CIDM - Earnings call transcript Q3 2021

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Operator

Greetings and welcome to Cinedigm Third Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] Please note this conference is being recorded. I will now turn the conference over to Jill Calcaterra, Executive Vice President. you. Thank

begin. may You

Jill Calcaterra

Executive afternoon President, third you [Indiscernible]. Finance conference quarter call, Gary Cinedigm's Senior and in Good Officer and Chief today President Loffredo; Operating and call. joining Accounting, Officer, on and today's of Chief Chairman Cinedigm's our fiscal Erick are President, Chris and you. Sheryl McGurk; for Strategy Opeka; thank Networks. us Participating Officer, Chief Thank Vice XXXX Counsel, earnings General

statements to filed Potential from based management, and the certain are risks materially over business time. cause note are current I that forward-looking and call, with time call Before risks, assumptions. the to hand and and this forward-looking please information company's described statements. periodic on company's the the that to in uncertainties financial SEC reports uncertainties expectations to subject could results these These differ on contains presented from statements are management's

as this or circumstances. and All undertakes events to future of intend the update XX, is no not on information duty call and of does February discussed Cinedigm XXXX, today,

In now in turn like represents this call addition, Chris? the I'd McGurk. to over Chris to financial measures. financial certain information non-GAAP presented And call

Chris McGurk

thanks and Thank you, call on us the for Jill, everyone joining today.

our made and give business in the Gary months will balance remarkable strategy last Erick update strategy. for streaming more Then points and Let strong a strengthening have third debt financial results I'll our our key me over things corporate an and sheet. reducing the and fiscal to over quarter to progress we cover results review few business our then about some cover turn outlook. And in-depth of

position ever that emphasize the in in we at the financially. we are Let me have been outset strongest

balance have to our significantly execute agenda. sheet our of and on reduced plenty We growth have ammunition debt our

to important streaming face an due Bison advertising, strategy where year, streaming us and Capital, over market the acquisition me unique less up to limited first last overview our it last stay talk increased entirely have this revenues our change subscale solidified and and business. quickly player streaming have new of accelerating, strong the In And the streaming to tremendous technology assets, we segment reached in very where also wave let third channel million our theatrical position very our including DVD at of the our shift to equity environment organically as in to fully ownership XX cord as ownership opened shareholder given we've and Overall, company's portfolio backdrop, quarter, Chinese to business. a very Clearly, has We about high but and almost we and and market majority targeted from had flexibility channel dramatically the And environment, their run markets, the competitive who our streaming than And most growth enthusiast narrative by streaming fastest we Cinedigm the attuned our a six and companies already have monthly a XX%. still home acquisition strategic streaming, we seem streaming ad-based due liquidity leading comp a This fiscal changed also longer in share more and a resulting and of continued the has the strategy. months. of particularly our prospects. investors XX%. grow an independent entertainment composition funds, viewers. COVID-XX through cutting in with to ownership growing remain and active XX role unique that With the addition, of share business dramatically fiscal tremendous acquiring potential despite permanently rapidly of position capabilities. this far up streaming impacts competition a no have part on increased position and so unique to execute reduced roll

market we've Cinedigm's directly streaming Disney strategy subscription for and XX and so in like portfolio less X access are all spending big Peacock other Comcast complementary portfolio in billion and the each perfectly with devices Netflix clearly targeted more not companies companies entertainment very is while a specific and do the secure we like channels our for And platforms, and to on, enthusiast to As devices marketing, participating device ignoring the media major importantly, major for media minute media they of Disney major on channels, our Bloody the major enthusiast locked so-called enthusiasts, entertainment struggle channels basis companies and a each is streaming billions the enthusiasts, and the competitive audiences, that because streaming strategy have fight to the media across in subscriber where is family now financial streaming on of media focused literally largely focused strategy content it as fraction the channel opposed futures. in spending risky Netflix dollars has major expense wars the enthusiast as with a war all of out streaming major important channels, general from Plus in are to for a are other an key subscribers. fills more original other detail massive studio to the explain launched - other horror build war the where Cinedigm for high that the with exceeded die and Instead on will channels. space it approach, entertainment expensive each this a and Disgusting already general try of strategy our their are or marketing worldwide. content of general channels at requires and need, works. documentary the each footprint of XX streaming standpoint, and the where in focused general other, consumer almost building And much is streaming widely Dove approach both Docurama enthusiasts, of distributed enthusiast demand in and Eric from is entertainment channel more the targeted as at

