Earnings call transcript Q1 2023

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Operator

Good day and thank you for standing by. Welcome to the Chicken Soup for the Soul Entertainment's First Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference is being recorded.

to Lawandow, conference Head like speaker to now Zaia today of would hand over the your I Investor Relations. sir. ahead go Please

Zaia Lawandow

Thank Meier. remarks questions. and We'll afternoon followed call by CEO, you, for for our Rouhana, remarks, operator. us. CFO, we'll from joining the Jason William thank J. begin their our from you opening remarks Chairman After and with Good open

statements are including fiscal Matters to those the use discussed on risks future statements this performance of years. number forward-looking Such subject call a of uncertainties. regarding and

and materially Actual results of report quarterly adversely could the in on in described XX-Q. in the Form This on XX-K recent factors. statements differ risk result our and a most most from set forth report our those recent as factors includes forward-looking annual various Form

The company's to company statements. section on to the any Investor for release non-GAAP call. Please measures website of certain a refer forward-looking Relations undertakes in of forward-looking the obligation earnings the this update no discussed discussion

that, over Bill the Rouhana, William call to turn go ahead. CEO. please and Chairman With I'll

William Rouhana

everyone coming Good guidance a the and good with to you adjusted us. I'm for afternoon our pleased we to start Zaia. Thanks year and revenue had in joining within report EBITDA that thank range.

the of time lot and worth then. the probably quarter for six a ago report, was as revenue weeks some we been quarter EBITDA reported that made million, adjusted of fourth the progress Consolidated there but since many $XXX highlighting know was $XX million, only of you since so we've it's hasn't

consumers sure out now increasing most pay for media removing of more of to less. more paying the a in the earnings with forcing cases. privilege their news The for and ads to free coming to way of media shift these watching seen continues ad-supported content on services, I'm in streaming. all pushes subscription It's people you've prices simultaneously studios that landscape

and premium to ad-supported remain is than our movies low-cost way of theatrical greater kiosk digital release physical totally proposition services ever. watch our And new value The affordable free rentals most anywhere. our rentals the

progress rentals. what three the we kiosk One ways we're in through As we're see encouraged is we the we're seeing as year, rebound growing. by

our a plan second drive flow platform. through free few some more And in is The expansion services I'll a as ad third minutes. premier position the businesses talk sales to the is of that our about our and cash

to steady we that's arriving seeing. I theatrically said on we state rush a last kiosks. films we're our expected studios finally films release reached what are where call -- a been and many the that constantly the to There's at

and some in at Looking things Wasp: Starting kiosks. the we've arrives summer, tomorrow coming. Ant-Man the interesting got really Quantumania

Fury Next Honour XX. XX & have Shazam! Thieves, week the by Gods both and Among we'll of May Dragons: in Dungeons Creed later and Brady, for followed III

weeks two a that's had $XXX we'll first major releases. of we additional with rest box nearly the of kiosks May, theatrical just the month, million. two have at our In theatrical titles of May. the And And office combined during six

I'm month. Mario in June Renfield, and The in of nearly In where Avatar the Chapter have office Arriving anticipating releasing billion. the about Wick: box in Rise. in theatrical by going later excited combined Evil the a all, to Super releases Dead followed with have to we're month XX in in John kiosks June arrive $X.X and X, kiosks we Movie mid-June early we're Bros.

-- combined not nearly those box of in have Margaret. million you And office $X.X including we'll eight sorry. with keeping VI It's July, You XX Scream In theatricals and theatrical God? of releases July that's between billion, for count, kiosks arriving There Are May Me, $X.X arrive a

only we first seen just we three to were but is event we've from looking major be exactly It's over impressive. to August when as movies And shaping for February. what Redbox, August up took

So keep XX. ones. July new it's big those, originals include just in title direct-to-video these titles, don't mind, counts the through mentioned, from Including at May or I counts title the come in

of sales good you of a watch is premier weeks platform. our pillar be a presentation came some able which really couple There's It's position days. out just ad Our it. I very stuff as coming And We NewFronts a in website impressive. ago, you'll growth very second our on of to there. successful suggest the do

