CuriosityStream Inc. (NASDAQ: CURI), a global factual
entertainment company, today announced its financial results for
the fourth quarter and fiscal year ended December 31, 2023. In
addition, the Company’s Board of Directors declared a quarterly
cash dividend of $0.025 per share, with the first dividend payable
on April 30, 2024, to stockholders of record on April 12, 2024.
With the initiation of a cash dividend program, CuriosityStream
intends to pay regular quarterly dividends.
“Our fourth quarter revenue results met our guidance range while
adjusted free cash flow exceeded our guidance range, and we
delivered sequential revenue growth in our Direct Business. We
continued to decrease our cost base, as we achieved our fifth
straight quarter of sequential adjusted free cash flow
improvement,” said Clint Stinchcomb, President & CEO. “Looking
forward, we will be guiding to positive adjusted free cash flow for
the first quarter of 2024, and we believe the initiation of the
dividend program, which will be paid from excess cash, underscores
our positive outlook for cash flow in 2024.”
Fourth Quarter 2023 Financial Results
- Revenue of $14.8 million, compared to $14.5 million in the
fourth quarter of 2022;
- Gross profit of $6.7 million, compared to $1.4 million in the
fourth quarter of 2022;
- Total advertising and marketing and general and administrative
expenses of $11.4 million, a 32% year-over-year reduction;
- Net loss of $4.7 million, compared to net loss of $14.5 million
in the fourth quarter of 2022;
- Net cash used in operating activities of $2.5 million, compared
to net cash used in operating activities of $8.8 million in the
fourth quarter of 2022;
- Adjusted Free Cash Flow of $(2.4) million, compared to Adjusted
Free Cash Flow of $(8.8) million in the fourth quarter of
2022;
- Adjusted EBITDA of $(3.4) million, compared to Adjusted EBITDA
of $(13.6) million in the fourth quarter of 2022; and
- Cash and restricted cash balance of $38.2 million and no debt
as of December 31, 2023.
Full Year 2023 Financial Results
- Revenue of $56.9 million, compared to $78.0 million in
2022;
- Gross profit of $21.3 million, compared to $26.5 million in
2022;
- Total advertising and marketing and general and administrative
expenses of $46.8 million, a 40% year-over-year reduction;
- Net loss of $48.9 million, compared to net loss of $50.9
million in 2022;
- Net loss included a $19.0 million charge related to the
impairment of content assets;
- Net cash used in operating activities of $16.2 million,
compared to net cash used in operating activities of $39.5 million
in 2022;
- Adjusted Free Cash Flow of $(16.2) million, compared to
Adjusted Free Cash Flow of $(39.7) million in 2022; and
- Adjusted EBITDA of $(20.2) million, compared to Adjusted EBITDA
of $(44.3) million in 2022.
Full Year 2023 Business Highlights
- Premiered multiple groundbreaking original series and specials,
including The Real Wild West, Deadly Science, The True Story of
Pirates, Lift the Ice, Vikings: The Lost Kingdom, GIANTS, 2023:A
Space Odyssey, History: The Interesting Bits, CSI On Trial,
Nature's Hidden Miracles, Queens of Ancient Egypt, Rescued
Chimpanzees of the Congo with Jane Goodall, Search for Earth’s Lost
Moon, Scary Tales of New York, Connections with James Burke, AI
Tipping Point, Amazing DinoWorld 2 and Top Science Stories
of 2023.
- Signed new licensing, Pay TV and AVOD agreements with several
partners during the year;
- Added hundreds of titles to underserved areas like hosted
series, crime, aviation and automotive, and to core genres like
history, science and tech;
- Launched a series of annual promotional stunts showcasing our
most engaging titles for subscribers across SPACE WEEK, DINO WEEK,
ANCIENT EGYPT WEEK, JAWS & CLAWS WEEK, and EARTH MONTH.
