Good afternoon, and welcome to LiveOne's business update and financial results conference call for the company's third quarter and 9-month period ended December 31, 2021. Presenting on today's call are Rob Ellin, CEO and Chairman; and myself, Aaron Sullivan, Interim CFO. I would like to remind you that some of the statements made on today's call are forward-looking and are based on current expectations, forecasts and assumptions that involve various risks and uncertainties. These statements include, but are not limited to, statements regarding the future performance of the company, including expected future financial results and expected future growth in the business. Actual results may differ materially from those discussed on this call for a variety of reasons. Please refer to the company's filings with the SEC for information about factors which could cause the company's actual results to differ materially from these forward-looking statements, including those described in its annual report on Form 10-K for the year ended March 31, 2021, quarterly reports on Form 10-Q for the quarters ended June 30, 2021 and September 30, 2021, along with subsequent SEC filings. You will find reconciliations of non-GAAP financial measures to the most comparable GAAP financial measures discussed today in the company's earnings release, which is posted on its Investors website at ir.liveone.com. And the company encourages you to periodically visit its IR website for important content. The following discussion, including responses to your questions, contains time-sensitive information and reflects management's views as of the date of this call, February 10, 2022. And except as required by law, the company does not undertake any obligation to update or revise this information after the date of this call. I'd like to highlight to investors that the call is being recorded. The company is making it available to investors and the media via webcast, and a replay will be available on its website in the Investor Relations section shortly following the conclusion of the call. Additionally, it is the property of the company, and any redistribution, retransmission or rebroadcast of the call or the webcast in any form without the company's written consent is strictly prohibited. Now I would like to turn the call over to LiveOne's CEO, Rob Ellin.

Thank you, Aaron. Good afternoon, everyone, and thank you for joining us today for our fiscal 2022 third quarter business update and financial results. We posted a record $93.6 million in revenues in the first 9 months ended December 31, 2021, a year-over-year increase of $49 million or 112% and revenue of $32.9 million in the fiscal Q3 quarter, a 72% increase compared to Q3 2021. I'm happy to say we are maintaining our guidance at $112 million to $113.5 million and raising our guidance for fiscal 2023 to $125 million to $140 million and adjusted EBITDA between $4 million and $8 million. We're also confirming our buyback of 2 million shares and our extension of our partnership with JPMorgan in exploring all options for the company. The LiveOne team has continued delivering encouraging results even as we fought through the COVID variants, first, the Delta variant; and more recently, the Omicron variant. COVID has necessitated that we push almost all of our planned live events for the current quarter out until calendar 2022. To date, we have lost more than $16 million of annual revenue to COVID restrictions. With that said, we remain extremely optimistic about the return of live events and believe we are extremely well positioned to benefit from live events going forward. As the environment and the backdrop in capital markets has changed over the past few quarters, we strategically pivoted and forwarded our path and time line to EBITDA profitability in the first quarter. We're implementing further cost and expense reductions from operations and corporate overhead which is anticipated to increase the previously implemented $5.6 million of annual cost savings to an estimated $14 million annually. It's very important to note, as live events shut down due to COVID, we expanded investment into creating content,…

Thank you, Rob. Let me spend a few minutes to provide a brief overview of our Q3 fiscal '22 results. We ended Q3 with strong results as revenue grew 72% year-over-year to $32.9 million. Contribution margin increased 15% to $5.2 million, and our adjusted EBITDA was a loss of $4.8 million, with record KPIs, including a 37% net increase in paid subscribers year-over-year. For the current 9-month period ended December 31, 2021, revenue increased 112% year-over-year to $93.6 million, while contribution margin increased 62% to $18.9 million, and our adjusted EBITDA was a loss of $8.7 million. For the Q3 fiscal '22 results, the increase in Q3 revenue was due in large part to the growth in our ticket and event revenue, paid subscribers, advertising and our successful acquisition of CPS. Growth in ticket and event revenue is the result of our live EDM event, Spring Awakening Music Festival held in October 2021. We ended Q3 with 1.3 million paid subscribers, a net increase of 369,000 subscribers as compared to 1 million subscribers reported at December 31, 2020. Please note that included in the total subscribers are certain subscribers who are subject of a contractual dispute for which we are currently not recognizing revenue. For Q3 fiscal '22 revenue, the composition was 33% subscription and 67% advertising sponsorship, merchandising and ticketing and events, compared to 44% subscription and 56% advertising sponsorship and ticketing and events in the prior year quarter. Fiscal Q3 '22 contribution margin increased 15% year-over-year to $5.2 million compared to $4.3 million in the prior year quarter. The year-over-year improvement was driven by the addition of CPS and an increase in paid subscribers, offset by a loss in live events due to the $3.1 million loss from our Spring Awakening Music Festival in October 2021, which was…

Thank you, Aaron. As I've previously spoken about our unique flywheel business model of associated and complementary businesses where the component pieces create a synergistic offering to consumers to listen, watch, attend, engage and transact. We've rolled everything into the LiveOne brand and now we are deriving revenues from 6 subsidiaries that each have $1 billion to $10 billion-plus of upside. We're not done with our acquisitions. We're excited about the next one. As we publicly said, we expect that in the very near future it will be the largest in the history of the company and the most accretive in the history of the company as we continue to build and expand our business. We have just reiterated our buyback of 2 million shares, our partnership with JPMorgan to explore all options as we feel the stock is so undervalued here trading at almost 50% of revenues. We feel this is an exciting time as you watch the growth of this business, and I want to hand it off and offer you the opportunity to ask any questions, and I'm happy to answer any. Thank you.

[Operator Instructions]

This is Matt in for Brian Kinstlinger. So first question I have is, in the earnings release, you highlighted the return of large events and cost cutting that brings you to profitability. What large events are taking place during the June quarter that if they do not occur or they get delayed could hurt your ability to achieve bottom line goals?

Yes. So I think, first, we're highly confident. As you know, we launched Spring Awakening last year right into an extremely difficult market and had to move it to October. But because it's such a powerful franchise and has so much value, right, we had to do it, right? And we lost some money on it, which a chunk of that will be collected back from the insurance company because of weather conditions as we moved it to October. We're highly confident that live is open, live is growing, right? And we think, by June, it's going to be even open even further. So we're highly confident in that. We have very little in the $125 million to $140 million. We have very little expansion of live. And then as most of you know, we launched Social Gloves last year, right? As we move into calendar, into the first year quarter of this year, right, it's exciting opportunity for us to expand and move back into that and have our next big tent-pole event across social media and music.

And just a second one, a follow-up. Does the addition of podcasting in the Tesla vehicles, does that drive a higher monthly price for the service in any way or does it improve the economics of the podcasting ad revenue?

Sure. Sure. Any time the more traffic you have, the more advertising [ gets paid ], right? It's a self-fulfilling prophecy. So we just announced putting it across, our podcast across Facebook, across 40 million Samsung TVs and now across Teslas. So the more traffic, the larger the audience, the bigger and the better it is for us. Any other questions?

Rob, it looks like there are no further questions.

Great. Well, thank you, everyone, for joining, and we look forward to our next conference call. And thank you for supporting us through a difficult market, but we're really excited where the company is going and the growth of the company. And thank you very much, have a great evening.