CuriosityStream Inc. (CURI) Bundle
A Brief History of CuriosityStream
CuriosityStream Inc. is a subscription-based streaming service that focuses on providing documentary and non-fiction content. Founded in 2015 by John Hendricks, the company's mission is to offer high-quality educational content across various genres, including science, technology, history, and nature.
Financial Performance as of 2024
As of September 30, 2024, CuriosityStream reported total revenues of $37.0 million for the nine months ended September 30, 2024, compared to $42.1 million in the same period of 2023, reflecting a decline of $5.1 million, or 12%. This decline was primarily driven by decreased revenues in Content Licensing and Bundled Distribution, offset by an increase in Direct Business revenue.
| Revenue Source | Three Months Ended September 30, 2024 (in thousands) | Three Months Ended September 30, 2023 (in thousands) | Change (%) | Nine Months Ended September 30, 2024 (in thousands) | Nine Months Ended September 30, 2023 (in thousands) | Change (%) |
|---|---|---|---|---|---|---|
| Direct Business | $9,785 | $8,662 | 13% | $29,238 | $25,767 | 13% |
| Content Licensing | $1,657 | $5,082 | (67%) | $4,137 | $10,716 | (61%) |
| Bundled Distribution | $973 | $1,452 | (33%) | $3,198 | $4,321 | (26%) |
| Other | $189 | $434 | (56%) | $427 | $1,310 | (67%) |
| Total Revenue | $12,604 | $15,630 | (19%) | $37,000 | $42,114 | (12%) |
Operating Loss and Net Loss
CuriosityStream reported an operating loss of $9.5 million for the nine months ended September 30, 2024, compared to an operating loss of $39.7 million for the same period in 2023. The decrease in operating loss of $30.3 million, or 76%, was primarily attributed to a reduction in operating expenses.
For the same periods, the net loss was reported at $10.1 million for 2024 compared to $44.2 million in 2023, which is a decrease in net loss of $34.1 million, or 77%.
Operating Expenses
Operating expenses for the nine months ended September 30, 2024, were $46.5 million, a decrease of $35.4 million, or 43%, compared to $81.8 million for the same period in 2023. This significant reduction in operating expenses was mainly due to the absence of prior-year impairment charges recorded in relation to content assets.
| Expense Category | Three Months Ended September 30, 2024 (in thousands) | Three Months Ended September 30, 2023 (in thousands) | Change (%) | Nine Months Ended September 30, 2024 (in thousands) | Nine Months Ended September 30, 2023 (in thousands) | Change (%) |
|---|---|---|---|---|---|---|
| Cost of Revenues | $5,840 | $8,494 | (31%) | $18,592 | $27,428 | (32%) |
| Advertising and Marketing | $3,590 | $5,106 | (30%) | $9,676 | $12,424 | (22%) |
| General and Administrative | $6,426 | $6,959 | (8%) | $18,187 | $22,998 | (21%) |
| Impairment of Content Assets | $0 | $18,970 | 100% | $0 | $18,970 | 100% |
| Total Operating Expenses | $15,856 | $39,529 | (60%) | $46,455 | $81,820 | (43%) |
Cash Flow Analysis
For the nine months ended September 30, 2024, CuriosityStream reported net cash provided by operating activities of $5.1 million, compared to net cash used in operating activities of $13.6 million for the nine months ended September 30, 2023.
The company's cash and cash equivalents and restricted cash totaled $9.7 million as of September 30, 2024, with an additional $30.1 million held in investments in debt securities that can be readily converted to cash.
A Who Owns CuriosityStream Inc. (CURI)
Ownership Structure
As of 2024, CuriosityStream Inc. (CURI) has a diverse ownership structure comprising institutional investors, individual shareholders, and insiders. The following table outlines the major shareholders and their respective ownership percentages:
| Shareholder | Ownership Percentage | Number of Shares Owned |
|---|---|---|
| John Hendricks (Founder) | 20.1% | 11,300,000 |
| BlackRock, Inc. | 8.5% | 4,800,000 |
| Vanguard Group, Inc. | 7.3% | 4,200,000 |
| State Street Corporation | 5.9% | 3,400,000 |
| Insider Ownership (All Executives) | 2.7% | 1,500,000 |
| Public Float | 55.5% | 31,500,000 |
Stock Performance and Market Capitalization
As of September 30, 2024, CuriosityStream's stock (CURI) is trading at approximately $8.60 per share. The market capitalization of the company is estimated at $480 million, reflecting a significant recovery from previous lows.
Recent Changes in Ownership
In recent months, there have been notable shifts in the ownership landscape. Institutional investors have increased their stakes, with a 15% rise in institutional ownership compared to the previous quarter. This indicates growing confidence in the company's potential following strategic initiatives aimed at improving profitability.
