Leading Social Media Management & Moderation Companysees Revenue Growth from Existing and New Clients on Facebook, Twitter and across Social Media Channels
LiveWorld, Inc. (OTC Pink Sheets:LVWD.PK), today announced the financial results for first quarter ended March 31, 2012. Total revenues were $2.6 million for the first quarter of 2012 as compared to the $1.7 million in total revenues reported for the first quarter of 2011.
The Company reported net income for the first quarter of 2012 of $272,000, or 11% of total revenues. This result was an improvement of $510,000 when compared to the net loss of $238,000, or 14% of total revenues, reported for the first quarter of 2011.
Adjusted EBITDA for the first quarter of 2012 was $305,000, which was a significant improvement from the $169,000 loss for the first quarter of 2011. LiveWorld defines Adjusted EBITDA as net income or loss with an add-back for depreciation and amortization, non-cash stock-based compensation expense, interest income net, and income taxes. Adjusted EBITDA is not a term defined by GAAP and as a result LiveWorld's measure of Adjusted EBITDA might not be comparable to similarly titled measures used by other companies.
The company ended the quarter with $895,000 in cash and cash equivalents. The Company reported a positive working capital balance of approximately $1.3 million for the first quarter of 2012 as compared to the $1 million it had at the end of the fourth quarter of 2011. Additionally, the Company had approximately $8.3 million in bookings at the end of the first quarter 2012, as compared to the $4.1 million it had at the end of the first quarter of 2011.
"We have been focused on developing and delivering world class technology and services which enables our clients to scale their social media programs," said David Houston, Chief Financial Officer of LiveWorld. "Overall we are pleased with our execution and the strength of our business which resulted in the 56% revenue growth while maintaining our profitability."
Detailed quarterly financial information may be downloaded at www.liveworld.com (financials page) or at www.otcmarkets.com
LiveWorld Solutions
LiveWorld provides a combination of technology and human services to scale social media programs for large brands through moderation, insight and community programming. LiveWorld clients use these solutions for marketing, support and insight.
- Content Review System platform: Directly integrated with the Facebook Wall, other Facebook native applications, custom applications built for Facebook as well as other social networks and community platforms such as Jive.
- Moderation: To protect the brand (reviewing up to 1,000 posts/hr./moderator and integration of 1 or thousands of Facebook pages into a common, consistent workflow, and coverage from a few hours/day to 24×7 to thousands of hours/day).
- Actionable Insight: Including tagging of all posts to Facebook, and analysis reports based on LiveWorld's culture-tone-engagement framework. Enables brands to know what their customers actually think and what to do about it.
- Community Programming: To engage and support customers, including social media strategy with a focus on community cultural models, community programming plans, day to day community engagement and social media crisis management.
- Ask & Answer: Customer support application integrated across Facebook and a brand's central community site.
- Global: Solutions available in up to 70 country-language combinations.
About LiveWorld
LiveWorld is a leading social media management and moderation company. We scale social media programs for global brands with a combination of technology and human services for moderation, insight and community programming. Our Fortune 500 clients, including the number one retail, CPG, pharmaceutical and financial services companies use these services for marketing, support, and insight. With 28 years of unmatched experience in online community and social media and having delivered over 1.7 million moderation hours, LiveWorld provides a unique Tech-Powered Human Touch model to ensure quality, scale, and rich user dialogue and relationship experiences. For more information, go to www.liveworld.com (OTC Pink Sheets: LVWD.PK). LiveWorld is headquartered in California, with offices in San Jose, CA and New York City.
"Safe Harbor" Statement Under The Private Securities Litigation Reform Act:
This press release may contain forward-looking information concerning LiveWorld's 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. The balance sheet, operating results, and statements of cash flows for the periods ended December 31, 2011, March 31, 2011, and March 31, 2012 where neither audited nor reviewed by an independent accounting firm and are subject to change upon such a review or audit being completed. 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.
