Loop Media Reports 2024 Fiscal First Quarter Financial Results
Q1 Shows Improvement on Top and Bottom Lines
Management Commentary
"We have now entered the historically worst advertising quarter of the year between January and March where we’ve learned to be more conservative in our expectations, but I am optimistic about the revenue ramp for the second half of 2024 and beyond. We believe the increased awareness of the Loop TV brand, and the expansion of distribution over the past year on our platforms and screens, demonstrates that our sales and marketing efforts are getting us new client wins. Our approach is to leverage our business model to continue to gain new customers on a consistent basis while focusing on the venues and markets that we know provide the best return on our investment and potential for revenue growth."
"Moreover, we will continue to explore strategic M&A opportunities that can allow us to leverage our platforms and networks further to integrate our company vertically," added
"We will continue to focus on tightening the bottom line to achieve our goal of becoming cashflow positive as soon as possible, so that could mean further cost efficiencies will need to be realized, while still being careful not to materially dampen future upside in growth. It’s always a tricky balance to accomplish that, but we plan to keep a consistent eye on it," concluded
2024 Fiscal First Quarter (
Summary Fiscal Q1 2024 vs. Fiscal Q1 2023
-
Revenue was
$10.2 million , compared to$14.8 million . -
Net loss was
$(5.3) million or$(0.09) per share, compared to a loss of$(5.3) million or$(0.09) . -
Adjusted EBITDA (a non-GAAP financial measure defined below) was
$(1.5) million , compared to$(1.6) million . -
Gross profit was
$3.6 million , compared to$5.7 million . - Gross margin was 35.6%, compared to 38.4%.
-
As of
December 31, 2023 , we had 33,783 QAUs operating on our O&O Platform, compared to 26,903 QAUs as ofDecember 31, 2022 . -
As of
December 31, 2023 , we had approximately 43,000 screens across our Partner Platforms, compared to 17,000 as ofDecember 31, 2022 .
In the 2024 fiscal first quarter, revenue decreased approximately 31% to
Gross profit in the 2024 fiscal first quarter was
Total sales, general, and administrative ("SG&A") expenses (excluding stock-based compensation, depreciation and amortization, impairment of goodwill and intangible assets, and restructuring costs) in the 2024 fiscal first quarter were
Net loss in the 2024 fiscal first quarter was
Adjusted EBITDA in the 2024 fiscal first quarter was
On
For the 2024 fiscal first quarter, we had approximately 77,000 active Loop Players and Partner Screens across the Loop Platform, which includes 33,783 quarterly active Loop Players, or QAUs across our O&O Platform, an increase of 26% (or 6,880 QAUs) over the 26,903 QAUs for the 2023 fiscal first quarter and a slight decrease of 3,238 over the 37,021 QAUs for the fiscal 2023 fourth quarter, and approximately 43,000 Partner Screens across our Partner Platforms, an increase of 153% (or 26,000) over the 17,000 Partner Screens at the end of the 2023 fiscal first quarter and 1,000 Partner Screens over the 42,000 Partner Screens announced for the 2023 fiscal fourth quarter.
Our QAU footprint for the first quarter of fiscal 2024 was reduced as a result of natural attrition of Loop Players that were not immediately replaced, as we transitioned to a more targeted distribution model, pivoting our focus to certain designated advertising markets and geographies, as well as more desirable out-of-home locations and venues, including convenience stores, restaurants, bars, and other retail establishments. We believe this targeted distribution plan will allow us to grow our active Loop Player numbers quarter on quarter and provide a more robust distribution platform for our advertising partners over time. In addition, a number of our Loop Players experienced downtime in
Conference Call
The Company will conduct a conference call today,
Loop's management will host the conference call, followed by a question and answer period.
Date:
Time:
Participant registration link: Q1 Link
Below are the details for those participants who would like to dial in and ask questions.
Conference ID: 9046830
Participant Toll-Free Dial-In Number: 1(800) 715-9871
Participant International Dial-In Number: 1(646) 307-1963
The conference call will also be available for replay on the investor relations section of the Company's website at ir.loop.tv
About
Loop® TV’s digital video content is streamed to millions of viewers in CTV / streaming / digital out of home locations including bars/restaurants, office buildings, retail businesses, college campuses, airports, among many other venues in
Loop® TV is fueled by one of the largest and most important premium short-form entertainment libraries that includes music videos, movie trailers, branded content, and live performances. Loop Media’s non-music channels cover a wide range of genres and moods and include movie trailers, sports highlights, lifestyle and travel videos, viral videos, and more. Loop Media’s streaming services generate revenue from programmatic and direct advertising, and subscriptions.
To learn more about
Follow us on social:
Instagram: @loopforbusiness
X (Twitter): @loopforbusiness
LinkedIn: https://www.linkedin.com/company/loopforbusiness/
Safe Harbor Statement and Disclaimer
This news release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including, but not limited to,
Non-GAAP Measures
The Company defines an "active unit" as (i) an ad-supported Loop Player (or DOOH location using our ad-supported service through our "Loop for Business" application or using a DOOH venue-owned computer screening our content) that is online, playing content, and has checked into the Loop analytics system at least once in the 90-day period or (ii) a DOOH location customer using our paid subscription service at any time during the 90-day period. The Company uses "QAU" to refer to the number of such active units during such period.