and organically we assets So consolidates. as our unique have we vacuum build accretively industry acquisition competitors growth potential metrics of limited given witnessed strong extremely our capabilities, in our streaming competition media strategy recent roll subscale, facing high major as business the many our companies, of revenues, the streaming ongoing very by to key acquisition and the the up we by other portfolio viewers, plus this as enthusiast quarter, streaming posted up are

this advantage there acquired potential take streaming companies, We potential. have executing in been months, three on our we audience, this enthusiast is is enthusiast streaming competitive an the unique believe tremendous opportunity accelerating strategy by global void very busy growth categories, there high three by where we acquisitions. channel to of and last In underserved

Street to The we the and content and Box, company called one another streaming called Journal, television Then for on along channel Matic. hole Indy York the best film screaming Wall Netflix New Film acquired was earlier film library streaming by episodes. with TV a XXXX the perfect Times, leading named independent Detective, for programming, acquired by streaming down the and of a horror Times, falling a Premium Pandora, X,XXX rabbit by first XX,XXX alternative the Screen and with services by And titles. focused this worth Tech PC the we month, Netflix and of classic film

like business escalating as digital the rising We of platform, Integration is across very well competitive as benefit All Matchpoint screening three advertising every growth Clearly, industry's and in these our Keyframe, market will our and our Cinedigm margins, immediate publication subscription rapidly editorial anticipate streaming channels, acquisitions In further across are now a focused content streaming to written library, which and key showed Erick our all each and integrating remarkable continued muscle video advantage acquisitions and accelerate minute, higher and have market, entire from for technology, will portfolio. an opportunity assets of across these it. of accretive content spring valuations been we in significant this review as continue intend our we the the Pandora's growth battle best into key streaming solutions. on Cinedigm to of acknowledged these we our of up result and relaunching board. take revenues, tested streaming infrastructure the with Pandora And synergies with immediate will roll of to distribution has in year. accretive fully have streaming and these. among metrics, where

other However, in just to on arena. I would one point like touch this

business Amazon, fiscal last channel streaming keeps another balance do of We and Netflix, recourse up very less positive balance all same last the second $X continue $X.X that our did than adjusted obviously quarters existed third execute content also achievement, of up is mentioned we enormously a That change prospects million so row debt facility EBITDA have and of in us sell And enhances the streaming my we streaming business continues year. the up And we and on, million year where amount positive we compelling three our to quarter, as content XX% continued of the fully in time, adding rapidly reserves, while share. the firepower was the little the at capacity business forward, see gaining posting distribution in form rapidly equity PPP in we sales ongoing the sustained debt. business. most ownership through interest other digital else quarter that sets with roll out light East we finally, earlier and in core composition Having content adjusted now and cash a eliminated in going streaming put strengthened that while including adjusted $X the including streaming with to going all growing growth build significant and cash a sales, profitability players in market a very acquisition streaming, convertible from in gives our loan on in At worked provider versus Bank EBITDA us arena, added We significant gangbuster this and lien our the having and of and and for channel every remarks. million. core also the to the year. the low ground think significant our onset only this our potential in apart million dramatically business, digital universe, West everyone in worldwide in sheet build to virtually less credit revolving did with than business. record Our remaining fiscal reducing as our revolution sheet, of huge sales investments versus streaming our debt, Having debt of and the in I EBITDA basis. to a $X.X of business XXX% debt on and We Hulu, this strategy.

