differ materially from those discussed on this call for a variety of reasons.

Please refer to the company's filings with the SEC for information about factors, which could cause the company's actual results to differ materially from these forward looking statements, including those described in its annual report on Form 10-K for the year ended March 31, 2021, and subsequent SEC filings.

You will find reconciliations of non-GAAP financial measures to the most comparable GAAP financial measures discussed today in the company's earnings release, which is posted on its investor Relations website at IR line by line Dot Com and the company encourage you to periodically visit its IR website for important content.

The following discussion including responses to your questions contain time sensitive information and reflects management's view as of the date of this call August 12.

And except as required by law. The company does not undertake any obligation to update or revise this information after the date of this call.

I'd like to highlight to investors that this call is being recorded the company is making it available to investors and the media via webcast and a replay will be available on its website in the Investor Relations section shortly following the conclusion of the call.

Additionally, it is the property of the company and any redistribution retransmission or rebroadcast of the call or the webcast in any form without the company's express written consent is strictly prohibited.

Now, let me turn the call over to live by like CEO, Rob that one.

Thank you Mike.

Good afternoon, everyone and thank you for joining us today for our fiscal 2022, 22 first quarter business update.

We continue to focus on the long term objective of building and owning sustainable valuable franchises IP and transformative technologies.

Three years ago, we took the company public doing $7 million in revenues I am proud to say my team has delivered for the 13th straight quarter record revenues of $38.8 million by far the biggest quarter in the history.

Amazingly, we now have six times, each with multibillion dollar upsides, they're all growing together a perfect storm. We are building a brand recognition and using music subscription subscription live events livestreams OTT merchandise, both digital and in hard and podcasts to drive our flywheel.

Today live my life has grown and evolved into the leading Cowen first platform focused on their super fans.

Yeah.

Almost $39 million in revenues with one of our live events other than social lives.

We had to push back or made a bad spring awakening.

Yeah Colby to October.

As well as our 40 to 50 live events.

And we're seeing telltale signs that this is starting to open up.

As we were getting close to the end of Covid and the opening of live events, we were able to use our first slide that could prove a flywheel.

At first in person and global widely screening pay per view event post COVID-19, social gloves Battle Road platforms selected our flywheel is a true zagunis modern media fan interaction listen watch 10 engage and transact social gloves reached over three.

5 billion engagements.

Continues to grow by the day.

Ex lives social media platforms garnered a triple digit year over year increase with total engagements over 671% and Aberdeen engagements post up 14, 193%.

So she belonged to landmark hundred 36000 pay per views, that's equivalent to selling out Madison Square Garden six times. This is a tremendous feat for a first time event. This in addition to the thousands of fans who are in attendance hard rock Stadium. In addition, social clubs drove a staggering 9300 new.

Paid subscribers for the night, which represents a conversion rate of nearly 7% it bodes very well for us as live events return.

Yeah.

We are very proud of the phenomenal music lineup featuring some of the biggest names in hip-hop Lotto D. J College that Joe Ninos and little Baby music is in our DNA.

Together these explosive performers with pop culture stores showcase a lot of the slide is the traveler blazer and producing and creating this new form of entertainment connecting sports music, social media as well as entities.

Proving our model showcase from selling merchandise to stadium packaging and F. Ts pay per view livestream, it having our podcast and talent will be met and bringing our key franchises to life like by light presents lives one music lives and self made it's all about us leveraging events to.

Build long term franchise.

Partnerships grew with two year, two multiyear multimillion dollar deals with hard rock International and Ed If T liter side Bettina.

BTG partnership with rock with hard rock International would provide us with the new platform to break exclusive and original wide pop culture events together, we can amplify and distribute these the pay per view events to selected integrated resorts and hard rock cafes properties nationwide, the new alliance will directly tap into <unk>.

<unk> flywheel business.

Again listen watch attend engage and transact now with a global partner.

That's hard rock.

Our wholly owned Securities podcast, one had over 238 billion podcast downloads and the trailing 12 months period ending June 30th in its franchise of exclusive shows has grown to more than 235 with 35, new podcasts now productions more than 300 podcast.

<unk> per week.

Through a series of acquisitions, both buy and Bill we have created improved our flywheel of wholly owned businesses that work together and complementary and synergistic fashion.

Subscription radio we have our slacker radio live streaming live next slide through an incredibly robust platform live X live events with react entertainment podcast with podcast, one merchandize through custom personalized solutions and a growing roster of original content franchises that are distributed through like slide 24, our Ot.

