Cineverse (CNVS) 14 Aug 232024 Q1 Earnings call transcript

Good day, everyone. Welcome to Cineverse's First Quarter Fiscal 2024 Financial Results Conference Call. My name is Cole, and I'll be your operator today. [Operator Instructions] Please note that this call is being recorded.

I would now like to turn the call over to your host, Gary Loffredo, Chief Legal Officer, Secretary and Senior Advisor for Cineverse. ahead. go Please

Investors available quarter will Thank company's Fiscal everyone. The broadcast joining website for fiscal of us release Good is First you the call. made be available Quarter A Cineverse XXXX, first the for XXXX Cineverse section Cineverse's of conclusion website this www.cineverse.com. after replay the Call. June Financial the at the this also XX, announcing afternoon, results at for ended on Results the press of Conference

Before uncertainties reports I are statements based uncertainties company's SEC company's are begin, These contain the would we and with out like to risks, The are that business and made periodic assumptions. forward-looking financial to certain and materially statements. that on statements could call forward-looking that from results expectations these to point management's cause current on risks filed today's and differ the subject describe potential statements.

All XXXX, is of to of the information except today, these any law. forward-looking Cineverse as update not and August obligation any statements, call assume of as by does required discussed on this XX,

In to reconciliation certain carefully our encourage financial we measures. and financial you consider these our you represent as in GAAP information And call addition, this the measures applicable tables non-GAAP release to disclosures in read presented earnings metrics.

for Officer Executive the Accounting, Erick I'm will Officer; Officer; Gary Operating Loffredo. Technology Canning, prepared and of Mark Finance and Vice Chief President Opeka, CEO; Strategy following Macias, available President, and McGurk, today Chief Tony Yolanda are remarks. and With Content Chief Chief be and whom me Officer; Chairman Chief Officer; questions Huidor, Lindsey, all Chris Financial John

review and initiatives XXXX latest provide XXXX. will ended the our business Erick and results quarter of our June quarter detail fiscal developments, before highlights, a for XX, results operating will John today's call, open outlook discuss follow the for floor on first questions. first with streaming On fiscal the Chris long-term strategy. And operational we year will

to now begin. turn will McGurk to Chris I the call over

versus everyone. some operating very good for Thanks, reduced goal us reduced profitability. operating year's sustained previously We and by our quarter of with you and stated today. $X.X $X.X hello, of joining quarter, enabling margins posted Gary, of narrow line target We costs us Thank costs, progress the our in improved toward by or direct to to during XX%. last operating We XX% million loss XX%. made our million a XX.X%, guidance margin

our improvement a profitability, are result Cineverse improvements to operating margin reach from XX-position These have executive which go-forward and streaming cost from renegotiation most of and direct planned headcount included the enthusiast compensation reduction, deals, calling Services streamlining our networks. efforts, major of the overall we broad our the lower-margin of until our offshoring cut a cost channels India, of sustained portfolio savings of now and future positions of

the ability As XX-channel calls, revenue many streaming streams and give only streaming to I've single competitors a X noted portfolio multiple our us before these or X who have and models, unlike of channel revenue basis. our the to partners our manage content a refresh as we channels, ability us on call to truly provides our programming business enough on from not are with This a portfolio. getting lower-performing those where particularly timely-enough unique

of the doing we at bottom are line on focus expense aggressively lower-margin revenues. as we So even this the

that will advertising our in last where optimization of results result this dropped of a We few in a our mainly Erick revenues year, cover quarter, these activities. saw minutes. detail more that the in impact channel versus as

quarter is of higher reduction our exactly and off and to XX% results, trading this we I of related $X.X our operating operating improve continuing and for However, million that margins costs last committed are loss for channels want versus reduction businesses saw in opportunity have the year. operating we to to when which process performers emphasize the what lower-margin we this

digital we the business, a by tough for significantly market XX.X% quarter, XXX.X% year, which the revenues, grew our period. fewer our led revenue last first of channels of our in driven Despite up quarter horror [X.X%] drop paid seasonally and million our on in year subscribers versus channels, also our The paid to and this new and Streaming advertising increased were was (sic) last growth advertising sales despite subscription library slow by environment XX%. and a on pleased record of report the and increased also which number strength growth to revenue by versus XX% $XX.X last Streaming content Digital channel primarily streaming Digital and business releases. year's Screambox licensing overall total from up