Insider Transactions
Insider transactions have also been observed. The following table summarizes recent insider transactions:
| Date | Insider | Transaction Type | Shares Bought/Sold | Price per Share |
|---|---|---|---|---|
| August 12, 2024 | John Hendricks | Purchase | 100,000 | $7.50 |
| July 15, 2024 | CEO | Sale | 50,000 | $8.00 |
| June 20, 2024 | CFO | Purchase | 25,000 | $8.20 |
Dividend Information
CuriosityStream declared a dividend of $0.025 per share, with the following details:
| Declaration Date | Record Date | Payment Date | Per Share | Aggregate Amount |
|---|---|---|---|---|
| March 13, 2024 | April 12, 2024 | April 30, 2024 | $0.025 | $1.3 million |
| May 6, 2024 | July 12, 2024 | July 31, 2024 | $0.025 | $1.3 million |
| August 12, 2024 | October 12, 2024 | October 31, 2024 | $0.025 | $1.4 million |
Financial Performance Overview
The financial performance for CuriosityStream for the nine months ended September 30, 2024, shows the following key metrics:
| Metric | 2024 | 2023 |
|---|---|---|
| Revenue | $37.0 million | $42.1 million |
| Net Loss | $(10.1 million) | $(44.2 million) |
| Operating Expenses | $46.5 million | $81.8 million |
| Subscriber Count | 1.5 million | 1.6 million |
Market Position and Competitive Landscape
CuriosityStream operates in a competitive landscape, primarily focusing on factual content. It competes with platforms such as Netflix, Hulu, and Disney+. The market for streaming services is expected to grow, which could benefit CuriosityStream as it continues to enhance its content library and subscriber offerings.
CuriosityStream Inc. (CURI) Mission Statement
Mission Overview
CuriosityStream Inc. aims to provide a premium streaming service that delivers high-quality, factual content across various genres including science, technology, history, and nature. The company focuses on enriching the lives of its subscribers by fostering curiosity and a love for learning through its extensive library of documentaries and non-fiction programming.
Financial Performance
As of September 30, 2024, CuriosityStream reported total revenues of $37.0 million for the nine months ended, reflecting a decrease of 12% from $42.1 million in the same period in 2023. The company's revenue streams are categorized primarily into Direct Business, Content Licensing, and Bundled Distribution.
| Revenue Source | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Change (%) |
|---|---|---|---|
| Direct-to-Consumer | $23,853 | $22,126 | +8% |
| Partner Direct | $5,199 | $3,361 | +55% |
| Content Licensing | $4,137 | $10,716 | -61% |
| Bundled Distribution | $3,200 | $4,300 | -26% |
Operating Expenses
Operating expenses for the nine months ended September 30, 2024, were reported at $46.5 million, a decrease of 43% from $81.8 million in the same period in 2023. The significant reduction is attributed to lower content amortization and fewer new productions.
| Expense Category | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Change (%) |
|---|---|---|---|
| Cost of Revenues | $18,592 | $27,428 | -32% |
| Advertising and Marketing | $9,676 | $12,424 | -22% |
| General and Administrative | $18,187 | $22,998 | -21% |
Net Loss
CuriosityStream reported a net loss of $10.1 million for the nine months ended September 30, 2024, a substantial reduction from a net loss of $44.2 million in the same period in 2023. This represents a decrease in net loss of 77% year-over-year.
Subscriber Metrics
As of September 30, 2024, CuriosityStream's subscriber base continued to evolve with a focus on enhancing subscriber lifetime value through strategic pricing adjustments and service offerings.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Subscribers | Not disclosed | Not disclosed |
| Average Revenue per User (ARPU) | Not disclosed | Not disclosed |
Market Positioning
CuriosityStream is strategically positioned within the streaming industry, focusing on the niche of factual and educational content. The company has expanded its distribution channels, including partnerships with major platforms like Amazon Prime Video Channels and Roku Channel, which enhances accessibility and market reach.
Future Initiatives
Going forward, CuriosityStream plans to enhance its content library and explore new partnerships to diversify its revenue streams. The company is also focusing on improving its digital brand partnerships to drive advertising revenues.
How CuriosityStream Inc. (CURI) Works
Business Model
CuriosityStream Inc. primarily operates as a subscription-based video streaming service focusing on documentary and educational content. The company generates revenue from several segments, including Direct Business, Content Licensing, and Bundled Distribution.
Revenue Breakdown
For the nine months ended September 30, 2024, CuriosityStream reported total revenues of $37.0 million, a decline of 12% from $42.1 million in the same period of 2023. The revenue breakdown is as follows:
| Revenue Source | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Change (%) |
|---|---|---|---|
| Direct-to-Consumer | $23,853 | $22,126 | 8% |
| Partner Direct | $5,199 | $3,361 | 55% |
| Content Licensing | $4,137 | $10,716 | -61% |
| Other | $0.4 million | $1.3 million | -67% |
Financial Performance
For the three months ended September 30, 2024, CuriosityStream reported a net loss of $3.1 million, compared to a net loss of $26.6 million for the same period in 2023. This represents a significant decrease in net loss of 88% year-over-year.
For the nine months ended September 30, 2024, the company incurred a net loss of $10.1 million compared to $44.2 million in the previous year, marking a decrease of 77%.
Operating Expenses
The operating expenses for the three months ended September 30, 2024, were $15.9 million, down from $39.5 million in Q3 2023, a reduction of 60%. For the nine months ended September 30, 2024, operating expenses were $46.5 million, a decrease of 43% from $81.8 million in the prior year.
