CSSE - Earnings call transcript Q4 2021 | 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 2021 Earnings Call. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions] I would now like to hand the conference over to your speaker today, Taylor Krafchik, IR. Please go ahead.

Taylor Krafchik

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

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

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

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

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

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

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

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

William J. Rouhana

had the strengthened accomplishments thank business a the you to a I'll established turn over today. with Fourth to business major for and to have. year. and strong into foundation prior had then an who had last detail talk net XXXX quarter to quick period. momentum our and increase Welcome joining outstanding We dynamics, record high-level accomplishments, revenue And great that current year opportunities million, over increase the Chris adjusted $X.X scale We scaling year. will over on the capitalize on our how the of to on industry an And year we a XXXX are recap our EBITDA a us for of thoughts was we record more record everyone same financials. Thanks, give a go XX% the a us XXXX. through to and Taylor. $XX about finish go some number quarter million, a I'm of a it in for quarter these going threefold was

Adjusted XXXX. Our more our to experienced we revenue also full impressive performance EBITDA XXXX lockdowns. transformational XXXX during growth reached the prior pandemic Full the a million, and of XX% year. was records above net well. million, revenue year is strategically. even top over strong these year the on are that What's COVID rates that a XXXX $XX.X growing and XX% EBITDA increase adjusted performance totaled as expectations year set $XXX.X over

active studios. headed We a by the Soup our increased library and XXXX, landmark hours -- than successful Chicken Soul media, the activities the were acquisition doubled Soup acquiring again titles also Chicken library through through retention in under formed in in And also studio TV across Ellender. consolidated grew our pipeline. acquisition. XXXX We for Group the completed group which and early We content year, content the significantly than for programming. skip assets more and high-quality networks. Soul viewership one library X,XXX and Sonar which and our activity not We recently an we X,XXX added more screen we Television on to of First, extensive viewer producing our David content our and with ahead,

Plus we the active Our on million. distribution very Plus our average now monthly with successful. now Crackle On -- been touchpoints, exceeds has touchpoint strategy XXX,XXX The available to viewers touchpoints new XX and than and total users more monthly average, for add between continue XXX,XXX is XX totally Crackle network

as channels our launched fast app also Soup service month. on earlier Chicken Vizio an this new the and for on several We Soul streaming

broadly out our the quality growing viewership Soup rolling now driving base. for avenue are the opening for revenues Chicken content and more We another our Soul service from

if need the Though, in increased we To not the And tech Beyond amount any It million. new for on XXXX, of right we we content advertising Vizio to followed the the add minute. an to now. dynamics in a strategy. plans a and platform. we There distribution, All there. our conversation which some XXXX. around may many our play they get provide industry. for meaningfully viewers and on I we stage position color sheet improved will shareholder set recently results and with Samsung in business our And strengthening began have I are now balance want hoped. $XX on profile The scale this we'd new is return the some long-term both and you've inform VOD well share industry we received been and stop time, has us by buyback and as all, rollout program, partners. financial in of tech everything launched our our more at thoughts coming lastly, our our high-level by augmenting active for enhanced are our in to our expectations

space, on recent of many putting That's believe changing been media habits know, SVOD and are the it in you has Nearly market. the about in the investors viewer the media bag mixed made and their those being performance landscape a by that we decisions decisions trends than the of for names. more has But streaming all driving As attention big mildly. been months. focused the

beneath believe the number don't that. subscriptions options opportunity growth ever-increasing several SVOD over U.S AVOD space, see that believe both in key is trends overall SVOD growing SVOD and attractive not are In despite to viewers. you you'll remaining the the available support of most If materially surface, the We for seized.

majority levels. ever savvy and viewers the land the landscape Additionally, either signs in -- latest investment is jumping higher reported driving here in recently overcrowded competitive overcrowded coming in those Gen of stakes of savvy high says who purchasing research control and landscape the the And over out are are big watch to viewers subscriptions to emerging more increasingly will millennial to power. the content are and that U.S., the hit. demos, result the of vast -- years beginning is binge The Z

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a we're how our scaling business. So, let's at look take

track have a remarkable put experience. pieces opportunistic we M&A. and content core and Our over double of viewership, XXX,XXX our and or user clearly CPMs, the growth on than XXXX. technology, in together of per has content, which now more focus we all organic with our programming to production growth original in our And originally week number are our All on of Content projected most pillars told, both through us differentiator. exclusive content hours become these of activity, important library,

is releases. original this profitable and ownership. have is leader titles This through large a exclusive been metric three-core and original reporting our has Our to way has good believe our is and a of platform, by we growing more and of two programming producing put how that And our already We starting to our rights to an more picture per cost new at co-productions. force you year, our original We now our company emerge and us more a exclusive time, this partnerships streaming XXX by content always our do and AVOD our been content, unique acquiring will exclusive across to much IP including results services. progress. in XXXX than and come. streaming ramping effectively, grow to owned been week pieces exclusive which some and Viewership on strategy we've content for or in to content drive monitor original to we'll that believe growth. We

