CNVS - Earnings call 4 2023

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Gary Loffredo

Good afternoon, everyone. Thank you for joining the Cineverse fiscal 2023 Fourth Quarter and Year-end Financial Results Conference Call. Risks and uncertainties that can cause the company's business and financial results to differ materially from these forward-looking statements. All the information discussed on this call is as of today -- encourage you to read our disclosures and the reconciliation tables to applicable GAAP measures in our earnings release carefully as you consider these metrics. With me today are Creteil on our streaming business results and operating initiatives before we open the floor for questions. the to turn begin. McGurk now will call Chris over to I

Chris McGurk

Gary. that our sheet in remaining equipment and diminished. Thanks, assets balance business The adjusted our obligations as

cost, period, reported We revenue revenue $XXX of XX% business that million equipment up streaming our million, and during legacy digital same of However, recognition. streaming year-over-year excluding $XX.X in our business. cinema core up digital

only had we $XXX,XXX quarter, digital revenues. in This cinema total

entirely revenues about the The to which timing QX $XX.X licensing, much sales, AI million, and level learning. look digital library very expand significant quarter-to-quarter of by position us key machine paid line. to our addition In subscriptions, added well an as more the of advertising, premium transactional, factors, technology different between technology streams continue our in QX and to and leveraging content we and services up seasonally to revenue portfolio

reduced by no also debt over debt, our million. having $XX We long-term have

to then of many and acquisition new made happen. content Our $XXX,XXX, many, Cineverse achieve Produced [indiscernible] sustainable over million [indiscernible] and for among margins on Verifier that for of initiative content channel. operating Live, Saturday profitability success $XX just and strategy basis and costs, improve earned and II others our the significantly financing streaming reduce a

completely the internal acquisitions Ultimately, also be initiatives and loved, businesses library are content close of tuned and who growth in time, nonfiction coming valuable might of successful, our highly for most for through months. profitable a horror finance all to to to of deal signing one for brands and our We and also the more also these our Stay to family a flow. table. faith is rights able distribution goal and cash recognized all bring the channel the content television on and in of

and goal. now profitability. to With sustainable to is the is area our generate overarching sustained is improve company's of second the plan debt to strong new partners, and This by costs year of a XXXX. streamline cover content and our I pipeline end achieve initiative technology fiscal no channels profitability want long-term The margins, long-term premium

and million have to we cost optimization. content will deal We now scale approaching. our portfolio us SG&A the come now as brought years, acquisitions over vastly savings operating which than savings content, via savings costs Screambox, channel renegotiations multiple full $XX made now the acquisitions These company and operating same the Digital more opportunities that are we integration, annual XX,XXX streaming operating than increased through Rights, X scale. cuts, the new brought that last target streaming we these and these in of integration company Media Dove. more Much mobilized leverage channels, the full time, of from including Fandor, acquisitions nearly At via viable identified hours complete increased of and channel

high-margin speak are late For more new reduced we the example, sources generate side revenue savings with we've since podcasts August, the and to our revenue XX%, efforts advertising on workforce will other come. Erick implementing by our to of in businesses. already to significant

the on shape. seeing side, to efforts the take However, results of we're our cost already

higher an margin increase Digital sequential last business, XX% legacy our than gross fiscal fourth points excluding last was of versus our in year quarter. quarter our quarter, This XXX core Cinema, the of much basis and

from number. and a SG&A versus expenses higher decreased year operating last direct Our revenue

further. with very to that We it improving committed are are and pleased progress even

have on the as lower-margin already can channels the of growth portfolio, higher are our resources is Although we want our underperforming and performers. of higher-margin revenues committed called than increase we have that further. most gross margin most genres streams business, undertake channel in high competitors, percentage it Unlike or multiple streams us in profitability, so to chances, we also competitors we we one sacrificing approach. generally structures To a in that our revenue to deal streaming our of fact, competitively, competitors, end, X focus our only to and of portfolio our the approach some our in cannot allow whereas for to diversity channel have and XX, wide X true just a replicate multiple revenue portfolio management therefore,

undertaking company's and we improving further efficiencies important cost are Another streamline while the assets, margins leverage India. one Cineverse is most our initiative to structure important to of

