CuriosityStream Inc. CURI shares are skyrocketing premarket on Thursday following the release of its fourth-quarter FY23 results.
Revenue of $14.8 million fell slightly short of the expected $15.8 million. However, the company’s gross profit experienced a substantial surge to $6.7 million from $1.4 million a year prior, painting a bright picture for investors.
Remarkably, total advertising, marketing, general, and administrative expenses plummeted by 32% year-over-year, totaling $11.4 million.
In terms of operational performance, the company reported an adjusted EBITDA loss of $(3.4) million, a significant improvement from $(13.6) million in the corresponding quarter of the previous year. Moreover, EPS loss of $(0.09) exceeded the anticipated $(0.15).
By the end of December 31, 2023, CuriosityStream boasted cash and restricted cash reserves amounting to $38.2 million, with a clean slate in terms of debt obligations.
Dividend: CuriosityStream’s Board of Directors delighted investors by announcing a quarterly cash dividend of $0.025 per share, marking the company’s foray into a regular dividend payout scheme.
Outlook: Looking ahead, CuriosityStream projects first-quarter revenue ranging from $11.5 million to $12.5 million compared to the consensus estimate of $15.8 million. Additionally, the company anticipates adjusted free cash flow in the ballpark of $0.25 million to $1.00 million.
Clint Stinchcomb, the President & CEO, expressed, “Our fourth quarter revenue results aligned with our projections, surpassing our expectations for adjusted free cash flow. We witnessed sequential revenue growth in our Direct Business and continued our streak of reducing costs, achieving five consecutive quarters of improved adjusted free cash flow.”
“Looking forward, we are on track to achieve positive adjusted free cash flow in the first quarter of 2024. The initiation of the dividend program, fueled by excess cash, symbolizes our optimism regarding cash flow in the upcoming year,” Stinchcomb added.
Price Action: Investors cheered as CURI shares surged by 33.27% in premarket trading, reaching $0.7750 in the latest Thursday check.