As head we advertising advertising into particularly going political growth forward, expect and the and services Erick our in aggressively rebound this season. will to our leverage complement detail, ad new a sales digital group revenues subscription we as

film that, last theatrical Terrifier continues us to performer company. $XX.X a Released the of entertainment. all to fall's generated already last in addition million In the phenomenon, has for home October, be for monster X, in revenues

X, a reissue this the fall the of slated XXXX. for of planning film teaser theatrical a year, the highly franchise late debut anticipated will follow-up, of release are where We we Terrifier in

promotional going approach competitive editorial Bloody XXX-degree all This XX channels, business X million podcast a this of Terrifier the streaming cost-efficient our is to effective Disgusting forward. and of horror power one viral and marketing driven into division. horror our influencer viewers, phenomenon and by marketing, highly capabilities been our XX helped unique key turn advantages media social our active approach which of and monthly has robust the utilizes All of

detail. this cover will in Erick more

at India see not announced but dramatically is platform streaming offshore support of ago the streaming and innovations a improved most management that and have very India. the about formed we acquired important having into Cineverse one years operation new to content reduced key functions However, see X cost India XXX% what a speak developed, seen goal our Cineverse can industry and for profitability, over let maintain we This the in of our in efficiencies we as technology, our costs sustained a AI, years, the as battle-tested Cineverse me operation in a involved is U.S. the personnel been time. in technology undertaken they and of including for why AI initiatives Services exciting unique Having of have with our Matchpoint earnings majority technology at unique we last leadership Services X the India same and and almost current and minute now with our Cineverse call. having and it just push for reduce

a plan and not a end this domestic that board. This unique high-functioning company. year, positions makes across that in are us fiscal this of will why the of a India but that are offshoring, competitive unique workflows we division contribute trusted savings, complete and What cost initiative, to we aggressively the It Cineverse are for efficiencies million we we this several by only dollars so that is is not advantage operation to the which will improve leveraging. is is already confident outsourcing, Services

quarter third I at also XXXX. to million our party June XX, valued book this that mention for want library a compares content independent library That an $XX $X.X as value $XX the million. to million to of XX,XXX-title

had on $XX as Our monthly June the technology was platform in million million the cash million behind we last and Matchpoint, XX XX-channel hand in XX management, date. a revenues that million than streaming at over active include portfolio viewers Cineverse's we driving was $XX.X that other industry-leading fiscal generated enthusiast force with our $XX of stockholders' streaming content and more and equity year. AI total assets

$X Bank for of which another including $X XX months. just extended a we As on of today, our we have EastWest credit, debt. line balance

we job the All equity undervalued of why so have at time. investment do this stressing community, of first next we to a points the is need program believe quarter in into of effect those year. these significantly facts and better a stock underscore still We to repurchase in point our

to minutes, as status want Finally, of in our an cover while few future and almost technology-driven will specifics Erick a do to the company. I speak this fully

is with the again world-class technology, game-changing to emerging of with connected in now were streaming costs the Cineverse the Cineverse business its dollars in pioneer business. distribution theatrical and in and is charge core talented it theaters a the spent FAST the now business. TV technology saved AI of an engineers business of with the and digital team now Matchpoint of fastest-growing technology the TVs, the at technologically We competitive at billions streaming company. made led developing We industry years India, and content management, a platform. which segment innovative industry-leading conversion We

