Financial Performance - Revenue for Q1 2025 was $15.1 million, representing a 26% increase year-over-year from $12.0 million in Q1 2024[5] - Net income improved to $0.3 million in Q1 2025, compared to a net loss of $5.0 million in Q1 2024[6] - Adjusted EBITDA for Q1 2025 was $1.1 million, a significant improvement from an adjusted EBITDA loss of $2.8 million in Q1 2024[6] - Revenues for the three months ended March 31, 2025, increased to $15,090,000 from $12,001,000 in the same period of 2024, representing a growth of 25.9%[23] - Operating income improved to $79,000 compared to a loss of $3,654,000 in the prior year, indicating a significant turnaround in profitability[23] - Net income for the period was $319,000, a recovery from a net loss of $5,035,000 in the previous year[23] - Adjusted EBITDA for the three months ended March 31, 2025, was $1,102,000, compared to a loss of $2,848,000 in the same period of 2024[27] - Net cash provided by operating activities increased to $1,922,000 from $666,000 year-over-year, reflecting improved cash flow management[29] - Adjusted Free Cash Flow for the period was $2,005,000, up from $1,186,000 in the prior year, indicating enhanced financial flexibility[29] - The company reported a basic net income per share of $0.01, recovering from a loss of $0.09 per share in the same quarter of 2024[23] Guidance and Future Outlook - The company guided for Q2 2025 revenue growth of 30-37% year-over-year[5] - The annual dividend was increased by 100% to $0.32 per share, reflecting confidence in future growth[5] Cost Management - Total advertising and marketing expenses decreased by 11% year-over-year to $7.9 million[6] - Total operating expenses decreased slightly to $15,011,000 from $15,655,000, demonstrating cost control efforts[23] Cash and Securities - Cash, restricted cash, and held-to-maturity securities balance was $39.1 million with no debt as of March 31, 2025[6] - Cash, cash equivalents, and restricted cash at the end of the period totaled $9,308,000, compared to $38,875,000 at the end of the same period in 2024[25] Investments and Services - CuriosityStream launched new services across North and Latin America, including Curiosity University on The Roku Channel[10] - The company secured rights to over 210,000 hours of video and audio data across various genres[10] - The company incurred $863,000 in stock-based compensation, up from $689,000 in the previous year, reflecting ongoing investment in talent[27]

Core Insights - CuriosityStream (CURI) stock has gained significant attention in the market, particularly in the latter half of the previous year, marking it as one of the top performers in the pure-play streaming sector [1] Group 1 - CuriosityStream has delivered substantial gains, indicating strong market performance and investor interest [1] - The company has been recognized as one of the best performers in the streaming industry over the past year, showcasing its competitive position [1]

Financial Performance - For the year ended December 31, 2024, CuriosityStream reported revenue of $51.1 million and a net loss of $12.9 million[42]. - The company reported an accumulated deficit of $308.4 million as of December 31, 2024, and incurred a net loss of $12.9 million for the year[64]. - The company generated positive cash flow from operations for the first time in 2024, but future sustainability of this cash flow remains uncertain[64]. - The company achieved positive net cash flow from operating activities in 2024, reversing a trend of negative operating cash flows historically[133]. - The company may face substantial liquidity problems if cash flows are insufficient to service obligations, potentially leading to asset sales or delayed investments[135]. Revenue Sources - CuriosityStream's Direct Business revenue is derived from subscriptions through its website and mobile applications, available in over 175 countries[34]. - The company generates revenue from Transactional Video-On-Demand (TVOD), allowing consumers to purchase or rent individual titles[35]. - CuriosityStream's content licensing business provides factual content to media companies and technology firms, including assets for training AI models[38]. - The company aims to broaden and stabilize revenue sources, increase the number of paying subscribers, and potentially raise subscription prices to achieve profitability[65]. Content and Programming - The company