Cineverse Reports First Quarter Fiscal Year 2025 Results
Cineverse Corp. (NASDAQ: CNVS) reported its Q1 FY 2025 results, highlighting total revenue of $9.1 million and a direct operating margin of 51%. The company saw a 17% decrease in SG&A expenses and a 73% increase in total monthly viewership across its channel portfolio. Despite a revenue decline, Cineverse experienced significant growth in its podcast business, with revenues up 143% year-over-year. The company's digital content library was valued at $39.8 million, substantially higher than its book value of $2.6 million. Cineverse is focusing on new sales initiatives for its Matchpoint technology, AI-related products, and omni-advertising programs, with expectations of revenue growth in the coming quarters.
Cineverse Corp. (NASDAQ: CNVS) ha riportato i risultati del primo trimestre dell'anno fiscale 2025, evidenziando ricavi totali di 9,1 milioni di dollari e un margine operativo diretto del 51%. L'azienda ha registrato una diminuzione del 17% delle spese SG&A e un aumento del 73% del numero totale di spettatori mensili nel suo portafoglio di canali. Nonostante un calo dei ricavi, Cineverse ha vissuto una significativa crescita nel suo business dei podcast, con ricavi in aumento del 143% rispetto all'anno precedente. La biblioteca di contenuti digitali dell'azienda è stata valutata 39,8 milioni di dollari, notevolmente superiore al suo valore contabile di 2,6 milioni di dollari. Cineverse si sta concentrando su nuove iniziative di vendita per la sua tecnologia Matchpoint, prodotti legati all'AI e programmi di pubblicità omni, con aspettative di crescita dei ricavi nei prossimi trimestri.
Cineverse Corp. (NASDAQ: CNVS) informó sobre sus resultados del primer trimestre del año fiscal 2025, destacando ingresos totales de 9,1 millones de dólares y un margen operativo directo del 51%. La compañía observó una disminución del 17% en los gastos SG&A y un aumento del 73% en la audiencia mensual total a través de su portafolio de canales. A pesar de la disminución de ingresos, Cineverse experimentó un crecimiento significativo en su negocio de podcasts, con ingresos que aumentaron un 143% interanual. La biblioteca de contenido digital de la compañía fue valorada en 39,8 millones de dólares, sustancialmente superior a su valor contable de 2,6 millones de dólares. Cineverse está enfocándose en nuevas iniciativas de ventas para su tecnología Matchpoint, productos relacionados con la IA y programas de publicidad omni, con expectativas de crecimiento en los ingresos en los próximos trimestres.
Cineverse Corp. (NASDAQ: CNVS)는 2025 회계연도 1분기 결과를 발표하며 총 수익 910만 달러와 직접 운영 마진 51%을 강조했습니다. 이 회사는 SG&A 비용이 17% 감소하고, 채널 포트폴리오 전반에 걸쳐 월간 총 시청자 수가 73% 증가했다고 보고했습니다. 수익 감소에도 불구하고, Cineverse는 팟캐스트 사업에서 연간 143% 증가한 수익을 기록하며 중요한 성장을 경험했습니다. 회사의 디지털 콘텐츠 라이브러리는 3980만 달러로 평가되었으며, 장부 가치인 260만 달러보다 상당히 높은 수치입니다. Cineverse는 Matchpoint 기술, AI 관련 제품 및 옴니광고 프로그램을 위한 새로운 판매 이니셔티브에 집중하고 있으며, 앞으로 분기에서 수익 성장을 기대하고 있습니다.