all of and content proprietary very ad in critical is ad now that backbone we From done tech. Beyond Frankly, sales home. technology a point do hammering our better of the this very Matchpoint we've business. it of is past, lousy to and business. aim lines technological is streaming Matchpoint point the our foundation job forward clear heritage, OTT of to the that by going to distribution, in that our communicating

we success and GoPro, in as with Bob partnerships and So brands others. had OEMs top leading Krofft Ross, & the like have bringing Marty among channel such Sid Amagi and reason establishing TCL and in brands tech many

quality, an partners confident as the same the initiative in recognized industry of and generate significant revenues already announced future. is are brands become recently and and we also leading attract the technology, entertainment MatchpointAI It same quality a level will leader, high-margin

a disclosures We reflect even as be revenues on to Matchpoint very our for a Look already To generating fact operating for and recognize move results hope should to reporting all percentage core provide and through of we very directly next an as results the couple that the our percentage our the needs company, of reflect future technology technology and represent this in future. of significant more will is the this, likely of we our to Cineverse responsible additional in quarters. viewed greater that. believe

positioned All that technology we well believe growing and Matchpoint, streaming powered we are content business. to by said, continue our

substantial approach going initiatives moving differentiated profitability. fiscal sauce goal margins, reduce we XX,XXX-title forward. improved driving continue working committed technology our toward improve sustainable operating to and our CineverseServices library financial and secret remain India, such portfolio content delivering Supported into by costs to together achieving up marketing for we make XXXX of year as our channels, performance growth our as proprietary now Our the streaming our strategy of Cineverse's AI, XXX-degree

And with John first to fiscal financial turn over our to that, quarter. results for I'll the XXXX over go it

Chris. you, Thank

revenues For to ended Cineverse XX, the of the in XXXX, quarter total which compares period. year June million, prior $XX fiscal million reported first $XX.X

in profitability decrease those properties, via this higher-performing and to portfolio near streaming achieving our due to to optimization elimination the intentional is resources higher-margin advertising primarily on lower-margin reallocating the Chris certain As goal of important of the from sustainable was our noted, revenue term. channels impact and which

Digital and drivers XXX% a in Streaming financial the provide a channel subscription X% Total to led revenue and increase driven a distribution Erick increased on operational $XX.X by results. increase paid subscription. million, robust This and behind our portfolio, will additional detail record by revenue increased licensing. our content platform digital in was XX%

the gain which from for OpEx fiscal the SG&A period XXXX. our decreased momentum a between efficiencies by line provided for direct expect Total Services XX% of XXXX. previously result $X quarter, implemented gains reduction in Cineverse margin or in as XX.X%, cost-cutting since to XX% and first we year year Gross greater million. a nearly was second XXXX, fiscal This of nearly guidance and in year half initiatives last is year's fiscal driven with of XX% million $X.X is expense of India we've the even

a in improvement $X of cash XXXX, negative facility period. the $XX.X dry loss to working attributable down loss million that to of We net had on sheet or additional and balance loss or net in period. small million to prior as loss diluted to $X.XX paid we $X.X debt. $X.X XX, capital we from and $X.X in fiscal June per maintain diluted negative narrowed no the powder cash on million year stockholders million from per equivalents balance EBITDA for result of $X.XX OpEx, outstanding adjusted quarter revolver key a negative share, fiscal subsequent decreased currently prior and negative narrowed have content $X.X have no as significant year Having our negative a revolving million million acquisitions. the total share end, of long-term As on Adjusted we common facility EBITDA our

year. extended mentioned, Chris for just As we that another facility

to next positioned growth on well feel several the our We position. to given execute be over months strong our able financial initiatives

XX% guidance $XX other of reiterating and million and EBITDA fiscal $X view and direct million million, is are of in XX%, the current $X the of keep XXXX, existing We on, and of existing previously these for are operating fiscal conditions based business, year assumptions Please company's market margins provided guidance for and year factors, among between between assumptions total XXXX. mind, which between $XX revenue adjusted million.

