LiveOne Inc (NASDAQ:LVO) stock fell 11.06% (As on June 19, 8:00:00 AM UTC-4, Source: Google Finance) after the company posted lower than expected results for the fourth quarter of FY25. Its total user base, including subscribers and ad-supported users, crossed 1.45 million, reflecting solid audience engagement and growth. On March 6, 2025, the company announced that it had surpassed 1.4 million subscribers and ad-supported users, driven by its partnership with Tesla. The Audio business, comprising Slacker Radio and PodcastOne, has achieved record revenues of $108.9 million for fiscal 2025, surpassing guidance by $2.9 million. Additionally, the division delivered a record adjusted EBITDA of $18.2 million, exceeding expectations by more than 51%. As of March 31, 2025, LVO generated cash and cash equivalents of $4 million compared with $7 million as of March 31, 2024. Accounts receivable totaled $8.8 million. Other long-term liabilities increased to $12.2 million from $9.3 million in the previous year.

Moreover, during the fiscal fourth quarter, adjusted EBITDA was $1.6 million, down 42.9%. The breakdown of adjusted EBITDA reveals a healthy $4.1 million contribution from the Audio Division, which benefited from both improved contribution margins and decreased operating costs. This growth helped offset the EBITDA loss of $1 million from Other Operations and $1.5 million from Corporate. LiveOne posted an operating loss of $8.2 million for the quarter, significantly wider than $1.2 million reported a year ago. This deterioration was mostly due to the revenue decrease, though it was partially offset by cuts in various operating expenses. A key aspect of LiveOne’s long-term strategy is its commitment to product development. In the fiscal fourth quarter, the company invested approximately $3.1 million in capital expenditures, primarily attributed to capitalized software development costs.  These funds are being channeled into the creation of an integrated music player and the buildout of pay-per-view services, both of which are poised to enhance LVO’s monetization capabilities going ahead.

LVO in the fourth quarter of FY25 has reported the adjusted loss per share of 8 cents, missing the analysts’ estimates for the adjusted loss per share of 5 cents, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue decline of 37.6 percent to $19.3 million in the fourth quarter of FY25, missing the analysts’ estimates for revenue of $25 million. This is mostly attributable to lower revenues from Slacker Radio, which has been transforming its business model.