Wednesday, April 24, 2024

Cinedigm Reports Fourth Quarter and 2022 Financial Results

Cinedigm Corp. (“Cinedigm” or “the Company”) (NASDAQ:CIDM), a premier streaming technology and entertainment company super-serving enthusiast fan bases, today announced its audited financial results for the three and twelve-month periods ended March 31, 2022.

“We had tremendous success again this fourth fiscal quarter, growing our total revenues by 104 percent to $16.9 million. This was driven by record-high streaming revenues that included a 109 percent increase in ad-supported streaming revenues, which were also up an incredible 793 percent on a two-year basis,” said Chris McGurk, Chairman and CEO of Cinedigm. “Our full-year revenues of $56.1 million were up 78 percent, driven by a 108 percent increase in our streaming channel revenues, again led by ad-supported revenue growth of 147 percent, strongly outperforming the rest of the industry. On a two-year basis, full year streaming channel and ad-supported revenues rocketed up as well, higher by 290 percent and 514 percent, respectively. We achieved these impressive results because we aggressively entered the high growth ad-supported streaming business several years ago while many other companies continued to solely focus on the highly competitive and expensive general entertainment subscription business. Combined with the successful monetisation of our legacy Cinema Digital Equipment business, this rapid revenue growth generated $7.1 million in Adjusted EBITDA for the full fiscal year. That helped eliminate all our debt, fund the bulk of the important Digital Media Rights(DMR) acquisition and generate positive net income for the full year.”

McGurk continued, “Clearly, our unique diversified streaming and content strategy is working and driving impressive results. And now, adding to this strong business momentum, we are leveraging our vastly increased scale, with a 30-channel streaming portfolio and 46,000 films and TV episodes in our library, by launching four new high-return growth initiatives that fully leverage our asset base, capabilities and industry-leading Matchpoint technology. These initiatives are the rollout of Cineverse, which will provide consolidated access and cross promotion for all our streaming properties, the aggressive expansion of Cinedigm’s Podcast Network, already with a portfolio of 25 podcasts, the rapid launch of comprehensive in-house advertising capabilities, and the imminent rollout of Matchpoint 2.0, which will provide additional revenue opportunities via content aggregation and SaaS services. We expect all these initiatives will generate substantial new multi-million dollar annual revenue streams with minimal working capital and overhead requirements.”

Erick Opeka, Chief Strategy Officer and President, Cinedigm Networks stated, “The combination of DMR with Cinedigm’s fast-growing portfolio of streaming brands and 46,000 title library has created one of the largest overall audiences in streaming. Today, the Company entertains and delights more than 87 million viewers a month across all of our channels, generating more than 2.3 billion minutes viewed per quarter and growing. Clearly, our vision that enthusiast audiences at global scale can create massive, monetisable audiences is being proven by the rapid growth, engagement and revenue produced by our base of loyal fans.”

Opeka continued, “As we enter the long stretch of our fiscal year, we are excited to continue building on this momentum with new, branded channel launches like The Elvis Presley Channel, the launch of our new, scale streaming service called Cineverse, the rapid scaling of our podcast business, and the launch of our direct sales force to further monetise our portfolio. Cinedigm now has all of the pieces in place to become the next great streaming company – but with the added benefit of diverse, fast growing revenue streams and channels, unlike many of our competitors.”

Tony Huidor, Chief Technology and Product Officer of Cinedigm, stated, “Technology remains key to the foundation of our business as it drives our relentless goal to deliver high quality content/channel experiences at scale with industry-leading automation that drive tremendous cost efficiencies. We continue to expand our engineering expertise in India and utilise that competitive advantage to improve our Matchpoint 2.0 platform, as we work toward the launch of Cineverse and stay at the forefront of leading-edge industry innovation including AI and the anticipated metaverse.”

Key Fourth Quarter Financial Results (Quarter Ended March 31, 2022):

  • Consolidated revenue was $16.9 million, up 104 percent over the prior year quarter, driven by organic user growth, increasing market demand for Cinedigm’s extensive connected television ad inventory, the launch of new streaming channels, as well as legacy digital cinema equipment sales.
  • Ad-supported streaming channel revenue increased 109 percent over the prior year quarter.
  • Streaming revenue growth was also driven by continued expansion of distribution from more than 19 new distribution points. Additionally, the Company continued to optimize its advertising technology, which had a positive and material impact on render rate, fill rate, and CPMs.
  • With the completion of the DMR acquisition at the end of the fourth quarter, the Company has acquired a total of 15 new streaming channels and 15,000 new films and TV episodes through seven roll-up acquisitions during the previous 16 months.
  • The Company now has a portfolio of 30 streaming channels positioned in AVOD, SVOD and FAST with over 50 major advertising partners including 15 wholly owned and operated channels such as Fandor, Screambox and TheDove Channel, and several premium third-party branded channels such as TheBob Ross Channel and Real Madrid TV.
  • Adjusted EBITDA was a negative $0.4 million in the current year quarter, an improvement of $2.1 million versus negative Adjusted EBITDA of $2.5 million in the prior year period.
  • Net loss of $3.1 million, or $(0.02) per share, an improvement of $3.8 million or $0.03 per share, versus a net loss of $6.9 million, or $(0.05) per share, in the prior year quarter.

Key Full Year Financial Results (Twelve-Months Ended March 31, 2022):

  • Consolidated revenue was $56.1 million, up 78 percent over the prior year, driven by the launch of new streaming channels, roll-up acquisitions, 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 108 percent over the prior year.
  • Ad-supported streaming channel revenues increased 147 percent over the prior year.
  • Subscription streaming channel revenues increased 63 percent over the prior year.
  • Adjusted EBITDA was $7.1 million in the current year versus a negative $2.9 million in the prior year, representing an increase of $10.0 million.
  • Generated net income of $1.2 million, or $0.01 per share, versus a net loss of $63.2 million, or $(0.49) per share, in the same period of the prior year.
  • Strong balance sheet with $13.1 million in cash and no debt.


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