floor With Erick initiatives. growth that, our to and to I'll turn discuss environment over the market the

Thank call the you, John, today. and everyone, joining thanks, for

First, to our go-forward streaming line let the on and updates current channel me strategy technology initiatives. discuss some streaming climate, and results, going business our briefly top our review discuss I'm provide

first, investor in the of year claims in community, after year-over-year. and post-COVID market ad-supporting the the grew America. environment. a last negative Comscore, of streaming and in average regarding grew first macro combined signs despite time is lot streaming the hand-wringing household and both half So saturation, business And the XX% in streaming streaming a Despite current sentiment, According many of growth the spent North hangover XX% the XX of months. press showing the reaccelerating subscription to both

number subscribed X.X, household the grew Additionally, to from the services year. X.X up per prior of in

While to showing most the year, the more the modest X% YouTube, and agencies half overall large-scale to gains as partners. for This platforms is CTV has of half year Meta grown last Kantar and X% Hulu around optimistic for demand our first sentiment in pre-stage advertising in and has the the among quarter. of are ad according down such back improvement an the CTV the the environment, been

favorable streaming, ad ad significant in $XX long-term see the falling streaming. front. households XX% below of very North And is with today, the spend of estimated video America to range, However, subscribing of on despite billion the number on million spent to audience shift cable only XX the trend we is

there it sum driven a CTV subscribers, next of and subscribed the to the so of many years services X industry are legacy years. remaining ad time all heavily share, spent, many, So up, to, over key shift all from growth streaming platforms by macros,

this, in peers, well over margins compete. ability superior to So approach the all technological the streaming diversified face of has achieve to very a combined with Cineverse of us to our positions

a quarter. the XX%, subscribers to were we by in of streaming XX% And up Now as highlights our let's happened X.X% driven of particularly discuss service, approximately our Total channel. X.XX quarter. by streaming new XX% more few streaming paid digital from streaming million, during detail our to record for were driven library $X.X and revenue in increase increased an and licensing up the some release our to in Streaming Digital success business a subscription total which subscription also business. Screambox services services, significant million, growth $XX.X platforms acquisitions to the other in well our Docurama, primarily growth and as revenues horror saw grow the our documentary flagship million,

XX.X%. Total ad-based $X.X revenue was down million,

finalized El lower-margin the we included and Network, the channel Rey Elvis wind the several the down anime. several channels not period, Chris which channel wound proprietary channel, Docurama and not during As partnerships. Presley John noted, channels and we We channels, are Country quarter, down The These own, as predominantly third-party well. the FAST during including CONtv their subscription Channel FAST Network, The

Additionally, migration a migration, partner to in platform -- in the year. with FAST significant major July mandatory the we partner had May the saw be technology period that for busy and We at recovery transition back experienced with partner. the subsequent June. in to pre-transition levels half plan in significant and at during monetization we that of Due expect a reduction channel this critical

library top profits from more of to we revenue. quarter, the is and era continue away the key measured profits. with focus leveraging area high One growth generate efficiency COVID going the and on focus of at strategic XX,XXX-title revenue on we're line our expense growth KPI approach continued the In shift to to to our

our been As generated own from to library Chris has up streaming noted, business third-party emphasize our at prior expense revenues generating In our with focus revenues the years, service of services. our streaming year-over-year. was XX%

on we've in we making titles expanding the broadly no over our year, subscribers that and plan seen little However, last cannibalization dramatically more available, to by effort.