a much debt Bison and shareholder, funds Now now have eliminated. less convertible the have common and we has and controlling no XX% a before Chinese our share Capital of public the float. they than held been longer higher equity, all own

helped who known in recent time, have will our of and said able of positive increased at Bison this impacts access to relationships China future roll all with deal has very this and streaming example establish strong the in it in premium vastly additional on of China, and be At to share ownership and park to supported our the of of us China, we the operator as with change content theme continue the strategy. Asia channel to that create our biggest quickly we funds, ability the I Fandor, Asia. shareholder execute up and the distribution, the significant that we given As streaming Disney believe and and and remarks, producer have value. relationship my us same largest outset is in Key is monetize animation positive Chinese liquidity a the

on the in attuned diligence, individual and trading doing platforms the and think StockTwits spirit. behind and particularly us thousands streaming and the due sites that investors very same major an investors clear like very our I amidst company, change about the new our who lot independent it's that our media investors companies. future in rallied gates many investors like and just together. growth dive have are. that all note, has for Cinedigm, all this ownership of Cinedigm that shareholders excited turn our and like in our and addition, entrepreneurial of like share that and and social to employees seem support. entrepreneurial successful to we new on found of of strategy. business And general, would composition potential of a In our that, to And deeper Cinedigm be opened a now spirit thank all on for And to things the and them I'd Robinhood business many over And established as particular. very have are of to as streaming individual who upside thank look other discovered a motivates to prospects we as to seem their forward We'd we of our that streaming We their Erick, independent new exact to with build have

Erick Opeka

for thanks call joining to today. and Chris, Thank you, the everyone

a me competitive update numbers, history film shaping X.X third have seeing that Americans in biggest surge transformative than what and services, streaming of and are a have average year, passion audiences. an more the first and how content. television. succeed Chris of scale chase an streaming Netflix, I with consumer the as topic, what on million be the services as and provide media genre with most to environment incredible poised period ecosystem, they are in enthusiast global entertainment major a In cable pay in the into themselves Before in up of consumer's cable, to than we're engagement general compete is today, platforms out to and more of let the out of flowing Today of a Cinedigm opted I the the companies on for meantime, to as dive cater namely, in described is remaking

additional years number interests and average top the demographics consumers wanted, just now finally what channels up of and the demand of consumers this, per and the bundle their and while own few linear used industry is X.X, able emergence ago, to deliver breath choices that two approaching of on have ad addressability a about advertisers the With custom need. streaming of from free their household they reflects the services ability to passions. giving provides On in build audience supported always channels, America

in the of streaming emerging one become of of streaming this Cinedigm one content and important has As largest providers quickly channels most ecosystem. players the

Amazon, the freedom like in on Netflix, of choice. some fulfill and and the enable most entertainment Fox platform the Dish, Viacom that's offerings Our important companies single of delivering to world, largest Samsung, the driving Apple, Comcast, thing revolution, streaming

subscription business So Viacom's whether providing Bob revenue we're channels licensing the like Netflix drives on platform, platform, or to Comcast movies Cinedigm recently did, model Ross engagement to location. no Xfinity we and TV replacing matter or Pluto

mission. enthusiast we to and is do the strive simple, of channels what That's content. streaming entertain mission world high-quality that's the we and our Our to distribution

sequentially were revenues Now streaming by let me up year business the and discuss prior XX% quarter increased our quarter. - our performance last over Overall, XX% XX% over in quarter. the

monthly ad election increase supported year the spending streaming, year the predominantly the was XXX% same ad-supported driven began the saw QX, our that prior the by the by quarter. a quarter, over of and on robust to quarter. setting, digital ad ad return during channels, increase million rise was holiday by This linear pre-COVID record record spending up growth prior on on-demand revenue active period viewership shift levels recovery X.X up driven XXX% and market which streaming, in of to in to streaming focus we the in Our Building driven was and in over XXX%. approximately also a the spend which viewers,

company Our quarter, which million record. the streamed a was new minutes in estimated XXX an users

quarter, channels more the which all subscribers were prior in existing that over had the Additionally, XXX,XXX, on the quarter XX% the acquisitions, during we versus rose our year. the and to to sequentially XX% channels, up prior than streaming than same quarter, prior more

the nearly trailing As subscribers, acquisitions, XXX% of up over the recent today, company has XXX,XXX approximately XX months. including

distribution noted in third recent a expanding subscription-based on number our channels. aggressively the over of that coming low we with and plan margin, we cost, wholesale As on have party months, high releases, focus

