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Jun 30, 2024
Cinedigm Q1 2025 Earnings Report
Cineverse's financial performance reflected cost streamlining initiatives and strategic developments.
Key Takeaways
Cineverse reported a decrease in revenue to $9.1 million, but benefited from cost streamlining, leading to an improved direct operating margin of 51%. The company saw growth in viewership and podcast revenue, and is preparing for the release of 'Terrifier 3'.
Total revenue was $9.1 million, down from $13.0 million year-over-year, impacted by reduced streaming and digital revenue.
Direct operating margin increased to 51% from 46% due to decreased direct operating expenses.
SG&A expenses decreased by $1.3 million, or 17%, driven by reduced legal, consulting, and compensation costs.
Net loss attributable to common stockholders improved to $3.2 million, or $(0.20) per share, from $3.6 million, or $(0.37) per share.
Cinedigm
Cinedigm
Forward Guidance
Cineverse anticipates revenue upsides from new sales initiatives, including Matchpoint technology, AI products, and omni-advertising programs. The company expects significant growth in digital, licensing, and Matchpoint revenues.
Positive Outlook
- Expect 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 73%.
- Combined with the rapid growth of our podcast business, this should set the stage for significant revenue upsides.
- Terrifier 3 is on target for theatrical release on October 11, 2024.
- Licensing sales have increased substantially, and our sales team has gained significant early traction.
Challenges Ahead
- Challenging year-over-year revenue comparisons due to the timing of digital content releases and legacy Digital Cinema non-recurring items.
- Did not yet begin to record the revenue upsides during the quarter from our new sales teams and new sales initiatives.
- Adjusted EBITDA improved by $0.1 million to ($1.4) million.
- Total revenue of $9.1 million versus $13.0 million, mainly reflecting a reduction of $2.4 million in Streaming and Digital revenue.
- Net loss attributable to common stockholders was $3.2 million.