CSSE - Earnings call transcript Q4 2020 | Chicken Soup for the Soul Entertainment, Inc.

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Operator

Good day and thank you for standing by. Welcome to the Chicken Soup for the Soul Entertainment Fourth Quarter 2020 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker presentation there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded. now Taylor hand Krafchik, would your conference I today, speaker Investor Instructions] like the to to [Operator Relations. Please go ahead.

Taylor Krafchik

Thank on a the year XXXX Chairman welcome. business review the With update. William Officer, as and Chief and Officer; Rouhana, full quarter Mitchell, Executive and you, J. Chief well to Chris Financial results fourth call operator, are and me as provide

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

call, management will this statements. forward-looking During make

limited not strategies are statements regarding but and include, statements to, expectations, intentions regarding Forward-looking future. the

on statements are risks, current Forward-looking that to results. and assumptions are other from and to based could unknown management's and materially expectations actual results projected differ and known cause factors subject the uncertainties

place contained the in forward-looking of on Given these applies undue statements regarding which uncertainties, reliance also in refer the to conference to listeners statements call. cautionary Please text earnings release, contained forward-looking content to any the are call. this not this cautioned

disclosures for directly and EBITDA adjusted basis in is risk comparable which adjusted make be found On results GAAP-based comparison the that information Management income of between and release most that it The uses on call, financial a is a management are net operating reconciliation the financial consistent excludes periods. GAAP of company's or The ongoing measure filings provides Exchange useful that the and adjusted non-GAAP core and amounts not indicative more operations contains the Commission. to certain information. and can believes with measure. loss, earnings comments pro will Securities EBITDA company forma provides today's Additional the non-GAAP EBITDA. company's

go and with to including Chairman XX, now XXXX, to regarding performance, turn historical financial like would the on Rouhana, for call please annual to which the we information report December refer our you ahead. further filed CEO. William was I ended Bill, XX-K Form company's today. the SEC, year the our For over filings

William Rouhana

you, posted for all and for joining through, we've the Thank We important accomplished. you year company. been Taylor company our light that us. it's our results of QX all an think year I solid In thank amazing what and actually capped unprecedented

increase of to to XX% light express until the to the I'd employees of been prior a revenue COVID. over our were partners I want they wait and and EBITDA - customer lost to finished end that, Ordinarily, thanks presentation. Sony If second go to you thank a our television what lot shuttered movies and But doubled they've them, year. all we work for They have our all of total year. who to million of PlayStation with unable about when quarter. factors, XXXX - the of go series beginning the revenue revenue our And these Vue for accomplished, our have we $XX the Nine this unable into people production through sincere in were in The down company nearly from of business company my excelled. their the at think of and despite support. because a shut advertising nearly

experiences as next to our ramp including healthy perspective Our developments and growth from to industry's to AVOD We're original on we strong and of we as of the already plans continuing the on content. tap have in year which our platforms we we rapidly XXXX. and AVOD. also Crackle last hope for that the exciting a generation be year of for what our announced best set distribution to terrific off viewership growth XXXX we continuing a pipeline believe results our will set a We're for to deliver new expand stage for we're launch build the tech week touchpoints Popcornflix viewer networks execute stage start to the

developments at getting to revenue QX XX.X efficient EBITDA in which content would PlayStation all XXXX revenue by accounting cost our financial in and our quarter. ago distribution our our will focus more from Year, be higher, ad the additive Willy's our fourth delivered more detail. of quarter shortly. financial X.X of have and was recap Adjusted Wonderland the included Willy's included and totaled and XXXX quarter that The actually who we start owned should good last has is continued Sony instead very results from which up New first approximately percentage results news fiscal speak on the an shut and and year's EBITDA levels been Fourth with reflects our already year XXXX. to QX rules revenue first and XXXX down let being the I but end successful outstanding The results. down early XXXX profitable from been is is our XX.X me that of in figure gross margin of slightly production. will here on note QX Before what million, me, into million highlights. film growing million fully in X.X Vue, million adjusted to and low was under Chris,

quarter totaled for third million quarter X.X million payments airs Point nearly and including looking on mind and XX% These that demand the exclusive Spides, content segment gross as intercompany Our quarter which license for in revenue benefited Broke, distribution in networks content X.X our that impressions When somewhat the Robert adjustments networks. but Crackle Bruce, quarter-over-quarter XX% the fourth aside strong we the fact our production year respectively, reduced by at payments artificially our we of we generating Crackle From for in keep network our PS and takeaway make revenue Going quarter. accounted generated for in growth online Plus On ad and original The is online momentum and to from revenue grew the in strong are that the well. Plus absent in Vue as is ago we that year-over-year sequential

