LiveWorld, Inc. (OTC Markets: LVWD), today announced financial results for the third quarter 2024.
Q3 2024 Financial and Business Highlights
- Total three months revenues of $3.1 million, a 13% growth rate from last year
- Healthcare revenues of $2.6 million in Q3 2024, a 17% growth rate from last year
- Net income from operations of $291,000 an improvement of $245,000 from last year
- Cash increased by $1.5 million to $6.2 million from December 31, 2023
Management Commentary
“In the third quarter we began to see our investment efforts start to pay off, with our total revenues growing from $2.8 million in the third quarter of 2023 to $3.1 million for the same period this year, or 13%. As a result, we saw a material improvement in our bottom line from approximately $46,000 to $291,000 for the period,” remarked David Houston, Chief Financial Officer of LiveWorld. “As we continue to invest for the future, we expect the second half of 2024 to be materially better with approximately 15-20% growth over our revenues in the first six months of the year.”
“While we have seen a year of tightening corporate marketing budgets and typical client attrition, we’ve been able to make up for that, with newly signed clients and growth of existing client revenue,” said Peter Friedman, Chairman and CEO. “We believe our investment for growth strategy with expanded solution sets such as media and influencer marketing is working with initial signs of client interest and purchase. We expect these and our other investments to form a foundation for growth as we move into 2025.”
Financial Review for the Three and Nine Months Ended September 30, 2024
Total revenues were approximately $3.1 million for the three months, as compared to approximately $2.8 million in total revenues reported for the same period in 2023. This was an increase of approximately $371,000 or 13% when compared to the three months of 2023. The company saw its healthcare related revenues grow from approximately $2.4 million for the three-month period ended September 30, 2023, to approximately $2.9 million, or 17%, for the same period in 2024.
Total revenues were approximately $8.5 million for the nine months, as compared to approximately $8.6 million in total revenues reported for the same period in 2023. This was a decrease of approximately $88,000 or 1% when compared to the nine months of 2023. The company anticipates the full year revenues to be approximately the same as the full year for 2023. The healthcare related revenues were relatively flat for the nine-month period in 2023 to 2024 with approximately $7.6 million in 2023 and $7.7 million in 2024.
The company reported a net income for the three months of approximately $291,000 or 9% of total revenues. This compares to net income of approximately $46,000 or 2% of total revenues reported for the three months of 2023.
The company reported a net loss for the nine months of approximately $341,000 or 4% of total revenues. This compares to net income of approximately $344,000 or 4% of total revenues reported for the nine months of 2023.
The company finished the quarter with approximately $6.2 million in cash and cash equivalents, compared to approximately $4.6 million at the end of 2023. The company’s free cash was approximately $4.0 million as of end of the third quarter. The company defines free cash as cash net of media spend for clients and deferred revenue.
Detailed financial information may be downloaded at www.liveworld.com/ir (LiveWorld’s Investor Relations page) or at https://www.otcmarkets.com/stock/LVWD/overview.
About LiveWorld
LiveWorld is a social-first digital agency that transforms customer relationships by integrating compliance, engagement, and insight solutions. We offer strategic, impactful creative, precise media targeting, responsive social moderation, software automation, and compliance support to drive and accelerate digital programs.
With over 28 years of making connections, we leverage our social media DNA to deliver emotion-driven behavior change through digital campaigns with a human touch. LiveWorld clients include the number one brands in pharmaceuticals, healthcare, and financial-travel services. LiveWorld is headquartered in Campbell, California, with an additional office in New York City. Learn more at www.liveworld.com and @LiveWorld.
“Safe Harbor” Statement Under The Private Securities Litigation Reform Act
This press release may contain forward-looking information concerning LiveWorld plans, objectives, future expectations, forecasts and prospects. These statements may include those regarding LiveWorld’s current or future financial performance including but not limited to lists of clients, revenue and profit, use of cash, investments, relationships and the actual or potential impact of stock option expense, and the results of its product development efforts. Actual results may differ materially from those expressed in the forward- looking statements made as a result of, among other things, final accounting adjustments and results, LiveWorld’s ability to attract new clients and preserve or expand its relationship with existing clients, LiveWorld’s ability to retain and attract high quality employees, including its management staff, the ability to deliver new innovative products in a timely manner, changing accounting treatments, and other risks applicable to the Company. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, and the Company undertakes no obligation to update these forward-looking statements to reflect subsequent events or circumstances.
