Los Angeles-based LiveXLive Media (LIVX) operates a platform for streaming songs, podcasts, and videos live and on-demand. Its brands include Slacker Radio and PodcastOne. Let’s take a look at the company’s recent financial performance and risk factors.
LiveXLive’s Fiscal 2021 Financial Results and 2022 Guidance
On June 28, the company reported its Fiscal 2021 financial results for the period ended March 31. Revenue increased 69% to $65.2 million. Adjusted operating loss narrowed to $0.3 million from $7.9 million a year ago.
“Despite tremendous headwinds in calendar 2020 due to COVID 19, we managed record financial results across nearly all operating metrics…With the imminent return of live music events, we expect an increase in revenue from nearly every aspect of our flywheel,” commented LiveXLive CEO Robert Ellin.
The company had $25 million in cash as of June 25, an increase from $18.8 million at the end of March. For Fiscal 2022, LiveXLive expects to report revenue in the range of $110 million – $120 million. (See LiveXLive stock charts on TipRanks).
LiveXLive’s Risk Factors
According to the new Tipranks Risk Factors tool, 118 risk factors have been identified for LiveXLive. Finance and Corporate is the primary risk category, accounting for 29% of the total risks. The Ability to Sell and Production are the next major risk categories at 25% and 17%, respectively.
Since March 2021, LiveXLive has adjusted its risk profile to remove three risks and add 22 new risks. A newly added risk factor under the Finance and Corporate category cautions about the stock repurchase program announced in December 2020.
LiveXLive’s board authorized the repurchase of as many as 2 million shares. The company now says there is no guarantee it will repurchase the shares. It cautions that terminating the program could adversely affect its stock price. Furthermore, the company warns that executing the repurchase program could reduce its cash reserves.
Another key risk that LiveXLive has highlighted is that it may not be able to repay some of its debts at maturity. The company has $4.7 million of debt due in Fiscal 2022, and $19.9 million of debt due in Fiscal 2023. It warns that defaulting on the debts would increase its interest rates, and could even lead to the loss of collateralized assets.
The Finance and Corporate risk factor’s sector average is 35%, compared to LiveXLive’s 29%. The company’s shares have gained 20% since the beginning of 2021.
Analysts’ Take
In June, H.C. Wainwright analyst Kevin Dede reiterated a Buy rating on LiveXLive stock with a price target of $7. Dede’s price target suggests 77.66% upside potential.
Consensus among analysts is a Moderate Buy based on 2 Buys. The average LiveXLive price target of $7.50 implies 90.36% upside potential to current levels.
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