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CuriosityStream Announces Third Quarter 2021 Financial Results

November 09, 2021
  • Increased 2021 revenue visibility to 100% with $71 million committed
  • Third quarter 2021 revenue of $18.7 million, up 114% year-over-year
  • Grew direct subscribers 50% year-over-year
  • Announced enhanced strategic partnership with and investment into Nebula, the world’s largest creator-owned streaming and technology platform

SILVER SPRING, Md.--(BUSINESS WIRE)-- CuriosityStream Inc. (NASDAQ: CURI), a global factual entertainment company, today announced its financial results for the third quarter ended September 30, 2021.

“The triple-digit revenue growth we generated during the third quarter is a testament to the success of our unique, multifaceted content monetization strategy and the broad appeal of our award-winning factual content. With business momentum continuing into the fourth quarter, we are thrilled to announce that 100% of our fiscal year 2021 revenue target of $71 million is now committed,” said Clint Stinchcomb, President & CEO. “As we accelerate the pace of new content additions to our platform this quarter to the highest level in our company’s history, we are laying the groundwork for attractive long-term growth as we fulfill our mission to satisfy humanity's enduring curiosity about our world with premium factual content that informs, enchants and inspires.”

Third Quarter 2021 Financial Results

  • Revenue of $18.7 million, up from $8.7 million in the third quarter of 2020;
  • Total paying subscribers approximately 20 million, up 43% year-over-year;
  • Gross margin of 49% compared to 61% in the third quarter of 2020;
  • Net income of $0.8 million compared to net loss of $(6.7) million in the third quarter of 2020; and
  • EBITDA of $(7.9) million compared to EBITDA of $(6.7) million in the third quarter of 2020.

Third Quarter 2021 Business Highlights

  • Entered into an enhanced strategic partnership with and investment into Nebula, the world’s largest creator-owned streaming and technology platform with 350,000 paying subscribers and 140+ active creators who have over 120 million combined YouTube subscribers;
  • Premiered RESCUED CHIMPANZEES OF THE CONGO WITH JANE GOODALL, SECRETS OF CIVILIZATION,and BECOMING MARTIAN, a new season of BUTTERFLY EFFECT, new episodes of FASTER and BREAKTHROUGH,and our acclaimed feature-doc HEVAL; and
  • Announced a multi-year distribution partnership with fuboTV, the leading sports-first live TV streaming platform.

Financial Outlook

For the full year 2021, CuriosityStream continues to expect the following:

  • Revenue of at least $71 million, representing 80% year-over-year growth

Conference Call Information

CuriosityStream will host a Q&A conference call today to discuss the Company's Q3 2021 results at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time). A live audio webcast of the call will be available on the CuriosityStream Investor Relations website at https://investors.curiositystream.com. Participants may also dial-in, toll free at (888) 510-2008 or International at (646) 960-0306 and reference conference ID# 3957505. An audio replay of the conference call will be available for two weeks following the call on the CuriosityStream Investor Relations website at https://investors.curiositystream.com.

Forward-Looking Statements

Certain statements in this press release may be considered “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 including, but not limited to, CuriosityStream’s expectations or predictions of future financial or business performance or conditions, the pace of new content additions, long-term growth and the information under the heading “Financial Outlook” in this press release. Forward-looking statements are inherently subject to risks, uncertainties and assumptions. Generally, statements that are not historical facts, including statements concerning possible or assumed future actions, business strategies, events or results of operations, are forward-looking statements. These statements may be preceded by, followed by or include the words “believes,” “estimates,” “expects,” “projects,” “forecasts,” “may,” “will,” “should,” “seeks,” “plans,” “scheduled,” “anticipates,” “predicts” or “intends” or similar expressions. Such forward-looking statements involve risks and uncertainties that may cause actual events, results or performance to differ materially from those indicated by such statements. Certain of these risks are identified and discussed under “Risk Factors” in CuriosityStream’s Annual Report on Form 10-K for the year ended December 31, 2020, filed with the Securities and Exchange Commission (the “SEC”) on March 31, 2021, as amended by the amended Annual Report on Form 10-K/A, filed with the SEC on May 7, 2021, and in CuriosityStream’s other SEC filings. These risk factors will be important to consider in determining future results and should be reviewed in their entirety. Forward-looking statements are based on the current belief of the management of CuriosityStream, based on currently available information, as to the outcome and timing of future events, and involve factors, risks, and uncertainties that may cause actual results in future periods to differ materially from such statements. However, there can be no assurance that the events, results or trends identified in these forward-looking statements will occur or be achieved. Forward-looking statements speak only as of the date they are made, and CuriosityStream is not under any obligation, and expressly disclaims any obligation to update, alter or otherwise revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law. Readers should carefully review the statements set forth in the reports that CuriosityStream has filed or will file from time to time with the SEC.