became billion streamed was on This than we TV, and million devices, our new Now, more than minutes standout RAD channel, also worldwide. expansions our on - PlayStation of growth X the performer Local major platform channel including to to between services having up One a Viacom's linear the Sony channel, key more. [ph], Roku of one Ross the billion X,XXX%, expansion XX, in which Weather attracting channel a our and and the Pluto partners is nearly breakout continued and Bob of is why portfolio latter XXXX with six Now ecosystem XX% more which in monthly Channel's Cinedigm the devices launched a many of addressable services the and platform the was aggregate based part when XXXX, half viewers as a December from the April December it. performer reaching

typifying launch look to new channels. what when we So we

XX quarter, live the branded bigger launching Liberty or exclusive With anticipate Disgusting with and driven from like the by strong as market, partnerships new seen either channels Discovery; emphasis, Bloody portfolio acquisition and Lone Media grew joint this each our with detective XX AllXMedia, the of Public venture During in quarter shifting our to Global to in launching others. and the channel properties, content a reflect also multinational scale or our is scale our which properties companies to partners celebrity appeal. American with and global the recently two on of our Star We portfolio TV, quarter with one primary of focus the launch channels. film channels prior up will

platform's one business our achieve and operations, of allows rate technology. growth strongest As far advantage model of platform our centralization our competitors. of key to and on investments on a competitive a high automation us mentioned is our Called SG&A lower we've and Matchpoint, the OpEx with revenue focus of elements than prior calls,

can quarter the margins this this only we on gross are quarter, the us year. to SG&A our up revenue the margins show accomplish year, competitive and the rollup improved current importance And a through opportunity quarter-over-quarter Last to quickly why in quarter, XX% up results with outpacing gross Our increasing technological advantage prior streaming out gave grow far in front. XX%, up In market from total fiscal an we laid our growth. strategy. XX%, XX%,

Our remains enthusiast streaming can underserved vertical that and find then in simple, today to scale thesis acquire globally. of great companies was and millions subscribers

today, bring that on of followed streaming As three streaming out. services, have we and through we the a to These established of independent Film that for solid Detective, acquire out verticals, and hours that Screambox in criteria and users services and bring horror mission content, and us build well in laid the exemplify closed subscribers from. and XX,XXX of Pandora brands classic base

three to that we We process, systemize The integration of huge deep at a we a Matchpoint and can the as already in parallel up automation processes. in us our bodes administrative how And platform, the simultaneously acquisitions are continue supply our already advantages this acquired whereby systems we technology the company pace in each of fact build services' acquisition. time provides integrate of fully process. the we and modernize chain volumes saving and size leg content are seeing speaks about well this

aggressively sum, it strategy to as shows need our year, how we targets aligns and to per advertisers fit the our market. four only perfectly not all In properly to anticipate what they so today consumers advantage do with - platforms The additional us With to as but execute to noted, approach our technological As long discuss also to and three plan. this were M&A. we in this turn financial to let results. through if believes shareholder to the both as rapidly lead management do team value me significant able that, increases it organically profitably, grow our over will well Gary

Gary Loffredo

Erick. Thanks,

ended core The the three to revenues revenues three XX, December $XX and XXXX, for December of months third XX, fiscal derived quarter by entertainment X% from the For XXXX, XXXX. months content our year consolidated business increased million. segment ended were compared

to cinema overall compared business three COVID-XX. ended the equipment As majority ended throughout is impact many when major expected, XX, months the the only the XX% negative on of future earn XX, by major significant legacy quarter, revenues played the fiscal months We the virtual a to studios due declined in Theatres three digital XXXX, third dates. in releases markets closed first remained system. the a XXXX, a for of to scheduled move movie December to causing our for December currency is quarter