Cineverse Corp. (NASDAQ: CNVS) a annoncé ses résultats pour le premier trimestre de l'exercice 2025, mettant en lumière un revenu total de 9,1 millions de dollars et une marge opérationnelle directe de 51%. L'entreprise a constaté une diminution de 17% des dépenses SG&A et une augmentation de 73% du nombre total de téléspectateurs mensuels sur son portefeuille de chaînes. Malgré une baisse des revenus, Cineverse a connu une croissance significative dans son activité de podcasts, avec des revenus en hausse de 143% d'une année sur l'autre. La bibliothèque de contenu numérique de l'entreprise a été évaluée à 39,8 millions de dollars, considérablement plus élevée que sa valeur comptable de 2,6 millions de dollars. Cineverse se concentre sur de nouvelles initiatives commerciales pour sa technologie Matchpoint, des produits liés à l'IA et des programmes de publicité omni, avec des attentes de croissance des revenus dans les trimestres à venir.
Cineverse Corp. (NASDAQ: CNVS) berichtete über die Ergebnisse des ersten Quartals des Geschäftsjahres 2025 und hob Gesamterlöse von 9,1 Millionen US-Dollar und eine direkte Betriebsmarge von 51% hervor. Das Unternehmen verzeichnete einen Rückgang der SG&A-Ausgaben um 17% und einen Anstieg der monatlichen Gesamtzuschauerzahlen um 73% in seinem Kanalportfolio. Trotz eines Rückgangs der Einnahmen erlebte Cineverse ein signifikantes Wachstum in seinem Podcast-Geschäft, mit einem Anstieg der Einnahmen um 143 % im Jahresvergleich. Die digitale Inhaltsbibliothek des Unternehmens wurde mit 39,8 Millionen US-Dollar bewertet, was erheblich über dem Buchwert von 2,6 Millionen US-Dollar liegt. Cineverse konzentriert sich auf neue Verkaufsinitiativen für seine Matchpoint-Technologie, KI-bezogene Produkte und Omni-Werbeprogramme, mit Erwartungen an ein Umsatzwachstum in den kommenden Quartalen.
- Direct operating margin increased to 51% from 46% last year, exceeding the target of 45-50%
- SG&A expenses decreased by $1.3 million or 17%
- Total monthly viewership across channel portfolio increased 73% year-over-year
- Podcast revenue grew by 143% compared to last year
- Digital content library valued at $39.8 million, significantly higher than its $2.6 million book value
- Extended $7.5 million line-of-credit until September 2025, improving financial flexibility
- Repurchased approximately 184,000 shares through June 30, 2024
- Total revenue decreased to $9.1 million from $13.0 million in the previous year
- Streaming and Digital revenue reduced by $2.4 million
- Net loss attributable to common stockholders was $3.2 million, or $(0.20) per share
- Adjusted EBITDA remained negative at ($1.4) million, though improved by $0.1 million
Insights
Cineverse's Q1 FY2025 results show a mixed financial picture. While total revenue decreased to
The digital content library valuation of
Investors should monitor the company's ability to capitalize on its growing viewership (
Cineverse's technology initiatives show promise but are yet to significantly impact the bottom line. The company's proprietary Matchpoint technology and AI-powered content search tool cineSearch are key areas to watch. The first long-term Matchpoint SaaS deals, worth over
The partnerships with Gracenote, Vionlabs and Datatonic to enhance metadata, recommendations and genAI capabilities could differentiate Cineverse in the competitive streaming market. The company's exploration of AI training opportunities using its content library is forward-thinking, potentially opening new revenue streams.
However, these tech initiatives are still in early stages. Investors should look for concrete evidence of market traction and revenue generation from these technologies in upcoming quarters to validate the company's tech-driven strategy.
Cineverse's market positioning shows both strengths and challenges. The
The podcast business is a bright spot, with
However, the decline in Streaming and Digital revenue by
Overall, Cineverse is adapting to market trends, but needs to translate viewership growth into revenue to improve its market position.
Total Revenue of
Total Direct Operating Margin of
Selling, General, and Administrative Expenses decreased by
Q1 FY 2025 Highlights (all comparisons are to the prior year fiscal quarter ended June 30, 2023, or Q1 FY 2024):
For the fiscal quarter ended June 30, 2024, the Company's initiatives to reduce operating costs continued to have a positive impact on our financial results contributing to a decrease in SG&A expenses of
In addition, the Company began to execute on its previously approved share repurchase program and acquired approximately 184 thousand shares through June 30, 2024. The previously reported share repurchase program remains in place and will continue to be utilized as appropriate.
