Financial Data and Key Metrics Changes - Total revenue for Q2 2025 was $89.4 million, up 4.1% from $85.8 million in the same quarter last year [11] - Adjusted EBITDA for Q2 was $8.9 million, up 24.5% year-over-year, resulting in an adjusted EBITDA margin of 10% [12] - Revenue guidance for the full year is maintained at $360 million to $370 million, with Q3 expected to be roughly flat compared to the prior year [13] Business Line Data and Key Metrics Changes - Content and ad measurement revenue was $76.8 million, up 6.3% year-over-year, driven by growth in cross-platform and local TV offerings [11] - Cross-platform revenue reached $12.8 million, a significant increase of 60% compared to the prior year, attributed to higher usage of Proximic and Comscore campaign rating solutions [11] - Research and Insight Solutions revenue decreased by 7.4% to $12.6 million, primarily due to lower renewals and timing of deliveries for custom digital products [12] Market Data and Key Metrics Changes - Local TV offerings experienced double-digit growth, contributing to the overall revenue increase [5] - Syndicated audience revenue remained flat at $64 million, with declines in national TV and syndicated digital products offset by growth in other syndicated offerings [11] Company Strategy and Development Direction - The company aims to drive growth through execution in cross-platform solutions and a focus on currency adoption [7] - Comscore is positioning itself as a leader in cross-platform measurement, with a goal to break down market silos and enhance measurement capabilities [8] - The company has retained Goldman Sachs to advise on strategic and capital structure alternatives to benefit shareholders [14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth in cross-platform and local TV offerings, maintaining a balanced view of expectations for the second half of the year [13] - The CEO highlighted the importance of delivering projects ahead of schedule, indicating progress in becoming a more agile organization [6] Other Important Information - The company reported a strong partnership expansion with Google, which positively impacted the quarter [6] - The launch of Comscore Content Measurement (CCM) is expected to provide a holistic view of audience behavior across platforms [9] Q&A Session Summary Question: Insights on the cross-content measurement product - Management noted strong client demand and positive feedback for the cross-platform content measurement product, which provides a unified view of audiences across different platforms [17][18] Question: Performance of Proximic - The majority of Proximic's growth is attributed to partnerships within the programmatic ecosystem, along with direct selling efforts to agencies and brand clients [20]

Financial Data and Key Metrics Changes - The company reported revenues of $63.9 million for Q2 2025, exceeding guidance of $51 million to $61 million, but reflecting an 11.6% sequential decline and a 42% year-over-year decline [22][23] - Gross margin improved to 72.3%, a 300 basis point increase year-over-year, exceeding the long-term target of 65% to 70% [5][23] - Adjusted EBITDA was $4.6 million, marking the seventh consecutive quarter of positive adjusted EBITDA [22][28] - The company achieved a cumulative $39.5 million in adjusted EBITDA over the past seven quarters [6] Business Line Data and Key Metrics Changes - Digital revenue decreased by 7.5% sequentially to $39.7 million and declined 32.5% year-over-year, with digital subscribers down 7.8% sequentially to 940,000 [25][26] - Nutrition revenue fell 15.6% sequentially to $24.2 million and decreased 51.8% year-over-year, with nutrition subscriptions down 12.5% sequentially to 70,000 [25][26] - Digital gross margin was 87.7%, an increase from the prior quarter and year, while nutrition gross margin was 51.4%, reflecting a decline due to promotional offerings [26] Market Data and Key Metrics Changes - The company is transitioning from a multilevel marketing (MLM) model to an omnichannel model, which has impacted revenue in the near term [22][23] - The anticipated revenue split moving forward is approximately 63% digital and 37% nutrition [31] Company Strategy and Development Direction - The company plans to launch Shakeology in retail in early 2026, marking its first entry into brick-and-mortar sales [7][45] - A new P90X nutritional line and Insanity branded supplements are also set for retail launch, creating cross-marketing opportunities [8][20] - The strategic focus is on building a diverse product portfolio and leveraging brand equity to drive growth [9][10] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that while 2025 may see temporary revenue declines, it is building towards significant growth opportunities [7][10] - The company is focused on disciplined execution and believes it is well-positioned for long-term success [11][21] - Management expressed confidence in achieving positive free cash flow for the full year of 2025 for the first time since 2020 [6][30] Other Important Information - The company reduced its revenue breakeven point from approximately $900 million in 2022 to about $200 million in 2025 [6] - Operating expenses