Loop Media Inc.’s second-quarter earnings and revenue disappointed Wall Street.
The Glendale-based company reported on May 11 a net loss of $9.8 million (-17 cents a share) for the quarter ending March 31, compared with a net loss of $5 million (-11 cents) in the same period of the previous year. Revenue increased by 11% from the second quarter of the prior year to $5.4 million.
The revenue increase was primarily driven by a significant increase of Loop Players being deployed into the market and the results of Loop’s so-called Partner Platform business, which was launched in May 2022, the company said.
Analysts on average expected earnings of -14 cents on revenue of $7.7 million, according to Thomson Financial Network.
Jon Niermann, the co-founder and chief executive of Loop Media, said that the company was being extra diligent to scrutinize costs, reduce spending and create efficiencies where it can to strengthen the bottom line.
“We’ve already pinpointed significant cost reductions by the end of Q3 that we believe will help achieve this goal while also building our margins,” Niermann said. “We believe this can happen without jeopardizing future growth while we work our way aggressively towards becoming cashflow positive.”
Loop Media’s video content reaches millions of viewers in digital out-of-home locations including bars and restaurants, office buildings, retail businesses, college campuses, hotels, airports; on free ad-supported TV platforms like Roku; and at local gas stations across the United States.