The Company's Digital content library of approximately 66,000 titles was valued as of March 31, 2024 at approximately
The Company looks ahead in the next few quarters to the impact of our new sales initiatives, particularly for our proprietary Matchpoint technology, AI related products and omni-advertising programs, including our direct sales efforts from our new advertising team, and also from the release of the next installment of our horror franchise, Terrifier 3, on October 11, 2024.
Total monthly viewership across our channel portfolio increased
- Total revenue of
versus$9.1 million , mainly reflecting a reduction of$13.0 million in Streaming and Digital revenue, attributable to a$2.4 million decline in the Company's digital distribution revenue mostly resulting from content release timing impacts, as well as a$1.9 million decrease versus fiscal 2024 non-recurring revenue from the Company's legacy digital cinema business.$1.2 million - These decreases were partially offset by a
, or$0.6 million 143% , increase in Podcast revenue. This success was driven by the growing popularity of the Company's Bloody Disgusting podcast content.
- These decreases were partially offset by a
- The Company's direct operating expenses decreased by
to$2.5 million from$4.5 million , at a direct operating margin of$7.0 million 51% versus46% last year and above our previously stated margin target of45% to50% . - SG&A expenses decreased
, or$1.3 million 17% , primarily driven by from reduced legal and consulting costs, as well as a decrease of$0.5 million in compensation related costs, due to the Company's continued offshoring program to Cineverse Services India.$0.4 million - Net loss attributable to common stockholders was
, or$3.2 million earnings per share, down from net loss of$(0.20) , or$3.6 million earnings per share.$(0.37) - Adjusted EBITDA improved by
to$0.1 million ( .$1.4) million - Financial condition overview:
- Cash and cash equivalents of
as of June 30, 2024.$4.0 million - The maturity date of the Company's
Line of Credit Facility has been extended to September 15, 2025.$7.5 million - Digital content library valued as of March 31, 2024 at approximately
in a third-party appraisal, including the pre-release estimated value of Terrifier 3, compared to a book value of$39.8 million as of June 30, 2024.$2.6 million
- The maturity date of the Company's
- Cash and cash equivalents of
Operational Developments During the Quarter
- Experienced an exceptional
73% growth in year-over-year increase in minutes watched. - Set release date for "Terrifier 3" – the highly anticipated follow up to runaway hit, "Terrifier 2" – for October 11, 2024. Announced Iconic Events as theatrical distribution partner.
- Announced public Beta of the Company's AI-Powered content search and discovery tool, cineSearch. Subsequently announced partnerships with Gracenote, Vionlabs and Datatonic to enhance metadata, recommendations and genAI conversational capabilities.
- Podcast network saw exponential growth - yielding a
49% revenue surge over the last 60 days. - Announced the capability to provide robust, cost-streaming workforce solution to Matchpoint customers through the Company's
India -based Cineverse Services India. - Expanded wildly successful Bob Ross Universe with episodes remastered in HD & 4K for the first time ever – along with exclusive new ambient viewing content "The Bob Ross Gallery Collection" series.
- Announced Titan Books as publisher for Terrifier 2 novelization – opening a new revenue stream to super-serve highly engaged fandom – available October 29, 2024.
- Announced launch of 9 Story Presents: Garfield and Friends FAST channel on Sling Freestream – bringing classic family IP to new generation with timing aligned to major motion picture release.
- Debuted Bloody Disgusting merchandise in exclusive branded Fan Shops in 1700 Walmart stores nationwide.
- Announced numerous channel launches on Xfinity, Xumo, Zone-ify and DIRECTV – driving additional distribution to unlock the potential for revenue growth.
