CSSE - Earnings call transcript Q2 2019 | Chicken Soup for the Soul Entertainment, Inc.

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Operator

Hello and welcome to the Chicken Soup for the Soul Entertainment’s Second Quarter 2019 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we'll conduct a question and answer session and instructions will be given at that time. [Operator Instructions].

As a reminder, this call is being recorded.

pleasure James my IR. of now is to Carbonara introduce Hayden It

James Carbonara

and Financial you, on the update Chairman an J. Officer; me welcome. second venture. and Plus joint update Mitchell, call Executive Thank as With and William quarter the as and a results to Officer review today well are Chief on Chris of Crackle Chief business Rouhana, the

the Q&A discussion, session a open call. there participants the this Following moderated on will to be

forward-looking and statements. refer current results content the make which statements could this are and forward-looking the call. will During this materially. to of call, actual on These expectations regarding release text also are statements based management applies Please cause cautionary differ to subject uncertainties contained to assumptions the earnings and in to risks that the

pro May Plus. Entertainment Soul Pictures Closing forma As XXXX. the XXXX includes the to a completed prior information company Television today's with comments reminder, certain the X, occurred On relevant launching periods make on results call, that venture the on the Crackle’s acquisition January for Chicken will on Sony financial combined Soup the as Crackle XX, for non-GAAP joint GAAP-based management if Date, and of financial

XX, amendment for to the filed July Company's Exchange further one Please X-K/A refer current details. recently number XXXX on and the on Commission Form filed report to with Securities the

Form would X-K If you good it this to had now view not review had to chance time be it.

turn go Rouhana, and Please Chairman now ahead. like William to CEO. I call the to over would Bill.

William Rouhana

and joint with networks of online And results the incredibly networks. in Plus productive financial which the of Plus, us joining thanks Sony Truli Crackle we an creating afternoon, our listed Pivotshare. Crackle, business name and completed had Good Crackle are as James. Thanks and includes Popcornflix, online as We for everybody busy statements, which our venture quarter our is today.

through operate to implementation our I'm cash the of to joint in of Crackle to division. details generate venture, completing go plan So we flow our in results from to profitably the addition And implemented minute. this and a going that

scale more With new revenue, And later. have Crackle ways; on profitability. reduce Plus we generate that and risk now increase the can of we

of about implementation a Now our bit plan. the

entered we cost closed we this number had May the enabled joint -- integration. which Sony, Before savings savings of on which for officially identified venture and with already cost very XX, opportunities smooth a

on organization we that total required As earlier, and filed of forma eliminating July a net the on revenue mentioned the will result detailed estimated $XX.X have million. $XX.X that we streamlined approximately million as XXXX SEC, pro the file and in James costs in X-K/A XX, to annualized

believe in result a just Pus As grow profitability unit we second as quarter will for of with the positive control. the days And Crackle was this EBITDA of the in and future. expected us XX even

The areas in margins and improve costs content four key we SG&A. were and technology, identified reduce to marketing,

with Sony shared Let from working technology this me onto get about as goods to we down decreased to further. consolidate annually technology cost $X sold, a result Sony million, to cost of $XX platform. In managed million break of costs

ourselves fee fixed transferred sharing Plus, revenue marketing, Sony's marketing excluded In content replaced also We thereby and agreements CSSE, agreements agreements Sony. between assets, Crackle we freeing commitments. their with from marketing from

effective brand-related means media of utilizing social marketing. are and as more and owned a operated networks We our cost

we commitments the partners addition, growth. our use from substantial drive which future will near platform marketing received In have we in to

pursuant acquisition revenue we of included Master shared as now library compared substantial Sony the to basis on the guarantees content, a have the to access which In previous content. a agreement to approach for

available that of the screen made Soup networks to Soul Chicken Entertainment also hours film for and television business. we of are in rights thousands being in have media our the addition, online In and

since we that Crackle, to test our with is we've networks. exhibit note the content industry. for screen acquiring been And producers media we on side requests online companies have their job interesting inundated have across rights and media major acquired An the AVOD of with