has over 15,000 programs in its content library, with new titles launched weekly[28]. - CuriosityStream acquired One Day University and Learn25, expanding its factual content offerings into audio and educational courses[30]. - The company plans to expand into international markets and develop new content offerings, including a free ad-supported streaming channel and a Smart Bundle plan[68][74]. - Approximately 73% of titles on CuriosityStream's SVOD service are subject to licenses, with 49% expiring in 2025 and 13% in 2026[124]. - The company faces challenges in negotiating acceptable licensing terms with content providers, which could impact content availability[124]. Competition and Market Challenges - The company faces competition from major SVOD providers like Amazon Prime Video, Hulu, and Netflix, as well as traditional media[43]. - The company has experienced significant user growth but faces challenges in attracting and retaining users due to competition and macroeconomic conditions[58][60]. - The company faces intense competition from established players like Netflix and Amazon, which have greater resources and broader user bases[83]. - The company’s brand identity is still developing, and failure to build a strong brand could adversely affect user attraction and retention[82]. - The potential for increased programming costs due to competition may affect user acquisition and retention strategies[125]. Operational Efficiency and Workforce - The company employed an average of 47 full-time employees in 2024, down from 57 in 2023, with a total of 45 employees as of December 31, 2024, following a restructuring that eliminated 4 positions[53]. - The company has undertaken cost-savings initiatives, including workforce reductions, to control expenditures and improve operational efficiency[62][63]. - The company faces challenges in recruiting and retaining key personnel, which could disrupt operations and affect profitability[193]. Legal and Regulatory Risks - The company received a notice from Nasdaq on September 19, 2023, indicating non-compliance with the $1.00 minimum bid price requirement for continued listing[164]. - The company is at risk of delisting from Nasdaq, which could lead to reduced liquidity and increased regulatory scrutiny if it cannot maintain listing requirements[165]. - The company faces potential statutory damages of up to $2,500 per violation under the Video Privacy Protection Act (VPPA) due to ongoing litigation[185]. - The Federal Trade Commission (FTC) has imposed a fine of $7.8 million on a defendant for sharing personal data without user consent, highlighting regulatory scrutiny in data privacy[186]. - The California Consumer Privacy Act (CCPA) has introduced significant compliance obligations, with civil penalties for violations and a new enforcement agency[187]. Cybersecurity and Data Protection - The company is exposed to cybersecurity risks that could result in unauthorized access to data and harm its reputation[141]. - The company has established a comprehensive cybersecurity program to manage risks and protect sensitive information, overseen by a Vice President with 17 years of experience[201][204]. - The company’s cybersecurity strategy includes regular risk assessments and continuous monitoring to prevent incidents that could materially affect its business[205]. - The company relies on third parties for payment processing and data security, which poses risks of unauthorized access to user data[191]. Strategic Partnerships and Ventures - The company has partnered with Spiegel TV to expand its services in German-speaking Europe, taking a one-third stake in a joint venture[31]. - The company is involved in a joint venture, Spiegel Venture, which presents risks related to shared decision-making and potential conflicts of interest[73]. Future Outlook and Growth Strategies - The company recognizes that its growth strategies are untested and may incur significant operating and capital expenditures, leading to continued net losses[76]. - The company must continually add new users to replace those who cancel subscriptions and to grow beyond the current user base[79]. - Changes in government regulations could impose additional operational burdens and expenses on the company[104]. - The company has multi-year commitments for content licensing and production, which may limit operational flexibility and adversely affect liquidity[138].