December generated up also to from also contribution the Distribution the a In on fact this from monthly year-over-year although The XX% performance, in results strong largely our were basis December was quarter third compared result and fourth the Outpost that to performance of TVOD and due - lower strong like-for-like production up XXXX a Willy's. quarter, XXXX. XX% period in

adjusted of XX% in quarter. XXXX, mentioned million, million PS the COVID up the fiscal gross the compared double For productions Net comments despite and nearly XX.X the the revenue and was new including million XX.X prior my racked totaled an X XX% million, of to increase previously XX.X to second XXXX. compared lack was Vue factors revenue XXXX EBITDA in opening year

solid our year we of to with In near financial addition putting Crackle several financial our strengthening from position balance to XXX% our growth. and and strategic support took enhance our Sony relationship ownership steps of performance finally and Sony, strategic financial facilitating during production partnerships strengthen year-end also place obtained course while objectives. sheet And liquidity in and future we our the also to

the all the and starting it quarter to So we in we're potential all growth But was a show think company. of XXXX. a true strong just productive

all We AVOD make of elements on continue rapid our to progress strategy.

have on one to focused one digital and our of week. have cable initial AVOD and last us Smart TV position to more Flex we of new distribution and XX well consumer expand content distribution to as Plex, devices we and including delivering many linear Crackle in approaching With to to biggest growing content platforms television reach the total Media three touchpoints like of expanded a Xfinity original we FireTV, series week as partners, distribution Apple been as TV, networks. ramping Xumo touch in Contour, titles our we accelerate targets a partners at our that in VIZIO, distribution two We to business exceeding Screen manufacturers. per including expanding month with air and has come and engine development cable as believe roster are per include acquisitions to rollout Plus pipeline eventually accelerated Vue. original increasingly like Cox Fubo, been announced and of and and rate The RokuTV, new touchpoints part title and Our believe content positioned as and roster that via that. Philo After content like exclusive points Samsung exclusive These plans of effort is a no we our on viewership. platforms

million We controls ability VIZIO we viewers a are SmartCast our are TVs especially to time. X.X has remote we expanding on experience group distribution partnership focused and over our on monthly date, Smart last TV that Based to XXX,XXX expected that Crackle-branded to up believe an each the on add XXXX. in button new on presence including

build a to year. began new and are streaming, enhance new are play innovate models reach amount programming an home solution all with Ultimately best across is delivering experience pure drive for are industry's We're goal the supported a the advertisers. and As about enhanced These network backbone interests After goal to AVOD is substantial from create business take only we in hold big audience experience are serving our AVOD these of our while viewership. Crackle variety that the platforms to introduced to great time to experiences Plus developing formats our optimization a a transfer advertisers homepage pure the for think for spectrum original for a we'll to for segmentation unencumbered acquiring is we deliver Popcornflix XXXX of viewers by new compelling year this tech including distinct personalized a ad networks and mission into content. their the initiatives we ago into will viewing of play targeting. and VOD on from legacy to we be moving strategies these content Over we our media players Crackle to or a part viewers the Sony and and and attractive AVOD platforms ideal on premium viewers. position growing

distribution distribution repurpose point escalating linear positioning an a spot what see platform of We networks networks a traditional sell competitors dollars a in on as old as to media points platforms. are. investments migration or content for company in some we products for our many diversified our are to not digital from just We're ecommerce or place TV to another

and viewers the momentum. We attract advertisers and to and have content the the gaining are we brands, distribution

foundational We're one momentum which at to role early with mid-February Nintendo eventually video some quarter, successful early Power, that to and game is Amazon in Wonderland, seen point broke yielding sign on results. $XX premiered also game We've how global a distribution Story, giving such momentum great the and the Willy's in premium VOD one industry as and to number price our seeing on would expansion Nintendo's The we're deliver to that Speaking in programming increases Crackle reached series big by positive a start. documentary viewership a to first and exclusive continuing an they business With month. after console storm. even rise about just video the Playing take off

some at as have for original content We Media very great strong release Plus. well new Screen and a as pipeline Crackle content

