- Consolidated Fourth Quarter Revenue of $16.9 Million Up 104% Over Prior Year Led by Record Streaming Revenue
- Consolidated Full Year Revenue of $56.1 Million Up 78% Over Prior Year
- Streaming Revenue Up 108% Over Prior Full Year
- Ad-Supported Streaming Revenue Up 147% Over Prior Full Year
- Full Year Net Income of $1.8 Million or $0.01 Per Share
LOS ANGELES, CA / ACCESSWIRE / July 1, 2022 / The following release corrects and replaces the one that was sent out on June 27.
Correction: Final audited results were filed in today’s Annual Report on Form 10-K reporting Full Year Fiscal 2022 Consolidated Revenues of $56.1 million, Adjusted EBITDA of $11.0 million and Net Income of $1.8 million. An adjustment to Net Income for Q1 Fiscal 2022 in the amount of $0.6 million, comprised of a $0.9 million tax provision partially offset by a $0.3 million valuation adjustment to stock-based compensation, was made, which increased Net Income for the year to $1.8 million. Full Year EPS were not impacted. Additionally, fourth quarter and full year Adjusted EBITDA increased by $3.9 million. As a result, the Q4 Fiscal 2022 Adjusted EBITDA was $3.5 million, and the full year 2022 Adjusted EBITDA was $11.0 million. The tables in this release have been updated to reflect these adjustments.
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% to $16.9 million. This was driven by record-high streaming revenues that included a 109% increase in ad-supported streaming revenues, which were also up an incredible 793% on a two-year basis,” said Chris McGurk, Chairman and CEO of Cinedigm. “Our full-year revenues of $56.1 million were up 78%, driven by a 108% increase in our streaming channel revenues, again led by ad-supported revenue growth of 147%, 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% and 514%, 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 monetization of our legacy Cinema Digital Equipment business, this rapid revenue growth generated $11.0 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, monetizable 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 monetize 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 & 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 utilize 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% 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% 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 The Dove Channel, and several premium third-party branded channels such as The Bob Ross Channel and Real Madrid TV;
- Adjusted EBITDA was $3.5 million in the current year quarter, an improvement of $6.0 million versus negative Adjusted EBITDA of $2.5 million in the prior year period;
- Net loss of $2.6 million, or $(0.01) per share, an improvement of $4.3 million or $0.04 per share, versus a net loss of $6.9 million, or $(0.05) per share, in the prior year quarter.