- Third Consecutive Quarter of Positive Net Cash from
Operating Activities
- Achieved Highest Quarterly Adjusted Free Cash Flow of $2.6
Million
- Repurchased over 173 Thousand Shares
- Declared $0.025 Per Share Dividend
CuriosityStream Inc. (NASDAQ: CURI), a global factual
entertainment company, today announced its financial results for
the quarter ended September 30, 2024. In addition, the Company’s
Board of Directors declared a quarterly cash dividend of $0.025 per
share, payable on March 28, 2025, to stockholders of record on
March 14, 2025.
"Curiosity delivered excellent results in Q3, our eighth
consecutive quarter of increased adjusted free cash flow and our
third consecutive positive quarter. We entered into new and
additional U.S. and international distribution relationships with
Amazon, Samsung, Vizio, Vodafone and several others," said Clint
Stinchcomb, President & CEO of CuriosityStream. "Continuing our
commitment to return capital to shareholders, we repurchased 173
thousand shares as part of the share repurchase program we
announced in Q2, and we issued a dividend of $0.025 per share. We
continue to improve our operating efficiencies, as reflected in our
expanded gross and adjusted EBITDA margins during the quarter.
Looking forward, we anticipate continued sequential growth in
overall top-line revenue driven by subscriptions, licensing and
advertising with free cash flow consistent with our most recent
quarters."
Third Quarter 2024 Financial Results
- Revenue of $12.6 million, compared to $15.6 million in the
third quarter of 2023;
- Gross profit of $6.8 million, compared to $7.1 million in the
third quarter of 2023;
- Total advertising and marketing and general and administrative
expenses of $10.0 million, compared to $12.1 million in the third
quarter of 2023;
- Net loss of $3.1 million, compared to net loss of $26.6 million
in the third quarter of 2023;
- Adjusted EBITDA loss of $0.4 million, compared to Adjusted
EBITDA loss of $3.9 million in the third quarter of 2023;
- Net cash provided by operating activities of $5.1 million,
compared to net cash used in operating activities of $13.6 million
in the third quarter of 2023;
- Adjusted Free Cash Flow of $2.6 million, an improvement of $5.6
million from the third quarter of 2023;
- Cash, restricted cash and held-to-maturity securities balance
of $39.8 million and no debt as of September 30, 2024.
Third Quarter 2024 Business Highlights
- Launched four FAST Channels with Samsung TV+ in the U.S. and
Internationally.
- Global AVOD expansion with Pluto U.S., Tubi UK, Tubi Canada and
Roku Latin America.
- Launched Curiosity PAY TV Channel with several MVPD partners in
Europe and Latin America.
- Launched Curiosity University on Prime Video in the U.S. as an
add-on subscription for $8.95 per month. With a roster of
luminaries including Pulitzer Prize-winning authors and department
chairs at many of the world’s most prestigious universities,
Curiosity University offers a deep library of lectures,
documentaries, and courses that combine academic rigor with
compelling storytelling.
- Executed nine content licensing agreements across the U.S.,
Europe, Middle East and Latin America.
- Partnered with Shell to offer Shell Recharge app users in the
Netherlands free access to Curiosity Stream. Shell Recharge app
users now have immediate access to Curiosity Stream’s extensive
library of films and series exploring science, nature, history,
technology, and more.
- Announced a strategic distribution partnership with Off The
Fence, the nonfiction production and distribution powerhouse with a
catalog of over 6,000 hours of quality programming. The
collaboration supports the licensing of part of Curiosity’s content
portfolio in China, Hong Kong, and Macau, bringing 56 unique
titles, amounting to 148 hours of premium factual content, to
audiences across these territories through various platforms.
- Expanded Summer Doc-Busters programming and promotion campaigns
to drive viewership of Curiosity’s biggest original series,
including The Real Wild West, Asteroid Rush, Planet Insect, GIANTS,
and Connections with James Burke.
- Released three new specials from the acclaimed original series
Ancient Engineering highlighting landmark achievements throughout
Egypt, China and the Middle East.
- Premiered groundbreaking new science, history and nature
specials including Spider Vision: Decoding Color, The Science of
Movement, Cute Little Killers, Mystery of the Celtic Tomb and
Little Penguin Love Island.
Financial Outlook
CuriosityStream expects the following for the fourth quarter of
2024:
- Revenue within the range of $12.0 - $14.0 million
- Adjusted Free Cash Flow1 within the range of $2.0 - $3.0
million
1 See Non-GAAP Financial Measures below.
Conference Call Information
CuriosityStream will host a Q&A conference call today to
discuss the Company’s third quarter 2024 results at 5:00 p.m.