annual we new addition, volume of leveraging revenue. should scale Matchpoint have plan on by a to titles In overall up releases, the release which and material significant of the hundreds, impact on

noted on from maintain earlier, are far on we or deal or unprofitable don't to streaming eliminating to profitability business we began we for with As CapEx that focus require priority the deals on significant rights. outright lines targets winding channels own

with over will changes quarters. in the earlier, should case an as that streaming from fully we'll our and Authentic down study The X% as earlier, channels. effect we Elvis those stream XX% take ended proactive great which about business, noted our the revenue estimate improvement benefit We Presley business we see, us think, few on wind I shutdowns on margin is off. the several estimated these relationship P&L our Channel third-party Brands of model. also X% But And having translate and margins other a As in next channel Docurama, multiple strength gross improvement to improvements mentioned a wind I

operated a expanded in originally service subscription FAST as channel that into offering XXXX. we So and a it

audience struggled has many a as as linear plagued find networks, an linear that documentary channel However, network. predecessor to

turns way of documentaries which to to an in middle for tune to don't it find most in the out, most the As common like FAST is show, audience. people channels the

quarter the shuttered channel the efforts and during refocused instead the on model. FAST last our we So subscription

Operating by dollars hundreds in during subscriber XX% were has extremely the time grew result our of by of positive quarter. base been a than expenses The framing. more while down net short thousands

that prior partnerships. time rights, from days we're and going These CapEx years. to significant our capital approach going than to be little exclusive fee-based years. to than forward, different going market or require Rather to risk months managed no is in on to streaming rather sometimes copartnership advertising technology businesses capital-intensive to investment weeks focus services very and So is requires channels even and third-party

overall Our well. is as approach changing to ad the market

advertisers have capture expanded sponsorship sponsorship in the the coming in deal And -- ad best is focus benefit currently and and Hershey's, Ancestry.com, current supply optimization, ad our results and and calendar As direct portion Pictures, up on ad signed these, quarter, of had but Bell, the team QX. on Taco ramping more. direct to path the AXX secured with our most the sales business of significantly recently we quarter from those we're We the Sony in prior quarter. deals

So and selling audio The web, premium our approach channels. partner is monetization so CPMs, managing is also think on exclusive mobile, focused XXX% our omnichannel, to us shift biggest and CTV at $XX in on the a focus current for for the range.

has like launched As launching earlier, because partner, new cash revenues I forecastable this building flows, there that CapEx we live, we and channel a channel new channels risk could and noted work rapidly already market. has with no the is approach into predictable and with is like it when versus be

recently scaling Preview have and side, focus scale approximately next struck on pursuing revenues over we rate. audio the network. The monetization audiences plan X on exclusively on and rapidly to with with signing our From exclusive tripled years with weeks this to owned an a channels. this X the in monetized For We model podcasts business large since Channel. partnership revenue We're run deal example, also live, generating were partner's we daily the

business. implications discussing out Finally, our by for store and technology like close I'd our what's the in to for

revenues, more video the of heart, scalable noted, we responsible directly, service we and it the of it generation makes platform scale library. that for all the XX,XXX-title analysis, distribution, highly processing, allow suite Matchpoint built reporting SaaS revenue. At As and everything our its engine our to on proprietary dozens known the overall a vendors, possible. as enables the the and Indirectly, replace of up it's of Matchpoint, that top than monetization our Chris streaming just to do content. system to half us majority We estimate of enables vast a patchwork do professional companies far of architecture of is company's that

accounting data companies mainly processing, becoming Matchpoint for because beyond solution. modern infrastructure is a and a that just content operators, channels reporting, increasingly operating media goes including OEMs It supports management, royalties infrastructure channel and support. producers, delivery, and rights digital content media it's source intelligence analytics, single critical apps, customer need, payments streaming and full far stack and

and market only end-to-end the the the scalable operations, content thing media efficient. system it being cloud to of also was vendors cost If the the beyond would Matchpoint only dozens But that think partners. to business and dramatically operating for take eliminates the media and simplifies of and infrastructure make modularity As we be that suited in of of for platform affordable our extremely also while great today, businesses needs tomorrow. a MatchPoint did, today, advantage business goes it's offer perfectly far companies it

next of the examples we're streaming. ready help few needs a -- we of get consumer partners Here's for era the how in