in impressions, with which as a both total XX% pipeline. number more original our will XXXX goal increase most high As our undoubtedly Remember, ad goal, And December. this exceeded overall our quarter, of as viewership profitable XX% percentage of year-end exclusive for of ad robust is and content. generated XX%. impressions that of our the

media multiyear include bigger be players recently Sherlock, screen our a to home the a streaming content a whereby of X,XXX media, and the smash These originals our content. signed exclusive BBC our hours has license add series premium great we'll hit given with than for are services. deal more us their originals, on who more Beyond BBC, services for AVOD X-year finding to

new theatrical We Spider recently time film Man also release. franchises and with latest trilogy to the Sony, coincide from add

of Verizon We're showings Crackles with our the This black a media on by was highlighted and also for customers, sponsor surprisingly, is hit of increasing key include our integrations. of with Smart top help viewership box in and it executing Other Nation, a of Our agency the are over Bounty more. as driver us -- working on series. movie Comfort multiple charts, media movies P&G's with partnerships, years, big Kitchen deal upcoming many the important advertising hundreds advertising large brands partners not a inside on series positive with recent trilogy who will creatively on Home there February. but Apex us

the We introduce to NewFronts. brand integration opportunities at upcoming expect

Our Soul still Chicken service Soup for with across out of the of thousands exclusive touchpoints. hours fully programming, rolling and distribution is launched streaming

Vizio. official but least, catalog. announced perfectly, our fits strategically and X,XXX XXXX perspective, series, approximately we size its content our week, launch last Just rights quality TV of the more both not it on distribution doubling announced M&A strategy recently movies and And content financially. gives deal us to last our certainly a From

next fast also Some of Award approximately Linda deal Award to of incremental impressions. starring $X of Sound and comes adding ad Ronstadt our million AVOD that Land, an the with of also EBITDA financial months. estimated Rebecca Academy Christine, nominated deal generate accretive Hall and Voice. is winner Grammy immediately XX Spirit billion my million results, XXXX Award established revenue the approximately The Cartel streaming $XX in This channels the includes X and content winner yearly

to Our increased rollout, We aggressive touch continue positions with XX XXXX. year. consumer lineup to is growth. expanded plan combined than reach more viewership our that the points goal time in second content us distribution now we've This this

long-term. the of through Truly Picks guess Soul collection the adds early to and acquisition our note of faith-based what growing XXXX expansion, us I be had international the of best in channels groups stages, the business world's of family, participate about; enhancements XXXX in to appeal driver library where rapidly we interesting Soup that therefore, are users' viewership We we Black is content and to key and also that's with continue to accelerating and content already these our Echoboom, our documentaries; is allowing business across anticipate refinement still you for is which enhancements largest platforms. will that most for we and can time Crackle debuted action different FAST viewers. Chicken viewers, films; for We will area One sports the of think but the ability impressions. large friendly our side collection also lineup. that SurfNow The greater our Unidentified, business TV, rolling FAST to segmenting anticipate in a over our the is out; by movies and Technology allowing on spent roll out be to platform, our impactful our increase their progress ad

continue we innovations Additionally, driving and introduce increasing dollars to that ad new CPMs. advertising are

one up up With per start on VIZIO decrease advertisers the VIZIO exits month-over-month. user and in viewer time the And platform, off time here's watch February, beginning averaged month-over-month. VIZIO launch. went seen viewer, launched was makes VIZIO about engaged In we're recently engagement. XX% up since we've a XX%. is on XX XXX% launches, more tech ad progress much Samsung our were and and hoped. the to XX% new happy our XX% with a unique watch app engaged tech happy. MAUs VIZIO were impact down, There Samsung's time have that over increase. started with around XX% strong increased has that minutes the VIZIO great VIZIO we it.

also other quarter, tech LG major TV, new to to Fire add We are Roku, platforms and this QX. in on track

updated watch these We expect apps times. will rollout the of continued mirror our increased

highly optimistic about these on While marketplace. we consolidating pillars, we focused opportunistic are media executing strategic remain growth and the on

our the it will relative year. for primarily at financial are as approximately we scale are to investments beginning the as XX% financially. executing we expecting meaningfully, adjusted look through tech projection reflected further our an growth closing, expectation increased looking any accelerate Implied new in growth full turn XX% team our operationally, and in hard and acquisitions. ahead and revenue our a forward about from Entertainment in a want and performance. M&A EBITDA ends years. all and growth growth Adjusted perspective, for excited of entire the expected is first top in quarter, XX% first XXXX approximately X half that our year primarily to I to top as today, line EBITDA last a in be year the over Soup come be we couldn't the on Chicken the for marketing will who -- will to well our their the result of we for the to Revenue without to second adjusted quarter go XXXX in outperformance business prior As has Soul line great outlook future will that work. the as and of is strategically going more more year EBITDA it's In detail. through Chris, to Chris? financials thank as I’m it over will which