for talked We industry-leading value is a our cost-efficiency part significant content future have be to platform, creation. Matchpoint deal distribution will streaming of third-party already. TV From also the recent mobile calls a of device partners costs how on about manufacturers. with one already TCL, like huge that and is with our standpoint, Matchpoint, global We're before leverage planning and these technology saving largest us technology unparalleled and

developing machine this of AI, using for As More and size are computer contextual, next-generation be will the more. in to at technology initiative our a continues learning, of we shortly. discovery content investing grow rapid on the news vision creation coming search pace, and enhanced catalog metadata, and

this a high-performing India. outsourced office potentially Cineverse And that the move addition turn move our We in Cineverse India savings, efficiencies could John. in much end, to asset Our the cost Cineverse role this to for team over even Matchpoint is To them India, save in last that of back India convinced X.X the based X in through company, we potentially of years, our going fully in and aggressive States workflows and an can worked Cineverse streamline strongly workflows technology bigger company it already and increase could for Group that having play the dollars. was years headcount United the multimillions with current Kolkata. company's creation the current consolidating believe even be more now in of developed from many operation for the are future. offshore India and with of we owning are I'll experienced by engineers After our we believe that, to Services talented further. the

John Canning

you, fourth the Thank quarter. over XXXX for briefly the by our reviewing and year financial I'll those full Chris. for start results go fiscal

subscriptions. will stand-alone a revenue EBITDA or per year. digital common record a over of $XX.X loss million, provide XXX% extensive year. down from of Cinema in March Chris portfolio, income of a of Growth legacy to increased was year prior XX, share year. For new revenue operating $XX.X prior XXXX, the million the by Equipment contributions long-term or detail for and new and prior net year television $X.X This to loss in on attributable driven Adjusted last of an film most XX% to from fiscal market common in shareholders 'XX. was million to more $XX from of the XX% $X.XX to the was on shareholders diluted increase in increased the user year revenue increase million in basis, increased subsequent of and advertising fiscal million increased decrease drivers fiscal net expenses diluted acquisitions business. on operating a behind year. accounted year we and expenses, and demand growth winding revenue guidance increased of mentioned, a per primarily primarily compared in prior as compared versus of made fiscal in Erick due negative over the total channel an EBITDA of which an by year adjusted result $X.X caused inventory, related XXXX XX% the revenue performance, million, continuing and streaming of in participation, operational and attributable the above, fiscal well and of growth, related per our Total year operations fiscal was than and due the Cineverse's to the exceeding distribution our reported XX% primarily to made launch revenue million investments, ad consolidated including growth in Content expanded Content companies we streaming revenues, X-year the the X. segment expenses distribution, content, as previous fulfillment expense Streaming acquisitions the as prior content Entertainment to $X.X compared organic as DVD Increased to growth, $XX.X result negative connected and paid Net XX% of the including basis increasing $X.X earlier. as to channels year were licensing in X OpEx to continued compared for success to $XX revenue costs, fiscal as million XX% channel increase company's annual for streaming Terrifier and higher million the due share royalties, $XX.X Cineverse support Chris the described million $X.XX in to additional our of financial noted ended Entertainment revenue 'XX related platform manufacturing to was results. the technology

quarter. the to Moving

following revenue season $XX.X For QX. prior QX $X.X QX $XX.X peak consolidated is million as 'XX. Terrifier weaker compared revenue period year of fiscal well business of typically quarter, from million QX $XX.X legacy also the sequential release from QX we the initial XXXX, million in saw a in $X.X million the higher of as significantly contributions quarter of in holiday Cinema X. and fiscal reported the Equipment the prior to million

$X.X prior to compared only million QX We period. $X.X in revenue also million the Equipment 'XX fiscal Cinema saw in year in

