CuriosityStream Inc. (NASDAQ: CURI) stock soared over 65% on Thursday after the company reported fourth-quarter earnings above expectations but missed revenue estimates.
CuriosityStream (CURI) posted revenue of $14.8 million for the fourth quarter, slightly lower than the consensus estimates of $15.8 million. However, the gross profit rose to $6.7 million from $1.4 million recorded last year.
The company reported a noteworthy reduction in total advertising, marketing, general, and administrative expenses, which dropped by 32% year-over-year to $11.4 million.
The adjusted EBITDA loss narrowed significantly to $(3.4) million from $(13.6) million in the past year quarter. The reported EPS loss of $(0.09) beat the consensus estimate of $(0.15).
As of December 31, 2023, CuriosityStream boasted a strong balance sheet with cash and restricted cash totaling $38.2 million and no debt.
Dividend Program
The company has also initiated a cash dividend program. The Board of Directors declared a quarterly cash dividend of $0.025 per share, with the first dividend scheduled for payment on April 30, 2024, to stockholders of record as of April 12, 2024.
CuriosityStream Q1 Outlook
CuriosityStream foresees first-quarter revenue ranging from $11.5 million to $12.5 million, falling short of the consensus estimate of $15.8 million. In addition, the company expects adjusted free cash flow to range between $0.25 million and $1.00 million.
Clint Stinchcomb, President & CEO, said,
“Our fourth-quarter revenue results met our guidance range while adjusted free cash flow exceeded our guidance range, and we delivered sequential revenue growth in our Direct Business. We continued to decrease our cost base, as we achieved our fifth straight quarter of sequential adjusted free cash flow improvement.”
He added,
“Looking forward, we will be guiding to positive adjusted free cash flow for the first quarter of 2024, and we believe the initiation of the dividend program, which will be paid from excess cash, underscores our positive outlook for cash flow in 2024.”
CuriosityStream (NASDAQ: CURI) Stock Movement
CURI stock surged 65.09% to close at $0.96 on Thursday. The traders had exchanged hands with 33,509,710 (33.50 million) shares compared to the average daily trading volume of 142.80K.
Edward Cooke is a financial analyst, freelance writer, and editor. He has six years of experience in financial journalism. He has an in-depth understanding of equities markets, tracking major indices and providing real-time analysis on stock price movements, corporate earnings, and market sentiment.