Financial Outlook
CuriosityStream expects the following for the first quarter of
2024:
- Revenue within the range of $11.5 - $12.5 million
- Adjusted Free Cash Flow within the range of $0.25 - $1.00
million
Conference Call Information
CuriosityStream will host a Q&A conference call today to
discuss the Company’s fourth quarter and full year 2023 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, plans to pay
regular dividends, 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 we expect to file with the
Securities and Exchange Commission (the “SEC”) on or about March
22, 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; (vi) the ability
to meet Nasdaq’s listing standards; and (vii) 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.
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 and restructuring charges.
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, a
free, ad-supported channel; 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)
December 31,
2023
December 31,
2022
Assets
Current assets
Cash and cash equivalents
$
37,715
$
40,007
Restricted cash
500
500
Short-term investments in debt
securities
—
14,986
Accounts receivable, net
4,760
10,899
Other current assets
2,315
3,118
Total current assets
45,290
69,510
Investments in equity method investees
6,354
10,766
Property and equipment, net
727
1,094
Content assets, net
44,943
68,502
Operating lease right-of-use assets
3,350
3,702
Other assets
358
539
Total assets
$
101,022
$
154,113
Liabilities and stockholders’
equity
Current liabilities
Content liabilities
$
407
$
2,862
Accounts payable
4,765
6,065
Accrued expenses and other liabilities
3,705
7,752
Deferred revenue
14,521
14,281
Total current liabilities
23,398
30,960
Warrant liability
44
257
Non-current operating lease
liabilities
4,283
4,648
Other liabilities
651
622
Total liabilities
28,376
36,487
Stockholders’ equity
Common stock, $0.0001 par value – 125,000
shares authorized as of December 31, 2023, and December 31, 2022;
53,286 shares issued and outstanding as of December 31, 2023;
52,853 issued and outstanding as of December 31, 2022
5
5
Additional paid-in capital
362,636
358,760
Accumulated other comprehensive loss
—
(40
)
Accumulated deficit
(289,995
)
(241,099
)
Total stockholders’ equity
72,646
117,626
Total liabilities and stockholders’
equity
$
101,022
$
154,113
CuriosityStream Inc.
Consolidated Statements of
Operations
Three Months Ended
December 31,
Year Ended December
31,
(In thousands except per share
amounts)
2023
2022
2023
2022
Revenues
$
14,775
$
14,499
$
56,889
$
78,043
Operating expenses
Cost of revenues
8,125
13,132
35,553
51,536
Advertising and marketing
4,966
9,107
17,390
40,709
General and administrative
6,449
7,616
29,447
37,479
Impairment of content assets
—
—
18,970
—
Impairment of goodwill and intangible
assets
—
—
—
3,603
Total operating expenses
19,540
29,855
101,360
133,327
Operating loss
(4,765
)
(15,356
)
(44,471
)
(55,284
)
Change in fair value of warrant
liability
29
552
213
5,404
Interest and other income (expense)
416
740
1,272
176
Equity method investment loss
(312
)
(280
)
(5,404
)
(846
)
Loss before income taxes
(4,632
)
(14,344
)
(48,390
)
(50,550
)
Provision for income taxes
27
202
506
367
Net loss
$
(4,659
)
$
(14,546
)
$
(48,896
)
$
(50,917
)
Net loss per share
Basic
$
(0.09
)
$
(0.28
)
$
(0.92
)
(0.96
)
Diluted
$
(0.09
)
$
(0.28
)
$
(0.92
)
(0.96
)
Weighted average number of common
shares outstanding
Basic
53,071
52,811
53,044
52,787
Diluted
53,071
52,811
53,044
52,787
CuriosityStream Inc.