Terrifier and rose from and a account, increase targeted in noted, the prior record much $XX.X revenues seasonality points contributions increased As in due historical March of in improvement into theatrical that of XXXX the and basis success DMR acquisition XXX Entertainment of its an improved and over XX.X% by and streaming Chris costs. Content quarter XX% to and looked million, $X.X margin digital operating by an following revenue XX.X% base driven to primarily increased revenue year revenue gross more million, to Entertainment QX with factor distribution taking in to line Content in reductions growth. quarter, X.X% the X. driven

to common expenses quarter, operating million net negative EBITDA compared previously in raising And to $XX.X the in total common to equivalents content million fiscal XX, net lower our on 'XX. $X.XX as June negative had completed shareholders on improved cash mentioned, sheet we attributable acquisitions. $X was We QX additional $X.XX year of Chris dry loss $X.X loss Net an that small per and powder a per We to million cash to balance XXXX. adjusted or we for XX, shareholders from million approximately diluted negative result $X.X capital as $X.X working facility million $X.X financing As of revolving negative million or $X.X and as March of diluted compared million a in $XX.X EBITDA of attributable of share declining revenues. loss proceeds, million. maintain equity in announced key share adjusted

our progress to felt debt.Moving We was targets, can for have important financial the guidance. community it gauge to in We so specific long-term to investment no more us quarters better the come. set

million We company our XX, consolidated million. and the for year financial have $XX XX% narrowed compares outlined year This content announced $XX ending year and refined revenue. gross of XXXX, consolidated objectives entertainment of with have current in $XX revenue previously fiscal expects of fiscal guidance and representing total and XXXX. 'XX, million fiscal or revenue fiscal or with representing The XX% for revenue, and and EBITDA content March 'XX, $XX more margin, revenue entertainment with revenue million consolidated of between or adjusted year

compared fiscal which we of the XX% between business. and margins year technology, XX% and business includes for following gross content, 'XX, on Equipment year Cinema as Equipment sunsetting and XX% investments impact ongoing While gross legacy fiscal negative Cinema in in 'XX of anticipate the margin expect of some the we distribution, to margins legacy

that Excluding business, was margin XX%.

make the our fiscal continue QX realized consolidated reduction on to of be ongoing progress the our maintain we anticipate the full that will OpEx and and range 'XX. in keep the XXXX. between guidance among assumptions a expected positive We year fiscal these factors, which the fiscal 'XX, on, Please the that, business, to conditions, loss turn With are in over adjusted of 'XX, assumptions legacy I'll year's current EBITDA revenue of Adjusted cost effects that certain investment of million Cinema to -- making in mind existing floor excludes with EBITDA ensure company's prudent plus business. Equipment savings business. legacy million based million We Erick. other is market digital percentage line the decisions in to aim $X.X in these existing initiatives fiscal to compares an and which $X $X on basis to at for are growth

Erick Opeka

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

on key First, strategic out. results business John to briefly let the be see me some just I'll discuss top-line then climate, initiatives streaming discuss we'll current the and focusing laid provide that streaming and our business guidance

climate. So regarding the current operating

later the prevalent provide As climate growth-at-all-cost for we away of strategies shifted last to very were has the purchase valuations. take fun streaming, in our companies and and is from This all true most arena, on took on specialty to subscribers. been Netflix current companies decade. dollars debt loads that streaming many Hulu companies and has macroeconomic for This assets advertising know, at peak considerable as also the

and our to believe X I approach to diversified enable have deleveraging. margins combined also with to savings on come. and include taken to and in of spending superior strategies our years the now face back dollars peers, will are paring focused the us cost outperform streaming, as ability year achieve had discretionary However, this and have continue versus companies this, shift, all a the to Ad hit, technological consumers on subscriptions. In to are fiscal microcap has

released example, revenues fiscal days QX down calendar of QX. few were Media ad a ago, For an for X.X% Standard or Index average just during the our

did due ad ops the prevailing part able expanded we of However, distribution CPM we're single-digit the a do market. of efforts significant to rates. able while see were and the over and control advertising, team, the increase XX.X%, greatly drive where margin platforms it, by the to ad Matchpoint the growth we on an control directly growth we performance impression negative our industry's we And our efforts, outperform to where third-party don't technology,

subscription market enthusiast non-correlative are the side strategy our conditions. business typically and Additionally, portfolio macro the to and on of

rate. grew horror we our softer subscriptions service subscription Screambox despite XXX% growth a overall year-over-year industry example, For