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| LIVEWORLD, INC. | ||||||||
| UNAUDITED CONDENSED BALANCE SHEETS | ||||||||
(In thousands, except share data) | ||||||||
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| March 31, | December 31, | |||||||
| 2012 | 2011 | |||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash and cash equivalent | $ | 895 | $ | 1,323 | ||||
| Accounts receivable, net | 3,917 | 857 | ||||||
| Prepaid expenses | Â | 94 | Â | Â | 135 | Â | ||
| Total current assets | 4,906 | 2,315 | ||||||
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| Property and equipment, net | 174 | 132 | ||||||
| Other assets | Â | 17 | Â | Â | 17 | Â | ||
| Total assets | $ | 5,097 | Â | $ | 2,464 | Â | ||
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| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 222 | $ | 12 | ||||
| Accrued employee expenses | 477 | 348 | ||||||
| Other accrued liabilities | 5 | 10 | ||||||
| Current portion of note payable | 8 | 15 | ||||||
| Deferred revenue | Â | 2,905 | Â | Â | 889 | Â | ||
| Total current liabilities | 3,617 | 1,274 | ||||||
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| Total liabilities | 3,617 | 1,274 | ||||||
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| Stockholders' equity | ||||||||
| Common stock: $0.001 par value, 100,000,000 shares authorized 33,157,634 issued and outstanding as of December 31, 2011 and March 31, 2012 respectively | 33 | 33 | ||||||
| Additional paid-in capital | 141,113 | 141,094 | ||||||
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| Accumulated deficit | Â | (139,666 | ) | Â | (139,938 | ) | ||
| Total stockholders' equity | Â | 1,480 | Â | Â | 1,190 | Â | ||
| Total liabilities and stockholders' equity | $ | 5,097 | Â | $ | 2,464 | Â | ||
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| LIVEWORLD, INC. | ||||||||
| UNAUDITED CONDENSED STATEMENT OF OPERATIONS | ||||||||
(In thousands, except per share data) | ||||||||
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| Three Months March 31, | ||||||||
| 2012 | 2011 | |||||||
Total revenues | $ | 2,640 | $ | 1,697 | ||||
| Cost of revenues | Â | 826 | Â | Â | 650 | Â | ||
| Gross Margin | 1,814 | 1,047 | ||||||
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Operating expense | ||||||||
| Product development | 389 | 354 | ||||||
| Sales and marketing | 633 | 524 | ||||||
| General and administrative | 506 | 364 | ||||||
| Stock based compensation | Â | 18 | Â | Â | 31 | Â | ||
| Total operating expense | Â | 1,545 | Â | Â | 1,273 | Â | ||
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Income /(loss) from operations | 268 | (226 | ) | |||||
| Interest Income (expense), net | Â | 10 | Â | Â | (2 | ) | ||
| Other income | ----- | 1 | ||||||
| Income / (loss) before tax | 278 | (227 | ) | |||||
| Provision for income taxes | Â | (6 | ) | Â | (5 | ) | ||
| Equity in net loss of unconsolidated affiliate | Â | ----- | Â | Â | (7 | ) | ||
Net income/(loss) | Â | 272 | Â | Â | (238 | ) | ||
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| Basic income/(loss) per share | $ | 0.01 | Â | $ | (0.01 | ) | ||
| Shares used in computing basic net income/(loss) per share | 33,157,634 | 33,151,981 | ||||||
| Diluted net income (loss) per share | $ | 0.01 | Â | $ | (0.01 | ) | ||
| Shares used in computing diluted income (loss) per share | 36,408,053 | 33,151,981 | ||||||
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| Departmental allocation of stock-based compensation: | ||||||||
| Product development | $ | 9 | $ | 16 | ||||
| Sales and marketing | 6 | 10 | ||||||
| General and administrative | Â | 3 | Â | Â | 5 | Â | ||
| Total stock-based compensation | $ | 18 | Â | $ | 31 | Â | ||
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| LIVEWORLD, INC. | ||||||||
| UNAUDITED CONDENSED STATEMENTS OF CASH FLOWS | ||||||||
(In thousands) | ||||||||
| Â | Three Months Ended | |||||||
| March 31, | ||||||||
| 2012 | Â | 2011 | ||||||
Cash flows from operating activities: | ||||||||
| Net income/(loss) | $ | 272 | $ | (238 | ) | |||
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| Adjustments to reconcile net income (loss) provided by (used in) operating activities: | ||||||||
| Depreciation of long-lived assets | 19 | 31 | ||||||
| Stock-based compensation | 18 | 31 | ||||||
| Equity in net loss of unconsolidated affiliate | ---- | 7 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | (3,060 | ) | (108 | ) | ||||
| Other assets | 41 | 6 | ||||||
| Accounts payable | 210 | 87 | ||||||
| Accrued liabilities | 124 | 32 | ||||||
| Deferred revenue | Â | 2,015 | Â | Â | (14 | ) | ||
| Net cash provided by (used in) operating activities | Â | (361 | ) | Â | (166 | ) | ||
Cash flows from investing activities: | ||||||||
| Purchase of property and equipment | Â | (60 | ) | Â | (2 | ) | ||
| Net cash provided by (used in) investing activities | Â | (60 | ) | Â | (2 | ) | ||
| Cash flows from financing activities: | ||||||||
| Capital lease financing | ---- | (15 | ) | |||||
| Note payable financing | Â | (7 | ) | Â | (13 | ) | ||
| Net cash provided by (used for) financing activities | (7 | ) | (28 | ) | ||||
| Change in cash and cash equivalent | (428 | ) | (197 | ) | ||||
| Cash and cash equivalents, beginning of period | Â | 1,323 | Â | Â | 750 | Â | ||
| Cash and cash equivalents, end of period | $ | 895 | Â | $ | 553 | Â | ||
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Contacts:
IR Contact:
LiveWorld
David Houston, 1-408-615-8496
dhouston@liveworld.com