So be Willy's, QX but keep a in Vue comparing including you quarter and of especially first seasonally revenue QX growth ad the we're six the be to will strong to that it. we viewership in in to the compared vestiges about will mind to weeks of year-over-year PS positioned and tends last weaker report year-over-year for business in have benefits

on impact So not material would a - that our profitability comparisons. not will have

films. QX, into our as acquiring from new to new and we'll we be with nine this way networks. the programming move more we begin or year As be as hitting movies many producing series We'll on expect new the XX benefiting

lineup. History acquisitions Gang: and Current projects Street, Tony Street to rave this premiered Elizabeth and Season The Sundance Sesame Very Fox, including Aubrey Eat which have Uncommon our starring Going How Got for X, film of Megan Among Hale of Things Common kicked and have Banks, off - starring Michael History year. Bestsellers, Caine. recently our to great Till at starring We a and From Broke Wheaties, Very off kicked The and Death, Plaza, It's Things scheduled Uncommon reviews, production other are this year

less milestone are On from games about And I hear rapid which the all, our we should the be we next we're AVOD platforms major resulting working that launch. for highlighted anticipating also And strategic in the on front, year, in of XXXX rollout in $XXX exceed throughout new to our distribution All Crackle you'll viewership expect growth earlier. Popcornflix. experienced million in the revenue in a our and year Crackle challenges XX% three have we're revenue, grown interest extremely In and would over more by we which to extraordinary two meaning times pleased we we position will over XXXX. that that nearly represent in first be than growth all in acquiring than XXXX summary, than Plus. more the after in since XXX% XXXX, years, are

to XXXX and to year turn challenges posted those growth ability to Our great in progress. beyond. to look over you a Chris. gives confidence on strong forward our achieve what it keeping we in despite deliver me I'll plan We

Chris Mitchell

Bill. you, Thank

X.X Our Starting execution fourth networks third revenue the so low on be and XX% of we'll was margin our the the to our and down compared quarter. balance financial successful to overall XXXX at XXXX, period quarter PS period in Vue a would and full year service, revenue the already review year which reported last quarter immaterial quarter the the the received both approximately that our was also Bill's with in will we strategies. of year. for Sony's results The on ago our reflect XXXX year-over-year year results for net million, revenue for the in very business note beginning quarterly last fourth to up results compared XX.X Crackle shutter the to QX online in were a adjusted in production number, in sequentially, the PS million and and fourth million We Vue distribution Despite basis. XX.X had the revenue impact of to year a impact reflects roughly the focus or gross revenue. and highlights, gross and business roughly the comparisons. given discussed decline decline flat Vue I from sequentially will of first revenue decided quarter of period XX Net to year-over-year year-over-year. million the gross EBITDA ago like in the to XX.X year X% nearly was which prior in nearly compared of PlayStation have XX.X prior the which million Sony million XX% the sheet

Our adjusted million compared period. year EBITDA quarter ago totaled X.X the X.X the million to in in

being QX Bill is have Willy's Wonderland and higher, revenue revenue adjusted pushed would but results. next been As noted, into EBITDA quarter's

Willy's a quarter to additive the delivered will did the gotten has in actually start adjusted That off at very and we we of and While film the revenue recognize end to not the XXXX, fourth great quarter. first revenue be EBITDA. said our

year-over-year, out advertisers revenue million resonated XX.X as shuttered X%. revenue to content million quarter million our million, or business Our from of Crackle gross after grew XX.X in gross inventory PlayStation X.X to advertising online XXXX up Vue generated X and revenue, of the period. and million sold XX.X XX.X a with million, basis, the revenue intercompany from strong Plus increase networks We and the year XX% in of of in excluding the our On of ago the larger compared from deduction viewers. an from third campaigns QX remains comparable

our to Our reflecting demographics. better continued improve our and to target offerings ability also content strong CPMs

out continues and and the to the the from be XXXX, production we a which networks to sell consolidated eliminate highlighting the distribution near going our growth. revenue reporting that and and online as Please benefits need see line, ahead viewership Our we our will through adjustments. call in note inventory forward capacity advertising investments will single at opportunities intercompany

of XXXX X.X with and the nearly an fourth of X.X course XX% XX.X the million XXXX year QX for color XX.X% our XX% in networks XXXX. or net ago period the revenue out Gross will net of around QX the million generating or revenue into quarter third and respective production profit activities. ago was continue million in XX.X% from We production of to Wonderland shift of compared gross and the increase year or to distribution compared the or X.X million investment despite and and revenue. million X.X of of of of provide revenue in revenue Distribution QX, net quarter to to quarter Willy's compared the community performance of

the expense, film revenue profit ago million the compared quarter XX.X% XX.X% net period. amortization If back would XX.X million in you or of in as gross library to been or have total XX.X of total net year non-cash add the were revenue fourth to