rates Our enthusiast lead been as consumers are brand ultimately that loyalty thesis and that our has the is engagement and verticals. churn loyalty, fandoms in proven personal lower in of will invested long-term to order-based

approach world especially streaming operate, ever margin for enthusiast a those with in we going up, properties, competitors, to So thrive in of from are but be are to can which superior our our challenging it technical ability, prove they that conditions company means that immune portfolio sum leading overleveraged. to along no diversified can our abilities

business Now the quarter. some let's discuss during highlights

attributed quarter First, services up [indiscernible] quarter be our billion, approximately Kudo, over $X partners prior expansion the with directly to XX% This recent could in like XX% and sequentially. rose to the Tubi, Roku, year Vizio, quarters Amazon. of and

video with led watch original Total increase content, in prior-year with this along library the in to and subscription directly $X.XX increased million, an and over to streaming investment our approximately engagement and premium growth. content, subscribers services Additionally, exclusive line times, the representing expectations. increased impacted company's of XX% quarter,

by and had mainly noted As Terrifier around this back which expected impact the number. of the partially of the by subscriber offset XX,XXX release. growth growth earlier, X% sub approximately The top-line decline particularly third-party affected to XX% the low-ARPU on those, on was X an subs, a seasonal was minimal revenue Screambox driven in only

composition In -- to added to by high-potential so concepts year, we year. both which launch quarter, rebalance the eliminating we in optimize properties. portfolio, to the the calendar the new portfolio. During mix, we've far, adding current unprofitable GoPro any continued while we Fubo of and Like our to later look the streaming hope high-profile

quarter, During some adjustments made portfolio. our the own to we

where it's live First, for down door to thriving. and a the channels. the linear a continues we AVOD an Channel founded wound as format. SVOD successfully on service candidates on X We linear

change improve larger portfolio cost we allowed We service. Tecan increase profitability service more to Anime, crush DMR TV offering. pros, also operation came with the anime year the retro retro the to evaluate to we This our streaming where with throughout through to acquisition. performance shut half ended to us down and merged much CONtv it And our the the channel margins. We're going the needed which and overall lastly, improve continue and core for management ops relationship popular

We on date a in fastest space. deal take most rapidly their we million and to bring than business classic dramas. had modern $X downloads with of continue the into Arts After We've on podcasts also entered the to the to brand/or with than XX expand shows, we're shows, bed Redracular, the fiction our becoming audio of with networks a one in the XX franchise more podcasting Electronic space the XX important world. top Cineverse more one subgenres and emphasis a reached now the across quarter end, billion novel, audio

category. expect We coming more see major also that this in become many to brands scripted launches and podcast year. like the We've a player

launches top in was by XX this noted, Mero of fiction than new Dead including X over Society our business Watches Apple's the the we year, forthcoming We're to Property As shows of last come. picked top shows launch with show Living scale and to key Mayfair and shows, Georgia inter-language had going more the to from Spotify's continue charts. we podcast and many more

talk Now revenue margins and EBITDA gross strategic let keep we X-part year. the the me company's improve about in deliver new just while plan to fiscal innovation drive positive growth going,

side, continue both our significant the On and including to to add to add family I channels as channels, is the new earlier, find our noted partnerships, of content goal Cineverse. of portfolio, to revenue launch new

So technology added Entrepreneur Krofft's GoPro, including Sid based streaming at TV in earlier, brand, with library, service with the sports some Entrepreneur far, great namespace new action Entrepreneur on & cultural its Chris Vanadash, Marty New as magazine, channel noted and pioneering brand. in Fubo, brands partnership African-American-oriented partnership entire we've FitBedvill,

to, bring highly have brands. of additional instantly alluded several immune and which Chris IPs we valuable, As channels, recognizable all

our initiative third-party key business. advertising is up separate scaling Our distribution and

in sales and high only partners it great in team, CapEx and we making need weeks very offering channels with channels to podcasts going distribution. expand light as with third-party this is and effort. bring monetization This for help be some business ad new place announcements put and operate is to goal build market. coming but this We've the we're a and we're the Our in to incredible that to margins, on not on specific interest seeing