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LIVEWORLD, INC. |
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UNAUDITED CONDENSED BALANCE SHEETS |
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(In thousands, except share data) |
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September 30, |
December 31, |
||||||
|
2024 |
2023 |
||||||
|
ASSETS |
|||||||
|
Current assets |
|||||||
|
Cash and cash equivalent |
$ |
6,164 |
|
$ |
4,635 |
|
|
|
Accounts receivable, net |
|
1,630 |
|
|
1,701 |
|
|
|
Prepaid expenses |
|
267 |
|
|
225 |
|
|
|
Total current assets |
|
8,061 |
|
|
6,561 |
|
|
|
Property and equipment, net |
|
37 |
|
|
44 |
|
|
|
Other assets |
|
26 |
|
|
27 |
|
|
|
Total assets |
$ |
8,124 |
|
$ |
6,632 |
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|||||||
|
Current liabilities |
|||||||
|
Accounts payable |
$ |
176 |
|
$ |
238 |
|
|
|
Accrued employee expenses |
|
1,134 |
|
|
890 |
|
|
|
Other accrued liabilities |
|
534 |
|
|
343 |
|
|
|
Deferred revenue |
|
1,659 |
|
|
438 |
|
|
|
Total current liabilities |
|
3,503 |
|
|
1,909 |
|
|
|
Total liabilities |
|
3,503 |
|
|
1,909 |
|
|
|
Stockholders’ equity |
|||||||
|
Common stock: $0.001 par value, 100,000,000 shares authorized 45,633,442 issued and outstanding as of September 30, 2024, and December 31, 2023, respectively |
|
34 |
|
|
34 |
|
|
|
Additional paid-in capital |
|
144,370 |
|
|
144,131 |
|
|
|
Accumulated deficit |
|
(139,783 |
) |
|
(139,442 |
) |
|
|
Total stockholders’ equity |
|
4,621 |
|
|
4,723 |
|
|
|
Total liabilities and stockholders’ equity |
$ |
8,124 |
|
$ |
6,632 |
|
|
|
LIVEWORLD, INC. |
||||||||||||
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CONDENSED STATEMENT OF OPERATIONS |
||||||||||||
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(In thousands, except per share data) |
||||||||||||
|
Three Months Ended |
Nine Months Ended |
|||||||||||
|
2024 |
2023 |
|
2024 |
2023 |
||||||||
|
Total revenues |
$ |
3,131 |
$ |
2,760 |
$ |
8,490 |
|
$ |
8,578 |
|||
|
Cost of revenues |
|
1,558 |
|
1,453 |
|
|
4,702 |
|
|
4,246 |
||
|
Gross Margin |
|
1,573 |
|
1,307 |
|
3,788 |
|
|
4,332 |
|||
|
Operating Expense |
||||||||||||
|
Product development |
|
294 |
|
253 |
|
811 |
|
|
785 |
|||
|
Sales and marketing |
|
301 |
|
359 |
|
1,271 |
|
|
1,240 |
|||
|
General and administrative |
|
687 |
|
585 |
|
2,028 |
|
|
1,798 |
|||
|
Total operating expense |
|
1,282 |
|
1,197 |
|
|
4,110 |
|
|
3,823 |
||
|
Income from operations |
|
291 |
|
110 |
|
|
(322 |
) |
|
509 |
||
|
Income before tax |
|
291 |
|
110 |
|
(322 |
) |
|
509 |
|||
|
Other Income |
|
1 |
|
1 |
|
4 |
|
|
3 |
|||
|
Provision for income taxes |
|
1 |
|
65 |
|
23 |
|
|
168 |
|||
|
Net income from operations |
|
291 |
|
46 |
|
|
(341 |
) |
|
344 |
||
|
Earnings per share analysis from operations: |
||||||||||||
|
Basic income per share |
$ |
0.01 |
$ |
0.00 |
|
$ |
(0.01 |
) |
$ |
0.01 |
||
|
