CuriosityStream (CURI) Conference Summary Company Overview - CuriosityStream is a subscription-based streaming service focused on factual content, with nearly 20 million paid subscribers across 175 countries [24][45] - The company offers a diverse library of content, including categories such as science, history, nature, technology, and more [25][24] - CuriosityStream aims to be a trusted resource in homes, providing a breadth of factual programming rather than relying on hit content [24] Key Financial Highlights - The company has achieved five consecutive quarters of positive free cash flow [45] - Revenue projections for the second quarter imply a year-over-year growth of 30% to 37% [45] - CuriosityStream pays a special dividend, yielding approximately 8.7% over the year, which is uncommon for growth companies [45][55] Strategic Initiatives - The company is focusing on rationalizing its cost base to become a profitable, cash flow-generating entity [45] - CuriosityStream has a strong balance sheet with under $40 million in cash and no debt [52] - The company is exploring opportunities in licensing content for AI training, which is expected to be a significant growth area [48][78] Content and Distribution - CuriosityStream's content is dubbed or subtitled in about 12 languages, with plans to expand this through AI solutions [32][33] - The company has established partnerships with major distributors, including Signal in the Philippines and Samsung in Spain [32] - CuriosityStream offers various subscription services, including Curiosity University and a premium bundle that includes multiple channels [34][37] Market Position and Competition - The subscription video on demand landscape is dominated by major players like Netflix and Disney, with CuriosityStream positioned as a smaller but growing service [27][28] - The company benefits from the global appeal of factual content, which is less culturally specific than other genres [31] Future Outlook - CuriosityStream anticipates growth in all revenue categories, with content licensing expected to become the largest revenue source in the next three years [79] - The company is committed to ongoing content acquisition and marketing efforts to drive subscriber growth [76][77] - The management team expresses confidence in the company's trajectory and the potential for significant opportunities in the licensing space [78][80] Additional Insights - The company has a unique collection of Catholic courses content, which is being offered as a subscription service [36] - CuriosityStream's audio offerings include over 8,000 titles and are distributed through major platforms like Spotify and Audible [41] - The management emphasizes the importance of shareholder value and considers various strategies, including dividends and potential stock repurchases [61][62] Conclusion - CuriosityStream presents a compelling investment opportunity, with a strong focus on factual content, a solid financial foundation, and significant growth potential in licensing and international markets [80]

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.While many investors like to look for moment ...

The Zacks Film and Television Production and Distribution industry is witnessing a surge in demand for digital entertainment due to operational constraints faced by movie theaters, theme parks and cruise lines. This increased consumption of online media, music and news, driven by the work-and-learn-from-home trend, has been a boon for industry players like Live Nation Entertainment (LYV) , TKO Group Holdings, Inc. (TKO) and CuriosityStream (CURI) . However, as more players enter the field, content costs are ...

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Even though momentum is a popular stock char ...

CuriosityStream (NASDAQ: CURI ) has risen 10x since our bullish article was published in March of last year. At the time, the company was trading below its cash value and was burning cash, albeit at a decreasing rate. Starting in Q1 2024, the company becameEdward Schneider is a managing director of Quan Management LLC. Mr. Schneider has over 30 years of investment experience, including 25 years managing technology funds in both quoted equities and venture capital. Mr. Schneider holds a CFA designation, an M ...

CuriosityStream Inc. (CURI) came out with quarterly earnings of $0.01 per share, beating the Zacks Consensus Estimate of a loss of $0.01 per share. This compares to loss of $0.09 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 200%. A quarter ago, it was expected that this company would post a loss of $0.02 per share when it actually produced a loss of $0.05, delivering a surprise of -150%.Over the last four quarters, the comp ...

