(“Cinedigm” or “the Company”) (NASDAQ:CIDM), a premier streaming technology and entertainment company super-serving enthusiast fan bases, today announced its financial results for the three and nine-month periods ended December 31, 2021.
“We had our strongest results ever in streaming this quarter, registering triple-digit growth for the fourth quarter in row,” said Chris McGurk, Chairman and CEO of Cinedigm. “We have a unique strategy and portfolio business model in technology, content and streaming that provides multiple revenue streams to fuel this record growth and separates us from others in the space. We also have a strong balance sheet with zero debt and are profitable year-to-date. Clearly, we continue to fire on all cylinders.”
Erick Opeka, Chief Strategy Officer and President, Cinedigm Networks stated, “In the quarter, we delivered more than 104% revenue growth in our streaming networks business, more than double the 50% annual growth guidance we provided earlier in the fiscal year. Our relentless focus on providing customers the freedom to stream their passions, no matter their device preference or budget, is truly paying off.” He continued, “Our current content library of 35,000 streaming assets is one of the largest libraries in the world as compared to other key streaming service providers like Amazon Prime , Netflix and Tubi .” (Data according to Ampere Analytics, December 2021.)
Mr. McGurk continued, “Our recent augmented reality (AR) announcement with Nreal , our state-of-the-art proprietary Matchpoint ® streaming technology and the ramp up of our engineering team at Cinedigm India all point toward Cinedigm’s continued leading position at the forefront of where media business innovation is heading – be it the Metaverse, AR, NFTs, or streaming enhancements.”
Cinedigm’s film and television library grew to approximately 40,000 assets owned or under management at the end of the quarter. Of that total, approximately 35,000, or 90%, of the titles are streaming assets. This represents an increase of over 14,000 titles, or 69%, over the prior year quarter, and was driven by M&A activity of substantial film, television and streaming channel catalogs, as well as ongoing content acquisitions, and efforts to support the Company’s streaming and distribution businesses.
Key Third Quarter Financial Results (Quarter Ended December 31, 2021):
- Consolidated revenues were $14.1 million, up 42% over the prior year quarter, driven by organic user growth, increasing market demand for Cinedigm’s extensive connected television ad inventory, and the launch of new streaming channels;
- Cinedigm’s streaming revenue growth was also driven by continued expansion of distribution from more than 19 new distribution points. Additionally, the Company continued to optimize it’s advertising technology, which had a positive and material impact on render rate, fill rate, and CPMs;
- Streaming channel revenues increased 104% over prior year quarter, setting a new Company record;
- Ad-supported streaming channel revenues increased 100% over the prior year quarter;
- Subscription streaming channel revenues increased 109% over the prior year quarter;
- Adjusted EBITDA was $1.3 million in the current year quarter versus $0.9 million in the prior year period, representing an increase of $0.4 million or 44%;
- Recorded a net loss of $0.5 million, or nil – $0.00 per share, an improvement of $9.2 million versus a net loss of $9.7 million, or $(0.07) per share, in the prior year quarter.
Key First Nine Month Financial Results (Nine-Months Ended December 31, 2021):
- Consolidated revenues were $39.2 million, up 69% over the same period of the prior year, driven by the launch of two new streaming channels, organic growth in existing channels, an expansion of the Company’s distribution with new and existing Smart TV platforms and contracted Cinema Equipment Sales;
- Streaming channel revenues increased 133% over the same period of the prior year;
- Ad-supported streaming channel revenues increased 171% over the same period of the prior year;
- Subscription streaming channel revenues increased 90% over the same period of the prior year;
- Adjusted EBITDA was $7.5 million in the current year versus a negative $0.4 million in the prior year period, representing an increase of $7.9 million;
- Generated net income of $4.3 million, or $0.03 per share, versus a net loss of $56.3 million, or $(0.49) per share, in the same period of the prior year, representing an improvement of $60.6 million or $0.52 per share;
- Strong balance sheet with $20.2 million in cash and zero debt.
Key Business Highlights During Third Quarter Fiscal 2022 (Quarter ended December 31, 2021):
- Total streaming minutes in the quarter rose to 1.33 billion, up 47% from the prior year quarter;
- Cumulative minutes streamed in the first nine months of the year were 3.92 billion, up more than 112% over the 184 billion minutes streamed in the prior year first nine months;
- Total monthly ad-supported streaming channel viewers in the quarter were approximately 33 million, up 44%, versus 22.6 million in the prior year quarter;
- Total subscribers to the Company’s subscription video streaming services increased to approximately 954,000, an increase of 466% from the prior year quarter.