T channel that now reaches a proud 294 million people as we described in her audience and listen watch tend to engage and transact.

I'm pleased to report the first quarter ended June.

June 32, 'twenty, one revenue increased 269% to a record $38.8 million.

<unk> consecutive quarter of record revenues, 13th control consecutive along with 175% increase in contribution margin, which is a record $7.8 million.

Given the momentum we see in nearly all of our business verticals. We are excited to increase our previous revenue guidance for the current fiscal year March 31st two between 115 and $125 million.

And increase our increased <unk> 5 million from our prior guidance with adjusted operating income with our operation segment to between six and $12 million.

As of June 30th 2021, our cash and cash equivalents was the highest in the history of the company at $24.7 million.

Over the past 12 months, we have derisked the business.

Finally, our revenue streams with the launch of pay per view. The addition of substantial advertising sponsorship revenue component as it is.

Result of acquisition of podcast, one and the acquisition of E Commerce Company Cps and our acquisition in your early twenties of live music event business react presents in fact, the past year, we have successfully diversified our revenue streams and reduced our concentration in subscription from 84% revenue to just 23.

Sent a already use this quarter.

We recently announced that one of the most iconic live music that spring Awaking Music Festival, which is a Midwest largest all electronic music Festival is scheduled to return in Chicago October 2nd and third the festival Peach over each of 70 plus artist Cross unique stages events is ready officially sold out the first years.

But your general admission and its VIP and only limited quantities of tier two tickets are still available.

Expand their spring awakening franchises to four events. This year like slide that react presents returned to live events. Currently includes a fully stocked lineup of over 100, plus life shows featuring over 200 artists performing of the physical and of course, our fiscal 2022.

Through our distribution and partnerships, including our nine year partnership with Tesla cars, we are able to grow our paid subscribers to 1.1.96 million just under $1.2 million active monthly users the acquisition a podcast one in July.

Continues to be meaningful and accretive to live my life podcast, one was ramped up as an IP development and production with its recent partnership with award winning top creators such as Patrick Wachsberger like picture Perfect Federation.

Producer with some of the biggest movies in the World doing Howard's Empire, Meteogroup, Barbara Schroeder, Melissa Mccarthy Kelly.

Kelly Mclear podcast, one continues to broaden its platform offerings for scripted non scripted content across multi genre is like towards the package, resulting audio IP for television film and streaming platforms.

Podcasts ones entire network of podcasts program is one of the most exclusive streaming.

Selections of podcasts being made available for the first time.

Via the Facebook App in the United States. Additionally, we are planning to bring our podcast into the realm of live events, which celebrated social influencers and podcasts.

Jordan jealous.

Since launching our pay per view platform in May 2020, <unk> slide has now generated $21 million in pay per view.

Sponsorship merch sales <unk> lab has produced over 100 pay per view events and its recent announced Cape Ops Joy Rockies club for the largest global Asian Music Festival.

Establishing <unk> as the premier destination for K pop.

<unk> pay per views continues to drive new revenues sharing models for both artists and logic slide digital ticket sales stand tipping digital meet and greets merchandize sales N F. Ts sponsorships, enabling waters to go directly to consumers using the <unk> platform.

In our last call I spoke about our significant investment and commitment to original programming content.

I would now like to introduce my partner and President of the property Dermot Mccormack to provide a few more details on our original programming efforts.

Thank you, Rob and I'd like to thank you for your continued leadership and congratulate the team on what it's.

It's been a static part I would say that this quarter, we brought home the vision.

And live by lives, we enhance our flywheel and we brought it to life with groundbreaking life events.

We're building a portfolio of brands that all complement each other with synergies and original.

Not unlike what I saw in the early days of managing Viacom's digital portfolio, we were on a path to become a true media conglomerate built for new realities and the opportunities that exist in today's ever changing landscape.

One of the things I'm. Most excited about is the evolution of our original content IP and production capabilities, we are doubling down on our own proprietary events and franchises specifically in this quarter, we invested $15.5 million in developing and implementing new IP and content, which drove revenues in the current quarter.

Won't contribute to future revenues.

The past year. We have launched shows is that we believe has a chance to become valuable franchises going forward, including self made a new online talent competition.