the used AI-based marketplace. up, made dramatically First quality to computer AI ties content building machine engines. models scene from video to data learning elements and this like data of be our and blocks recommendation right more back mood, AI tags into processing. tone around data and and in the video improve to And generative services complementary pacing, or we these announcements for critical dramatically and points future, recent LLMs. descriptions vision We're the improve adding meta language assets, captioning around the can of large But learning speed this using are esoteric

as Those models a web or pairs short text-to-video happening to Most and generate text generative Gen-X form us video advanced will enriched valuable, partners capabilities to what's are and others. run source, limited data video video. old, known feed extremely rely models. datasets video datasets content to is We very the extremely describes image believe like enable Runway tools, that models on and available video in on textual technology going heavily open generative businesses ML for and our that and highly allow in given

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a about these streaming how calls it's television replacing and on free lot talked ad-supported rapidly cable. we've So

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market services our that rapidly. believe we extensive these we India leveraging can to However, team, bring

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with scale and focused And negative features. in investing cost we're improvement, channels, And commercialize of margin margin focus remain new exiting customer launch Our robust strong structure Matchpoint its and and up direct ad well should finally, on gross and next-gen sales committed low a on we base scaling technology and our businesses. to as distribution we new the new managing a business with sponsorships. and recovery be as

Again, our thank for for operator, Q&A. forward that, joining let's today's in and With to sharing months. up open we the it look you call, results QX coming

Our is with question Dan Kurnos from Benchmark. Instructions] [Operator first

uncertain I guess, about Yes. flow cautious we think of Erick, lot you and it environment. I'll understand but Maybe to is of obviously everybody guys, cash just a sort pivot, technology-oriented. right guess now and I I if this more just probably with Chris certainly from about call talked strategy lot the a you and a being some, want

directly we Erick. we of for I like kind Does get narrative? sense do that comments, referenced umbrella the with as strategy? of broader reframe change think in guys, of You want things you portfolio, that about, kind just the the I to a at think we your And channel a to all guess used how O&O and

framing its And today? you I on us solution revenue for start revenues the bit in what overall just mix own? think from or of know of enterprise of go you've said about of you how don't strategy kind additions you now, what I an the we do kind got guess if more and kind does And little O&O the want you're away to take and from after point. a year this how a at then if cautious that generating Matchpoint, solicit

Chris. Thanks, Dan. This is

We that's business now." forward. about looked this threw it bulk recognition and You should response a at don't look we look business well right sort just was piece of we of pivot. us, as the we this. as each on took when really to Erick and areas of Erick report I'll a deal, lot But it business, see our at and awful the let But that ourselves We an industry-leading handle looked always and own should our the taking driven what that's technology. we be fact given advantage And going it's is of described. our all at said, into like look probably, right forward is Matchpoint at of we along. And recognized doing business competitive as attributable us now, XX% driving our in AI directly the "Hey, as us that results a it hard a something at how we we And that have new technology. a

channels that's you've terms enthusiast channel strategy, on we underperformers got of channel We our stepped someday? a more the and were people resources that if In to really XX. than always when and which your sat specific the we XXX was implement you got probably, when against back I our business what, going after And to ask channels company these as XXX, and probably are years, limit, pull a and up mean, we've channels to calls us, unique with dozen portfolio know opportunity a adding portfolio at performers. we've probably focus X is for when channel we stronger have beginning you said said the very said, of

We're Amagi you of from as the We streaming. announcement. moving the Spotify saw of the haven't that, very as Cineverse on idea stopped forward aggressively

a that call So and our it what I I'd of an intended wouldn't always we of call good a do anything, pivot, than rationalization to at, our this strategy portfolio focus lower-margin year more versus on line recognition revenues on top and end toward and even sake profitability the of overriding just for driving adding revenue's the revenues. focusing they're we're by if cutting costs this

and Erick the stop I'll ahead, let answer the to finish question. So Erick. Go

add, refocus with that with Yes. kind scale our strategy if it think on I very think nicely we've you of dovetails we been that just Matchpoint. where sort articulating channel we would of about Cineverse, take the