decreased by 9.1% sequentially and 41.5% year-over-year, reflecting the shift away from the MLM model [27] Q&A Session Summary Question: What drove the higher gross margin in the quarter? - The higher gross margin was driven by reduced production spend and fewer fixed costs allocated to production [34] Question: What is the expected level of selling and marketing expenses going forward? - Selling and marketing expenses have decreased significantly since exiting the MLM model, with a goal to reduce them to the mid-thirties percentage of revenue [36][37] Question: Are there plans to roll out new supplements to complement the nutrition business? - Yes, the company plans to launch new nutritional products in retail starting in 2026, including Shakeology and P90X supplements [45][46] Question: What is the status of the nutrition retail launch? - The company is preparing sales presentations for major retailers and expects to begin retail sales in early 2026 [55] Question: Will the Shakeology product have new packaging for retail? - Yes, Shakeology will have a complete packaging refresh designed for retail, highlighting its major brand status [58][59]

Financial Data and Key Metrics Changes - Q2 sales increased by 15%, with a gross margin of 70% and EPS up 16% [5][12] - Operating income for Q2 was $16.1 million, reflecting a 12% increase, resulting in an operating margin of 25% [12] - Net income rose by 17% year-over-year to $13.8 million, with fully diluted EPS at $0.60, up 16% [12][14] - Cash from operations reached a record $20.3 million in Q2, with total cash and securities at $319.5 million, an increase of $17 million in the quarter [12][14] Business Line Data and Key Metrics Changes - Sales from catheters increased by 27%, grafts by 19%, and both valvulotomes and shunts by 13% [5] - Organic revenue growth was 15%, driven by 8% price growth and 7% unit growth, particularly in ArteGraft, XenoSure, RestoreFlow, and catheters [9][11] - ArteGraft sales are projected to exceed $2 million for the full year 2025, with Q2 sales of $420,000, up from $185,000 in Q1 [6][34] Market Data and Key Metrics Changes - EMEA region grew by 23%, while the Americas and APAC regions both saw growth of 12% [5] - International autograft launch exceeded expectations, contributing significantly to sales growth [6][34] Company Strategy and Development Direction - The company is focusing on expanding its international presence, with plans for regulatory approvals in Canada, Korea, and Singapore by 2026 [6][8] - A new RestoreFlow distribution facility is being opened in Dublin to support European launches [7] - The company anticipates a full-year revenue of $251 million and 15% organic growth, driven by a growing sales organization and success in global markets [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the global business model despite evolving international trade landscapes, with only a 25% average price increase in China due to tariffs [13] - The company expects lower operating expenses in the second half of the year, contributing to improved operating margins [40][41] - Management raised full-year guidance for revenue, gross margin, operating income, and EPS, reflecting optimism for continued growth [14] Other Important Information - The company ended Q2 with 164 sales representatives and 33 sales managers, with ongoing efforts to expand direct sales in international markets [8] - A packaging-related recall impacted catheter sales temporarily, but stocking orders boosted overall sales in Q2 [10][18] Q&A Session Summary Question: Impact of stocking orders on Q2 results - Management estimated that stocking orders related to the catheter recall contributed approximately $800,000 to Q2 sales [18] Question: Sustainability of price growth - Management indicated that while price growth has been strong, future price increases will depend on market conditions and competitive dynamics [20] Question: Details on unit volume growth - Excluding the impact of the catheter recall, unit growth was around 5%, consistent with previous years [23][24] Question: Sales force expansion plans - The company aims to reach around 165 sales representatives by year-end, with a focus on maintaining a balanced sales force across regions [46][48] Question: International sales growth expectations - Management noted strong growth in Europe and a positive turnaround in the U.S., with expectations for continued growth in both regions [50][52] Question: Regulatory approvals and new product introductions - The company is awaiting approvals for several products in key international markets, including China and Canada, which are expected to drive future growth [105][106]

