Financial Position - The Company reported cash and cash equivalents of $9.588 million as of September 30, 2024, down from $37.715 million as of December 31, 2023[48]. - The Company holds equity investments in Spiegel TV Geschichte und Wissen GmbH and Watch Nebula LLC, with total carrying values of $4.179 million as of September 30, 2024, down from $6.354 million as of December 31, 2023[39]. - The Company’s cash and cash equivalents and restricted cash totaled $9.713 million as of September 30, 2024, compared to $38.215 million as of December 31, 2023[48]. - As of September 30, 2024, total cash and cash equivalents amounted to $36,072,000, with Level 1 securities totaling $18,671,000 and Level 2 securities totaling $20,592,000[50]. - The fair value of Private Placement Warrants was not disclosed but is classified as a non-current liability, indicating potential future financial obligations[57]. - The fair value of the warrant liability for the Private Placement Warrants was estimated at $0.03 as of September 30, 2024, compared to $0.01 at December 31, 2023[77]. - As of September 30, 2024, the company had 3,054,203 publicly traded warrants outstanding with an exercise price of $11.50 per share[72]. - The company had authorized the issuance of 126,000,000 shares of capital stock, including 125,000,000 shares of common stock as of September 30, 2024[69]. - The company incurred a net loss of $10.1 million for the nine months ended September 30, 2024, while generating $5.1 million of net cash from operating activities[154]. - The net loss for the nine months ended September 30, 2024, was $10.1 million, down from a net loss of $44.2 million in the same period of 2023[165][166]. Revenue and Earnings - For the three months ended September 30, 2024, total revenues were $12,604,000, a decrease from $15,630,000 in the same period of 2023, with direct-to-consumer revenue contributing $7,750,000, representing 61% of total revenue[58]. - The company recognized $13,400,000 in revenues for the nine months ended September 30, 2024, related to amounts deferred as of December 31, 2023[62]. - Total trade and barter revenues for the three months ended September 30, 2024, were $1,416,000, a decrease of 71.5% compared to $5,199,000 for the same period in 2023[67]. - For the nine months ended September 30, 2024, total trade and barter revenues were $2,504,000, down 69.5% from $8,190,000 in 2023[67]. - For the three months ended September 30, 2024, total revenue was $12.6 million, a decrease from $15.6 million in the same period of 2023, representing a decline of 19%[91]. - Revenue from the United States accounted for 60% of total revenue in Q3 2024, compared to 57% in Q3 2023[91]. - International revenue totaled $5.1 million in Q3 2024, down from $6.7 million in Q3 2023, marking a decrease of 24%[91]. - The company recognized $0.1 million and $0.2 million in revenue from license fees related to the Spiegel Venture for the three and nine months ended September 30, 2024, respectively[92]. - For the nine months ended September 30, 2024, total revenue was $37.0 million, a decrease of $5.1 million, or 12%, compared to $42.1 million in 2023[120]. Expenses and Losses - Operating loss for the three months ended September 30, 2024, was $3.3 million, a decrease of $20.6 million, or 86%, from a loss of $23.9 million in 2023[116]. - The net loss for the three months ended September 30, 2024, was $3,062,000, compared to a net loss of $26,565,000 for the same period in 2023[79]. - Basic and diluted net loss per share for the three months ended September 30, 2024, was $(0.06), an improvement from $(0.50) in 2023[79]. - Operating expenses decreased by $35.4 million, or 43%, for the nine months ended September 30, 2024, compared to the same period in 2023[116]. - Operating expenses for the three months ended September 30, 2024, decreased to $15.9 million, a 60% reduction from $39.5 million in 2023[136]. - Cost of revenues decreased to $5.8 million for the three months ended September 30, 2024, a 31% reduction from $8.5 million in 2023[142]. - General and administrative expenses decreased to $6.4 million for the three months ended September 30, 2024, an 8% decline from $7.0 million in 2023[146]. - The company recorded no impairment charges for content assets for the three and nine months ended September 30, 2024, compared to a $19.0 million impairment charge in the same periods in 2023[147]. Investments and Assets - The Company made a Holdback Payment of $0.9 million to Spiegel TV and Autentic in July 2023 due to the Spiegel Venture achieving certain financial targets[41]. - The Company has not received any dividends from the Spiegel Venture or Nebula as of September 30, 2024[40][46]. - The Company’s investment in Nebula increased to 16.875% as of September 30, 2024, after multiple incremental purchases totaling $0.8 million each[46]. - The revenue share agreement with Nebula expired at the end of 2023 following a notice of non-renewal received on September 26, 2023[47]. - The total content assets decreased from $44,943,000 as of December 31, 2023, to $33,885,000 as of September 30, 2024, reflecting a reduction in both licensed and produced content[53]. - Content amortization for the three months ended September 30, 2024, was $4,569,000, compared to $5,389,000 for the same period in 2023, showing a decline in amortization expenses[55]. - The company reported $10,300,000 in unamortized costs for licensed content released as of September 30, 2024, with expected amortization of $5,100,000, $3,300,000, and $1,000,000 over the next three years[53]. - Total deferred revenues decreased from $15,200,000 as of December 31, 2023, to $11,800,000 as of September 30, 2024, indicating a reduction in unrecognized subscriber and affiliate license fees[61]. Shareholder Actions - The company repurchased 195,190 shares of common stock at an average price of $1.12 per share, totaling $0.2 million[71]. - A share repurchase program was authorized for up to $4 million, with $218 thousand repurchased as of September 30, 2024[160]. - The company declared a cash dividend of $0.025 per share, with an expected aggregate amount of $1.3 million to be paid on March 28, 2025[159]. Future Outlook - The company expects to recognize future revenues related to remaining performance obligations totaling $2,323,000, with $352,000 expected in 2025[60]. - Future advertising commitments totaled $2.7 million, expected to be paid during the year ending December 31, 2024[104]. - The company plans to continue capital expenditures for content assets and property purchases, albeit at a slower rate than previous periods[170]. - Future operating results will depend on the company's ability to grow its subscriber base and expand service offerings[117]. - The company has begun entering into trade and barter transactions for content assets, which may impact future revenue recognition and asset valuation[63]. Operational Performance - The company operates as a single reporting segment, focusing on premium video and audio programming across various factual entertainment categories[110]. - CuriosityStream's content library features over 15,000 programs, with new titles launched weekly and localized into eleven different languages[113]. - Direct Business revenue increased by $1.1 million, or 13%, to $9.8 million for the three months ended September 30, 2024, compared to $8.7 million in 2023[125]. - Content Licensing revenue decreased by $3.4 million, or 67%, to $1.7 million for the three months ended September 30, 2024, compared to $5.1 million in 2023[128]. - For the three months ended September 30, 2024, Bundled Distribution revenue was $1.0 million, a 33% decline from $1.5 million in the same period in 2023[132]. - For the nine months ended September 30, 2024, Bundled Distribution revenue was $3.2 million, reflecting a 26% decline from $4.3 million in 2023[132]. - Other revenue for the three months ended September 30, 2024, was $0.2 million, a 56% decline from $0.4 million in the same period in 2023[135]. - Interest and other income for the three months ended September 30, 2024, was $0.5 million, compared to a de minimis amount in 2023[149]. Compliance and Controls - The company’s disclosure controls and procedures were deemed effective as of September 30, 2024[177]. - There were no changes in internal control over financial reporting that materially affected the company during the quarter ended September 30, 2024[178].