And earlier this month, we launched a self made podcast position in audio competition to find the next big podcast Star podcast won the competition will be driven by fans and podcast ones panel of judges as they listened to see who will take the top prize a podcast and contract with podcast, one and a total package worth over $100000.

Including promotion across the network.

We've also launched the Lockdown awards, our celebration of live music and coming this fall we have a new edition called the breakout awards.

We've also brought the world it's not these tongue in cheek luck at the artist actors and nominees who Bucks now got award shows from the Grammys three Oscars hosted by the Ross Master himself Jeffrey Ross, We continue to grow our digital festivals music lives with two iterations in the last 18 months and another installment coming in September live from.

Las Vegas.

A lot of music series music lives on and live My life presents continued to expand and have been a really big hit with advertisers.

One of the few companies during Covid the broadcasting produced everything from our live music concerts and artist basement. So again.

I'm changing sports and music Mega events, and an NFL stadium.

And my experience in my career it is rare in a media company that you'd get to advance a new format.

But we really feel the social music in boxing event, we produced in Miami last quarter was a watershed moment credibly everyone took notice we brought together Influencers music sports in a way not seen before and we feel we have set the space to continue to lead the way and how this type of entertainment evolves, we have already announced the female.

The version of the new format called self made knockout.

Pay per view events that will feature a boxing icon headlined by women from social media music sports technology, and fashion with the Winter's buying for over $1 million and prizes.

Expect to be announcing a date and location for this event soon which we believe will be in the fourth quarter of the current calendar year.

We have been excited to see how these tentpole pay per view events supercharge, our flywheel from digital and physical ticket sales to sponsorship to subscriptions and merchandize sales stay tuned for more of these unique hybrid events to be added in the coming weeks and months.

Of significant importance as the exclusive partnership we have with Tesla truth that arrangement our life. Our life subscription is pre installed as the default radio service in every new Tesla car sold in America and live our lives is paid directly by Tesla for those subscriptions.

<unk> live App is also pre installed in 85 other automobiles as well as across major carriers, Verizon Sprint and T mobile, which allows slacker subscribers listen in their cars and on their mobile devices.

Previously previously mentioned that we see a significant opportunity to expand like by light Slacker radio subscription business into Europe and compete for the opportunity to become the default radio service for a number of European automakers are licensing dialog with the music labels continues and we hope to have some news on that front before.

Yes.

And finally types of this unique and honorable original content, we are extremely happy to see the combination of our advertising and sales forces close more $1 million deals than in any other time in our history as rfps continue to grow in size.

I would now like to hand, it over to our CFO, Mike One theory, who will review our Q1 results.

Thanks, Jeremy let me spend a few minutes to provide a brief overview of our fiscal 'twenty to Q1 results.

Consolidated revenue was a record $38.8 million up 269% year over year from $10.5 million in the Q1. Prior year. This increase in revenue is due to our successful acquisitions of podcast one in Cps, coupled with increases in pay per view and sponsorship revenue related to the social.

Pay per view events as well as our revenue associated with the production of the event.

We ended Q1 with 1.162 million paid subscribers. Please note that included in the total number as of June 30th or certain subscribers, which are subject to a contractual dispute.

We are currently not recognizing revenue.

This is the first quarter since the dispute arose in Q2 last year that our subscription revenue was up on a year over year basis.

The acquisitions of podcasts, one in Cps were accretive to our operating results enhanced our working capital position and provided diversification to our revenue base in Q1, our revenue was comprised of 23% subscription and 77% advertising sponsorship merchandising pay per view ticketing and events compared.

To 84% subscription and 16% and sponsorship licensing advertising and pay per view tickets from the prior year.

Contribution margin in the quarter was a record $7.8 million up 175% year over year from $2.8 million.

The year over year improvement was driven by our live events and related sponsorship revenue.

And the additions of podcast, one mcps, which resulted in a $5.7 million increase year over year.

This improvement was partially offset by a $700000 charge for additional music royalties as a result of a multiyear audit by one of the labels.

Adjusted operating loss in Q1 was $1.75 million compared to 55000 in prior year.

Note. The prior year quarter includes the benefit of various cost saving measures totaling $1.3 million that were implemented by the company. During the height of the COVID-19, pandemic, which were not in effect. During this quarter adjusted operating income for our operation segment was $1.2 million essentially flat year over year as the <unk>.

<unk> of the increased revenue from our live events and related sponsorship revenue was offset by the charge noted above related to the multi year music.

