Cineverse Corp (CNVS) 2024 Q3 法說會逐字稿

Good day, everyone, and welcome to Cineverse's third quarter of fiscal 2024 financial results conference call.

大家好，歡迎參加 Cineverse 2024 財年第三季財務業績電話會議。

My name is [Elliott] I'll be your operator today. Currently, all participants are in listen-only mode. We will have a question and answer session following management's prepared remarks at which time participants can press star followed by the number one to ask a question. If anyone needs operator help, please press star then zero. Please note this call is also being recorded. And I'd like to turn the call over to our host, Gary Loffredo, Chief Legal Officer and Secretary and Senior Advisor of Cineverse. Please go ahead.

我的名字是 [Elliott] 今天我將擔任您的接線生。目前，所有參與者均處於僅監聽模式。在管理階層準備好的發言之後，我們將舉行問答環節，此時參與者可以按星號，然後按數字 1 來提問。如果有人需要操作員幫助，請按星號，然後按零。請注意，此通話也會被錄音。我想將電話轉給我們的主持人、Cineverse 首席法務官兼秘書兼高級顧問加里·洛弗雷多 (Gary Loffredo)。請繼續。

Good afternoon, everyone. Thank you for joining us for the Cineverse fiscal 2024 third quarter financial results conference call press release announcing Cineverse 's results for the fiscal third quarter ended December 31, 2023. It's available at the Investors section of the Company's website at www.cineverse.com. A replay of this broadcast will also be made available at Cineverse's website after the conclusion of this call.

大家下午好。感謝您參加 Cineverse 2024 財年第三季財務業績電話會議新聞稿，宣布 Cineverse 截至 2023 年 12 月 31 日的第三財季業績。您可以在公司網站 www.cineverse.com 的投資者部分取得該資訊。本次電話會議結束後，Cineverse 網站也將提供該廣播的重播。

Before we begin, I would like to point out that certain statements made today on today's call contain forward-looking state. These statements are based on management's current expectations and are subject to risks, uncertainties and assumptions. The company's periodic reports that are filed with the SEC described potential risks and uncertainties that could cause the Company's business and financial results to differ materially from these forward-looking state. All the information discussed on this call is as of today, February 14, 2024, and Cineverse does not assume any obligation to update any of these forward-looking statements except as required by law.

在開始之前，我想指出，今天在電話會議上所做的某些陳述包含前瞻性陳述。這些陳述是基於管理層目前的預期，並受到風險、不確定性和假設的影響。該公司向美國證券交易委員會提交的定期報告描述了潛在的風險和不確定性，這些風險和不確定性可能導致該公司的業務和財務表現與這些前瞻性狀態有重大差異。本次電話會議中討論的所有資訊均截至今天（2024 年 2 月 14 日），除非法律要求，否則 Cineverse 不承擔更新任何這些前瞻性聲明的義務。

In addition, certain financial information presented in this call represents non-GAAP financial measures, and we encourage you to read our disclosures and the reconciliation tables are applicable to GAAP measures in our earnings release carefully. As you consider these metrics, I'm Gary Loffredo, Chief Legal Officer, Secretary and Senior Adviser at Cineverse. With me today are Chris McGurk, Chairman and CEO. Erick Opeka, President and Chief Strategy Officer. Tony Huidor, Chief Operating Officer and Chief Technology Officer, Mark Lindsey, Chief Financial Officer, Yolanda Macias, Chief Content Officer, all of whom will be available for questions following the prepared remarks on today's call, Chris will discuss our third quarter fiscal year 2024 highlights latest operational developments, outlook and long-term strategy. Mark will follow with a review of our results for the fiscal third quarter ended December 31, 2023, and Eric will provide some detail on our streaming business results and operating initiatives before we open the floor for questions.