Financial Data and Key Metrics Changes - The company reported a year-over-year cash flow increase of approximately $26 million, moving from a cash loss of $16 million in 2023 to a cash gain of $10 million in 2024 [7] - Adjusted free cash flow for Q4 was $3.3 million, marking the highest quarterly adjusted free cash flow in the company's history and an improvement of $5.7 million from the prior year [21] - For the full year, adjusted free cash flow was $9.5 million, an improvement of $25.5 million from 2023 [21] - Total revenue for the full year was $51.1 million, which was lower than the previous year primarily due to fewer non-cash transactions [22] Business Line Data and Key Metrics Changes - Subscription revenue grew both sequentially and year-over-year, contributing to the overall revenue increase [9] - Direct business revenue for Q4 was $9.4 million, with a full-year total of $38.6 million, demonstrating a predictable, recurring revenue stream [22] - Gross margin for Q4 improved to 52%, up from 45% a year ago, driven by cost control efforts [23] Market Data and Key Metrics Changes - The company has a global subscriber base with subscribers in 176 different countries, indicating strong international appeal [13] - The company plans to add 20 to 30 new currency opportunities for subscribers in 2025, enhancing its global reach [14] Company Strategy and Development Direction - The company aims for double-digit revenue growth in 2025, supported by a strong content library and operational cost reductions [19] - The strategy includes leveraging rights to hundreds of thousands of hours of monetizable video and audio for licensing agreements, particularly with technology partners for AI training [10] - The company is focusing on enhancing talent density to improve productivity and innovation [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to topline revenue growth in 2025, driven by improved visibility and operational efficiencies [19] - The management highlighted the importance of building strong relationships with content partners to secure future licensing deals [36] - The company anticipates that licensing revenue will likely exceed direct revenue in 2025 [37] Other Important Information - The company announced an increase in dividends from $0.10 to $0.12 per share for Q1 2025, with a further increase to $0.16 planned for the year [15][16] - The company ended the year with approximately $40 million in liquidity and no debt [18] Q&A Session Summary Question: Revenue expectations for Q1 and full year - Management discussed the separation of subscription and advertising revenue, indicating that licensing revenue is expected to exceed direct revenue in 2025 [31][37] Question: Subscriber activity management amid macro uncertainty - Management compared the direct subscription business to larger competitors and emphasized the importance of a robust library and exciting specials to attract subscribers [40][46] Question: Update on FAST channels and ad-driven businesses - Management expressed enthusiasm about the high volume of content acquired and the performance of their FAST channels, indicating strong future revenue potential [52][56] Question: Differences in contracts for tech companies versus traditional media licensing - Management explained that tech company contracts often involve larger volumes of content but are typically project-based rather than long-term agreements [57][60]

Revenue Performance - Revenue for Q4 2024 was $14.1 million, a decrease of 4.7% compared to $14.8 million in Q4 2023[6] - Full year 2024 revenue totaled $51.1 million, down from $56.9 million in 2023[6] - Total revenues for 2024 were $51,134, a decrease of 10.4% compared to $56,889 in 2023[24] - CuriosityStream expects Q1 2025 revenue to be in the range of $14.5 - $15.5 million[10] Cash Flow and Financial Health - Free cash flow for 2024 was $9.5 million, an improvement of $25.5 million over 2023[2] - Adjusted free cash flow for Q4 2024 was $3.3 million, an increase of $5.7 million compared to Q4 2023[6] - The company achieved its highest quarterly adjusted free cash flow of $3.3 million in Q4 2024[5] - Cash flows from operating activities generated $8,151 in 2024, compared to a cash outflow of $16,172 in 2023[26] - Adjusted Free Cash Flow for 2024 was $9,507, compared to $(16,033) in 2023, indicating a positive shift[29] Losses and Improvements - Net loss for Q4 2024 was $2.8 million, improved from a net loss of $4.7 million in Q4 2023[6] - Operating loss for 2024 was $13,333, significantly improved from a loss of $44,471 in 2023[24] - Net loss for 2024 was $12,941, compared to a net loss of $48,896 in 2023, reflecting a reduction of 73.5%[24] - Adjusted EBITDA for 2024 was $(6,042), an improvement from $(20,187) in 