CURI - Earnings call transcript Q2 2024

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good afternoon. My name is Briana, and I will be your conference operator today. At this time, I'd like to welcome everyone to the CuriosityStream Second Quarter 2024 Earnings Conference Call. Please note that today's call is being recorded, [Operator Instructions] I will now turn the call over to Tia Cudahy, Chief Operating Officer and General Counsel.

You may begin your conference.

Tia Cudahy

of quarter discussion financial CuriosityStream's to its XXXX second results. Welcome Stinchcomb, discussion Chief Executive today the CuriosityStream's Financial are CuriosityStream's Leading Hayden, Clint Chief Brady Officer; Officer. and

But happy management's statement. take Following we'll review be remarks, your safe prepared questions. first, harbor I'll the to

and are call, of make of statements future under assumptions. are statements our that related guarantees risks, we may this are federal not securities to subject performance the forward-looking variety laws. During to uncertainties rather a business but These statements

could statements results expectations and in current the actual or obligation from Our differ aware make statements reflected these no only, to any in materially future. be to additional Please that views update statements revise the undertakes forward-looking reflect statements. company any or forward-looking management's forward-looking

of on other available For website Investor affect release. to the that could please and today's in and actual filings as our important as SEC risks material press website factors our risks our SEC and important results, other refer the factors Relations discussed well the a on discussion

information forth quarterly XX-Q on Form filed. ended in the XXXX, also set quarter Additional report for June our XX, be will when

In non-GAAP A of GAAP all comparable period. comparisons financial non-GAAP our for made be against reconciliation results website comparable addition, found the measures XXXX measures Unless measures. to on be otherwise stated, will these can our reference investors.curiositystream.com. to at will be

I'll to Now over turn the call Clint.

Clint Stinchcomb

everyone. afternoon, you, Tia, good and Thank

people. free well-directed quarterly our COO flow. efficient and quarterly today call generated by milestone Tia, hard ever Counsel, for our our us of cash today. I highest adjusted team tight Hayden, talent-dense work In addition In joining on light and report. of a CFO, everyone We to General our Brady appreciate is this

This adjusted of $X XXXX. Specifically, $X.X quarter, improvement our year-over-year of million flow adjusted and a the in improvement. seventh improvement cash free second from quarter million an QX about XXX% marks consecutive free cash over we in flow generated

sequentially. I generating confusing, accounting revenue like why I make I'm that is language say, this concrete top And is and I'm to cash. happy our be abundantly would EBITDA EBITDA increased cash. line generating sometimes like know about very can which Curiosity also We it that adjusted to and using terms clear

direct significant cash Even we revenue position continue in believe subscription direct At our flow operating current increased. revenue cash our to a well our exceeds paid grow line generate variable and revenue marketing. revenue to alone categories dividend, million positioned our $XX from including and for our meaningful as approximately increased we dividend our annualized expenses, quarter, We QX QX, to free adjusted direct content to to surplus we're year-over-year. now top annualized sequentially cash. In from the and pay like QX more

ability do the As relevant to and considerable investments, marketing up our acquisition flexibility marketing key we industry have based we spend and have and content and on company other dynamics. seasonality, lever our around promotables

we like of and While overall had our in new QX that never some granted licensing revenue would expand licensing and did partners some granted. up into slightly note I to that sequentially, categories rights explicitly was we bundled

As licensing reduce will will new to lumpy, spikes, help categories necessarily they our can certainly these floor. increase not be but

for milestones continuing to to companies rationalize achieving cost critical while heights Simple base. cut We marketing. slash thoughtfully new just our are and is way costs to

containment like organization. properly operational more reducing annualized in across certain incentivized other impact be long-term was our will XXXX companies, and marketing productivity work spend renegotiated the We done emerging out in than way easy XX%. cash the that leverage equivalent overall hard have to cost that. on not the growth. that's costs believe We've XXXX. We've relationships, can what Now consolidated a damaging done roughly it and vendor We've by vendors, in tools profitable