In addition to factors previously disclosed in CuriosityStream’s reports filed with the SEC and those identified elsewhere in this communication, the following factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance: (i) risks related to CuriosityStream’s limited operating history; (ii) the effects of pending and future legislation; (iii) risks of the internet, online commerce and media industry; (iv) the highly competitive nature of the internet, online commerce and media industry and CuriosityStream’s ability to compete therein; (v) litigation, complaints, and/or adverse publicity; (vi) the ability to meet Nasdaq’s listing standards and (vii) privacy and data protection laws, privacy or data breaches, or the loss of data.

Non-GAAP Financial Measures

To supplement our unaudited consolidated statement of operations, which is prepared in accordance with GAAP, we present EBITDA in this press release. Our use of non-GAAP financial measures, such as EBITDA, has limitations as an analytical tool, and these measures should not be considered in isolation or as a substitute for analysis of financial results as reported under GAAP.

We use this non-GAAP financial measure in conjunction with financial measures prepared in accordance with GAAP for planning purposes, including in the preparation of our annual operating budget, as a measure of our core operating results and the effectiveness of our business strategy, and in evaluating our financial performance. This measure provides consistency and comparability with past financial performance, facilitates period-to-period comparisons of core operating results, and also facilitates comparisons with other peer companies, many of which use similar non-GAAP financial measures to supplement their GAAP results. In addition, EBITDA is widely used by investors and securities analysts to measure a company’s operating performance. We exclude the following items from EBITDA: other income (expense), income taxes, depreciation and amortization, and loss / (gain) on change in fair value on warrants.

Investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures as an analytical tool. In particular, (1) although depreciation and amortization expense are non-cash charges, the assets subject to depreciation and amortization may have to be replaced in the future, and EBITDA does not reflect cash capital expenditure requirements for such replacements or for new capital expenditure requirements, and (2) EBITDA does not reflect: (a) changes in, or cash requirements for, our working capital needs; or (b) tax payments that may represent a reduction in cash available to us. The non-GAAP measure we use may be different from non-GAAP financial measures used by other companies, limiting their usefulness for comparison purposes. We compensate for these limitations by providing specific information regarding the GAAP items excluded from these non-GAAP financial measures. A reconciliation of these non-GAAP measures has been provided in the financial statement tables included in this press release and investors are encouraged to review the reconciliation.

About Curiosity Inc.

Curiosity Inc. is the entertainment brand for people who want to know more. The global media company is home to award-winning original and curated factual films, shows and series covering science, nature, history, technology, society and lifestyle. With approximately 20 million paid subscribers worldwide and thousands of titles, the company operates the flagship Curiosity Stream SVOD service, available in more than 175 countries worldwide; Curiosity Channel, the linear television channel available via global distribution partners; and Curiosity Studios, which oversees original programming. Curiosity Inc. recently completed the acquisition of One Day University, which provides access to engaging talks and lectures from leading university and college professors in the United States. Curiosity Inc. is a wholly owned subsidiary of CuriosityStream Inc. (Nasdaq: CURI). For more information, visit CuriosityStream.com.

CuriosityStream Inc.

Consolidated Balance Sheets

(in thousands, except par value)

 

 

 

September 30,

 

 

December 31,

 

 

 

2021

 

 

2020

 

 

 

(unaudited)

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

Cash and cash equivalents

 

$

21,346

 

 

$

11,203

 

Restricted cash

 

 

2,331

 

 

 

6,181

 

Short-term investments in debt securities

 

 

59,497

 

 

 

22,171

 

Accounts receivable

 

 

13,303

 

 

 

7,222

 

Other current assets

 

 

3,593

 

 

 

4,467

 

Total current assets

 

 

100,070

 

 

 

51,244

 

 

 

 

 

 

 

 

 

 

Investments in debt securities

 

 

48,830

 

 

 

2,825

 

Investments in equity method investees

 

 

9,803

 

 

 

-

 

Property and equipment, net

 

 

1,278

 

 

 

1,346

 

Content assets, net

 

 

61,737

 

 

 

32,926

 

Intangibles, net

 

 

1,490

 