2023[28] Assets and Equity - Cash and cash equivalents decreased to $7,826 in 2024 from $37,715 in 2023, a decline of 79.3%[22] - Total assets decreased to $86,182 in 2024 from $101,022 in 2023, a reduction of 14.7%[22] - Total stockholders' equity decreased to $57,848 in 2024 from $72,646 in 2023, a decline of 20.3%[22] Expenses and Investments - Total advertising and marketing expenses for 2024 were $39.1 million, a 17% year-over-year reduction[10] - The company incurred $5,698 in additions to content assets in 2024, down from $18,316 in 2023[26] Dividends - The Board of Directors raised the first quarter 2025 cash dividend to $0.04 per share, with an updated annual dividend policy of $0.16 per share[1] Content and Growth - The company launched three new US Hispanic FAST channels and increased content volume by over 200,000 hours[10]

Group 1 - CuriosityStream (NASDAQ: CURI) experienced a strong surge in stock price last fall, but the excitement has cooled during the last two months of 2024 [1] - Since the beginning of the year, bullish sentiment for CURI stock has increased again [1]

Financial Position - The Company reported cash and cash equivalents of $9.588 million as of September 30, 2024, down from $37.715 million as of December 31, 2023[48]. - The Company holds equity investments in Spiegel TV Geschichte und Wissen GmbH and Watch Nebula LLC, with total carrying values of $4.179 million as of September 30, 2024, down from $6.354 million as of December 31, 2023[39]. - The Company’s cash and cash equivalents and restricted cash totaled $9.713 million as of September 30, 2024, compared to $38.215 million as of December 31, 2023[48]. - As of September 30, 2024, total cash and cash equivalents amounted to $36,072,000, with Level 1 securities totaling $18,671,000 and Level 2 securities totaling $20,592,000[50]. - The fair value of Private Placement Warrants was not disclosed but is classified as a non-current liability, indicating potential future financial obligations[57]. - The fair value of the warrant liability for the Private Placement Warrants was estimated at $0.03 as of September 30, 2024, compared to $0.01 at December 31, 2023[77]. - As of September 30, 2024, the company had 3,054,203 publicly traded warrants outstanding with an exercise price of $11.50 per share[72]. - The company had authorized the issuance of 126,000,000 shares of capital stock, including 125,000,000 shares of common stock as of September 30, 2024[69]. - The company incurred a net loss of $10.1 million for the nine months ended September 30, 2024, while generating $5.1 million of net cash from operating activities[154]. - The net loss for the nine months ended September 30, 2024, was $10.1 million, down from a net loss of $44.2 million in the same period of 2023[165][166]. Revenue and Earnings - For the three months ended September 30, 2024, total revenues were $12,604,000, a decrease from $15,630,000 in the same period of 2023, with direct-to-consumer revenue contributing $7,750,000, representing 61% of total revenue[58]. - The company recognized $13,400,000 in revenues for the nine months ended September 30, 2024, related to amounts deferred as of December 31, 2023[62]. - Total trade and barter revenues for the three months ended September 30, 2024, were $1,416,000, a decrease of 71.5% compared to $5,199,000 for the same period in 2023[67]. - For the nine months ended September 30, 2024, total trade and barter revenues were $2,504,000, down 69.5% from $8,190,000 in 2023[67]. - For the three months ended September 30, 2024, total revenue was $12.6 million, a decrease from $15.6 million in the same period of 2023, representing a decline of 19%[91]. - Revenue from the United States accounted for 60% of total revenue in Q3 2024, compared to 57% in Q3 2023[91]. - International revenue totaled $5.1 million in Q3 2024, down from $6.7 million in Q3 2023, marking a decrease of 24%[91]. - The company recognized $0.1 million and $0.2 million in revenue from license fees related to the Spiegel Venture for the three and nine months ended September 30, 2024, respectively[92]. - For the nine months ended September 30, 2024, total revenue was $37.0 million, a decrease of $5.1 million, or 12%, compared to $42.1 million in 2023[120]. Expenses and Losses - Operating loss for the three months ended September 30, 2024, was $3.3 million, a decrease of $20.6 million, or 86%, from a loss of $23.9 million in 2023[116]. - The net loss for the three months ended September 30, 2024, was $3,062,000, compared to a net loss of $26,565,000 for the same period in 2023[79]. - Basic and diluted net loss per share for the three months ended September 30, 2024, was $(0.06), an improvement from $(0.50) in 2023[79]. - Operating expenses decreased by $35.4 million, or 