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SAN FRANCISCO and LOS ANGELES - LiveOne (NASDAQ: LVO), a premier streaming platform for music, podcasts, and live events, has entered into a multi-year partnership with TextNow, the leading free phone service provider in the U.S. The collaboration will give TextNow users a year of LiveOne’s Plus service, which features an ad-free experience and exclusive content, at a reduced cost.
This strategic partnership is aimed at enriching the digital lifestyle of TextNow customers by providing them with high-definition audio, unlimited skips, and exclusive shows. TextNow Chief Growth Officer, Ken Willner, emphasized the alignment of this partnership with the company's mission to deliver innovative and affordable solutions. "By offering our customers a year of ad-free streaming at a fraction of the cost, we’re enhancing their digital experience and adding incredible value to their TextNow service," said Willner.
LiveOne's CEO, Rob Ellin, also expressed enthusiasm about reaching a wider audience through TextNow’s platform. "We’re excited to bring our high-quality music and entertainment content to TextNow’s community at such an incredible value," Ellin stated.
The announcement comes as TextNow celebrates surpassing 250 million downloads, marking a significant milestone in its growth trajectory. The company is known for revolutionizing the wireless industry with its cost-effective mobile services, allowing users to communicate without the traditional constraints of wireless carriers.
LiveOne, on the other hand, is recognized for its diverse array of streaming content, including music, podcasts, and live events. The company is expanding its B2B team, increasing its workforce from 6 to 10 employees, to support its growth initiatives.
While the partnership is expected to drive revenue and EBITDA growth for both companies, it is essential to note that forward-looking statements in the press release carry risks and uncertainties. These could affect actual results and should be considered with caution.
This news is based on a press release statement and reflects the companies' current plans and expectations for the partnership.
In other recent news, LiveOne Incorporated reported its Q1 fiscal 2025 financial results, with notable growth in its Audio Division. Despite posting a consolidated net loss of $1.7 million, the division recorded record-breaking revenues of $31.9 million and adjusted EBITDA of $5.1 million. LiveOne forecasts a strong year ahead, expecting revenues of $130 million to $140 million and adjusted EBITDA between $20 million to $25 million for the Audio Division.
The company also emphasized its growing B2B partnerships and expanding membership base. It has signed four major deals and has 63 potential partnerships in the pipeline. LiveOne's membership has grown from 3.7 million to 3.9 million, and the company has seen a 300% growth in its publishing business.
The company has also expanded its stock buyback program to $12 million, with over 4.4 million shares purchased. LiveOne is also anticipating closing partnerships with companies ranging from $1 billion to $1 trillion market cap by year-end. These recent developments indicate a robust fiscal year ahead for LiveOne.
InvestingPro Insights
As LiveOne (NASDAQ: LVO) embarks on its strategic partnership with TextNow, the company's recent performance and forecasts paint a nuanced picture for investors. According to InvestingPro data, LiveOne has demonstrated a significant return over the last week, with a 14.77% increase in price total return. This uptick is indicative of positive market reception, potentially influenced by news like the TextNow partnership announcement.
In the last twelve months leading up to Q1 2023, LiveOne's revenue grew by 18.81%, showing a robust top-line expansion. However, it's worth noting that the company's short-term obligations exceed its liquid assets, which could signal liquidity concerns. This is a critical aspect for investors to monitor, especially as LiveOne aims to scale its operations through business-to-business growth and strategic collaborations.
An InvestingPro Tip that stands out for LiveOne is the prediction by analysts that the company will be profitable this year. This forecast aligns with the company’s growth initiatives and could be a turning point for investors considering the company's current non-profitable status over the last twelve months.
Investors looking to delve deeper into LiveOne’s financial health and future prospects can find additional InvestingPro Tips on the platform. Currently, there are 9 more tips available, which can help to build a more comprehensive investment thesis.
InvestingPro Data Metrics:
- Market Cap (Adjusted): $161.69M
- Revenue Growth (Quarterly) for Q1 2023: 19.13%
- 1 Month Price Total Return as of late 2023: 14.77%
This data, coupled with the anticipated profitability and the new partnership's potential to drive revenue, presents a complex but potentially rewarding investment landscape for LiveOne. As always, investors should consider these insights within the broader context of market conditions and their investment strategy.
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