Cineverse Corp. Q2 FY2025 earnings call

• Terrifier Franchise Success: Terrifier 3 had unprecedented box office success, opening #1 with ~$19M domestic sales, now over $54M, leveraging Cineverse's ecosystem for marketing with under $1M in out-of-pocket marketing spend. - Financial Performance: Q2 revenues up 20% y-o-y (excluding legacy Digital Cinema), 40% q-o-q. Adjusted EBITDA positive at over $500,000, SG&A costs decreased by 7% y-o-y. - Strategic Initiatives: Expanding streaming footprint, enhancing ad sales, new distribution channels, technology investments, and leveraging the Terrifier playbook for other content like Silent Night, Deadly Night.

Streaming: Total subscribers for the quarter were approximately 1.36 million, marking a 13% increase over the prior year quarter. Screambox subscribers grew approximately 7% in September alone. Podcast: Podcast network expanded to 51 podcasts, with October being a record month having 15 million downloads, aiming for 8-figure annual revenues. Advertising: Booked revenue up over 60% q-o-q, attracting major clients and non-entertainment brands like Macy's and Wendy's. Technology (Matchpoint): Strong progress with over 20 billion ad requests processed in October, key hires, and a pipeline of opportunities. Content Licensing: Revenue from digital licensing up, with Terrifier 3's impact expected in future quarters, including significant theatrical and ancillary revenues.

• Terrifier 3 Impact: Expect significant financial contributions from Terrifier 3 in the next quarter, including theatrical revenues of over $20M by December 31st and high-margin revenues from ancillary markets. - Financial Outlook: Expect operating cash flow positive for full fiscal 2025, stock repurchase program extended with 31,000 shares repurchased during the quarter, and continued growth in podcast and advertising lines of business.

• Market Uncertainties: Potential risks to business and financial results from uncertainties, risks, and assumptions as per SEC filings. - Competitive Pressures: Competition in streaming, advertising, and content licensing markets could impact performance.

Q: Dan Kurnos asks about positioning the company post-Terrifier 3 success and plans for rereleases.

A: Chris McGurk talks about leveraging the ecosystem for other content and evaluating properties, stating they're sorting through properties and aim to make announcements in 2-3 months.

Q: Brian Kinstlinger asks about evaluating independent titles.

A: Chris McGurk discusses evaluating properties based on leverage of ecosystem, built-in audience, and greenlighting process, looking for properties with online buzz and known IP.

Q: Jay Petschek asks about differentiators in AI data business.

A: Erick Opeka and Tony Huidor discuss unique capabilities in content distribution and scalable platform, highlighting ability to deliver large volumes of content efficiently for AI licensing with Matchpoint's infrastructure.