|
||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
Three months ended |
||||||||
2023 |
|
2022 |
||||||
Revenue | $ |
10,171,256 |
|
$ |
14,825,831 |
|
||
Cost of revenue | ||||||||
Cost of revenue - Advertising and Legacy and other revenue |
5,739,710 |
|
8,457,633 |
|
||||
Cost of revenue - depreciation and amortization |
807,007 |
|
682,167 |
|
||||
Total cost of revenue |
6,546,717 |
|
9,139,800 |
|
||||
Gross profit |
3,624,539 |
|
5,686,031 |
|
||||
Operating expenses | ||||||||
Sales, general and administrative |
6,170,977 |
|
7,958,134 |
|
||||
Stock-based compensation |
1,328,225 |
|
1,790,807 |
|
||||
Depreciation and amortization |
381,875 |
|
187,716 |
|
||||
Total operating expenses |
7,881,077 |
|
9,936,657 |
|
||||
Loss from operations |
(4,256,538 |
) |
(4,250,626 |
) |
||||
Other income (expense) | ||||||||
Interest expense |
(1,002,189 |
) |
(1,007,583 |
) |
||||
Loss on extinguishment of debt |
(25,424 |
) |
— |
|
||||
Other expense |
(1,251 |
) |
— |
|
||||
Total other income (expense) |
(1,028,864 |
) |
(1,007,583 |
) |
||||
Loss before income taxes |
(5,285,402 |
) |
(5,258,209 |
) |
||||
Income tax (expense)/benefit |
— |
|
(1,230 |
) |
||||
Net loss | $ |
(5,285,402 |
) |
$ |
(5,259,439 |
) |
||
Basic and diluted net loss per common share | $ |
(0.09 |
) |
$ |
(0.09 |
) |
||
Weighted average number of basic and diluted common shares outstanding |
66,787,371 |
|
56,381,209 |
|
||||
|
|
||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
|
|
|||||||
ASSETS | (UNAUDITED) | |||||||
Current assets | ||||||||
Cash | $ |
3,811,159 |
|
$ |
3,068,696 |
|
||
Accounts receivable, net |
7,941,430 |
|
6,211,815 |
|
||||
Prepaid expenses and other current assets |
669,360 |
|
987,605 |
|
||||
Content assets - current |
1,937,900 |
|
2,218,894 |
|
||||
Total current assets |
14,359,849 |
|
12,487,010 |
|
||||
Non-current assets | ||||||||
Deposits |
12,145 |
|
12,054 |
|
||||
Content assets - non current |
304,180 |
|
448,726 |
|
||||
Deferred costs - non current |
1,710,583 |
|
744,408 |
|
||||
Property and equipment, net |
2,533,829 |
|
2,711,558 |
|
||||
Intangible assets, net |
449,778 |
|
477,889 |
|
||||
Total non-current assets |
5,010,515 |
|
4,394,635 |
|
||||
Total assets | $ |
19,370,364 |
|
$ |
16,881,645 |
|
||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities | ||||||||
Accounts payable | $ |
6,627,014 |
|
$ |
4,978,920 |
|
||
Accrued liabilities |
2,318,599 |
|
3,546,338 |
|
||||
Accrued royalties and revenue share |
6,277,646 |
|
4,930,329 |
|
||||
License content liabilities - current |
521,746 |
|
489,157 |
|
||||
Deferred Income |
19,565 |
|
— |
|
||||
Revolving line of credit - current |
4,907,573 |
|
2,985,298 |
|
||||
Non-revolving line of credit |
1,760,000 |
|
2,124,720 |
|
||||
Total current liabilities |
22,432,143 |
|
19,054,762 |
|
||||
Non-current liabilities | ||||||||
License content liabilities - non current |
184,000 |
|
208,000 |
|
||||
Non-revolving line of credit |
441,390 |
|
475,523 |
|
||||
Non-revolving line of credit, related party |
— |
|
1,959,693 |
|
||||
Total non-current liabilities |
625,390 |
|
2,643,216 |
|
||||
Total liabilities |
23,057,533 |
|
21,697,978 |
|
||||
Commitments and contingencies |
— |
|
— |
|
||||
Stockholders’ equity | ||||||||
Common Stock, |
7,085 |
|
6,562 |
|
||||
Additional paid in capital |
129,876,691 |
|
123,462,648 |
|
||||
Accumulated deficit |
(133,570,945 |
) |
(128,285,543 |
) |
||||
Total stockholders' equity |
(3,687,169 |
) |
(4,816,333 |
) |
||||
Total liabilities and stockholders' equity | $ |
19,370,364 |
|
$ |
16,881,645 |
|
||
|
||||||||
ADJUSTED EBITDA RECONCILIATION | ||||||||
Three months ended |
||||||||
2023 |
|
2022 |
||||||
GAAP net loss | $ |
(5,285,402 |
) |
$ |
(5,259,439 |
) |
||
Adjustments to reconcile to Adjusted EBITDA: | ||||||||
Interest expense |
1,002,189 |
|
1,007,583 |
|
||||
Depreciation and amortization expense* |
1,188,882 |
|
869,883 |
|
||||
Income tax expense (benefit) |
— |
|
1,230 |
|
||||
Stock-based compensation** |
1,328,225 |
|
1,790,807 |
|
||||
Non-recurring expense |
257,242 |
|
— |
|
||||
Loss on extinguishment of debt |
25,424 |
|
— |
|
||||
Other expense |
1,251 |
|
— |
|
||||
Adjusted EBITDA | $ |
(1,482,189 |
) |
$ |
(1,589,936 |
) |
||
* Includes amortization of content assets and for cost of revenue and operating expenses and ATM facility. | ||||||||
** Includes options, Resticted Stock Units ("RSUs") and warrants. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240206582010/en/
Loop Media Investor Contact
andrew@barwicki.com
ir@loop.tv
Loop Media Press Contact
loop@phillcomm.global
Source: