Loop Media (LPTV) 12 Dec 232023 Q4 Earnings call transcript

Good afternoon, everyone, and thank you for participating in today's conference call to discuss Loop Media's financial results for the full year 2023 and the fiscal fourth quarter ended September 30, 2023.

Joining us today are Loop's CEO, Mr. Jon Niermann; and the company's CFO, Mr. Neil Watanabe. By now, everyone should have access to the full year and fiscal fourth quarter 2023 earnings press release, which the company issued earlier today at approximately 4:05 p.m. Time. Eastern available Relations is website of the www.loop.tv. at in release section Investor Loop's The

call be will replay this addition, In also company's on available website. the webcast for

call Following your open remarks, the management questions. we'll for

other forward-looking to risks These well publicly made unknown to by statements, on results law, risks known cause being call. materially to Litigation call are made Private the time with SEC. [Operator required to Instructions] Certain and as Do date are those obligation revise Except would or reflected only statements of not as results as subject any any actual which forward-looking time this subject the XXXX. are comments under Act the and the as to reliance uncertainties assumptions statements of from forward-looking and are that from and conference place these forward-looking this the differ the any webcast filings uncertainties revision considered forward-looking described statements. forward-looking Reform in undertakes statements certain of Securities company's to also undue are release statements. in company that These on

certain SEC supplemental rules. measures, been our with non-GAAP also adjusted EBITDA the including most as to reconciled The presentation All non-GAAP company's measures GAAP measures accordance in includes of performance have of financial business. measures directly comparable

and Form to charts reconciliation the furnished other press important X-K find and release SEC. in You'll information the earnings

over Loop's I like would CEO, Mr. the now Jon Niermann. turn to to call

afternoon, everyone. good and you, Thank

than fiscal of very significantly It to also year a ultimately growth necessary a measures. led can understanding CTV a rearview we that to the pleased we market, growth model fronts, on and company, to fiscal very happy 'XX digital challenging achieve us. but out-of-home which learned ahead mirror our thus, the stock market compared we several of ago, the fiscal a anticipating microcap and cost-cutting a difficult year are 'XX, a industry We in adjustment new we're was lessons lower ad and small around year managed to were have revenue that internally year-on-year restricted from announce as subsequent

result as of time we where discovered to resources stagnant we improve in should about focus believe we valuable these and very data a invest growth. However, of and of downturn out performance challenges, quarters several of our order this coming

better recovery we potential and believe believe coming we upside in stronger of as and challenges. to that improved us. to represented a are fiscal 'XX ad look ahead progress We growth in out capitalize through low new 'XX we and FY on our path be ahead and see a QX of point demand fiscal We believe what year our

In tracking optimistic off previous ahead expenses. those More appears quarters February, top in terms year fact, the we started has new revenue of line this report that on normalized about in already of year currently on it results well but are as revenue fiscal reduced the we growth we and October X ahead. X, overall SG&A when

experiencing indeed we in momentum to positive I'm pleased far are So say that QX. so

invest nonrevenue-generating and of half we XX%. in the reduce cost of by FY sales through of revenue 'XX some last plan ad SG&A a adjustments expansion while made our over year, reduction headcount fiscal achieving continuing aspects to the cuts this team. Midway business, and our second eliminating several included the overall of across Part to

player our total of the platform loop screens, the increased and Our XX,XXX FY of to distribution footprint addition over towards XX,XXX. screens partner bringing 'XX, with partner end

addition, X to monthly impressions over In estimated our video be viewed are billion.

bars, the as restaurants, those best be well have which are spend XX retail predict. markets as learned that universities, medical expected grow increasing We of continue performers, Loop to to offices, forecasts as spas media add venues the and to that industry and advertising in verticals. markets We to top players advertising several believe several have include the we share focus on continued other

We advertising around the record the spend optimistic year are projected that. and about also election

distribution revenue customer as the growth fiscal bottom partners acquisition, footprint we well we addition, the expanding the growing and deliver our future to distribution believe several look that new advertising our stronger is to efficient we revenue we our market are have line With a and encouraged pipeline the within year. about network and partners, to forward commitment supply In of company and improves strong positioned our grows. current

through call you our over to financial to With Neil the that, Neil? will results. take I turn

Jon, and everyone. Thank good you, afternoon,

In remind the million $XX.X financial million full driven unless $XX.X year $XX.X we was fourth XXXX. XXXX year, in same quarter was period year's the for quarter, XXXX, to in ago an for million to revenues our and between or fiscal gross XXXX licensing. costs As in either prior gross comparisons all of commentary quarter XX.X% fiscal in year, compared otherwise the review everyone results, compared as the platform $XX.X fourth in was of the increase rate decrease million Gross the to fiscal million mix million XX.X% platform to profit XXXX some fiscal The year In O&O the $X.X XXXX. revenue specified. in fixed I variance our to $X.X in fiscal revenue XXXX. compared the that to partner primarily was refer to XXXX. by In million the year fiscal fiscal profit fourth million fiscal fiscal margin fiscal and as In well compared was $XX.X period. want $X.X compared was

compared partner quarter, of margin with decrease The mix year fourth primarily by XX.X% driven margin percentage XX.X% a revenue business gross in in platform. attached, during quarter. was to overall ago. revenue carries margin marketing fourth lower rate was resulting the similar investment platform the year margins and gross quarter the lower ultimately the the lower O&O being gross In higher but prior partner a acquisition a business The versus operating has and expense platform

compared fiscal general for sales, million and restructuring administrative was Total were period year in excluding marketing depreciation XXXX, and and the increased increased and software expenses, spend and of the sales, half goodwill professional the IT administrative increase fiscal the the in first compared general and stock-based costs, in amortization, and amortization, stock-based $X.X $XX.X goodwill fiscal of to to costs. and and compensation, impairment XXXX. impairment fees The was XXXX. $XX.X and million expenses, to XXXX due in fourth same depreciation fiscal intangible excluding primarily intangible million assets assets compensation, restructuring million $X.X for quarter costs Total

a in marketing payroll-related targeted were and to efficiency. due primarily operating expenses, various spend, for other was decrease decrease The which

We be continue SG&A, which to year we fiscal focus expect on to in XXXX. gaining efficiencies and reflected

XXXX the fiscal for loss was of $XX loss share fiscal or fiscal or was share or $XX.X compared fourth the Net period net Our quarter $X.XX per a loss loss million million share for net a loss XXXX. $X the of net $X.XX to per $X.XX same per loss per or $X.XX million loss million year per in XXXX XXXX. compared loss in to $XX.X share fiscal loss in of

XXXX. the XXXX fiscal Adjusted to a the $X.X compared was million in fiscal million Adjusted fiscal million EBITDA to loss for loss was loss $XX.X loss in same quarter fiscal period XXXX. $XX.X of compared of in fourth a EBITDA million in the $X.X year

cash XX, and compared XXXX. on sheet balance our on $XX.X September equivalents to XXXX, were million to $X.X September million XX, Turning

$X.X As had debt of million to of XXXX. XXXX, total XX, of XX, September we September $X.X as compared million

everyone a revenues and with our as we In gross and open continue look summary, providing up expenses basis. in quarterly like we to conference will revenues, our now we listening line loss forward the it thank for margin are on to on and questions. focused remarks, today, leveraging on next to for we our I'd further prepared reduce concludes increasing EBITDA This call. to our plan updates adjusted

line the question of first Instructions] Our MKM. [Operator comes with Roth Aftahi Darren from

guys you you the that quarter, you in in OpEx quarter? Is that the reported number cost restructuring said the XX% reduction. reduction of a a $X.X million On XX% roughly think

that And of business. related Yes, some repositioning exclude XX% channels relates as were Darren. That's some SG&A. to quarter-over-quarter a of to does our our of areas basically restructuring reduction it and costs it the of

talk the of Great. quarter this on it will right that what your market and guess, can and of now? expectations in? kind think And beta I local kind current I be your how market are this material self-serve And in the can both mean kind -- in for, then the manager, that of Is we're live on business? I went your be with Loop to material live you XX. September you as about

It's live, yes.

to become and beta, digits QX We've double of as how that, pleased mix. we're more we're be But had for we kind in meaningful So we won't and know should local for into quarter. ad, of it's material terms It fiscal we 'XX, the going tested. be it's that X% our and out do that expect this continue of us. much with

So what the going we're ahead. in especially optimistic to upcoming about year be, that's