of Summarizing gross loss Our in was million year million XXXX, million fourth X.X excluding year. year-over-year million compared PlayStation revenue and an XXXX profit adjusted XX.X of year the million the gross XX gross ended EBITDA XX% for to to XXXX. EBITDA On from a December adjusted period. fourth an in XX.X million and full to was XX.X X.X of XX.X an was million quarter in networks intercompany the same net generated in XXX%. revenue comparable prior million full to revenue of XXXX, year to of or production months of for an after of XXXX, million generated to X.X XXXX increase compared the net compared quarter XX%. gross XX.X XX in period revenue revenue period. was year million to last revenue loss million XX.X XX%. XXXX the the for in compared Gross operating million XX.X million, nearly revenue the of ago in and or deduction of Online the million million revenue the for Distribution compared grew basis XX X.X increase Vue XX, XX.X% compared XX.X XX.X increase of Operating from million the XX.X

of decreasing intangible the profit which as compared period. loss to December for have for XXXX a XX.X year the revenue was film Adjusted library for be for or million certain and to XXXX The million net million The and was XX.X million. fully loss year of company's significant for gross ago XXXX months XX.X experienced XX% XX amortized. revenue meaningfully have business, company EBITDA of amortization Operating ended assets XX, compared the million would year related acquisition of XXXX, excluding distribution XX.X the the million full XX.X was gross XXXX. amortization non-cash profit XXXX of film or net amortization the Excluding for non-cash part traditional XX.X will of full comparable library million. been X been XX%

period. fortunate equivalents able were but year landscape challenging, the as uniquely for had company million content We XXXX, our quarter our Looking pandemic for quickly the to at the of amount viewers not given of our We streaming to as the were ago year immediately and influx and for shutdowns. a was closing, reflects industry year third our financial equity important X.X the and following sheet during maintain the increasing XXXX This of of end large strengthened enhanced and and we stay-at-home us business, therefore, and ultimately resulting restrictions. the original respond long-term the are exclusive the to an December wide much strategy. of dynamic from successful sheet XXXX. health impacts The us. at have compared across in million the public and on of our cash XXXX content to position completed of offering on of In cash balance production by impacted million delivered balance execute liquidity debt XX.X XX.X the closing of our and cash yearend notes million December additional XX, end of at was of liquidity balance X.X position

At disciplined viewership to for joining. same diligently balance an the it combined our in results management flexibility flows now Crackle improving We turn and us over P&L for our on Thanks puts I'll the expense excellent Bill. of position XXXX. our our with enhancing time, sheet. growth, to back continue cash and manage

William Rouhana

All right, questions. take operator, we'll

Operator

Instructions] [Operator Davidson. question right. And from All Forte Thomas first our comes from D.A

Your line open. is

Thomas Forte

Great.

First off on the congrats the quarter year. in

content deals, level question and level House, Quibi of so your do debating Bill into as why? Old and up, at and manner in This a one validation So meaning Roku's individual high business one model follow without you entry that see high

William Rouhana

validation They And is - happen content get to It's original requires Tom. build back. come thanks all, something. that the get course, and of second you of hard to a to loyalty to first network somehow consumers know course, do all, exclusive them this their to it of accident building to accept. or that is of disclaimer to two by just content come they from these first absolutely them really and Well, deals to

business. so in the And to us of the one are all at make going have flow they're this way, create pace we to learn I original to said many the a systems to VOD a know remarks don't networks how this developed a and times, us unusual bring of at content we for picked if up in many which to steady space. to to end And content up But that years as the week the very exclusive original have space, be I the our We've AVOD way. will as now. been that the aiming the by by allow as we've pretty content in low-risk not in That just in pick you year.

impressions up absolute of that So XX% ad an starting ramp the must are to numbers, the is This business. we look even originals you And our are in further. the at this of are for that of that kind XX,XXX, find over over course of content from viewers XXXX the and shows they exclusive generated tells about out else. anywhere content, XXX can't looking you

no they to about there's doubt there's about want this no you I it. they the that not because know don't already that asked me to, So bait know you more Tom to but think and were I learn deals good. very they doubt have

Thomas Forte

given you way in me, easy that sold about generate my we pricing should on CPMs. excellent. by seems question, pricing Okay, talked 'XX then about top an of calendar And you is for How out up think it on growth to increasing power? for inventory follow being your to or growth

