Q1 2025 LiveOne Inc Earnings Call
Speaker Change: Ladies and gentlemen, thank you for standing by. Today's conference call will begin shortly. If you would like to register a question at any time, please press star 1 on your telephone keypad. Thank you.
Operator: School will begin shortly. If you would like to register a question at any time, please press star 1 on your telephone keypad. Thank you. [music] Ladies and gentlemen, thank you for your patience.
Operator: Today's conference call will begin shortly. If you would like to register a question at any time, please press star one on your telephone key. FGTC
Speaker Change: Ladies and gentlemen, thank you for your patience. Today's conference call will begin shortly. If you would like to register a question at any time, please press star 1 on your telephone keypad.
Elliot: [music] Hello and welcome to the LiveOne Incorporated Q1 Fiscal 2025 Financial Results and Business Update webcast. My name is Elliot, and I'll be coordinating your call today. If you would like to register a question during today's events, please press star followed by one on your telephone to the pad. I would now like to hand over to Aaron Sullivan, CFO. Please go ahead.
Unknown Executive: School will begin shortly. If you would like to register a question at any time, take the press star one on your telephone keypad. .
Speaker Change: [music]
Aaron Sullivan: Thank you. Good morning, and welcome to LiveOne's business update and financial results conference call for the company's first quarter ending on June 30, 2024. Presenting on today's call with me is Rob Ellin, CEO and chairman of LiveOne. 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 in the business.
Speaker Change: Thank you. Bye.
Elliot: Hello and welcome to the Live One Incorporated Q1 Fiscal 2025 Financial Results and Business Update webcast. My name is Elliot and I'll be coordinating your call today. If you would like to register a question during today's events please press star followed by one on your telephone's new pad.
Elliot: I would now like to hand over to Aaron Sullivan, CFO. Please go ahead.
Aaron Sullivan: 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 those in these forward-looking statements, including those described in its annual report on Form 10-K for the year-end of March 31, 2024, and subsequent SEC filings. You'll find reconciliations of non-GAAP financial measures to the most comparable GAAP financial measures discussed today in the company's Earnest Release, which is posted on its investor relations website.
Aaron Sullivan: Thank you. Good morning and welcome to Live One's business update and financial results conference call for the company's first quarter end of June 30, 2024.
Aaron Sullivan: Presenting on today's call with me is Rob Ellin, CEO and Chairman of Live One. 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.
Aaron Sullivan: 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 in the business.
Aaron Sullivan: Actual results may differ materially from those...
Aaron Sullivan: 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 in these forward-looking statements, including those described in its annual report on Form 10-K for the year-end of March 31, 2024, and subsequent SEC filings.
Aaron Sullivan: We 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. The company encourages you to periodically visit the Investor Relations website for important content.
Aaron Sullivan: The company encourages you to periodically visit its investor relations website for important content. The following discussion, including responses to your questions, contains time-sensitive information and reflects management's view as of the date of this call, August 13, 2024. And, as excepted required by law, the company does not undertake any obligation to update or revise this information after the date of the call.
Aaron Sullivan: The following discussion, including responses to your questions, contains time-sensitive information and reflects management's view after the date of this call, August 13, 2024. And as except required by law, the company does not undertake any obligation to update or revise this information after the date of the call.
Aaron Sullivan: I'd like to highlight to investors that the call is being recorded, and 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, this call and the webcast are the property of the company, and any redistribution, transmission, or rebroadcast of this call or the webcast in any form other than that for which the company has expressed written consent is strictly prohibited. Now, I would like to turn the call over to LiveOne CEO, Rob Ellin. Thank you, Aaron. And good morning, everyone.
Aaron Sullivan: I'd like to highlight to investors that the call is being recorded. The company is making it available to investors and media via webcast and replay will be available on its website in the investor relations section shortly following the conclusion of the call.
Aaron Sullivan: Additionally, it is the property of the company and any redistribution, transmission or rebroadcast of this call or the webcast in any form that the company has expressed written consent is strictly prohibited. Now, I would like to turn the call over to Live One's CEO, Rob Ellin.
Rob Ellin: And thank you for joining us today. I'm thrilled to share the outstanding progress and success that LiveOne has achieved, driven by our unwavering commitment to a creator-first model. In our audio division, comprising Slacker Radio and Podcast One, we reached incredible milestones in Q1 of fiscal 2025. We achieved a record-breaking $31.9 million in revenues and $5.1 million in adjusted EBITDA, demonstrating the strength of our business strategy and execution. Looking ahead, we project a phenomenal year 2025 for the audio division, which anticipated revenue of 130 to 140 million and adjusted even ranging from 20 to 25 million.
Rob Ellin: Thank you Aaron and good morning everyone and thank you for joining us today. I'm thrilled to share the outstanding progress and success that Live One has achieved, driven by our unwavering commitment to a creator first model.
Speaker Change: Our audio division, comprising of Slacker Radio and Podcast One, we reached incredible milestones in Q1 of fiscal 2025. We achieved a record-breaking $31.9 million in revenues and $5.1 million in adjusted EBITDA.
Speaker Change: demonstrating the strength of our business strategy and execution.
Speaker Change: [inaudible]
Speaker Change: Looking ahead, we project a phenomenal year 2025 or audio division, which anticipated revenue of 130 to 140 million and adjusted even ranging from 20 to 25 million. Our solid foundation exciting opportunity position us for continued growth.
Rob Ellin: Our solid foundation and exciting opportunities position us for continued growth. Under Brad Konkol's leadership, Slacker Radio has experienced remarkable growth, starting with our great partnership with Tesla, remaining to remain and continue to grow that part. We added Bill Witters almost seven months ago. He formally headed up a division of Microsoft, doing over hundreds of millions of dollars in B2B deals. He has crafted a strategic roadmap for B2B partnerships, securing and signing four major additional deals with 63 potential partnerships in the pipeline.
Brad Konkos: On the Brad Konkos leadership, Slacker Radio's Experience
Brad Konkos: It's remarkable growth, starting with our great partnership with Tesla, and continue to grow that partnership.
Bill Witters: We added Bill Witters almost seven months ago, formally headed up a division of Microsoft, doing over hundreds of millions of dollars of B2B deals. He has crafted a strategic roadmap for B2B partnerships.
Bill Witters: securing and signing four major additional deals with 63 potential partnerships in the pipeline. We're anticipating closing multiple partnerships with market cap companies ranging from a billion to $1 trillion before this year ends.
Rob Ellin: We're anticipating closing multiple partnerships with market-cap companies ranging from a billion to $1 trillion before this year ends. Based on our huge success, signing five major additional partnerships, including a $24 million dollar partnership with one of the largest streaming networks, a Fortune 250 company, which is adding about $2 million in revenues a month, we've expanded our B2B team from one to six professionals and are now aggressively moving to hire ahead of each vertical.
Bill Witters: Based on your success signing five major additional partnerships including
Bill Witters: a $24 million partnership with one of the largest streaming networks, a Fortune 250 company, which is adding about $2 million in revenues a month. We've expanded our B2B team from one to six professionals.
Bill Witters: and now aggressively moving to hire ahead of each vertical. We fully expect to have a team of over 10 people leading the charge in our B2B area.
Rob Ellin: We fully expect to have a team of over 10 people leading the charge in our B2B area. Our membership growth continues to grow steadily, increasing from $3.7 million to $3.9 million. We maintain cost-efficient marketing, spending less than a million dollars this year with very little breakage, the lowest by far in the industry.
Bill Witters: Our membership growth continues to grow steadily, increasing from 3.7 million to 3.9 million. We maintain cost-efficient marketing, spending less than a million dollars this year, with very little breakage, the lowest by far in the industry.
Rob Ellin: Podcast One, led by Kit Gray, is seeing tremendous success, signing 37 new podcasts and, in the last 12 months, bringing our total to 187,000, 187 podcasts. We've sold a second major show to a streaming partner that is moving our podcast from podcasting to television and film. There's a unique amount of money that will be coming in from those television shows over the next couple of years. Our publishing business, led by Josh Halbar, grew 300% and earned two Grammys.
Kit Gray: Podcast One, led by Kit Gray, is seeing tremendous success, signing 37 new podcasts and in the last 12 months bringing our total to 187,000, 187 podcasts.
Kit Gray: We've sold a second major show to a streaming partner that is moving our podcast from podcasting to television and film.
Kit Gray: there's a unique amount of money that will be coming in from those television shows shows over the next couple of years
Speaker Change: Our publishing business, led by Josh Hallberg, grew 300% and earned two Grammys. We partnered with Cartoon Studios to produce and publish and distribute original programming for Winnie the Pooh, the mega brand funded with over $30 million.
Rob Ellin: We partnered with Cartoon Studios to produce, publish, and distribute original programming for Winnie the Pooh, a mega brand funded with over $30 million. Our Celebrity Brands Division, led by Sarah Dee, is set to introduce 10 to 12 celebrity brands over the next 12 months, including Birthday Steps, Chardonnay with Jeremiah, and Smiley Cough with Kyle.
Speaker Change: Our Celebrity Brands Division, led by Sarah Dee, is set to introduce 10 to 12 celebrity brands over the next 12 months, including Birthday Steps, Chardonnay with Jeremiah, and Smiley Cough with Kyle.
Unknown Executive: I'd like to highlight some investors that the call is being recorded. The company is making it available to investors and media by webcast and Replay will be available on its website and the investor relations section shortly following the conclusion of the call.
Unknown Executive: Additionally, it is the property of the company and any redistribution transmission or rebroadcast of this call or the webcast in any form that the company has expressed in consent, it's strict and prohibitive.
Rob Ellin: We're expanding our stock buyback again to $12 million. We've purchased over 4.4 million shares of stock and extinguished those, leaving us with an additional $6.3 million dedicated to the program. This move underscores our confidence in the company's future and our commitment to enhancing shareholder value. In conclusion, we believe our stock remains extremely undervalued, given our impressive growth and unlimited future prospects. We're confident in our direction and excited about what lies ahead. Thank you everyone for your support and belief in LiveOne. I'm now going to hand it over to Aaron Sullivan to review the Q1 results. Thanks, Rob.
Speaker Change: We're expanding our stock buyback again to $12 million. We've purchased over 4.4 million shares of stock and extinguished those.
Robert Ellin: Now, I would like to turn the call over to LiveOne CEO Rob Ellin. Thank you Aaron.
Speaker Change: leaving us with additional 6.3 million dollars dedicated to the program. This move underscores our confidence in the company's future and a commitment to enhancing shareholder value.