In estimated expenses area, eliminated roles Sony's Crackle eliminated of operations the $XX.X measures annual and million. the forma resulted business. to teams were applicable corporate overhead not in we These Plus duplicative SG&A reductions SG&A the allocation pro in cost

per $XX of we net forma a To million, million would provide EBITDA EPS XXXX, these adjusted have of pro versus some in context generated reported as outlined and of our a loss all for would've X-K/A. slightly the of more to $X.XX $XX.X all than on diluted revenue share GAAP $X.XX, numbers; been

the our plan released had operating in you results, provided companies the combined the we XXXX. we results first as When of quarter achieved first our at quarter of we to look though

combined entities over net operating million, generated revenue $X.X and $XX EBITDA The profit of adjusted of $XXX,XXX million. of

of press haven't our in we same quarter numbers. the While and actually the and we quarter, because forma provided release half for detail the pro Crackle include you real second thank

at revenue quarter, million. look pro last forma looking would the we would X-K/A using at the in it methodology actual adjusted pro have second we the our And in it and release EBITDA results combining did QX million. way $XX over have approached the calculated When our $X been forma the the with

gears our XXXX to second in for filed today XX-Q. shifting actual Now results quarter

results. much call, to better be I quarter first the we stated our expected quarter previous actual reported results As in than second

And with second and could quarter, in operating than XX we XX Crackle year-over-year days results see have Giving reported we of that, that full results, adjusted sequentially. revenue anticipate today's and be quarter the Crackle. quarter of EBITDA as quarter a the stronger days only the significantly you from third grew should second

and which into $XX.X was go record adjusted of million, EBITDA Chris million. is this will Second revenue quarter $X.X was detail all net for a about quarter more us shortly.

areas; bit and is you strategic not combined begin to we I'm talk from organization our business partners. interest online advertiser's going upfront deals increased of attracting me Let scale The surprisingly now to with three little networks. about the have increased

the our to advantages position solidified allow unique to have one networks leader industry us as this ad now in business. and expand a We will a We've business. AVOD high are continue that growth of the supported the model in largest created with

audience combined the millions owned metrics profitable see monthly XX plus and to ad to We're we valuable on more potential to of begin that network. users a million our For path going our and some believe key growth. We operated networks, rep active our shareholders more on are new investors. sharing nearly

active of served, directly profitability. competitors this of revenue registered and stream focusing users, revenue, users, many though are which on on does our number are is Even to directly the focused translate now and monthly not we managed relates industry users of why the in each ad impressions to

the and our we We average impressions billion had networks online In XXX minutes $XX. our owned had second were X.X eCPMs quarter, ad our and on operated over streamed million on networks.

We companies organization world-class of Verizon. like U.S. the that serviced have a Facebook, group including Geico, Unilever, Lexus, Army our first-class advertisers are Chrysler, sales by and

have of commitment from programmatic well. this we revenue We for advertisers course And have year $XX next. expected scatter upfront sign significant and approaching then and and and agencies million ad as

our content composition combined programming, combined the of our services All our over is partnerships of by XX partners, demographic this over made XX,XXX XX and VOD million on our hours audience. of users, our registered possible

ranges of of evenly have in distributed a Our income from male. to our the half Over years. household audience surprisingly the and excess And gender XX skew across $XX,XXX. our age viewers slightly XX, viewers of

the majority of vast statistic for to strategy, an costs. reported on content from revenue-sharing business Nielsen our interesting the to on last reduces Hollywood library watching basis. There our the of Moving now has Netflix that content the originals. out majority us that made network spend titles a than Netflix time and month pointed rather our online viewers This their was available

library to In XX/XX fact, it's a split, originals.

Sony which is we quite I'm sure joint have access Plus Crackle you large. imagine library, the the Through venture, can

well major media from thousands titles As other with like contracts our content and as Paramount. providers of library screen

screen have and thousands expansion in job the of we with the months XX we've library over finalized agreements across In from titles, have stage hours industry. of of a further, our just memo which programming. charged rights two all include AVOD together deal acquiring the of media of In dozen media

We've our and content and always media distribution our with basis the including business as develop some to obtain networks the biggest. this production plan companies we conversations on we've utilizing will do said. initiated original and of continue AVOD a rights We've exclusive to have by over favorable available online XX world's to on

The couple of this. may help examples explain

an now original to to by and series have is We Broke, make exclusively produced Ashton October. on been original Kutcher executive decided release funded the an available Going networks series will fully This sponsors. Popcornflix that online our this From Crackle as