William Rouhana

charge we target. of depending ability as to possible think there's pretty I've big –I that has range on can there think CPMs now said, I our a

pricing I think is there power.

basis. our we've ability But point And in to think CPM in at there's better to get get for better ad with better from targeting. Over And the getting year, between yet middle twice and we're continue get and plan less one that a there - a ad those. to going - on really really that. especially I And favor. capabilities targeted mostly is new our targeted better at that and are there's further. better to data think difference coming nature it's time pricing even a increased I hit year, a as will a number ad do dramatically of don't at platforms much we of that do the and other are things we're sided targeted where power, I think be So the the you even in this that the especially to enhance delivering of

we that we're thing the space as but have that So in broadcast to coming moving direction they cable, feed have scarcity the without a sell a a viewers. some that to get because that to inevitably only look one power there a package at force other want. than as we have not We're a get that that I think advertisers at advertisers we less about And more unlike as I way bad should And know. includes something pricing is demand ads stuff not they already moving has them AVOD I into one certain our are way. think ads don't we anybody good follow trying there's working OTT enough only Tom on as of of kind just thing makes have more there's been. else of upward is they us you thing look viewership and the that know thing like CPMs trying scarcity, that ever doubt, in us. for more OTT order one I advertisers because and as get unique as They treated demand and so we

the advertisers just I list advertisers. of impressive. a with at for We great it's relationship XXXX have looked so

Thomas Forte

and Bill you, wonderful again Thank congrats a year. on

William Rouhana

Thank you, Tom.

Operator

from line Our of The next come the will question Company. Kurnos from Dan Benchmark

You begin. may

Dan Kurnos

advertiser brought in here in there's bit Thanks. year. Hey and trillion about actually going up let's sort stimulus be back Maybe second. data money for that's about look a half Bill of we - little talk the just to talk capabilities the coming can you demos the targeting, of equation somewhat a $X term

and got facing areas are publishing cookie OTT, cliff a et environment CTV, that obviously all audience-based EST the You've that's are targeting. cetera

can some that So you're you you're with demo having you are about some that categories the of that around just more advertisers table in the of thinking about now the you're how conversations increased you advertisers trying maybe drive may providing you're launching can targeted are to that content talk that bringing what the this be impressions bring for? to looking

William Rouhana

a lot masquerading as that's one Okay, a Dan. of lot of questions one question. There's stuff in all

take it best I apart to me let can. try as So

to male, some got that better enroll do natural our viewers, to demographic good they one is them for give income. view of at statistics but certainly are things get not pretty to seek all of them need many when we've we continue of that. thing We're female, people advertisers there most The of to So able those that number obviously, age, better and and a basic be Plus and that's the so preview and I just come enroll more a for one to little but get driving it closer don't of will our to Crackle of until thing our - demos. want networks to that, in much that be too making of we of is we we'll it, people part platform new platform new to what easier doing

and as and create where you premium in positioned others, premium with way content can content and many more We're Obviously, as they that. a not there's types content other past a and a can idea I've of it, create webpage. It's certain we have scarcity content with like they premium they'll be to thing like of in associated the advertisers like told they the being content, The exclusive pay of have you associated business so is and least at the that's to like are. that you for original the world.

So tough and on we then that's be I of so can you targeted. think less it's to technology know get way can scarce is the to of which with an the view we resource. other the very opportunity most do. broadcast impact ads. our Dan the interact there's way to want ad you target thing ads. The free Unlike where a And decide the target ad It deliver whether ads, we you can which watch

more advertiser There's more but an advertising. and it to gives makes ability information. money do more can't relevant cable, in therefore can't more use that of do gives better us better more it ads. experience result bit you a As sort broadcast, that It it of the in to technology in valuable a you you quite ads that viewer do a ads, can and the digital deliver

So I you gave up you there's know stuff question. get broad response one want you very to in If something a to that else lot of that. follow how's

Dan Kurnos

content just lot part behind going it had and paywall content Alright a acquisition about I'll so winner two. How winner follow limit by two and you chicken AVOD Bill - I'll players. risk A we on to try of side the stuff's guess I up dinner, the other the right. maybe question to do

of guys your are given your relationships. of some a in unique some position You relationships, production

of the you forward. messaging business to more be leaving you're I'm after content the and off your would some think do you smaller kind And flexibility the options? maybe up go perhaps combining guys how that? of thinking the larger costs your the if then perhaps just going monetize available be some of of we are follow deals wondering that that if how some about less as players taking So in lines, bigger should There's to you're table about content

