Cineverse Corp. Q3 FY2025 earnings call

• Chris McGurk highlighted the strongest quarter in the company's history, driven by Terrifier 3's success, with $54 million domestic box office and strong digital/sales performance. New film slate includes Silent Night Deadly Night, Toxic Avenger, and Wolf Creek Legacy. • Mark Lindsey discussed record revenues, 48% operating margin within target range, SG&A expenses returning to normalized run rate, and strong cash position with over $13 million cash on hand and zero debt. • Eric Opeka outlined next-generation theatrical strategy focusing on proven IP, cost-efficient marketing, and scaling streaming business. Mentioned SVOD subscribers at 1.38 million, fast channels with over 2.1 billion minutes in Q3, and advancements in Matchpoint business with new clients and AI initiatives.

Cineverse reported record revenues of $40.7 million for the third quarter, a 207% increase from the same quarter last year ($13.3 million). Streaming and digital revenues grew by 48% year-over-year, and podcast and other revenue grew by 138% year-over-year. Total revenues were up $27.5 million from the prior year quarter, with net income at $7.2 million, a $9.9 million increase from the prior year quarter, and adjusted EBITDA at $10.8 million, a $9 million increase from the prior year quarter.

• Expect material revenue increase in fiscal fourth quarter ended March 31, 2025, compared to prior year quarter. • SG&A expenses expected to return to normalized run rate. • Exploring additional debt capital to fund upcoming initiatives. • Expect operating cash flow positive for full fiscal year 2025.

• Forward-looking statements subject to risks, uncertainties, and assumptions as described in SEC filings. • Potential differences between business and financial results and forward-looking statements due to various factors. • Market uncertainties affecting the company's growth and financial performance.

Q: Dan Kurnos asked about screen size for film releases and potential expansion into other genres.

A: Chris McGurk stated they aim for 1,500 to 2,500 screens per film, targeting average 2,000 screens, and expect to expand into other genres with favorable economics similar to Terrifier.

Q: Brian Kinstlinger inquired about content prices, return on invested capital, cineSearch monetization, and Matchpoint revenue opportunities.

A: Chris McGurk mentioned core content investments below $5 million for relevant films, Erick Opeka discussed cineSearch in active development with commercial opportunities next fiscal year, and Matchpoint targeting SMB and enterprise customers with varying revenue potential.