Executive Summary

Q1 2024 revenue rebounded to $10.17M, up 79% QoQ from $5.69M in Q4 2023 on organic demand (no political ad spend), while Adjusted EBITDA loss narrowed sharply to $(1.48)M from $(4.85)M QoQ .
YoY, revenue fell 31% vs $14.83M (Q1 2023) due to lack of political advertising in Oct–Nov; core organic revenue grew YoY on new partnerships, and gross margin was 35.6% vs 38.4% a year ago (mix shift to partner platforms) .
KPIs: O&O QAUs were 33,783 (down 9% QoQ on targeted distribution and WiFi-related downtime; up 26% YoY), and Partner Screens rose to ~43,000 (up ~153% YoY) .
Management highlighted ongoing cost discipline and a pivot to targeted distribution; they expect a seasonal trough in Jan–Mar but are optimistic about a 2H ramp; no quantitative guidance was issued .

What Went Well and What Went Wrong

What Went Well

Revenue inflected QoQ to $10.2M on “purely organic” core demand, reversing three ~+$5M quarters; Adjusted EBITDA loss improved 69% QoQ to $(1.5)M as network efficiency and lower OpEx flowed through .
Gross margin expanded QoQ to 35.6% from 27.5%, with management noting leverage at higher revenue levels and better rev-share terms on new partnerships .
Strong distribution partnerships: Partner Screens expanded to ~43,000 vs 17,000 a year ago; management sees better economics versus earlier partner deals .

Selected quotes:

“Quarter-over-quarter growth increased 79%… to $10.2 million in Q1 2024… [with] a significantly reduced quarterly Adjusted EBITDA loss… from $(4.8) million in Q4 2023 to $(1.5) million in Q1 2024.”
“We believe this targeted distribution plan will allow us to grow our active Loop Player numbers quarter on quarter…”
“We will continue to focus on tightening the bottom line to achieve our goal of becoming cashflow positive as soon as possible…”

What Went Wrong

YoY declines: revenue down 31% and gross margin down ~280 bps YoY on mix (higher partner platform share) and absence of political spend vs prior-year period .
Sequential O&O QAUs fell by 3,238 due to targeted pruning and September/October downtime tied to an OS update and outdated venue WiFi; revenue impact from removed units was described as “very minimal” .
Balance sheet constraints persist: cash was $3.81M at 12/31 and net debt $7.1M; stockholders’ equity remained negative at $(3.69)M .

Financial Results

Metric	Q1 2023	Q4 2023	Q1 2024
Revenue ($M)	$14.83	$5.69	$10.17
Gross Profit ($M)	$5.69	$1.57	$3.62
Gross Margin (%)	38.4%	27.5%	35.6%
Net Loss ($M)	$(5.26)	$(9.01)	$(5.29)
Diluted EPS ($)	$(0.09)	$(0.15)	$(0.09)
Adjusted EBITDA ($M, non-GAAP)	$(1.59)	$(4.85)	$(1.48)

KPIs and Balance Sheet

KPI / Balance	Q1 2023	Q4 2023	Q1 2024
O&O QAUs (units)	26,903	37,021	33,783
Partner Screens (units)	~17,000	~42,000	~43,000
Cash & Equivalents ($M)	—	$3.07	$3.81
Net Debt ($M)	—	$7.5	$7.1
Weighted Avg Shares (M)	56.38	60.61	66.79

Segment breakdown: Not disclosed (revenue mix commentary indicates partner platform carries lower gross margins but similar operating profitability; no numeric segment revenue provided) .

Non-GAAP note: Adjusted EBITDA excludes interest, taxes, D&A, stock-based comp, non-recurring items (incl. $0.26M in Q1), and other adjustments as reconciled in 8-K; management highlighted the non-recurring nature of the $257K expense (related to a capital raise that did not consummate) .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY/Q2–FY	None provided	None provided; mgmt cautious on Jan–Mar seasonality; optimistic about 2H ramp	—
Gross Margin	FY	None provided	None provided; opportunity to improve with revenue scale and renegotiated partner terms	—
OpEx/EBITDA	FY	None provided	Ongoing cost discipline; aim to reduce Adjusted EBITDA loss	—
Other (tax, OI&E, dividends)	—	N/A	No guidance disclosed	—

Management did not issue quantitative guidance; commentary emphasized seasonality, mix, and cost controls .

