LiveOne stock falls after amended partnership with Tesla
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LiveOne (NASDAQ:LVO) shares fell over 20% on Tuesday after the digital media firm announced an amended partnership with Tesla (NASDAQ:TSLA).
As of Dec 1, Tesla (TSLA) will no longer subsidize LiveOne (LVO) products to some of its customers, however, LiveOne will offer all Tesla customers discounted LiveOne music packages.
Tesla will replace streaming button with LiveOne’s and will continue to pay LiveOne monthly for grandfathered users in perpetuity.
Taking a conservative approach, LiveOne (LVO) adjusted its guidance for FY2025, expecting revenue of $120M – $135M and $8-15M in adjusted EBITDA.
Robert Ellin, CEO of LiveOne, said, “We’ll drive growth, unlock new revenue streams, own our data, and increase ARPU (average revenue per user). To be conservative, due to the timing of our conversion rate, we are adjusting FY2025 revenue guidance to $120M – $135M and $8M-15M adjusted EBITDA.”