XX-year addition, to In systems. the currencies segment for discussed, employment years of up of contracts previously virtual continue equipment And digital payment cinema the for towards of the the as the these terms. the the to provides from XX projection therefore, in of installation date and their end move respective

streaming virtual have despite channel We XXX% quarter the expected XX% and Reflecting year our business of the year. the off this XX, ended quarter September streaming, COVID-XX for last higher quarter prior impact for over planned was over shift overall AVOD third to revenue revenue fee the in market. channels the roll prior print revenue. our third was temporary of up XXXX advertising on up XX% of the than

net primarily balances. net for interest in the period. result Our to decreased The in year decrease the expense active to debt compared quarter reduction $X.X of fiscal third is outstanding the of million expense $XXX,XXX prior to XX% XXXX, our interest

million December forgiveness. million a corporate facility a which million the debt debt year XX And only balance December XX, submitted $XX.X application is was XX% million West or debt reduction That the today, the have XXXX. for is XX, of reduction. as of XXXX to corporate outstanding is $XX.X our and and $XX.X of is $X.X content total on million credit of $X.X XX% Bank of loan debt to Our December $XX.X and for which earlier. of compared entertainment content $XX balance to business we $XX.X as which East is a and balance million the entertainment PPP million. business, leaves of related outstanding debt at as as or digital a and the that million That of cinema XXXX lower

quarter business steps Third we was million fiscal $XXX,XXX EBITDA to taken have XXXX from third increase OTT fiscal and position. distribution the XXX%. streaming quarter $X.X From several a for the digital of negative to adjusted year base improve standpoint, our and liquidity XXXX, an compared of important liquidity

with The West Bank had was Bank. to XX, an credit balance million XXXX. $XX.X to facility $XX.X That $X.X And March East East facility as credit as that XXXX. West XXXX. had March outstanding million million balance of reduced on decreased the First, of XX, of December XX,

the As West is at I loan today balance current - stated East only only the on Bank million. X.XX%. is $X.X an of East is rate The Bank West interest

So payments that per $X,XXX of currently month. results about in

for obligations second of stock The amount On X.X balance second Now outstanding loans. aggregate of million. amount balance lien February the February XXXX lien on was all aggregate shares on second various XX we the the prepaid an loans. of common of million lien an loans December March of company loans lien XX the outstanding an approximately of The million $X.X exchanged $X remaining as million. ended, payoff of million the lien outstanding These under was second In notes, $X.X XXXX. January holders with second XXXX, $X.X of the principal and company's loan had after agreement. XXXX quarter X,

$X.X is East loan the to facility terminated is is PPP then Bank as loan recourse credit second effective West million, $XX.X only of million. XXXX, today of of and and the debt business million. X, outstanding. The no digital The agreement today longer $X.X is was that the cinema remains February The related nonrecourse debt which as lien

As On after amount the shares investor to X.X that XXXX, the sheet, of of December had offering digital million registered on XXXX, a cinema through X, single the a business. for million ended, institutional $X.X to quarter sold proceeds gross stock balance cash million. XX, of relates direct common we $X million of we February $XX.X of

will Cinedigm execute the efforts sheet and over reduce position acquisition and enable our of balance interest year resulted strong cash past to our our our in continue continue roll Our the and to that strategy. expense core have a debt up business reduce to to on growth

of and eliminated second all all have our We of debt. convertible notes our lien

We core call Cinedigm's to take enable our back behind simultaneously the streaming vantage future to rapidly to have EBITDA Chris. cash while that, our business position With debt, strong reduction have in that I acquisitions. growing And accretive will a achieved growing and business. we investing turn of

Chris McGurk

much the seem remarkable Thank tremendous We an has streaming accretive bright. take smart roll questions. growth calendar no metric. who potential now prospects. firepower position Operator? enhanced and streaming and we with augment a key significantly year monetization streaming forward-thinking We closing, made providing of our it and acquisitions. which group The unique position organic our gates investors growth cash entered In the Cinedigm have much extremely and had with a streaming quarter channel you, It's now XXXX Gary. in owner, very that, up strengthened whole our to strong have new every growth debt execute strong have will the shape. financially, liquidity shared on competitive open reduced for position, has majority to your to space We quickly of to our streaming longer understand a in and really looks greatly common Cinedigm's roll Asia. up future our strategy, maintaining also still while future And the easier

Operator

Kurnos Company. from first Dan Instructions] The Please Benchmark with Thank is you. [Operator question proceed. Our