Robert Ellin: Good morning everyone and thank you for joining us today. I'm thrilled to share the outstanding progress and success that LiveOne has achieved driven by our unwavering commitment to a creator first model. Our audio division comprising of Slacker Radio and Podcast One, we reached incredible milestones in Q1 of fiscal 2025. We achieved the record breaking 31.9 million revenues and 5.1 million adjusted EBITDA, demonstrating the strength of our business strategy and execution. Looking ahead, we project a phenomenal year 2025 for audio division, which anticipated revenue of 130 to 140 million and adjusted EBITDA, ranging from 20 to 25 million.
Speaker Change: In conclusion, we believe our stock remains extremely undervalued given our impressive growth and unlimited future prospects.
Aaron Sullivan: We're confident in our direction and excited about what lies ahead. Thank you everyone for your support and belief in Live One. I'm now going to hand it over to Aaron Sullivan to review the Q1 results.
Aaron Sullivan: I'll spend just a minute providing a very brief overview of our results for the first quarter of fiscal 2025 and at June 30. Consolidated revenue for the three-month period and the June 30 24 with 33.1 million. FACA posted record revenue for Q1 at 18.7 million and adjusted EBITDA of 5.4 million.
Aaron Sullivan: Thanks, Rob. I'll spend just a minute providing a very brief overview of our results for the first quarter of fiscal 2025 and June 30.
Aaron Sullivan: Consolidated revenue for the three-month period ended June 30th, 2004 with $33.1 million.
Aaron Sullivan: FACA posted record revenue for Q1 of $18.7 million and adjusted EBITDA for $5.4 million. Podcast One posted record revenue of $13.2 million with an adjusted EBITDA loss of $300,000.
Aaron Sullivan: Podcast One posted record revenue of 13.2 million and an adjusted EBITDA loss of $300,000. For the first quarter of fiscal 2025, revenue consists of 56% membership and 44% advertising, sponsorship, merchandising, and others, compared to 54% membership and 46% advertising, sponsorship, and merchandise in the prior year period. Consolidated adjusted EBITDA for Q1 fiscal 24 was $2.9 million. On a U.S. cap basis, LiveOne posted a consolidated net loss of $1.7 million, or $0.02 a share, and a new share in Q1 fiscal 25.
Robert Ellin: Our solid foundation and exciting opportunity to position us for continued growth. On the Brad Conkels Leadership Slacker Radio's experience, it's remarkable growth starting with our great partnership with Tesla. Remain and continue to grow that partnership. We added Bill interest six almost seven months ago, formally headed up a division of Microsoft, doing over over hundreds of millions of dollars of B2B deals. He has crafted a strategic roadmap for B2B partnerships, securing and signing for major additional deals with 63 potential partnerships in the pipeline.
Aaron Sullivan: For the first quarter of fiscal 2025, revenue consists of 56% membership and 44% advertising sponsorship and merchandising and others, compared to 54% membership and 46% advertising sponsorship and merchandise in the prior year period.
Aaron Sullivan: Consolidated adjusted EBITDA for Q1 fiscal 24 was $2.99. On a U.S. cap basis, 5-1 posted a consolidated net loss of $1.7 million or $0.02 a share, diluted share in Q1 fiscal 25.
Rob Ellin: As of June 30, 2024, total members, which include three members, were approximately 3.9 million. Note that included in total members are certain members who are currently subject to a contractual dispute for which we are not currently recognizing revenue. Rob, I'll turn it back to you. Great, great, Aaron.
Robert Ellin: We anticipated closing multiple partnerships with market cap companies ranging from a billion to $1 trillion dollars before this year ends. Based on your success, signing five major additional partnerships, including 24 million dollar partnership with one of the largest streaming networks, a fortune to 50 company, which is adding about $2 million of revenues a month. We've expanded our B2B team from one to six professionals. And now aggressively moving the higher ahead of each vertical, we fully expect to have a team of over 10 people leading the charge in our B2B area. Our membership growth continues to grow steadily, increasing from $3.7 million to $3.9 million.
Aaron Sullivan: As of June 30, 2024, total members, which include free members, were approximately 3.9 million. Note that included in total members are certain members who are currently subject to a contractual dispute for which we are not currently recognizing revenue.
Speaker Change: Rob, I'll turn it back to you.
Rob Ellin: And thank you for the great job you've done. Just to wrap it up, the real focus right now is this B2B partnership. That first $24 million deal, revenues are just kicking in. We're seeing growth in our revenues, we're seeing growth in our EBITDA, and we're seeing the opportunity that these B2B deals, we could go on a hot streak here. And as we do, these are major companies; there are billions, $2 trillion companies, major verticals across the auto industry, obviously with Tesla expanding into other auto companies, carriers, carriers around the world, merchandise businesses, retailers...
Rob Ellin: Great, great Aaron and thank you for the great job you've done. Just just to wrap it up, real focus
Rob Ellin: right now is on those B2B partnerships.
Speaker Change: That first $24 million deal, the revenues are just kicking in. We're seeing the growth in our revenues, we're seeing our growth in our EBITDA, and we're seeing the opportunity that these B2B deals, we could go on a hot streak here. And as we do, these are major companies, these are billion to trillion dollar companies.
Speaker Change: major verticals across auto, obviously with Tesla expanding into other auto companies, carriers, carriers around the world.
Robert Ellin: We maintain cost-efficient marketing, spending less than a million dollars this year with very little breakage, the lowest by far in the industry. Podcast 1, led by Kit Gray, is seeing tremendous success, signing 37 new podcasts and in the last 12 months, bringing our total to 187,187 podcasts. We've sold a second major show to a streaming partner that is moving our podcast from podcasting to television and film. There's a unique amount of money that will be coming in from those television shows, shows over the next couple of years.
Speaker Change: Merchandise businesses, retailers
Operator: Airlines. There are so many opportunities right now. And the team has really put together a fabulous lineup. And that's why we're going to expand the team. We're going to grow the team for the first time in almost four years, and we're going to focus all that energy on those big $20 million plus partnerships with major partners across those verticals. So I want to thank everyone for joining and open it up to any questions.
Speaker Change: hotels
Speaker Change: airlines
Speaker Change: There's so many opportunities right now, and the team has really put together a fabulous lineup. And that's why we're gonna expand the team. We're gonna grow the team for the first time in almost four years.
Speaker Change: And we're going to focus all that energy on those big $20 million plus partnerships with major partners across those verticals. So I want to thank everyone for joining and open it up for any questions.
Robert Ellin: Our publishing business, led by Josh Halberg, grew 300% in our two Grammys. We partnered with Quartune Studios to produce and publish and distribute the original program for Winnie the Pooh, the mega brand funded by, funded with over 30 million dollars. Our celebrity brand's division, led by Saturday, is set to introduce 10 to 12 celebrity brands of the next 12 months, including birthday sets, short name with Jeremiah and smiley cough with Kyle.
Operator: Thank you. If you would like to ask a question, please press star followed by one on your telephone keypad. If you would like to withdraw your question, please press star followed by two. When preparing to ask a question, please ensure your device is unmuted locally.
Speaker Change: Thank you. If you would like to ask a question please press star followed by one on your telephone keypad. If you would like to withdraw your question please press star followed by two. When preparing to ask a question please ensure your device is unmuted locally.
Brian Kinstlinger: Our first question comes from Brian Kinstlinger with AGP. Your line is open, please go ahead. Great, thanks for taking my questions. It's great to see the solid sequential growth and podcast revenue. And you mentioned that the B2B partnership kicking in and beginning to have a material impact sounds like about $2 million a quarter, I think you said. I'm curious, how much more does that partnership have to go in terms of reaching the peak run rate? Yeah, so we don't give them the exact numbers Brian on it.
Speaker Change: Our first question comes from Brian Kinzlinger with AGP. Your line is open, please go ahead.
Brian Kinzlinger: Great, thanks for taking my questions. It's great to see the solid sequential growth in podcast revenue.
Robert Ellin: We're expanding our stock by back again to 12 million dollars. We've purchased over 4.4 million shares of stock and extinguish those, leaving us with additional $6.3 million dedicated to the program. This move underscores our confidence in the company's future and commitment to enhancing shareholder value.
Brian Kinzlinger: And you mentioned that the B2B partnership kicking in and beginning to have a material impact comes at about $2 million a quarter, I think you said. I'm curious, how much more does that partnership have to go in terms of reaching the peak run rate?
Rob Ellin: But this is, you know, it started in November. Scales Up. See that revenue growth in each quarter going forward, and yeah, we couldn't be more excited about the partnership and the opportunity to get much bigger. This is the beginning of putting our content across large streaming platforms. And I think it's so critical that, you know, the cost of content has become so expensive that it's over a million dollars, $1.6 million an hour of content.
Speaker Change: Yeah, so we don't give the exact numbers, Brian, on it, but this is, you know, it started in November.
Robert Ellin: In conclusion, we believe our stock remains extremely undervalued, given our impressive growth and unlimited future prospects. We're confident in our direction and excited about what lies ahead.
Speaker Change: scales up.
Speaker Change: So I think you'll see that revenue growth in each quarter going forward. And yeah, we couldn't be more excited about the partnership and the opportunity to get much bigger.
Aaron Sullivan: Thank you everyone for your support and belief in LiveOne, and now we're going to hand it over to Aaron Sullivan to review the Q1 results. Thanks Rob. I'll spend just a minute providing a very brief overview of our results for the first quarter of this will 2025 and a June 30. Consolidated revenue for the three months period and the June 30th, 24 with 33.1 million. Slightly close to record revenue for Q1 and 18.7 million and adjusted EBITDA for 5.4 million.
Speaker Change: All right, this is the beginning of putting our content across large streaming platforms, and I think it's so critical that the cost of content has become so expensive.
Speaker Change: that told us $1.6 million an hour of content. And the beauty of our content is we have AAA content with the biggest social media stars in the world, right? It costs us under $3,000 an hour.
Rob Ellin: And the beauty of our content is that we have AAA content with the biggest social media stars in the world, right? It costs us under $3,000 an hour; we have an opportunity to really grow that, and I see this as the first of many streaming partners and streaming networks. When you think about music choice on cable or satellite and how many channels are for audio, let alone video, and you think about MTV and country music channels at all, there really is no thought leader in music anymore, and we have an opportunity to really be that thought leader across audio and video.
Speaker Change: So we have the opportunity to really grow that. And I see this is the first of many streaming partners.