Python Monty film the exclusively XX In Quixote The on Who making November, Man will we following. Terry is our Don a Killed in years Gilliam a available with VOD passionate network. This make

the Driver to the films. release Star Adam in stars We new with Wars chose of this release timing both since coincide

release film recovered We have much from and this already cost other of media. the of

be to to expect these again. time models both and We able of time repeat

Turning distribution. we'll film XX had titles. television of other the to and business start released By areas, with our QX we end

a classic film Reno, anniversary Helms starring documentary Alien sci-fi Animal Corporate is this the Jean alien Cold Moore upcoming such in have in XXth releases of which September, as Demi We its is Ed starring celebrating October that and Memory blood of year. Origins

and Cage films Thomas October content some and in Grand acquire which on our and The further supports basis our available to Crown exclusive action owned cost-effectively in stars of Nicolas The these Baldwin and starring produced Grammer Jane. Alec made by thriller Vic be December most acquisition networks. was operated others. Isle will Kelsey on and efforts

in to better overall increase media films these will have revenue impact screen expect last year. than We and the other of EBITDA pipeline we perform second the that film acquisitions currently half and expect and

our screen acquisition our online media the enhanced our On by efforts of flipside, content are networks. at ownership

As places and for producers go of AVOD few the meaningful one to TV obtain can their revenue we series. are films

video on production, and production Soup began we second Animal television Soul Tales. form Chicken for short In of the season the

commitments financial cost. business segment we is or and to the producing have for once exceed this limit operational secured sponsorships production risk Our model by that content

reliable development have We XX our full partial with network of content commitments This stages financial strategy pipeline them. series generates minimal for of with sponsor many online or on of a various risk. in business currently

this and slowly develop gives limited with and ability with risk. feel partnership designed We our entities producers the is structure to network media us separate major screen businesses. our to are deliberately preference scale as production feed to moving We quickly more this area it online in

and companies allying use ourselves the talented continue to facilitate major We are by pattern will programming, a established by activity, only cover and we to vehicles other these producers non-scripted accelerate to begin following media scripted series but production not films. production we will with to

we do will for networks. risk partial exchange for and is more ownership by and to We finance the seed production retain The our rights we help of we less that online capability use creating will content distribution net effect will with of media this plan creation that produced. entities distribution be which facilitate to screen while

which by only us of also will to certain be AVOD is these acquisition increase this amount gives the possible of All of for of This guarantee revenue because an a screen the for to media. productions Crackle of entities. ability created product flow

remains force Crackle network sales profit ad Crackle drive solid discussions primary its and sponsors. focus rep relationships to our great division across The new Plus in our they and add areas. a wonderful pipeline, revenue partners is are all doing job a given and ability to business

all has positioned together. tie in of AVOD the areas Entertainment a space the joint for and leader Plus Soup as venture Soul operating our allows to Crackle us The effectively Chicken

One currently about of SVOD by subscription-based up report and the the the the XX% holds common players, Parks number is that final growing dominated space and OTT quickly. is a only Associates that AVOD misconception business. pointed of that recent but revenue makes XX% thought OTT market. AVOD The out market is growing

have XXXX this XX% ad to and most from indicates result There streaming The space time. an another of in who XX XXXX. from the all television that XXXX million in by households are now the OTT country. to is and spending over increased of of Interestingly, to connected supported IAB XX% the TVs report people of in that watch is the XX% XXXX estimated AVOD watch OTT

to we explains a from goal space, excited grow so which and with while revenue why are offerings be of area year. continue this player next and VOD continue significantly will to our growing the in All of profitability key acquisitions add the to tuck-in

Mitchell, With review reported financial Chris? Chris to the second that, our call the results. CFO I'll over quarter to turn

Chris Mitchell

results. expectation adding to result revenue to of primarily in our Crackle Total Thank of you, for Bill. delivered We on increase XXXX increase the revenue significantly days XX QX, $X.X last $XX.X was the year. million quarter. million The second was compared

includes in again compared ago which the period. $XX networks in million in revenue Crackle year Plus $XXX,XXX Online XXXX joint generated venture to QX

million QX, compared compared of form generated distribution QX, to XXXX. $XXX,XXX $XXX,XXX $X production Television in in to video of and in XXXX. film QX, XXXX Television revenue $X short QX, million and revenue generate in XXXX

said, As release we and for for how networks of the have fourth online we release working finally Bill network for on on Soul's going we want Broke to settled are October for heroes. Soup the Chicken hidden still season

can as streaming opposed our believe these viewers significantly and networks by more get more we on from thereby generate We to on revenue airing online series. cable

quarter year $X.X a was whole, of XX% million or period. ago $X.X compared ended in XX% as total CSSE total XXXX the June million For XX, profit to gross for revenue the of revenue or

charges to compared year would've been charges non-cash year Operating an loss loss the XXXX without for the certain ago profit $X.X QX, XX, period. operating the period. $XXX,XXX. EBITDA for compared of was million $X XXXX quarter $X.X the ended to million for ago -- Adjusted for non-cash $XXX,XXX Without operating million June was