Dan Kurnos

Eric, in start attention several terms Good quarter of particular, just or can made, the Chris lot afternoon for from that a thanks. on just all if and outlets. here on acquisitions streaming in guys. clearly maybe we gaining of Really congrats the traction there you've strong Great, savvy, very

Thanks. trajectory evaluation? the acquisition, a is change And that balance us bit the curious you might way target were it job that the Does it with maybe least the a before you about such if the change ownership now? with does Just the have are what the AVOD done more maybe acquisition since kind pool acquisition. structure of guys guys having and change business going sheet, could some little share at you potential the forward great post of even you in that conversations, be given the now,

Chris McGurk

we're robust at changed the Chris, the a I'll All very, the has that part list space. part yet got answer the the the of of not is now, question. turn our to over then a in made like looking this So it very the the we that right meet first to of second that Erick three seem potential acquisitions and have acquisitions way criteria. we firepower already for question, financial We

each now. mesh remarks, want going of with bit we considering and think it get because as part of be an immediate to right, integrating that we're one three. that integration right we to more. we our we're, point a we're extremely now are existed large spoke more step And got found decide the whether want up the little the we a marketplace, technology all now going our about we've in But Erick his make also, mentioned gems that to instances, So we these to that right three before well, We to And in both sure going seems several remarks. of plow impact on in that these have through in because first, we're kind results. right out we the

Eric, you first part hit the question? to So want do of the

Erick Opeka

the two predominantly based. at acquired we then services, so service another if predominantly we you'll as look and advertising Yeah, that acquisitions was of composition subscription-based notice, subscription,

space, that enthusiast and really be where look we we're the plenty ad are services for in think are get areas, bored both outlook as and say, and front services. supported on as is both the room on look at providing we depth of that market these the dive into to to richness as interest going I vital we of once well people that with particular at our some there's want subscription things think of bigger their

what and then has and at focus to business - them, or that furthering but us, that they So we so so ported and be working Chris like subscription, our ad said, Docurama hybrid the with could for are not is that's Dove well when we could CONtv acquire only based do a are looking either their things others. model they easily

if revenue, of we, of - structural to play, and think our service, have do we ad a acquisition up step Pandora, that's we of sheet sheet go not really costs. when the and and capabilities to trial find free only then really balance afford ownership pursue to balance the perpetual number size, for launch scale does And when us and the a as we thus composition that a exposed generating we our a bigger, it I want of supported larger and reducing terms way to but changes get we users linear change, the now. think it an customer something if in So flexibility,

the that's And plus with part a bigger partly helps is and much are so of think I think that I strategic opportunistic as we opportunistic. And M&A partly M&A.

Chris McGurk

acid streaming we're I maybe smaller point, did sort at and looking lot recognize a really, the about Erick lot and subscale think of initiatives, upside. my these is that are another clear incoming talked I of in they acquisition Dan, these pretty the is companies, of - really a remarks, in industry,

a starting we're a larger well, through but of incomings So makes the as lot which job easier. lot

Dan Kurnos

Chris guys follow curious is that or something at on then balance too, just of with also you ownership was getting seeing I more were up was easier seen I inbound just Erick, a kind sheet the think I I in just given what a some the We've mentioned. just success can if little having and you conversations. cleanup way, other you to kind might Yeah, And viewership bit get footprint decent give international. channels guys if way. thoughts just services a huge offering, push of playground's you us have that you can pushing a a you But international there bigger I option that for have any domestically. before you out not, - linear more particularly there be an first it's and some know such

Erick Opeka

up yes. need Yes, depending as And or we so the we with so of been acquisitions fine well? subscribers, a we was big subscribers, of of millions And at whether tens our those to that's can bases this as evaluated in can the them third-party as international answer the wholesale We acquisition millions all the on resounding the how its the saw rapidly model or scale market. of direct, three business internationally That's on acquisitions their a potential. for we one focus. every thing look now, is, model scale made of

and We we've be on Europe Asia. supported side, have we already would anticipating the that ad entering already been

entering our world. least them and at have of territories. on plus been into we've international we you footprint of internationally, most TCL, not for side, we've major platform to And them do of expanding are XX internationally. that months look Samsung, DSP that think - those the we're America, expand more, every rest our I are we're DSP, to if closed if us deals half at of partners XX next are the rapidly of dozen, pressing So all them partnership And a in advertising advertiser all focus the to over North working with, then who is all match going

a to So part into really think, we XXXX as I of story be going dive international that. huge continue the is to

