LiveOne Announces Extended Partnership with Tesla Through May 2026

LiveOne (LVO), a prominent digital media company, has announced an updated partnership with Tesla.

Key Highlights:

1. Effective October 1, 2024, Tesla will permanently replace its streaming button with LiveOne’s.
2. The launch of LiveOne 2.0 will provide subscribers with access to music on all devices.
3. Approximately 1.9 million subscribers will have the option to upgrade to Premium or Plus services.
4. There is potential for a threefold increase in Average Revenue Per User (ARPU).
5. Starting December 1, 2024, Tesla will cease subsidizing LiveOne products for some customers, but LiveOne will offer all Tesla customers discounted music packages.
6. Tesla will continue to pay LiveOne monthly for existing grandfathered users indefinitely.

Robert Ellin, CEO of LiveOne, stated, "The conversion opportunity has enormous upside by providing Tesla owners the chance to upgrade and gain access across all devices at discounted priority pricing. We aim to drive growth, unlock new revenue streams, maintain control over our data, and enhance ARPU. To be cautious, given the timing of our conversion rate, we are adjusting our FY2025 revenue guidance to between $120 million and $135 million, with adjusted EBITDA projected at $8 to $15 million."

Financial Guidance (FY2025):

• Consolidated Revenue: $120 million – $135 million
• Consolidated Adjusted EBITDA: $8 million – $15 million
• Reaffirms $12 million buyback program
• Officially retires 4.2 million shares, reducing outstanding shares to approximately 94 million