has, scale to it is it's Comcast titles Roku doing lot just and who scale a the has and the for and partners with so have don't or Xumo strategy it OEM biggest right, doing co-branded of support an been or providing on. entire own infrastructure their like not of providing with streaming One operating growth elements Cineverse It's system, also rapidly. working a partners service of branded experience the with

that So to for think of piece the us that grow fastest is way the business. we

partnership our ROWX. with capability transactional with have We

We of of have deal. our Amagi tens with titles thousands

standing Cineverse, -- up a stand a Tubi So CapEx version full co-branded or Roku costs, in up turnkey, Cineverse, risk, either up. when versus they're a of with stand If no of nothing. X, version out building own or we X employment somebody, can their Pluto, really partner over years Channel them, Cineverse or as they as immediately no the at X

attractive path following we partners, a -- result, So to a scaling for and some we're and that's have that direction. up we think Cineverse pretty

our on small, do unprofitable these opportunities don't to company In terms doing like size, a business non-important about as like mentioned, what exceptionally focus portfolio, focus have we of want talk is well. the broader when Cineverse, Matchpoint, or when important, And channels big Chris horror you is our we right? channel is

them, plus and effort we're to to be Matchpoint, our forward. lot we focusing where is Cineverse plus call these, going have of really, So super going verticals time me, a

comprehensive QX. Got we XQ just appreciate if from and just you look of a helpful. pruning, And it. are just I kind the out in year? of follow-up want it. did expecting on some keep perspective? seasonality QX choppiness ad thoughts the Erick, as market how a it. sort channel normal hearing sort with to what of this really appreciate That's your know We underlying an trends I'd in kind of are. hopes I general stripped of normal

Yes.

impact the timing kind the we so last I technical as to half year, changes scheduled the make, out element we pushed we we you originally and busiest we the far out were mean, So of of in if had glass QX wouldn't as did. time full I'm back could that which of year, to the glad changes those them happen is

we've go confidentiality been of significant impact the about contributor. we They've know due the a because to major it's So platform too partner the revenue partner is. name a can't into I is ours or What we're and I there. known reasons, much how but big didn't -- them. detail can't

takes the build back to live for have program once removed behind So the -- years. time for audience channels and from been remove had that from it you good us. to basically effect, a favorites guide in news It we, is people's that's

So back. it that's But to that building back. build just takes some time been

that pacing cooling then back to think piece the a channel significant I piece, and was for too. we're be

year-over-year of those, the be single-digits. for high would you If decline back kind estimate my out

decline XX% the probably decline. annual So about the number was of it's

as the So is, still of that growth. okay, companies expanding revenue let's ad the an of business ad here few we diversified year-over-year impact enough the focus side lines we the on one of kind and focus that the just seeing of business on have retool number are we sales. the we're the business on the reason subscription streams a can we've with of on focused so been have Part direct we on say,

our between end is more year-over-year to we're QX, fiscal like back outlook that, growth. of the kind Probably improvement improvement QX, for well in very quarter, of our be this and and we going what significant double-digit on And our XX% calendar comp. lower good then So to XX% think is we're annual doing the on thinking.

CTV line some partners. doing So whole of small still short very that is overall anomalous as the the COVID with in more and as good good pie. or Obviously, not well, nobody years, era platforms but

to offset in but business. lot we're of a unanticipated anticipated we have any shakiness So tools the or optimistic,

Brian Alliance question Partners. with from next Our Kinstlinger is Global

start, couple of a And And you time? Shervin a is specific quarter. what expect you it. to that theatrical Congrats months many on you contribute percentage them amount planned How quarter? do say within at do releases there's releases XX are To the a revenue? weighted this of This planned next Brian. towards on the have parts of solid meaningful for any would to

By releases, or releases just theatrical talking you're new about releases?