Turning of cash to $X.X of December We equivalents debt at XXXX, XX, outstanding XX, million at debt of to of million as $X.X XX, our June XXXX. and cash compared $X.X XX, XXXX balance compared XXXX. the to at million company sheet had had million $X.X December outstanding June

few It closing. light the of sheet review a joint probably in makes the to to minutes sense take Crackle venture balance

market $XXX.X assets to our which total increase our exceed interestingly $XXX.X network Our million, to increased and million current value.

flow. mention Crackle should I now positive generating cash Finally, is

small a have $XX filed close for also credit a statement week. stock next referred and offering facility registration to CSSEP expect a We million

now turn back Bill. I'll to call the over

William Rouhana

we'll take Chris. Operator, Thanks questions.

[Operator Instructions] Dan question And Company. comes line from our first Benchmark of the with Kurnos the

open. now is line Your

Dan Kurnos

forma with evening. Couple Great. have. do Bill Crackle of pro Nice the all we people numbers at just here. the looking obviously that Thanks. just Good understand a questions, start, clarification

contracts you the your and XX that is realigned was non-profitable Bill, the wanted out That contracts? you the here Just to or Those pulling be set the XX.X XXXX clean revenue correct? posts clear are that quoted. the that baseline having in

William Rouhana

correct. That is

Dan Kurnos

Okay.

for get do consolidation So, a still think given are a one to that sense couple I and marketplace remarks does on of the you you your deals we of as CBS; on the with how how you impact own the ability think a notably Viacom point funnel of impacts over deals. here content. production you in much afternoon rev the focusing just yesterday touch from changes to license wanted made I your prepared those to that and things that sort just versus time some marketplace? you seen share around of obviously on that the do content long How want and

William Rouhana

to our in these asked Yes. owned we've XX networks. everybody that's major XX content And what's are but media the --some company. That's people's a are Crackle, consolidation over showing we're that our What's complicated Dan, we for enterprising. on days these requests question major, on going incoming first just Obviously watching in terms had of of space you like is interesting that else. me

think So share a we difficulty see that near any basis. I content getting term access to going don't on to revenue are

very data Over not now have we from the the mass built know And term, best what that strategy will the specific show obviously long precisely watch be once we the we even carefully generate a what to we see enough business that we for shows. critical start may generates. will typical so have that to

it our that have when a we revenue whereas of at Crackle a as example, the reason there's is on could a cable from operated good and million elected For for exhibiting we we believe it network. looked gotten Broke, from networks the to owned dollars put would plus couple that we of not much going generate reason to numbers, on on

we abundant, which -- there it's So and do is of at now owning to content deals them go. are the do plentiful, can there way is think point right ability I is Right these share course the advantageous. rev they're the a to

the of another anything there, streaming in they properties? which their by So noted made media people the the to and of because streaming on is people the date and we're from going to products, buy when CBS these statement value? value announcement terms that what's way consumer they are through the specifically else, that in been and closing. the absolutely part need Viacom going to of direct they said video figure in And that question industry out accepted approached we've how we you into. of seeing asked really that to which I since get looking What's the weren't

we And question. that into a I place. it's strategically interesting clear think that and what me very to So translates in right are quite the exactly is open

Dan Kurnos

the owning kind to how a implement now that since it opened willingness do to do originally unfair have there? sort then need you significantly that And versus just of channel? get percentage? to you expect out of preferred up to on of your either walls freemium laid then, pay more you the right just ad or scale -- or pay you question of how door to ask plan but is still maybe to of of Or kind kind licensing, it your supported of terms balance be gates, a And in to

William Rouhana

No.

I think there is don't up gates. think I no we'll plan. no there's freemium put

to you. I tuck-in the I intuitively today. I best quickly obvious don't acquisitions the that interesting, think as viewing on share as That's of content rev the quite these time. I content, of on library talked Netflix and know time. reasons I've is still for going split me the about I me overwhelmingly even use old about the we'll our business before, to of be possible. of grow it's to XX/XX library on one really That's Through AVOD some wasn't stuff. that XX% of all found the But mentioned split it Netflix think

a that appetite kind of for content. -- still there's there's So big

access that's business have I the now. We it. to And build think tons the right right way of to

Dan Kurnos

the Bill good Thanks Got and it. color, for luck.

