CuriosityStream Reports Q1 2024 Earnings Results
CuriosityStream Inc. (NASDAQ: CURI) reported positive financial results for Q1 2024, including a net cash from operating activities and adjusted free cash flow for the first time. The company declared a dividend of $0.025 per share, showcasing a strong position for 2024. Revenue slightly decreased but gross profit increased. The company achieved 100,000 paying subscribers for Curiosity University and launched Kidstream. Business highlights include new content licensing agreements, original series releases, and upcoming programming stunts. CFO transition announced with Peter Westley resigning and Brady Hayden appointed as CFO. Financial outlook for Q2 2024 is positive.
Positive financial results for Q1 2024, with net cash from operating activities and adjusted free cash flow reported for the first time.
Declared a dividend of $0.025 per share, showcasing confidence in the company's trajectory for 2024 and beyond.
Revenue slightly decreased to $12.0 million, but gross profit increased to $5.3 million compared to Q1 2023.
Curiosity University surpassed 100,000 paying subscribers and added Kidstream to its services, reflecting growth and diversification.
Secured 11 content licensing agreements and released original series across various genres, enhancing content offerings.
Upcoming programming stunts such as Ancient Egypt Week and Jaws & Claws Week aim to increase content discoverability and engagement.
CFO transition announced with Peter Westley resigning and Brady Hayden appointed as CFO, emphasizing continuity and leadership.
Positive financial outlook for Q2 2024, with revenue expected within the range of $12.0 - $13.0 million and adjusted free cash flow within the range of $1.5 - $2.5 million.
Net loss of $5.0 million in Q1 2024, compared to a net loss of $7.7 million in Q1 2023, signaling a year-over-year decline.
Adjusted EBITDA loss of $2.8 million in Q1 2024, compared to a loss of $6.4 million in Q1 2023, indicating continued challenges in profitability.
CuriosityStream's transition to a positive net cash flow reflects a notable improvement in operational efficiency. The reported reduction in total expenses and the declaration of a cash dividend, albeit modest, are signs of management's confidence in the company's financial health and future prospects. A dividend can serve as a tangible return to investors and could potentially attract income-focused shareholders.
However, the slight decrease in revenue year-over-year warrants attention. For a growth-oriented company like CuriosityStream, steadily increasing revenues are critical for sustaining its market position against competitors. Moreover, while the cash and restricted cash balance appears solid, especially with no debt, the company must maintain revenue growth and control costs to ensure long-term viability. The forward-looking revenue guidance provides a positive signal, but it is relatively narrow, indicating that substantial growth is not immediately expected.
The launch of Curiosity Stream into new European markets via Apple TV+ and the addition of 11 Content Licensing Agreements showcase the company's strategic expansion efforts. The growth of Curiosity University's subscriber base past 100,000 is a significant milestone, demonstrating the value of its educational content.
The diversification of CuriosityStream's offerings with Kidstream indicates a move to capture a broader audience segment. The release of original series and specials across various genres helps in differentiating the platform's content library—a critical factor in the highly competitive streaming space. However, the true measure of success for these initiatives will be their contribution to sustained subscriber growth and long-term customer retention.
The CFO transition coincides with CuriosityStream's first positive cash flow report, signaling potential shifts in financial strategy. Peter Westley's move from a CFO to a consulting role may indicate a desire for continuity, while Brady Hayden brings experience from different industries that could introduce fresh perspectives.
Investors often scrutinize executive changes for signs of internal stability or strategic redirection. As Hayden takes the reins, stakeholders will be looking for him to continue the current trajectory of cost rationalization and cash flow generation. These are pivotal for funding further growth initiatives without the need for external financing.
- Positive Net Cash from Operating Activities and Adjusted Free Cash Flow for First Time
-
Dividend of
$0.02 5
"We generated over
First Quarter 2024 Financial Results
-
Revenue of
$12.0 million $12.4 million -
Gross profit of
$5.3 million $3.4 million -
Total advertising and marketing and general and administrative expenses of
$8.9 million $11.2 million -
Net loss of
$5.0 million $7.7 million -
Net cash provided by operating activities of
$0.7 million $6.3 million -
Adjusted Free Cash Flow of
$1.2 million $6.3 million -
Adjusted EBITDA loss of
$2.8 million $6.4 million -
Cash and restricted cash balance of
$38.9 million
First Quarter 2024 Business Highlights
- Apple TV+ launch of Curiosity Stream into 23 European countries.
- 11 Content Licensing Agreements across several territories and platforms.
- Curiosity University (newly relaunched and rebranded from One Day University) surpasses 100,000 paying subscribers and now features courses, videos, and podcasts from the world's best subject matter experts in addition to the premium talks from the best professors at the most renowned universities.
- Kidstream, with its unique and carefully curated selection of high-profile children’s shows, is the newest service to join Curiosity’s Smart Bundle, with a commitment to programming that’s safe, educational, and ad-free.
-
Released original series and specials across a range of genres and formats, including Science for Evil Geniuses, an irreverent real-world test of super-villain science, starring Game of Thrones actor Paul Kaye; the fourth season of high-school football series 4th & Forever, following the DeSoto Eagles' quest to re-capture another
Texas state title; The Invention of Surgery, an unflinching look at the pioneers who transformed medicine from a primitive art into a sophisticated and successful science; The Art of Seduction, an exposé of the secret powers of some of history’s most influential characters; and Believe, a beautiful look at the origins, traditions and festivals of the world’s five biggest religions, and the challenges they face today. - Launched additional annual programming stunts including Ancient Egypt Week and the upcoming Jaws & Claws Week to enhance content discoverability and promotion.
Financial Outlook
CuriosityStream expects the following for the second quarter of 2024:
-
Revenue within the range of
$12.0 $13.0 million -
Adjusted Free Cash Flow1 within the range of
$1.5 $2.5 million
1 See Non-GAAP Financial Measures below.
CFO Transition
CuriosityStream is also announcing a transition among its executive leadership. Peter Westley will resign his role as Chief Financial Officer and return to consulting status with the Company effective May 31, 2024. Westley helped shepherd CuriosityStream to positive cash flow, oversaw distribution of the Company's first dividend and built a capable Finance team, including Controller Brady Hayden. The Board of Directors has named Hayden, who held previous positions with Cyren Ltd, US Postal Service and Spok Holdings Inc., CFO effective May 31, 2024.
Conference Call Information
CuriosityStream will host a Q&A conference call today to discuss the Company’s first quarter 2024 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 (888) 510-2008 or International at (646) 960-0306 and reference conference ID# 3957505. An audio replay of the conference call will be available for two weeks following the call 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, consumers’ valuation of factual content, and the Company’s continued success. 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, 2023, that CuriosityStream filed with the Securities and Exchange Commission (the “SEC”) on March 25, 2024, and in CuriosityStream’s other SEC filings. These risk factors are 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 ability to maintain and develop new and existing revenue-generating relationships and partnerships or to significantly increase CuriosityStream's subscriber base and retain customers; (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; and (vi) privacy and data protection laws, privacy or data breaches, or the loss of data.
Non-GAAP Financial Measures
To supplement our unaudited consolidated statement of operations, which is prepared in accordance with GAAP, we present Adjusted EBITDA and Adjusted Free Cash Flow in this press release. Our use of non-GAAP financial measures, such as Adjusted EBITDA and Adjusted Free Cash Flow, 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.
The Company is not able to provide expectations of net cash generated from operating activities, the closest comparable GAAP measure to Adjusted Free Cash Flow (a non-GAAP measure), on a forward-looking basis. The Company is unable to predict without unreasonable costs and efforts the ultimate amounts of certain cash receipts and outlays because, in part, such items may have not yet occurred, are out of the Company’s control and/or cannot be reasonably predicted. These items are further described in the reconciliation tables and related descriptions below. Further, these items are uncertain, depend on various factors and could be material to the Company’s results computed in accordance with
We use these non-GAAP financial measures 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. These measures provide consistency and comparability with past financial performance, facilitate period-to-period comparisons of core operating results, and also facilitate comparisons with other peer companies, many of which use similar non-GAAP financial measures to supplement their GAAP results. In addition, Adjusted EBITDA and Adjusted Free Cash Flow are widely used by investors and securities analysts to measure a company’s operating performance. We exclude the following items from net income to calculate Adjusted EBITDA: interest and other income (expense), provision for income taxes, depreciation and non-content amortization, loss/(gain) on the change in fair value of our warrants, equity interests loss (gain), impairment of goodwill, intangible assets and content assets, restructuring charges and stock-based compensation. Adjusted Free Cash Flow is calculated as net cash flow used in operating activities less purchases of property and equipment, restructuring charges and nonrecurring license fees.
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 Adjusted EBITDA does not reflect cash capital expenditure requirements for such replacements or for new capital expenditure requirements; (2) Adjusted 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; and (3) Adjusted Free Cash Flow does not reflect: (a) our cash flow available for discretionary payments; (b) our future contractual commitments (such as any debt service requirements or dividend payments); (c) funds available for investment or other discretionary uses; (d) certain capital expenditure requirements; or (e) the total increase or decrease in our cash balances for the stated period. The non-GAAP financial measures 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 financial measures has been provided in the financial statements tables included in this press release and investors are encouraged to review the reconciliation.
About Curiosity Inc.