- Announced a new distribution deal with
Australia -based Network 10, a division of Paramount Global, to bring 10 play's FAST channels.
Operational Developments Subsequent to Quarter-End
- The Company's new Matchpoint Sales team has signed its first long-term Matchpoint SaaS deals worth more than
in revenue annually and has developed a robust pipeline of more than 20 deals for future potential revenue opportunities.$250 thousand - Published Extensive Library of Video Content on Spotify.
- 'Dog Whisperer With Cesar Millan' FAST Channel Goes Live on Pluto TV.
Management Commentary
Chris McGurk, Cineverse Chairman and CEO, stated, "This was a transition quarter for the Company. Although we continue to enjoy the benefits of our cost streamlining initiatives and resultant higher operating margins, we did not yet begin to record the revenue upsides during the quarter from our new sales teams and new sales initiatives for our proprietary Matchpoint technology, AI-based products and omni-advertising programs, particularly direct ad sales. We continue to build a robust sales pipeline in all those areas and fully expect to begin to record revenue upsides over the next few quarters as we close multiple deals already in the sales queue. Viewership across our streaming channel portfolio increased by
"Notably, we extended our
Erick Opeka, President and CSO of Cineverse, stated, "While we faced challenging year-over-year revenue comparisons due to the timing of digital content releases and legacy Digital Cinema non-recurring items, we made substantial progress in building out our content, advertising, and Matchpoint sales units during the quarter. We expect to see significant traction from these initiatives beginning in the current quarter. We've added six fully operational sales heads and are already seeing considerable results from their efforts.
"Our licensing sales have increased substantially, and our sales team has gained significant early traction. This includes closing our first Matchpoint SaaS deal after quarter-end, as well as securing ad sales from major players like Disney, Universal, Neon, and Zocdoc during the quarter. Looking ahead, we anticipate being sold out of inventory on several verticals in the next quarter and expect significant acceleration in digital, licensing, and Matchpoint revenues from deals currently in negotiation. We're in the final stages of phase II development for our AI-based cineSearch product and expect a full consumer release within the next 60 days. We're also preparing the product for B2B licensing and are already in discussions with several Tier 1 OEMs."
Opeka continued, "Our streaming consumption metrics have shown exceptional growth, with a
"Lastly, we are pursuing other exciting new opportunities in AI. We're in early discussions with multiple parties to license parts of our extensive content library for AI training purposes. Additionally, we are in discussion to represent AI training rights for other content owners, which could potentially add hundreds of thousands of titles to our existing library of more than 66,000 titles for this initiative. These developments position us at the forefront of the rapidly evolving entertainment technology landscape."
Conference Call
Cineverse will host a conference call at 4:30 p.m. ET (Wednesday, August 14, 2024), during which management will discuss the results of the fiscal first quarter ended June 30, 2024. To participate in the conference call, please use the following dial-in numbers:
Access code: 417695
The conference call can also be accessed by webcast at the Investors section of the Company's website at https://investor.cineverse.com/events-and-presentations. Those who are unable to attend the live conference call may access the recording at the above webcast link, which will be made available shortly after the conclusion of the call.
About Cineverse
Cineverse's advanced, proprietary technology drives the distribution of over 70,000 premium films, series, and podcasts to more than 150 million unique viewers monthly. From providing a complete streaming solution to some of the world's most recognizable brands, to super-serving their own network of fan channels, Cineverse is powering the future of Entertainment. For more information, please visit www.cineverse.com. (NASDAQ: CNVS)
Safe Harbor Statement
Investors and readers are cautioned that certain statements contained in this document, as well as some statements in periodic press releases and some oral statements of Cineverse officials during presentations about Cineverse, along with Cineverse's filings with the Securities and Exchange Commission, including Cineverse's registration statements, quarterly reports on Form 10-Q and annual report on Form 10-K, are "forward-looking'' statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act''). Forward-looking statements include statements that are predictive in nature, which depend upon or refer to future events or conditions, which include words such as "expects," "anticipates,'' "intends,'' "plans,'' "could," "might," "believes,'' "seeks," "estimates'' or similar expressions. In addition, any statements concerning future financial performance (including future revenues, earnings, or growth rates), ongoing business strategies or prospects, and possible future actions, which may be provided by Cineverse's management, are also forward-looking statements as defined by the Act. Forward-looking statements are based on current expectations and projections about future events and are subject to various risks, uncertainties, and assumptions about Cineverse, its technology, economic and market factors, and the industries in which Cineverse does business, among other things. These statements are not guarantees of future performance, and Cineverse undertakes no specific obligation or intention to update these statements after the date of this release.