Shares used in computing basic loss per share |
|
45,633,442 |
|
45,633,442 |
|
45,633,442 |
|
|
45,633,442 |
|||
|
Diluted net income (loss) per share |
$ |
0.01 |
$ |
0.00 |
|
$ |
(0.01 |
) |
$ |
0.01 |
||
|
Shares used in computing diluted income (loss) per share |
|
55,116,047 |
|
63,042,604 |
|
45,633,442 |
|
|
65,033,524 |
|||
|
Departmental allocation of stock-based compensation: |
||||||||||||
|
Cost of revenues |
$ |
21 |
$ |
15 |
$ |
58 |
|
$ |
44 |
|||
|
Product development |
|
5 |
|
|
4 |
|
|
14 |
|
|
|
10 |
|
Sales and marketing |
|
8 |
|
8 |
|
25 |
|
|
25 |
|||
|
General and administrative |
|
49 |
|
35 |
|
|
142 |
|
|
102 |
||
|
Total stock-based compensation |
$ |
83 |
$ |
62 |
|
$ |
239 |
|
$ |
181 |
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|
LIVEWORLD, INC. |
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CONDENSED STATEMENTS OF CASH FLOWS |
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|
(In thousands) |
|||||||||||||||
|
Three Months Ended |
Nine Months Ended |
||||||||||||||
|
2024 |
2023 |
2024 |
2023 |
||||||||||||
|
Cash flows from operating activities: |
|||||||||||||||
|
Net income (loss) |
$ |
291 |
|
$ |
46 |
|
$ |
(341 |
) |
$ |
344 |
|
|||
|
Adjustments to reconcile net income (loss) provided by (used in) operating activities: |
|||||||||||||||
|
Depreciation of long-lived assets |
|
6 |
|
|
8 |
|
|
19 |
|
|
23 |
|
|||
|
Stock-based compensation |
|
83 |
|
|
62 |
|
|
239 |
|
|
181 |
|
|||
|
Changes in operating assets and liabilities: |
|||||||||||||||
|
Accounts receivable |
|
452 |
|
|
205 |
|
|
72 |
|
|
681 |
|
|||
|
Other assets |
|
(43 |
) |
|
21 |
|
|
(43 |
) |
|
(42 |
) |
|||
|
Accounts payable |
|
(45 |
) |
|
(135 |
) |
|
(61 |
) |
|
(8 |
) |
|||
|
Accrued liabilities |
|
641 |
|
|
147 |
|
|
436 |
|
|
(7 |
) |
|||
|
Deferred revenue |
|
13 |
|
|
(339 |
) |
|
1,220 |
|
|
24 |
|
|||
|
Net cash provided by (used in) operating activities |
|
1,398 |
|
|
15 |
|
|
1,541 |
|
|
1,196 |
|
|||
|
Cash flows from investing activities: |
|||||||||||||||
|
Purchase of property and equipment |
|
(6 |
) |
|
(6 |
) |
|
(12 |
) |
|
(26 |
) |
|||
|
Net cash provided by (used in) investing activities |
|
(6 |
) |
|
(6 |
) |
|
(12 |
) |
|
(26 |
) |
|||
|
Cash flows from financing activities: |
|||||||||||||||
|
Proceeds from exercise of stock options |
— |
|
— |
|
— |
|
— |
|
|||||||
|
Net cash provided by (used for) financing activities |
— |
|
— |
|
— |
|
— |
|
|||||||
|
Change in cash and cash equivalent |
|
1,392 |
|
|
9 |
|
|
1,529 |
|
|
1,170 |
|
|||
|
Cash and cash equivalents, beginning of period |
|
4,772 |
|
|
4,962 |
|
|
4,635 |
|
|
3,801 |
|
|||
|
Cash and cash equivalents, end of period |
$ |
6,164 |
|
$ |
4,971 |
|
$ |
6,164 |
|
$ |
4,971 |
|
|||
|
Supplemental disclosure of non-cash financing and investing activities: |
|||||||||||||||
|
Income tax paid |
$ |
1 |
|
$ |
65 |
|
$ |
23 |
|
$ |
168 |
|
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