Loop Media Inc. beat Wall Street estimates on revenue and earnings in its fiscal first quarter.
The Glendale-based music and short-form video distributor reported on Tuesday a net loss of $5.3 million (-9 cents a share) for the quarter ending Dec. 31, compared with a net loss of $4.3 million (-10 cents) in the same period a year earlier. Revenue increased by 395% from the prior year to $14.8 million.
The single analyst following the company forecast earnings of -10 cents on revenue of $13.8 million, according to Thomson Financial Network.
Jon Niermann, chief executive of Loop Media, said the company had a solid start to its fiscal year as its various advertising and marketing initiatives resulted in nearly five times year-over-year revenue growth and continued material improvements to its bottom line.
“Our ability to scale distribution, lean into marketing and convert those dollars into meaningful growth of our Loop Player footprint is a testament to our execution, especially as we contended with a challenging macroeconomic environment in the second half of the quarter, which has carried into calendar 2023,” Niermann said in a statement.
Loop recently renewed and updated its licenses with all three major music companies, Niermann added,
“This multi-year agreement enables us to digitally distribute music videos and related materials to our out-of-home clients throughout the U.S., positioning us for continued growth in the years ahead,” he said in the statement.
Shares in Loop Media (LPTV) closed down 9 cents, or about 1.5 percent, to $6 on the New York Stock Exchange, on a day when the Dow Jones closed up 0.8 percent.