Speaker Change: and streaming networks. When you think about music choice on cable or satellite and how many channels where audio let alone video and you think about MTV and country music channels at all there really is no thought leader in music anymore and we have an opportunity to really be that thought leader across audio and video.
Aaron Sullivan: Podcasts one post record revenue of 13.2 million and adjust with an adjusted EBITDA loss of $300,000. So the first quarter of fiscal 2025 revenue consists of 56% membership and 44% advertising sponsorship merchandise and another compared to 64% membership and 46% advertising sponsorship and merchandise. In the prior year period. Consolidated adjusted EBITDA for Q1, fiscal 2024 was 2.9 million. On the U.S, cap basis, 5.1 post is consolidated net loss of 1.7 million or 2 cents a share.
Rob Ellin: Great. And then as it relates, I think, so correct me if I'm wrong, the $20 million B2B partnership you just mentioned, and it was on the podcast press release. That's the one that was pending on the last call.
Speaker Change: Great. And then as it relates, I think, so correct me if I'm wrong, the $20 million B2B partnership you just mentioned, and it was on podcast, press release,
Rob Ellin: And that's in addition to the other one that's ramping up. Is that right? And if that is right, can you comment on details such as that $24 million over some period of time? And how long do you think before that begins to run out?
Speaker Change: That's the one that was pending on the last call and that's in addition to the other one that's ramping. Is that right? And if that is right...
Aaron Sullivan: Failure to share in Q1 and 6.25. As of June 30th, 24 total members, which you see free members, were approximately 3.9 million. Note that included in total members are certain members who are currently subject to a contract for dispute for which we are not currently recognizing revenue.
Speaker Change: Can you comment on details such as, is that 24 million over some period of time, and how long do you think before that begins to ramp?
Rob Ellin: Yeah, let's be a little bit careful because we're gonna have a lot more details, you know, shortly on the next partnership, and we'll provide that publicly in the very near future. And I think it won't just be one, you know, as we stated earlier. We've now signed four additional major partnerships. And we'll have some real clarity on that coming over the next couple of weeks. But just to be clear, that is a $24 million partnership because it just happens to be the same number. But I want to be clear, that is different than the $24 million one from November, right? No, no, that's the same one that started in November.
Speaker Change: Yeah, let's be a little bit careful on that. We're going to have a lot more details, you know, shortly on the next partnership.
Robert Ellin: Rob, I'll turn it back to you. Great. Great, Aaron.
Speaker Change: and we'll provide that publicly in the very near future.
Robert Ellin: Thank you for the great job you've done. Just to wrap it up, real focus right now is on those B2B partnerships. That first 24 million dollar deal, the revenues are just kicking in. We're seeing the growth in our revenues. We're seeing our growth in our EBITDA. And we're seeing the opportunity that these B2B deals and we could go on a hot streak here. And as we do, these are major companies, this is a billion to trillion dollar companies.
Speaker Change: And I think it won't just be one, you know, as we stated, you know, you know, earlier, we've now signed four additional major partnerships, and we'll have some real clarity on that coming over the next couple of weeks.
Speaker Change: but just to be clear that is 24 million one dollar partnership because it just happens to be the same number I want to be clear that's different than the 24 million dollar one from November right
Rob Ellin: It is growing, and it's scaling up. Ah, okay. And then can you speak maybe to the inventory fill rates of podcasts? I guess the harder question is, on today's viewership or list listeners, sorry, on podcasts, you know, where could how much better could the inventory fill rates become as you, you know, when lots of these parts, Aaron, do you want to take that? Yeah, I think we're seeing consistency in our kind of fill rates in terms of what we're able to sell through to partners.
Robert Ellin: Major verticals across auto, obviously with Tesla expanding into other auto companies, carriers around the world. Merchardized Businesses, Retailers, Hotels, Airlines, there's so many opportunities right now and the team is really put together a fabulous lineup and that's why we're going to expand the team, we're going to grow the team for the first time in almost four years and we'll get to focus all that energy on those big $20 million plus partnerships with major major partners across those verticals.
Speaker Change: No, no, that's that's the same one that started in November. It is growing and it's scaling up.
Speaker Change: Ah, okay.
Speaker Change: And then, can you speak maybe to the inventory fill rates of podcasts? I guess the heart of the question is...
Speaker Change: on today's viewership, or listeners, sorry, on podcast, you know, where could, how much better could the inventory fill rates become as you, you know, win lots of these partnerships?
Speaker Change: Aaron, you want to take that?
Aaron Sullivan: So, you know, we will try to optimize that. And, you know, the quicker way to revenue, though, is just to increase the available inventory, right?
Aaron Sullivan: Yeah, I think...
Aaron Sullivan: we're seeing consistency in our kind of fill rates in terms of what we're able to sell to partners. So, we will try to optimize that. The quicker way to revenue though, is just to increase the...
Unknown Executive: So I want to thank you for joining and open it up for any questions. Thank you. If you'd like to ask a question, please press star followed by one on the telephone keypad. If you'd like to withdraw your question, please press star followed by two. I'm preparing to ask your question. Please ensure your device is unmuted locally.
Aaron Sullivan: The available inventory, right? And that's that's kind of what we're what we're working towards. Um, yeah, I think I'll leave it at that. Robert, if you have anything to add.
Aaron Sullivan: And that's, that's kind of what we're working towards. Yeah, I think I'll leave it at that, Robert, if you have anything to add. Yeah, I'm not sure I followed the exact question.
Brian Kinstlinger: The first question comes from Brian Kinstlinger with AGP. Your line is open. Please go ahead. Great. Thanks for taking my questions. It's great to see the dollars that went over open podcast revenue. And you mentioned that's the BDB partnership kicking in and beginning to have a material impact. How did about two million dollars of quarter, I think you said. I'm curious, how much more does that partnership have to go in terms of reaching the peak run rate?
Rob Ellin: I think I think you're articulating with these, these additional b2b deals are not just inventory. This is this is traffic and audience, right? As we spread our tentacles, right and spread it out across a fortune 250 company, right with a massive streaming network, we're getting more eyeballs on ours. The more traffic, the more audience, the more advertising we get. And I think that answers your question, Brian, but I'm not sure I understood your question fully. Yep. No, yeah, we'll take it offline.
Robert: yeah I'm not sure I followed the exact question I think I think what you're articulating with these
Robert: these additional B2B deals.
Robert: is not just inventory, this is traffic and audience, right? As we spread our tentacles, right, and spread it off across a Fortune 250 company, right, with a massive streaming network, we're getting more eyeballs onto ours. The more traffic, the more audience, the more advertising we're gonna get.
Speaker Change: And I think that answers it Brian, but I'm not sure I understood fully your question. Yep. No. Yeah, we'll take it offline. Perfect Only my last question is how aggressive Are you? advertising to increase
Brian Kinstlinger: Perfect. Only my last question is, how aggressive are you advertising to increase, you know, your market share or growth in downloads in Uniglish? How aggressive? Say that one more time.
Brian Kinstlinger: Yeah, so we don't give the exact numbers Brian on it, but this is, you know, it started in November and scales up. So I think you'll see that revenue growth in each quarter going forward and you know, it couldn't be more excited about the partnership and the opportunity to get much bigger. Right. This is the beginning of putting our content across the watch streaming platforms. And I think it's so critical that the cost of content has become so expensive that, you know, it's almost a million, $1.6 million an hour of content.
Brian Kinzlinger: You know your market share or growth in downloads and unique listeners
Rob Ellin: I guess I'm just curious, is the budget increasing? I mean, how are you acquiring new listeners? Oh, yeah, you. The budget is not yielding the beauty of this, of course, Spotify app.
Brian Kinzlinger: How aggressive, say that one more time. I guess I'm just curious, is the budget increasing? I mean, how are you acquiring new listeners?
Brian Kinstlinger: And the beauty of our content is we have AAA content with the biggest social media stars in the world. Right. It costs us under $3,000 an hour. So we have the opportunity to really grow that and I see this is the first and many streaming partners and streaming networks when you think about music choice on cable or satellite and how many channels were audio level on video and you think about MTV and country music channels at all.
Speaker Change: Oh, yeah, I do.
Speaker Change: . . . . . . . .
Speaker Change: i
Speaker Change: The budget is now yields the beauty of this, of course, Spotify app.
Speaker Change: . . . . . . . . . . . . . .
Brian Kinstlinger: There really is no thought leader in music anymore and we have an opportunity to really be that thought leader across audio and video. Great. And then as a release, I think so correct me from wrong, the $20 million B2B partnership, you just mentioned it was on podcast, press release. That's the one that was pending on the last call. And that's in addition to the other one that's ramping. Is that right? And if that is right.
Speaker Change: will continue with TikTok multiple times, and those opportunities to keep getting our content into new places where already the distribution and the traffic is built is really the key. Part of the beauty is because we own our own technology, all those revenues come for us. The more traffic, the more audience, the more revenues we derive.
Brian Kinstlinger: Can you comment on details such as that $24 million over some period of time and how long do you think before that begins to ramp? Yeah, let's be a little bit cap on that. We'll get at a lot more details shortly on the next partnership that will provide that publicly in the very near future. And I think it won't just be one, you know, as we stated, you know, earlier, we've now signed four additional major partnerships and we'll have some real clarity on that coming over the next couple of weeks.
Barry Sine: Okay, thank you. We now turn to Barry Sine with Hills Research. Your line is open. Please go ahead. Morning, gentlemen. How are you?
Barry Sine: Barry, good to hear your voice. Okay, okay, likewise. On the $63 million pipeline, I wonder if we can get a little more breakdown on that. Rob, you mentioned a number of different verticals. You're hiring senior managers for each of the verticals. How does that pipeline break down by vertical?
Speaker Change: That's a very good voice. Okay.
Speaker Change: Okay, likewise. On the $63 million pipeline,
Brian Kinstlinger: Thanks. But just to be clear, that is $24 million a partnership. It just happens to be the same number. I want to be clear that's different than the $20 million dollar one from November, right? No, no, that's the same one. That started in November. It is growing and scaling up. Okay. And then can you speak maybe to the inventory till rate or podcast? I guess the hard question is on today's viewership or listener, sorry on podcast. You know, where could how much better could the inventory fill rate become as you, you know, when lots of these partnerships?
Speaker Change: I'm wondering if we can get a little more breakdown on that. Rob, you mentioned a number of different verticals.
Rob Ellin: And within that pipeline, how many of those have you tendered a contract to, you know, so you're far along in the process? Could you give us a little more visibility on that pipeline? Yeah, I mean, I don't know if I can get much deeper than that from a legal standpoint, but I can tell you this is, is, you know, a, we absolutely will have additional auto companies this year, right? Number two is because our balance sheet and all the debt were converted at $2.10. That's right. Our balance sheet is pretty pristine now and very cheap.