43%, for the nine months ended September 30, 2024, compared to the same period in 2023[116]. - Operating expenses for the three months ended September 30, 2024, decreased to $15.9 million, a 60% reduction from $39.5 million in 2023[136]. - Cost of revenues decreased to $5.8 million for the three months ended September 30, 2024, a 31% reduction from $8.5 million in 2023[142]. - General and administrative expenses decreased to $6.4 million for the three months ended September 30, 2024, an 8% decline from $7.0 million in 2023[146]. - The company recorded no impairment charges for content assets for the three and nine months ended September 30, 2024, compared to a $19.0 million impairment charge in the same periods in 2023[147]. Investments and Assets - The Company made a Holdback Payment of $0.9 million to Spiegel TV and Autentic in July 2023 due to the Spiegel Venture achieving certain financial targets[41]. - The Company has not received any dividends from the Spiegel Venture or Nebula as of September 30, 2024[40][46]. - The Company’s investment in Nebula increased to 16.875% as of September 30, 2024, after multiple incremental purchases totaling $0.8 million each[46]. - The revenue share agreement with Nebula expired at the end of 2023 following a notice of non-renewal received on September 26, 2023[47]. - The total content assets decreased from $44,943,000 as of December 31, 2023, to $33,885,000 as of September 30, 2024, reflecting a reduction in both licensed and produced content[53]. - Content amortization for the three months ended September 30, 2024, was $4,569,000, compared to $5,389,000 for the same period in 2023, showing a decline in amortization expenses[55]. - The company reported $10,300,000 in unamortized costs for licensed content released as of September 30, 2024, with expected amortization of $5,100,000, $3,300,000, and $1,000,000 over the next three years[53]. - Total deferred revenues decreased from $15,200,000 as of December 31, 2023, to $11,800,000 as of September 30, 2024, indicating a reduction in unrecognized subscriber and affiliate license fees[61]. Shareholder Actions - The company repurchased 195,190 shares of common stock at an average price of $1.12 per share, totaling $0.2 million[71]. - A share repurchase program was authorized for up to $4 million, with $218 thousand repurchased as of September 30, 2024[160]. - The company declared a cash dividend of $0.025 per share, with an expected aggregate amount of $1.3 million to be paid on March 28, 2025[159]. Future Outlook - The company expects to recognize future revenues related to remaining performance obligations totaling $2,323,000, with $352,000 expected in 2025[60]. - Future advertising commitments totaled $2.7 million, expected to be paid during the year ending December 31, 2024[104]. - The company plans to continue capital expenditures for content assets and property purchases, albeit at a slower rate than previous periods[170]. - Future operating results will depend on the company's ability to grow its subscriber base and expand service offerings[117]. - The company has begun entering into trade and barter transactions for content assets, which may impact future revenue recognition and asset valuation[63]. Operational Performance - The company operates as a single reporting segment, focusing on premium video and audio programming across various factual entertainment categories[110]. - CuriosityStream's content library features over 15,000 programs, with new titles launched weekly and localized into eleven different languages[113]. - Direct Business revenue increased by $1.1 million, or 13%, to $9.8 million for the three months ended September 30, 2024, compared to $8.7 million in 2023[125]. - Content Licensing revenue decreased by $3.4 million, or 67%, to $1.7 million for the three months ended September 30, 2024, compared to $5.1 million in 2023[128]. - For the three months ended September 30, 2024, Bundled Distribution revenue was $1.0 million, a 33% decline from $1.5 million in the same period in 2023[132]. - For the nine months ended September 30, 2024, Bundled Distribution revenue was $3.2 million, reflecting a 26% decline from $4.3 million in 2023[132]. - Other revenue for the three months ended September 30, 2024, was $0.2 million, a 56% decline from $0.4 million in the same period in 2023[135]. - Interest and other income for the three months ended September 30, 2024, was $0.5 million, compared to a de minimis amount in 2023[149]. Compliance and Controls - The company’s disclosure controls and procedures were deemed effective as of September 30, 2024[177]. - There were no changes in internal control over financial reporting that materially affected the company during the quarter ended September 30, 2024[178].

