CAMPBELL, Calif. & NEW YORK--(BUSINESS WIRE)--LiveWorld, Inc. (OTC Markets: LVWD) today reported financial results for the fiscal year ending December 31, 2022.
2022 Financial and Business Highlights
- Total revenues of $11.1 million, up 11% year-over-year
- Healthcare revenues of $9.9 million, up 12% year-over-year
- Top four clients grew approximately 15% – 25%
- Net income from operations of $1.0 million, or 9% of revenues
- Cash increased to $3.8 million as of December 31st
- Closed four new clients at year’s end
Management Commentary
“The 2022 financial results mark the third consecutive year of double-digit revenue growth, improved net income, and positive cash flows from operations,” said David Houston, Chief Financial Officer of LiveWorld. “This highlights our demonstrated ability to grow organically while continuing to invest in our creative and moderation services, our SaaS platform, and our sales and marketing efforts. Each of our top four clients grew approximately 15% - 25%. This, combined with four new client wins at the end of the year, positions us well for 2023.
"As we move into 2023, we expect to see continued growth in revenue and profits from operations. Our strong client relationships and ongoing client acquisitions will drive revenue growth. This will result in continued profits and positive cash flow in 2023. Generally, we see some seasonality in the first quarter, which can have a small impact on revenue and cash flow. However, we expect any impact to be offset over the remainder of 2023.”
Financial Review for the Twelve Months Ended December 31, 2022
Total revenues were approximately $11.1 million for the twelve months, as compared to the approximately $10.1 million in total revenues reported for the same period in 2021. This was an increase of approximately $1.1 million, or 11%, when compared to the twelve months of 2021. Healthcare-related revenues increased from $8.8 million in 2021 to $9.9 million in 2022 for a 12% growth rate.
The company reported net income from operations of approximately $1.0 million, or 9%, of total revenues in 2022. This compares to net income from operations of approximately $796,000, or 8%, of total revenues reported for 2021. This is an increase of 28% year-over-year in net income.
The company finished the year with approximately $3.8 million in cash and cash equivalents, as compared to approximately $3.6 million at the end of 2021.
Detailed financial information may be downloaded at www.liveworld.com/ir (LiveWorld’s Investor Relations page) or at www.otcmarkets.com.
About LiveWorld
LiveWorld is a digital agency with deep social and technology expertise that helps companies spark emotional connections, build stronger customer relationships, and drive behavior change. We live at the intersection of bold creative rooted in strategy that inspires, moderation that activates human interactions, and technology that enriches and scales customer experiences.
With over 26 years of making connections, our integrated team leverages our social media DNA to deliver emotion-driven behavior change through digital campaigns with a human touch. LiveWorld clients include the number one brands in pharmaceuticals, healthcare, and financial-travel services. LiveWorld is headquartered in Campbell, California with an additional office in New York City. Learn more at www.liveworld.com and @LiveWorld.
“Safe Harbor" Statement Under the Private Securities Litigation Reform Act
This press release may contain forward-looking information concerning LiveWorld plans, objectives, future expectations, forecasts, and prospects. These statements may include those regarding LiveWorld’s current or future financial performance including, but not limited to, lists of clients; revenue and profit; use of cash, investments, relationships, and the actual or potential impact of stock option expense; and the results of its product development efforts. Actual results may differ materially from those expressed in the forward-looking statements made as a result of, among other things, final accounting adjustments and results; LiveWorld’s ability to attract new clients and preserve or expand its relationship with existing clients; LiveWorld’s ability to retain and attract high-quality employees, including its management staff; the ability to deliver new innovative products in a timely manner; changing accounting treatments; and other risks applicable to the Company. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, and the Company undertakes no obligation to update these forward-looking statements to reflect subsequent events or circumstances.