William Rouhana

you. Thank

Operator

comes line Thank from of the with you. And next our question Moldow Canaccord. Austin

is line Your now open.

Austin Moldow

Hi. my a one with to questions. ad Thanks of strategy. two-parter sales off your I taking wanted about kind lead for

to sounded If on how color is of give can through specifics few that Wondering of think Thanks. between sales is sort more you direct great. your talk and just a ECM why about you ad you programmatic sort with and which you your corollary view a if can pretty high? high as it

William Rouhana

Thanks question, for good That's a Austin. that one.

We we are and business overwhelmingly a words same being to and with to call the direct resellers, what particular language different to people sales understanding using things, in mean different barrier thing. mean this

try about. explain me to I'm what talking Let

closely listed I As part but major selling also they work relationships my -- with go very of direct that advertisements of presentation in who to them viewers give the American companies sell we forces have can that -- in advertise that to can corporations, to. specific they that DMA the those local sales have we targeted

two we so through call organization. and would selling direct you what do very And targeted ways ourselves have we local sales

That in of we Some need a of differentiator us. more for biggest And programmatic companies are to sales. that because key no have do almost these inventory. ad industry who the a me between is ad our local

and our others. First

more. not trending vast are to trending. the we companies directly our ability local to an sales translates the do sell $XX, fact programmatic the local That not down ad those sales and are we inventory sales And direct the major Our majority we way that the have to -- and know. national just between the sales we're so secondly, ability and you finding into of

Austin Moldow

majority then generally what targeting better look ad as sort of more it. industry to push long a sort of is you the higher you being follow-up, about of or go? Got it a going on the industry talks of sort ad back programmatic tech you that's sales time with of efficient, And do where and know the if out ROI,

William Rouhana

lurking I there's different a So, there. ideas of think couple

let So question. let me me pass the

is ease efficiency couple one the your ads. of things -- right ability customer. to efficiency. is reaching deliver about there's One One In having actually an terms of when of a

customers implement order So ad additional and to sales allow we their actually use us. headcount our do order delivery direct to in their in with them not have ad programmatic buys have

can people none are is that registered people users But programmatic that they the make, more daresay than than the And our which think achieve ad networks, use part of actually who way. type targeting we more argument have if the in which programmatic most have, million selling. gives which XX one second question on better the us of I is -- our -- those have our guys competitors of information I except about you

through position for is of ourselves relatively we're So to value higher the in. customer have we've This our opportunity a created an registration unique customers. a

Austin Moldow

And possible. any maybe exactly last users a maybe sounds as it information more to view about? kind talking it. point and in-depth your kind Got the require are registered do what With you of What like registration if question process? you of friction

William Rouhana

Yes.

only I think times registered. million a our been have and XXX actually apps naturally have million downloaded XX Only I say only. people million, XX enough,

So the any a going but of else Pluto, so and counts because are I register It's not to not larger we know. users data. not want than tell in base data four but a is I in give you've one all five, that of larger larger very Roku, from than to viewer we it registering Tubi, number, we industry. larger out anybody to have whom taken XX million larger better heard five anyone have around of the people have it's time there. nevertheless than and registered the am is than the you People built don't can out

Austin Moldow

appreciate Thank the really you. I color. Fair enough. Well,

Operator

Thank you.

of Group. comes line with Klee question the Maxim from next Allen Our

is Your now open. line

Allen Klee

Yes hi.

of had the much you can tell you us end quarter? outstanding off, how the of First of preferred as

William Rouhana

$XX Allen. million roughly,

Allen Klee

in about shows, you guess, and of you you is if another how feel to but economics libraries, Okay. think where theoretical on much strategic new -- from that have And business? a you you your question I content just factor you spend need the to then have also like TV of -- return within your as you do more cost the movies doing how generate where

William Rouhana

I'm I understand the question. sure not really

So help me little bit. a

Allen Klee

trying some of like the good how understand but are new that spending money maybe them they're how content margins, making it that think streaming you're than that? you -- content because different say to I'm in None so you how much can are guys then do always a do like that-- have war. if on or you about and

William Rouhana

where to use you something When if these That Okay. was for I the fact I helps. to to revenue is that my production scarce was talking producers, about a today, access the entities we really revenue. part talking of generate of VOD last facilitating but in AVOD a was trying the go talk, that I because have creation about you're producer which that mentioned do

not Pluto to go You're CBS that's going by because owned to Viacom.

