Business
Cineverse Reports First Quarter Fiscal Year 2024 Results
LOS ANGELES, Aug. 14, 2023 /PRNewswire/ -- Cineverse Corp. ("Cineverse" or the "Company") (NASDAQ: CNVS), a global streaming technology and entertainment
About this update from Cineverse Corp.
[{"type":"text","content":"LOS ANGELES, Aug. 14, 2023 /PRNewswire/ -- Cineverse Corp. (\"Cineverse\" or the \"Company\") (NASDAQ: CNVS), a global streaming technology and entertainment company, today announced its financial results for the fiscal first quarter ended June 30, 2023 (\"Q1 FY 2024\"). \n\n \n \n \n \n \n \n\n \nQ1 FY 2024 Highlights (all comparisons are to the fiscal quarter ended June 30, 2022): \nTotal revenues were $13.0 million, compared to $13.6 million, primarily due to a planned wind-down of lower-margin streaming channels to focus resources on higher performing channels and improve margins.Streaming, Digital and Podcast revenue increased 5.8% to a record $10.5 million, primarily driven by growth in our paid subscription streaming business, which was up 44.7%.Digital Distribution services revenue rose 105.9% to $3.7 million, driven by an increase in new release titles and additional library licensing to third-party streaming platforms.Total subscription revenues were $3.2 million, up 44.7%. Total subscribers to the Company's streaming services were approximately 1.21 million, up 38%, driven by the success of new release and library acquisitions for our flagship enthusiast streaming services, particularly our Screambox horror channel, and improved performance from our documentary streaming service, Docurama, which grew 42% during the quarter.Total ad-based revenue was $3.6 million, down 39.3%, primarily due to the aforementioned planned wind-down of underperforming channels and related businesses, and a one-time technology migration required by a key platform partner in the quarter. The Company anticipates a return to ad-based revenue growth subsequent to the impact of these non-recurring events.The horror phenomenon Terrifier 2, released last fall, continues to drive strong results across our entire home entertainment distribution. The film has generated over $11.2 million in revenue to the Company to date. A late 2023 theatrical reissue of Terrifier 2 has been planned, and the franchise follow-up, Terrifier 3, is targeted for release in late 2024.Direct operating margin improved to 46.2%, compared to 45.9%, in line with stated guidance for the fiscal year of 45% to 50%.Operating expenses declined $2.5 million or 13.6% to $15.7 million from $18.2 million, primarily attributable to the Company's previously announced cost reduction initi...