Financial Data and Key Metrics Changes - The company achieved its highest ever quarterly adjusted free cash flow of $2.6 million, marking an improvement of nearly $6 million year-over-year [9][19] - Revenue for Q3 2024 was $12.6 million, slightly up from $12.4 million in Q2 2024 but down from $15.6 million a year ago [20] - Adjusted EBITDA improved by $3.5 million from the previous year, while adjusted free cash flow improved by $5.6 million [20][25] - Gross margin increased to 54% from 46% a year ago, with gross margin excluding content amortization at 90% compared to 80% last year [23][24] Business Line Data and Key Metrics Changes - Direct subscription revenue grew 13% year-over-year to $9.8 million, although sequential growth was flat [10][21] - Content licensing and other revenue categories generated $2.8 million, down from $7 million a year ago, primarily due to the timing of content licensing transactions [21][22] Market Data and Key Metrics Changes - The company launched new PayTV channels with MVPD partners in Europe and Latin America, and expanded its AVOD offerings with major partners like Tubi and Pluto [11][12] - The company executed nine content licensing agreements across various regions, including the U.S., Europe, and Latin America [13] Company Strategy and Development Direction - The company aims to continue delivering sequential top-line revenue growth and generate meaningful adjusted free cash flow while maintaining its dividend from surplus cash [9][16] - There is a focus on leveraging AI tools to reduce costs and improve productivity, particularly in content translation and editing [15][36] - The company plans to execute 20 to 30 new licensing agreements over the next several quarters, capitalizing on its extensive library of over 300,000 hours of video and audio content [16][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strong balance sheet and growing positive cash flow, which positions it favorably in the current environment [17][18] - The company anticipates that advertising revenue will increase and become more material in the following year, despite tempering guidance for Q4 due to acceptance periods in licensing agreements [39] Other Important Information - The company repurchased 173,000 shares during the third quarter, totaling 195,000 shares under the repurchase program announced in June [26] - The company ended the quarter with approximately $40 million in liquidity and no debt, indicating a strong financial position [16][27] Q&A Session Summary Question: How does the company view monetization of FAST channels versus subscription growth? - Management sees significant revenue and promotional opportunities in AVOD and FAST channels, emphasizing the importance of building a presence in front of the paywall [29][30] Question: How is the company balancing investments in new content versus bartering library content? - The company aims to premiere multiple programs weekly and believes in acquiring quality content without excessive spending, leveraging its extensive library [31] Question: How is generative AI being utilized to reduce costs? - Management highlighted opportunities in customer service, editing, and content translation, with plans to expand language offerings using AI [34][36] Question: What are the plans for cash utilization and dividend outlook? - The company plans to maintain its dividend and explore accretive acquisitions, focusing on advertising and licensing opportunities [41][43] Question: What are the catalysts for top-line growth? - Key growth drivers include licensing agreements, expanding PayTV agreements, and enhancing positions in FAST and AVOD spaces [45][46]