Chris Mitchell

Thank you, Bill.

full an revenue net an the increase increase a year. both in library ad contribution production XX%. revenue. sales Sonar quarter distribution scale and accomplishments approximately increase increase business from record made fourth points, TVOD for in past to year, to compared prior we net Starting new sales the This XXXX which in in third $XX.X in translates of and was to over and the $XX international million in year-over-year fourth position to for million reflect the $XX.X in of increase beyond. The an results by results XXXX the the We with touch quarter quarter. fourth related and year-over-year and us the reported financial year XXXX and our revenue of of viewership tremendous quarter licensing million the meaningfully Our the driven sales,

higher-than-expected XXXX sponsorship year. million revenue profit our only compared relationships percentage fourth advertising pace new viewership we For of at Gross the was advertising as net virtually XX% but high-quality all of increasingly XX% distribution to growing our we turn or cases, Screen costs Sonar sold grow and, fourth by or as same million strong and net fifth with Advertisers in period consecutive commitments, which our Gross release margin in the the impacted sales we and engage in for points streaming attracted investment revenue partners. existing out launch touch in some we $X.X to quarter a prior to was ingestion driven the as the technology not apps $XX.X the to ability of from quarter be the of increase add and quarter, our new This Media library. content content. inventory. continue with also larger large in library and has

of non-cash $XX.X million would ago million. fourth profit $XX.X fourth gross have an gross of comparable was been Excluding for in million film of compared million of excluding the XXXX operating loss the quarter year the non-cash loss library $XX.X the the period. library, XXXX Operating film The million. $X.X for of amortization amortization $XX.X to profit quarter was

included million in million. operating have of the impairment $XX.X loss the Excluding would charges fourth quarter of roughly $X.X been XXXX,

prior Our full $XXX.X in XXXX, margin we model, million will organic results, we for distribution generated our library were to both which in This our our growth results by nearly of of network year time. full to year or higher-than-expected million business, carrying in the international streaming was net business and of of Gross period XXXX Gross of revenue. driven the distribution production $X.X the and net growth compared Summarizing service releases launched growing record compared and quarter expansion $XX.X which from record $X.X our in contributions ingestion and cost-efficient acquisition. revenue. full strong increase sales representing touch for million the IP XX% increasing The from million XX%. library. percentage profit million the expect We to our over new and $XX.X from increase new revenue our to was Media drive an year, costs year an revenue XX% from as Sonar content success million we further sales an content a library and on margin adjusted Sonar viewership a year revenues, licensing or of we experienced all of by the of production reflects of was scale for technology EBITDA as net percentage the investment in increase in control our the compared $XX.X of TVOD the XXXX the particularly fourth the and Screen year ad areas increase points Xx. year-over-year apps for year last from and in the for rights same impacted

XXXX Excluding $XX year. excluding for been library, non-cash to The profit profit amortization was million. of was comparable gross the film film amortization million. $XX.X of million $XX.X loss gross million the for $XX loss of $XX.X non-cash million Operating of XXXX in would have the an operating compared library prior

hires the fiscal fourth increased on XX% full as quarter in increased percentage over quarter, XX% to discussed, technology year, XXXX expense roughly a prior despite support to in of the for margin in Similarly, to in SG&A period investing compensation for spend from of to the XXXX. in and $XX.X XXXX. from XX year to and year And fourth net percentage basis, net to gross the the from year on in full in year like year-over-year XXXX as over EBITDA the the improved as XX% basis despite gross Excluding prior have to XX% a year year the in XX% despite year. XX% in revenue loss from quarter growth, of operating XXXX, a in been million year. that up third significantly prior XX% previously to in XXXX, a Further, year prior I'd XX% to in XX% from the up increased XXXX impairment full million. year. of in improved XX% on XX% the the Adjusted fourth in XX% from margins future full $XX.X a heavier-than-normal new and quarter -- $XX.X the emphasize XX% comparison, XX% compared to included would million million charges revenue our $XX.X SG&A

significant normal margins we continue making As we be staffing heavier will on year before back first of that growth. move and and XXXX, the the in half technology we somewhat gross margins of operating as we've expect been improving to into as compressed the in half the spend than investments result