Financial Data and Key Metrics Changes - Revenue increased by 9% year over year to reach $1,340,000,000 in Q2 2025, driven primarily by growth from small and medium customers and performance advertising [6][25] - Adjusted EBITDA was $41,000,000 in Q2 2025, compared to $55,000,000 in Q2 2024, reflecting a decline in profitability [30] - Net loss was $263,000,000 in Q2 2025, compared to a net loss of $249,000,000 in Q2 2024 [30] - Free cash flow was $24,000,000 in Q2 2025, with a trailing twelve months free cash flow of $392,000,000 [31] Business Line Data and Key Metrics Changes - Advertising revenue reached $1,174,000,000 in Q2 2025, up 4% year over year, primarily driven by growth in Doctor advertising revenue [25][26] - Other revenue increased by 64% year over year to reach $171,000,000, with Snapchat Plus subscribers approaching 16,000,000 [28] - Spotlight time spent grew 23% year over year, contributing more than 48% of total time spent watching content [11] Market Data and Key Metrics Changes - Monthly active users (MAU) reached 932,000,000 in Q2 2025, an increase of 64,000,000 or 7% year over year [5] - Daily active users (DAU) reached 469,000,000, an increase of 37,000,000 or 9% year over year [25] - North America MAU was flat year over year at 159,000,000, while unique Snap senders grew by 2% [25] Company Strategy and Development Direction - The company is focused on growing its community, enhancing value for advertisers, and investing in augmented reality (AR) [5][7] - A new distributed structure for engineering teams aims to align investments with business priorities [8] - The introduction of Lens Plus, a new subscription tier, aims to enhance user engagement and drive revenue growth [6][28] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in Q2 related to ad platform changes and the timing of Ramadan, but expressed optimism about recovery and growth in advertising revenue [26][40] - The company anticipates continued growth in DAU and revenue in Q3, with guidance for revenue between $1,475,000,000 and $1,505,000,000 [32] Other Important Information - The company has committed over $3,000,000,000 to develop a vertically integrated AR platform over the past eleven years [7] - The introduction of new tools and features for creators aims to enhance content creation and engagement on the platform [11][15] Q&A Session Summary Question: Could you talk about the early performance of sponsored snaps and the auction pricing issue? - Management highlighted that sponsored snaps have driven significant growth in reach and conversions, with users showing higher engagement rates [38] - The auction pricing issue was attributed to changes in the ad platform, which have since been reverted, leading to improved ad revenue growth [40][43] Question: What is the current state of brand advertising revenue? - Brand advertising revenue was flat in Q2, with the majority of deceleration seen in Doctor advertising revenue [48] Question: How does Snap's approach to AR differ from competitors? - Management emphasized Snap's long-term commitment to AR and its fully integrated stack, which allows for a unique product experience [52] Question: What initiatives are in place to reaccelerate U.S. DAUs? - The company is focusing on enhancing communication features and launching new products to inspire user engagement [70] Question: What is the outlook for Spotlight monetization? - Spotlight revenue is becoming a more significant part of overall revenue, with ongoing experiments to improve monetization [66]

Financial Data and Key Metrics Changes - In Q2 2025, the company reported revenue of $172.1 million, a 2% increase year-on-year [24] - Operating income grew 14% to $30.1 million, representing 17.5% of revenue compared to 15.7% in Q2 2024 [30] - Earnings per share (EPS) increased by 22% to $0.11 compared to $0.09 in Q2 2024 [31] - Paid subscribers grew by 197,000 year-on-year, reaching over 3 million, a 7% increase [18][24] Business Line Data and Key Metrics Changes - Revenue from the platform segment was $80.7 million, up 4% year-on-year, while product revenue was $91.4 million, up 1% [24][25] - Accessories and materials sales increased by 12% in Q2, benefiting from earlier shipments [19][26] - Connected machines revenue decreased by 10% due to fewer machine units sold, although year-to-date sales remained positive [25] Market Data and Key Metrics Changes - North American revenue increased in Q2, while international revenue was $36.3 million, an 8% increase year-on-year [26] - International revenue accounted for 21% of total revenue in Q2 2025, up from 20% in Q2 2024 [27] - The company experienced strength in core European markets but faced softness in Australia [27] Company Strategy and Development Direction - The company is focused on new user acquisition, user engagement, subscriptions, and accessories and materials [10] - Investments are being accelerated in hardware product development, materials, engagement, and marketing to drive future revenue growth [8][30] - The company aims to reclaim market share in accessories and materials by providing refreshed and cost-competitive offerings [20] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the uncertainty introduced by tariffs and its potential impact on consumer discretionary spending [8][34] - The company expects to be profitable each quarter and generate significant positive cash flow during 2025 despite tariff challenges [34] - Management is optimistic about the performance of the Cricket value line of materials, although it currently represents a small portion of the portfolio [22] Other Important Information - The company ended Q2 with cash and cash equivalents of $377 million and