Soup Chicken a we've see You'll techniques of streaming, lot and innovative Crackle you'll streaming, launched. see ad Redbox interesting for Soul streaming, the

as AVOD to thrilled We're leading continue to and response independent it supplier out-of-home platform out a we and digital build services with the for Connex our Crackle networks.

over now our MSC. Retail digital screens Velocity Media represent Group with In fact, adPlanet and out-of-home deals through we XX,XXX Coinstar's

have adding in large another revenue be potential turn tailwind to and business, scale be We in business. the kiosks, a generation in digital which a revenue participant out-of-home the the to on to can our our stream

At renewed like original also new Series as producer with Gorder, projects Box; about through from Broke; the our For entertainment drops; hottest We've a Inside and group. and Going presented brand-new branded of Ashton Just Kicks new series Black a number a -- Genevieve seasons Pet and Caves; Kutcher new Talk. Home new show From hit sneaker our Wedding of executive well as the

like leading costs Wearhouse, production. mitigate risks General know among national PetSmart with you and Men's the the with Insurance associated As to many we others partner and advertisers

their complete purchases. out directly ads items targeting interactive Amazon connect advertisers. Crackle technology year, to be to across rolling this entertainment measurement of by cart is The and that to Publisher campaigns Amazon Later also to for DSP allow brand's check ad remote out partnerships developing and a number we'll platforms. Connex through add Direct execution data viewers control using will and or voice Beyond of will ads

and We've also measurement digital announced partnerships and both video screens positive in series respectively. ad measure Upwave companies with Geopath to lift

remains pleased the what first -- hoping many high exceptional provide ad the announce television European-based to which TaTaTu, in will of to a entertainment And partners and rep announcements complemented be catalog, by I'm quality of depth ability our film I'm is media Our service with and leading demand. our category social to company.

their of roll to engaging audiences excited catalog out platform the our -- for viewing their and is innovative first rewards film content, and our to and our ways of into expand us to they This series films television explore extensive that networks. couldn't incorporate scale more global allowing internationally, to with footprint. as bring our be platform I We'll tech

the a we're and cash free management continue rebound to driven rental generating along remains be with seeing by continued Finally, initiatives. cost priority flow will

we're to ad seeing incremental with model success converted cash look to opportunities encouraged apply and us both kiosk has our the be service other flow. generate the that rep Additionally, can to at to service our revenue and entire business identify businesses immediately our

scale As ad providing value you BXB know, clients. business continues greater rep and our to for our kiosk service

EcoATM, ad customers grown of Our including to number have four Amazon the we kiosk leading Pokemon clients partnership. with XX independent to AVODs rep grown long-standing whom have service We've and digital and networks. Kimi, out-of-home a

additional these to and these to of very we with near addition revenue. customers service in full overall of to a business new find many opportunities or with upfront the programs partners, attractive rest potential businesses pipeline create look we service at launch. synergy continue makes pilot have opportunities investment low to In other our combined The

excited you come. the on seeing months I'm year our results updating the closing, to by to we're the progress and early forward in in In look

turn the walk through I'll call who financials. the you will Jason, Now to over

Jason Meier

and afternoon Thank you, Bill, good everyone.

As began with note on the a Bill guidance within EBITDA very adjusted mentioned, and year in both we our strong coming revenue range.

fourth nearly million, million, seasonally EBITDA First adjusted up year-over-year, strong $XX EBITDA down and up revenue was a was $XXX quarter adjusted XXX% XXX% X% and revenue quarter up Sequentially, was although XX%. was year-over-year. from

demand in quarter, quarter the year-over-year, excluding monetization library. Screen revenue the library. multi-platform to first $XX quarter our content for XXXX, premium more Performance of double of the In of the the impact of the strategy, reflect increased continues million Media's our first than strength especially acquisitions reflecting

our business revenue of we week previously in TVOD May past to mentioned as largest we our Further saw XX%. multiplatform Coming our up calls, cash continue flow to on to year-to-date TVOD Media's an we for had continues asset year-over-year generates business. library, continued which in revenue April, out our view valuable with accelerate. growth Screen history, future that extremely strategy, As the

TVOD week XX% TVOD In that is about coming will hitting be seeing was kiosk revenue as growth the fact, weeks. of the up the we it week-over-week. over our We're in excited are alone network a films past leading indicator