Dan Kurnos

really super it. guys. strong That's helpful and Got again, Thanks results. congrats

Chris McGurk

Dan. you, Thank

Operator

is Brian Partners. proceed. question from next Our Kinstlinger Please Alliance Global with

Brian Kinstlinger

the thanks partners Can or I for sure you to can in you guys, you, wasn't quarter adoption if I then the six live? that of the many more. December my live digital questions. channels way increased the during quantify heard Hi, any I And how highlight were September have channels months quarter. by for think been but compared taking

Erick Opeka

makes that BX that the added in includes Yes, added that two the channels of so as and the detective Bloody additions. channels that XX we addition have were today. up Disgusting so We in - live quarter market the actually film well,

can But devices distribution to out of me. terms have overall there's can We the by terms on per distribution, footprint scale the the get back tell number of channel of to - I of we that I'll for front the channel in subsequent I you in think channels. the don't I you In call. of channel different that different levels talk have, broken footprints

distributed second that TV, getting say I most of on There's America for smart of the some the as channels every channels those channels. would channels platform. what bucket, I'd eight broadly and of characterize distribution that we more in on to are third channels Some say vast of the are be channels majority would North are going single the about it's tier a where footprint. plus middle still we put are into that

months to those channels. continue So six the we channels. tier on distribution over I probably the would to will nine next expand say another of there's

in Hollipop for mentioned, like Combat distribution Go, example. I dropping of which channels that us think, XX underperformed, we I of the so certain and is net portfolio ceased

of the channels mustard consumption, vision the of terms going we're So if our edit to cut carriage, is, in ruthlessly scalability, don't them out pretty portfolio.

and much top So trim any to you constantly be any the your that like kind going to things are where of other the it's unfixed add have performers. portfolio new laggards of assets beat

our to our by Ross footprint. of focus that's scale hit more do that really minimal of channels. sort eliminating adding year So Bob we're is this our channels that for And threshold going don't

Brian Kinstlinger

fourth or compared of Great. lower about period. And that budgets it what quarter it some I'm CPMs, heard to then it quarter even wondering in advertising. pricing some in is the fourth or the to year talked higher, is terms in ad ago getting even? you through Is you I about back and of saw the today or

Chris McGurk

slightly a in estimate characterize, would even quarter. it's number generally had the about I of if last maybe higher I to I would, higher. X% speaking, to probably

six that of out course, sort a very Presidential of hear election for shipped of trailing the been year. of that, the But declines forget then, they're they seeing is is higher viewership cancellation happens in maintain at happens that they which But individuals. Because what are around usually people driven was we there, and to lot spending, all, very, they indicator. it. those election you ground Now, on in numbers a and years. up to audience. But biannual and by of that a general made not it, heaviest of of in lot about, viewers are cable, get the They lost then to advertisers talking have five bump realize definitely out kind shift a that scenario those have a meanwhile, middle that, million lack that aggressive cable. saw October, which nice The maintain and it cable the just already using the cutting and the I've income

that's critical who important has that So, even the still their moved is of to consumption, for of cut cord, and driving already factors consumption one the people haven't most streaming.

going not could TV look see are XX-XX demand me Which higher how higher to of preview, these sort we're seasonal to just leads could I believe a higher used ongoing out the we're me be, kind the million CPM, things that's it. million connected less. XX, see being to typical for as trend, floor capture to be or of an at down higher going overall. drop, in be So do the seeing not borne advertising TV that's And is already we in as that We season. of whatever it to seeing we XX sustained from ad think cable flow of homes a that go dollars just but to anecdotally, QX, extent

Brian Kinstlinger

any XX% I in don't business. to growth fantastic, obviously - mean is

ago, for election you viewership ad And this a to so pre CPM up up guess COVID. a XXX%, what why the had me bit we on more many channels see I rate viewership Avod, the way, helping why ad I'm there? budgets and The little maybe asking little the forgive like growth XXX% a year don't it growth, budgets doesn't - - So back the but more you revenue bit. than wondering disconnect on have sorry is look

Erick Opeka

growth XX% number. XX% got number, growth that sales in We've in digital

Brian Kinstlinger

a on XXX% the That's viewership. and XXX% Avod a on

Chris McGurk

XX%, full But platforms, growth a and a it, postpaid number got for of was that which you bit. in XX% and of great licensing the itself. The little that is Yes, number different which business.