William Rouhana

that approach have still we So same obtaining and which the developing years content, averse acquisition we've risk production side. to spent on side the both

In stuff. of question question, the access or competitive to seem variety we better a be to and content reasons, better terms seeing good of for

that don't one the coming that much to just us, Outpost by read never and distributed at us. we've worse. good, list within year. Media. acquired look movies, a it's Willy's and that's each before really, more And acquisition now for the more Screen us one being some driven, good history stuff about actually and second Media momentum successful the better star two took a had got not of you If very the acquisitions happened increasingly They're being this We've getting months marketable, better things other, The an by the Screen few I better, very in accident think better now talent, then more and something in I it's of on side, of

because access independent the We less than less have of terms had kind are just movies. part before, type of studios any and in or doing movie in more we've smaller stuff

great On The increasing international the get have streamers side, globally. taken there's need broadcasters to an programming. globally of for production XXX% rights

the things. on XXX% used they on of the starting a And to Netflix, count great scheduled HBO changing you're Max, flow of for the to they able broadcast significantly being cut to broadcasters broadcasters insist they higher quality, off Disney, as nine and order I think projects. partners to owning rights through out, unscripted see, is roll - to have those with rights is create partner So think create to being we this all able who would without attract that's great I what what impact increase or the as helping we position. programming. in programming. try and that programming scripted year, affiliated you're to international globally our And networks to higher puts a risk see were from away, a to international Productions that US with That XX roll network we quality not going a domestic us take us combining create US and position by in broadcaster more get to a profile, That puts going to growing with of with that's in but able ability be going

productions ability thing the as off the that in talents streamer other cut create programming great is to affecting being from that's really is well. Now - fact participation talent, our talent

a on like XX works if coming some you're Brad of a talented who who person, different with projects, which the So guy and up. of us you'll Homeland, Turner, number and see created

You working fee. just a for service want be don't to

And your to is true provide You to to opportunity show make that we if money want successful. still some talent. opportunity have

And so incoming seeing we're interest. an increasing

streamer and by most us and big for really them a who managers they're future action. their a smart, with will like combination them of people, some Now, very of great someone talented a do working investing if for fee have have like, in the working can help of piece the

the better both increasing like. taking better now we demand Dan and side fronts, in without So programming that's those on we have attracting side, any right and risks dynamics good dynamic on and kind of the talent on international both need the

Dan Kurnos

the for Perfect. Thanks color.

door stop. open the the ask monetization will I someone to but international question, left You've for

So thank you.

William Rouhana

Thanks Dan.

Operator

Our comes of Hallum. question line the next from Craig Jason from Kreyer

begin. may You

Jason Kreyer

inventory but we a you on don't puts takes And today. great. that table can of you into kind provide would you fall, Bill, on kind I of sit direct you. you'd inventory and any the given pre-sold mentioned of in that of of just thank bit the ad relationships, but of sold on feel spend heading perhaps question came little Great, why and if back there that know be rapidly this versus strengthening curious as you color back how part was that lot here online, opportunity QX you left and a the like any give is your programmatic, just already a

William Rouhana

went higher There don't think year was Yeah, I Jason. the as - table way the we on. were demand. much on There more CPMs left was there

and over or back guys QX remember that we course of we're through by end taking so about all was - see of comparison. QX we rebound year year-over-year XX% I were ahead never did that over went QX, place up were worrying XX% to QX the XX% on by back And year, may talking to go normal the revenue. if of we the then we apples-to-apples were we last You the another in course December as that we better mean and all would come world you that

than got way the have getting what the the just one ended all back. revenue we should the level up year, thing last year but exiting back was great last we we where year's think we and was I through were more So at not gotten out of blew the year,

feel a have we okay did on that. just So we It true like demand. I lot is of

now. anecdote, we have had. sales will do force IOs our have the I tell last million single demand ever supply week than week you - a Crackle funny We more we biggest in has have wrote $X about

the these to is a there. content original drives little QX growing much platforms bit also to the making marketing, We of of critical viewership. on our beginning and So viewership exclusive just a continue why reflection focus sure more is we our a on very the is increase what demand of because do flow distribution numbers that that's got keep that's and and truly part which to

Jason Kreyer

So of standpoint, times more. of in you've maybe we being out the QX seeing viewership a what called record that from for both week can last clearly unpack Several a strength bit little you're Crackle. a

early the you called in seeing year. quarter prices think nice ad I that very the in you're in earlier out increases

year? are factors driving these are early the what that Just key increases substantial this

William Rouhana

really know. don't I

quarter see the it's first in migration year, advertising was think saw down that. but I didn't the this we just some numbers Jason recently space. that the spend I into continued

with I - consumers. The down up I shown this I following viewers that think you're driver and at when I these consumers was and advertiser got looked more you without in more doubt. that's us it business, hasn't is are, X% - them numbers are think so like migration one but the there the the number an It think go - something our are to if recently. of some where that's continuing

Jason Kreyer

Bill, thanks for time great appreciate it, Got it. the

William Rouhana

Thanks Jason.