Eastern Time (2:00 p.m. Pacific Time). A live audio webcast of the
call will be available on the CuriosityStream Investor Relations
website at https://investors.curiositystream.com. Participants may
also dial-in toll free at (888) 510-2008 or International at (646)
960-0306 and reference conference ID# 3957505. An audio replay of
the conference call will be available for two weeks following the
call on the CuriosityStream Investor Relations website at
https://investors.curiositystream.com.
Forward-Looking Statements
Certain statements in this press release may be considered
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995 including, but not limited
to, CuriosityStream’s expectations or predictions of future
financial or business performance or conditions, consumers’
valuation of factual content, and the Company’s continued success.
Forward-looking statements are inherently subject to risks,
uncertainties and assumptions. Generally, statements that are not
historical facts, including statements concerning possible or
assumed future actions, business strategies, events or results of
operations, are forward-looking statements. These statements may be
preceded by, followed by or include the words “believes,”
“estimates,” “expects,” “projects,” “forecasts,” “may,” “will,”
“should,” “seeks,” “plans,” “scheduled,” “anticipates,” “predicts”
or “intends” or similar expressions. Such forward-looking
statements involve risks and uncertainties that may cause actual
events, results or performance to differ materially from those
indicated by such statements. Certain of these risks are identified
and discussed under “Risk Factors” in CuriosityStream’s Annual
Report on Form 10-K for the year ended December 31, 2023, that
CuriosityStream filed with the Securities and Exchange Commission
(the “SEC”) on March 25, 2024, and in CuriosityStream’s other SEC
filings. These risk factors are important to consider in
determining future results and should be reviewed in their
entirety.
Forward-looking statements are based on the current belief of
the management of CuriosityStream, based on currently available
information, as to the outcome and timing of future events, and
involve factors, risks, and uncertainties that may cause actual
results in future periods to differ materially from such
statements. However, there can be no assurance that the events,
results or trends identified in these forward-looking statements
will occur or be achieved. Forward-looking statements speak only as
of the date they are made, and CuriosityStream is not under any
obligation, and expressly disclaims any obligation to update, alter
or otherwise revise any forward-looking statement, whether as a
result of new information, future events or otherwise, except as
required by law. Readers should carefully review the statements set
forth in the reports that CuriosityStream has filed or will file
from time to time with the SEC.
In addition to factors previously disclosed in CuriosityStream’s
reports filed with the SEC and those identified elsewhere in this
communication, the following factors, among others, could cause
actual results to differ materially from forward-looking statements
or historical performance: (i) risks related to CuriosityStream’s
ability to maintain and develop new and existing revenue-generating
relationships and partnerships or to significantly increase
CuriosityStream's subscriber base and retain customers; (ii) the
effects of pending and future legislation; (iii) risks of the
internet, online commerce and media industry; (iv) the highly
competitive nature of the internet, online commerce and media
industry and CuriosityStream’s ability to compete therein; (v)
litigation, complaints, and/or adverse publicity; and (vi) privacy
and data protection laws, privacy or data breaches, or the loss of
data.
Non-GAAP Financial
Measures
To supplement our unaudited consolidated statement of
operations, which is prepared in accordance with GAAP, we present
Adjusted EBITDA and Adjusted Free Cash Flow in this press release.
Our use of non-GAAP financial measures, such as Adjusted EBITDA and
Adjusted Free Cash Flow, has limitations as an analytical tool, and
these measures should not be considered in isolation or as a
substitute for analysis of financial results as reported under
GAAP.
The Company is not able to provide expectations of net cash
generated from operating activities, the closest comparable GAAP
measure to Adjusted Free Cash Flow (a non-GAAP measure), on a
forward-looking basis. The Company is unable to predict without
unreasonable costs and efforts the ultimate amounts of certain cash
receipts and outlays because, in part, such items may have not yet
occurred, are out of the Company’s control and/or cannot be
reasonably predicted. These items are further described in the
reconciliation tables and related descriptions below. Further,
these items are uncertain, depend on various factors and could be
material to the Company’s results computed in accordance with U.S.
GAAP.
We use these non-GAAP financial measures in conjunction with
financial measures prepared in accordance with GAAP for planning
purposes, including in the preparation of our annual operating
budget, as a measure of our core operating results and the
effectiveness of our business strategy, and in evaluating our
financial performance. These measures provide consistency and
comparability with past financial performance, facilitate
period-to-period comparisons of core operating results, and also
facilitate comparisons with other peer companies, many of which use
similar non-GAAP financial measures to supplement their GAAP
results. In addition, Adjusted EBITDA and Adjusted Free Cash Flow
are widely used by investors and securities analysts to measure a
company’s operating performance. We exclude the following items
from net income to calculate Adjusted EBITDA: interest and other
income (expense), provision for income taxes, depreciation and
non-content amortization, loss/(gain) on the change in fair value
of our warrants, equity interests loss (gain), impairment of
goodwill, intangible assets and content assets, restructuring
charges and stock-based compensation. Adjusted Free Cash Flow is
calculated as net cash flow used in operating activities less
purchases of property and equipment, restructuring charges and
nonrecurring license fees.
