Business
Cineverse Reports Fourth Quarter and Fiscal Year 2024 Results
Total Revenue of $49.1 Million Total Direct Operating Margin Increased to 61% from 47% Selling, General, and Administrative Expenses Decreased By $8.9
About this update from Cineverse Corp.
[{"type":"text","content":"Total Revenue of $49.1 Million\nTotal Direct Operating Margin Increased to 61% from 47%\nSelling, General, and Administrative Expenses Decreased By $8.9 Million, or 24%\nAdjusted EBITDA of $4.4 Million, an Increase of $4.3 Million from Prior Year\nPositive Working Capital of $1.5 Million as of Year End\nLOS ANGELES, July 1, 2024 /PRNewswire/ -- Cineverse Corp. (\"Cineverse\" or the \"Company\") (NASDAQ: CNVS), a global streaming technology and entertainment company, today announced its financial results for the quarter and fiscal year ended March 31, 2024 (\"FY 2024\"). \n\n \n \n \n \n \n \n\n \nFY 2024 Financial Overview (all comparisons are to the prior fiscal year ended March 31, 2023):\nFor the fiscal year ended March 31, 2024, the Company's initiatives to reduce operating costs, optimize our streaming channel portfolio and increase margins continued to have a positive impact on our financial results contributing to Adjusted EBITDA of $4.4 million for the year, up $4.3 million over the prior year.\nDuring the fourth quarter, the Company recorded a $14.0 million non-cash, non-recurring impairment to Goodwill. The Goodwill impairment was required by US GAAP as a result of our market capitalization ($21.8 million as of March 31, 2024) being significantly below our book value. This triggered a required impairment assessment under US GAAP. \nIn addition, during the first quarter of fiscal year 2025, the Company began to execute on its previously approved share repurchase program and acquired 184 thousand shares through June 30, 2024. The share repurchase program remains in place as previously reported and will continue to be utilized to support our stock price as appropriate.\nChairman's Commentary:\nChris McGurk, Cineverse Chairman and CEO, stated, \"Our focus this year has been a concerted drive toward sustainable profitability for the Company. Our full year and fourth quarter results reflect the results of those efforts, with vastly improved operating margins and significantly streamlined cost structure generating positive and growing Adjusted EBITDA and accelerating a rapid trend toward positive annual net income. Excluding the key non-cash Goodwill Impairment and non-operating Metaverse investment loss, we reduced our net loss by $4.8 million or by 58% to $3.4 million for the full year and were virtually break even on net i...