role flow, we million sheet million cash subscriber and us debt. and out nearly free and other full flow World and in Tigers Month, Taste: series Earth text, baton and strength at the to $XX spectrum well to our specials original great $X.X thousands appeal, content Flavor the series believe zero Brady ended colleague, XXXX content The landmark of of with our favorable direct original us period Planet. Throughout our are rationalized equivalents the my make launched agreements, and our multi-third-party Wings: original across tens continued adjusted of groundbreaking factual, series premiere to we attributes Tracker's structure War Week, code in new in On front, pass the the the including currency like video look a Life, believe deliciousness; evolutionary of the programming and and licensable series, the exceptional balance we the Two and cost XXth by Sun; our that air like including I'm to extensive of that Skies, three-part of our cash we of the deep premiere wars with uniquely series for as Claws the Jaws D-Day. In and We new closing, base pacific, flexibility. I'd Nepal; and released in quarter, original projected of anchored The to stand of the long-term our strong and & friend provide broad anchored raw images, premiere initiatives, X-part special in Hayden. with sustainable monetizable Summer platforms, direct chronicling delighted The again by and anniversary library we now positive and global original many Fateful Diary: the a Doc-busters and and as cash the reinforce our premiere of transcripts, our data current that footage Europe the programs campaign, our of audio sets quarter, environment. Moreover, continue public several like company for generated

Phillip Hayden

Thank good you, Clint, everyone. and afternoon,

history. foundation focused company, on in are shareholder successfully all, taking finance the the pivotal prudent grateful company's profitable Having now organization be growth the of a let value say squarely the reins financial just creating that First of such we I'm allocation. me to through the and reinforced at time capital of

have of past shareholders cash even repurchases. X share positive and this our the quarters, have see thanks cash sheet We cash moving through dividend to In returning clear journey. to demonstrated we a increased after And we flow, already balance forward. our and of progress our each balances strong on wealth possibilities

range. the and compared year a flow seventh million As near ago at straight by milestone achieved continued guidance improved to cash $XX.X line. free our million $X.X of second also range. as in adjusted adjusted our million, in cash improved million end another EBITDA quarter the flow of Clint the history, this $X.X the was free and the of sequential $XX.X metric. Revenue free came second million flow said, we focus highest of our bottom our we quarter as quarterly guidance the adjusted represented company's in cash by our This and high improvement on intense for midpoint $X.X quarter the Adjusted in

of XX% Second quarter lower significant from by well XX% margin driven content as revenues. cash-based as year ago, gross reductions amortization a cost our increased of in

Our in services, XX% cost gets year the to cash gross quarter XX% the at amortization, excluding margin, a which compared was of ago. delivering really content

quarter million, out from last the year to began from was the the up revenue quarter increase rolling X% from direct as we and a price we generated ago benefit our year. XX% largest first category Our business, in which $X.X continued

bundled driven inherently $X.X deals other distribution an in categories, to ago. additional was of continues This content and Our revenue the million be generated licensing $X.X the lumpy the this by compared to a as licensing, timing million year quarter change mostly of business. part content

our XX% down Turning transformation as workforce ago second $X optimization as we of a to spending back quarter as G&A and efforts. million, reductions to the from our well realize was continue expenses. planned benefits finance year

dollars. Adjusted and million of million $X quarter to the EBITDA our year deploying ago from XX% our loss advertising ago. a in $X.X as expense customer quarter we Second loss marketing $X was of compared million declined efficiency million in year a increased a $X.X acquisition

million with expect in with And breakeven our dividend is While $X.X first quarters. with cash in will continue repurchased On was to June $X.X million June value debt. going to the we of the that paid cash and in had of million metric, strategically and and April, that repurchase a we adjusted equivalents assets, course, $X believe XX, year to of as flow We back remained continue ended improve end our $X.XX of note buy and this total our regard approved of we sheet we approximately of adjusted stock for compared through per provide guidance in the as million book we and or free earlier, ago. We, million great share the believe share. One we margins shape coming announced we June, balance EBITDA to quarter. plan forward. mentioned million. within our million up $XX of reach $X.X common had a $XX.X XX,XXX second our shares Board no quarter we with a of shares on $XX liabilities negative $XX to And million don't outstanding final

guidance. quarter third to Moving

in of questions. to in $XX we to $X.X range that, expect and $X million to can the the operator, We million call million. With flow open of range revenue million the adjusted $XX cash free

Operator

Laura & first from of Our comes Needham question Instructions] with Company. line [Operator the Martin

Laura Martin

Okay.

