Loop Media Inc, a prominent multichannel streaming platform renowned for its curated music videos, sports coverage, news updates, and entertainment channels, as well as its provision of digital signage solutions for businesses, disclosed its financial and operational results for the fiscal year and fourth quarter (Q4) ending September 30, 2023. In the aftermath of this announcement, the company witnessed a decline in its stock value during Wednesday morning trading.
At the time of this publication, Loop Media Inc stock (LPTV) has witnessed a decline.
Loop Media Inc
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Loop Media Financial Results – Fiscal Year (September 30) 2023
For the fiscal year 2023, Loop Media reported a 3% uptick in revenue, reaching $31.6 million, compared to the $30.8 million recorded in the 2022 fiscal year. This surge was attributed to increased demand from partners, direct sales agreements, collaborations, and advancements in software efficiency.
However, gross profit for the fiscal year 2023 amounted to $10.7 million, a decrease from the $11.4 million reported in the previous fiscal year. The gross margin contracted to 33.7% in 2023, down from 36.9% in 2022. This reduction was primarily influenced by shifts in revenue composition and additional licensing expenses.
Total sales, general, and administrative (SG&A) expenses, excluding certain items, rose to $29.4 million in fiscal 2023, up from $24.5 million in the preceding fiscal year. The surge was mainly attributed to elevated marketing expenditures in the first half of 2023, increased payroll expenses, augmented board and professional fees, and escalated software and IT costs.
Loop Media reported a net loss of $(32.0) million, translating to $(0.49) per share, for the fiscal year 2023, in comparison to a net loss of $(29.5) million, or $(0.61) per share, for fiscal 2022. The Adjusted EBITDA for the fiscal year 2023 was $(15.7) million, contrasting with $(10.3) million for the preceding fiscal year.
Loop Media Financial Results – Fiscal Q4 (September 30) 2023
In the fiscal fourth quarter of 2023, Loop Media witnessed a significant 53% decrease in revenue, totaling $5.7 million, as opposed to $12.2 million reported for the same period in fiscal 2022. This decline was primarily attributed to a substantial reduction in digital advertising spend prompted by prevailing macroeconomic conditions.
The gross profit for the fiscal fourth quarter of 2023 was $1.6 million, down from $4.6 million in the corresponding period of fiscal 2022. The gross margin contracted to 27.5%, compared to 38.1% in the previous year, primarily due to shifts in revenue composition and incremental licensing costs.
SG&A expenses for the fiscal fourth quarter of 2023 were $7.4 million, exhibiting a decrease from $9.5 million in the same period in fiscal 2022. This reduction was driven by lower customer acquisition and retention expenses, decreased payroll costs, although offset by elevated software and IT costs, and increased board and professional fees.
The net loss for the fiscal fourth quarter of 2023 was $(9.0) million, or $(0.15) per share, as opposed to a net loss of $(14.6) million, or $(0.28) per share, for the same period in fiscal 2022. Adjusted EBITDA for the fiscal fourth quarter of 2023 was $(4.8) million, compared to $(3.0) million for the corresponding period in fiscal 2022.
As of September 30, 2023, Loop Media’s cash and cash equivalents stood at $3.1 million, marking a decrease from the $14.1 million reported on September 30, 2022. This decline was primarily attributed to heightened SG&A expenses in the first half of 2023, driven by investments in expanding the Loop Player base. Additionally, the company’s total debt reached $10.7 million as of September 30, 2023, compared to $7.1 million on September 30, 2022.