I December million Looking of cash at balance and The to of million to the elaborate moment. period. equivalents at the XXXX. million to at the ago liquidity as and will the decline The $XX.X year third $XX.X fourth sheet quarter repurchases end on compared relate had in quarter made third and part the relative our quarter, end the Company $XX.X of cash of position share XX, in during a XXXX which

may we stock you proceeds. gross a common As completed many provide us of recall, offering in million to $XX with July in

business, balanced to opportunities continue may from remain XXXX build capital attractive liquidity to strategic the further as including we acquisition strategy, the we As in M&A, of of a see terms did the Pictures. we any our with highly recently allocation capture we well-positioned flexibility perspective

in company to the stock XXXX. Directors This Additionally, million the our addition increase a $XX is February. million our in has Board approximately $XX of since November repurchase approved to authorization repurchased

shares to of shares fourth through total we $X.X XXXX, total work roughly a shares done back million. first our During $XX.X for of buy approximately repurchases in the confidence for and we XXX,XXX quarter build in quarter intend close, to foundation, we continue opportunistically. repurchased XXX,XXX yesterday's to the a million. And strong a the reflect These of we business have repurchased

count any to help be there may clear in aligned everyone and get share I our numbers. confusion calculating our Lastly, touch proactively to quickly on wanted current up EPS

or share the with count XX.XX $XX.X in prior loss a year. December the XXXX, was of the Net XX, $XX.X net $X.XX XX, million loss year December XXXX, share of for shares. was per As share or per compared million basic million ended $X.XX

acquired $XX.X to $X.XX or $XX.X in loss of net content of per dividends, preferred net was well million and related goodwill in impairment On share the of excluding the XXXX compared adjusted basis, charges with or Excluding per share an year. intangible of $X.XX assets, assets prior as $X.XX we what net about the scale XXXX an excited share in further successfully amortization accomplishments excellent closing, incredibly us made the assets, per strategic made successful related that to progress XXXX, intangible we was initiatives $X.XX. throughout are XXXX. totaled business incredible our loss In -- on key position as to million a we where $X.XX loss

is improved are Our profitability, that all flow with and value. of long-term sustainable Operator? up call With we pieces can still we these firmly drive believe belief -- will drive shareholder to that, well-positioned we place, for opportunities which open additional in line while the questions. ahead top see and the on of we us, we cash growth growth that capitalizing

Operator

[Operator Our comes from first from question Instructions] Dan The Kurnos Benchmark Company.

is line open. Your

Dan Kurnos

for little the Great. a of ahead the guide Bill. Obviously, the too. is finish Good year evening, full to afternoon, year. bit Good consensus, Thanks.

want see. causing cadence. of the to I a incidents little from larger of We've some the ad been have some to market. that So domestic spillover players talk good international that's the some in the just heard about bit

is out the I that's the don't OTT checks little weirdness. all, kind anything year CTV at been There's or it, what I going call -- been everything impacting and but if mean that's to checks the category, bit I call numbers just of generally, have of on there. good. have don't if backdrop I for economic in QX been cadence similar, half of and you're to front seeing trajectory know just of kind out if your wonder given and sort there's know the that. While a

William J. Rouhana

gotten not out. -- impact good a everybody we Dan. year. expect quarter it seeing history, yet. the on international that an And are far, won't. I is we we've finally meaningfully. now don't year's business up that what that, are XQ. I we The closing numbers any be we by mean, the the indicated incredibly have to so events strong And thanks because say that real we I 'XX. to first pretty have impact great and hope year, so first realizes And already going from the can't to -- the revenue But -- remember XQ we've defer a had on no. seen great to comments, the did I for I think for way, -- not you last from who quarter hasn't far, haven't had of was We a some those we

having of we're was first XX% very a So, strong what a off year. increase last quarter

great We are the off a year this we for the year, look strong. see numbers pretty to and start

that don't of are of a queue impact, substantial But I’ve of jump the had just optimistic. I pretty customers ads. be expected I any signing really We've in I to changes kind because something big -- I'm the may in I scarcity we way So, to of integration that activity, sponsor networks which dispersal haven't our start up. in see think the of other who a had onto to in really that because big, pretty told everybody any such we impact. Dan, are heard It places. seen or get it's long noticing not of kind was see

So, it yet, will how tell out. all, turn I going can't all not in you but on Obviously, maybe. horrible. internationally what's is

Dan Kurnos

And No, of year Yes. with integration, I you point brand of especially into the of some of especially, you opportunity there. brought we arena and sort of integrated there, history -- that I just sponsorships, trajectory color. last of as Can you late launch latter as you legacy clearly certainly this obviously, Bill, up, and company, the I even overseas it though? mean, move national that to there's are appreciate about a type obviously Soup, you little kind but is, some Chicken out. have with maybe bit kind talk That's that that a long advertiser's you know more guys roll helpful. starting the and mean, sort kind

just to some get fronts, I'd color. maybe So those two on love

William J. Rouhana

Sure.