此外，本次電話會議中提供的某些財務信息代表非 GAAP 財務指標，我們鼓勵您仔細閱讀我們的披露信息，並且調節表適用於我們收益發布中的 GAAP 指標。當您考慮這些指標時，我是 Cineverse 首席法務官、秘書兼高級顧問 Gary Loffredo。今天與我在一起的有董事長兼執行長克里斯‧麥格克 (Chris McGurk)。艾瑞克‧歐佩卡 (Erick Opeka)，總裁兼首席策略長。營運長兼技術長托尼‧惠多爾(Tony Huidor)、財務長馬克‧林賽(Mark Lindsey)、首席內容長約蘭達‧馬西亞斯(Yolanda Macias)，在今天的電話會議上準備好發言後，所有這些人都將可以回答問題，克里斯將討論我們的2024 財年第三季重點介紹最新的營運發展、前景和長期策略。隨後，馬克將回顧我們截至 2023 年 12 月 31 日的第三財季業績，埃里克將在我們開始提問之前提供有關我們的串流業務業績和營運計劃的一些詳細資訊。

I will now turn the call over to Chris McGurk to begin.

現在我將把電話轉給克里斯麥格克開始。

Thanks, Gary, and thanks, everyone, for joining us today. This morning, we announced the partnership with global technology and search giant Google with whom we developed and will soon launch a groundbreaking new AI based unified streaming search technology called sinister. Both Eric and I will speak more about this later in our remarks. However, I want to emphasize that we believe this AI technology partnership with Google and the launch of Synos search is an important milestone for the company that not only further validates our industry leading proprietary technology but should also provide an important new revenue stream for Cineverse because it directly help solve the biggest consumer issue with streaming search and discovery today, the current time consuming ArcaEx search technology that provides limited and unfiltered content choices for viewers with China search and our chat bot video guide. Eva will soon help solve that important issue for consumers.

謝謝加里，謝謝大家今天加入我們。今天早上，我們宣布與全球技術和搜尋巨頭谷歌合作，我們與谷歌共同開發並將很快推出一項名為「sinister」的突破性的基於人工智慧的統一串流搜尋技術。埃里克和我將在稍後的演講中詳細討論這一點。不過，我想強調的是，我們相信與Google 的人工智慧技術合作以及Synos​​ 搜尋的推出對於公司來說是一個重要的里程碑，它不僅進一步驗證了我們行業領先的專有技術，而且還應該為Cineverse 提供重要的新收入來源，因為它直接幫助解決當今串流搜尋和發現方面最大的消費者問題，當前耗時的ArcaEx 搜尋技術透過中國搜尋和我們的聊天機器人視訊指南為觀眾提供有限且未經過濾的內容選擇。伊娃很快就會幫助消費者解決這個重要問題。

Now let me speak to this quarter's results. Just as we reported last quarter, we again made strong progress this quarter toward our goal of dramatically reducing costs, improving margins and achieving sustained profitability. We did this by continuing to aggressively cut costs as we finalized the consolidation of the eight key streaming content and technology acquisitions we made over the past three years. While we also continue to offshore a significant number of domestic employment positions to our Cineverse services, India operation for unique competitive cost and work efficiency advantage that Cineverse enjoys versus everyone else in our space. We also continued to further optimize our streaming channel portfolio, sacrificing some revenues for improved margins and profitability by culling lower margin channels, while focusing our resources on higher margin and higher return performance, driven by these initiatives to dramatically cut costs offshore domestic positions to our Indian operation and further optimize our channel portfolio. I believe our results this quarter again demonstrate that we are well on our way towards sustained profitability. We increased our direct operating margin to 59% from 48%. And continuing last quarter's trend, we decreased our SG&A cost by $2.7 million or 30%. That's down another $0.5 million from our last reported quarter and down $7.9 million or 27% versus last year on a fiscal year to date basis. And we expect to achieve even greater savings going forward as we offshore more domestic positions and yet can see the full impact of the series and headcount cuts that we have made totaling 34 positions so far. So we remain very confident we will achieve our stated goal of $8 million in annual cost savings.