Royalty audit adjusted.

Adjusted operating losses related to Cps due to the seasonal nature of their business and the investments in content and marketing within podcast one in our life streaming business units, which totaled $2.2 million in the quarter.

Adjusted operating loss for corporate was $2.9 million, an increase of $1.7 million, which is primarily attributable to the prior year's austerity measures higher personnel and other public company costs, given the expansion of the company's operations on a year over year basis, and payroll taxes related to stock based.

<unk>.

Even though we've passed the one year anniversary of podcast, one acquisition and the six month anniversary of the Cps acquisition, we continue to look for areas of efficiencies and consolidation.

Back in March we announced the completion of our integrations, a podcast, one cps and react which we expected to generate over $3.4 million in annual savings. We have just implemented a series of additional measures that are expected to generate an additional $2.2 million in annual savings, bringing the total annual savings up to.

$5.6 million.

Of which approximately 800000 has been realized prior to June 30, with the remainder to flow through in future periods.

Turning to the balance sheet, we ended Q1 with cash of $24.7 million, including restricted cash of a 135000 up from the $18.8 million, we had a year ago.

The year over year increase was largely driven by net cash proceeds from financing activities of $6.2 million and $800 million or sorry, 800000 from net cash inflows from operations.

Offset by investing activities of approximately $1.1 million during the quarter.

Our networking capital deficit improved by $3.6 million during the quarter, which was the result of the forgiveness of $2.5 million of paper PPP loans received in the prior year and continued efforts to improve working capital efficiency of the remaining $1.1 million.

Our cash position as of August 11 was $18.6 million.

Lastly in June we entered into a revolving line of credit facility with East West Bank with a borrowing capacity of up to $7 million.

And an interest rate of prime plus <unk>, 5% in connection with this credit facility. The holders of the company's senior secured convertible notes agreed to extend the maturity date of their notes and subordinate their security interest in all of the Companys assets.

And with that let me hand, it back over to Rob.

Yes. So thank you guys and obviously, a terrific quarter, but will be more to come and really the excitement that Dermot was articulating.

With record labels, we extended our contracts with Sony Records.

Our balance sheet now and the strength than it is in relation to the labels. It's now time to expand globally.

Now time to expand other car companies. We're now in over 80 cars and they start to do more white label type deals like Tesla. So it's a really exciting time for the company. We're looking forward to our live events really starting to take off in October.

You can see as I said over 100 live events. It was really a special time for us as we lost substantial revenues for almost 18 months now as we come back to.

Adding that loud music, so I want to thank everyone I want to thank everyone for being supportive.

And sticking with this company through Covid and I'm really proud of my team and my management.

We haven't gone all the way down in line of what they've accomplished and what they built and I think we've gone from $7 million company. They now doing $38 million a quarter is really exciting. So thank you everyone. Thank you everyone I look forward to questions.

We will now begin the question and answer session to ask a question you May Press Star then one on the telephone keypad.

Thank you speaker fence speakerphone, please pick up your handset before pressing the keys.

To withdraw your question. Please press Star then two.

The first question comes from Barry Sine with Spartan Capital Securities. Please go ahead.

Hey, good afternoon, gentlemen, and congratulations.

Question on social gloves, so presumably that drove the big surge in where a lot of the big surge in revenue that we saw if you could give us a little bit more breakdown on how that that revenue occurred and then I guess, we will see some of this in the Q later on but.

What the costs are that go with an event like that and the reason I ask you just reiterated that you have the fall event I guess it would be called self made a knockout and then you also have spring awakening equinox if we.

Look at social clubs, we analyzed that what you just reported would those upcoming events be comparable or are we looking at two more major events coming later on in the fiscal year that would be similar to what you just reported.

Well, yes, so spring awake spring awakening as always been.

We ask trophy property, right and does anywhere from $6 million to $10 million of revenues and we've just expanded and brought back into the city of Chicago. So fully expect that Theyre in and then we've already announced the second one so yes. The second one will be a female version of social gloves and.

What we've seen the traction is absolutely spectacular very similar reaction if not stronger reaction.

To the audience and the potential buyers of this and then fully expect theyre going to be many more social events like this white boxing is only one component of it what we built here is right. We built here as we built the franchise and as we go out now will match actually own the IP and this will be IP led by live so we couldn't be more excited.

We expect it to be extremely profitable and a lot of the hard work was done in the first of that.