In XX% the quarter. first a sequential was quarter, XX%, increase our fourth profit gross the over

rentals first Our consistent impacted gross year-over-year largely by decrease margin was the consequence films lack on a kiosk hitting in to a attributable basis. of in the kiosks a quarter adversely

kiosk we of improve version ended March and in impact nationwide. same-store the January the With April. theatrical the kiosk and our remained rentals remainder On kiosk positive quarter a event future. XX,XXX in of of In were sales around gross network, physical over and average of per the per films strong for our cadence than nearly films higher underscoring number of XXXX, Daily expect we kiosks. or titles the return XX% our rentals February April daily to and in the of margin kiosks the expected

year. the with mix of operating with related $XX.X operating the the expense Our acquisition and merger driven loss amortization along the in is an both the by prior million loss higher for Media expense of of million, The XXXX. compensation in $XX.X first was compared quarter and variance increased XXXX to largely to revenues Redbox

fees. $XX.X was quarter compared the a $X.X year CSS the XXX%, quarter, moment. million, or increase includes million $X.XX which million the prior and that nearly of license of for to EBITDA come adjusted of in million representing $XX.X on Our in an management to More equitization

equitization, would Excluding first for $XX.X have CSSE the million. the impact been of the EBITDA quarter adjusted

position. Turning to items impacting financial our

common March, Chicken million. in our our you parent closed modification stock entered in raising up Soul Class subject will Under $XX.X recall late agreement defined of modification, management and Also March, in Class A fees company license the As to to with through issuance company certain A LLC stock public offering able a we announced terms. to of for that common the we into equitize early April was our million our a the agreement. Soup to $XX.X future of the fee related late

its the our Under the senior I agreement $X.XX million company rating quarter and as both underscoring previously equitized on our reiterated structure. credit recently, of the Egan-Jones capital first rating notes, BBB XXXX the of agency strength secured More was mentioned. in

facility February retained X.XX we plenty credit us favorable flows. given expected terms XX, ability to of increasing for financial cash under our operational pick interest HPS XXXX, years the reminder, and our debt the no of a runway, around with As covenants expectations giving timing through

focus our more our cost streamlining organization effective to to further and coordinated on continue result operations. efficient We to approach in

future mentioned revenue and other of our organizations his aspect previously As service cash the parts scale, sales replicate ways drive across in and remarks, business ad of our to service in Bill flow. we're resulting to evaluating future increased kiosk

cash of Additionally, with sell are look to own assets of at to starting kiosk results strategy of which the we we in to in in future. our cash we're increase in the or factors the to we our choose others late continue seeing closing, initiatives the our raise we event flows. these partner additional that flows expect go-forward already that films not to may the combination available In and operational significantly and cost-cutting an increase number strategic May

Now, Q&A. I'll the for to back call Zaia over turn

Zaia Lawandow

Jason. you, for open please the Operator, Thank questions? can call we

Operator

Instructions] Jason line our the of with [Operator comes Craig-Hallum. first And you. from question Thank Kreyer

Your line open. now is

Jason Kreyer

ago. was Crackle a your it guys. you, or so couple Bill, as week NewFront first presentation you Connex Thank weeks maybe had of last

highlighted You just from other follow-up that marketers earlier, now. if you've but And that since important to heard you presentation? any there just any I'll it takeaways, ask my feedback wanted see, then was

of par by like So, XXXX Redbox levels. you've theaters track It we already or about about well XXXX that the looks levels. getting least on are over one-third back talked at numbers to

box how So, look kiosks, put right and to at relationship customers your utilizing frequently you and achieve the new just are curious releases path the on if would those between targets? that you volumes office

William Rouhana

Okay.

lot to take NewFronts our of first. Let the encourage people a really me days. great ad tech, related. and see on it if The our do lot people. out rolled in has the really website I couple A do very ad a of impressive we of I was that tech mean a encourage -- an lot it posted of in that related a one new got ad programming advertisers who business And look interest first that of also there. lot to with stuff for but anybody at tech exciting next was one were that us. got we've We've company video I had -- lot of the we can A by was and do

was – one from other doing that NewFronts. stuff, side, Jason contextual the and the of understanding the were viewers. There especially so came advertising. shopping guy ad innovative a the There's some that, lot was long tech the of that in The we in the real by which of and where the some stuff sense thing with on was of pioneered on a programming good that takeaway Harvey, advertising's impact on about a way was people importance a time ago, of a impact named that stuff content talked absorb friend we of Bill also mine,

was in today's a more Certain of thing a the And way. types of to advertising advertising is that's important people one NewFronts. of out We're part contextual serious and types receptive that to what's becoming – at much been came today. And certain content really make advertisers bigger that bigger of that least on found.