現在讓我談談本季的業績。正如我們上季度報告的那樣，本季度我們在大幅降低成本、提高利潤率和實現持續盈利的目標方面再次取得了強勁進展。我們透過繼續積極削減成本來做到這一點，因為我們完成了過去三年來進行的八項關鍵串流媒體內容和技術收購的整合。雖然我們也持續將大量國內就業機會轉移到我們的 Cineverse 服務中，但印度業務具有獨特的競爭成本和工作效率優勢，Cineverse 相對於我們領域的其他公司享有獨特的競爭優勢。我們也繼續進一步優化我們的串流媒體管道組合，透過剔除利潤率較低的管道，犧牲一些收入來提高利潤率和盈利能力，同時將我們的資源集中在更高的利潤率和更高的回報業績上，在這些舉措的推動下，大幅削減我們的離岸國內頭寸成本。印度運營，進一步優化我們的渠道組合。我相信我們本季的業績再次表明我們正在穩步實現持續盈利。我們將直接營業利潤率從 48% 提高到 59%。延續上季的趨勢，我們的 SG&A 成本減少了 270 萬美元，即 30%。與我們上一季報告相比，這一數字又減少了 50 萬美元，與去年同期相比，截至目前的財年減少了 790 萬美元，即 27%。隨著我們將更多的國內職位轉移到海外，我們預計未來將實現更大的節省，並且可以看到迄今為止我們總共削減了 34 個職位的系列和裁員的全面影響。因此，我們仍然非常有信心實現每年節省 800 萬美元成本的既定目標。

And let me reiterate what I said on our last call. Cineverse services. India is a significant competitive advantage for us, providing huge cost savings and workflow upside within a trusted battle-tested operating division of our company. Not only do we intend to leverage that advantage to the fullest extent possible, but we are also considering initiatives to turn it into a profit center by offering our back office services in India to other domestic companies. Although the adjustment for the recognition of the non-cash loss on our investment in a metaverse company certainly had a big negative impact on our bottom line this quarter. We are nonetheless very pleased with our results. Excluding that impact, excluding the metaverse adjustment, net income was positive at $200,000. Clearly, we continue to be on a path to our target of sustained profitability.

讓我重申上次通話中所說的話。電影宇宙服務。印度對我們來說是一個顯著的競爭優勢，在我們公司經過考驗的值得信賴的營運部門內提供了巨大的成本節約和工作流程優勢。我們不僅打算最大限度地利用這一優勢，而且還在考慮透過向其他國內公司提供我們在印度的後台服務來將其轉變為利潤中心。儘管我們對元界公司投資的非現金損失確認的調整肯定對我們本季的利潤產生了很大的負面影響。儘管如此，我們對我們的結果感到非常滿意。排除此影響，排除元宇宙調整，淨利潤為正，為 20 萬美元。顯然，我們持續致力於實現持續獲利的目標。

Before I end my remarks, let me quickly speak to three very important developments for the Company. First, we expanded our line of credit with East West Bank from $5 million to $7.5 million, giving us more flexibility and firepower on our balance sheet, particularly since we are not laden with the tens of millions of dollars of debt than most of our competitors are doing on second, tariff I or three just started filming and is scheduled for release in the fall of this year. This is equal to last year's film phenomenon. Terrifying to was just named as one of the 10 most highly anticipated horror films of 2004 by USA Today and should continue to be a huge catalyst for our core business. All of our blending discussing enterprises in our screen box or channel.

在結束發言之前，讓我快速談談公司的三個非常重要的發展。首先，我們將華美銀行的信貸額度從500 萬美元擴大到750 萬美元，這為我們的資產負債表提供了更大的靈活性和火力，特別是因為我們不像大多數競爭對手那樣背負著數千萬美元的債務正在做第二部，《關稅一》或《關稅三》剛開始拍攝，預計今年秋季上映。這與去年的電影現象相當。《恐怖》剛被《今日美國》評為 2004 年 10 部最受期待的恐怖電影之一，並且應該會繼續成為我們核心業務的巨大催化劑。我們所有的混合討論企業都在我們的螢幕框或頻道中。