Earnings Call Themes & Trends

Topic	Q4 2023 (prior)	Q1 2024 (current)	Q2 2024 (subsequent)	Trend
Advertising environment and mix	Macro ad slowdown pressured revenue/margins; GM 27.5%	Organic rebound to $10.2M; no political ads; GM 35.6%	One major ad demand partner term changes materially impacted revenue; GM 10.4%	Volatile; improving QoQ in Q1 then pressured in Q2
Political advertising	Drove prior-year Q1 comp (14.8M)	Minimal in Q1; core organic YoY growth when excluding political	Starting to see political spend; heavier in 2H (conventions)	2H tailwind potential
Distribution/QAUs	FY 2023 footprint ~79k across O&O+partners	O&O QAUs -9% QoQ on targeted pruning and OS/WiFi issues; partners ~43k	O&O QAUs 32,658; partners ~50k	Mix shifts toward partner screens
Cost actions	SG&A cuts YoY; still investment-heavy in 1H FY23	Operating cost focus; Adjusted EBITDA loss down 69% QoQ	Formal cost-cutting program: layoffs, salary cuts, vendor rationalization; Loop Rewards eliminated	Accelerating efficiency initiatives
Product/monetization	Core ad + programmatic; early partner rev-share	Better rev-share on newer partner deals	Local ad sales tools and two-tier music offering; subscription expansion	Diversifying revenue streams
Technology/AI	—	Venue suitability for political via “part of the AI we use”	—	Early use cases to enhance targeting

Management Commentary

Growth inflection and profitability focus: “Quarter-over-quarter growth increased 79%… to $10.2 million… [and] a significantly reduced quarterly Adjusted EBITDA loss… from $(4.8) million… to $(1.5) million.”
Seasonality and outlook: “We have now entered the notoriously worst advertising quarter… [Jan–Mar]… but I am optimistic about the revenue ramp for the second half of 2024 and beyond.”
Distribution strategy: “Targeted distribution… focusing on designated advertising markets and… more desirable out-of-home locations… [to] provide a more robust distribution platform for our advertising partners over time.”
Margin path: “As we get to a certain level of revenue, we can leverage the cost of goods… [margin] can go north of what we just posted.”

Q&A Highlights

Loop Player attrition: Management pruned low-performing venues and avoided reinvestment where WiFi or usage issues limited ROI; expects net adds to resume with a “smarter” mix (minimal revenue impact from removed players) .
Political advertising: Minimal in Q1; early signs building; majority expected in 2H with conventions; excluding political, core business grew YoY .
Partner economics and margins: Newer partner deals have improved rev-share; partner mix still compresses gross margin rate vs O&O, but op margin similar and terms improving .
Nonrecurring items: ~$257K nonrecurring expense tied to a capital raise that did not consummate; not expected to recur .

Estimates Context

We attempted to retrieve S&P Global consensus for revenue/EPS/EBITDA and target price for Q1 2024 and adjacent periods, but data could not be retrieved at time of analysis due to provider limits. As a result, we cannot provide a vs-consensus comparison for Q1 2024. Consensus estimates via S&P Global were unavailable during retrieval.

Key Takeaways for Investors

Execution turnaround: A clean, organic Q1 revenue print ($10.17M) with QoQ gross margin expansion and a 69% QoQ improvement in Adjusted EBITDA signals better cost control and monetization at scale .
Mix matters: Partner platform growth supports distribution scale but carries lower gross margin rate; newer deals reportedly improve Loop’s take-rate, supporting incremental margin expansion at higher volumes .
Distribution quality over quantity: Targeted O&O footprint and pruning of low-ROI venues should improve advertiser density and yield over time, albeit with near-term QAU volatility .
2H catalysts: Political ad cycle, maturing local ad sales (Loop Ads Manager) and subscription initiatives (two-tier music product) are potential revenue drivers into the back half, contingent on ad market stability .
Balance sheet watch: Cash was $3.81M and net debt $7.1M at 12/31; negative equity persists—cost actions (and potentially strategic alternatives/financing) are important to monitor .
Stock drivers near term: Signs of political spend ramp, sustained gross margin ≥ mid-30s, continued Adjusted EBITDA loss reduction, partner economics improvement, and tangible progress in local/subscription monetization.

Appendix: Source Documents

Q1 2024 8-K (press release and financials)
Q1 2024 earnings call transcript (prepared remarks and Q&A)
Q4 2023 8-K (trend context)
Q2 2024 8-K (subsequent quarter for trends)
Executive changes and cost review (Mar 2024)

Loop Media, Inc. (LPTV)·Q1 2024 Earnings Summary