LiveXLive Reaches 720,000 Subscribers, Burning Through $9.8 Million in the Process

LiveXLive Media, a global live streaming company, has posted its financial results for the fiscal Q4 2019 quarter ended on March 31st, 2019. The company has reported a revenue of $9.2 million, which is a slight increase from $9 million in the previous quarter, and a contribution margin of $2.2 million, up from $1.4 million in the previous quarter. The growth in revenue and contribution margin has been attributed to the strong subscriber growth of the company.

LiveXLive’s paid subscribers have recorded a significant rise of 52% YoY, which is equivalent to a net addition of 233,000 subscribers, bringing the total number of subscribers to over 680,000. As of now, the company has more than 720,000 subscribers. The company’s subscriber growth has been driven by its unique and diverse content offerings.

However, despite the growth in revenue and subscribers, LiveXLive continues to incur losses. The company has reported an operating loss of $8.5 million in Q4 2019, up from $7.2 million YoY. The net loss has also increased to $9.8 million, up from $9.5 million in the previous year. Adjusted operating loss has decreased to $1.9 million, down from $2.4 million in Q4 2018. These losses are mainly due to incremental investments made by the company to drive long-term growth, which include producing and streaming live events.

During Q4 2019, LiveXLive streamed and produced five live events, including ALTerEGO, EDC Mexico, LiveXLive Presents after the Grammys, LiveXLive Presents at CES Las Vegas, and the Weezer Album Release Party. These events, along with the company’s other growth activities, have driven the increases in net loss, operating loss, and adjusted operating loss.

LiveXLive Media’s fiscal 2019 has been quite successful as the company has achieved over 50 million livestreams, 400 artist streams, and 400 hours of live music content stream. In the first two months of its fiscal 2020, LiveXLive has generated over 20 million livestreams, 85 artists, and 125 hours of live music content streamed.

Despite the company’s losses, LiveXLive has been working towards its goal of becoming the go-to platform for live music streaming. The company has partnered with major music festivals, including Rock in Rio and Montreux Jazz Festival, to stream their events. Additionally, LiveXLive has collaborated with major music labels, including Sony Music, Universal Music Group, and Warner Music Group, to bring their artists to its platform. These partnerships have enabled the company to offer a unique and diverse range of music content to its subscribers.

In conclusion, LiveXLive Media has recorded a growth in revenue, contribution margin, and subscribers, but continues to incur losses due to its investments in long-term growth. The company’s success in live music streaming and its partnerships with major music festivals and labels may help it achieve its goal of becoming a dominant player in the music industry.

Speaking about the company’s financials, Michael Zemetra, LiveXLive’s Chief Financial Officer, explained,

We’re pleased with our accelerated subscriber growth and record financial performance throughout fiscal 2019.  We ended fiscal 2019 with over 50% growth in paid subscribers and launched key sponsorships and programming across our music platform.

“With the year-over-year and sequential improvements in our contribution margins and operating results, we remain well positioned to continue investing in our immediate growth objectives.

With its “incremental investments,” it remains to be seen whether the company can actually post a profit.

 


Featured image by Paul Hohmann (CC by 2.0).