Operator

question will Austin next the come from of from Our Canaccord. line Moldow

may begin. You

Austin Moldow

for your if the about more I don't partners there to, expectation you inventory rep know, come ad speak just sign Can you. existing thank and have any ones way? Hi, your there's your more a little outlook from or bit

William Rouhana

Yeah, that's a Austin. good question

that rep way I the of had satisfy and represent We the antitrust excess Funimation didn't merger. weeks and I is you think of most a They're apparently know one they're merge couple demand. a view, protected investigation to it's that guess could do but we whether be. we funny. that ad know Crunchyroll department I good good the help was supposed a a who it that's so Crunchyroll in under to of category can have anime and space. point competitive from as by

kind Vue to make of good we have deal We've view of ones. do economic The a worth just to the that So talked others, number of couple need was again certain ad and that one it low partner won't margin. to a a a but - we point size do like of with PlayStation effort. we an deal terrible we talked from rep

to we there's exacting our to some requirements, So have to the pretty longevity scale and relationship. our going have be scope, and to work sales a we to certain it for force some going know resellers and somebody go need we're to else, has be

unless actually just go find them. that by ones So fit to it's you that bill hard

we need might So to view that the to better be the my the non-organic approach extent need to fill filling is it ways. in

Austin Moldow

numbers as this year? declining any might up your see that comp opens usage Thanks again, Is that. might expectation the world you that there for impact

William Rouhana

a a business, I we but lowest. So is issue, mean, are basis right. seasonal, I which is the QX highest, demand, think advertising on the obviously, seasonal comparable is don't an QX that's besides in

they go what's You and also and less spring outside have TV. called the watch people the summer and

So of not there waves are our have natural do with to kind or business that to COVID nothing COVID.

going we're the OTT we who to natural people moved have think overall, I amount So believe overwhelms of I But normal the natural just that the with still have. waves I viewership have is evidence those to think that waves. and me

they way going. it's I And don't continues. people think growth really the that's when outside the think year-over-year will That I going therefore keep go television so that less doesn't can. mean to And watch more and

pie that than they to needs there do but bigger a have will, just going a they and out big split course to had Of year. There's we that it of before. every be piece really we're

Austin Moldow

Okay, thank you much. very

William Rouhana

Thanks Austin.

Operator

Northland. comes question Mike from from next Our Grondahl

may begin. You

Mike Grondahl

a to couple to really are adding of XX Yeah, how on get are Hey, terms what viewers? you you you what as of you've is Bill? to recently a get first do XX really are out the just touchpoints stick your the goal hit, And excited couple question you that in consumer to? touchpoints that

William Rouhana

but Okay, slightly so answer question, I'll answer that it I'll differently.

ones characteristics For partner rep And They that standout. things other has from incredible question to you as back added. one the the amazing. go to that a They've of an we They a them. with already fit doing a first note with, long-term minute ago. who of recently We're good Plex profitable ad might been an we added example, been has were relationship Austin's relationship. somebody guys

But market we'll way, gone you tell get it was. work. there So to there know there. as a a been I've the of right our very, one By been have controversial I'm business that's you but very give those been the name, don't of well that That's to We'll sure do another in We'll couple I I've is those a to wrong how you good very want that's too. the been that rollout well. well. has going idea, get really stinkers gone Fubo I amount great. this It's anybody been surprised because standout. of has Plex not were. been do what - what actually sort But - make really them. to

Some longer Mike? to was so two stood have those second than out. question half develop, take others What your the of

Mike Grondahl

are you to XX next that XX, from go or important in - three you one the when really wave? incremental two the are of that or what's Just to

