Yahoo Finance

• Total Revenue: $40.7 million, up $27.5 million from the prior year quarter.

• Net Income: $7.2 million, a $9.9 million increase from the prior year quarter.

• Adjusted EBITDA: $10.8 million, a $9 million increase from the prior year quarter.

• Operating Margin: 48%, within the targeted range of 45-50%.

• Cash on Hand: More than $13 million, with zero debt.

• Line of Credit: $7.5 million available with East West Bank.

• SG&A Expenses: $9.4 million, an increase of $3 million from the prior year quarter.

• SG&A as Percentage of Revenue: 23%, compared to 50% last quarter and 48% in the prior year quarter.

• Streaming and Digital Revenue Growth: 48% year-over-year.

• Podcast and Other Revenue Growth: 138% year-over-year.

• Cash Flow from Operations: $5.0 million net cash provided, a $7.4 million improvement during the quarter.

• Working Capital Surplus: $6.8 million, the largest in company history.

• Subscriber Growth: Total subscribers reached 1.38 million, up 6% year-over-year.

• Screenbox Subscriber Growth: 7% increase over the past 60 days.

• Fast Channels Performance: Over 2.1 billion minutes streamed in Q3.

• Warning! GuruFocus has detected 8 Warning Signs with CNVS.

Release Date: February 13, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Cineverse Corp (NASDAQ:CNVS) reported its strongest quarter in history with $40.7 million in total revenues, a 207% increase from the prior year.

• The company achieved a net income of $7.2 million, marking a $9.9 million improvement from the previous year.

• Cineverse Corp (NASDAQ:CNVS) has zero debt and more than $13 million in cash on hand, with an additional $7.5 million available on their line of credit.

• The success of 'Terrifier 3' has opened up new profit lines for Cineverse Corp (NASDAQ:CNVS), leading to a deluge of new film releasing and marketing opportunities.

• The company is expanding its theatrical release slate with films like 'Silent Night, Deadly Night' and 'The Toxic Avenger', leveraging its unique media assets for cost-efficient marketing.

Negative Points

• Cineverse Corp (NASDAQ:CNVS) faces increased SG&A expenses, which rose by $3 million compared to the prior year quarter, primarily due to 'Terrifier 3'.

• The company is exploring new financing options to expand credit availability, indicating potential financial constraints for upcoming initiatives.

• Despite strong performance, the company acknowledges the need to prove the concept of its new marketing model for independent filmmakers.

• The podcast business, while growing, still has a programmatic fill rate of 50-55%, indicating room for improvement in direct sales.

• Cineverse Corp (NASDAQ:CNVS) is targeting a significant increase in subscription growth, which may require substantial investment and carries execution risk.