Speaker Change: You're hiring senior managers for each of the verticals. How does that pipeline break down by vertical? And within that pipeline, how many of those have you tendered a contract to? You know, so you're far along in the process. Could you give us a little more visibility on that pipeline?
Speaker Change: Yeah, I mean, I think, you know, I don't know if I can get much deeper than that from a legal standpoint, but I can tell you this is
Speaker Change: is, you know, a
Speaker Change: We absolutely will have additional auto companies this year.
Speaker Change: Number two is because our balance sheet and all the debt was converted at $2.10, our balance sheet is pretty pristine now and very cheap. It gives us the opportunity to expand globally, so we have opportunities with carriers around the globe.
Rob Ellin: It gives us the opportunity to expand globally, right? So we have opportunities with carriers around the globe. I love the opportunity.
Aaron Sullivan: Aaron, you want to take that? Yeah, I think, you know, we're seeing consistency in our kind of fill rate in terms of what we're able to sell to partners. So, you know, we will try to optimize that.
Rob Ellin: I love, love, love, and couldn't be more excited about where we're going with retail, right? The opportunity that you're watching Amazon, right? And Amazon has so much rich media.
Speaker Change: I love the opportunity. Love, love, love.
Speaker Change: and couldn't be more excited about where we're going with retail.
Speaker Change: right, the opportunity that you're watching Amazon, right, and Amazon has so much rich media.
Rob Ellin: Everyone from Best Buy to Walmart to Costco, all came, all the retailers must have, right, that are competing in the digital world, right? Must have content. And you're seeing that happen and, you know, starting to see some of my thoughts, you know, come to fruition as you saw Walmart buy Visio for $2.3 billion. It only sold for $230 million only three years ago, right? And when Charlie Collier bought it.
Aaron Sullivan: And, you know, the quicker way to revenue, though, is just to increase the available inventory, right? That's that's kind of what we're, what we're working towards.
Speaker Change: Everyone from Best Buy to Walmart to Costco, all came, all the retailers must have.
Speaker Change: right, that are competing in the digital world, right, must have
Aaron Sullivan: Yeah, I think I'll leave with that. We're obviously having to ask.
Speaker Change: content. And you're seeing that happen and you're starting to see some of my thoughts, you know, come to fruition as you saw Walmart buy Vizio for $2.3 billion.
Robert Ellin: Yeah, I'm not sure if I'll be exact question. I think I think you're articulating with these, these additional B2B deals is not just inventory. This is, this is traffic and audience, right? As we spread our tentacles, right, and spread it off across a bunch of 250 company, right with a massive streaming network. We're getting more eyeballs on towards the more traffic, the more audience, the more advertising we get yet.
Brian Kinstlinger: And I think that answers it, Brian, but I'm not sure I understood for you a question.
Speaker Change: It only sold for 230 million only three years ago, right, when Charlie Collier bought it. Now they're paying 2.3 billion for it. That's the first telltale sign.
Rob Ellin: Now, they're paying $2.3 billion for it. That's the first telltale sign they're going to compete head-on with Amazon, and they're going to, they're going to create their own content like Amazon Prime. And I see the same thing across all the retailers.
Speaker Change: they're going to compete head on with Amazon and they're going to create their own content like Amazon Prime. And I see the same thing across all the retailers. It's really exciting. In terms of hotels and airlines and loyalty programs, really just, you know, massive opportunity for our company.
Rob Ellin: It's really exciting. In terms of hotels and airlines and loyalty programs, really just, you know, massive opportunity for our company. We're one of 10 DSPs in the world, and the third fastest growing.
Brian Kinstlinger: Yeah, you know, yeah, we'll take it off my purpose.
Robert Ellin: One of my last question is, how aggressive are you advertising to increase, you know, your market share or growth in downloads and unique listeners? How aggressive at one more time? I guess I'm just curious is the budget increasing? I mean, what, how are you acquiring new listeners? Yeah, I do. The budget is now deals the beauty of this. That's, of course, Spotify app. Well, he continue and take top multiple times. And yeah, those, those, those opportunities to keep getting our content into new places.
Speaker Change: We're one of 10 DSPs in the world. We're the third fastest growing.
Rob Ellin: We've got this very unique content and are proving more and more original content like the event we're doing tonight, right? You're going to have more and more original content from music, right? To podcasting, to podcasting, and turning to television shows that I think that more and more networks are going to use and need our content. And so I'm really excited about where that's going. And yeah, those 63 deals were, but there's way more than that in the pipeline.
Speaker Change: We've got this very unique content.
Speaker Change: Proving more and more original content like the event we're doing tonight, right? You're going to have more and more original content for music
Speaker Change: to podcasting, to podcast turning to television shows, that I think that more and more networks are gonna need our content. And so I'm really excited about where that's going. And yeah, that's 63 deals.
Rob Ellin: These are the ones that we think have really moved along and are in shape and have an opportunity to close in the next 12 months. And then, continuing on that, I believe you said that there are four deals that are actually signed. You can't discuss who they are, but as they go live, we'll see press releases with announcements on those.
Speaker Change: There's way more than that in the sort of pipeline. These are the ones that we think have really moved along, that are in shape, that have an opportunity to close in the next 12 months.
Speaker Change: And then continuing on that, I believe you've said that there are four deals that are actually signed. You can't discuss who they are, but as they go live, we'll see press releases with announcements on those. Any update on that process?
Rob Ellin: Oh, yeah, it's coming. So, you know, again, those were all we said before year end. So, the year's coming fast, right? And so, you're going to see announcements on each one of those shortly. And with those, you'll see some details and highlights of where they're going. And, you know, when you're talking about billions to trillions, multi trillion dollar partners, right? You got to be careful what they're going to let you say and how much detail they're going to give in it, right?
Speaker Change: Oh, yeah, it's coming. So, you know, again, those were all we said before year end is coming. So the year's coming fast, right? And so you're going to see announcements on each one of those shortly.
Speaker Change: And with those, you'll see some details and highlights where they're going. And, you know, when you're talking about billion to trillion, multi-trillion dollar partners, right?
Speaker Change: You gotta be careful what they're gonna let you say and how much detail they're gonna give in it, right? But for us, as you can imagine.
Robert Ellin: We're already the distribution and the traffic is built is really the key and part of the beauty is because we own our own technology, right? And all those revenues come for us, right? The more traffic, the more audience, the more revenues we derive.
Barry Sine: But for us, as you can imagine, these are very meaningful, right? Every $20 million deal, you know, four more deals hit, right? And we had those four deals, even if they're half the size of the last one, that's going to put us in the $200 million range next year. What I've told the street is, you know, our goal is to get to 10 million subscribers. At 10 million subscribers, we'll be doing half a billion in revenues and, you know, $150 million in EBITDA.
Speaker Change: these are very meaningful, right? Every $20 million deal, if four more deals hit, right? And we had those four deals, even if they're half the size of the last one, that's gonna put us in the $200 million range next year.
Unknown Executive: Okay, thank you.
Speaker Change: And what I've told the street is, you know, our goal is to get to 10 million subscribers. At 10 million subscribers, we'll be doing half a billion in revenues and, you know, and $150 million in EBITDA. And that's that's the goal over the next couple of years.
Barry Sine: We now turn to Barry Sine with Health Research. Your line is open, please go ahead. Good morning, gentlemen. How are you? Good to hear, boys. Okay.
Barry Sine: And that's the goal over the next couple of years. And then I want to pick up on the word you've used a couple of times in the call, which is globally. In your script, you talk about serving carriers globally.
Rob Ellin: And then a minute ago, in response to a question, you cited the balance sheet cleanup that'll allow you to go global. So you know, that's been a long-term aspiration of the company to get global streaming rights. And one of the things I believe that kicks in almost automatically is Tesla's autopilot. So is that what you're alluding to, is that you're closer to getting music streaming rights on a global or at least European basis? And What would the implications of that be?
Speaker Change: And then I want to pick up on the word you've used a couple times in the call, which is globally. In your script, you talk about serving carriers globally, and then a minute ago in response to my question,
Robert Ellin: Likewise, on the 63 million pipeline, one of you know, if we can get a little more breakdown on that, Rob, you mentioned a number of different verticals. You're hiring senior managers for each of the verticals. How does that pipeline break down by vertical? And within that pipeline, how many of those have you tended a contract to, you know, so you're, you know, far along in the process. Could you give us a little more visibility on that pipeline?
Speaker Change: You cited the balance sheet cleanup that will allow you to go global. So, you know, that's been a long-term aspiration of the company, to get global streaming rights.
Speaker Change: And one of the things I believe that kicks in almost automatically is Tesla, automatically. So is that what you're alluding to, is that you're closer to getting music streaming rights on a global or at least European basis, and what would the implications of that be?
Robert Ellin: Yeah, I mean, I think, you know, I don't know if I can get much deeper than that from a legal standpoint, but I can tell you this is, is, you know, A, we absolutely will have additional auto companies this year. Right. Now, the two is because our balance sheet and all the debt was converted at $2,010. That's right. Our balance sheet is pretty pristine now and very cheap. It gives us the opportunity to expand globally.
Rob Ellin: I'm hoping you'll see very shortly and, you know, this is, we've gone through some, you know, some tough times here. We had to survive COVID. We lost our entire live business. We were inches away from having all those licenses and moving overseas then, but it was unaffordable, right? You know, post COVID, we lost 30% of our revenues and a big part of the growth story of the company. We had to pivot, right? And turn it over.
Speaker Change: I'm hoping you'll see very shortly and, you know, this is we've gone through some, you know, some tough times here. We had to survive COVID. We lost our entire live business. We were inches away from having all those licenses and moving overseas.
Speaker Change: then, but it was unaffordable, right? You know, post COVID, we lost 30% of our revenues and a big part of the growth story of the company. We had to pivot it, right? And turn it, we've
Robert Ellin: Right. So we have opportunities with carriers around the globe. I love the opportunity. Love, love, love. And couldn't be more excited about where we're going with retail. Right. The opportunity that you're watching Amazon right now, Amazon has so much rich media. Everyone from Best Buy to Walmart to Costco, all came all the retailers must have right that are competing in the digital world. Right. Must have content and you see that happening.
Speaker Change: This team has just done a magical job.