And third, as I mentioned at the outset of my remarks today, we announced an exciting new partnership with global search and technology leader, Google, with whom we will soon unveil an innovative AI based search platform that we're calling center search. As part of this new service. Cineverse is introducing a new AI based video adviser that will be known simply as anyone. This is groundbreaking technology that directly addresses the number one issue with streaming, the limitation of current methods of search and discovery where users are forced to seek films using archaic discovery technology and limited to only a subset of film choices spreader cost specific platforms. We believe this generative AI search technology partnership with Google not only further validates the industry-leading nature of our proprietary technology, which puts us years ahead of our competitors, but also will be a significant new revenue opportunity for the Company. Eric will speak much more in a minute about Cineverse and our partnership with Google as well as the other key initiatives and partnerships in our channel and technology businesses, we believe will have a significant positive impact on our top line revenue growth and margins. But first, Mark will add more color to our financial results and other financial matters. Mark?

第三，正如我在今天發言一開始提到的，我們宣布與全球搜尋和技術領導者谷歌建立令人興奮的新合作夥伴關係，我們很快就會與Google一起推出一個基於人工智慧的創新搜尋平台，我們稱之為中心搜索。作為這項新服務的一部分。Cineverse 正在推出一款新的基於人工智慧的視訊顧問，任何人都可以簡單地了解它。這是一項突破性的技術，直接解決了串流媒體的首要問題，即當前搜尋和發現方法的局限性，即用戶被迫使用陳舊的發現技術來尋找電影，並且僅限於電影選擇傳播者成本特定平台的子集。我們相信，與Google的生成式人工智慧搜尋技術合作夥伴關係不僅進一步驗證了我們專有技術的行業領先性，使我們領先於競爭對手數年，而且也將為公司帶來一個重要的新收入機會。Eric 將在一分鐘內詳細介紹Cineverse 以及我們與Google 的合作夥伴關係，以及我們在通路和技術業務方面的其他關鍵舉措和合作夥伴關係，我們相信這將對我們的營收成長和利潤率產生重大的正面影響。但首先，馬克將為我們的財務表現和其他財務事項增添更多色彩。標記？

Yes, thank you, Chris. For the fiscal third quarter ended December 31, 2023, Cineverse reported total revenues of $13.3 million, which compares to $13.0 million last quarter and $27.9 million in the prior year period. As a reminder, the prior year quarter included material nonrecurring revenue of approximately $4 million for care fire to theatrical revenue and $7 million of revenue related to our legacy Digital Cinema business when excluding the impact of tariff R2 and digital cinema, the decrease in revenue was primarily due to the impact on our advertising revenue from the intentional elimination of certain lower margin channels via portfolio optimization and reallocating those resources to higher performing and higher margin streaming properties, which is important to our goal of achieving sustainable profitability in the near term, we are cautiously optimistic for double digit revenue growth in fiscal year 2025 as the economy improves, interest rates decline and the expected improvement in the advertising market in a political year, subscription based revenues increased 13% to $3.4 million, driven by the continued success of our enthusiast streaming services advertising base revenues declined 31% to $4.1 million, primarily due to our channel optimization efforts and the continued impact of the current economic environment on advertising spend. Eric will provide some additional details on the operational drivers behind our financial results. As Chris mentioned, our direct operating margin for the period was 59%, an increase from 48% in the prior year quarter, which is in excess of our previously provided guidance of 45% to 50% for the full fiscal year 2024. Our improved direct operating margin is a direct result of our cost optimization initiatives referred to earlier. Sg&a expenses decreased $2.7 million or 30% from the prior year quarter and $500,000 from last quarter. Again, this improvement is a direct result of the cost optimization initiatives discussed previously. We expect to gain even greater efficiencies as our offshoring efforts to Cineverse services. Indeed, gained momentum in the remainder of fiscal year 2024 and into fiscal year 2025. Adjusted EBITDA for the quarter was $1.8 million compared to $5 million last year with the decrease being driven by the impact from tariff prior to our legacy Digital Cinema business. In the prior year quarter, we had $5.5 million in cash and cash equivalents on our balance sheet as of December 31, 2023, and $5 million outstanding on our working capital facility.

