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Loop Media, Inc. (LPTV)·Q4 2024 Earnings Summary

Executive Summary

  • Fiscal Q4 2024 revenue declined 35% year over year to $3.73M, while gross margin ticked up to 27.6%; net loss narrowed to $(6.19)M and diluted EPS improved to $(0.07) from $(0.15) in Q4 2023 .
  • Cost actions reduced SG&A materially; Q4 SG&A was $4.54M vs $7.42M a year ago, and adjusted EBITDA loss improved to $(2.79)M from $(4.85)M in Q4 2023, reflecting operating efficiency initiatives despite revenue pressure .
  • Management emphasized near-term technology upgrades to the Loop Player to improve ad flow and monetization, and a focus on disciplined cost management; post year-end, the company raised $5M and is pursuing a more favorable ABL facility .
  • KPIs showed contraction on the O&O platform (QAUs down 25% YoY) and modest partner screens growth (+17% YoY); management is pivoting distribution to higher-yield venues and internal execution, a narrative likely to drive near-term sentiment shifts .

What Went Well and What Went Wrong

What Went Well

  • Adjusted EBITDA and net loss improved despite lower revenue, driven by SG&A reductions and cost optimization: “even with approximately 30% less revenue year-over-year, we achieved a 29% improvement in our adjusted EBITDA” (Interim CFO/CEO commentary) .
  • Gross margin held/increased slightly in Q4 to 27.6% vs 27.5% YoY, reflecting revenue mix and licensing cost work; SG&A down 39% YoY in Q4 .
  • Strategic refocus: management is rolling out software upgrades to increase ad flow/productivity and shifting distribution efforts internally to lower cost and improve efficiency: “These important and exciting software upgrades are well underway… Our goal is to increase the productivity of our proprietary Loop Player” .

What Went Wrong

  • Top-line pressure: Q4 revenue down 35% YoY to $3.73M amid a “material slowdown in digital advertising spend”; FY revenue down ~30% to $22.25M, citing lack of political ads and ad demand partner changes .
  • O&O platform KPI contraction: QAUs fell 25% YoY to 27,811 in Q4; sequential declines through FY 2024 as distribution growth slowed while management pivoted to targeted venues .
  • Liquidity tightness and leverage: cash fell to $0.82M at year-end from $3.07M; net debt rose slightly to $7.8M; legal dispute with senior lender (GemCap) necessitated emergency TRO filing in November .

Financial Results

Q4 Year-over-Year Comparison

MetricQ4 2023Q4 2024
Revenue ($USD)$5.69M $3.73M
Gross Profit ($USD)$1.57M $1.03M
Gross Margin (%)27.5% 27.6%
Net Loss ($USD)$(9.01)M $(6.19)M
Diluted EPS ($USD)$(0.15) $(0.07)
Adjusted EBITDA ($USD)$(4.85)M $(2.79)M

Sequential Quarterly Trends (oldest → newest)

MetricQ2 2024Q3 2024Q4 2024
Revenue ($USD)$4.00M $4.35M $3.73M
Gross Profit ($USD)$0.42M $0.91M $1.03M
Gross Margin (%)10.4% 20.9% 27.6%
Net Loss ($USD)$(7.57)M $(5.45)M $(6.19)M
Diluted EPS ($USD)$(0.11) $(0.07) $(0.07)
Adjusted EBITDA ($USD)$(4.55)M $(2.25)M $(2.79)M

FY Summary

MetricFY 2023FY 2024
Revenue ($USD)$31.64M $22.25M
Gross Profit ($USD)$10.66M $5.98M
Gross Margin (%)33.7% 26.9%
Net Loss ($USD)$(31.96)M $(24.50)M
Diluted EPS ($USD)$(0.56) $(0.33)
Adjusted EBITDA ($USD)$(15.67)M $(11.06)M

KPIs (Distribution footprint; oldest → newest)

KPIQ1 2024Q2 2024Q3 2024Q4 2024
QAUs (O&O Platform)33,783 32,658 30,486 27,811
Partner Screens~43,000 ~50,000 ~51,000 ~49,000