NewFronts both that contribution activity. as It's It's Crackle – The that diversity in that could business for buy came our place AVODs business And a of and continues it's fill margin. flow. get different they one Rep the people I cash to excitement go our because bigger of cash the love a everybody. an There's better to whole other that like words, generates the liked. our thing and a networks, of And rates. but benefit In incremental out about it to CPMs, we it idea networks programming, where was grow cost bunch now one people's for all can Connex quality business could diversified run Rep selling that volume a variety us I all of shot. Ad spot. guess flow. no there's because that partners from or higher having of incremental It's in our Ad as just call They other they business

I So was that good, the the that's NewFronts. the other say would takeaway from

let we'll what weeks from goes. start that the couple a we'll of NewFront. The That's as see And get know months, you people. few to we a how seeing. In We'll of kiosks. course, getting them commitments we're

– of my I in to think I back kind go remarks. said what I

Mario Wasp, movies incredible of God? literally to going XX X, Ant-Man III, Creed Evil John Bros., Fury Dungeons an Brady, are Chapter VI, Super Are Avatar, Me, of We Shazam! tomorrow. Renfield, have array Margaret. Wick: Dead, Gods, & the It's Dragons, starting the for There and XX, Scream You

office people to wanted. because This is movies This they've we've other is where what July. TVOD. is $X.X We the as we renting are just And believe It's This them billion what going to is just months. we will them big are. gotten. said as been we through of as be going big. on combined August here. The box be rent

March, an then his we We where the in the revenue, seen is sort big of in TVOD as be and of in things to One interesting this a big of jump of revenue said jump we've jump in in Jason TVOD rentals. a kiosks. early saw success seems remarks, the indication had

suit will follows now hoped movies, end with being this exactly we it these would what this If up be. all

understand are in Jason So make conservative. now XXXX very back or where that it. need, this movie our in the we to successful. XX% to all that they theaters very order XXXX were guests And that's But closer seems to versus I

targeting. we're So what that's

Jason Kreyer

it. Appreciate Bill. you, Thank

Operator

from One the you. Securities. And with question Thank question moment line Riley next Wold for B. our please. next our Eric comes of

Your is line open. now

Eric Wold

afternoon, releases back number kind theatrical Are of basket rental the Are and to get seen behavior. couple increase? on more of about the other seeing closer you of the to renting the follow-up cadence as along of trends big A what Good talk margins? you. normal, also of consumers titles sizes have library Thank Redbox, questions come titles of you're better Bill. you've presumably older that some the, with releases seeing maybe kiosk new

and shift the marketing to and kiosks. to And kind back now the promote the to you tend in pull to discounting really margins maybe then, rentals? of, to kind opposed able kind promotional discounts of to and lever get Are that past, as in I during of loss releases back in titles hurt offers be more know

William Rouhana

don't do question, to a a yet of I are first clear Okay. lot I'll best. titles. able the That's new have old and about my be whether of your think titles of to answer things, pattern Eric. part enough or people not we buying

don't for I've the boxes, got people titles a hard We going But had feeling bit we new titles. cadence moment, haven't these that, life movies. of new new this titles, to with pattern. the because hit of a of there take we many to are titles and be are about kind so But really little March. a that in old see to for all it's had big

March. over in what of You to pacing big May jumped happened about April the of the February, jump What same half hope now saw big XX% titles. this things from I as see is this second

really think a maybe of question. you finish chance like where ahead month give to second for I'll I there's I've the answer so can of half question guess, just there, in I forgotten else I another thought, you. your something the your you're because So