是的，謝謝你，克里斯。截至 2023 年 12 月 31 日的第三財季，Cineverse 報告總收入為 1,330 萬美元，而上一季為 1,300 萬美元，去年同期為 2,790 萬美元。提醒一下，上一年季度包括約400 萬美元的重大非經常性收入（用於戲劇收入的護理支出）和700 萬美元與我們的傳統數位電影業務相關的收入（在排除關稅R2 和數位電影的影響時），收入減少額為主要是由於透過投資組合優化有意消除某些利潤率較低的管道，並將這些資源重新分配到表現更高、利潤率更高的串流資產，這對我們的廣告收入產生了影響，這對於我們在短期內實現可持續盈利的目標非常重要，我們隨著經濟改善、利率下降以及政治年廣告市場的預期改善，我們對2025 財年的兩位數收入增長持謹慎樂觀態度，基於訂閱的收入增長了13%，達到340 萬美元，這得益於我們的持續成功愛好者串流媒體服務廣告基礎收入下降31% 至410 萬美元，這主要是由於我們的渠道優化工作以及當前經濟環境對廣告支出的持續影響。埃里克將提供有關我們財務業績背後的營運驅動因素的一些其他詳細資訊。正如 Chris 所提到的，我們本季的直接營業利潤率為 59%，較去年同期的 48% 有所增長，超過了我們之前為 2024 年整個財年提供的 45% 至 50% 的指導。我們提高的直接營業利潤是我們前面提到的成本優化措施的直接結果。SG&A 費用較去年同期減少 270 萬美元，或 30%，較上季減少 50 萬美元。同樣，這種改進是前面討論的成本優化舉措的直接結果。我們期望透過 Cineverse 服務的離岸外包來獲得更高的效率。事實上，這一勢頭在 2024 財年剩餘時間和 2025 財年獲得了成長。本季調整後 EBITDA 為 180 萬美元，而去年為 500 萬美元，下降的原因是我們傳統數位影院業務之前的關稅影響。截至 2023 年 12 月 31 日，我們的資產負債表上有 550 萬美元的現金和現金等價物，還有 500 萬美元的營運資本貸款。

As Chris mentioned, we recently announced an increase in our working capital facility with East West Bank from $5.0 million to $7.5 million. We appreciate our relationship with East West Bank and the confidence they're showing by expanding the size of the credit facility, which increases our financial flexibility and liquidity. And as a testament to our improving financial position and credit worthiness, this capacity increase will be used primarily to fund ongoing investments in our content portfolio.

正如克里斯所提到的，我們最近宣布將華美銀行的營運資金額度從 500 萬美元增加到 750 萬美元。我們讚賞我們與華美銀行的關係，以及他們透過擴大信貸額度所展現的信心，這增加了我們的財務靈活性和流動性。作為我們不斷改善的財務狀況和信用價值的證明，此容量的增加將主要用於為我們內容組合的持續投資提供資金。

During the quarter, our cash flow used in operations was negative $3.1 million, of which $1.9 million was related to investments in our content portfolio via advance and-or minimum guarantee payments, the largest need for tariff higher three for the last six months, our cash flow used in operations was negative $105,000 when excluding our content portfolio spend showing just how close we are to be sustainably cash flow positive. We expect this positive trend to continue for the fourth quarter and into fiscal year 2025. I also want to point out that we have a stock repurchase program in place through the end of this month. But you know, we have not utilized the stock repurchase program to date due to cash flow constraints. As such, we are working with our Board to extend the program, which we expect to be able to utilize once we have turned the corner on sustained profitability, we are keeping all of our options open with regard what we believe is a significantly undervalued stock price where we are trading substantially below book value. In addition, as good governance requires, we will be refreshing our ATM facility shortly though we don't have any current plans or needs to raise equity at this time?