process Home script, Nation; point, the will and we've are Obviously, to Smart going quite going say the programs in question, service. going we run second as which by have go to strategy, first time we challenged it. a that a a right it the of had of I integration half Season hard to well. to A more -- to P&G, mentioned Dan, do to But AVOD we going production. beginning, others. it causing is ads the they is lot what go about the the you which the like think going that being in So, this I to enhanced be sense scale. the is fact when run used we’ve on that that was -- advertisers will we And Comfort buy a we've bunch to some really we in a -- kind of thoughts integrations to This it's I brand at that always And of way we as related that going viewed in seen, down get Chicken Soul couple our is that cost in of these well. to are in Kitchen; people integration what streaming sponsor that that's Soup P&G a we number starting It's The harder would for been of to are business reaching fact offset the they're it and your from will few pretty back of from done said. are consumers. is X, the it do think I are flexible scale. seeing Verizon them Broke

love That rapidly. start, love have really the so, Chicken They're for quite there associated like network few good the got a first growing But but off the streaming early is Soul with to And real that more out very demographic. of it's with there quickly. done being our coming services now And that a very idea. we've out of the advertisers brand. idea days. VIZIO They that streaming AVOD well. Soup service on network They -- idea

going when to run Soul service. about especially are think So, funny convince ever the because a we is be in for the easier integrations, than to I find those in related Soup should that Chicken streaming advertisers it way thinking they thoughts something

the NewFronts. in expect have NewFronts, got a with And the few they're things soon for would I advertisers talk additional to or we've about the quite upfronts I regard guess, coming space. to called our Now -- to

a but question. answer, long So good

Dan Kurnos

That's the Bill, appreciate will asking I an question the it. off to the today, international for Thanks appreciate closest I the No, to color. you all come I color. Great. you're so hook.

William J. Rouhana

Dan. welcome, You're

Operator

Thank you.

next Our from Thomas from question comes Davidson. D.A. Forte

Your line open. is

Thomas Forte

I congrats on question the year. start quarter Great. will and question. one the One Bill, follow-up. with and

way. this to sort this, about of I in question talked the You but wanted ask

have services And extent a video-on-demand now you in positive video-on-demand of the it a because what front? negative extent category? Soul what increasing To So, advertisers' then it's advertising the launching Chicken is subscription to are number complementary the on increased for services. for competition a interest this Soup because is AVOD

William J. Rouhana

That's Yes. good a question.

that big there they're they together. embracing or they're was work see warmed opportunities think, should I to of idea pretty part it obvious So, the it's years. of because company churning big of that the content to better. of could in so to seen, large limit pretty I But think, the just hours it's our in week be that overall off the said on already be that to of about how and they on quickly. time. not there you've teetering I -- and you prediction last be will period I with still far quarter add it's are not how exception mean I be to They're them but There a the to talking SVOD that going think the prior I And people AVOD, -- consumer thought enough is AVOD Tom, the and manage like long because affect the better, -- those a tumbling be. the of that fact extent all going they're the the But X% feels People starting to better more over as the balance, reduction the they aren't of on really are almost exceed or advertising SVODs, availability to be up phone so positive I are to how already whether where in last take had materially up not let's in part -- fact we keep were had script. they've I as very lose inevitable products making And fruition, going to availability. or aren't were not advertisers they more my what do. it's strategy. over advertising. think demand would ramping services embracing were I SVODs with -- last we to advertising it even can The to of with me it of it, And services a ads. going result with going happens was there learning probably to strategy, AVOD. share SVOD of their sight companies the as think, the interesting Netflix, so -- last our guys many is part coming the the those reason is to as a that to see and procured

Thomas Forte

Excellent. And about talked it this, then you I specifically. is, second again, wanted ask sort of to but my question

how the continue sell out your should you rates? your think for that inventory, CPM Given opportunity about increase we to to you

William J. Rouhana

large. in it fourth hit the Well, that's services. that's was increase. they the -- year by believe, our the think month record of And to quarter all-time are continue the we They We I and sense had, increasing. which in the because I the of was greatest make -- the demand would quarter November, for

anybody number bounce view think that then, drive, are broke is around noticed, new we and this to some tech. that the numbers site. a we the time to CPM know the that's the of one we metrics My Samsung there's know, will then the important on think increases. about gave I is the to the And Tom. many course, I one trying how VIZIO on And don't So, of viewers. is -- rollout there you you the as services, One bit. of results both be of And there's new pretty continue it's if there's the I growth is by know, you for FAST to going new active then didn't still XX all CPMs I And of overall is pretty other. of to and factors, business. number, the AVOD services. go admitted the million of as -- good but want Soul, finally into Soup those one Tom, the because a we one Chicken number top monthly And broke viewers. we go

they every those in are favorable of And right so, is -- one now. trend favorable it's a

to distribution strategy -- trends a there's other the point lot I a we of that So, they that's way, for add cause good a It's each by generate the just articulated. home run. And just completely optimism. touch and mean big they our is worked. there

So -- and it's continuing to work.