Yes, theatrical theatrical. releases,

here. Yolanda and in can -- think I chime

least year, King, Warrior We reissue the of On the of others. have at Terrifier X more now Fire, the end and X, between including among

our weighted quarter quarter franchise. think that going Obviously, we're the have think it's forward the impact and our is they're we towards the on the business to year. going Terrifier the fourth and I franchise of nurturing biggest third

XXXX. Terrifier I that revenues and to think mentioned And million, $XX.X which in teaser we X, reissue X on company. about months, excited this spend We're is $X we're very for generated a year. to in the of And X $XXX,XXX DVD. increase to a obviously sales subscribers, in below the anticipated, made over attaching marketing. exclusively see X activity demand in And impact brought going actually home to entertainment continue not of to the hopeful the and huge and we'll a the that with sort late released we're Terrifier tremendous of into through on business, market streaming be video our channel, that transactional in huge positive that's our all highly that's little and huge Terrifier it that also Screambox acquisition only physical later Terrifier I million on an X

the So we're with -- franchise we're try to true a And we're new ancillary podcasts, think, forward. releases And franchise. driver, that making that manner. be the working the around in like of be will time, producers keep going I of at develop biggest content, that documentaries, of things We're our going in to kind theatrical in to building single to terms going. going trend same

is I don't the Content Chief Yolanda Macias, Officer, know, who's also call. on our

add If anything Yolanda. to you want that,

Chris, hit focus we franchise the add is Yes, what points. just continue major -- on. that building, the would I you which all

on more horror we calendar we pivoting continue X the which see So to and you'll release of those growth theatrical third and to about physical focus to films, collectibles the franchises. continue are fourth format that also quarter in the that build quarter, in

add also one thing. would I And

are In a give just channels. on the addition to everybody that update various titles film coming, quick

a pretty GoPro our So out in a deep currently we're GoPro, snag. assets bit roundtable, of little video partner to feature-length They've assets. the creating been episodes of hit aggressively, editing

So rapidly. we is moving that, that channel expect pretty along

We being Krofft it of to remastered. early Marty calendar market part & the expect is ready to to Sid in be go QX.

and content, Land process very, content, favorites, of to needs is ongoing. the ever very seen you've be that very it's If restored it this XXXXs, and X but Lost, millennial Gen cool

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and have coming announcing coming so. that that next the that In we're that be some on quarter one in we channel, go, will Entrepreneur the And terms rapidly is ready weeks. we or to of within channel going working and properties be other should

you in way impacts strike in from see theatrical marketing your terms negative the releases? of Do any for the filming any

really, indie the yet seen impact anticipate we hasn't Not any and on, not really signatory, really foreseeable future. drags affected for at No. and see now us this right we're any strike we're if the We'll don't an haven't because it don't point. but we

received In Fire. promote we film, On fact, our for talent to our waivers upcoming

direct Great. go? sales. fully still upon to how the That's then team. ready it hear. And ad the for on is It's expand trained, long large new takes be And to you direct to good And on onboarded, How hear are progress now? a about say good the hire you the sales would point ad to continuing it? to last team

the or maybe having, that can With more been as you've should quantify expect? last you a the to how much direct pipeline year, success at compared we all multiplier ad

Sure.

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network ad an network spot. filling than where different programmatically very the just or on it's bidding and So in is competing ostensibly,

managing For channel -- us, it's we're the monetization for a very partner. only fully different. of We're the not

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we And to we think scale we business table, have can and we that bring pretty grow offering other Matchpoint think the between we things that the quickly. and

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questions remarks. so for team closing conference to the There are back no remaining, further pass I'll management the over

Chris. is Hi, Yes. this

to at So have. might thank for to all speaking to you out feel free Equity Julie again today. us look We quarterly our questions all you Investor forward The Group, joining reach or additional very Relations next with Thanks our firm, much. you Please any Milstead call. to

conference for Thank call. you your today's participation. concludes That

disconnect may line. You your now