本季度，我們營運中使用的現金流為負310 萬美元，其中190 萬美元與透過預付款和/或最低擔保付款對我們的內容組合進行投資有關，這是過去六個月中關稅較高三項的最大需求，我們的如果不包​​括我們的內容投資組合支出，營運中使用的現金流為負 105,000 美元，這表明我們距離可持續正現金流有多近。我們預計這種積極趨勢將持續到第四季和 2025 財年。我還想指出，我們有一個股票回購計劃，一直持續到本月底。但你知道，由於現金流限制，我們迄今尚未利用股票回購計畫。因此，我們正在與董事會合作擴展該計劃，我們預計一旦我們扭轉了持續盈利的局面，就能夠利用該計劃，對於我們認為被嚴重低估的股票，我們將保留所有選擇權我們的交易價格遠低於帳面價值。此外，根據良好治理的要求，我們將很快更新我們的 ATM 設施，儘管我們目前沒有任何計劃或需要籌集股本？

We believe the increase in our working capital facility, along with the significant progress that we've made in our cost savings initiatives have the company well positioned financially.

我們相信，營運資金的增加以及我們在成本節約計劃方面取得的重大進展使公司在財務上處於有利地位。

With that, I'll turn the floor over to Eric to discuss the market environment and our growth initiatives.

接下來，我將請艾瑞克（Eric）討論市場環境和我們的成長計畫。

Good afternoon, everyone, and thanks for joining us today.

大家下午好，感謝您今天加入我們。

So considering our announcement today, I'd like to start off discussing the market opportunity for our technology platform Match Point, and I will review our financial operational performance and future outlook, as you've heard and seen from our announcements and materials, we've also been rapidly focused on scaling our Matchpoint technology and services business. We believe this is the most important part of our growth strategy for numerous reasons. First, the entertainment landscape is rapidly evolving into a universe of scale bundled subscriptions, a wide array of enthusiast services, plus thousands of FAST channels and large-scale ad-supported platforms down in every major hardware manufacturer. It's a great opportunity for content owners as there is a landscape with tens of thousands of buyers globally, all of them requiring large volumes of content license from the tens of thousands of media companies around the globe today, there's no unified platform that allows companies to deliver all of these to all these partners automatically and at scale. At the same time, we're hearing from the buyers, the platforms themselves, the content owners, hardware manufacturers, but they simply don't have the infrastructure and ability to manage these massive content needs. For example, the major fast platforms have been heavily focused on scaling a VoD and bundle channel solutions for this year, but they lack the infrastructure to compete with Amazon, Apple and Google. Some are trying to build these solutions internally and are struggling on the content side. Like many of the studios they drove huge comes it's a cap sums of cash on delivery problem, outsourcing it to legacy companies. We continue doing it manually and very extensively and small to mid-sized companies are simply not equipped to keep up with the cost. In addition, all of these companies are struggling to measure the revenue performance results of these efforts so they can better improve their efforts. We believe Matchpoint is a solution to both sides of the equation for both content owners and platforms. Our vision to make Matchpoint become a media cloud, enabling both the content and platform side to manage and process their content for both today's and tomorrow's business needs. Our next gen product suite will enable the processing and management of professional-grade content at scale as simple as if they were ordering for Amazon at 100% accuracy. Beyond that, our data tools will allow them to measure the performance of all of their content so they can make better business decisions and easily integrate into their financial accounting and like the AWS storefront for the Google Cloud. So customers will have access to dozens of best-in-breed applications to further extend their capabilities we today already offering 14 for applications, including several in-house developed AI tools. So Matchpoint is really the only cloud-based media solution to do all of this, and it truly is an end to end platform. And the platform will grow with partners diseases long term, if they want to build apps in the launch FAST channels or even build their own version of 2B or Pluto. We have turnkey solutions and technology that's perfectly and seamlessly integrated into the platform and their workflows. Most importantly, we can do all of that, but a fraction of what it costs to build internally or use third party ad hoc solutions as they tried to stitch it together. All in all, we truly believe masks point can become for professional video with AWS' to the web and app economy. During the quarter, we announced our partnership with the Navy. And after quarter end, we launched our new product lightning fast at much fanfare at CES show in Las Vegas. We have a robust pipeline now ranging from small, medium-sized businesses up to studios, interested in various elements of Match Point on some major new scale opportunities to launch new platforms we expect to close in the coming weeks and months. As I noted, there are many, many companies in need of our solutions and expect to move quickly in the new year to take advantage of this burgeoning opportunity. We plan to continue building out the team and plan on expanding our sales force rather rapidly over the next several quarters to take advantage of this.