Investors are cautioned that there are material limitations
associated with the use of non-GAAP financial measures as an
analytical tool. In particular, (1) although depreciation and
amortization expense are non-cash charges, the assets subject to
depreciation and amortization may have to be replaced in the
future, and Adjusted EBITDA does not reflect cash capital
expenditure requirements for such replacements or for new capital
expenditure requirements; (2) Adjusted EBITDA does not reflect: (a)
changes in, or cash requirements for, our working capital needs; or
(b) tax payments that may represent a reduction in cash available
to us; and (3) Adjusted Free Cash Flow does not reflect: (a) our
cash flow available for discretionary payments; (b) our future
contractual commitments (such as any debt service requirements or
dividend payments); (c) funds available for investment or other
discretionary uses; (d) certain capital expenditure requirements;
or (e) the total increase or decrease in our cash balances for the
stated period. The non-GAAP financial measures we use may be
different from non-GAAP financial measures used by other companies,
limiting their usefulness for comparison purposes. We compensate
for these limitations by providing specific information regarding
the GAAP items excluded from these non-GAAP financial measures. A
reconciliation of these non-GAAP financial measures has been
provided in the financial statements tables included in this press
release and investors are encouraged to review the
reconciliation.
About Curiosity Inc.
Curiosity Inc. is the entertainment brand for people who want to
know more. The global media company is home to award-winning
original and curated factual films, shows, and series covering
science, nature, history, technology, society, and lifestyle. With
millions of subscribers worldwide and thousands of titles, the
company operates the flagship Curiosity Stream SVOD service,
available in more than 175 countries worldwide; Curiosity Channel,
the linear television channel available via global distribution
partners; Curiosity University, featuring talks from the best
professors at the world's most renowned universities as well as
courses, short and long-form videos, and podcasts; Curiosity Now,
Curiosity Español, and other free, ad-supported channels; Curiosity
Audio Network, with original content and podcasts; and Curiosity
Studios, which oversees original programming. Curiosity Inc. is a
wholly owned subsidiary of CuriosityStream Inc. (Nasdaq: CURI). For
more information, visit CuriosityStream.com.
CuriosityStream Inc.
Consolidated Balance
Sheets
(in thousands, except par value)
September 30,
2024
December 31,
2023
(Unaudited)
Assets
Current assets
Cash and cash equivalents
$
9,588
$
37,715
Restricted cash
125
500
Short-term investments in debt
securities
23,621
—
Accounts receivable
4,500
4,760
Other current assets
1,260
2,315
Total current assets
39,094
45,290
Investments in debt securities
6,513
—
Investments in equity method investees
4,179
6,354
Property and equipment, net
492
727
Content assets, net
33,885
44,943
Operating lease right-of-use assets
3,137
3,350
Other assets
267
358
Total assets
$
87,567
$
101,022
Liabilities and stockholders’
equity
Current liabilities
Content liabilities
$
499
$
407
Accounts payable
3,842
4,765
Accrued expenses and other liabilities
4,873
3,705
Deferred revenue
11,347
14,521
Total current liabilities
20,561
23,398
Warrant liability
110
44
Non-current operating lease
liabilities
3,990
4,283
Other liabilities
691
651
Total liabilities
25,352
28,376
Stockholders’ equity
Common stock, $0.0001 par value – 125,000
shares authorized as of September 30, 2024, and December 31, 2023;
55,670 shares issued as of September 30, 2024, including 195
treasury shares; 53,287 issued and outstanding as of December 31,
2023; 55,475 shares outstanding as of September 30, 2024.
5
5
Treasury stock
(218
)
—
Additional paid-in capital
366,614
362,636
Accumulated deficit
(304,186
)
(289,995
)
Total stockholders’ equity
62,215
72,646
Total liabilities and stockholders’
equity
$
87,567
$
101,022
CuriosityStream Inc.
