CuriosityStream Announces First Quarter 2021 Financial Results

Rhea-AI Summary

CuriosityStream (NASDAQ: CURI) reported a robust start to 2021, achieving $9.9 million in revenue, up from $7.5 million a year earlier. The company experienced significant growth with 16 million paying subscribers, marking a 28% increase year-over-year. On the downside, the net loss increased to $(18.8) million compared to $(11.8) million in Q1 2020. CuriosityStream announced the acquisition of One Day University, which enhances its content offerings. For 2021, the company expects revenue of at least $71 million, indicating 80% growth.

Positive

• Revenue increased to $9.9 million, a 32% year-over-year growth.
• Total paying subscribers reached approximately 16 million, up 28% year-over-year.
• Acquisition of One Day University enhances content offerings.
• Cash flow from financing activities increased to $149 million.

Negative

• Net loss widened to $(18.8) million from $(11.8) million year-over-year.
• Gross margin decreased to 58% from 64% in Q1 2020.
• EBITDA loss increased to $(15.1) million compared to $(12.0) million in Q1 2020.

CuriosityStream Inc. (NASDAQ: CURI), a global factual entertainment company, today announced its financial results for the first quarter ended March 31, 2021.

“The first quarter of 2021 kicks off a strong start to the year,” said Clint Stinchcomb, President & CEO. “We’ve never been in a better position at the beginning of the year, with $178 million in cash and investments, 80% growth in direct subscribers and 90% visibility into 2021 revenue. Today, we’re expanding our factual content proposition and business opportunities with the acquisition of One Day University, an engaging, inspiring and entertaining service that provides consumers access to hundreds of talks and lectures from the best professors in the United States.”

First Quarter 2021 Financial Results

• Revenue of $9.9 million, up from $7.5 million in the first quarter of 2020;
• Total paying subscribers approximately 16 million, up 28% year-over-year;
• Gross margin of 58% compared to 64% in the first quarter of 2020;
• Net loss of $(18.8) million compared to net loss of $(11.8) million in the first quarter of 2020;
• EBITDA of $(15.1) million compared to EBITDA of $(12.0) million in the first quarter of 2020.

First Quarter 2021 Business Highlights

• Announced the acquisition of One Day University, which expands our factual content proposition and provides us with proprietary, highly differentiated and complementary SVOD programming for our Direct services;
• Premiered ANCIENT YELLOWSTONE, NATURE THROUGH HER EYES, ANCIENT ENGINEERING, LEGENDS OF SPEED and BREAKTHROUGH: PERSEVERANCE ROVER COUNTDOWN TO IMPACT;
• Grew subscribers while maintaining low single-digit churn;
• Cash flow from financing activities increased to $149 million, including approximately $94 million from our follow-on equity offering and $55 million from the exercise of warrants.

Financial Outlook

For the full year 2021, CuriosityStream continues to expect the following:

• Revenue of at least $71 million, or 80% year-over-year growth

Conference Call Information

CuriosityStream will host a Q&A conference call today to discuss the Company's Q1 2021 results at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time). A live audio webcast of the call will be available on the CuriosityStream Investor Relations website at https://investors.curiositystream.com. Participants may also dial-in, toll free at (833) 979-2849 or International at (236) 714-2925 and reference conference ID# 4361649. An audio replay of the conference call will be available for two weeks following the call and available on the CuriosityStream Investor Relations website at https://investors.curiositystream.com.