Company Performance - CuriosityStream Inc. reported a quarterly loss of $0.06 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.01, and an improvement from a loss of $0.14 per share a year ago, indicating a significant earnings surprise of -500% [1] - The company posted revenues of $12.6 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 8.67%, and down from $15.63 million in the same quarter last year [2] - Over the last four quarters, CuriosityStream has surpassed consensus EPS estimates two times and topped consensus revenue estimates just once [2] Stock Performance - CuriosityStream shares have increased approximately 346.2% since the beginning of the year, significantly outperforming the S&P 500's gain of 21.2% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.01 on revenues of $15.4 million, and for the current fiscal year, it is -$0.15 on revenues of $53.6 million [7] Industry Outlook - The Film and Television Production and Distribution industry, to which CuriosityStream belongs, is currently ranked in the bottom 27% of over 250 Zacks industries, suggesting a challenging environment [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact CuriosityStream's stock performance [5]

Group 1 - The focus is on value-oriented investment ideas, particularly in mid/small cap companies, as well as orphaned and unfashionable investment opportunities that have potential catalysts for growth [1] - There is an emphasis on contrarian investment strategies, with a willingness to explore various sectors if they are deemed cheap, while also being influenced by momentum and quality factors [1] Group 2 - The article expresses a beneficial long position in the shares of CURI, indicating a personal investment interest by the analyst [2] - The content is presented as the author's opinion, with no compensation received from any company mentioned, highlighting an independent analysis [2]

Group 1: Company Overview - CuriosityStream Inc. (CURI) is part of the Consumer Discretionary sector, which includes 273 companies and currently ranks 7 within the Zacks Sector Rank [2] - CURI has a Zacks Rank of 2 (Buy), indicating a positive outlook based on earnings estimates and revisions [3] Group 2: Performance Metrics - Over the past 90 days, the Zacks Consensus Estimate for CURI's full-year earnings has increased by 21.1%, reflecting improved analyst sentiment [4] - CURI has gained approximately 261% year-to-date, significantly outperforming the average return of 3.5% for Consumer Discretionary companies [4] - In the Film and Television Production and Distribution industry, which includes 7 stocks, CURI has also outperformed, as this group has gained about 5.8% year-to-date [6] Group 3: Comparative Analysis - DoubleDown Interactive Co., Ltd. Sponsored ADR (DDI) is another strong performer in the Consumer Discretionary sector, returning 104.1% year-to-date [5] - The Gaming industry, which includes DDI, has seen a return of +13.7% since the beginning of the year, indicating that both CURI and DDI are performing well compared to their respective industries [7]