Third, subscriber the expand base we're Asia, and to going to our family and safe year focus on quarter, to continue just this verticals.

content company's verticals reduce goal remote growth finance off-balance of which for by these risk Chris Our to to the expand and capital. is the the as vehicles will concept, acquire mentioned, utilizing, need sheet,

marketing. focused of content Our well mix of bringing massive -- third-party media to outlined new OEMs subscribers is streamers, hardware a peers than last mission users attack. XX% deal to bigger touch access have they needed Classic the our from this continuing Turner Cineverse. focus X,XXX customer partnerships MAX, broad-based we're ROI-driven will acquisition we to why users platforms, Hulu with to be TCL the drive as expansion driving being Since of pulled such major a of our find more on as on hours is of recent strategic shows can't Disney+, to as Fourth, and model movies, from choices of shown our exactly under of

our perfectly already innovation. Launched of breadth. One technological last massive want to and content library last just terms this to Given and continue we're XX is technological September, a volume to mention strategy. commitment executing in service streaming suited we're top prowess, on our point I

the and out something smallest, capabilities infrastructure the While than we features. more most build scale moving of years to on to of X chain, time their next figuring from our largest are how peer spending supply we're generation ago, digital and solved companies, to the

generation talented streaming engineers of and with to who on streaming and team of solving the build experience, AI. technologies are scientists the a learning team search, includes Our discoverability focus next personalization data utilizing attached

the We wait and as an and the Q&A. movies service movies the tell home. for we're deeply is to on we've experience magic year. can't With rooted that to that, on it bringing open Cinema the Our of long-term DNA, experience to show and later employee working experience this let's our up you operator, make what collective at that's using in been simple.We and company goal themselves. and want unique laser-focused the and shows fun is

Operator

with [Operator Kurnos Instructions] from Company. of The first Dan line question is the Benchmark

Daniel Kurnos

The is the first question just acquisition you around guys for content strategy.

directionally, if you was on the as But do that that. don't for comment, how obviously, of Chris, willing sounds put additions incremental I there's to competitive Terrifier it, guys raise. to you the you process. much bidding know way are at So And a that some is least it X.

why just the about can realization? outbid your through So and expected maybe if winning competition just flow can spend it that guys you at you ecosystem the the ROI on talk And bid generically, price? timing

Chris McGurk

thank Well, a those up all questions wrapped but lot were you. of in Dan, that,

studios Of the or major involved So the as had noticed Terrifier I've spend-to-box did I is campaign in big at. film career, the and things at my raise. mentioned company, a in the marketing raise. my remarkable involved performance big box rest $XXX,XXX chunk a more in and ROI office high across independents that spent industry. that of of marketing denoted and never and small, and I work viral the on a Terrifier in it such a got had across $XX in I marketing zone X a we been been probably remarks, million XXX movie, it the films X I the industry, And of was our all such both probably ratio. the We

were the So everybody remarkable that economics about industry. just by those in are noticed

fostering one. where were on a the a -- -- We there promote this having movie ROI lower a movie. and achieve than So we're movie results okay? and reflected ended we to franchise, stepped we're each we're so situation a up. than we Terrifier doing for But able on did more each up what remember, X. a is X for bids X, lot and But that competitive we in paid Terrifier Terrifier achieved we bigger we By what package

to have impact Erick streaming mentioned, fall, I Screambox. and And Terrifier X its Terrifier next a instance, was upside from described, our we'll X. for on teaser For biggest channel, it, we're reissue as going the

and on that's Terrifier XXX% Our a up stuck us. were to real for subscriptions and X, Screambox, they've attributable annuity directly

which Erick we're principally a ROI essentially we a all think to these than once. is diluting business, issue is I big And streaming every is our to Screambox. our said, the to a most drives the We're to if the the be even reason And together of do upsides to going acquisition this projects, So that channels company that trying now mentioned like strategy traditional as we the some forward which out away did willing we're timing to because XX% go why channels, so for in partners continue important factor mentioned, we single make. I bring thing bring also will of do subscribers important on have without equity distribution that Terrifier came time, to that to finance don't and through this where we it figure these our kind higher project really right in that budget and most we we target opportunities off-balance-sheet drove that at to to markets doing ways financings and our think the this. outside X content I acquisition enable of service of us to vehicles premium give more in

