Loop Media Inc.’s stock price has increased over the last two months, even after it fell for a bit in mid-December due to poor fourth-quarter financial results.
A price drop of 38% from the closing price of $1.29 on Dec. 12, the day the Burbank short form video distributor reported its earnings after the market closed, to 80 cents the following day, was short lived.
The company’s stock went back up by 5% to 84 cents on Dec. 19, the day after Loop announced it had obtained additional cash availability of approximately $4 million. It has continued to go up since then.
Still, the stock price lost more than 80% from about a year ago.
The share price closed at $1.10 on Dec. 28.
On Dec. 12, the company reported a net loss of $9 million (-15 cents a share) for the quarter ending Sept. 30, compared to a net loss of $14.6 million, (-28 cents) in the same period of the previous year. Revenue decreased by 53% from the fourth quarter of the prior year to $5.7 million.
Loop attributed to the drop in revenue to a material slowdown in digital advertising spend due to the macroeconomic environment.
Losses in 2023
In fiscal 2023, Loop reported a net loss of $32 million (-49 cents a share), compared to a loss of $29.5 million (-61 cents) in the previous fiscal year. Revenue was $31.6 million, compared to $30.8 million in fiscal 2022, or an increase of 2.6%
Loop attributed the increase to the growth of demand partners, direct sales deals, partnerships and software improvement and efficiencies.
Jon Niermann, the chief executive of the company, said in a conference call with analysts on Dec. 12 that he believed that Loop is stronger coming out of the just completed fiscal year and looks to capitalize on what he believed to be an improved growth potential ahead of it.
“We see a better path ahead and recovery as we progress through Q1 in our new fiscal year and believe that FY ’23 represented a low point in our ad demand challenges,” Niermann said. “In fact, it…
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