LOS ANGELES, February 14, 2022- Cinedigm Corp. (“Cinedigm” or “the Company”) (NASDAQ:CIDM),
a premier streaming technology and entertainment company super-serving enthusiast fan bases, today
announced its financial results for the three and nine-month periods ended December 31, 2021.
“We had our strongest results ever in streaming this quarter, registering triple-digit growth for the fourth quarter
in row,” said Chris McGurk, Chairman and CEO of Cinedigm. “We have a unique strategy and portfolio
business model in technology, content and streaming that provides multiple revenue streams to fuel this record
growth and separates us from others in the space. We also have a strong balance sheet with zero debt and are
profitable year-to-date. Clearly, we continue to fire on all cylinders.”
Erick Opeka, Chief Strategy Officer and President, Cinedigm Networks stated, “In the quarter, we delivered
more than 104% revenue growth in our streaming networks business, more than double the 50% annual growth
guidance we provided earlier in the fiscal year. Our relentless focus on providing customers the freedom to
stream their passions, no matter their device preference or budget, is truly paying off.” He continued, “Our
current content library of 35,000 streaming assets is one of the largest libraries in the world as compared to
other key streaming service providers like Amazon Prime, Netflix and Tubi.” (Data according to Ampere
Analytics, December 2021.)
Mr. McGurk continued, “Our recent augmented reality (AR) announcement with Nreal, our state-of-the-art
proprietary Matchpoint® streaming technology and the ramp up of our engineering team at Cinedigm India all
point toward Cinedigm’s continued leading position at the forefront of where media business innovation is
heading – be it the Metaverse, AR, NFTs, or streaming enhancements.”
Cinedigm’s film and television library grew to approximately 40,000 assets owned or under management at the
end of the quarter. Of that total, approximately 35,000, or 90%, of the titles are streaming assets. This
represents an increase of over 14,000 titles, or 69%, over the prior year quarter, and was driven by M&A
activity of substantial film, television and streaming channel catalogs, as well as ongoing content acquisitions,
and efforts to support the Company’s streaming and distribution businesses.
Key Third Quarter Financial Results (Quarter Ended December 31, 2021):
ï‚·Consolidated revenues were $14.1 million, up 42% over the prior year quarter and up 40% over
the prior sequential quarter, driven by organic user growth, increasing market demand for
Cinedigm’s extensive connected television ad inventory, and the launch of new streaming
channels;
ï‚·Cinedigm’s streaming revenue growth was also driven by continued expansion of distribution
from more than 19 new distribution points. Additionally, the Company continued to optimize it’s
advertising technology, which had a positive and material impact on render rate, fill rate, and
CPMs;
ï‚·Streaming channel revenues increased 104% over prior year quarter, setting a new Company
record;
ï‚·Ad-supported streaming channel revenues increased 100% over the prior year quarter;
ï‚·Subscription streaming channel revenues increased 109% over the prior year quarter;
ï‚·Adjusted EBITDA was $1.3 million in the current year quarter versus $0.9 million in the prior
year period, representing an increase of $0.4 million or 44%;
ï‚·Recorded a net loss of $0.5 million, or nil – $0.00 per share, an improvement of $9.2 million
versus a net loss of $9.7 million, or $(0.07) per share, in the prior year quarter.
Key First Nine Month Financial Results (Nine-Months Ended December 31, 2021):
ï‚·Consolidated revenues were $39.2 million, up 69% over the same period of the prior year, driven
by the launch of two new streaming channels, organic growth in existing channels, an expansion
of the Company’s distribution with new and existing Smart TV platforms and contracted Cinema
Equipment Sales;
ï‚·Streaming channel revenues increased 133% over the same period of the prior year;
ï‚·Ad-supported streaming channel revenues increased 171% over the same period of the prior
year;
ï‚·Subscription streaming channel revenues increased 90% over the same period of the prior year;
ï‚·Adjusted EBITDA was $7.5 million in the current year versus a negative $0.4 million in the prior
year period, representing an increase of $7.9 million;
ï‚·Generated net income of $4.3 million, or $0.03 per share, versus a net loss of $56.3 million, or
$(0.49) per share, in the same period of the prior year, representing an improvement of $60.6
million or $0.52 per share;
ï‚·Strong balance sheet with $20.2 million in cash and zero debt.
Key Business Highlights During Third Quarter Fiscal 2022 (Quarter ended December 31, 2021):
ï‚·Total streaming minutes in the quarter rose to 1.33 billion, up 47% from the prior year quarter;
ï‚·Cumulative minutes streamed in the first nine months of the year were 3.92 billion, up more than
112% over the 184 billion minutes streamed in the prior year first nine months;
ï‚·Total monthly ad-supported streaming channel viewers in the quarter were approximately 33
million, up 44%, versus 22.6 million in the prior year quarter;
ï‚·Total subscribers to the Company’s subscription video streaming services increased to
approximately 954,000, an increase of 466% from the prior year quarter.
We expanded our networks, deal pipeline and streaming acquisition roll-up activity:
ï‚·Added nineteen new distribution points for the streaming channel portfolio, including
distribution expansions on Comcast Xfinity, Dish Network’s SlingTV, ViacomCBS’s
PlutoTV, Amazon’s IMDBtv, Samsung and LG, among others.
ï‚·We continued to execute our accretive streaming and technology asset rollup strategy by
announcing after the quarter ended that we plan to acquire New-York based Digital Media
Rights (DMR), a New York-based streaming company with over 7,500 films and TV episodes,
10 streaming channels and a high volume of Anime and Asian titles, both very fast -growing
content categories;
ï‚·Following the close of the DMR transaction, which is subject to final diligence, our rollup
acquisition activity over the last 14 months will have resulted in the addition of 15 streaming
channels and more than 20,000 films/TV episodes to the Company’s asset portfolio;
ï‚·The DMR transaction is another prime example of how key players in the media and technology
space continue to be attracted by Cinedigm’s Matchpoint technology, distribution capabilities,
content and scale and seek to be part of the Company’s rapid and evolving growth narrative.
