NASDAQ$CNVS

Cinedigm Corp · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Cineverse's financial performance was marked by improved direct operating margins and reduced SG&A expenses, despite a decrease in total revenue due to specific one-time factors.

Cineverse reported a decrease in revenue due to the runoff of its legacy digital cinema business and a decrease in theatrical revenue, but improved its direct operating margin and significantly reduced selling, general, and administrative expenses. The company generated positive adjusted EBITDA and secured rights to Terrifier 3.

  • Total revenue was $13.3 million, reflecting impacts from the digital cinema business and theatrical releases.
  • Subscription-based revenues increased 13% to $3.4 million, with total paid subscribers growing to 1.4 million.
  • Direct operating margin increased to 59% from 48%, while direct operating expenses decreased to $5.5 million from $14.4 million.
  • SG&A expenses decreased by 30%, driven by workforce reduction and offshoring initiatives.

Headline financials

Total Revenue

$13.3M

Previous: $27.9M-52.4%
EPS (adj)

-$0.22

Previous: $0.03-833.3%
Net Income

-$2.74M

Previous: $5.02M-154.5%
Operating Income

$427K

Previous: $3.44M-87.6%
Gross Profit

$13.3M

Previous: $27.9M-52.4%
Cash & Equivalents

$5.54M

Previous: $8.8M-37.0%
Total Assets

$83.2M

Previous: $94.9M-12.3%
Stock-Based Comp

$183K

Previous: $708K-74.2%

Revenue & EPS history

Cinedigm · Revenue · Quarterly

$13.3M

Q3 2024-52.4%vs Q3 2023
Beat estimate in 8 of 14 quarters(57%)
ActualEstimate

Forward guidance

Cineverse will focus on four key areas: leveraging their partnership with Amagi to drive high-margin technology revenues, expanding distribution of SVOD, AVOD and FAST streaming channels to OEM and tech partner network, expanding licensing their 71,000 title library to those same partners, and growing and driving direct ad sales on their channels and new ad network.

Tailwinds

  • Streamlining efforts continue to pay off.
  • Business model of building deep fan bases in popular verticals and providing scale volumes of relevant, library and low-cost first window content is a model that works.
  • Continued focus reducing SG&A costs to scale up the bottom line.
  • Continue to leverage both automation and offshore services hub and expect to achieve profitability goals over the next two quarters.
  • Built a model that has the potential to profitably scale.

Headwinds

  • No specific negative aspects were mentioned in the provided text.
  • No specific negative aspects were mentioned in the provided text.
  • No specific negative aspects were mentioned in the provided text.
  • No specific negative aspects were mentioned in the provided text.
  • No specific negative aspects were mentioned in the provided text.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2024

Historical avgQ3 2024

+1.8%

Avg return

Earnings day

-1.9%

Avg return

5 days after

-4.9%

Avg return

30 days after

60%

24 / 40 earnings

Positive

+51.6%

Q3 2024

Best reaction

-21.7%

Q4 2016

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026+9.6%+14.8%-14.4%
Q2 2026+0.0%+1.7%-5.8%
Q1 2026-13.4%-18.0%-42.3%
Q4 2025+14.8%+36.4%+39.0%
Q3 2025-6.7%+2.9%-18.3%
Q2 2025-3.0%+43.3%+33.2%
Q1 2025+1.2%+5.0%+5.0%
Q4 2024+1.1%-5.6%-9.0%
Q3 2024+51.6%-0.6%-19.4%
Q2 2024+1.8%-1.8%+0.9%
Q1 2024+4.7%-1.6%-1.6%
Q4 2023+4.1%-15.8%-28.1%
Q3 2023-8.3%-23.3%-21.7%
Q2 2023-1.6%-24.6%-21.3%
Q1 2023-1.3%-23.4%-29.9%
Q4 2022+7.7%-21.5%-12.3%
Q3 2022-3.7%+3.7%-15.9%
Q2 2022+2.8%-24.0%-40.1%
Q1 2022+4.9%+6.4%+20.2%
Q4 2021+2.5%-4.5%+12.1%
Q3 2021-3.0%-28.9%-17.8%
Q2 2021+10.0%-1.7%+36.7%
Q1 2021-14.6%-30.5%-44.5%
Q4 2020-0.5%-6.2%-29.7%
Q3 2020-5.5%-1.8%-36.4%
Q2 2020+3.4%+4.6%-13.8%
Q1 2020+0.8%-2.4%-23.4%
Q4 2019-4.1%+0.8%+0.8%
Q3 2019+14.3%+17.1%+73.3%
Q2 2019+2.3%-12.6%-12.6%
Q1 2019+5.5%-4.1%-9.0%
Q4 2018+0.0%+2.0%-1.3%
Q3 2018+3.2%-0.8%+4.8%
Q2 2018+0.7%+7.3%+8.8%
Q1 2018+1.3%-3.3%-1.3%
Q4 2017-8.0%-22.6%-33.2%
Q3 2017+7.2%+28.0%+11.2%
Q2 2017+3.8%+8.9%-9.5%
Q1 2017+7.1%-10.3%-23.2%
Q4 2016-21.7%+30.4%+94.8%
Q3 2016
Q2 2016
Q1 2016
Q4 2015
Q3 2015
Q2 2015
Q1 2015
Q4 2014
Q3 2013
Q2 2014
Q2 2013
Q4 2013
Q2 2012
Q1 2012
Q1 2013
Q4 2012
Q2 2011
Q4 2011
Q1 2011

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