X announced where with in, feel of ball guess, redefining Great. kind 'XX? the guys category the Xandr. or in in near larger the into part term terms other are of like quarter, the -- there space more, drop and early the for relationship your we then DSP that in digital what know of you're if will may. the And kind last you you relationship. I i.e., I And game I On are Microsoft we of DSP out-of-home players call the CTV? in maybe

been to And business, drum, about TV. the answer know. the an across. get streaming message need part We've as and more TV when used people the of We last partnerships. similarities is We've and go Bob out is to used the team answer yes. means. of cable momentum So is from positive just just to there these before beating The you any is it's that evolution what anticipate to and getting do part

businesses, to out-of-home when we're not meaning people in offering streaming get to billboards. used So have

has message heard. that been certainly So

recognize But towards It is people still to good. upside, put see that there's of and being which is are starting spending we adopted, still do that. it momentum

of make I then and into medical, what O&O the curious, others. have XX,XXX? of you bar, establishments the mention I'm restaurant, of of made And the between Jon, in think, those partner, to that a Great. screens lead university percentage you remarks few kind in spa, there that you up prepared verticals kind roughly XX,XXX are want out

I frankly, best, this this O&O, make us, our that. the you think put money that is sure of important venues, their get part I make least return. know us And data been think where And of stickiness, last us. need the for where research half the just know to wants understand get that was has to I stay, an which away verticals back say, would we the the to cost are really know you everybody ones most from. than for we -- do most time, the stay where to do More they acquisition at which the back, to to we for know We the year,

the that out there we're terms ones is focused. we're fortunately, especially a out So of starting Loop as of the we player to that in our get -- as we business calling be majority are where from certainly

Our Riley question the line next Eric with Securities. of B. Wold comes from

O&O A of going the over to June September kind last X,XXX, ramp this Or few is intently the right opportunity Do course the you on up I of kind questions. quarters, as improves? you quarter, focus in the of an rate past see a more as guess, is performance of players? the quarter. question that one, the kind healthy the couple run do had feel for about you've to locations following you ahead additions be

up. be should That definitely ramped

funds that the where trend finish a TV trending we of streaming of understood about where that we're was more bit there I that, streaming amount the second but of us. really see part think we of starting the believe business We that in venues are substantial putting into it those penetrated largely for the is we're to revenue And were up a of in ahead back market. growth investment. analyzing barely year, kind as putting and kind was, we pulling we little and

going that's So to the be. we But target much, where is more than expect much certainly that. certainly

what that as move how the guess kind would of of or is guess, there will then them opt show way I could or terms locations, of percentage I political of lift is in political I that not of of out if lead And the ad see have they Understood. another network into you the appropriate a what of ad think be placements? for saying to the will environment you kind what much position in percentage coming quarters. from kind

Well, October, for what news business, our best September, us, we of is to last it could were which guess, our parts I that. November, think a I mean saw couple to ever. the good months One,

election activity that know coming strong the as that political when out year, we there. I even and anticipating So here, hasn't yet. in a also We're to presidential alluded we're you're into starting some my good kicked in part

pure just organic. that's I notice as important that's So to think really And well.

got a what good we be coming coupled with on will road. organic down you've some side, So political recovery the the believe

with In venues, we've of where they we just got AI, and comfortable terms choice. that. should the a where clearly, it's targeting percentage are with make really of show, ads that matter -- sure it they've is showing of the users and it's partnerships been And

especially majority, bother often that they really it's out opt in know but forced that. aren't they and do home, doesn't really on of good a never much on people, them So -- we that

everything it's nicely. up We stacked So good us. think is for

And for me. question just final Perfect. then

you sheet-wise and As if you're consistent kind are the in all cash a current see, changes balance that at pivot balance is help there of us you a you that positive the to gap pivot of bridge trends sheet? gap cutting kind where terms hopefully, starting think before maybe filtering the of stronger cost, look the flow of to made and you with back placements, you you've towards fine make out

a Eric, repositioning to over quarter, leveraging since XX% half in of structure this made second we're the as and we've inefficiencies last the I reduction expense see lot and continue think, prior a fourth and continuing strides XXXX. sort obviously, in we year, year of revenues our our that of ramp

over addition the done partners. of of can expansion we've business allow negotiations our some achieve our advertisers we us some We some also revenues have in as to margin those clearly that that we leverage some XXXX to believe with the and of

to that said, breakeven, on to that's flow going all to we're and cash to So us we quarter, basis. adjusted down EBITDA and needless the positive cash then allow generating cutting believe burn each getting start a say,

encouraged right being expansion growth, very margin that from expense able to we're leverage So structure. working things the a and our in direction revenue are

help not of I help will position the all So well. only will think those improve profitability cash our as that