AI trying the about gave doing rights you you list license a long to thought of by generative the that you chance? language large models any just you assets own So own. in Have anything to

Clint Stinchcomb

AI that to for Thank we're Google and have from about as we have models. last and that. When and OpenAI scope companies footage. lot well clearly, to and it would the we X that we publishing And between position consider question, there over you of the feel and Laura. And licensing assets the reading companies we that over in agreements Informa about interest I of their started we a Shutterstock. like of data that is many an Getty Images been Microsoft and train generative to say I hours relates and various have, with to of really XXX,XXX entered we raw the have, think sets in -- good that the months X And Reddit Runway

programs. We over XX,XXX have finished

X,XXX-plus programs. have We audio

We code. lot have a of

We tech appealing. that lot of of -- hundreds rather we of is hundreds images, have a lot thousands understand content questions, and and tests of review a

well exists with other partners, and purposes think derivative I aware we're negotiate try I even for fair traditional and licensing exchanges the of exchange the opportunity we and licensing and training the in down for as exchanges. good think that road So just value to

that right And about not we'll that continuing meaningful grow direct likely that on see is of our So yes, a we're opportunity. business, as do something certainly exclusion on our focused really more at -- next much but we the to it's that talk now, obviously, call.

Laura Martin

Okay. That's then cost control. And great really you FTEs? offshoring helpful. any your Are super of

Clint Stinchcomb

not like They're what our done activity. But engineering organization our months yes, in Head of Engineering last had some of FTEs. offshoring people over are we've the and around that think I job should reimagining look terrific really -- just we've done really we some talented leveraging world. Well, -- X has the a

Laura Martin

Okay.

that show Is So headcount, they're up they the full-time at basically. idea? like don't contractors the

Clint Stinchcomb

mean That's by the offshore of like. we as and engineers right. FTEs the part who sort people there are some were of we I workforce, -- replaced did whose optimizing functions were -- obviously, now

Operator

Our next from the Goss Research. of question with Jim comes Barrington line

James Goss

right. All

the up comps year guidance first behind you little ago for driving Could third to about looks a controls. of what's with declines? quarter that? revenue same. your from made a little were revenue couple The the a the it least down What bit be is talk Obviously, quarters, at cost you've and

Clint Stinchcomb

And ground. how guardrails grow licensing today. we're continue relatively We're think, we all look direct think think in the I around that grow revenue to that our put spending. from parts think And cash with if companies. is, actually, news we some revenue that XXXX conservative our real, various in put cash of roots revenue some really, noncash Jim, and at going our trying XXXX for I project in to will revenue XXXX, revenue. you We confident that our do to our exceed helpful the actually continue be we're good as to I we've

James Goss

becoming might that on you? little VIZIO are a out areas working getting Okay. other well, is and on think one at channel, FAST more you're And the if is maybe you JVs update that for could partnerships you commonplace, the look to you focusing work -- extent how of the that that

Clint Stinchcomb

U.K., and U.S. for in you It's great with And with last a that, in I that Thank the out just we've the VIZIO launched Tubi several question. And U.S. in few countries we yes, even in June. the in the Yes. weeks, you tell our in asking AVOD Jim. with Europe. with in Pluto late content rolled will Samsung

then long is you a it time as do, get can time content launched a your your even to and or So to in channels deals published take after place. agreement long take those an know,

bit a PayTV we're what's our channel even happening there's excited with our partner, on So turned there. But possible of over and there. there time. what's in Fetch, recently a PayTV with Australia about We lag advertising

So the to will the Estrella, in platforms. In that excuse certainly revenue, to a U.S. continue work with on them I predictable There's then publish will lag the JV. that a actually them, past. healthy X top in to We more just developed getting advertising and in them -- that been Español, be then Curiosity Samsung necessarily having world, Animales. of all is it's we and did media and frankly. durable with companies a deal are quite done JVs, and their with regard Hispanic and grow our the mean, content and than launching well, we've it organizations from of Motores channels getting working me, And pretty Curiosity and I with would Curiosity as characterize it

about it excited work we're that. makes with sense. partners So And where we'll

for we whose have AVOD, exploitation for agreements. into and exploitation content structure broader in partners incorporate licensing our We on even various various FAST on

work So fruit quite I here optimistic area. quietly lot will been time. We're a that, in doing think over of we've that bear that

James Goss

last Okay. has have the bit a more exhibitors theatrical alternative been one. on content than One case. The historically focused

theatrical to back have, theatrical be might is the come a And of to be or either or X to have any if an to it films. that a alternative to edited the you that starts So pushed content would think fresh you as extent. itself like was content content or series video what quality curious of greater fit in getting I But audio X you might content setting? applicable lend the

Clint Stinchcomb

Yes.