Eric Wold

to and kind It just been on promotions, of pull you've was if able back…

William Rouhana

Oh…

Eric Wold

-- you've discounts. of … kind

William Rouhana

minds understand promotions, free I a has be have do your out to we've pretty that one well. empty take we have this, done So turned a that get handed another leave second for disk, other when that we've return they and so disc one you free. seems you pretty have somebody where Eric. And to new get on point. been And One don't to worked done -- up I I'm some night profitable. two to think interesting

couple promotion promotion. end, for in been and when But and us. the that them people a us a makes money, actually appears to what there's more they And what of cost them nights, is a than be pay keep promotion for happens it decent

be. to appear discounts, promotions sometimes be So actually may not but

In all see I see to rent, where start how do levels many people sessions be to pretty increase, then going closely. terms of day for day, to way, I Eric. to if want go to kiosks Because I free might do I'm the see, the back. one people might starting is and a get now, don't if -- every I just what looking disc at go to coming session, … other to I your

Eric Wold

Right.

William Rouhana

make need back. miss do … because, people size the shouldn't up, better, just we to the want went we do rate bring basket we to opportunity we question. try we today, went kept If -- where to yeah, to people don't numbers. the sure up But really conversion make these we is and are the and

So good some cool people be come a kind get of to way have maybe, back. who promotion not might back

think some that Obviously, we make that us thinking I ourselves some want be to forever both discounts about are costing things But and approaches. I for So sense. answers don't do question. actually might promotions your money. there that we're thereby giving hope

Operator

Thank will line question next question. moment AGP. Brian next you. And the come our with our of for Kinstlinger One from

open. is line Your

Brian Kinstlinger

question. so Great. much for taking Thanks my

announcements that your unnamed. increasing think you're was with You I the made one Dollar -- other with General, kiosks was

how a first largely look expect the my talk first and back six months XXXX my And then average kiosk? during what when contribution from And So XXXX generally when long do you moves those major levels? to can question about stay it rentals each be hit is of is your the at title was question follow-up in you elevated complete? you

William Rouhana

Okay.

else? You the General what one? was and asked other about Dollar What

Brian Kinstlinger

the you unnamed, one you think release. I was in other said The press were because

So basically those. both of

William Rouhana

Okay.

in and should year year. the the X,XXX in kiosks go end General next Dollar XXX So should the of be of early by

and month then a they So in -- then XXX, they a a and while hundred go XXX for go couple a XXX, XXX. of on couple

probably XXX the half it's in XXX half, So and year first second Brian. the of the in

in it what out. I in we And me, have came the later. the idea but when XXXX other you title give happened one schedule a new no I don't can to have front of

for us to going talk those kept to to if try I go understand has to we're So records question. we you. and for can and the back who find see that have somebody

what last of in in threefold those is the we've And new increase seen rentals there focused over the mean in titles there. we first when I happened what's weeks couple on before come a the for more the year those titles -- titles were out.

in very significant. a So I'm significant going to… they rentals, very drive And increase

Brian Kinstlinger

been is first and a in to added in a been Maybe kiosks back your months? say contribution has the put that average different way couple new as I'll the year, maybe years has then of it X.X last get what to title

William Rouhana

that the seen to really What either. done impact. don't answer how is overall we've I know we've

title If as impact you you or talking mean are you the about to…? impact, What Brian? overall are -- overall individual compared trying

Brian Kinstlinger

mentioned new how majors. Individual XX mean, titles. numbers. are which exact have many I you're adding of titles, I the you don't

significantly title or new $XX be off. have my numbers I first rentals a Does does may million in Obviously the two? during So month less? add way so add it idea no

William Rouhana

not that go the It's been is way. as dramatic. titles. compared going I have important of increase that to feel accurate have more kind performance don't to that's And individual have the very that has I quite like answer. I probably you What I'll to number. It's lower order an overall the to give No. information -- in seen thing need in to that. look than we're

kind there's title, think than that have it. recognized. that just Although, have they if they back and by nothing want until Whereas rent that really going rent wanted come to when there's rental goes rather when up rent we're they've about been that because now, activity back, to people that of they something the they will of to of you to that kind compounds I cadence to have, you're no title start buildup a come

have at for whereas Dungeons where or wanted and the you have Creed rent back less to Ant-Man too. there at all rent other & first and more something wanted they one was oh, people I see to a time. all Shazam And Now the and you come Dragons take look say before this, to other and like going boxes, -- that, see. same one when one, They'll they the you're in they and no time this and come

think of so, titles And a group good the a effect it's from in I compounding really having more of box.

