Curiositystream (CURI) Q3 2024 earnings summary

Executive summary

• Achieved highest ever quarterly adjusted free cash flow at $2.6 million, marking the eighth consecutive quarter of improvement and third consecutive quarter of positive free cash flow.

• Net loss narrowed to $3.1 million from $26.6 million year-over-year, mainly due to lower operating expenses and absence of prior-year content impairment charges.

• Direct Business revenue increased 13% year-over-year for both the quarter and nine-month period, offsetting declines in Content Licensing and Bundled Distribution.

• Expanded global distribution and launched new programming and partnerships, including with Amazon, Samsung, Vizio, Vodafone, and Shell.

• Repurchased over 173,000 shares and declared a $0.025 per share dividend.

Financial highlights

• Q3 revenue was $12.6 million, down from $15.6 million year-over-year but up from $12.4 million in Q2.

• Adjusted EBITDA loss narrowed to $0.4 million from $3.9 million a year ago; adjusted free cash flow improved by $5.6 million.

• Gross margin rose to 54% from 46% a year ago; cash-based gross margin reached 90% versus 80% last year.

• Net cash provided by operating activities was $5.1 million for the nine months ended September 30, 2024, compared to net cash used of $13.6 million in the prior year period.

• Cash, restricted cash, and held-to-maturity securities totaled $39.8 million with no debt at quarter end.

Outlook and guidance

• Q4 revenue expected in the range of $12–$14 million; adjusted free cash flow guidance of $2–$3 million.

• Management expects current cash levels and liquid investments to be adequate for ongoing operations, capital expenditures, dividends, and working capital for at least the next twelve months.

• Anticipates meaningful licensing agreements with 20–30 new partners in coming quarters and expects advertising revenue to become material next year.