Speaker Change: fighting through adversity and difficult times. And we've proven we're going to survive it, but not only are we going to survive, we're going to expand around the globe. And for anyone that knows me, my last few companies, including Digital Turbine, was built off the backs of carriers right overseas.
Rob Ellin: We've, this team has just done a magical job of fighting through, you know, adversity and difficult times. And we've proven we're going to survive it, but not only are we going to survive, we're going to expand around the globe. And for anyone that knows me, my last few companies, including Digital Turbine, were built off the backs of carriers, right, overseas. But we have tremendous relationships over there. So it's definitely in the forefront of positioning where the company is going.
Speaker Change: but we have tremendous relationships over there. So it's definitely in the forefront of positioning where the company is going. And absolutely, if you look at all the.
Robert Ellin: You know, starting to see some of my thoughts, you know, come to fruition as you saw Walmart by visual for 2.3 billion. It only sold for 230 million only three years ago, right. And when Charlie Collier bought it now, now they're paying 2.3 billion for it. That's the first telltale sign. They're going to compete head on with Amazon and they're going to they're going to create their own content like Amazon Prime and I see the same thing across all the retail is really exciting.
Speaker Change: You know, if you look at all the memberships, whether it's Netflix or it's Spotify, half their revenues come to the U.S. and half come overseas, right?
Rob Ellin: And absolutely, if you look at all the, you know, if you look at all the memberships, whether it's Netflix or Spotify, half their revenues come from the US and half come overseas, right? We have 25, 28% of our traffic is overseas. We're not deriving any revenues.
Speaker Change: We have 25-28% of our traffic is overseas, we're not deriving any revenues from it.
Barry Sine: But it had to be affordable. It had to make sense. And now's the time where we're ready and in a way better position to be able to do that. And I think you'll start to see long-term deals with, with, our partners, right, our existing partners, not only those 63 right there in the pipeline, but also our existing partners start to see for the first time long-term partnerships and expansion of where we can, where our content can live. Okay, that's great.
Speaker Change: but it had to be affordable, it had to make sense and...
Speaker Change: Now's the time where we're ready and in a way better position to be able to do that.
Robert Ellin: In terms of hotels and airlines and loyalty programs really just, you know, massive opportunity for our company. We're one of 10 DSPs in the world with a third fastest growing. We've got this very unique content and proving more and more original content like the event we're doing tonight. Right. You're going to have more and more original content from music right to to podcasting to podcast, turning to television shows that I think that more and more networks and you need our content.
Speaker Change: I think you'll start to see long term deals with our partners, right, our existing partners. Not only those 63, right, that are in the pipeline, but also our existing partners start to see for the first time long term partnerships and expansion of where we can, where our content can live.
Barry Sine: And then my last question, you just alluded to my last question, you started to mention live events. And I know in the early, you know, history of the company, before COVID, that was, you know, the main event, live events. I saw, and I thought it was interesting that you put out a press release saying you were doing a live event in the Hamptons. And previously, what you've said is that you would not do live events unless they were profitable, and you would need to get a sponsor to do that. So are we the company dipping its toes back in the water on live events? And does that mean you found a way to do this more profitably?
Speaker Change: Okay, that's great. And then my last question, you just alluded to my last question, you started to mention live events.
Speaker Change: And I know in the early history of the company, pre-COVID, that was...
Speaker Change: you know, the main event, live events.
Robert Ellin: And so I'm really excited about what that's going in. You know, that 63 deals were there's way more than that and the sort of pipeline. These are the ones that we think have really moved the long that are in shape that have an opportunity to close in the next 12 months. And then continuing on that, I believe you've said that there are four deals that are actually signed. You can't discuss who they are, but as they go live, we'll see press releases, you know, with announcements on those and the update on that process.
Speaker Change: I saw and I thought it was interesting that you put a press release that you're doing a live event in the Hamptons.
Speaker Change: and previously what you've said is that you would not do live events unless they were profitable and you would need to get a sponsor to do that. So are we, is the company dipping its toes back in the water on live events and does that mean you found a way to do this more profitably?
Rob Ellin: Yeah, absolutely. And, you know, the event they were doing tonight. We have great sponsors from Eleven Vodka, right? We're positioning ourselves again, that we've proven, right, and Josh Aldaro runs our music, has proven, you know, we had Teddy Swims play at our studio in Beverly Hills, right? And next thing you know, after seeing him on the streaming platform, he becomes one of the biggest stars in the world, right? We had Kid LeRoy before anyone heard of him.
Speaker Change: Yeah, absolutely, and you know, the event...
Speaker Change: they were doing tonight. We have great sponsors from Eleven Vodka on, right? We're positioning ourselves again that's
Robert Ellin: Oh, yeah, it's it's coming. So, you know, again, those were all we said before you were in those coming. So the years coming fast, right. And so you're going to see announcements on each one of those shortly. And with those, you'll see some details and highlights where they're going. And you know, when you're talking about building into trillion multi trillion dollar partners, right. You've got to be careful what they're going to let you say and how much they detail they're going to give in it, right.
Speaker Change: We've proven, right, and Josh Halbera runs our music, has proven, you know, we had Teddy Swims play at our studio in Beverly Hills, right? And next thing you know, you know, after seeing him on the streaming platform, God becomes one of the biggest stars in the world, right? We had Kid LeRoy before anyone heard of him.
Speaker Change: So...
Speaker Change: We're going back to
Rob Ellin: So we're going back to our thesis that as a thought leader in music, it is critical to be a thought leader in not just audio, but video. And now that we have the resources, right, and we obviously have the relationships with the talent as well as the industry, this is the time to really step on the gas, and you're going to watch something pretty spectacular tonight. You're gonna see 12 artists perform all genres of music. You're gonna see one of the greatest pianists, a classical pianist, play all the way up, all the way up to the main squeeze.
Speaker Change: our thesis that, as a thought leader in music...
Robert Ellin: But for us, as you can imagine, these are very meaningful, right. Every 20 million dollar deal. If you know, four more deals hit, right. And we had those four deals, even if they're half the size of last one, that's going to put us in the 200 million dollar range next year. What I've told the street is, you know, our goal is to get 10 million subscribers, that 10 million subscribers will be doing half a billion of revenues and you know, 150 million dollars into the top. And that's that's the goal of the next couple of years.
Speaker Change: It is critical to be a thought leader and not just audio, but video and now that we have the resources, right, and we obviously have the relationships with the talent as well as the industry, this is the time to really step on the gas and you're going to watch something pretty spectacular tonight. You're going to see 12 artists perform of all genres of music.
Speaker Change: You're going to see one of the greatest pianists.
Rob Ellin: And in between, you're gonna see some of the great R&B and hip hop artists performing. So it's gonna be a really special night. And our talent is getting closer to our company, as you can see by the celebrity deals, right, the celebrity partnerships. We don't only want to be able to derive revenues just by putting music up. We're starting to own products in conjunction with that talent. And, you know, I'm really proud of the team and what they've done.
Speaker Change: Classical pianist play all the way up all the way up to the main squeeze And in between you're gonna see you know some of the great R&B and hip-hop artists performing So it's gonna be a really special night and our talent is getting
Robert Ellin: And then I want to pick up on the word you've used a couple of times in the call, which is globally in your script you talked about serving carriers globally and then a minute ago in response by question you cited the balance sheet clean up that all I you to go global so you know that's been a long term aspiration of the company to get global streaming rights in one of the things I believe that kicks in almost automatically is Tesla automatically so is that what you're alluding to is that you're closer to getting music streaming rights on a global or at least European basis and what with the implications of that day.
Speaker Change: Closer to our company as you can see by the celebrity deals right the celebrity partnerships
Speaker Change: We don't only want to be able to derive revenues just by putting music up. We're starting to own products in conjunction with that talent.
Speaker Change: And I'm really proud of the team and what they've done.
Rob Ellin: Sarah, who's joined us as head of our celebrity brands, brings a unique talent to the company, a unique skill, driving massive revenues. She was at Whitehall when they were doing 600,000 in revenues. I think she left when they were doing about four billion.
Speaker Change: Sarah, who's joined us, is head of our celebrity brands.
Sarah: Brings a unique talent to the company unique skill driving massive revenues
Speaker Change: She was at Whitehall when they were doing $600,000 in revenues.
Speaker Change: I think she left when they were doing about $4 billion. We see a huge opportunity to be able to drive more and more revenues off of those relationships with podcasters as well as with social media stars, including artists.
Barry Sine: We see a huge opportunity to be able to drive more and more revenues off of those relationships with podcasters, as well as with social media stars, including artists. Okay, that's my questions. Congratulations on a great quarter, guys. Thanks, Barry, and thanks for your support. We now turn to Sean McGowan with Roth Capital Partners. Your line is open, please go ahead.
Robert Ellin: You know I'm hoping you'll see very shortly and you know this is we've gone through some you know some tough times here we had to survive COVID we lost our entire life business we were inches away from having all those licenses and moving overseas then but it was unaffordable right you know post COVID we lost you know 30% of our revenues and a big part of the growth story of the company we had a pivot it right and turn it we've this team is just done a magical job of fighting through you know adversity and difficult times and we've proven we're going to survive it but not only will it survive we're going to expand around the globe and for anyone that knows me my last few companies including digital turbine was built off the backs of carriers right overseas right we have tremendous relationships over there so it's it's definitely in the forefront of positioning where the company is going and absolutely if you look at all the you know if you look at all the memberships whether it's Netflix or Spotify half their revenues come to the US and half come overseas right we have 25-28% of our traffickers overseas we're not deriving any revenues from it but it had to be affordable it had to make sense and now's the time where we're we're ready and in way better position to be able to do that and I think you'll start to see long term deals with with with our partners right our existing partners not only those 63 right there in the pipeline but also our existing partners start to see for the first time long term partnerships and expansion of where we can where our content can live okay that's great and then my last question you just alluded to my last question you started to mention live events and I know in the early you know history of the company pre-COVID that was you know the main event live events I saw and I thought it was interesting that you put a press release at you're doing a live event in the Hamptons and previously what you've said is that you would not do live events unless they were profitable and you need to get a sponsor to do that so are we is the company dipping its toes back in the water on live events and does that mean you found a way to do this more properly? yeah absolutely and you know the event they were doing tonight we have great sponsors from 11 Vodka on right we're positioning ourselves again that we're proving right and Josh Alvaro runs our music as proven you know we had Teddy Swims play at our studio in W Hills right and they actually know you know after seeing them on the screen the platform got becomes one of the biggest stars in the world right we kid the Roy before anyone heard of them so we're going back to our thesis that as a thought leader in music it is critical to be a thought leader in not just audio but video and you know now that we have the resources right and we obviously have the relationships with the talent as well the industry this is the time we really step on the gas and you're going to watch something pretty spectacular tonight you're going to see 12 artists perform a performance all genre of music you're going to see one of the greatest pianists classical pianist play all the way up all the way up to the main squeeze and in between you're going to see you know some of the great R&B and hip hop artists performing so you're going to be a really special night and our talent is getting closer to our company as you can see by the celebrity deals right these celebrity partnerships we don't only want to be able to drive revenues just by putting music up we're starting to own products and can jump with that talent and you know I'm really proud of the team what they've done.