happen, deck. the slide our remember, slide of -- me, a the the That covers in have see representation of the DVDs. to to can't of our to instead recognize, two We to covers I seeing that XX what about going to to a with or you presentation it's recognize is you're picture you're where visual what kiosk that going all come of and you one, three or is wanted see. that you

year, three XX that that coming of, the have and it's you you would a It's screen one, or everybody look last rental XX recognized person to with XX. XX. if or there kiosk, as movies rent. you two what the at different to never that which heard Slide number opening suggest I has screen, for to going can experience it, been because is imagine compared then the completely for a

So...

Brian Kinstlinger

Thanks, Will.

William Rouhana

Thanks, Brian

Operator

please. And Thank Thank question, you. Kurnos One Benchmark the Dan for moment next our question with from our you. Company. next comes

line open. Your is

Dan Kurnos

Thanks. Good evening.

at a it to them simple. we'll So, keep take time, one

William Rouhana

you. Thank

Dan Kurnos

partner, be market means has seems like of of the been demand add-on, either for they're DSP, SSD kind you right DSP the for your both Kind what opportunities on going now, release sources a of but on Amazon which kind ACS on, to sort to certification incremental premier equation, a of in with It's of or involved pretty the the new nice broader interesting sort what's sides the access of opening. in it consolidation sort of it thoughts right providers? demand of those the lately.

William Rouhana

Yes.

of for I need think, Dan, them. keeps seeing many potential how important more the or question don't what little so fact you couple other. of us we -- the that sources, Crackle and else What we're we're in keeps way we describe demand become sales, direct more And our advertising customer AVODs So, that, different this what don't one network, -- now, manifest a to to think that never-ending the comes back versus ways. really Connex, itself know And consolidating I to programmatic is us it a interesting them. in in call the I

we've I confidential be going -- to confidential. it I will I shouldn't able But am We I -- it's stuff. not of But those say it is parties, of it's kind us. this, that direct. them XX with partners our into I And it sense go probably, are buying well stuff got think are should stronger because, are keep who programmatically probably through getting a and now, because relationship makes as as buying lot

question, next your what's So Dan?

Dan Kurnos

to XXX guess, it the the lower general, -- of been programs, lit monetize wouldn't per going of because than what not side talked legacy libraries I so lower less is frequently them call Bill, a premium I is green for strike? about ordered guess the but interesting having as the are they're end writer episode. episode thoughts Fewer per more that the really because your of going stuff all the losses? actually to on kind there's is flip more flow-through titles an for stuff impact in legacy I being major just dynamic the this Bill, it's sort times fewer with we've of streaming But the

to is to are anything So And they economics do that this at impacting save to you? with the try point? their hides trying own

William Rouhana

day? days... talking you What's a day because of about Dan the lot there's Which are

Dan Kurnos

a of losing streamer Bill. Take content lot provider money a that's

William Rouhana

Yeah.

mean to they So are. yes ways I it's different of They a do things. in itself are bunch Dan. manifested trying

morning on own up is to show the we popular me out this glad And a to you networks. there service with on of you important in gotten that The our the it's Live announced others. number Walking are pretty I our probably is business actually focus some for free that with that know have fact deal FAST aggressive a lot Dead, service the of TV a a and most including available that their of asked setting wanted important these FAST some Redbox -- FAST I'm So now bring which and channels along FAST pretty AMC guys to question, because Portlandia

example the benefit And good and the of it money. ways a from variety of is a this in that to high-quality in of business. create different content But we taking sort using FAST

the where runs sometimes topical protected come fresh curate just And is for and AVOD as Queen of Charles. in and at assets business say of size we pretty Phil our we to they the it. feeling the library Dan But did for it don't the but now fact the in talented, just do little I like for and there can that guy because large XX,XXX of very content I library a on we're with King used the bigger who things bit a we stuff VOD some the pay victim us business amounts keeping looking with King and feel keep us the King, it and Oppenheim that think looking good

things that money. real but our of other the library given are And also some size us generate timely allow to

our kind had. So, of We're ways. both studios little with the library. cuts the that some We're protected a have that a asks of of size of by the disappointed little some