We launched several new technology initiatives:
ï‚·The Company launched two NFT initiatives, Fandor Selects and Bloody Disgusting Blood
Packs as a means to assess this new emerging technology and business opportunity;
ï‚·After the quarter closed, the Company announced a deal with Nreal, manufacturer of the
recently released Nreal Light AR glasses. As part of the North American launch, Nreal
included the CONtv, Real Madrid and Bloody Disgusting FAST channels as well as the
CONtv content library on a video-on-demand basis providing the Company early access to a key
platform in the pending Metaverse.
We further positioned the Company for long range technology leadership:
ï‚·We announced the launch of Matchpoint Debut®, a new automated service that gives
filmmakers, distributors and content owners the ability to use our industry-leading digital
distribution platform, Matchpoint to self-distribute their content globally;
ï‚·We expanded the Engineering and R&D resources within our Cinedigm India subsidiary to
focus on emerging technologies such as NFTs, the Metaverse, Artificial Intelligence and
Machine Learning-based applications;
ï‚·We continued development of Cinedigm’s next-generation Matchpoint Blueprint® v2.0, which
will be used to power the Company’s umbrella app and portfolio of cross-platform Channel
applications.
We further enhanced our management team:
ï‚·We announced the appointment of Raffi Bagdasarian as Vice President of Product Development.
Bagdasarian previously served as Vice President of Global Product & Operations for the Digital
Networks Group at Sony Pictures Television, as well as previous roles at OUYA (acquired by
Razer, Inc.), Wonder (acquired by Atari, Inc.), Universal Music Group, and The Walt
Disney Internet Group.
Our acquisition efforts during the quarter to build our library of premium content and drive our
streaming business included these highlights:
ï‚·The Company’s feature film assets in the library grew by 6,077 assets to 10,729, up 131% over
the prior year quarter;
ï‚·Episodic television assets in the library grew by more than 8,269 assets to 24,314 total episodes,
up 52% over the prior year quarter;
ï‚·Acquired exclusive rights to two action thrillers directed by Derek Presley and starring Neal
McDonough (YELLOWSTONE, RESIDENT EVIL, CAPTAIN AMERICA) Redstone
(December 3, 2021) and Boon (April 1, 2022) in theaters and in home;
ï‚·Acquired exclusive North American rights to 7 Days, a romantic comedy starring Karan Soni
(DEAD POOL), Geraldine Viswanathan (BLOCKERS) and executive produced by Mark
Duplass. Film is an Independent Spirit Award nominee and will be released in the Spring;
ï‚·Acquired Boston George, a docuseries on George Jung, one of the most notorious cocaine
traffickers and the inspiration for the film Blow, to be released as a Fandor Exclusive in the
Spring;
ï‚·Entered a license agreement with Warner Brothers for 2 seasons of Freddy’s Nightmares to
debut on Screambox on February 15, 2022;
ï‚·Extended our long-term relationship with the NFL and will release Super Bowl LVI
Championship program to a broader audience theatrically, digitally and in physical format.
Corporate Updates:
ï‚·On October 12, 2021, the Company entered into a Common Stock Purchase Agreement and a
Registration Rights Agreement with B. Riley Principal Capital, LLC relating to an equity line
offering.
Conference Call
Cinedigm will host a conference call and webcast to discuss these results on Tuesday, February 15 at 12:00pm
ET / 9:00am PT.
Investors may access a live webcast of the call on the Company’s website at
https://investor.cinedigm.com/events-and-presentations or by dialing 1-844-200-6205 within North America or
+1-929-526-1599 from international locations using access code 814905 to be connected to the call. Participants
should dial in at least 10 minutes prior to the start of the call.
A replay of the webcast will be available by accessing the Company’s website at
https://investor.cinedigm.com/events-and-presentations .
About Cinedigm
For more than 20 years, Cinedigm (NASDAQ:CIDM) has led the digital transformation of the entertainment
industry. Today, Cinedigm entertains consumers around the globe by providing premium feature film and
television series, enthusiast streaming channels and technology services to the world’s largest media, retail and
technology companies. As a leader in the rapidly evolving streaming ecosystem, Cinedigm continues its legacy
as an innovator through its adoption of next-generation technologies, such as artificial intelligence and machine
learning, through its proprietary, highly scalable Matchpoint® technology platform. For more information, visit
www.cinedigm.com.
Safe Harbor Statement
Investors and readers are cautioned that certain statements contained in this document, as well as some
statements in periodic press releases and some oral statements of Cinedigm officials during presentations about
Cinedigm, along with Cinedigm’s filings with the Securities and Exchange Commission, including Cinedigm’s
registration statements, quarterly reports on Form 10-Q and annual report on Form 10-K, are “forward-looking”
statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the “Act”). Forward-
looking statements include statements that are predictive in nature, which depend upon or refer to future events
or conditions, which include words such as “expects,” “anticipates,” “intends,” “plans,” “could,” “might,”
“believes,” “seeks,” “estimates” or similar expressions. In addition, any statements concerning future financial
performance (including future revenues, earnings or growth rates), ongoing business strategies or prospects, and
possible future actions, which may be provided by Cinedigm’s management, are also forward-looking
statements as defined by the Act. Forward-looking statements are based on current expectations and projections
about future events and are subject to various risks, uncertainties and assumptions about Cinedigm, its
technology, economic and market factors and the industries in which Cinedigm does business, among other
things. These statements are not guarantees of future performance and Cinedigm undertakes no specific
obligation or intention to update these statements after the date of this release.