Curiosity Inc. is the entertainment brand for people who want to know more. The global media company is home to award-winning original and curated factual films, shows, and series covering science, nature, history, technology, society, and lifestyle. With millions of subscribers worldwide and thousands of titles, the company operates the flagship Curiosity Stream SVOD service, available in more than 175 countries worldwide; Curiosity Channel, the linear television channel available via global distribution partners; Curiosity University, featuring talks from the best professors at the world's most renowned universities as well as courses, short and long-form videos, and podcasts; Curiosity Now, a free, ad-supported channel; Curiosity Audio Network, with original content and podcasts; and Curiosity Studios, which oversees original programming. Curiosity Inc. is a wholly owned subsidiary of CuriosityStream Inc. (Nasdaq: CURI). For more information, visit CuriosityStream.com.
CuriosityStream Inc. |
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Consolidated Balance Sheets |
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March 31,
|
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December 31,
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(In thousands, except par value) |
(Unaudited) |
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Assets |
|
|
|
||||
|
|
|
|
||||
Current assets |
|
|
|
||||
Cash and cash equivalents |
$ |
38,750 |
|
|
$ |
37,715 |
|
Restricted cash |
|
125 |
|
|
|
500 |
|
Accounts receivable, net |
|
4,876 |
|
|
|
4,760 |
|
Other current assets |
|
1,831 |
|
|
|
2,315 |
|
Total current assets |
|
45,582 |
|
|
|
45,290 |
|
Investments in equity method investees |
|
4,598 |
|
|
|
6,354 |
|
Property and equipment, net |
|
639 |
|
|
|
727 |
|
Content assets, net |
|
40,154 |
|
|
|
44,943 |
|
Operating lease right-of-use assets |
|
3,279 |
|
|
|
3,350 |
|
Other assets |
|
311 |
|
|
|
358 |
|
Total assets |
$ |
94,563 |
|
|
$ |
101,022 |
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|
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Liabilities and stockholders’ equity |
|
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Current liabilities |
|
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Content liabilities |
$ |
74 |
|
|
$ |
407 |
|
Accounts payable |
|
3,288 |
|
|
|
4,765 |
|
Accrued expenses and other liabilities |
|
4,766 |
|
|
|
3,705 |
|
Deferred revenue |
|
14,651 |
|
|
|
14,521 |
|
Total current liabilities |
|
22,779 |
|
|
|
23,398 |
|
Warrant liability |
|
74 |
|
|
|
44 |
|
Non-current operating lease liabilities |
|
4,187 |
|
|
|
4,283 |
|
Other liabilities |
|
562 |
|
|
|
651 |
|
Total liabilities |
|
27,602 |
|
|
|
28,376 |
|
|
|
|
|
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Stockholders’ equity |
|
|
|
||||
Common stock, |
|
5 |
|
|
|
5 |
|
Additional paid-in capital |
|
363,319 |
|
|
|
362,636 |
|
Accumulated other comprehensive loss |
|
— |
|
|
|
— |
|
Accumulated deficit |
|
(296,363 |
) |
|
|
(289,995 |
) |
Total stockholders’ equity |
|
66,961 |
|
|
|
72,646 |
|
Total liabilities and stockholders’ equity |
$ |
94,563 |
|
|
$ |
101,022 |
|
CuriosityStream Inc. |
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Consolidated Statements of Operations |
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Three Months Ended
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(Unaudited and in thousands except per share amounts) |
2024 |
|
2023 |
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|
|
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Revenues |
$ |
12,001 |
|
|
$ |
12,387 |
|
|
|
|
|
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Operating expenses |
|
|
|
||||
Cost of revenues |
|
6,748 |
|
|
|
9,001 |
|
Advertising and marketing |
|
3,105 |
|
|
|
3,115 |
|
General and administrative |
|
5,802 |
|
|
|
8,059 |
|
|
|
15,655 |
|
|
|
20,175 |
|
Operating loss |
|
(3,654 |
) |
|
|
(7,788 |
) |
|
|
|
|
||||
Change in fair value of warrant liability |
|
(30 |
) |
|
|
(74 |
) |
Interest and other income |
|
439 |
|
|
|
388 |
|
Equity method investment loss |
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FAQ
What is the dividend amount declared by CuriosityStream for Q1 2024?
CuriosityStream declared a dividend of $0.025 per share for the first quarter of 2024.
How many content licensing agreements did CuriosityStream secure in Q1 2024?
CuriosityStream secured 11 content licensing agreements across several territories and platforms in the first quarter of 2024.
Who is the new CFO of CuriosityStream following the transition in Q1 2024?
Brady Hayden was appointed as the new CFO of CuriosityStream effective May 31, 2024, following Peter Westley's resignation.
What is the financial outlook for CuriosityStream in Q2 2024?
CuriosityStream expects revenue within the range of $12.0 - $13.0 million and adjusted free cash flow within the range of $1.5 - $2.5 million for the second quarter of 2024.
CuriosityStream Inc.
NASDAQ:CURICURI RankingsCURI Latest NewsCURI Stock Data
58.96M
53.60M
43.5%
6.03%
0.88%
Motion Picture and Video Production
Information
United States of America
SILVER SPRING
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