Consolidated Statements of
Cash Flows
Year Ended December
31,
(In thousands)
2023
2022
Cash flows from operating
activities
Net loss
$
(48,896
)
$
(50,917
)
Adjustments to reconcile net loss to net
cash used in operating activities
Change in fair value of warrant
liability
(213
)
(5,404
)
Additions to content assets
(18,316
)
(34,771
)
Change in content liabilities
(2,455
)
(6,822
)
Amortization of content assets
22,905
39,291
Depreciation and amortization expenses
496
699
Impairment of content assets
18,970
—
Impairment of goodwill and intangible
assets
—
3,603
Amortization of premiums and accretion of
discounts associated with investments in debt securities, net
26
1,191
Stock-based compensation
3,999
6,644
Equity method investment loss
5,404
846
Other non-cash items
481
1,141
Changes in operating assets and
liabilities
Accounts receivable
6,139
11,862
Other assets
855
3,355
Accounts payable
(1,295
)
2,654
Accrued expenses and other liabilities
(4,542
)
(4,645
)
Deferred revenue
270
(8,250
)
Net cash used in operating activities
(16,172
)
(39,523
)
Cash flows from investing
activities
Purchases of property and equipment
(5
)
(130
)
Investment in equity method investees
(992
)
(2,438
)
Sales of investments in debt
securities
—
22,893
Maturities of investments in debt
securities
15,000
43,873
Purchases of investments in debt
securities
—
(1,497
)
Net cash provided by investing
activities
14,003
62,701
Cash flows from financing
activities
Payments related to tax withholding
(123
)
(218
)
Net cash used in financing activities
(123
)
(218
)
Net (decrease) increase in cash, cash
equivalents and restricted cash
(2,292
)
22,960
Cash, cash equivalents and restricted
cash, beginning of period
40,507
17,547
Cash, cash equivalents and restricted
cash, end of period
$
38,215
$
40,507
Supplemental disclosure:
Cash paid for taxes
$
195
$
614
Cash paid for operating leases
$
466
$
486
Right-of-use assets obtained in exchange
for new operating lease liabilities
$
—
$
3,965
CuriosityStream Inc.
Reconciliation from Net Loss
to Adjusted EBITDA
Three Months Ended
December 31,
Year Ended December
31,
(In thousands)
2023
2022
2023
2022
Net loss
$
(4,659
)
$
(14,546
)
$
(48,896
)
$
(50,917
)
Change in fair value of warrant
liability
(29
)
(552
)
(213
)
(5,404
)
Interest and other (income) expense
(416
)
(740
)
(1,272
)
(176
)
Provision for Income taxes
27
202
506
367
Equity method investment loss1
312
280
5,404
846
Depreciation and amortization2
126
126
496
699
Restructuring3
819
—
819
—
Impairment of content assets
—
—
18,970
—
Impairment of goodwill and intangible
assets
—
—
—
3,603
Stock-based compensation
413
1,589
3,999
6,644
Adjusted EBITDA
$
(3,407
)
$
(13,641
)
$
(20,187
)
$
(44,338
)
1 For the year ended December 31, 2023,
the equity method investment losses included impairment charges of
$2.3 million for the Company's investment in Watch Nebula LLC, and
$2.0 million for the Company's investment in Spiegel TV Geschichte
und Wissen GmbH & Co. KG.
2 These amounts do not include
amortization of content assets.
3 Comprised primarily of severance and
workforce optimization costs resulting from a December 2023
reduction in workforce.
CuriosityStream Inc.
Reconciliation from Net Cash
Flow used in Operating Activities to Adjusted Free Cash
Flow
Three Months Ended
December 31,
Year Ended December
31,
(In thousands)
2023
2022
2023
2022
Net cash flow used in operating
activities
$
(2,542
)
$
(8,779
)
$
(16,172
)
$
(39,523
)
Purchases of property and equipment
—
—
(5
)
(130
)
Restructuring payments1
144
—
144
Adjusted Free Cash Flow
$
(2,398
)
$
(8,779
)
$
(16,177
)
$
(39,653
)
1 Consists primarily of severance and
workforce optimization payments resulting from a December 2023
reduction in workforce.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240320702497/en/
CuriosityStream Investor Relations Andrew Lata
IR@CuriosityStream.com
CuriosityStream (NASDAQ:CURI)
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