Daniel Kurnos

annualized savings. exactly the would certainly, on it. I comments if Chris if in don't for savings the meant the called helpful. point. And been looking don't inflection then know out flow-through your I full year timing. a $XX I efforts, on Got John, that next that That's what cost think right million be I just for we've you know caught

figure line recognizing go-forward look contribution of I against on the in savings growth you've we that a drives cadence 'XX, and this wrong. savings if from and the that that as basis, those at? general, fiscal have the But into just next arrived top stuff to the much how EBITDA new organic me versus kind correct year So of or

John Canning

Sure.

cost the to speak savings first. me Let

So million is savings through realize the $XX our fiscal initiatives. expect terms to of the total we based what on year SG&A in

some certainly, we we new in will processes. cost against commensurately the that be and revenue-generating savings as grow, we'll investing continue as of invest However, that to revenue folks go against

the our for be the goal in of cadence, will that's this it terms but year year. throughout So

The your you second of me? repeat that part question, for could

Daniel Kurnos

some the revenue new against That encompasses stuff I'll in guess, I of wanted you new also, the and contributing initiatives investments it, drive revenue-generating just pretty John. And just much last to then understand I but of outlook, savings. aside. balance one, step to G&A the the the

Eric, on I the -- thanks the for Just marketplace. know for color

you the talked something sort Matchpoint for in marquee for are industry super know anything? the a guys about too. attack You lot, I in headline, waiting of

to think be So about the is way that there for anything might kind of on specifically? Matchpoint

Erick Opeka

Sure, sure.

think that I -- quite what about and to best of what we with the operating combined really think it one supply is, an of So system talk think But way I gets almost does. of about when Matchpoint things it it more it is the the seem can is sometimes this chain Matchpoint, to think like as what for streaming.

you video language technology, the with of think to which of amount or on TV large largest second and for about use create the new amount other at like manufacturer interfaces, you're end-to-end users, That's model is to things an Matchpoint Samsung. the it's As operate working we're a of an incidentally that TCL, it after can So to of content. it the of why do most right? solution. for next-generation scale. sets And scale to reason The it's compelling that how interactive designed experiences part been platforms really globally for going incredible partner processing data new makes one user

to be data. amount audiovisual need process video able a You of tremendous to

video the happen on to PhD researchers work that the it side. for so team and big that on data big data be these engineering on decade built our turns out NCR Just ago problems products like a

the pretty adapted this. really rapidly advantage So to technology take we've of

are to use while is extensive to some the third-party elements compelling deeply trying to to search and to ideal figure find one learning metadata. box tools out pretty tools other work. out more points how of a And libraries so most We're doing partners there language basic to captioning get machine just encode

market So opportunities things finding And easier. are our ideal to we're lives tools of that the we doing that generated interested initially built the that some we're have level that make players in. big really

that's going that be already rapidly, and for opportunity of pretty others, having we significant and say, we're right the like So would TCL given I announced, and a just very think conversations we've some us, to now. relationships

and So And if technology decade. been X where have capability processing for it, -- we've around it's we you some investing to been that's opened a a around almost really, forces even in think I up weren't about opportunities about really come large this talking years, market imminent. over but a months is And needs for making market of product we've years, X know contemplating mentioned amounts around it the the scale last ago. video data Chris few something we years, endpoint that of

a it's pretty So that. exciting on time

Operator

question next Alliance with Brian Partners. Global The from line the of Kinstlinger is

Brian Kinstlinger

It's this think Can expenses consumer to strategy and profitable and the traffic educating the contributor? to drop from be Cineverse, in content that offering? the before marketing what is 'XX. and/or revenue there'll of about early great contribution be about you entertainment rightsizing see material the is in you how long talk the And a

Chris McGurk

Bren. That's point Eric. Thanks, a for Sure.