LIVEWORLD, INC. |
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UNAUDITED CONDENSED BALANCE SHEETS |
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(In thousands, except share data) |
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December 31, |
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December 31, |
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2022 |
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2021 |
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ASSETS |
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Current assets |
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Cash and cash equivalent |
$ |
3,801 |
|
$ |
3,551 |
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||
Accounts receivable, net |
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2,583 |
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1,773 |
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Prepaid expenses |
|
180 |
|
|
156 |
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||
Total current assets |
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6,564 |
|
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5,480 |
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Property and equipment, net |
|
43 |
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|
47 |
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Other assets |
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26 |
|
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25 |
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Total assets |
$ |
6,633 |
|
$ |
5,552 |
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LIABILITIES AND STOCKHOLDERS' EQUITY |
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Current liabilities |
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Accounts payable |
$ |
203 |
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$ |
231 |
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Accrued employee expenses |
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791 |
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1,076 |
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Other accrued liabilities |
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52 |
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14 |
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Deferred revenue |
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1,326 |
|
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1,169 |
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Total current liabilities |
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2,372 |
|
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2,490 |
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Total liabilities |
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2,372 |
|
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2,490 |
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Stockholders' equity |
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Common stock: $0.001 par value, 100,000,000 shares authorized, 45,633,442 issued and outstanding as of December 31, 2022 and December 31, 2021 respectively |
|
34 |
|
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34 |
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Additional paid-in capital |
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143,883 |
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143,701 |
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Accumulated deficit |
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(139,656 |
) |
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(140,673 |
) |
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Total stockholders' equity |
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4,261 |
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|
3,062 |
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Total liabilities and stockholders' equity |
$ |
6,633 |
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$ |
5,552 |
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LIVEWORLD, INC. |
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CONDENSED STATEMENT OF OPERATIONS |
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(In thousands, except per share data) |
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Twelve Months Ended December 31, |
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2022 |
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2021 |
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Total revenues |
$ |
11,146 |
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$ |
10,061 |
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Cost of revenues |
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5,341 |
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5,051 |
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Gross Margin |
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5,805 |
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5,010 |
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Operating Expense |
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Product development |
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958 |
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|
866 |
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Sales and marketing |
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1,356 |
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1,230 |
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General and administrative |
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2,345 |
|
|
2,109 |
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Total operating expense |
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4,659 |
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4,205 |
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Income from operations |
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1,146 |
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|
805 |
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Income before tax |
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1,146 |
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|
805 |
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Other Income |
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1 |
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17 |
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Provision for income taxes |
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130 |
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26 |
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||
Net income from operations |
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1,017 |
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|
796 |
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PPP loan forgiveness |
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------------ |
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1,026 |
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Net income |
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1,017 |
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|
1,822 |
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Earnings per share analysis from operations |
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Basic income per share |
$ |
0.02 |
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$ |
0.02 |
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Shares used in computing basic loss per share |
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45,633,442 |
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45,633,442 |
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Diluted net income (loss) per share |
$ |
0.02 |
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$ |
0.01 |
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Shares used in computing diluted income (loss) per share |
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62,522,559 |
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64,446,830 |
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Earnings per share analysis after PPP loan forgiveness |
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Basic income per share |
$ |
------------ |
$ |
0.04 |
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|||
Shares used in computing basic loss per share |
------------ |
|
45,633,442 |
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Diluted net income (loss) per share |
$ |
------------ |
$ |
0.03 |
|
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Shares used in computing diluted income (loss) per share |
------------ |
|
64,446,830 |
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Departmental allocation of stock-based compensation |
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Cost of revenues |
$ |
49 |
|
$ |
12 |
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||
Product development |
|
10 |
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5 |
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Sales and marketing |
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26 |
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|
6 |
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General and administrative |
|
97 |
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27 |
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Total stock-based compensation |
$ |
182 |
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$ |
50 |
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LIVEWORLD, INC. |
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CONDENSED STATEMENTS OF CASH FLOWS |
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(In thousands) |
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Twelve Months Ended December 31, |
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2022 |
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2021 |
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Cash flows from operating activities |
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Net income (loss) |
$ |
1,017 |
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$ |
1,822 |
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Adjustments to reconcile net income (loss) provided by (used in) operating activities: |
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Depreciation of long-lived assets |
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26 |
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20 |
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Stock-based compensation |
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182 |
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|
50 |
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Changes in operating assets and liabilities: |
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Accounts receivable |
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(809 |
) |
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(595 |
) |
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Other assets |
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(25 |
) |
|
(59 |
) |
||
Accounts payable |
|
(28 |
) |
|
92 |
|
||
Accrued liabilities |
|
(248 |
) |
|
342 |
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||
Deferred revenue |
|
157 |
|
|
272 |
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||
Net cash provided by (used in) operating activities |
|
272 |
|
|
1,944 |
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||
Cash flows from investing activities |
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Purchase of property and equipment |
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(22 |
) |
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(24 |
) |
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Net cash provided by (used in) investing activities |
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(22 |
) |
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(24 |
) |
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Cash flows from financing activities |
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Loan |
------------ |
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(921 |
) |
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Proceeds from exercise of stock options |
------------ |
----------- |
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Net cash provided by (used for) financing activities |
------------ |
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(921 |
) |
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Change in cash and cash equivalent |
|
250 |
|
|
999 |
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Cash and cash equivalents, beginning of period |
|
3,551 |
|
|
2,552 |
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||
Cash and cash equivalents, end of period |
$ |
3,801 |
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$ |
3,551 |
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||
Supplemental disclosure of non-cash financing and investing activities |
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Income tax paid |
$ |
130 |
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$ |
26 |
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