CuriosityStream Inc. Q4 FY2024 earnings call

• Clint noted 2024 saw a year-over-year cash flow increase of about $26 million, with adjusted free cash flow in Q4 at $3.3 million, the highest ever. • Key factors for 2025 include aggregated rights to hundreds of thousands of hours of monetizable video/audio, lower operational costs vs recurring revenue, falling translation costs via AI, new currency rollouts, and enhanced talent density. • Brady discussed adjusted free cash flow improvement, revenue details, gross margin, operating expenses reduction (advertising/marketing and G&A down $7.7M in 2024), dividend program increase, and share repurchase plan.

Fourth quarter revenue was $14.1 million, exceeding guidance, with direct business as the largest revenue category generating $9.4 million in Q4 and $38.6 million for the full year. Full year total revenue was $51.1 million, but flat year-over-year when excluding non-cash deals. Fourth quarter gross margin was 52%, up from 45% the prior year, with gross margin excluding content amortization at 85% in Q4 compared to 80% a year ago.

• 2025 expected to be a return to topline growth in double digits and continued bottom line growth. • Q1 2025 guidance: revenue in range of $14.5 million to $15.5 million, adjusted free cash flow in range of $1 million to $2 million. • Anticipate double-digit annual percentage growth in free cash flow in 2025.

• Forward-looking statements are subject to various risks, uncertainties, and assumptions. Actual results could differ materially from forward-looking statements. Refer to SEC filings for material risks and important factors affecting actual results.

Q: Could you talk about revenue expectations for Q1 and full year, separating subscription and variable growth?

A: Clint explained subscription is recurring, variable is licensing/advertising. Licensing revenue likely to exceed direct revenue this year, with strong visibility on content rights.

Q: Could you talk about subscriber activity and managing service in macro uncertainty?

A: Clint discussed direct subscription business, differences from large services like Netflix, and learnings from past periods.

Q: Update on FAST channels and ad-driven businesses?

A: Clint mentioned excitement about FAST channels, new launches for flagship service and US Hispanic services, with potential for variable revenue growth.

Q: Describe differences in data licensing contracts for tech companies vs traditional media?

A: Clint explained tech company contracts are project-based with potential for repeat business, differing from traditional media deals which can be more contractual, but strong relationships key.