remains debt-free [32] - A special dividend of $0.75 per share was paid in July, along with a recurring semi-annual dividend of $0.10 per share [32] Q&A Session Summary Question: Impact of pull forward on top and bottom line - Management noted that the timing shift helped post positive growth sooner than expected, but quantifying the exact impact is challenging [37][38] Question: Tariff impact and mitigation efforts - Management is assessing the overall impact of tariffs and is focused on maintaining affordability for consumers while navigating uncertainties [39][40] Question: Capital allocation and special dividends - Management indicated that while special dividends have been provided, future capital allocation will focus on inventory sufficiency, growth investments, and efficient capital returns [43][46] Question: Update on design space enhancements - Management reported improvements in user engagement metrics and ongoing efforts to enhance the user experience through AI and personalized marketing [48][52] Question: Retail partners' inventory levels - Management stated that the pull forward was driven by retailers' concerns about supply continuity, and they believe they are in a good balance between sell-in and sell-out [55]

Financial Data and Key Metrics Changes - On a consolidated basis, Entravision increased revenue by 22% to $101 million in Q2 2025 compared to Q2 2024, with an operating loss of just under $1 million [4][12] - Corporate expenses were reduced by $4 million in Q2 2025 compared to Q2 2024, representing a 41% decrease [21] Business Line Data and Key Metrics Changes - Media segment revenue declined by 8% to $45.4 million in Q2 2025 compared to Q2 2024, attributed to fewer active local advertisers and economic uncertainty [5][12] - Advertising Technology and Services (ATS) revenue increased by 66% to $55.3 million in Q2 2025 compared to Q2 2024, driven by more customers and higher spend per customer [7][13] Market Data and Key Metrics Changes - The number of active local advertisers in Q2 2025 was higher than in Q1 2025, indicating a monthly revenue increase throughout 2025 [6] - The media business faced challenges due to political advertising fluctuations and economic conditions impacting advertiser confidence [12] Company Strategy and Development Direction - The company is focused on increasing local sales capacity and expanding digital sales capabilities in the media segment [11] - In ATS, the strategy includes investing in engineering and sales capacity to enhance technology and AI capabilities [8][10] Management Comments on Operating Environment and Future Outlook - Management acknowledged the need for improvement in operating performance and profitability, emphasizing ongoing investments in both media and ATS segments [4][11] - The company aims to achieve profitability in each operating segment and on a consolidated basis, with a focus on revenue growth and expense reduction [20][18] Other Important Information - The company has a strong balance sheet with over $69 million in cash and marketable securities at the end of Q2 2025 [22] - A voluntary debt prepayment of $1 million was made, reducing credit facility indebtedness to approximately $178 million [22] Q&A Session Summary - There were no questions during the Q&A session, and the call concluded without further inquiries [25]

Financial Data and Key Metrics Changes - Total revenue for Q2 2025 was reported at $166 million, representing a 13% increase over Q2 2024 and a 20% growth year-to-date [19] - Crysvita contributed $120 million in revenue, with $79 million from North America, $35 million from Latin America and Turkey, and $7 million from Europe [19] - The net loss for the quarter was $115 million, or $1.17 per share, with total operating expenses of $274 million [20] Business Line Data and Key Metrics Changes - Crysvita continues to grow, with approximately 50 new start forms leading to around 50 new patients on reimbursed therapy in Latin America [12] - DERJOVY generated $23 million in revenue, with approximately 600 patients on reimbursed therapy since its launch in 2020 [14] - Efkesa has seen growth with nearly 285 patients across 15 countries in the EMEA region [16] Market Data and Key Metrics Changes - The company expects Crysvita revenue in the U.S. and Canada to continue growing as new pediatric and adult patients are identified [13] - The EMEA region shows strong demand for DERJOVY, particularly in France, Kuwait, Saudi Arabia, and Greece, despite not actively marketing the therapy [15] Company Strategy and Development Direction - The company aims to achieve GAAP profitability by 2027 while focusing on revenue growth and managing expenses [21][30] - The clinical pipeline is being refilled with five Phase III clinical programs fully enrolled or at the BLA submission stage [4] - The company is prioritizing the resolution of CMC issues related to UX-111 before submitting the BLA for GSD1a [65] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing clinical studies and the potential of their pipeline, particularly UX-143 and GTX-102 [6][28] - The company is optimistic about the upcoming Phase III data readouts and believes they will