- Cinedigm ( NASDAQ: CIDM ) slipped sharply on Tuesday despite reporting revenue beat in its second quarter earnings results.
- Revenue of $13.59M (-9.4% Y/Y) beats by $2.04M . The company explained the decrease in consolidated revenue was driven by a reduction of $4.8M in legacy Digital Cinema equipment sales as that business winds down and becomes fully monetized.
- However, total streaming revenue increased 98% to $8.1M, driven by an increase of 131% in ad-supported revenue and a 43% increase in subscription revenue compared to year-ago quarter. Content and Entertainment revenue rose 38% Y/Y to $12.2M.
- Subscribers to the company's subscription video streaming services increased to approximately 984,000, representing an increase of 45% Y/Y.
- Adjusted EBITDA was negative $2.2M in the current year quarter, compared to positive Adjusted EBITDA of $5.5M, reflecting reduction in legacy Digital Cinema equipment sales and fees.
- Net Loss was $6.1M, which also included a non-operating charge of $1.3M for the company's investment in A Metaverse Company.
- GAAP EPS of -$0.03 in-line.
- Forward Looking Statement: "Along with new partner expansion, we expect these initiatives will generate annual revenues of over $50 million at steady state. In addition, we are streamlining our cost structure as we reap the synergies and scale benefits from recently acquired assets. We expect to generate at least $7.5 million in annual cost savings and achieve our goal of long-term sustainable profitability this year," commented Chris McGurk, Chairman and CEO of Cinedigm.
- Long-Term Growth Goals for the Next 2-4 Years: The company is targeting at least 50% annual revenue growth in streaming.
- Growing annual revenue to $150M through both organic and acquired revenue and the content library to 75,000 titles.
- CIDM stock is down 12% to trade at $0.67.
- On May 12, Seeking Alpha Quant System issued warning at Strong Sell rating citing, CIDM is at high risk of performing badly due to decelerating momentum and inferior profitability when compared to other communication services stocks.
For further details see:
Cinedigm targets $7.5M annual cost saving, beats revenue consensus: Q2 Results