And just little Eric. a to add more that, color to

as of after managed sort a use a cash as uplift, can. that the cash X think diluting strive some million be time type from of When I important to right operations we talked it's was could note for those same operations on at the as we're always revenue And as folks can. make and much and that sitting just Neil that we ago investment. about ever as careful most to that's best from companies had. using year possibly we as we been are that balance that to we've $XX that increases, we've We've that without sure making we're sure never

feel as the and we are So business we good especially is things. comfortable where about feel tracking, we

Research. final Marsh from of Singular comes the with question Our David line

fair start assessment? year-over-year assuming kind starting comment I pretty out mean, obviously Just strong. QX of when the looking calendar at starting as Is a you wanted tough a to on that figure. say relative comp. a to that opposed rest have means comp strong, about guys it the year type out past this you of I'm it's to

past I David, pretty to quarters as we're know. think What been flat, is it's say X that trying these by fair. you have

of is past where to is So double-digit quarters. of we -- kind our need And back to those get to X-figure We certainly be. grow of that. that to kind want type that

just the of, of number. more think giving off to kind move of really I point quarters. But been to kind few it's a we've your where past not we're over nice specific So

seeing the has follow a Loop I little just uptick better can And the guys tube seeing to that. old story the you all vehicles. get on of hopefully, the starting with advertising Yes. been strike you year. behind speaking, on been up obviously manufacturers, some the see them, are pretty bit big a Just there? momentum advertisers to back National, mean big broadly stage? on slow. it's a just are like national National But some they focused back auto come selling

are. We

certainly it back seeing we're momentum we're the on stage, definitely It's regional stage be the And everybody are. not We But Darren we're on national stage. knows. in for as well what to about, fully seeing talking and local too. certainly hoping was the it

XX And the that your the had of an been months, give and guess, and of force. in terms about upon of part kind you gone about that big your a doing in I building And from us that sales growing last away force an sales guess XX I external as kind penetration you could I kind and relying sales had in guys of right. All assistant just and and -- talked wonder internal dependence you that have type is platform just operations? to on if of bringing how transformation, update talk reducing sales on

back that I programmatic having I that and this When open that would pretty year. what think that's seeing new is started in really was we results year. into much started in into as being go the continuing exchange January, we issues we about QX, in is it solely. our And helping say the us

increasing with really more platform If bit and that us kind deals big steps to and -- sales there well. future-proof in building just by certainly local kind you direct pull recall programmatic having as side the that, by diversifying direct taken a and on the it more we've by this for of proof just team of

and lead QX fiscal. So into a pay lot started of to have this those in off new steps

I not back come to Yes. Maybe the guys on you may impact last the me number you know if revenue sure political I have take is QX how you and Can me on but the it. number? give you the obviously that? year mean handy, Right. guys that some on a could in But extremely look, And of line. significant number don't strong that it's I'm necessarily was top of sense that

it a because about meaningful good conversation, guess, we fill sure probably little in and capacity. of on at was rates a and I tested were sense. mean our is meaningful works what part it. It it was that to guess bit make really it. of was could you, I really system our I with but a the to more was we It well back part get great it it certainly

that So us, an know a we've and in we're make Keep have mind, added the that's could really growth that. just that to for ahead distribution because like it where broader works about what's excited that know it potentially to we think platform. about impact

was it It I are about. good part our growth, not So shown a quarter. we yet has and of like still having talked

when like see gets we'll that looks So it on sprinkled year. what next

concludes closing the That Niermann for remarks. Jon session. Q&A Back to

call like for Okay. further next call. Well, everyone again updates We're the Talk providing Thanks I'd business our excited for We thank headed. joining to on is forward to about look joining where us. today. the then. Bye.

to you all now today's presentation, disconnect. like concludes joining I'd call, today's may and you us. thank This our for speakers for thank and now