And if you could help us understand looking at the consolidated numbers how.

How much of that was driven by social gloves, how what's the profitability of an event like that and again. The reason I ask is so I can.

I have some basis to forecast the upcoming events that you have.

Yeah. So we're not breaking down the exact numbers, but I would say that you can you can kind of deduct.

Mike If you want to jump in here, Yeah. We said, there's 136000 tickets assortments around $50 a ticket right add some sponsorship at some money from hard rock and you can basically come to pump to very close to the numbers.

And really start thinking about you know.

The success of this event rightly suggest a where the IP is going going forward right and how much of that hard work was done already in building. The first one because the production came out absolutely spectacular and so we're really excited to be an excellent you want to add anything to that Mike I think one other thing just to kind of point onto that.

Sure.

Especially you would like to just one you wanted to get back to the profitability of it and we wanted to make sure. We're very careful of not commenting on any specific items, but one of the things. We wanted to make sure that was very important to this is that it proved out the capabilities of our team and of our tech stack. So when Rob says this thing went off flawlessly.

Can imagine a 136000 tickets being sold the vast majority and I mean, the very vast majority of those all took place probably within the last eight hours before that event took place.

With a good portion of that taking place within the last couple of hours. So the fact that we were able to handle that volume flawlessly.

As a testament to the team and also to the investment that we've made in that tech stack as part of this event and so therefore I think it's a little unfair to comment on profitability on this one item when we were using it to really prove out the.

Capabilities of the team and the process itself.

Okay, and I guess there'll be a little more visibility when the Q comes out you'll you'll get a little break out there as well.

There'll be some yes, okay alright, that's my question I don't want to hog the call. Thank you.

The next question comes from Brian Kesseler Kids Lang Lang Killinger from Alliance Global Partners. Please go ahead.

Great. Thanks, so much.

Clearly.

The revenue is fantastic with social gloves, and I agree it was groundbreaking but I guess given the low gross margin.

The adjusted EBITDA loss, which I don't think I would've expected with $38 million of revenue.

One of the lessons learned that you can take away. So that you become profitable when these events happen in the future and you put up these high watermark revenue numbers and what could drive that gross margin to be maybe lower than what it looks like the street would've thought.

Michael I'll take that yeah, well, let me, let me kind of talk through kind of maybe what I'll do is I'll talk of it on a on a year over year basis, and maybe look at it also a quarter sequential.

From a consolidated overall.

Operating income perspective.

So for the year.

When we look back at this quarter.

We overcame a couple of things. So one you have the addition of Cps and podcast one.

The combination of those results are about $1 million in negative operating loss and thats really kind of geared towards the seasonal nature of their business.

With the plus the investments that we've been making as we've commented before about $2.2 million in content and marketing on top of that to really drive the back half of the year and into the future into fiscal 'twenty three.

When it comes to those units.

Especially given it's a retailer there's a huge seasonal impact to their results and so you expect operating loss in what would be this Q1 and Q2 with a huge profit margin to come through in Q3, which is the calendar year end, which is the holiday sales period.

In addition, we have the royalty audit, which hit us for about 700000.

Which was completely unexpected and we had to come over the year over year, $1.3 million and austerity measures that we implemented last year, which was really <unk>.

Merrily around 50% pay cuts taken by all employees and those 50% pay cuts went into effect during this quarter.

So there is some headwind versus the year over year and then we picked up some.

As a result of the <unk>.

The operations are from the Cps and podcast one perspective.

But if you look at that that really kind of gets you back to.

What would have been in my eyes, and I don't want to do pro forma and math for a whole lot of people to get in myself with M D.

Reg issue.

But you could get back to a more reasonable same store model.

Which would you gave your profitability well north of $3 million.

Okay, and then my only follow up the $2.2 million in content and marketing spend.

Sounds like those are expenses that ran through the P&L in the first quarter are those recurring and you'll have.

2 million.

Plus of quarterly increase expenses for maybe what you would've thought at the beginning of the year.

Just how did that play out thank you.

I would tell you that that's a slight increase.

Quarter sequential in Q1, we had about $1.2 million.

Those expenses and remember and this is no different than any other media company at this point in time, Viacom if you listen to their earnings same similar story with Comcast.

World start to reopen back up and people are investing back in content and that's what we want to make sure that we're there front in line to be able to maintain the growth of this company accordingly.