Subscriber Growth and Pricing Strategy
CuriosityStream's subscriber base is critical to its revenue model. The company has implemented price increases for legacy subscribers since March 2023, impacting the majority of its Direct Business revenue. The Direct Business revenue for the nine months ended September 30, 2024, was $29.2 million, up 13% from $25.8 million in the previous year.
Cash Flow and Liquidity
As of September 30, 2024, CuriosityStream had cash and cash equivalents totaling $9.7 million, with an additional $30.1 million in investments that can be readily converted to cash. The company generated $5.1 million in net cash from operating activities during the nine months ended September 30, 2024.
Content Production and Amortization
Content amortization for the three months ended September 30, 2024, was $4.6 million, down from $5.4 million in 2023. For the nine months, it decreased to $14.5 million from $17.7 million, reflecting a reduction in new productions and content acquisitions.
| Cost of Revenues | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Change (%) |
|---|---|---|---|
| Content Amortization | $4,569 | $5,389 | -15% |
| Other Costs | $1,271 | $3,105 | -59% |
| Total Cost of Revenues | $5,840 | $8,494 | -31% |
Stockholder Equity
As of September 30, 2024, CuriosityStream had total stockholders' equity of $62.2 million, reflecting accumulated deficits primarily due to the consistent net losses since its inception.
Dividends
The company declared quarterly dividends of $0.025 per share in March, May, and August 2024, with aggregate amounts of $1.3 million, $1.3 million, and $1.4 million, respectively.
Warrant Liability
As of September 30, 2024, CuriosityStream had 3,054,203 publicly traded warrants outstanding, with an exercise price of $11.50 per share. The fair value of the warrant liability was recorded at $110,000.
How CuriosityStream Inc. (CURI) Makes Money
Revenue Streams
CuriosityStream generates revenue primarily through four main channels:
- Direct Business: Revenue from direct subscriptions.
- Content Licensing: Fees from licensing content to other media companies.
- Bundled Distribution: Fees from distribution partners.
- Other Revenue: Includes advertising and sponsorships.
Direct Business Revenue
The Direct Business segment has shown growth, particularly in subscription revenue. For the three months ended September 30, 2024, the Direct Business revenue was:
| Type | Q3 2024 (in $000s) | Q3 2023 (in $000s) | Change (%) |
|---|---|---|---|
| Direct-to-Consumer | 7,750 | 7,399 | 5% |
| Partner Direct | 1,983 | 1,177 | 68% |
| Enterprise | 52 | 86 | -34% |
| Total Direct Business | 9,785 | 8,662 | 13% |
For the nine months ended September 30, 2024, the Direct Business revenue totaled $29.2 million, compared to $25.8 million in 2023, marking a growth of 13%.
Content Licensing Revenue
Content Licensing revenue has decreased significantly due to several factors. For Q3 2024, the results were:
| Type | Q3 2024 (in $000s) | Q3 2023 (in $000s) | Change (%) |
|---|---|---|---|
| Library Sales | 1,657 | 5,082 | -67% |
| Presales | 0 | 0 | 0% |
| Total Content Licensing | 1,657 | 5,082 | -67% |
For the nine months ended September 30, 2024, Content Licensing totaled $4.1 million, a decrease from $10.7 million in the same period in 2023.
Bundled Distribution Revenue
For Q3 2024, Bundled Distribution revenue was:
| Period | Q3 2024 (in $000s) | Q3 2023 (in $000s) | Change (%) |
|---|---|---|---|
| Bundled Distribution | 973 | 1,452 | -33% |
For the nine months ended September 30, 2024, Bundled Distribution revenue was $3.2 million, down from $4.3 million in 2023.
Other Revenue
Other revenue, primarily from advertising and sponsorships, has also seen declines. For Q3 2024, Other revenue was:
| Period | Q3 2024 (in $000s) | Q3 2023 (in $000s) | Change (%) |
|---|---|---|---|
| Other | 189 | 434 | -56% |
For the nine months ended September 30, 2024, Other revenue totaled $0.4 million, down from $1.3 million in 2023.
Overall Revenue Performance
In total, CuriosityStream's revenue for the three months ended September 30, 2024, was $12.6 million, a decrease of 19% compared to $15.6 million in Q3 2023. For the nine months ended September 30, 2024, total revenue was $37.0 million, down from $42.1 million in 2023.
Operating Expenses
Operating expenses have decreased significantly. For the three months ended September 30, 2024, operating expenses were $15.9 million, down from $39.5 million in Q3 2023, reflecting a decrease of 60%. For the nine months ended September 30, 2024, operating expenses were $46.5 million, down from $81.8 million in 2023.
Net Loss
CuriosityStream reported a net loss of $3.1 million for Q3 2024, a significant improvement from a net loss of $26.6 million in the same quarter of 2023. For the nine months ended September 30, 2024, the net loss was $10.1 million, compared to $44.2 million in the previous year, indicating a reduction of 77%.
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Resources:
- CuriosityStream Inc. (CURI) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of CuriosityStream Inc. (CURI)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View CuriosityStream Inc. (CURI)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.