Segment Breakdown

  • The company did not disclose revenue by segment or geography in Q4; revenue is primarily programmatic/direct advertising and subscriptions as described, but no quantitative segment tables were provided .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueN/ANot disclosedNot disclosedMaintained (no guidance provided)
Gross MarginN/ANot disclosedNot disclosedMaintained (no guidance provided)
SG&A/OpExN/ANot disclosedOngoing cost reductions emphasized qualitativelyQualitative emphasis only
Financing/ABLNear-termNot applicableRaised $5M post year-end; pursuing more favorable ABL facilityNew disclosure (post year-end)

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2 2024)Previous Mentions (Q3 2024)Current Period (Q4 2024)Trend
Cost-cutting/SG&ALeadership changes, layoffs, salary cuts, vendor reductions; eliminate Loop Rewards; target $750K annual vendor savings SG&A down 35% YoY; continued cost actions SG&A down 39% YoY in Q4; focus on disciplined cost management Sustained cost discipline; measurable savings
Monetization/Ad demandAd partner term changes hurt Q2 revenue Challenging ad market persisted “Material slowdown in digital ad spend”; margin held via mix/licensing Ad market headwinds ongoing
Distribution strategyPivot to targeted markets/venues; internal execution increases O&O QAUs down; partner screens up O&O QAUs -25% YoY; internal shift to reduce distribution costs Transition to quality over quantity
Product/Tech upgrades—Announced live channels and subscription tiers Rolling out Loop Player upgrades to improve ad flow/productivity Execution phase of tech roadmap
Subscription offeringsTwo-tier music video service planned Non-music subscription with live channels (e.g., NFL) Subscription not updated with quantitative targets Building alternative revenue streams
Regulatory/legal—NYSE American delisting notices TRO vs GemCap to prevent foreclosure actions Elevated legal/financing risks
Financing/LiquidityCash $2.2M; net debt $6.0M Cash $1.5M; net debt $6.2M Cash $0.82M; net debt $7.8M; raised $5M post year-end; pursuing ABL Tight liquidity; seeking improved facilities

Management Commentary

  • “We undertook serious measures to try to make Loop more competitive and create efficiencies… reducing third-party vendor costs, restructuring and eliminating unprofitable contracts… and reducing our workforce… we are starting to move toward a stronger bottom line” — Interim CEO Justis Kao .
  • “Reducing the rate of growth in distribution… allowed us to review and address upgrades to our technology… to improve the flow of advertisements… These… upgrades are well underway… Our goal is to increase the productivity of our proprietary Loop Player” — Interim CEO Justis Kao .
  • “While our fiscal Q4 revenues declined… our gross margin rate actually improved… reflecting… cost optimization… we have reduced our cash burn from operations… subsequent to year-end, we raised an additional $5M… and are actively working on securing a more favorable ABL facility” — Interim CFO Ari Olgun .

Q&A Highlights

  • The provided transcript captured prepared remarks but did not include a Q&A section; management clarified cost control priorities, technology upgrades, and post year-end financing steps within prepared remarks .

Estimates Context

  • Wall Street consensus estimates (EPS, revenue) were not disclosed in company materials, and comparable S&P Global consensus could not be retrieved at time of access; as such, estimate comparisons are unavailable for this recap .

Key Takeaways for Investors

  • Operating discipline is working: Q4 adjusted EBITDA loss improved to $(2.79)M and gross margin held despite revenue declines; continued SG&A actions provide line of sight to further loss reduction .
  • Ad market and partner dynamics remain the key headwinds; management’s Loop Player upgrades aim to lift ad fill and pricing, a potential lever for FY2025 margins and revenue stabilization .
  • Distribution strategy is shifting to quality venues and internal execution, which may compress O&O units near-term but improve monetization per screen over time .
  • Liquidity is tight (year-end cash $0.82M, net debt $7.8M), but post year-end $5M raise and pursuit of an improved ABL facility mitigate near-term funding risk; monitor legal proceedings with GemCap and execution of financing plans closely .
  • KPI trajectory: O&O QAUs down each quarter in FY2024, partner screens up YoY; watch Q1–Q2 FY2025 for signs of stabilization as tech upgrades roll out .
  • No formal guidance provided; expect near-term narrative to hinge on ad demand recovery, technology upgrade impact, and cost discipline sustainability .
  • Tactical angle: Stock catalysts include successful ABL execution, resolution of lender dispute, proof points that tech upgrades lift ad monetization, and stability/recovery in programmatic ad spend .