Speaker Change: Okay, that's my questions. Congratulations on a great quarter guys.
Speaker Change: Thanks, Barry, and thanks for your support.
Speaker Change: We now turn to Sean McGowan with Roth Capital Partners. Your line is open, please go ahead.
Sean McGowan: Thank you. I apologize if these questions have been asked or I got dropped from the call. First, Aaron, on cost of sales, it seems a little higher than we had expected, particularly. Can you talk about what's driving it? Yeah, how are you?
Sean McGowan: Thank you. I apologize that these questions have been asked already. I got dropped from the call a couple of times. First, Aaron, on cost of sales seems to be a little higher than we had expected, particularly at Podcast One. Can you talk about what's driving that?
Aaron Sullivan: Yeah, so, our content acquisition costs have been a little bit higher than we anticipated. That's kind of the upfront cost to sign some of these deals and new podcasts. Going forward, we expect it to level out over the next couple of quarters, about where we're at today, and then, you know, start to improve from there. And tying that, but you know, a question for Rob: then is this, is this surprising to you?
Aaron Sullivan: Yeah, hi Sean, how are you? Yeah, so you know, our content acquisition costs have been a little bit higher than we anticipated. That's kind of, you know...
Aaron Sullivan: the upfront cost to signing some of these deals and new podcasts. Going forward, we expect it to level out over the next couple of quarters.
Aaron Sullivan: about where we're at today and then, you know, start to improve from there.
Aaron Sullivan: I thought we were in an environment where it was actually going to be easier to pick up shows that were either getting dropped or not getting renewed on the same terms from other networks. Is that proving not to be the case or less of a case than you had expected? Yeah. No, it's actually really exciting.
Aaron Sullivan: Mm-hmm.
Speaker Change: I'm tying that but you know a question for Rob then is this is this surprising to you I thought we were in an environment where it was actually going to be easier to pick up
Speaker Change: you know, shows that were either getting dropped or not getting renewed on the same terms from other networks. Is that proving not to be the case or less of the case than you had expected? Yeah.
Rob Ellin: I mean, we're just signing up for so many podcasts. We announce one almost every week. And there's a cost to it, right? The way that it works, Sean, in podcasting, you and I talked about this a little bit, is you sign up for the podcast, right? You pay them some money, right?
Rob Ellin: No, it's actually really exciting. I mean, we're just signing so many podcasts
Rob Ellin: We're announcing one almost every week, and there's a cost to it, right? The way that it works, Sean, in podcasting, you and I have talked about this a little bit, is you sign the podcast, right? You pay them some money, right? Even if they start doing the podcast the next morning...
Rob Ellin: Even if they start doing the podcast the next morning, you're paying them for the next three months, and you're not collecting back your money for three to four months. So there's a window of time. So I would say, you know, Aaron hit it right in the nose, but it's really, it's really exciting how many podcasts we're signing. And they're adding about 350 to 500,000 on average per revenue per podcast, every single one of these podcasts is a joint. So there's gonna be a little cost to it in the beginning. But you can't, can't really be, can't be better than growing the revenues right now and doing that.
Aaron Sullivan: you're paying them for the next three months and you're not collecting back your money for three to four months. So there's a window of time. So I would say, you know, you know, Aaron hit it right in the nose, but it's really, it's really exciting. How many, how many podcasts we're signing and they're adding about 350 to 500,000 on average per revenue. Every single one of these podcasts is a joint.
Speaker Change: So there's gonna be a little cost to it in the beginning, but it can't really be better than growing the revenues right now and doing that. And we'll achieve, we'll get that in the back end. We'll get those back in the back end when we start to get paid by the advertisers.
Rob Ellin: And we'll achieve, we'll, we'll get that on the back end. We'll get those back on the back end when, when we start to get paid by the advertisers. So it's not so much that you have to pay more per podcast to get them. It's just that you're signing up for more than you're expected to. So that's why the cost, Yeah, yeah.
Speaker Change: So it's not so much that you have to pay more per podcast to get them, it's just that you're signing more than you're expected to, so that's why the cost is higher.
Sean McGowan: And you know, this has been really exciting. There's been some really exciting, you know, signings as well. Yeah, that that, you know, there's a little bit, there's a little bit of money, it's got to go out the door day one. Okay, got it.
Speaker Change: yeah yeah and you know this this has been really exciting this there's been some really exciting you know signings as well yeah that that you know there's a little bit there's a little bit of money it's got to go out the door day one
Rob Ellin: And then in terms of you talked a lot about these deals that you're in the process of signing and you know, lining up more partners. So is your strategy then to only update or improve or increase the revenue guidance once the deals are signed? Because you know, I would have thought that if you're signing new deals and you close on some others, maybe increase the revenue guidance? Or are you just going to wait until they're nailed down?
Speaker Change: Mm-hmm, okay.
Speaker Change: Thank you. Got it. And then in terms of, you talked a lot about these deals that you're in process with and signing and lining up more partners, so is your strategy then to...
Speaker Change: only update or improve or increase the revenue guidance once the deals are signed? Because, you know, I would have thought that if you're signing new deals and you close on some others, maybe you can increase the revenue guidance. Is it you're just going to wait until they're nailed down?
Rob Ellin: I think, I think, you know, the guidance is a good number right now. And we're going to, as we announce the next B2B deals, right, again, the bigger our distribution is, the bigger our audiences, right, the more revenues we're going to drive. So I'd be surprised if we don't raise those guidance numbers.
Speaker Change: Well, I think, I think, you know, the guidance is a good number right now and we're going to, we're going to...
Robert Ellin: Sarah who's joined us is head of our celebrity brands brings a unique talent to the company unique skill driving massive revenues she was at she was at Whitehall when they were doing 600 600 thousand of revenues they she left when they were doing about 4 billion we see a huge opportunity to be able to drive more and more revenues all for those relationships with podcasters as well as with with social media stars including artists. Okay, that's my questions and congratulations on a great quarter, guys. Thanks, Barry.
Speaker Change: as we announce the next B2B deals, right? Again, the more, the bigger our distribution is.
Speaker Change: The bigger our audience is, right, the more revenues we're going to drive. So I'd be surprised if we don't raise those guidance again at the end of the next quarter. But, you know, let's look carefully. This is great growth.
Rob Ellin: And again, at the end of next quarter, but you know, let's, let's look carefully. This is this is great growth, spectacular growth for podcasts. Let's look at, let's look at that number again at the end of this quarter. And yeah, and really make sure that we're going to beat the number, right? It's a tough market out there. As you know, we want to make sure we beat the number. Thank you very much.
Speaker Change: spectacular growth for podcast one let's look at let's look at that number again at the end of this quarter and you know and really make sure that we're going to beat the number right this is tough market out there as you know we want to make sure we beat the numbers
Speaker Change: Thank you very much, appreciate it.
Sean McGowan: We now turn to Sean McGowan with Roth Capital Partners. Your line is open, please go ahead. Thank you.
Sean McGowan: We now turn to John Levierkis with Levierkis Financial. Your line is open, please go ahead. Hey guys, congratulations on a strong quarter and sorry for the technical problems on the conference call with Sean. There were some. But anyway, an excellent presentation.
Speaker Change: We now turn to John Levierkis with Levierkis Financial. Your line is open, please go ahead.
John Levierkis: Hey guys, congratulations on a strong quarter and sorry for the technical problems on the conference call with Sean, there were some issues.
Aaron Sullivan: I apologize if these questions have been asked or had I get dropped from the call a couple of times. First, Aaron, on cost of sale seems to be a little higher than we had expected, particularly at the podcast one. Can you talk about what's driving that? Yeah, how are you? Yeah. So, you know, our content acquisition costs have been a little bit higher than we anticipated. That's kind of, you know, the upfront cost of signing some of these deals and a new podcast, you know, going forward, we expect it to level out over the next couple of quarters, about where we're at today and then, you know, start to improve from there.
John Levierkis: But anyway, excellent presentation, quick question for you.
John Levierkis: Quick question for you. So at one time, the company disclosed its relationship with J.P. Morgan and represented them in strategic dialogue. Any comments you want to make and what your plans are there and how it's progressing? I mean, we've always been an acquisition vehicle. And we've been hampered, you know, over the last couple of years from doing that because of all the different, you know, all the different difficulties that have been out there.
Speaker Change: So, at one time the company disclosed its relationship with J.P. Morgan and represent them in strategic dialogue. Any comments you want to make and what your plans are there and how it's progressing?
Speaker Change: I mean, we've always been an acquisition vehicle and we've been hampered, you know, over the last couple of years from doing that.
Rob Ellin: This is certainly a time that, you know, both offensively and defensively, we're continuing to aggressively explore and are extremely excited about the opportunities that are out there. And, you know, as we keep moving up the ladder, we're number 11 in the world in podcasting, and we're number 10 in audio, right? We're certainly a candidate that someone could come aggressively try to buy us.
Speaker Change: all the different difficulties that have been out there. This is certainly a time that both offensive and defensively, we continue to aggressively explore.
Aaron Sullivan: I'm tying that, but you know, a question for Rob then. Is this surprising to you? I thought we were in an environment where it was actually going to be easier to pick up, you know, shows that we're either going to drop, they're not going to need them the same terms from other networks. Is that proving not to be the case or less of the case than we expected? No. No, it's actually really exciting.
Speaker Change: and are extremely excited about the opportunities that are out there.
Speaker Change: right? And, uh, you know, as we keep moving up the ladder, we're number 11 in the world in podcasting. We're number 10 in audio, right? We're certainly a candidate that so
Rob Ellin: But we're also, we're also looking at some great assets that Meteor assets have been decimated, you know, and probably even more on the public side, in the private, there are some great assets out there that we will aggressively look at. If we can find another slacker, we can find another podcast one. We bought both of those companies doing 20 million in revenues, right slackers now on a run rate to do
Speaker Change: to come aggressively try to buy us, but we're also we're also looking at some great assets that media assets have been decimated, you know, and
Aaron Sullivan: We're just signing so many podcasts. We're announcing one almost every week and there's a cost to it, right? The way that it works, Sean, in podcast in the United talk about this little bit is you sign the podcast, right? You pay him some money, right? Even if they start doing the podcast the next morning, you're paying them for the next three months and you're not collecting back your money for three to four months.
