Curiosity(US:CURI)2022-05-12 22:38Financial Data and Key Metrics Changes - In Q1 2022, revenue grew 77% year-over-year to $17.6 million, with direct-to-consumer (DTC) growth of 49% [9] - Cash burn was reduced by $19.3 million quarter-over-quarter, ending with a cash burn of $13.9 million [9] - The company ended the first quarter with a cash, restricted cash, and available-for-sale investments balance of $85 million [9] - Guidance for the first half of 2022 was increased, expecting revenue between $38 million to $40 million and EBITDA loss between $35 million to $33 million [10] Business Line Data and Key Metrics Changes - The company has invested over $188 million in original productions and acquired content through the end of 2022 [16] - The original production cost is believed to have an on-screen value over 5 times greater than what was paid for it, with over 10,000 titles in the library [17] Market Data and Key Metrics Changes - CuriosityStream operates in over 175 countries, with a focus on factual content in various genres [15] - The company distinguishes itself from competitors by not engaging in the escalating content spending war, focusing instead on monetizing content through multiple channels [19][20] Company Strategy and Development Direction - The company aims to achieve positive cash flow from operations by Q1 2023 and maintain a minimum cash balance of $50 million [11] - CuriosityStream plans to reduce expenditures on direct paid marketing while increasing revenue from ad-supported services [24] - The strategy includes expanding FAST and PayTV channels and enhancing audience engagement in AVOD and audio [23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving positive cash flow and highlighted the importance of a strong cash position [13] - The company views its business as having three primary building blocks: a scalable streaming platform, a robust content library, and effective promotional outreach [15][25] - Management believes the demand for quality entertainment that informs and inspires will drive revenue growth [26] Other Important Information - The company is not currently planning any capital raises to support operations due to its strong cash position [13] - CuriosityStream is focused on maximizing the performance of its streaming platform and content while building promotional funnels [25] Q&A Session Summary Question: How do you differentiate between the value of library content and new content for subscription acquisition? - Management believes they have built a critical mass library with over 10,000 titles, which serves as a strong subscription acquisition tool [27][28] Question: Can you provide an update on One Day University? - Management is building the library and has added it to the premium tier, seeing growth and value in the content [33][34] Question: What surprises have you encountered in the ad-driven portion of the streaming business? - Management noted they are still in the experimentation phase regarding content programming for FAST channels [36][38] Question: How do you think about user retention and engagement regarding potential price increases? - Management sees room for better alignment of offerings with consumer pricing and is working thoughtfully on any potential increases [44] Question: Can you discuss your ability to attract and retain tech labor? - Management highlighted the company's purpose-driven culture and flexible working environment as attractive factors for talent [46] Question: How does your DTC strategy relate to marketing efficiency? - Management has refined their marketing approach to engage communities effectively, leading to stronger marketing efficiency [49][53] Question: What is the visibility on advertising and sponsorship revenue? - Management indicated they are on track for their best year ever in advertising revenue but did not disclose specific numbers [57]