William Rouhana

across - Yeah, the TVs, of so them board excited number Smart plays really one are some we about. that

saw VIZIO. we did with already You

You'll evidence We They us closely. a a are us. them wasn't public of them company. for partner see as terrific. to plug with they're further really That good working think

great. been has VIZIO So

like a those Mike the in probably - and stick to a mind, a away overwhelm where the me a Roku be there. There'll working is excite or my further because are view the Roku Samsung TV developments future Stick. very things you have my TV We Fire stick And you when the remember of stick up Smart Smart relationship, we're the because that hard we're of throw open on Fire that's viewership you very going ones - as LG. looking that's

don't anymore. you it consumer, If you're a need

with Smart offerings So the number we that one get are take very we excites speak, - very, people the that's providers. so territory way those the aggressive really on in the the the trying Smart and most, TV to That's be involved TV to me

Mike Grondahl

it's then and of on sort us? any it it for XQ like that? well. just Willy's really lastly, range about Got you know revenue that Wonderland, give done slipped from to How we We sounds can really, it but XQ, do think

William Rouhana

to so really majority it. really own I shareholder really, money When it's use that Well, not probably Notice interesting It's three generate EST a better well going doing all, a popular. of incremental four can we Company, lower us possessed very twelfth it's that It's saying doing We that revenue. well. I spent really on generally screen done, time the now something what tense we a beings. average. good It's battling because it give say continue we partnership one. It but a drop and one's theatres, which times one. really, to like to had don't And well. Premier done past in expect It's after to the from, to it's remember, now even lot it to continuing made per to which supplemental first a so the of cost money. away on are going has coming is animatronic soon. I'm exactly of shy sure reasonably very we and in to well a still people, done very, is good why nice is Landmark do Cage it, great the in going that some it's VOD, they but with it's it. but up, actually Nicolas

Mike Grondahl

it, congratulations. Got great,

William Rouhana

Mike. Thanks

Operator

Kinstlinger Brian come the our from And will from question next line of Alliance Global.

may begin. You

Unidentified Analyst

coming of so users of for everyone, what Can the have Jacob watched Crackle for through are first on and relationship is the time this Hi, percentage you content far? impressions number remotes through quantify this VIZIO Brian. total that the

William Rouhana

remotes until actually second a quarter. little don't since You're the questions early the the with just get to consumers

answer question we'll So would that answer be to but they're the not yet. there since obviously, then, now, zero for try

Unidentified Analyst

from views VIZIO are compared How to XQ? QX worries. No trended

William Rouhana

been viewership upward, because QX associated The have terms of up bit, little with has but the up in overall. tendencies them, but okay generally so going a been are been seasonality different of their Impressions QX they've fine. pretty and

Unidentified Analyst

Thanks, Alright, that's me. all for guys.

William Rouhana

You're welcome.

Taylor Krafchik

going to the question is be last This operator.

Operator

the will All right, our last be question of Hickman Ladenburg. Jon line from from

may You begin.

Jon Hickman

the have returning just the line? reversal a What mundane I prompted question. accounting really Hi, in

William Rouhana

than And DVDs funny a it's but reserved. how have We John we we wrong, back. come every to guessed on we so many thought. back came guess thing, less over quarter Yeah, will

Jon Hickman

guessing QX in and Okay, mean up? that's the that's true every of I the year - just quarter you're then so you - at end

William Rouhana

Outpost have point it, it The and you TVOD, And at really you're going. doubt. without place whether distributed ridiculous reserve because it reserve clear. just just we a some film kept I true SVOD was put The up it Outpost, did The we Yeah, think was single or kind to it if of or a Outpost came if DVD, going across to over a like normal every Really, on

what thing. a a it's that's So bad thing. mean. Not I good - a It's not

Jon Hickman

else's Okay, revenues? about someone I'll then international What question. ask

William Rouhana

even quarter somebody to to third production Because asked did fourth there to is I going basically a the was a continuing We make and we up going growing think would we I of it right, distribution were grow. had international though in had to been pretty hit business? we're sales me, out And - the and international I set for I didn't was know the thought and said, that business I except quarter, on such The question. the distribution Willy's that diversified ask how felt do I it I have In XQ, going be issue. was it Outpost that okay. in great for there delivery have

So unfortunately, count, apparently now Year's according the and we anymore. so that's XXXX. delivered not Willy's and Eve, to It's XXXX on New it's

everyone. Thank happy. for this joining you about to to for the all Anyway, you going you today. to That's it. Teach talk guys me Operator, soon. exists where reality. all appreciate were thanks hope Take We I up us. care. out new the So And there John. wrap calendar that that's coming and thanks

Operator

concludes you This conference today's call. participating. Thank for

You may now disconnect.

Chicken Soup for the Soul Entertainment (CSSEQ) 1 Apr 212020 Q4 Earnings call transcript