Speaker Change: probably even more on the public side than the private. There's some great assets out there that we will aggressively look at. If we could find another Slacker, we could find another Podcast One. We bought both of those companies doing 20 million in revenues.
Speaker Change: Right? Slacker is now on a run rate to do 85, right? Um, we bought Podcast One doing 20 million. It's now on a run rate to do over 50 million.
Rob Ellin: We bought podcast one doing 20 million, and it's now on a run rate to do over 50 million. If we can find another great asset that is accretive to us and fits in with the team and the skills that we have, we are absolutely aggressively looking on both sides, both offensively and defensively. And yeah, the entire JP Morgan team is coming in for the event tonight. So we're deep in the trenches with them on a regular basis, experiencing all the excitement and energy around both sides, both offensively and defensively. Sounds great.
Speaker Change: if we can find another great asset that is accretive to us.
Aaron Sullivan: So there's a window at time. So I would say, you know, you know, Aaron hit it right in the nose, but it's really, it's really exciting how many how many podcasts were signing and they're adding about 350 to 500,000 on average per revenue. Every single one of these podcasts is a joint. So there's going to be a little cost to it in the beginning, but can't really be, can't be better than then growing the revenues right now and doing that and and we'll we'll achieve we'll we'll get that in the back end.
Speaker Change: and fits in with the team and the skills that we have. We are absolutely aggressively looking on both sides, both offensively and defensively. And yeah, the entire JP Morgan team is coming in for the event tonight. So we're deep in the trenches with them on a regular basis on all the excitement and energy around both sides, both offensively and defensively.
John Levierkis: The Slacker acquisition looks to be brilliant, and what a job that Brad's been doing. Any quick comments on that? You mentioned 63 B2B contracts in a pipeline, but actually now you're saying that those are really the core opportunities, and there's vastly more than that and a pipeline. That's an interesting comment. And what's the intellectual property there? How many patents do you have? And how does that differentiate from the rest?
Speaker Change: Sounds great. The slacker acquisition looks to be brilliant and what a job that Brad's been doing.
Aaron Sullivan: We'll get those back in the back end when when we start to get paid by the advertisers. So it's not so much that you have to pay more per podcast to get and it's just that you're signing more than you're expected to. So that's why the cost is higher. Yeah, yeah, and you know, this has been really exciting. There's been some really exciting, you know, signings as well, you know, that, that, you know, there's a little bit there's a little bit of money. It's got to go out to do it day one. Okay, got it.
Speaker Change: Any quick comment on that? You mentioned 63.
Speaker Change: B2B contracts in a pipeline, but actually, now you're saying that that's...
Speaker Change: really the core opportunities, and there's vastly more than that in a pipeline. That's an interesting comment.
Speaker Change: What's the intellectual property there, how many patents do you have and how that differentiates from the rest? It seems to be really taking off that business.
Rob Ellin: Seems to be really taking off in that business. It's a unique model, et cetera. Yeah, well, we have over 40 patents. I think, from a patent standpoint, we're one of the thought leaders in the space. I think from the standpoint of our IP, this is the first time we're starting to showcase how valuable our IP can be. Just think about taking a podcast, right?
Robert Ellin: And then in terms of, you know, to talk, you talked a lot about these deals that you're in process with and signing and, you know, lining up more partners. So is your strategy then to only update or improve or increase the revenue guidance once the deals are signed? Because, you know, I would have thought that if you're signing new deals and you close on some others, maybe you can increase the revenue guidance.
Speaker Change: It's a unique model, etc.
Speaker Change: Yeah, well, we have over 40 patents.
Speaker Change: I think, you know, from a patent standpoint, you know, we're one of the thought leaders in the space. I think from the standpoint of our IP,
Robert Ellin: Is it you're just going to wait until they're nailed down? Well, I think, I think, you know, the, the guidance is a good number right now and we'll get a, we're going to, as we announced the next B2B deals, right? Again, the more, the bigger our distribution is the bigger our audiences, like the more revenues we're going to drive. So I'd be surprised if we don't raise those guidance again at the end of the next quarter.
Speaker Change: This is the first time we're starting a showcase.
Rob Ellin: And I said Barnumtown would be a bidding war, right? We just sold the rights to it, and we'll talk about who the partner is very shortly, right? And in taking a podcast that cost us almost no money, right? You know, literally limited money, and now selling it on television for very serious money.
Speaker Change: how valuable our IP can be in just
Speaker Change: Just think about, think about taking a podcast, right, and, you know, and I said Barnumtown would be a bidding war, right? We just sold the rights to it, and we'll talk about who the partner is very shortly, right? And in taking a podcast that cost us almost no money...
Robert Ellin: But, you know, let's, let's look carefully. This is, this is great growth, spectacular growth from podcast one. Let's look at, let's look at that number again at the end of this quarter and, you know, and really make sure that we're going to beat the number, right? This is a tough market out there as you know. We want to make sure we beat them.
Speaker Change: Bye.
Sean McGowan: Thank you very much, appreciate it.
Speaker Change: Yeah, literally limited money and now selling it to television, very serious money.
Speaker Change: and I'm going to be talking about the the the the the the the the the the the the the the
Rob Ellin: My background and my team's background, we've made a lot of movies, we've made a lot of television shows, so the cost is zero to us going forward. So when you own that IP, you get a second window of money that could be staggering. All right. And, you know, I said we're going to sell one a year for the next couple of years. Now we've sold two this year. If we could sell two a year, we could make tens of millions of dollars in profits, let alone, let alone, you know, revenues, but profits that come to the company over the next few years with no additional cost to us.
Speaker Change: My background previously and my team's background. We've made a lot of movies We've made a lot of television shows. The cost is zero to us going forward So when you own that IP you get a second window of money that could be staggering All right, and you know, I said we're gonna sell one a year for the next couple of years now. We've sold two this year
Jon LeVirquez: We now turn to Jon LeVirquez with LeVirquez Financial. Your line is open, please go ahead. Hey guys, congratulations on a strong quarter and sorry for the technical problems on the conference call with Sean, there was some issues. But anyway, excellent presentation, quick question for you. So at one time the company disclosed its relationship with JPMorgan to represent them in strategic dialogue. Any comments you want to make and what your plans are there and how it's progressing?
Speaker Change: If we could sell two a year, it could be tens of millions of dollars.
Speaker Change: in profits, let alone, you know, revenues, but profits that come to the company over the next few years with no additional cost to us.
Rob Ellin: And just to give you an idea of both Vigilante and Barnumtown, you know, their streaming partners are going to be in. By the time, you know, we turn the corner, Vigilante, they've already spent well over a million dollars on it. And Barnumtown will be well over a million dollars shortly, too.
Speaker Change: and just to give you an idea on both Vigilante and Barnumtown, you know, their streaming partners are going to be in, by the time, you know, we turn the corner, Vigilante, they've already spent well over a million dollars on, Barnumtown will be well over a million dollars shortly that, you know, studios are spending money on. And because we have a proven, not only do we have proven IP, but on top of having the IP,
Rob Ellin: And because we have a proven, not only do we have proven IP, but on top of having the IP, we have proof that there's an audience. When we go into those negotiations, we go with a very different bullet than you go in when you just go in and you have a book or a script or a great story. I see really, really great opportunities and excitement around that. And, you know, for anyone who doesn't know, I owned Atmosphere Films previously and was fortunate enough to have the movie 300 and the Spiderwick Chronicles. And when the studios are paying for these things, you never know how far they can go.
Speaker Change: We have proof that there's an audience.
Speaker Change: When we go into those negotiations
Jon LeVirquez: I mean, we've always been an acquisition vehicle and we've been hampered, you know, over the last couple of years from doing that, you know, all the different, you know, all different difficulties that have been out there. This is certainly a time that, you know, both offensive and defensively, we are continue to aggressively explore and are extremely excited about the opportunities that are out there, right? And, you know, as we keep moving up the ladder, we're number 11 in the world and podcasting, we're number 10 in audio, right?
Speaker Change: We go with a very different bullet.
Speaker Change: And when you just go in and you've got a book or a script or a great story, I see really, really...
Speaker Change: super opportunities and excitement around that and
Speaker Change: Yeah, for anyone who doesn't know, I owned Atmosphere Films previously and was fortunate enough to have the movie 300 and Spiderwick Chronicles. And when the studios are paying for these things, you never know how they can go. And 300 ended up doing it, you know, 1.1 billion dollars in revenues.
John Levierkis: And 300 ended up doing, you know, $1.1 billion in revenues. So we're really energized about owning our own IP, and kind of this team skill is owning our own IP. Thank you. We now turn to Zakim Ismailovi with, sorry, A Private Investor. Your line is open, please go ahead. Second, your line is open. Ah, sorry, I'll admit it. Thank you all for your presentations and congratulations on your remarkable, remarkable results. And most of my questions have already been answered, but I still have some more questions. And first of all, I noticed that, you know, the general and administrative costs are quite increased, and could you explain that? How would you describe this guy?
Speaker Change: So we're really energized about owning our own IP and it's kind of this team skill is owning our own IP.
Jon LeVirquez: We're certainly a candidate that could come aggressively try to buy us, but we're also looking at some great assets that need your assets have been decimated, you know, and probably even more on the public side than the private. There's some great assets out there that we will aggressively look at. If we could find another slacker, we could find another podcast one. We bought both of those companies doing 20 million revenues, right?
Speaker Change: Great. Thank you, Rob.
Zakim Ismailović: I don't know where to take it, and I'm having a little trouble hearing. I'll take that one. Yeah, I think the question was whether our DNA expenses have increased. And so yeah, the two drivers for that one are additional stock-based compensation. We've had some executive contracts that have some stock-based comp in them, and that's kind of across the business unit, and then specifically as it relates to Podcast One, and this is kind of included in consolidated results as well, there's additional G&A just as it's a separate public entity, so you've got additional legal accounting and just general public company That's really what's driving the increase in G&A. So there's no extraordinary cost.
Speaker Change: We now turn to Saqib Ismailoiz, a private investor. Your line is open, please go ahead.
