Curiositystream (CURI) Q2 2024 earnings summary

Executive summary

• Achieved record adjusted free cash flow of $2.5 million in Q2 2024, more than doubling Q1 2024 and marking a $7 million year-over-year improvement.

• Q2 2024 revenue was $12.4 million, down 12% year-over-year, with net loss narrowing to $2.0 million, an 80% improvement from Q2 2023.

• Direct revenue grew 17% year-over-year and 3% sequentially, offsetting declines in licensing and bundled distribution.

• Ended the quarter with $39.6 million in cash and equivalents, no debt, and continued cost rationalization, reducing annualized operational expenses by over 30%.

• Initiated a $4 million share repurchase program, declared a $0.025 per share dividend, and continued to pay regular quarterly dividends.

Financial highlights

• Q2 2024 revenue: $12.4 million (down from $14.1 million in Q2 2023); gross profit rose to $6.4 million from $4.2 million.

• Net loss narrowed to $2.0 million from $9.6 million year-over-year; adjusted EBITDA loss improved to $1.0 million from $6.5 million.

• Operating expenses decreased to $8.9 million from $12.2 million; G&A expenses fell 25% to $6 million, and advertising/marketing dropped 29% to $3 million.

• Gross margin improved to 52% from 33% a year ago, with cash-based gross margin at 89%.

• Net cash provided by operating activities was $2.9 million in H1 2024, versus net cash used of $10.6 million in H1 2023.

Outlook and guidance

• Q3 2024 revenue expected between $12 million and $14 million; adjusted free cash flow guidance is $1.5 million to $3 million.

• Management anticipates continued positive cash flow, operational efficiency, and break-even adjusted EBITDA within reach.

• Ongoing focus on growing subscriber base, price increases, and expanding service offerings to maximize subscriber lifetime value.