making have You scale, of good and bit could every really as when because you content. go and to go about of as any places revenue many you're the that's us to matters

we're to gatekeeper get liked get benefit of financial that to -- guy the for the guy makes cost have that fact can you as to. one place and off the places pay work people's to a key last critical get people of areas portion of growing one first that an return other rather content than people of words us of out the access to the a The us That to return, it. a fastest think become possible gives and return basically ability of and equity, vis-à-vis to to the to distributor of in about things. And in a other the

a cost the networks. because of through a high companies percentage That share for is up this. putting and on use invent gives distribution the This very years. upside of and major of our us didn't done content years we're our fees getting have content of years We media what and and small overall returns disproportionate the our

it a taking way So going I'm the pay make why we're just doing it, they're guys we're of now are which stuff I percent saying right all entirely the out rather but not streaming than to doing this approach sure it. just they're doing that understand

major We're advantageous this very and to finalize facilitate scripted and these in way be with we non-scripted it. future as to a economic return we'll better to about going a tell these in people on I way producers high able by programming as and allying see the arrangements. and do an content have both you

Allen Klee

last about Thank is historically question expect that TV them all talked in are XXXX? five into series and revenue of in Do Q you've five the go you. My production of that and generate XX you your to

William Rouhana

information And amounts some new, we the expect really the to know these XX rights portion in five them this to on saving greater in we go them -- we development we that try production into series unscripted of go the in No. produce have I'm and about. put of have more into companies. going relationships new XXXX, into of the have I some have don't focused I'm that what's to I the some in all the these of of the don't because and already production XXXX creating yet content much to of into talking vehicles ability on through two I've been

Allen Klee

Good Okay. Thank you. luck.

William Rouhana

Thanks Allen.

Operator

Thank you. [Operator Instructions].

line Jon Hickman question of from next Our with comes Ladenburg. the

Jon. line check Your open. mute Please is now Pardon me your button.

Jon Hickman

I'm here. you sorry. now? I'm Can me hear

William Rouhana

are How Jon, you? Yes,

Jon Hickman

I'm good.

Sorry.

William Rouhana

Okay.

Jon Hickman

I little bit if wondering on. you could comment was just a

you to do -- assuming tuck-in like feeling acquisition? overall sheet want to I continue how your moment the use have preferred time about balance So do are you the to can at that time, you you how from stock you know but

William Rouhana

feeling that our us flow could positive. considerably -- our net is resist cap. worth worth over as good of is our now that cash -- my Yes. market that overall I'm was the now $XXX net it sheet than our Chris million about balance grown and it is overall pointed We've higher But out. pointing business neither out

prefer to little going we enter finish are we're bank that bit We agreement. off to offer have of and up to left new our this going into

good shape be of of week. think flow for future. both those and things pretty the the cash Between the done next in foreseeable those things in I combination will we're

the CPM the good the Austin's for $X who and be that Jon, As themselves. far that number. move acquisitions primary guys he $X the or we know or $X CPMs. programmatic actually we're can looking is the we're getting of of that buy because if smaller our we acquisitions some earlier at, $X are And platform as pay for reason buying guys for them most comment go number to $X. a tuck-in why being onto $X But said $XX. $XX get because I know businesses about

of which a room essentially could for see which is flow You there's itself. immediately there, profitable pay for a cash and arbitrage can lot positive very

But things the that's way way day know. that They're that away among likely to at are there one make value there. just our to bigger and complicated straight are other because we're out other big acquisition. a to I now looking much we'll more a our unlikely they one deals the we structure. arbitrage really do another of that's like quite of we're few Crackle because obviously self-funded a from things -- and We're those be negotiating there ones, So right want The to profitable we're been than deliver probably find those. somebody do way as mean money. you of again doing I mean a we'll life as more to if

Jon Hickman

the a you could sales direct just So numbers. guys side? do you How ad many have couple on of

William Rouhana

plus. XX

Jon Hickman

Crackle employee XX plus. overall there? now count the And in with what's

William Rouhana

employees direct entertainment. XX in It's about

Jon Hickman

Okay. Appreciate and My were Thank questions it. you. answer. asked other

William Rouhana

we're you think, Thanks today. us as I very done. all Operator, far as for joining I Thank can tell much.

Operator

today's you Correct. up that have This disconnect. wonderful the and session. and day. Ladies conclude to answer We'd thank Everyone all and you the in for does a like may program question gentlemen conference. participating wraps

Chicken Soup for the Soul Entertainment (CSSEQ) 14 Aug 192019 Q2 Earnings call transcript