Jon LeVirquez: Slackers now want to run rate to do 85, right? We bought podcast one doing 20 million. It's now on a run rate to do over 50 million. If we can find another great asset that is accretive to us and fit in with the team and the skills that we have, we are absolutely aggressively looking on both sides both offensively and defensively. And, you know, the entire JP Morgan team is coming in for the event tonight.
Speaker Change: Sakam, your line is open.
Saqib Ismailoiz: Thank you.
Saqib Ismailoiz: Thank you all for your presentation and congratulations on your remarkable results.
Saqib Ismailoiz: Most of my questions have already been answered, but I still have some more questions.
Jon LeVirquez: So we're deep in the trenches with them on a regular basis on all the excitement and energy around both sides both offensively and defensively. Sounds great. The slacker acquisition looks to be brilliant. And what a job that Brad's been doing. And any quick comment on that, you mentioned 63 B2B contracts in a pipeline. But actually, now you're saying that that's really the core opportunities. And there's vastly more than that in a pipeline.
Speaker Change: I noticed that, you know, the jail and administrative, uh...
Speaker Change: Costs are quite increased and could you explain it?
Speaker Change: How could we expect this to go?
Speaker Change: You want to take it? I'm having a little trouble hearing. I'll take that one.
Speaker Change #100: Yeah, I think the question was, our G&A expenses have increased. So, yeah, there are two drivers to that. One is additional stock-based compensation. We've had some executive contracts.
Jon LeVirquez: That's an interesting comment. And what's the intellectual property there that how many patents do you have? And how that differentiates from the rest seems to be really taking off that business. It's unique model, et cetera. Yeah, well, we've over 40 patents. I think, you know, from a patent standpoint, you know, we want to talk leaders in the space. I think from a, from the standpoint of our IP, this is the first time we're starting to showcase how valuable IP can be.
Speaker Change #100: that have some stock-based comps in them, and that's kind of across the business unit. And then specifically as it relates to podcast one, and this is kind of included in consolidated results as well, there's additional GNA just as it's a separate.
Speaker Change #100: public entity so you've got additional legal accounting and just you know general public company expenses that's really what's driving the increase in G&A
Speaker Change #100: So, we have no extra ordinal costs, including the...
Aaron Sullivan: Unknown Speaker. Unknown Speaker. Unknown Speaker. Sorry, I didn't quite catch that. Can you repeat that? Uh, awesome. Yeah, I think if we get here, it's really... Yeah, I think it's really hard to hear you.
Jon LeVirquez: And just think about, think about taking a podcast, right? And, you know, and I said bottom town would be a bidding war, right? We just sold the rights to it. And we'll talk about who the partner is very shortly, right? And in taking a podcast that costs us almost no money, right? You know, literally the money you're now selling at the television. They're very serious money. My background previously and my team's background, we've made a lot of movies.
Speaker Change #101: Sorry, I didn't quite catch that. Can you repeat that?
Speaker Change #101: Awesome.
Speaker Change #102: Yeah, I think if we get here right, it's really...
Jon LeVirquez: We made a lot of television shows. The cost is zero to us going forward. So when you own that IP, you get a second window of money that could be staggered, right? And, you know, I said we're going to sell one a year for the next couple of years. Now we've sold two this year. If we get sold two a year, it could be tens of millions of dollars in profits, let alone, let alone, you know, revenues.
Rob Ellin: But but I think Aaron and our finance team have done a brilliant job in that we're filing two audited financials, right? So there are additional costs there, both legal and accounting for both, both the public companies LiveOne and PodcastOne. And then we also explored the opportunity of doing a SPAC with Slack or radio, right? And so there were also additional costs of doing the audit on Slack. So and, you know, stay tuned on that. There'll be some excitement and energy around that as well. But there are additional legal and accounting costs there.
Speaker Change #103: Yeah, I think it's really hard to hear you, but I think just to answer you, Aaron and our finance team have done a brilliant job in that we're filing two audited financials
Speaker Change #103: There's additional costs there, both legal and accounting for both.
Speaker Change #103: about the public companies, live one and podcast one. And then we also explored the opportunity of doing a SPAC with Slacker Radio, right? And so there was also additional costs of doing the audits on Slackers. So, and, you know, stay tuned on that. You know, there'll be some excitement and energy around that as well. But there is additional, both legal and accounting costs to this.
Jon LeVirquez: But profits that come to the company over the next few years with no additional cost to us. And just to give you an idea on both vigilante and, and bottom town, you know, the streaming partners are going to be in by time, you know, we turn to corner vigilante. They've already spent well over a million dollars on bottom town of the well over a million dollars shortly. That, you know, studios are spending money on it.
Jon LeVirquez: Because we have approved in, not only do we approve an IP, but on top of having the IP, we have proof that there's an audience. When we go into those negotiations, we go to the very different bullet. Then you go in when you just go in and you got a book or a script or great story. I see really, really super opportunities and excitement around that. And you know, for anyone who doesn't know, I owned atmosphere films previously and was fortunate enough to have the movie 300 and spiderweb chronicles.
Zakim Ismailović: Okay, thank you. And one more question. He's very new to our division, maybe to some extent, explained by his own factor. These are existing tracks in our division in India. Can you try that one more time?
Speaker Change #104: Okay, thank you. And one more question. Is that very real from our division, maybe in some extent explained by regional factors?
Speaker Change #105: He ran a physical theft case in our division earlier.
Jon LeVirquez: And when the studios are paying to these things, you never know how they can go and 300 ended up doing a, you know, 1.1 billion dollars in revenues. So we're, we're really energized about owning our own IP and kind of kind of this team skill is owning our own IP. Okay. Great. Thank you, Rob.
Zakim Ismailović: And I really apologize. Is there seasonal pressure across the business units? Seasonal factors.
Speaker Change #106: Can you try that one more time? I really apologize.
Speaker Change #107: Is there seasonal pressure across the business units? Seasonal pressure. I think that was the question.
Speaker Change #108: Seasonal Factors.
Rob Ellin: Yeah, we have some. You got it, Aaron. Go ahead, Rob. Alright, so I'll take it. In our merchandise business and in podcasts, our Q3, which is fiscal Q3 or calendar Q4, that's our largest quarter. But other than that, you know, our subscription business, there's no seasonality there. And that kind of evens things out a little. Okay, thank you.
Speaker Change #109: Yeah, we have some seats.
Speaker Change #109: You got it, Aaron. Go ahead, Rob.
Unknown Executive: We now turn to Sakem Ismaloi's with, sorry, a private investor.
Rob Ellin: All right, so I'll take it. So in our merchandise business and in podcasts, our Q3, which is fiscal Q3 or calendar Q4
Aaron Sullivan: Your line is open please go ahead. And congratulations to Markable, Markable results. And there is most of my questions already been answered, but I still have some questions. And the first one is, I noticed that the general and administrative costs are quite increased and could you explain it? Yeah, I'll take that one. Yeah, I think the question was our DNA expenses have increased. So, yeah, there's two drivers to that. One is additional stock based compensation.
Rob Ellin: That's our largest quarter, but other than that, you know, our subscription business, no seasonality there, and that kind of evens things out a little bit.
Speaker Change #110: Okay, thank you.
Zakim Ismailović: As a reminder, if you'd like to ask a question, please press star one on your telephone keypad now. We have no further questions, and I'll hand you over to Robert Ellin for any final remarks. Yeah, I think we covered a lot today. I think we covered a lot on earnings and how spectacular the numbers were. I want to thank everyone for joining and thank everyone for the support. And we look forward to updating everyone very shortly on some major B2B partnerships, and those four that we have already signed will be announced shortly, and there'll be more to come.
Speaker Change #111: As a reminder, if you'd like to ask a question, please press star 1 on your telephone keypad now.
Aaron Sullivan: We've had some executive contracts that have some stock based comp in them and that's been across the business units. And then specifically as it relates to podcast one and this kind of included in salivated results as well. There's additional GNA, just as it's a separate public entity, so you've got additional legal accounting and just general public company expenses. That's really what's driving the increase in GNA. So, there's no extra ordinal cup included there.
Speaker Change #111: i
Speaker Change #111: We have no further questions and I'll hand back to Robert Ellin for any final remarks.
Robert Ellin: Yeah, I think we covered a lot today. I think we covered a lot in the earnings and how spectacular the numbers were. I want to thank everyone for joining and thank everyone for the support.
Speaker Change #113: and we look forward to updating everyone very shortly on some major B2B partnerships and those four that we have already signed will be announced shortly and there'll be more to come. So thank you everyone and appreciate it and we look forward to the next call.
Rob Ellin: So thank you everyone and appreciate it. And we look forward to the next call. Ladies and gentlemen, today's call is now concluded. We'd like to thank you for your participation. You may now disconnect your line. [music]
Speaker Change #114: Ladies and gentlemen, today's call is now concluded. We'd like to thank you for your participation. You may now disconnect your lines.
Speaker Change #115: . . . . . . . . . . . . . . . . . . . .
Aaron Sullivan: Sorry, I didn't quite catch that. Do you take that? Yeah, I think it's really hard to hear you, but I think I think you know, just answer you, Aaron and our financing have done a brilliant job in that we're filing two audited financials, right, to additional costs there, both legal and accounting for both the public companies live wanted podcast one, and then we also explored the opportunity of doing a SPAC which lack a radio, right?
Aaron Sullivan: And so there was also additional costs of doing audits on slackers. So, you know, stay tuned on that, you know, there'll be some excitement and energy around that as well. But there is additional, both legal and accounting costs.
Aaron Sullivan: Okay, thank you, and one more question. Is that radio from all these regions, maybe some of the things that are going by additional traffic? I think the question is, is there seasonal pressure across the business units and seasonal factors? Yes, we have some seeds. In our merchandise business and in podcast, our Q3, which is fiscal Q3 or calendar Q4, that's our largest quarter. But other than that, you know, our subscription business, no seed now to be there. And I think that kind of even seems a little bit.
Unknown Executive: Okay, thank you. As a reminder, if you'd like to ask a question, please press stall one on your telephone, keep at now.
Robert Ellin: We have no further questions on a handbag to Robert Ellin for any final remarks. Yeah, I think we covered a lot today. I think we covered a lot in the earnings and how spectacular the numbers were. I want to thank everyone for joining and thank you for the support. And we look forward to updating everyone very shortly on some major B2B partnerships and those forward that we have already signed will be announced shortly and there'll be more to come. So thank you everyone and appreciate it. And we look forward to the next call.
Unknown Executive: Ladies and gentlemen today's call was now concluded. We'd like to thank field participation. You may not disconnect your lines.