For additional information, please contact:
Julie Milstead
424-281-5411
investorrelations@cineverse.com
CINEVERSE CORP. | ||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
(In thousands) | ||||||||
As of | ||||||||
June 30, | March 31, | |||||||
(Unaudited) | ||||||||
ASSETS | ||||||||
Current Assets | ||||||||
Cash and cash equivalents | $ | 3,955 | $ | 5,167 | ||||
Accounts receivable, net | 9,262 | 8,667 | ||||||
Unbilled revenue | 4,596 | 6,439 | ||||||
Employee retention tax credit | 79 | 1,671 | ||||||
Content advances | 12,226 | 9,345 | ||||||
Other current assets | 1,413 | 1,432 | ||||||
Total Current Assets | 31,531 | 32,721 | ||||||
Property and equipment, net | 2,722 | 2,276 | ||||||
Intangible assets, net | 18,238 | 18,328 | ||||||
Goodwill | 6,799 | 6,799 | ||||||
Content advances, net of current portion | 1,655 | 2,551 | ||||||
Other long-term assets | 1,397 | 1,703 | ||||||
Total Assets | $ | 62,342 | $ | 64,378 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current Liabilities | ||||||||
Accounts payable and accrued expenses | $ | 20,247 | $ | 20,817 | ||||
Line of credit, including unamortized debt issuance costs of | 4,690 | 6,301 | ||||||
Current portion of earnout and deferred consideration on purchase of business | 3,719 | 3,294 | ||||||
Term Loan, including unamortized debt issuance costs of | 3,103 | — | ||||||
Operating lease liabilities | 338 | 401 | ||||||
Current portion of deferred revenue | 332 | 436 | ||||||
Total Current Liabilities | 32,429 | 31,249 | ||||||
Deferred consideration on purchase, net of current portion | — | 457 | ||||||
Operating lease liabilities, net of current portion | 418 | 462 | ||||||
Other long-term liabilities | 58 | 59 | ||||||
Total Liabilities | $ | 32,905 | $ | 32,228 | ||||
Stockholders' Equity | ||||||||
Preferred stock | $ | 3,559 | $ | 3,559 | ||||
Common stock | 194 | 194 | ||||||
Additional paid-in capital | 546,554 | 545,996 | ||||||
Treasury stock, at cost | (12,166) | (11,978) | ||||||
Accumulated deficit | (507,315) | (504,153) | ||||||
Accumulated other comprehensive loss | (290) | (345) | ||||||
Total stockholders' equity of Cineverse Corp. | 30,536 | 33,273 | ||||||
Deficit attributable to noncontrolling interest | (1,099) | (1,122) | ||||||
Total equity | 29,437 | 32,151 | ||||||
Total Liabilities and Equity | $ | 62,342 | $ | 64,378 |
CINEVERSE CORP. | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
(In thousands, except for per share data) | ||||||||
(Unaudited) | ||||||||
For the | ||||||||
2024 | 2023 | |||||||
Revenues | $ | 9,127 | $ | 12,980 | ||||
Operating expenses | ||||||||
Direct operating | 4,479 | 6,987 | ||||||
Selling, general and administrative | 6,563 | 7,888 | ||||||
Depreciation and amortization | 863 | 822 | ||||||
Total operating expenses | 11,905 | 15,697 | ||||||
Operating loss | (2,778) | (2,717) | ||||||
Interest expense | (431) | (295) | ||||||
Loss from investment in Metaverse, a related party | 3 | — | ||||||
Other income (expense), net | 163 | (504) | ||||||
Net loss before income taxes | (3,043) | (3,516) | ||||||
Income tax expense | (7) | (20) | ||||||
Net loss | (3,050) | (3,536) | ||||||
Net income attributable to noncontrolling interest | (23) | (14) | ||||||
Net loss attributable to controlling interests | (3,073) | (3,550) | ||||||
Preferred stock dividends | (89) | (88) | ||||||
Net loss attributable to common stockholders | $ | (3,162) | $ | (3,638) | ||||