And I think that's part of the reason further around the whole content strategy is why we wanted to make sure that Dermot joined this call. So Dermot the person who is responsible for all of our content was able to give his perspectives on it.

And Mike Let me jump in on the question.

Question here, which is <unk>.

From a background of working by places like the dnas and huge tadpoles incorporation of drives year round business.

When you do an inaugural event, especially one no one in the world than we've ever done before nobody's ever even attempted that.

On a level not a lot and you asked about what did we learn we learned.

And some production efficiencies in marketing.

Apply next and why we lead the way now is because we're the first ones to do those learnings. So this was a lot about learnings and we're going to apply them.

In key areas as we go forward.

Great. Thanks, so much.

As a reminder, if you have a question please press star one.

Next question comes from Jeremy Lou of D. A Davidson. Please go ahead.

Hey, Thanks for taking my questions. So I have one question and one follow up first question from your vantage point, what percentage of festivals are expected to return to have having a live event in 2021 and 2022 versus 2019.

Well, we can't we can't you know, it's a very it's a very tricky question. Obviously, the varian is kicking back in Brighton scary.

A G. Just came out with today that you must be vaccinated to go in but the exciting part is in the United States is.

Half the country has been vaccinated and this could be way higher soon right. So I don't think they're going to shut them down I think very few who are going to get shut down I think they're just going to put implement rules in place that is going to protect people and make it a safer environment and so we don't we don't see a lot of Telltale signs in fact, we were on the phone with a leading government.

People on Chicago, and they have no intention of shutting the current events down in Chicago and as you know Lollapalooza just happening which is the biggest event in Chicago. So we're pretty excited about it.

They are all going to be some cost that occur with COVID-19.

And as you know we pushed spring awakening of October so.

You're going to have to be smart about it we're going to have to.

And we're in a unique way, but I couldn't tell you exactly what percentage I don't think many in the United States are going to get shut down.

Okay. Thanks, and then Rob you were early in understanding that consumers would re bundle their content rather than limit themselves to one or one to three asphalt services. So what are the implications of this re bundling for live my life.

Well as you know, we hired Jpmorgan as our bankers too.

To explore all options for the company.

There's been a lot of people circling around right. We have a lot of interesting cams within this company you have six of them that any one of them could be a potential candidate to be.

Wire the whole business one of the divisions to spin out of division right. So I think we're right in the center of the storm.

I think my team has just done a brilliant job of surviving and building right to where live is coming back and I. Just think live is going to really enhance that.

Why wheel and give us the opportunity to prove just like sports did 30 years ago, it's really not that where that smart. We just we just we just started this early and built it and built it around duration right. When you build around duration and if you've got everyone had an opportunity to watch when we get it social gloves and watch what we've done at rock in Rio for years, It's the best production in the World.

And when you're doing that everybody in content is looking for content. Our average cost of content is still under $20000 an hour right at that cost per hour.

We're really compelling partner.

<unk> a to distribute our content as you can see by our new Facebook deals right two of them one Facebook to stream all of our pay per view events number two for Facebook to take them on our podcast as they build their audio platform.

<unk> announced our podcasts across Samsung, but we're going to keep growing that 294 million number right many platforms around the globe.

Great. Thanks for taking my questions.

Thank you.

Seeing that there are no further questions I would like to turn the conference back over to Rob Allen CEO and chairman for closing remarks.

Thank you everyone.

As a closing remark.

My history, when I started I wanted dotcom as you broke $100 million in revenues, you're starting to get very different institutional holdings, you've got a lot of interest around the company.

We didn't plan to sell it at.

At that time, when we sold it to Barry Diller, there that active corp. The same thing with digital turbine Intuit as you break $100 million of revenues. It's now trading at trading at close to $8 billion valuation I feel the same thing here, where the momentum is growing we have a world class team with World Class management team, we have a world class board professionals that are built tens.

Billions of dollars of companies. This is the most exciting company I've ever been involved and it's also the most fun company I've ever been involved with our great partners Great team here that anyone's story yesterday, Chris Wright, who joined our board was just named the head of all of Michael Jordan brands at Nike, we're going to keep bringing great people together, we're going to keep focused on <unk>.

First Super fans, if we continue to grow that right in five years will be a $10 million plus subscribers and will have a $1 billion plus in revenue. So thank you everyone and thank you for spending the time and I appreciate everyone's support.

The conference has now concluded. Thank you for attending today's presentation you may now disconnect.

Okay.