Forward-Looking Statements

Certain statements in this press release may be considered “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 including, but not limited to, CuriosityStream’s expectations or predictions of future financial or business performance or conditions and the information under the heading “Financial Outlook” in this press release. Forward-looking statements are inherently subject to risks, uncertainties and assumptions. Generally, statements that are not historical facts, including statements concerning possible or assumed future actions, business strategies, events or results of operations, are forward-looking statements. These statements may be preceded by, followed by or include the words “believes,” “estimates,” “expects,” “projects,” “forecasts,” “may,” “will,” “should,” “seeks,” “plans,” “scheduled,” “anticipates,” “predicts” or “intends” or similar expressions. Such forward-looking statements involve risks and uncertainties that may cause actual events, results or performance to differ materially from those indicated by such statements. Certain of these risks are identified and discussed under “Risk Factors” in CuriosityStream’s Annual Report on Form 10-K for the year ended December 31, 2020, filed with the Securities and Exchange Commission (the “SEC”) on March 31, 2021, as amended by the amended Annual Report on Form 10-K/A, filed with the SEC on May 7, 2021, and in CuriosityStream’s other SEC filings. These risk factors will be important to consider in determining future results and should be reviewed in their entirety. Forward-looking statements are based on the current belief of the management of CuriosityStream, based on currently available information, as to the outcome and timing of future events, and involve factors, risks, and uncertainties that may cause actual results in future periods to differ materially from such statements. However, there can be no assurance that the events, results or trends identified in these forward-looking statements will occur or be achieved. Forward-looking statements speak only as of the date they are made, and CuriosityStream is not under any obligation, and expressly disclaims any obligation to update, alter or otherwise revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law. Readers should carefully review the statements set forth in the reports that CuriosityStream has filed or will file from time to time with the SEC.

In addition to factors previously disclosed in CuriosityStream’s reports filed with the SEC and those identified elsewhere in this communication, the following factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance: (i) risks related to CuriosityStream’s limited operating history; (ii) the effects of pending and future legislation; (iii) risks of the internet, online commerce and media industry; (iv) the highly competitive nature of the internet, online commerce and media industry and CuriosityStream’s ability to compete therein; (v) litigation, complaints, and/or adverse publicity; (vi) the ability to meet Nasdaq’s listing standards and (vii) privacy and data protection laws, privacy or data breaches, or the loss of data.

Non-GAAP Financial Measures

To supplement our unaudited condensed consolidated statement of operations, which is prepared in accordance with GAAP, we present EBITDA in this press release. Our use of non-GAAP financial measures has limitations as an analytical tool, and these measures should not be considered in isolation or as a substitute for analysis of financial results as reported under GAAP.

We use this non-GAAP financial measure in conjunction with financial measures prepared in accordance with GAAP for planning purposes, including in the preparation of our annual operating budget, as a measure of our core operating results and the effectiveness of our business strategy, and in evaluating our financial performance. This measure provides consistency and comparability with past financial performance, facilitates period-to-period comparisons of core operating results, and also facilitates comparisons with other peer companies, many of which use similar non-GAAP financial measures to supplement their GAAP results. In addition, EBITDA is widely used by investors and securities analysts to measure a company’s operating performance. We exclude the following items from one or more of our non-GAAP financial measures: other income (expense), income taxes, depreciation and amortization, and loss on change in fair value on warrants.

Investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures as an analytical tool. In particular, (1) although depreciation and amortization expense are non-cash charges, the assets subject to depreciation and amortization may have to be replaced in the future, and EBITDA does not reflect cash capital expenditure requirements for such replacements or for new capital expenditure requirements, and (2) EBITDA does not reflect: (a) changes in, or cash requirements for, our working capital needs; or (b) tax payments that may represent a reduction in cash available to us. The non-GAAP measure we use may be different from non-GAAP financial measures used by other companies, limiting their usefulness for comparison purposes. We compensate for these limitations by providing specific information regarding the GAAP items excluded from these non-GAAP financial measures. A reconciliation of these non-GAAP measures has been provided in the financial statement tables included in this press release and investors are encouraged to review the reconciliation.

