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Mar 31, 2024
Cinedigm Q4 2024 Earnings Report
Cineverse reported Q4 2024 results with improved direct operating margin and streamlined cost structure.
Key Takeaways
Cineverse reported Q4 2024 financial results, featuring a total revenue of $9.9 million and an adjusted EBITDA of $1.6 million. The company experienced a decrease in revenue compared to the previous year's quarter, but significantly improved its direct operating margin to 79%. SG&A expenses also decreased, reflecting the impact of cost savings initiatives.
Total revenue was $9.9 million, down from $12.5 million year-over-year.
Direct operating margin increased to 79% from 48% in the prior year quarter.
SG&A expenses decreased by $1.0 million to $6.8 million.
Adjusted EBITDA increased by $2.4 million to $1.6 million.
Cinedigm
Cinedigm
Forward Guidance
Cineverse is focusing on sustainable profitability, expanding its technology partnerships, and scaling the distribution of audio and video content while optimizing operating and SG&A costs. The company expects to see considerable growth in sales of Matchpoint Dispatch and anticipates significant revenue upside in its Podcast Network. Cineverse also plans on deploying the cineSearch product in cloud marketplaces and engaging in early commercial conversations with various device manufacturers.
Positive Outlook
- The streaming business is currently operating at greater than 50% direct operating margins.
- Secured carriage agreements for The Dog Whisperer Channel with nearly all hardware manufacturers and FAST streaming services in North America.
- The channel's performance has exceeded expectations in the short period it has been in the market, outperforming top channels by up to 40% on key platforms.
- Tripled the size of the direct advertising sales force with experienced executives and closed major campaigns with Focus Features, Amazon Prime Video, SimpliSafe Home Security, 20th Century Fox, Master Class, A24 Studios, and many more.
- Launched the cineSearch beta during the quarter and are currently in a dual-track effort to refine AI models and focus on commercialization.