support the efficacy of their treatments [28] - Management acknowledged the challenges posed by recent FDA leadership changes but remains confident in their interactions with the agency [33][92] Other Important Information - The company has $539 million in cash, cash equivalents, and marketable securities as of June 30, 2025 [20] - The company is reaffirming its revenue guidance for 2025, expecting total revenue between $640 million and $670 million [21] Q&A Session Summary Question: Recent FDA interactions and changes in leadership - Management reported productive interactions with the FDA since the CRL and is working towards a Type A meeting package [33] Question: Differences in dosing regimens for GTX-102 - The LNA chemistry used in GTX-102 is more potent, allowing for lower dosing regimens compared to other drugs [36][37] Question: COSMIC trial rationale and assumptions - The COSMIC trial aims to evaluate young patients on bisphosphonates, with the goal of demonstrating a 50% improvement in fracture rates [40][41] Question: Expectations for the Orbit study - Management believes that even if the fracture data is slightly under expectations, other supportive data will still be compelling for FDA approval [60][61] Question: Additional clinical data for UX-111 resubmission - The FDA requested updated clinical endpoint data and biomarker data for the resubmission of UX-111 [55] Question: Financial strategy and cost management - The company is prioritizing cost management and delaying certain expenses to maintain cash flow while working towards profitability [84][86]

Superior Group of Companies (SGC) Q2 2025 Earnings Call August 05, 2025 05:00 PM ET Speaker0Good afternoon, and welcome to the Superior Group of Companies Second Quarter twenty twenty five Conference Call. With us today are Michael Benstock, Chief Executive Officer and Mike Kempel, Chief Financial Officer. As a reminder, this conference call is being recorded. This call may contain forward looking statements regarding the company plans, initiatives and strategies and the anticipated financial performance of ...

Financial Data and Key Metrics Changes - The company reported organic revenue growth of 11% and total revenue of $378.8 million for the second quarter [15] - Adjusted EBITDA rose 14% to $85.5 million, with an adjusted EBITDA margin expansion of approximately 60 basis points to 22.6% [16] - Adjusted diluted earnings per share grew by 24% [5] - The company recorded a GAAP net loss of $5.1 million, translating to a GAAP diluted loss per share of $0.05 [15] - Adjusted net income for the quarter was $49.5 million, or $0.42 per fully diluted share [15] Business Line Data and Key Metrics Changes - In the Insurance Advisory Solutions (IAS) segment, organic revenue growth accelerated to 10%, driven by strong new business generation [5] - The Underwriting Capacity and Technology Solutions (UCTS) segment saw organic revenue growth of 21%, following a strong 37% growth in 2024 [6] - The Main Street Insurance Solutions (MIS) segment experienced flat organic revenue growth due to reduced commission rates and elevated churn in the Medicare business [9][10] Market Data and Key Metrics Changes - Sales velocity increased from 14% in Q1 to 22% in Q2, with a year-to-date sales velocity of 18%, outperforming industry medians [5][6] - The company anticipates continued headwinds in the insurance marketplace, particularly in the E and S homeowners book due to increased pricing pressure and competition [7][8] Company Strategy and Development Direction - The company aims to achieve $3 billion in revenue and a 30% adjusted EBITDA margin by 2029, referred to as the 3B30 plan [21] - The acquisition of Hippo's homebuilder distribution network is expected to enhance the company's market position and provide additional proprietary capacity [12] - The company is focused on managing investments prudently to ensure margin expansion and sustainable growth [13][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver top-tier organic growth and double-digit growth in adjusted earnings despite current market challenges [20] - The company expects to face a challenging insurance marketplace throughout the year but remains focused on managing the business to achieve margin expansion goals [13] - Management highlighted the importance of new business generation capabilities to drive sustainable growth over time [6][13] Other Important Information - The company paid $57 million in earn-outs, fully extinguishing all earn-out liabilities associated with partnerships completed during its first five years as a public company [5][17] - Adjusted free cash flow for the quarter was $9 million, down from $29 million in Q2 2024, primarily due to timing of accounts receivable collections [16] Q&A Session Summary Question: Drivers of organic growth in the Insurance Advisory Solutions segment - Management attributed the strong organic growth to high sales velocity and slightly higher rate and exposure than anticipated due to new business from large energy clients [22][23] Question: Conviction on the expected changes in organic growth - Management noted that the deceleration in property rates and sluggish capital