Net loss per share attributable to common stockholders: | ||||||||
Basic | $ | (0.20) | $ | (0.37) | ||||
Diluted | $ | (0.20) | $ | (0.37) | ||||
Weighted average shares of common stock outstanding: | ||||||||
Basic | 15,702 | 9,879 | ||||||
Diluted | 15,702 | 9,879 |
Adjusted EBITDA
We define Adjusted EBITDA to be earnings before interest, taxes, depreciation and amortization, stock-based compensation expense, merger and acquisition costs, restructuring, transition and acquisitions expense, net, goodwill impairment and certain other items.
Adjusted EBITDA is not a measurement of financial performance under GAAP and may not be comparable to other similarly titled measures of other companies. We use Adjusted EBITDA as a financial metric to measure the financial performance of the business because management believes it provides additional information with respect to the performance of its fundamental business activities. For this reason, we believe Adjusted EBITDA will also be useful to others, including our stockholders, as a valuable financial metric.
We present Adjusted EBITDA because we believe that Adjusted EBITDA is a useful supplement to net income (loss) from continuing operations as an indicator of operating performance. We also believe that Adjusted EBITDA is a financial measure that is useful both to management and investors when evaluating our performance and comparing our performance with that of our competitors. We also use Adjusted EBITDA for planning purposes and to evaluate our financial performance because Adjusted EBITDA excludes certain incremental expenses or non-cash items, such as stock-based compensation charges, that we believe are not indicative of our ongoing operating performance.
We believe that Adjusted EBITDA is a performance measure and not a liquidity measure, and therefore a reconciliation between net income (loss) from operations and Adjusted EBITDA has been provided in the financial results. Adjusted EBITDA should not be considered as an alternative to net income (loss) from operations as an indicator of performance or as an alternative to cash flows from operating activities as an indicator of cash flows, in each case as determined in accordance with GAAP, or as a measure of liquidity. In addition, Adjusted EBITDA does not take into account changes in certain assets and liabilities as well as interest and income taxes that can affect cash flows. We do not intend the presentation of these non-GAAP measures to be considered in isolation or as a substitute for results prepared in accordance with GAAP. These non-GAAP measures should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP.
Following is the reconciliation of our consolidated net (loss) income to Adjusted EBITDA (in thousands):
For the | ||||||||
2024 | 2023 | |||||||
(Unaudited) | ||||||||
Net loss | $ | (3,050) | $ | (3,536) | ||||
Add Backs: | ||||||||
Income tax expense | 7 | 20 | ||||||
Depreciation and amortization | 863 | 822 | ||||||
Interest expense | 431 | 295 | ||||||
Stock-based compensation | 470 | 409 | ||||||
Loss from equity investment in Metaverse, a related party | 3 | — | ||||||
Other (income) expense, net | (163) | 36 | ||||||
Net income attributable to noncontrolling interest | (23) | (14) | ||||||
Transition-related costs | 27 | 468 | ||||||
Adjusted EBITDA | $ | (1,435) | $ | (1,500) |
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SOURCE Cineverse Corp.
FAQ
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