extremely quality don't I think take I that content issue measurement, that as any I of quality. standard we high have, It's, with objective can the anybody that. far by as think, of think

for X in going asked, companies, have are generative the of is large back you you and in of what they case, they the video, sort it that will looking XK. HD, And is what our meaning question to Laura quality talk AI we really content tell of that things, when or to is a XK kind

we of a theatrical of the to a to quarter well have that the licensing new last we will is looking like consignment would And licensed a out of They're looking that. imagery, that We regard also sort have content the that's obviously, But asset to they're money at from in that into. And also in. interesting. work And have, XK. blessed to a something figure a the our to I hard class at opportunities also X do. In based diversity which looking I way think that, library we one to which is some on for which been constantly is QX, of we're what release. we footage, We've few raw amount doing for was areas volume, within to time put space partner content have. license we're built suited. having where say in content do our to example looked make content being new deals we is It's did

with the in deals And last broadcast at Jim, a worked consignment, X we'll that So of more or I'll we with we're talk did all couple thing quarter, looking companies there, partners whom we tech I is just public last those. guess about with Asia. say -- I'll never category, licensing

content. and exchange the at our license best can out we economic if it's take And right figure looking at. to ways we display would there, that look the something a always So hard

Operator

Singular next of Research. from the with line comes Our question David Marsh

David Marsh

With might the support to of you about kind get allow the and for just you regards recurring takes talk of can towards end of your to much range, range? terms can the in help next of give a feeling you guidance would revenue please? the the of revenue your how what end us And bottom quarter, that are sense the top puts

Clint Stinchcomb

Yes.

that that's as of great But our continue direct that Thank that in think and annualized an you, to fill alone in question. I to grow continues operating we our on And annualized my remarks, I'll next will here. quarter a that as itself -- believe an covers stage basis mentioned beginning well. at it is I Brady grow, covers our and the let revenue annualized today, basis, of it a cost. and where on at

of And everything a in It's surprise around licensing partners above broad calculus. have a say, is what's case, to there's there robust enthusiastic that of great to a there. a September about okay, no range with so will our is, ultimate XX. number many really content the a Like close which in is margin. Like conversations of business. you anybody. We're outcomes we're but just the predict of by outcomes the and And those we okay, that's world, little harder of these,

some then is way And a bit in a at end guess, come then come maybe I so the top you little and it. good to above. not What If end, we're if potentially the would even earlier, say at later, we're in they say, top Brady?

Phillip Hayden

No. Yes.

would it. easier push perhaps with That the of the become on distribution of or you even It's range bundled the licensing of if direct, to the it gets the other pretty the above near and top content the business, And some to it's spot those the that say in certainly recurring. categories, would predict. including probably I bottom range, both take of revenue, timing transactions you has partner and you're or direct advertising just Dave, think, I question. even is -- DTC our easy the

David Marsh

gross super then appreciate mean, years. I that going kind forward? gross I Laura's question, And really the guess, cost as margin, margin echo mean, gross helpful. is Is last quarter just what retrench mid-XXs? and be sustainable the amazing, looking just comments, of I cause is back a That back look like into super, that. I of to the types relative this at Okay. couple margin the rate to super it is And might other control we things would to of this

Clint Stinchcomb

take really and a Yes. without we But I'll as -- Brady that, margin accounting relates a in Brady, I'll continue cost help we that we And But as to best handful coming do ultimately cash color. hand of help in see already X that our any bit doubt, to help us think just having seeing for tools areas just on little to it -- marketing, we up can because internally, a the over there whereas editing, Dave. focus significantly. -- emergence work the additional some well. available interesting been can really that the efficiency enhance to we revenue that than on to are here hard vendor there, And longer agreements months yields a And next opportunities we're AI, relatively in side. other have tend as over of results. could the then that improve

you'll on levels, an from see our I that many EBITDA content quarters. see, profile over you'll just next to the like our improve even a continue think standpoint based amortization

Phillip Hayden

side a content sales, publish will some on continue acquire that and cash-based both which amortization and there. anticipate at at we it next to of essentially yes, But and our we've point. content, cost would the flat -- there our months. model, few new there's we some certainly, amortization on would would number content over improvements just the seen I some floor Yes, say would keep decline that Obviously,

David Marsh

up we'll guys. to there, Keep you good job Great work, talk again. and the

Clint Stinchcomb

Thank you, Dave.

Phillip Hayden

Dave. Thanks,

Operator

And for today's question-and-answer our conclude that, will with your we conclude all participation. call. Thank conference This will session. you

may now disconnect. You

CuriosityStream (CURI) 13 Aug 242024 Q2 Earnings call transcript