Erick Opeka

Sure, sure.

a Cineverse, this think about an that amount channel the with has -- content. thesis several So The of scale of we've needs different if because phases is it you to right, be really incredible gone launches. product through

and So the that is into Phase content, viable talking beyond of one, number we're product a a product about. getting the market mission base just that fulfills having X minimally getting the and

XX that so, been which we've over for is So last working in on to first X.X X that's from going title count. the is the the top ranking or the quarters good phase news

fulfill of and game-changing Now we've we're a next-generation promise so. is user innovations revealing capability few we've the lot and title what service, basis in working that which quarter on about, interface to talking the the major interaction that got which over search of right, and some been that the the things we're going tools or on next a other be

build that So it. And distribution. then was piece, that second with capability think, of of that we piece combined it to the piece on

get us Our product to and there. and for about strategy doing more paid Cineverse about OEM partner strategic less partnerships marketing, is the it's out

adding get us be are that way partners We people. more Vizio, TCL, to rapidly we think announced for front So model a we've is service partners couple of the early more in to to and of with a mix. going that

marketing we'll the doing close to probably fiscal QX, We the in later But things. paid traditional will our be do and year other QX. that calendar

meaningful say back be or to up of as coming QX, through -- QX service fiscal QX these should revenue the would scale. year I QX, getting So the of at progress this phases contribution half we

have more that's dramatically also the channels, be that have be content having To assets anyone the the right, market, We more first to We that's have the will other some use we more doing scale than offering. to single in tools biggest to it. we me, things that thing, and else choice, almost people think value differentiated. proposition, to the up for

Brian Kinstlinger

And a Great. That roughly quantify CPMs percentage you advertising is headwind was what super is? it how quarter? helpful. much Can for of one in assuming the

Erick Opeka

on we're that it most content a Avengers So the the prior making being we I'd -- others, it niche specialty was the making of and call have evolution The -- -- quarter, value we've player. content. been and was not in the services from what

have been of the and growing platforms Samsung lot a market, others. driving really major with but our brands and especially So like in stream recognition streamers, -- the

we've also years. established in is over we've we the have and concentrate, the ourselves -- CPMs last as our made on significantly. game investments actually improved tremendous it That upped X.X So actually

CPM of X take their major ad floors did a lot We XX, the our to XX. this team. and can rates. We've new them a of to up January year. the also we actually of January bucked run A of raised is and We in year. get. one trend We what the raised set companies worst advertising they normally reset times basically

sales as new ad audiences Head really We of a great a company. in with the player, brands but ourselves good establish somebody wanted to data. not quality who and have has good We low-tier as

a quarter, so during actually the did as results revenue specialty that we quarter, because during increased player. to were opposed and as a and And simply premium CPMs players we on our value and we the we just established aggressive

in the most the So year $XX CPM against higher through blend the from rate direct our holidays, of a we the of of see 'XX year. to going when direct during much CPM, XX year, ramp forward, XX I going back think, the campaigns will the this half $XX half in sales you're CPMs as to you get to back

And bullish get our and CPMs. pay other features you pretty on innovation can't and about advertisers I is on So the thing other that CPMs for capabilities feel platforms.

think So couldn't are are of platform, things. developing, capabilities as in especially one that has other Those a and on around yield kinds features that to things Cineverse property you that quarters. other those platform roll be as features really to to viable of we're I the and the optimization going advertisers a we benefits to really ad imagine and is, find become impressed out starts coming just any the in market, the think big if I

Brian Kinstlinger

really ask a follow-up. helpful. if But I for That's can

in a sounds posting long the CPMs, Your you. one growth, posted quarter growth. rationale accounts like digital the and only exceptional business that's for you a has year-over-year streaming not for this for had that been which quarter, seasonality? slow of very time But slowest was it growth XX.X% rate, If this what

Erick Opeka

are to Well, in where deals And advertising. rely have are X keep then of advertising that we mind, there the clarify to the so control inventory. side, There third we we're deals where deals Sure. we on inventory. where generating sell parties on types

that opportunity on were have players a about they platforms Most were the that the of inventory, Tubes, their scale the more think you not we near deal room we in a for we grow. who if hit with more There's we're So to lot low are growth volume world, platforms at just to we the compared presold sell saw. upside. the so QX. players more scale, on the us, others and didn't Those see of Plutos, the advertising. saw anywhere Bigger to

net-net, -- our conditions, or ad I control it So the those and them Acro more back that the double number think upselling high of teens in will high more -- towards we market we were selling. don't pie I shifts we front but me, sorry, have on digits exact saw as than in -- if -- be more

Brian Kinstlinger

clearly in fiscal your you timing and That talk results? clear. the 'XX in you impact the makes Can that more meaning. And lot of releases it might Terrifier general Maybe how and then X. timing, about a X actual discussed

John Canning

Yes.