Thomas Forte

questions, my Bill. taking for Thanks

William J. Rouhana

You welcome. are

Operator

Thank you.

Jason question next from comes from Our Craig-Hallum. Kreyer

Your line is open.

Jason Kreyer

you Hey, doubled guys. over referenced Bill, afternoon. Good the the past year. that so you've content

But to you I understanding just also isn't content again XXXX with that an will content revenue in the of to I'm hand-in-hand you're you've approach grow trying help catalyze investment acquisition. areas Obviously, said growth. made. to XXXX think double of other investments that the will with what that going revenue get the going that

William J. Rouhana

said way, Chris Well, by hi, Jason. the I think as --

continuing it we listened further further businesses, some of Chris invest not impact AVODs. that of it FAST also rollout the those is And monetize comes the fact competitive got are we from the were ourselves the said are pretty those to the would part and in significant of controlled what's we've robust to of that. if say my well with growth seeing new in all And portion combination talk and/or ways that of embracing from course, As content. things, of services. And this driving tech, talk, overall. it to I for owned in that been our where as others we've And streaming new the we his and two can both use discussing very rollout you to

series us -- up BBC the say the step the exclusive where most extraordinary on investment, that where we star hot the So the but it as of all Xyears we as kind are for and use of you point when like one is with about for possibly could to one be -- planet. picked times, of something times take the one now of the rights who content you deal, series as with on at word to out -- well as rare the will it's additional most far a of unless popular would important be I

really other of X,XXX then hours and -- top-notch it's So, content.

William J. Rouhana

much way, the exclusive to which By of us. is

-- have the if answer of exclusive, people asked content if and other yes. the the Some us is is any

end be in the the going say now players be plenty. have to So, I will more picky more side ago And more strategy. to be it's to of a Jason, all to way about years case. to terms people, the are imitating Over think the up because the tried still our of of I couple AVOD time, going this it's we able -- we and we of house choosy, spend, content

Just are not harder favorably to choose year watching like a pick or going announced business something I the ability an to a your XX doing And that. lower it. think at they're they -- and pieces they have, the in of and be AVOD, announced that's that did take currently a a terms top-notch just look MarVista. at stuff original in content relationship what for and But change this in they're tell in They know, implications doing Tubi. content I They'd or going we're if exclusive to of XXX. our year We'll they're to cost. with be AVOD be place. the really They to doing first dynamics us on in the that you next you're get to meaningful of it's going said harder over don't

your answered I hope I So, question.

didn't. I think if tell I did, but I me

Jason Kreyer

did. Thank follow-up helpful. you you. from No, did. That One was You me.

roll will So, be you and the out. some if kind expectations Chicken NewFronts. any perhaps looking Wondering how maybe tease preview that’s there, or of upfronts you whether may you initiatives alluded to out that expectations influence positively upfront you some or -- can Soup industry earlier can had that just to

William J. Rouhana

thinking to I right if you of new Jason, part want -- everything have that, because is introducing give be yelled that you things. now get will NewFronts I to Yes. the about I'm you

talked would I time Soup it streaming the the exclusive say have for week. of that about we be I of that we content, will service we Soul to good on mean last content each original Chicken everybody, the new That's incredible want piece and all opportunities new there. XX. we So, predicted a and the to remind focus the suffice chunk of content have one

this break to going XXX are year. We

at we have So, that. acquisition But production we of much I doubt Jason, don't really NewFronts the very much the going that need because would working. less managed get more get can't to -- to than I are away, into important make And about to give and combination us. I to happen it and what's to too gear want those high then them exciting,

… So

Jason Kreyer

We those about to will month so. learn look in more the next or

William J. Rouhana

Thanks.

Jason Kreyer

sir. Thank you,

William J. Rouhana

You welcome. are

Operator

you. Thank

question from from comes next Our Michael Guggenheim. Morris

Your line is open.

