Financial Data and Key Metrics Changes - For the fiscal year ending March 31, 2022, the company reported consolidated revenues of $56.1 million, an increase of 78% year-over-year, with streaming revenues leading the growth [6][7] - In the first fiscal quarter of 2023, consolidated revenue was $13.6 million, down from $15 million in the prior year quarter, primarily due to a $4.8 million reduction in legacy Digital Cinema equipment sales [23] - Adjusted EBITDA for the current quarter was negative $2.2 million compared to positive $5.5 million in the prior year quarter, largely due to the absence of Digital Cinema equipment sales [25] - The net loss was $6.1 million or negative $0.03 per share, compared to net income of $5.1 million or positive $0.03 per share in the prior year quarter [26] Business Line Data and Key Metrics Changes - Streaming revenue increased by 98% to $8.1 million, driven by a 131% increase in ad-supported revenue and a 43% increase in subscription revenue [24] - Overall content and entertainment revenue was $12.2 million, growing by 38% due to organic user growth and increasing market demand [24] Market Data and Key Metrics Changes - The company reported a total streaming audience of approximately 89.6 million monthly viewers, up nearly 300% year-over-year [39] - Total streaming minutes rose to approximately 2.31 billion, an increase of 68.7% over the prior year quarter [39] Company Strategy and Development Direction - The company aims to achieve $150 million in annual revenues within two to four years, targeting at least 50% annual revenue growth in streaming [26][30] - The company is focusing on four key internal growth initiatives: Cineverse, Cinedigm Advertising Solutions, Cinedigm Podcast Network, and Matchpoint 2.0, which are expected to generate over $50 million in high-margin revenues at steady state [15][76] - The company plans to continue its acquisition strategy, having integrated seven companies in the last couple of years, which has significantly increased its global headcount [31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving sustainable profitability by the end of the fiscal year, despite macroeconomic pressures affecting stock prices [81] - The company remains optimistic about its growth trajectory, with strong performance in ad sales and streaming revenue, indicating resilience in the face of industry challenges [21][82] Other Important Information - The company has fully eliminated its debt, achieving a strong balance sheet with $12 million in cash [27][11] - The legacy Digital Cinema business is nearing its end, with expectations of minimal contributions to revenue moving forward [29] Q&A Session Summary Question: Follow-up on monetization strategy and ecosystem evolution - Management discussed the complexities of the advertising ecosystem and the importance of targeted campaigns over programmatic advertising [49][50] Question: Content strategy and monetization of the umbrella channel - Management highlighted the focus on high-quality content and the importance of new releases to attract viewers [55][56] Question: DMR revenue contribution and advertising monetization - Management indicated that DMR is expected to contribute around $10 million in revenues, with improvements in advertising monetization through their technology [61][64] Question: Reception of the Elvis channel and distribution efforts - Management reported strong performance for the Elvis channel, particularly within the Amazon ecosystem, and ongoing discussions with major platforms for distribution [67][68] Question: Cost structure and operational expenditures - Management explained that increased operational expenditures were related to content investments and integration costs from acquisitions, with expectations of achieving $7.5 million in annual cost savings [69][70]
Cineverse (CNVS) - 2023 Q1 - Earnings Call Transcript