expenditures contribute to their outlook, but they expect a rebound as macro conditions improve [25][26] Question: Adjusted free cash flow disclosure and moving pieces - Management clarified that the revised presentation fully absorbs changes in working capital, and they expect growth in free cash flow to align with double-digit earnings growth [32][34] Question: Impact of Medicare business on organic revenue growth - Management indicated that elevated churn in the Medicare business is expected to continue impacting results, but they remain optimistic about returning to double-digit growth next year [39][40] Question: M&A market conditions and focus areas - Management observed healthy deal flow activity and a divergence in M&A pricing, with high-quality businesses commanding top-tier pricing [57][58] Question: Rate and exposure outlook for 2026 - Management does not anticipate a reversal in rate activity but expects some stabilization in the property market next year [82][83] Question: E and S home pressure and market competition - Management confirmed that the pressure is driven by market competition rather than reinsurance renewals, with new entrants increasing capacity [84][85]

Financial Data and Key Metrics Changes - Quarterly revenue grew by 53% year over year from $12.4 million to $19 million, exceeding guidance [6][27] - Net income improved by nearly $3 million year over year, reaching $800,000 or $0.01 per share [7][28] - Adjusted EBITDA increased by over $4 million year over year from negative $1 million to positive $3 million, marking the highest adjusted EBITDA in company history [7][28] - Adjusted free cash flow was $2.9 million, representing the sixth consecutive quarter of positive adjusted free cash flow [29] Business Line Data and Key Metrics Changes - Subscription revenue was $9.3 million, a decline of $1.7 million from last year but a sequential increase from Q1 [29] - Content licensing revenue was $9.3 million, an increase of over $8 million driven by significant new business from AI licensing [29] - Gross margin improved slightly to 53% from 52% a year ago, with reductions in content amortization [30] Market Data and Key Metrics Changes - The company has entered into new and expanded multiyear wholesale distribution agreements in Asia, Latin America, and the U.S., which are expected to boost subscription revenue [8] - The dataset licensing for AI training has grown substantially for three consecutive quarters, including licensing about 9 million tokens of code for the first time [10][11] Company Strategy and Development Direction - The company aims to have three solid revenue pillars: subscription business, licensing business, and advertising business, with expectations for steady growth in subscriptions and rapid growth in licensing [37] - The company is focused on becoming a dominant AI video licensor, with plans to license more video and data than in 2025 [24][25] - The company emphasizes the importance of its extensive library of over 1 million hours of content and its ability to structure data effectively as competitive advantages [19][21] Management's Comments on Operating Environment and Future Outlook - Management believes the market for high-quality, ethically sourced video and audio content is durable and growing, with estimates of industry-wide needs ranging from billions to tens of billions of hours [14][15] - The company is confident in its ability to navigate the evolving landscape of AI and media, focusing on meaningful information while disregarding distractions [22][23] - The company maintains a strong balance sheet with $31 million in liquidity and no debt, positioning itself as a high-performance outlier amid technological revolution [25][31] Other Important Information - The company paid dividends of $10.4 million in June, including a special dividend of $5.8 million, resulting in a dividend yield of about 6.5% [31] - The company expects third-quarter revenue in the range of $15 million to $18 million and adjusted free cash flow for 2025 in the range of $11 million to $13 million [32] Q&A Session Summary Question: Why is the company in the core media business? - Management stated that the subscription video on demand business is strong and global, representing the core of the company, and that all revenue streams work together synergistically [36][37] Question: What are the expected cost increases as the company pivots towards high-growth licensing? - Management indicated that the primary costs would be related to storage and delivery, but overall costs would remain manageable due to existing revenue-sharing arrangements [40][41] Question: What is the significance of licensing code for AI training? - Management explained that while video is the primary focus, the inclusion of code in licensing is a unique opportunity that reflects the value of owning and controlling intellectual property [49][50] Question: Is the company exploring other types of video content for licensing? - Management confirmed that while the focus remains on building a factual entertainment library, there is potential value in other types of video content, particularly if they are not freely available [53][55]