Financial Data and Key Metrics Changes - Q1 revenue reached $15.1 million, representing a 26% year-over-year increase and a 7% sequential increase [6] - Net income was positive for the first time, improving by $5.4 million year-over-year [6][13] - Adjusted EBITDA was positive at $1.1 million, an improvement of $3.9 million from the previous year [13][16] - Gross margin improved to 53%, up from 44% a year ago, driven by reductions in content amortization [14] - Adjusted free cash flow was $2 million, the high end of guidance, and an increase of $800,000 compared to last year [13][16] Business Line Data and Key Metrics Changes - Direct subscription revenue was approximately $9 million, showing a slight decline year-over-year, offset by a $4 million increase in licensing revenue [14][26] - Operating expenses declined by $1 million or 11% compared to last year, due to ongoing cost rationalization efforts [15][16] Market Data and Key Metrics Changes - The company reported a strong balance sheet with $39.1 million in liquidity and no debt, providing significant operating flexibility [11][16] - The company anticipates revenue for Q2 to be in the range of $16 million to $17 million [17] Company Strategy and Development Direction - The company is focused on five growth pillars: increased licensing, rationalization of annual expenses, leveraging translation cost reductions, launching new currencies, and enhancing talent density [10] - The company has entered into several new third-party agreements and expanded its library of content significantly [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving double-digit growth in both top-line revenue and cash flow for 2025 [9][10] - The company plans to double its quarterly dividend to $0.08, reflecting confidence in future performance [9][34] Other Important Information - The company has implemented a dividend program, returning $6.3 million to shareholders since its inception [16] - Management highlighted the potential of AI licensing opportunities, with expected gross margins of 40% to 50% [46] Q&A Session Summary Question: How has Gen AI contributed to cost reductions? - Management noted that costs were reduced largely without leveraging AI tools, but they see potential for further cost reductions through AI in the future [19][20] Question: What were the key drivers for revenue growth? - Management indicated that while direct subscription revenue was slightly down, licensing revenue saw significant growth due to a broad corpus of content appealing to various companies [25][28] Question: Is the reduction in costs sustainable? - Management confirmed that while some costs may increase seasonally, they expect a continued decline in G&A expenses throughout the year [30][31] Question: How confident is the company in covering the increased dividend? - Management expressed strong confidence in generating sufficient cash flow to cover the dividend, supported by a robust cash reserve [34][35] Question: What consumer trends are observed in the direct business? - Management indicated that direct subscription revenue is largely influenced by marketing spend efficiency, with expectations for opportunistic growth in the future [40][42] Question: What is the pipeline for AI licensing? - Management highlighted a broad set of potential licensees, including tech companies and government agencies, with significant deals expected to impact profitability [46][47] Question: Are the relationships in AI content sustainable? - Management believes that strong relationships and high-quality content will lead to recurring business opportunities, despite the nature of licensing agreements [51][56]

