Loop Media Provides Q3 Guidance Below Street Estimates On Macro Headwinds

Loop Media Inc (NYSE LPTV) today provided Q3 FY23 guidance. The company expects Q3 revenue of $5.4 million-$5.6 million (versus the consensus estimate of $8.3 million) and an operating loss of $(7.6) million-$(7.9) million.
The company projects a planned reduction in underlying SG&A expenses (which excludes stock-based compensation and amortization and depreciation) by around 20% vs. the quarter ending March 31, 2023, which is expected to improve margins.
LPTV expects a gross profit margin of around 30%-33% for the quarter.
The company projects continued industry and macro headwinds in digital advertising spending in the quarter on potential recession.
Last month, the company reported Q2 revenues of $5.4 million which missed the consensus of $7.7 million and the EPS loss of $(0.17) was worse than the consensus of $(0.14).
As of March 31, 2023, cash and cash equivalents stood at $4.7 million.
Price Action: LPTV shares are trading lower by 4.01% at $3.35 premarket on the last check Friday.