Consolidated Statements of
Operations
Three Months Ended
September 30, 2024
Nine Months Ended
September 30,
(unaudited and in thousands except per
share amounts)
2024
2023
2023
2022
Revenues
$
12,604
$
15,630
$
37,000
$
42,114
Operating expenses
Cost of revenues
5,840
8,494
18,592
27,428
Advertising and marketing
3,590
5,106
9,676
12,424
General and administrative
6,426
6,959
18,187
22,998
Impairment of content assets
—
18,970
—
18,970
15,856
39,529
46,455
81,820
Operating loss
(3,252
)
(23,899
)
(9,455
)
(39,706
)
Change in fair value of warrant
liability
(36
)
74
(66
)
184
Interest and other income
538
31
1,702
856
Equity method investment loss
(267
)
(2,638
)
(2,175
)
(5,092
)
Loss before income taxes
(3,017
)
(26,432
)
(9,994
)
(43,758
)
Provision for income taxes
45
133
134
479
Net loss
$
(3,062
)
$
(26,565
)
$
(10,128
)
$
(44,237
)
Net loss per share
Basic
$
(0.06
)
$
(0.50
)
$
(0.19
)
$
(0.83
)
Diluted
$
(0.06
)
$
(0.50
)
$
(0.19
)
$
(0.83
)
Weighted average number of common
shares outstanding
Basic
54,850
53,040
53,920
52,999
Diluted
54,850
53,040
53,920
52,999
CuriosityStream Inc.
Consolidated Statements of
Cash Flows
Nine Months Ended September
30,
(unaudited and in thousands)
2024
2023
Cash flows from operating
activities
Net loss
$
(10,128
)
$
(44,237
)
Adjustments to reconcile net loss to net
cash used in operating activities
Change in fair value of warrant
liability
66
(183
)
Additions to content assets
(3,412
)
(14,074
)
Change in content liabilities
92
(2,734
)
Amortization of content assets
14,470
17,707
Depreciation and amortization expenses
285
370
Impairment of content assets
—
18,970
Amortization of premiums and accretion of
discounts associated with investments in debt securities, net
(166
)
26
Stock-based compensation
4,734
3,586
Equity method investment loss
2,175
5,092
Other non-cash items
359
362
Changes in operating assets and
liabilities
Accounts receivable
260
4,022
Other assets
1,096
1,737
Accounts payable
(728
)
903
Accrued expenses and other liabilities
(658
)
(3,947
)
Deferred revenue
(3,329
)
(1,230
)
Net cash provided by (used in) operating
activities
5,116
(13,630
)
Cash flows from investing
activities
Purchases of property and equipment
—
(5
)
Investment in equity method investees
—
(992
)
Maturities of investments in debt
securities
—
15,000
Purchases of investments in debt
securities
(29,968
)
—
Net cash (used in) provided by investing
activities
(29,968
)
14,003
Cash flows from financing
activities
Repurchases of common stock
(218
)
—
Dividends paid
(2,676
)
—
Payments related to tax withholding
(756
)
(76
)
Net cash used in financing activities
(3,650
)
(76
)
Net increase in cash, cash equivalents
and restricted cash
(28,502
)
297
Cash, cash equivalents and restricted
cash, beginning of period
38,215
40,507
Cash, cash equivalents and restricted
cash, end of period
$
9,713
$
40,804
Supplemental disclosure:
Cash paid for taxes
$
71
$
144
Cash paid for operating leases
$
416
$
360
CuriosityStream Inc.
Reconciliation from Net Loss
to Adjusted EBITDA
Three Months Ended
September 30,
Nine Months Ended
September 30,
(unaudited and in thousands)
2024
2023
2024
2023
Net loss
$
(3,062
)
$
(26,565
)
$
(10,128
)
$
(44,237
)
Change in fair value of warrant
liability
36
(74
)
66
(184
)
Interest and other (income) expense
(538
)
(31
)
(1,702
)
(856
)
Provision for Income taxes
45
133
134
479
Equity method investment loss
267
2,638
2,175
5,092
Depreciation and amortization1
75
121
285
370
Restructuring2
3
—
218
—
Impairment of content assets
—
18,970
—
18,970
Other nonrecurring
47
—
113
—
Stock-based compensation
2,720
897
4,734
3,586
Adjusted EBITDA
$
(407
)
$
(3,911
)
$
(4,105
)
$
(16,780
)
1 These amounts do not include
amortization of content assets.
2 Consists primarily of severance and
workforce optimization expenses resulting from a 2024 reduction in
force.
CuriosityStream Inc.
Reconciliation from Net Cash
Flow used in Operating Activities to Adjusted Free Cash
Flow
Three Months Ended
September 30,
Nine Months Ended
September 30,
(unaudited and in thousands)
2024
2023
2024
2023
Net cash flow provided by (used in)
operating activities
$
2,260
$
(3,022
)
$
5,116
$
(13,630
)
Purchases of property and equipment
—
—
—
(5
)
Restructuring payments1
142
—
823
—
Other nonrecurring payments2
171
—
281
—
Adjusted Free Cash Flow
$
2,573
$
(3,022
)
$
6,220
$
(13,635
)
1 Consists primarily of severance and
workforce optimization payments resulting from 2023 and 2024
reductions in force.
2 Consists primarily of payments related
to license fees and risk mitigation efforts.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241106011709/en/
CuriosityStream Investor Relations Vanessa Gillon
IR@CuriosityStream.com
CuriosityStream (NASDAQ:CURI)
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