in to good our get that to does around. it's stuff be to going they're interesting see now AVOD Disney+. pulling if that, what of making that would be off down start stuff Disney FAST to available think really arms and going I they're And

a that. we'd by I which very how see And following closely. we're as to business. So Disney going participate taking pretty really is library idea course started all everybody I and saying figure money out in to smart we a knows their of could try make certainly in has Water at think

there. lot So stuff cross of there's going a on that's

Dan Kurnos

another that's being $XX $X like color. start Thanks for and the a for the time. in year. streaming applauded to decent it and Bill Nothing losing legacy. for a Appreciate billion in But million making conversation

William Rouhana

Dan. Thanks,

Operator

Thank will Northland with from Grondahl you. One for next line come the And our Mike our of next question. moment question Securities.

is now Your line open.

Michael Pochucha

cetera? This questions. from Mike that's afternoon. new just there there Pochucha or deals is Thanks deal taking different the on geographies user Michael Grondahl. for other follow Is to for base structure anything any on and Maybe et first announced up licensing this

William Rouhana

So I'm with actually yes the relationship you pretty about glad I'm that's question. asked TaTaTu. that excited --

media AVOD/social social needed came highly limited fast-growing, time. well-respected, Europe rapidly us company world. who of rent deal don't some is, our -- to the for a and -- and those For for which to around in you money of use they partial who content made out is expanding a know They they're TaTaTu over valued, library we them very media

giving less some It's way providing and of more a for your and others discount I the use TaTaTu really charging loyal do. service actually to are important if of network. what gives thing I'm of and content. free. and obtain exciting to rewarding them items to But their incorporate at reason -- what to going think we and me is be the way things to you It I this we that's to able rewards do And into look that the highly be a people less charging people hope for to viewers with the more we're is earn less charging we're more Disney less. going engaging approaches flip It's at think and they coins coins really for and thinking being able

we up that were all service that kind in use the And we this is internationally that on will to will in few be back it's really it's to I'm kind – trying without I'm own. the in licensing we able other the invest we be around them other fact only than that deal in that our if on you to follow and a way for have doing otherwise what a expand of having we'll they'll actually money it the than and that very can And relationship. world AVOD get would normal invest their country. next hopefully, the And first hard maybe really that's days. that to thinking But end hoping of to

network it sort a us to around which we're of gives gives ride a about. So us world, excited the

Mike Grondah

Got grow That's Rep sales Ad of And capacity. maybe sweet Is spot thoughts year? to that it. just on helpful. the general there kind team, around internal then this

William Rouhana

I handle capacity AVODs something different? the more ability say of you When continue mean to or to these

Mike Grondah

there. capacity team sales of kind just Yes

William Rouhana

when a call team there's to it. the interesting a that agencies people down Yes. really that sell you really the big selling There on many get are thing difference. various handful right make our sales – places And about really ads agencies. you not of is them Look,

party it's to same they call more have They but call different on the not like have on they a more if So sell, party. they to sell.

limited have to not ability what their by to time. sell sell they only really their by So is

their the just many, buyers So goal. represent we our advertising to go add more could world, and same many which amounts of to is AVODs ads and sell larger our of course

We happened part we've sell and we've ad over things what's Ad we've last the the networks years, revenue more at partners. owned had AVOD and that look had adding in our our revenue of added the combination in really more more three the from had and and growing. greater greater to and were more because leads our inventory because ads we to profitability were both that's networks additional business. And FAST and business if those And couple of you operated Rep

by what Officer. led they extraordinary who of at have So Darren who Olive it'd we are more. Guelton, feels to like job. this all. he Chief be a And do. lot good is a capacity really for They're and I don't Revenue those of wonderful people Philippe reports the And quite me think do a issue group they're much easy at really It executives to sell to

to there's think plenty I So more come.

Mike Grondah

Thanks.

William Rouhana

three I've more Well, minutes. got

So do question? another we have

Operator

for participating. conference today's all No your concludes more for questions. Thank questions. you Thank of you call. This

You may now disconnect. wonderful Everyone have a day.

Chicken Soup for the Soul Entertainment (CSSEQ) 15 May 232023 Q1 Earnings call transcript