Financial Data and Key Metrics Changes - The company achieved its highest ever quarterly adjusted free cash flow of $2.6 million, marking an improvement of nearly $6 million year-over-year [9][19] - Revenue for Q3 2024 was $12.6 million, slightly up from $12.4 million in Q2 2024 but down from $15.6 million a year ago [20] - Adjusted EBITDA improved by $3.5 million from the previous year, while adjusted free cash flow improved by $5.6 million [20][25] - Gross margin increased to 54% from 46% a year ago, with gross margin excluding content amortization at 90% compared to 80% last year [23][24] Business Line Data and Key Metrics Changes - Direct subscription revenue grew 13% year-over-year to $9.8 million, although sequential growth was flat [10][21] - Content licensing and other revenue categories generated $2.8 million, down from $7 million a year ago, primarily due to the timing of content licensing transactions [21][22] Market Data and Key Metrics Changes - The company launched new PayTV channels with MVPD partners in Europe and Latin America, and expanded its AVOD offerings with major partners like Tubi and Pluto [11][12] - The company executed nine content licensing agreements across various regions, including the U.S., Europe, and Latin America [13] Company Strategy and Development Direction - The company aims to continue delivering sequential top-line revenue growth and generate meaningful adjusted free cash flow while maintaining its dividend from surplus cash [9][16] - There is a focus on leveraging AI tools to reduce costs and improve productivity, particularly in content translation and editing [15][36] - The company plans to execute 20 to 30 new licensing agreements over the next several quarters, capitalizing on its extensive library of over 300,000 hours of video and audio content [16][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strong balance sheet and growing positive cash flow, which positions it favorably in the current environment [17][18] - The company anticipates that advertising revenue will increase and become more material in the following year, despite tempering guidance for Q4 due to acceptance periods in licensing agreements [39] Other Important Information - The company repurchased 173,000 shares during the third quarter, totaling 195,000 shares under the repurchase program announced in June [26] - The company ended the quarter with approximately $40 million in liquidity and no debt, indicating a strong financial position [16][27] Q&A Session Summary Question: How does the company view monetization of FAST channels versus subscription growth? - Management sees significant revenue and promotional opportunities in AVOD and FAST channels, emphasizing the importance of building a presence in front of the paywall [29][30] Question: How is the company balancing investments in new content versus bartering library content? - The company aims to premiere multiple programs weekly and believes in acquiring quality content without excessive spending, leveraging its extensive library [31] Question: How is generative AI being utilized to reduce costs? - Management highlighted opportunities in customer service, editing, and content translation, with plans to expand language offerings using AI [34][36] Question: What are the plans for cash utilization and dividend outlook? - The company plans to maintain its dividend and explore accretive acquisitions, focusing on advertising and licensing opportunities [41][43] Question: What are the catalysts for top-line growth? - Key growth drivers include licensing agreements, expanding PayTV agreements, and enhancing positions in FAST and AVOD spaces [45][46]

Company Performance - CuriosityStream Inc. reported a quarterly loss of $0.06 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.01, and an improvement from a loss of $0.14 per share a year ago, indicating a significant earnings surprise of -500% [1] - The company posted revenues of $12.6 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 8.67%, and down from $15.63 million in the same quarter last year [2] - Over the last four quarters, CuriosityStream has surpassed consensus EPS estimates two times and topped consensus revenue estimates just once [2] Stock Performance - CuriosityStream shares have increased approximately 346.2% since the beginning of the year, significantly outperforming the S&P 500's gain of 21.2% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.01 on revenues of $15.4 million, and for the current fiscal year, it is -$0.15 on revenues of $53.6 million [7] Industry Outlook - The Film and Television Production and Distribution industry, to which CuriosityStream belongs, is currently ranked in the bottom 27% of over 250 Zacks industries, suggesting a challenging environment [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact CuriosityStream's stock performance [5]

Group 1 - The focus is on value-oriented investment ideas, particularly in mid/small cap companies, as well as orphaned and unfashionable investment opportunities that have potential catalysts for growth [1] - There is an emphasis on contrarian investment strategies, with a willingness to explore various sectors if they are deemed cheap, while also being influenced by momentum and quality factors [1] Group 2 - The article expresses a beneficial long position in the shares of CURI, indicating a personal investment interest by the analyst [2] - The content is presented as the author's opinion, with no compensation received from any company mentioned, highlighting an independent analysis [2]