 

 

-

 

Goodwill

 

 

2,963

 

 

 

-

 

Other assets

 

 

698

 

 

 

254

 

Total assets

 

$

226,869

 

 

$

88,595

 

 

 

 

 

 

 

 

 

 

Liabilities and stockholders’ equity (deficit)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

Current content liabilities

 

$

7,506

 

 

$

2,116

 

Accounts payable

 

 

5,537

 

 

 

3,577

 

Accrued expenses and other liabilities

 

 

4,819

 

 

 

3,313

 

Deferred revenue

 

 

21,999

 

 

 

12,678

 

Total current liabilities

 

 

39,861

 

 

 

21,684

 

 

 

 

 

 

 

 

 

 

Warrant liability

 

 

14,520

 

 

 

20,843

 

Non-current deferred rent liability

 

 

1,300

 

 

 

1,027

 

Other liabilities

 

 

196

 

 

 

67

 

 

 

 

 

 

 

 

 

 

Total liabilities

 

 

55,877

 

 

 

43,621

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity (deficit)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stock, $0.0001 par value – 1,000 shares authorized at September 30, 2021 and December 31, 2020; zero shares issued and outstanding as of September 30, 2021 and December 31, 2020

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

Common stock, $0.0001 par value – 125,000 shares authorized at September 30, 2021 and December 31, 2020; 52,607 shares issued and outstanding at September 30, 2021; 40,289 shares issued and 39,542 shares outstanding as of December 31, 2020

 

 

5

 

 

 

4

 

 

 

 

 

 

 

 

 

 

Additional paid-in capital

 

 

351,176

 

 

 

197,507

 

Accumulated other comprehensive income (loss)

 

 

(1,413

)

 

 

10

 

Accumulated deficit

 

 

(178,776

)

 

 

(152,547

)

Total stockholders’ equity (deficit)

 

 

170,992

 

 

 

44,974

 

Total liabilities and stockholders’ equity (deficit)

 

$

226,869

 

 

$

88,595

 

CuriosityStream Inc.

Consolidated Statements of Operations

(in thousands, except for per share data)

(unaudited)

 

 

 

For the three months ended
September 30,

 

 

For the nine months ended
September 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

18,705

 

 

$

8,744

 

 

$

43,985

 

 

$

28,260

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues

 

 

9,553

 

 

 

3,411

 

 

 

19,433

 

 

 

10,748

 

Advertising and marketing

 

 

9,320

 

 

 

7,800

 

 

 

33,089

 

 

 

28,809

 

General and administrative

 

 

8,058

 

 

 

4,286

 

 

 

25,943

 

 

 

11,907

 

 

 

 

26,931

 

 

 

15,497

 

 

 

78,465

 

 

 

51,464

 

Operating loss

 

 

(8,226

)

 

 

(6,753

)

 

 

(34,480

)

 

 

(23,204

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in fair value of warrant liability

 

 

8,345

 

 

 

-

 

 

 

6,323

 

 

 

-

 

Interest and other income

 

 

595

 

 

 

101

 

 

 

1,891

 

 

 

519

 

Equity interests income

 

 

165

 

 

 

-

 

 

 

165

 

 

 

-

 

Income (Loss) before income taxes

 

 

879

 

 

 

(6,652

)

 

 

(26,101

)

 

 

(22,685

)

Provision for income taxes

 

 

49

 

 

 

41

 

 

 

128

 

 

 

118

 

Net income (loss)

 

$

830

 

 

$

(6,693

)

 

$

(26,229

)

 

$

(22,803

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less preferred dividends and accretion of issuance costs

 

 

-

 

 

 

(4,523

)

 

 

-

 

 

 

(13,114

)

Net income (loss) attributable to common stockholders

 

$

830

 

 

$

(11,216

)

 

$

(26,229

)

 

$

(35,917

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per share attributable to common stockholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.02

 

 

$

(0.85

)

 

$

(0.51

)

 

$

(2.73

)

Diluted

 

$

(0.14

)

 

$

(0.85

)

 

$

(0.63

)

 

$

(2.73

)

Weighted average number of common shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

52,592

 

 

 

13,165

 

 

 

51,091

 

 

 

13,165

 

Diluted

 

 

52,677

 

 

 

13,165

 

 

 

51,736

 

 

 

13,165

 

CuriosityStream Inc.

Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

 

 

 

For the nine months ended
September 30,

 

 

 

2021

 

 

2020

 

Cash flows from operating activities

 

 

 

 

 

 

Net loss

 

$

(26,229

)

 

$

(22,803

)

Adjustments to reconcile net loss to net cash used in operating activities

 

 

 

 

 

 

 

 

Change in fair value of warrant liability

 

 

(6,323

)

 

 

-

 

Additions to content assets

 

 

(40,954

)

 

 

(14,004

)

Change in content liabilities

 

 

5,390

 

 

 

(1,141

)

Amortization of content assets

 

 

14,143

 

 

 

6,805

 

Amortization, depreciation and accretion

 

 

1,041

 

 

 

399

 

Stock-based compensation

 

 

5,446

 

 

 

1,256

 

Equity interests income

 

 

(165

)

 

 

-

 

Changes in operating assets and liabilities

 

 

 

 

 

 

 

 

Accounts receivable

 

 

(6,046

)

 

 

(4,023

)

Other assets

 

 

274

 

 

 

(723

)

Accounts payable

 

 

1,943

 

 

 

(3,263

)

Accrued expenses and other liabilities

 

 

641

 

 

 

210

 

Deferred revenue

 

 

9,042

 

 

 

1,784

 

Net cash used in operating activities

 

 

(41,797

)

 

 

(35,503

)

 

 

 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

 

 

 

Purchases of property and equipment

 

 

(291

)

 

 

(299

)

Business acquisitions

 

 

(5,362

)

 

 

-

 

Investment in equity method investees

 

 

(9,260

)

 

 

-

 

Payment of transaction costs - equity investments

 

 

(304

)

 

 

-

 

Sales of investments in debt securities

 

 

15,676

 

 

 

39,744

 

Maturities of investments in debt securities

 

 

50,792

 

 

 

8,500

 

Investments in debt securities

 

 

(151,861

)

 

 

(12,227

)

Net cash (used in) provided by investing activities

 

 

(100,610

)

 

 

35,718

 

 

 

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

 

 

 

Exercise of stock options

 

 

497

 

 

 

36

 

Exercise of warrants

 

 

54,898

 

 

 

-

 

Payments related to tax withholding

 

 

(89

)

 

 

-

 

Proceeds from issuance of Common Stock

 

 

94,101

 

 

 

-

 

Payment of offering costs

 

 

(707

)

 

 

(1,646

)

Borrowings on line of credit

 

 

-

 

 

 

8,250

 

Repayments on line of credit

 

 

-

 

 

 

(7,300

)

Net cash provided by (used in) financing activities

 

 

148,700

 

 

 

(660

)

 

 

 

 

 

 

 

 

 

Net increase (decrease) in cash, cash equivalents and restricted cash

 

 

6,293

 

 

 

(445

)

Cash, cash equivalents and restricted cash, beginning of period

 

 

17,384

 

 

 

8,819

 

Cash, cash equivalents and restricted cash, end of period

 

$

23,677

 

 

$

8,374

 

 

 

 

 

 

 

 

 

 

Supplemental schedule of non-cash financing activities:

 

 

 

 

 

 

 

 

Preferred dividends and accretion of issuance costs

 

$

-

 

 

$

13,114

 

Supplemental disclosure:

 

 

 

 

 

 

 

 

Capitalized transaction cost included in accounts payable and accrued expenses

 

$

74

 

 

$

-

 

Cash paid for taxes

 

$

31

 

 

$

250

 

Reconciliation of GAAP Financial Metrics to Non-GAAP

(in thousands)

(unaudited)

 
Reconciliation of Net Income (Loss) to EBITDA
 

For the three months ended
September 30,

For the nine months ended
September 30,

 

2021

 

 

2020

 

 

2021

 

 

2020

 

 
Net income (loss)

 

830

 

 

(6,693

)

 

(26,229

)

 

(22,803

)

 
Change in fair value of warrant liability

 

(8,345

)

 

-

 

 

(6,323

)

 

-

 

Interest and other income

 

(595

)

 

(101

)

 

(1,891

)

 

(519

)

Provision for Income taxes

 

49

 

 

41

 

 

128

 

 

118

 

Depreciation and amortization

 

186

 

 

81

 

 

403

 

 

256

 

EBITDA

$

(7,875

)

$

(6,672

)

$

(33,912

)

$

(22,948

)

 

CuriosityStream Communications
Ashley Huston
Ashley.Huston@CuriosityStream.com

CuriosityStream Investor Relations
Denise Garcia
IR@CuriosityStream.com

Source: CuriosityStream Inc.

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