Q1 2027 Cineverse Corp Earnings Call Transcript
Key Points
- Cineverse Corp (CNVS) reported a 175% increase in total revenues year-over-year, driven by the acquisitions of Giant Worldwide and Inc.
- The company achieved its second consecutive positive adjusted EBITDA quarter, with a $2.6 million improvement over the prior year.
- Technology revenues now represent over 60% of total revenue, with a focus on recurring and durable income from A-list industry customers.
- Management has identified and is targeting over $13 million in annual cost savings and synergies, including a $1.8 million reduction in force.
- The company's streaming business saw record engagement, with 4.5 billion minutes streamed (up 33% year-over-year) and a 12% increase in SVOD subscribers to 1.52 million.
- Net loss attributable to common stockholders widened to $5.8 million, a $2.1 million increase from the prior year, due to higher SG&A, depreciation, and interest costs.
- Direct operating margin declined to 35% from 57% in the prior year, reflecting the impact of acquisitions and a high revenue share expense for ad tech.
- The company faces seasonal softness in advertising in the second quarter, which could impact near-term revenue.
- Net working capital is negative at $18.9 million, though it includes $18 million in deferred consideration and earn-out liabilities payable in equity.
- The company's cost reduction and synergy initiatives are not expected to be fully realized until the third and fourth fiscal quarters, delaying margin improvements.
Thank you for joining us, and welcome to the Cineverse first quarter fiscal year 2027 earnings call. (Operator Instructions)
I will now hand the conference over to Gary Loffredo, Chief Legal Officer, Secretary and Senior Adviser. Gary, please go ahead.
Good afternoon, everyone. Thank you for joining us for the Cineverse first quarter fiscal year 2027 financial results conference call. The press release announcing Cineverse results for the fiscal first quarter ended June 30, 2026, is available at the Investors section of the company's website at www.cineverse.com. A replay of this broadcast will also be made available on Cineverse's website after the conclusion of this call.
Before we begin, I would like to point out that certain statements made on today's call contain forward-looking statements. These statements are based on management's current expectations and are subject to risks, uncertainties and assumptions.
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