Financial Data and Key Metrics Changes - The company achieved its highest ever quarterly adjusted free cash flow of 6 million year-over-year [9][19] - Revenue for Q3 2024 was 12.4 million in Q2 2024 but down from 3.5 million from the previous year, while adjusted free cash flow improved by 9.8 million, although sequential growth was flat [10][21] - Content licensing and other revenue categories generated 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]
Curiosity(CURI) - 2024 Q3 - Earnings Call Transcript