Company Overview - CuriosityStream Inc. (CURI) is part of the Consumer Discretionary sector, which includes 277 companies and ranks 11 in the Zacks Sector Rank [2] - CURI has a Zacks Rank of 2 (Buy), indicating a favorable outlook based on earnings estimate revisions [3] Performance Analysis - CURI's year-to-date performance has increased by 248.1%, significantly outperforming the average gain of 0.9% in the Consumer Discretionary sector [4] - The Zacks Consensus Estimate for CURI's full-year earnings has risen by 21.1% in the past quarter, reflecting improved analyst sentiment [4] Industry Context - CURI operates within the Film and Television Production and Distribution industry, which consists of 7 companies and currently ranks 157 in the Zacks Industry Rank [6] - The average performance of the Film and Television Production and Distribution industry has been a gain of 2.8% this year, indicating that CURI is outperforming its industry peers [6] Comparison with Peers - H&R Block (HRB) is another strong performer in the Consumer Discretionary sector, with a year-to-date return of 31.3% and a Zacks Rank of 1 (Strong Buy) [5][7] - The Consumer Services - Miscellaneous industry, to which H&R Block belongs, has seen an average gain of 3.3% this year, showing that while HRB is performing well, CURI's performance is notably higher [7]

Core Viewpoint - CuriosityStream (CURI) stock has experienced significant price fluctuations, transitioning from a low of $0.45 in early 2024 to recent gains, raising questions about future upside potential despite a shift away from "deep value" status [1][2]. Group 1: Company History and Performance - CuriosityStream has undergone three distinct stages since its SPAC debut: the "deSPACing" phase, the "whacked" phase following the SPAC bubble burst, and the current "comeback" phase driven by positive Q4 2023 earnings surprises and a new cash dividend program [2][3]. - The company reported a 12.1% decline in revenue year-over-year for Q2 2024, primarily due to a strategic pivot from licensing content to focusing on its subscription-based streaming platform [3][4]. - Despite the revenue drop, gross profits increased by 52% year-over-year, and net losses narrowed significantly from $9.6 million in Q2 2023 to $2 million in Q2 2024 [4]. Group 2: Financial Metrics and Valuation - CuriosityStream's market cap stands at $105.4 million, with an enterprise value of approximately $70.4 million after accounting for cash and debt [6]. - The company’s trailing twelve-month EBITDA is around $5 million, suggesting a potential EV/EBITDA ratio of about 7x, compared to a median of 10.5x for its sector [6]. - Valuation estimates indicate that the operating business could be worth around $105 million, leading to a potential share price of approximately $2.64, representing an upside of about 36.8% from recent performance [6]. Group 3: Strategic Initiatives and Future Growth - CuriosityStream's strategic pivot towards factual programming and partnerships, such as with Estrella for Spanish-language content, may enhance revenue growth and improve market perception [7][8]. - The company has room to increase its dividend, which currently represents an annual outflow of around $5.6 million, potentially leading to further share price growth [9]. - There is potential for CuriosityStream to pursue strategic alternatives, including acquisitions, which could enhance its valuation and market position [11]. Group 4: Market Conditions and Investor Sentiment - The recent stock price increase has been influenced by expectations of interest rate cuts, which may lead to volatility in the short term as high-yield stocks are affected by market dynamics [5][12]. - While the stock has seen significant gains, there are concerns about future performance and the sustainability of its streaming platform amid aggressive cost-cutting measures [12].

The Zacks Film and Television Production and Distribution industry is witnessing a surge in demand for digital entertainment due to operational constraints faced by movie theaters, theme parks and cruise lines. This increased consumption of online media, music and news, driven by the work-and-learn-from-home trend, has been a boon for industry players like Warner Music Group (WMG) , Lions Gate Entertainment (LGF.A) , IMAX Corporation (IMAX) and CuriosityStream (CURI) . However, as more players enter the fie ...

Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the 'long' context, investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades. Eve ...

Table of Contents _____________________ _____________________ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q _____________________ (MARK ONE) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarter ended June 30, 2024 o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________ to _________ Commission file number: 001-39139 CURIOSITYSTREAM INC. (Exact Na ...