Curiosity(US:CURI)2021-03-24 00:22Financial Data and Key Metrics Changes - CuriosityStream's year-end 2020 revenue was more than double its 2019 annual revenue and over four times its 2018 annual revenue, with Q4 revenue growing 70% year-over-year to $11.4 million [9][28] - The company reported a gross margin of 59% in Q4 2020, down from about 64% in Q4 2019, due to increased content amortization [29] - Overall operating expenses increased 16% to $22.2 million from $19.1 million in Q4 2019, with Q4 EBITDA loss remaining relatively flat at $15.5 million compared to a loss of $14.8 million in the previous year [30] Business Line Data and Key Metrics Changes - Paying subscribers grew 50% year-over-year to approximately 15 million, with significant growth in direct subscription revenue and international subscribers [11] - Direct subscriber count increased by nearly 100% compared to 2019, and the lifetime value (LTV) increased by 48% while reducing the overall marketing budget year-over-year [13] - The company began recognizing revenue from sponsorship and brand partnerships in Q4, contributing to overall revenue growth [19] Market Data and Key Metrics Changes - International revenue grew by 7 percentage points year-over-year, with a majority of direct subscribers coming from the U.S. and bundled subscribers from international markets [42] - The company entered an international distribution partnership with Tata Sky, one of India's largest content distribution platforms, and expanded its subscriber base through partnerships with Russian operators [18] Company Strategy and Development Direction - CuriosityStream aims to capitalize on trends favoring on-demand content and focuses on factual content that appeals across demographics and geographies [8] - The company plans to invest in a significant slate of original programming for 2021, with a focus on expanding its content library and enhancing its distribution partnerships [16][17] - The management team has been strengthened with leadership hires in key areas such as distribution and brand partnerships [22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about growth trends as the world opens up, which is expected to positively impact both direct and third-party businesses [35][36] - The company is on track to achieve its revenue goal of $71 million for 2021, with over 80% of the revenue target already committed [25][32] - Management noted that the factual content space has allowed them to continue producing content during the pandemic without significant disruptions [61] Other Important Information - CuriosityStream completed a follow-on offering in Q1 2021, raising approximately $100 million to invest in programming and marketing [24] - The company has one of the largest streaming factual content libraries globally, with a mix of owned and licensed content expected to remain stable [43] Q&A Session Summary Question: Can you discuss the DTC subscriber trends and the impact of stimulus on growth? - Management noted strong growth in direct service and does not anticipate a slowdown, with optimism about the impact of reopening on third-party businesses [35][36] Question: What is the international revenue contribution in Q4 and its growth projection? - International revenue grew by 7 percentage points year-over-year, with expectations for continued growth in the future [42] Question: How is the company planning to use unique programming to build subscribers? - Management indicated that tent pole programs are key to marketing efforts, driving targeted campaigns to attract subscribers [47][48] Question: How has COVID impacted production, and what is the current status? - Management reported that production continued through COVID, with some adaptations made, and they are confident in meeting production timelines [61] Question: How does the company view competition from new streaming services? - Management believes they are running their own race and focuses on maintaining a premium brand position in the factual content space [63]