Michael Morris

Could the of the content, goodwill What driver little monetization the the the doing that maybe compared that and there. to? Bill, lot you Thanks everyone. referencing those all spend detail tech the appreciate investment expand time guys. a was bit there. quarter? secondly, the cycle importance consumer items were and the detail are us experience for impacting side afternoon, remarks. hoping I potential you. in Thank the charges the on little made bit where to the tech What how your of you more is you it. the you what of a booked it the And maybe been in Good in the we impairments Chris. I'm of what took? investments investment of in bit assets a you the then Thanks, prepared on did for on changes you're maybe and can remind a have

William J. Rouhana

question. In One is GAAP. initiatives the philosophical before once we tech latest to question, that Mike, last initiative, of which on you big me with opportunity, year. get first you getting space, me an over of ingestion process, inside two the really let been up that give But part your try answer kind and Chris given may comments have that, my the disagreement it's to is an last really to speed. your

needing actually You very And that's done. year. significant portion move don’t within the of that's we of spend about been a around build to content a pipes own sort our have And last world. the library big the digital over even without our

are done with We I'd almost say XX% that. through that. plus

let's or fourth a guess, successful and those, big version are bug or next software take that, iteration. now numbers has cleaned then sure they And days. each improving -- -- the a you spend work we in been through think we early XXX, work release, -- see as in through are Because that. little we’ve very we for I four, think least that cited but there's been three feel on it's see, the the and other the from that has And The viewer I VIZIO, I on you at version. in third I X -- or get good we up tech had about been make we at version platform And the releases VIZIO your XX of experience. Samsung, you and every that the least way or need time maybe version we’ve are to you do the

LG I I'm this in that Roku April. also along, But the forget so QX. and quarter, being the I no quarter to tomorrow, and meant other in I'm and March. longer this that -- The Samsung the software, will network piece out perfect perfecting the platforms. And the we shifts But it, the in first after roll across one. my you underlying said never will I although as so, VIZIO spend from, sorry. others of far a couple I out your is talk, Mike. perfecting, call I is rolling [ph] very listed, I'm it other now to ones Fire, rollout

we bad. not understand the residual One of year -- really way It's be we going year, would rolling we kind this a investing. a very little there about It's we little bit did see roll you of less the going year, been wanted to quite we get as it start will on but the drag reasons that to was the But robust QX generate from we positive, through be EBITDA different a to be bit a if EBITDA. still everybody than the scale. to can have will we that as talked it be weren't through as with of

very, part -- very is the behind away, spend is on because goes year about us. I'm is of And bullish scaling the tech of not tech never spend So, while that of much it it for the that. much

optimistic just closely rollout over. that's spend much lot year add down, doesn't half why of of you investment out, more about revenue but add the lots that are There's the and we but drags part way the to a So, to it. the reason is And roll the should should of tied the more revenue last said. we've to be free-scale

will question. I that So, over if I didn't, answered then But think your tell turn it me, to and you Chris.

Michael Morris

No. That was that. very helpful. I appreciate

William J. Rouhana

Okay. Chris, your turn.

Chris Mitchell

All right.

side, can the buckets. impairment break into content down the you three On I basic think impairments

of off. relatively it years, a The on into development if amount first the Any bucket, it that’s small more is you [indiscernible], been total. work write than that’s to turned got hasn't done something of you’ve X development which the that’s for and books your that

buckets. it's say Screen library. bit And bucket two of of down -- little the And is broken a one there's the the then other So, I that. rest Media it is into would

down. was to have if underestimated you revenue And titles. a Conversely, potential, based the on in you you terms write look initially title see to write ultimate, a up. it impaired feel to at title of its not have you're feel if was that You XX-year like you allowed it

that kind the speaks that that of requires. process GAAP but with So to process, philosophical issue the Bill's is

an originals would development again, The number the screen goes you of as a well titles; buckets with, original up of down would learned build fairly series that titles, ultimates. the many off, into after of years; I like back small imagine, with And some you Hidden might we the as we've of types I over started CSS current with are project company as impairments course would that the work, it's results. conservative we did a example. process And say this And on that as I it, through. productions CSS the just as and those originals. built that year the Heroes number our had what have written production the good a of those a doing view now productions. between based ultimates years is lot rest a it two good the to was say, the And fairly amount broken evenly a so, go of of that lot was we of media but

William J. Rouhana

deal. that Who a than one in big So, proposals I to which We sheet. alone, to I've GAAP -- offers stupid, it's fact important am In But It of without the I? matter. not don't shows, is that We write balance point of write we do is mean, This it's to It's the our being I? guys we've But pieces not going get you library Mike, titles it's where is that higher new last up I’m lots absolute get a police we to dislike now, silly. on few We going know, am obvious, really time is and me, specific. more I a I'm ever things really got over exaggerate. fantastic content to down -- of can way fan number, number I is big not I'm than It's up. X,XXX% tremendous write not stars. It's things got award-winning for the received I mean, overall that that's the why you it's this? cost you our what GAAP the there been. what still, -- besides content. nonsense. weeks begin -- only give with. over not again. really what doesn't … we’ve -- are individual and on valuable more of But need. got to nonsense. what too actual made

Michael Morris

Bill. Sorry,

Just …

William J. Rouhana

Go Mike. Go ahead. ahead,

Michael Morris

that -- acquire offer title? for it individual is brought just an just that it another offer, to I to since to Is [indiscernible] -- service? Can an trying that maybe up, add you license