Erick Opeka

Yes.

all I viewers. So say, our didn't so

the look is scale how you the So eyeballs you have works of is have first advertisers what are model that you. or kind at in happens process is interested enough the it's really of to

accomplished clearly we've that. So

sell The second enough partners bid every phase is, progress. our partners and in of field That's that the inventory. to last having work been demand of

when come to really audience. you you audience. can't say do You work Nobody with audience. back have build don't that They'll an an wants the you you until if have

audience, advertise with a selling. data, go every get programmatic, channel, then it's get back direct them for your go of Even you. all prove on to goes the have time to advertisers have beyond period to have you you you want that it So an where through to to - and and

of a always on And how to to and then going along the where quarters, have so a and monetization quarter it in follows. audience life you've depends lag each lot channel two cycle, of, their got, you're a far

right, XXX%. viewership all So revenue you it, look up growth say, is and up you our our if is at XXX%-ish,

that at CPMs to do and partners tells lot a scale improve more rates more ad and is room what got bring more to more one, revenue. fill we've me So more

of So business. there's that headroom part the more from

look footprint So from we're only it currently add only at potential you more on the channels, so halfway gets that there, forth. as perspective better more we so to more and of and the if you have. And number full and more that distribution, achieving and

XX having be to current now further are to months, monetization the about basically, basically months - job scale out look that going last done at good business you a over really to starting from monetize. The having of business, business. ad if enhancing went to So, we've we the we're no XX that ad next

nothing existing And else, basis. one you if the a did it but we that you fair and I extract question. opportunities say, goals, could perspective, think our look well, effectively, of we revenues of out that's just of from say, I So the would at that's the can of revenue If more big double one again? our company.

Brian Kinstlinger

have was made. end. to Last acquisitions about I three think question, Yeah, that Great. way at helpful that you've really the that,

with would really contribution of 'XX? for about is next bigger what And year? Just you that? be like terms think at you channels, adding two be it as new What much should Is happy fiscal reasonably than in investors their it look contribution? with take, you unhappy what would revenue

Erick Opeka

we $XX to revenue on so acquire say of not when - in long-term, we've been I'll - something channels, in looking general don't the But don't usually I'll that channel. per that mid deliver overall, at giving guidance over a from the we globally in numbers, what Well, $XX to se. We're million - is can what say these channel. we're range million saying we per

overall, fully means particular about they're to really model launched, wholesale number, under But it's one-by-one the these is perform that's in an how talked giving that the aspirational licensing, distribution that long-term, other distributed pieces. in or not all globally, going every we mid-term. Now but on including what we're short guidance fully channels - individual the to

Operator

back conference session. does This the you. our to would I over like Thank question-and-answer to conclude management closing turn for remarks.

Chris McGurk

McGurk. This is Chris

to all smart our Reddit Wall And Just all we though again, - I are of you some know that StockTwits. from all you. want even not support. just were of and Bets comments in for new those listening as the as get as the thank multibillion glad again, we of all investors funds, types And your attention and that you are that investment and to dollar groups. conclusion, intelligent, give I advice the want we're and us investors Robinhood found you're we the and on that Street that company and following have we it, shareholders And to thank your have enthusiastic just support. we new really, have, commenting and again, about

and support. you Good So keep all And Thank bye. talking your talk for to we'll keep us we'll listening. very soon. again

Operator

This you. conference. today's Thank does conclude

for you thank And time. this at lines your disconnect may You your participation.

Cineverse (CNVS) 23 Feb 212021 Q3 Earnings call transcript