Investment and Ownership - The carrying value of the Company's equity method investment in Nebula decreased from $3,848,000 as of December 31, 2024, to $3,697,000 as of March 31, 2025, reflecting an equity method investment loss of $151,000[37]. - The Company acquired a 32% ownership in the Spiegel Venture for an initial investment of $3.3 million in July 2021, which operates two documentary channels and an SVOD service[38]. - The Company holds a 16.875% ownership interest in Nebula as of March 31, 2025, after making incremental purchases totaling $6.0 million since August 2021[44]. - The Company has a Call Option to acquire the remaining ownership interests in the Spiegel Venture, exercisable after the adoption of the Spiegel Venture's audited financial statements for the fiscal year 2025[40]. - The Company has not received any dividends from either the Spiegel Venture or Nebula as of March 31, 2025[38][44]. Financial Performance - Total revenues for the three months ended March 31, 2025, were $15,090,000, a 25.6% increase compared to $12,001,000 for the same period in 2024[54]. - Direct-to-Consumer revenue decreased to $6,530,000, accounting for 43% of total revenue, down from 68% in the prior year[54]. - The net income for the three months ended March 31, 2025, was $319,000, a significant improvement from a net loss of $5,035,000 in the same period of 2024[72]. - For the three months ended March 31, 2025, the company reported revenues of $15,090,000, an increase of 25.9% compared to $12,001,000 for the same period in 2024[85]. - The company’s international revenue accounted for 29% of total revenue in Q1 2025, with Switzerland contributing 10% of total revenue[86]. Expenses and Liabilities - Total operating expenses for the three months ended March 31, 2025, were $15,011,000, a decrease of 4.1% from $15,655,000 in the same period of 2024[85]. - Content amortization for the three months ended March 31, 2025, was $3,513,000, down from $5,215,000 in the same period of 2024[51]. - Content amortization expenses decreased to $3,513,000 in Q1 2025 from $5,215,000 in Q1 2024, reflecting a reduction of 32.6%[85]. - Total deferred revenues decreased to $10.9 million as of March 31, 2025, from $11.4 million as of December 31, 2024[56]. - The total operating lease cost for the three months ended March 31, 2025, was $133,000, slightly up from $131,000 in 2024[92]. Cash and Investments - As of March 31, 2025, the company's cash and cash equivalents increased to $9,183,000 from $7,826,000 as of December 31, 2024, representing a growth of approximately 17.4%[46]. - The Company’s investments in debt securities are classified as held-to-maturity and reported at amortized cost, with interest income recognized as non-operating income[27][28]. - The fair value of Private Placement Warrants increased to $96,000 as of March 31, 2025, compared to $88,000 as of December 31, 2024[53]. - The fair value of the warrant liability for the Private Placement Warrants was estimated at $0.03 per warrant as of March 31, 2025, compared to $0.02 per warrant as of December 31, 2024[70]. Shareholder Actions - The Company paid a Holdback Payment of $900,000 to Spiegel TV and Autentic in July 2023 due to the Spiegel Venture achieving certain financial targets during its 2022 fiscal period[39]. - The Company declared a quarterly cash dividend of $0.08 per share, totaling approximately $4.6 million, to be paid on June 20, 2025[100]. - The company had repurchased 216,000 shares of its common stock at an average price of $1.16 per share, totaling $0.3 million as of December 31, 2024[64]. - The company had a weighted-average of 57,132,000 shares outstanding for the three months ended March 31, 2025, compared to 53,301,000 shares for the same period in 2024[72]. Future Expectations - The company expects to recognize future revenues of $1,955,000 in 2025 related to remaining performance obligations[55]. - The Company has not yet adopted new accounting pronouncements under the JOBS Act and expects to no longer qualify as an emerging growth company after December 31, 2025[34]. - The company anticipates amortizing $5.3 million, $2.5 million, and $0.7 million of licensed content costs over the next three years[49]. - Future advertising commitments totaled $1.7 million, expected to be paid during the year ending December 31, 2025[98]. Tax and Valuation - Income tax expense for the three months ended March 31, 2025, was immaterial due to a full valuation allowance position[99]. - The weighted average discount rate used for measuring operating lease liabilities was 4.4% as of March 31, 2025[91]. - Total lease payments due are $4.96 million, with a present value of total lease liabilities at $4.187 million[93].

Curiositystream (CURI) Q1 2025 Earnings Call May 06, 2025 05:00 PM ET Speaker0 Thank you for standing by. My name is Carrie, and I will be your conference operator today. At this time, I would like to welcome everyone to the Curiosity Stream Q1 twenty twenty five Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. Thank you. I would now like to turn the call over to Tia Cudahy, Chief Operating ...

First Quarter 2025 Financial Results ▪ Revenue of $15.1 Million, Increased 26% YoY ▪ $5.4 million Improvement in Net Income YoY ▪ Dividend Program Increased 100% to $0.32 Annually ▪ Guiding Q2 Revenue to 30-37% Growth YoY • Revenue of $15.1 million, compared to $12.0 million in the first quarter of 2024; • Gross profit of $8.0 million or 53.1%, compared to $5.3 million or 43.8% in the first quarter of 2024; • Net income of $0.3 million, compared to net loss of $5.0 million in the first quarter of 2024; • Ad ...