William J. Rouhana

the people I -- property us was intellectual buy we the kind it's can mean number -- And buy these some an People -- craw valuable. sticks because library. that acquisition small at actual are buy come this We that? to time time, to that off of would we very that's offer. of go, exactly or just and same can millions folks like your all have of very, but my writing our

amount for of It any We the are content individual offers than of pieces sense total to find more doesn't make write-off. that it me. getting are I the just ludicrous.

library Our is incredibly valuable.

they're sold which you look have to now than an today of libraries one the libraries market are size, by our cap, on we largest intellectual value. being things. in more of And of thing, the amalgamation way, are high-quality about we it's ridiculous own fraction film it. selling the and of another the with unusual long-term And world, most the And is if property much We of companies television that our asset fact, the in it. have way if at ridiculous and underlying some a you programming. talk want It's of rights distribution for

are I've cap before of one we because and let's a most seen. the of ask market one, is ridiculous running the out next person things let on time. person last Our that the I get But question

Michael. thanks, So,

Michael Morris

the answers. appreciate Thanks it. for I

Operator

Kinstlinger And you. we our Thank Alliance from Global Partners. question take from Brian will last

open. is line Your

Brian Kinstlinger

your Great. quarter. points of so Bill. so Thanks Each content much, partners. have XX so touch or Nice many

or to how can on for your load What about platform time improves Samsung what other, additional and sure load new touch migrated? be on taking for many me is, awareness compared rates? all heard planned follow-up then there's is and TV steps create not so apps. if the brand on attract to go my any rates, all the I'm viewers company And talk for and for to new what's Plus? compete you or then I and an Crackle Amazon that’s You have historically line VIZIO tech And been the points the that,

William J. Rouhana

of stuff, That's Brian. lot Okay. a

right. Let me do best. All my

marketing go about what always talk content. promotion first. to It's I'm let's I say: it's back about and content. going all to the the So,

they have had content suffice really was it you was the it. to there they even things. other at preannounce drives where watched look three take a that say, And network. the old it. they the the good wanted The going to month and us, it's came, watched titles it not that, it. Spider-Man people we on results. If found and the our content for example, Spider-Man, We February, Brian, distribution they that But it promoted an [indiscernible]. because And I'm promote to for recognize didn't they platforms because unbelievably

quite of bit got that of And for kind so that we it would a buy, free. to have promotion normally we

years. up happens place only ones piece what Sherlock on It's is watch see content, series for programming say stupid. going a was drives will with only in opportunity That’s Bill That's to popular But Sherlock. pieces history. are lock one I have it's who most X of is going You was a in programming. of of it the the able long-term to The our content. to the And that what be Plus you're content. networks. our the country to it be Clinton, viewership. the I'd If Crackle we

is what secondary. it is everything that So is. And else

Soup bit that we people of Chicken will Soul other drive of the fans, what have But matters. books millions it's will and businesses use we our for very that I content. be, That's brand the big admittedly, from outreach fan and Now think, millions and our every to a and the is special. network. that brand, and to And

both of increase it's really the which what this said a had very, in of XX% uniques, They're a start one And of and seamlessly, it and really active wanting something will very they are Samsung I it for there had XX% what Samsung, most special. around. you irritating means rollout Brian. I you site, statistics decrease here. quickly. -- was VIZIO ad not It's they XX% a our asked for viewer the various the and at viewers time only I throw not the people loaded time best, parts get XX%. watch I VIZIO repeat think of thing try and make around some Watch is XX% it's in and early, time. And repeat was Peacock when will and television increase -- whole the That’s the then don't increase stay. yellow sometime it I they XXX% to people and business without increase that really one and that monthly you exists. days on come goes like, and That blame that Now and But fabulous. which stupid go if that the being engaged is is people, see do show just around I -- to like load because ads exits, up about through in already I start thought can to I mean of fun, in is them. few and in little

our I new list this those the what's are, starts but rapidly. good that tech said, quarter. touch any don't you rest have gave coming as don't them. the And to of out And we year, want of really points By the we very, end this on new -- of it very with So rolling the are tech. I have

William J. Rouhana

Great. Thank you.

William J. Rouhana

went let we With you lot really today. had was to You a a long, joining a company, price, going for year. It And we the there's but are other us things know. tell little as good. thank that, fabulous than me stock been are everybody lot pretty this welcome. And I in know on you. a

all. well. Thank look I Thank [indiscernible] Thank you, future you operator. speaking forward all you listeners. you, to the So, as in to

Operator

your This today's you. participation. Thank concludes call. conference for Thank you

day. disconnect. now have Everyone, may You wonderful a

Chicken Soup for the Soul Entertainment (CSSEQ) 1 Apr 222021 Q4 Earnings call transcript