About CuriosityStream

Launched by media visionary John Hendricks, CuriosityStream is one of the world’s leading global factual streaming services and media companies. Our documentary series and features cover every topic from space exploration to adventure to the secret life of pets, empowering viewers of all ages to fuel their passions and explore new ones. With thousands of titles, many in Ultra HD 4K, including exclusive originals, CuriosityStream features stunning visuals and unrivaled storytelling to demystify science, nature, history, technology, society, and lifestyle. CuriosityStream programming is available worldwide to watch on TV, desktop, mobile and tablets. Find us on Roku, Apple TV Channels and Apple TV, Xbox One, Amazon Fire TV, Google Chromecast, iOS and Android, as well as Amazon Prime Video Channels, YouTube TV, Sling TV, DISH, Comcast Xfinity on Demand, Cox Communications, Altice USA, Suddenlink, T- Mobile, Frndly TV, Vidgo, Sony, LG, Samsung and VIZIO smart TVs, Liberty Global, Com Hem, Tata Sky, MultiChoice, StarHub TV, Totalplay, Millicom, Okko, Gazprom and other global distribution partners and platforms. For more information, visit CuriosityStream.com.

CuriosityStream Inc.
Consolidated Balance Sheets
(in thousands, except par value)
		March 31,				December 31,
		2021				2020
		(unaudited)
Assets
Current assets
Cash and cash equivalents		$	11,839			$	11,203
Restricted cash			6,181				6,181
Short-term investments			84,679				22,171
Accounts receivable			6,951				7,222
Other current assets			5,199				4,467
Total current assets			114,849				51,244
Investments			75,351				2,825
Property and equipment, net			1,259				1,346
Content assets, net			39,220				32,926
Other assets			267				254
Total assets		$	230,946			$	88,595
Liabilities and stockholders' equity (deficit)
Current liabilities
Current content liabilities		$	3,504			$	2,116
Accounts payable			6,056				3,577
Accrued expenses and other liabilities			2,335				3,313
Deferred revenue			16,848				12,678
Total current liabilities			28,743				21,684
Warrant liability			24,629				20,843
Non-current deferred rent liability			1,231				1,027
Other liabilities			117				67
Total liabilities			54,720				43,621
Stockholders' equity (deficit)
Preferred stock, $0.0001 par value – 1,000 shares authorized at March 31, 2021 and December 31, 2020; zero shares issued and outstanding as of March 31, 2021 and December 31, 2020			-				-
Common stock, $0.0001 par value – 125,000 shares authorized at March 31, 2021 and December 31, 2020; 52,549 shares issued and outstanding at March 31, 2021; 40,289 shares issued and 39,542 shares outstanding as of December 31, 2020			5				4
Additional paid-in capital			347,967				197,507
Accumulated other comprehensive income (loss)			(444	)			10
Accumulated deficit			(171,302	)			(152,547	)
Total stockholders' equity (deficit)			176,226				44,974
Total liabilities and stockholders' equity (deficit)		$	230,946			$	88,595

CuriosityStream Inc.
Consolidated Statements of Operations
(in thousands, except for per share data)
(unaudited)
		For the three months ended March 31,
		2021				2020
Revenues		$	9,936			$	7,467
Operating expenses
Cost of revenues			4,158				2,666
Advertising and marketing			12,248				12,705
General and administrative			8,733				4,184
			25,139				19,555
Operating loss			(15,203	)			(12,088	)
Other income (expense)
Change in fair value of warrant liability			(3,786	)			-
Interest and other income			260				332
Loss before income taxes			(18,729	)			(11,756	)
Provision for income taxes			26				37
Net loss		$	(18,755	)		$	(11,793	)
Less preferred dividends and accretion of issuance costs			-				(4,237	)
Net loss attributable to common stockholders		$	(18,755	)

FAQ

What were CuriosityStream's Q1 2021 revenue figures?

CuriosityStream reported Q1 2021 revenue of $9.9 million, an increase from $7.5 million in the same quarter of 2020.

How many subscribers did CuriosityStream have in Q1 2021?

CuriosityStream had approximately 16 million paying subscribers in Q1 2021, reflecting a year-over-year increase of 28%.

What is CuriosityStream's revenue guidance for 2021?

CuriosityStream expects to achieve at least $71 million in revenue for the full year 2021, representing 80% year-over-year growth.

What was the net loss reported by CuriosityStream in Q1 2021?

CuriosityStream reported a net loss of $(18.8) million for Q1 2021, compared to $(11.8) million in Q1 2020.