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LOS ANGELES - LiveOne (NASDAQ:LVO), a music and entertainment technology platform, is pursuing strategic alternatives to enhance shareholder value, following the sale of Napster for $207 million. The company’s decision comes amid assertions that its market valuation does not accurately reflect its worth, according to a statement released today. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value model, with analyst price targets ranging from $1.50 to $4.00 per share, significantly above its current trading price of $0.82.
With a market capitalization of $68.51 million and a position among the top 10 in the Digital Service Provider field, LiveOne reported expected revenues exceeding $112 million for the fiscal year 2025, with its audio division alone projecting over $108 million in revenues and more than $16 million in adjusted EBITDA. InvestingPro data shows the company has achieved 11.43% revenue growth in the last twelve months, though it currently trades at a high EBITDA multiple of 92.7x.
The company, which operates subsidiaries such as Slacker Radio and PodcastOne (NASDAQ:PODC), has also noted that it has $6 million remaining in its share buyback program and has established B2B partnerships worth over $50 million. InvestingPro research reveals the company holds more cash than debt on its balance sheet, though short-term obligations currently exceed liquid assets. Subscribers to InvestingPro can access 11 additional key insights about LiveOne’s financial position and growth prospects.
Robert Ellin, Chairman and CEO of LiveOne, emphasized the discrepancy between the company’s stock valuation and its intrinsic value, especially in light of the recent Napster transaction. He indicated that the strategic review would consider various alternatives to optimize shareholder returns, given the significant global interest in the company and its subsidiaries.
LiveOne, headquartered in Los Angeles, CA, is recognized for its creator-first approach and delivers premium experiences and content globally through memberships, live events, and virtual platforms. Its offerings are accessible on various devices and platforms, including iOS, Android, Roku, Apple TV, Spotify, Samsung, Amazon Fire, Android TV, and STIRR’s OTT applications.
The company’s forward-looking statements highlight intentions to potentially engage in financing, acquisitions, spin-outs, mergers, or other transactions, though these are subject to known and unknown risks and uncertainties that could materially affect actual results.
Investors are cautioned that non-GAAP financial measures such as Contribution Margin (Loss) and Adjusted EBITDA are used by management to assess operating segment performance but should not be viewed in isolation from GAAP measures. The company’s latest EBITDA stands at $0.93 million, with a free cash flow yield of 16%, according to InvestingPro’s comprehensive financial analysis, available in the Pro Research Report covering LiveOne among 1,400+ US equities.
The details provided are based on a press release statement from LiveOne.
In other recent news, LiveOne, Inc. reported its financial results for the third quarter of 2024, missing both earnings per share (EPS) and revenue forecasts. The company posted an EPS of -$0.06, below the expected -$0.02, and revenue of $29.45 million, which fell short of the anticipated $31.35 million. Despite these financial challenges, LiveOne has expanded its user base significantly, reaching 1.4 million subscribers and ad-supported users, largely due to its partnership with Tesla. This integration into Tesla’s in-car entertainment system has been a key factor in driving growth. Additionally, LiveOne is facing a potential Nasdaq delisting due to non-compliance with the minimum bid price requirement, having been given until September 24, 2025, to regain compliance. The company is considering measures such as a reverse share split to address this issue. Furthermore, LiveOne is actively pursuing strategic initiatives, including a stock repurchase program and exploring mergers and acquisitions with the help of firms like JPMorgan. These recent developments reflect the company’s ongoing efforts to navigate financial challenges while seeking growth opportunities.
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