-- formalized we're a got October to but December frame haven't as add schedule, Terrifier. theatrical do for X well and we the about of we've probably recall, between mentioned, last formalized it haven't And I X, X for reissue now it. October, We think Terrifier which more releases will on first because release we October, didn't and quite material going you really we to we talking we the time we're what Terrifier where when released had know

right iconic franchise we and or to what got and art Boris we've awareness an We've Freddie now are has of a know Jason lot who deco Now that core a got. great comparing Kroger. character people

So calendar we're year, setting fourth really X next maximizing the X And have releases reissue, or calendar release in quarter. focused year. of the following on our first in that VOD theatricals and theatrical up the probably we'll of Terrifier more quarter day-and-day

Brian Kinstlinger

then Terrifier limited where releases I releases. be will other of those And not. see instead national you'll goes And initially or that than it take

John Canning

understand. don't I Partner,

Brian Kinstlinger

the mean that have limited so I should what escalations, sorry, I'm I use are the we you but or about. a Yes, theatrical. talking will China now, is for nationally it release, Terrifier take some really, term widely versus New be...

John Canning

every release basis. Yes. We case-by-case a on consider

now out we so film of that of our virtually on out kind the machine the in Terrifier take Terrifier that we a nothing how got X,XXX X, It's screens. huge advantages I think on said, I is with our like one can getting on As to we figured turn competitive results and marketing been X.

in go and will called would been XX with too I've I subscribers films. for between on we on screens. subscriptions can creates channels, which works and for I be long saying I've fit doing in X, probably any us, forward. film set that leasing to Well, got it screens. think a screens. core the and is viewership drive schedule an do how and that on screens think wide probably the X, that And Terrifier fall will that to industry X, we're on we one marketing. is the didn't going said, XXX We've X,XXX film viewers advantage the big have competitive be that out reason out particularly other that great Warrior X,XXX we So the King been and in reissue, quoted you X,XXX to to think our since spend -- animated maybe And to to haven't for the annuity out go Terrifier we trying Terrifier the be I as the and the is that figured industry, in we have in if primary theatrical money a in this, and we're out and going all business business going

think I into model need now. more is raise equity did the we that to So reasons we've because put which we of got why great a the content one model

Brian Kinstlinger

from back come sounds has about Great. quarter, revenue about of Last your little it. kind talk third think as bit. part is seasonality how you Erick's guidance, high-level how time about a revenue business it should the you the the you've guidance that and think the first given question, you remarks of quarter Can the but seasonality? think strong about we this Clearly, just third maybe

John Canning

Yes.

of I year. next very this the think percentage quarter a -- just is quarter terms that's similar of quarter specifically terms in in of

quarter. is as third not in they're our that that The the as far content between there's strong by the them, disparity quarters, fiscal to quarter. in except and both business, the much other say business quarter our strongest fourth for And not streaming me

bigger obviously, streaming performance our revenues. in business of some on give historical percentage better our you you So of information a the because the maybe we give sense our to our And distribution of that more quarter-to-quarter become update streaming [indiscernible] business content can we has a bubbles.

You way you should quarter. at next much same this at looked look probably pretty quarter the in

Operator

There you for no time. are at question. questions your this waiting additional Thank

to the I'll for the management pass back team closing So conference any remarks.

Chris McGurk

additional call with questions Julie any reach you this speaking Equity forward to Yes, next Group, thank our or firm, on to you the Chris. And for us feel in very Well, Investor our have. please might all you to today. We joining out much. again quarterly Relations free Thank all you look is August. Milstead to

Operator

That participation. concludes your Thank you the conference for call.

disconnect now may You lines. your

Cineverse (CNVS) 29 Jun 232023 Q4 Earnings call transcript