因此，考慮到我們今天的公告，我想先討論我們的技術平台Match Point 的市場機會，我將回顧我們的財務營運績效和未來前景，正如您從我們的公告和資料中聽到和看到的那樣，我們也迅速專注於擴展我們的 Matchpoint 技術和服務業務。基於多種原因，我們相信這是我們成長策略中最重要的部分。首先，娛樂領域正在迅速演變成一個大規模的捆綁訂閱、廣泛的愛好者服務以及每個主要硬體製造商中數千個 FAST 頻道和大型廣告支援平台的領域。對於內容所有者來說，這是一個絕佳的機會，因為全球有數以萬計的買家，他們都需要來自全球數以萬計的媒體公司的大量內容許可，但沒有統一的平台允許公司自動且大規模地將所有這些交付給所有這些合作夥伴。同時，我們聽到了買家、平臺本身、內容所有者、硬體製造商的聲音，但他們根本不具備管理這些海量內容需求的基礎設施和能力。例如，今年主要的快速平台一直專注於擴展 VoD 和捆綁通路解決方案，但它們缺乏與亞馬遜、蘋果和谷歌競爭的基礎設施。有些人試圖在內部建立這些解決方案，但在內容方面卻舉步維艱。像許多他們推動巨大的工作室一樣，這是一個貨到付款的上限問題，將其外包給傳統公司。我們繼續以手動方式進行，並且非常廣泛，中小型公司根本沒有能力跟上成本。此外，所有這些公司都在努力衡量這些努力的收入績效結果，以便更好地改善他們的努力。我們相信 Matchpoint 是內容所有者和平台雙方的解決方案。我們的願景是使 Matchpoint 成為媒體雲，使內容和平台方能夠管理和處理其內容，以滿足當今和未來的業務需求。我們的下一代產品套件將能夠大規模處理和管理專業級內容，就像他們以 100% 準確率向亞馬遜訂購一樣簡單。除此之外，我們的數據工具將使他們能夠衡量所有內容的效能，以便他們能夠做出更好的業務決策，並輕鬆整合到他們的財務會計中，就像 Google Cloud 的 AWS 店面一樣。因此，客戶將能夠訪問數十個同類最佳應用程序，以進一步擴展他們的功能，我們今天已經提供了 14 個應用程序，包括幾個內部開發的人工智慧工具。因此，Matchpoint 確實是唯一能夠完成所有這些的基於雲端的媒體解決方案，而且它確實是一個端到端平台。如果合作夥伴想要在啟動 FAST 頻道中建立應用程序，甚至建立自己的 2B 或 Pluto 版本，那麼該平台將隨著合作夥伴的疾病而長期發展。我們擁有交鑰匙解決方案和技術，可以完美、無縫地整合到平台及其工作流程中。最重要的是，我們可以做到所有這些，但只是內部建造或使用第三方臨時解決方案（因為他們試圖將其縫合在一起）的成本的一小部分。總而言之，我們堅信，借助 AWS，網路和應用程式經濟可以成為專業影片的遮罩點。在本季度，我們宣布了與海軍的合作夥伴關係。季度末後，我們在拉斯維加斯 CES 展會上大張旗鼓地快速推出了新產品。我們現在擁有強大的管道，從中小型企業到工作室，對《賽點》的各種元素感興趣，在一些重大的新規模機會上推出我們預計將在未來幾周和幾個月內關閉的新平台。正如我所指出的，有很多很多公司需要我們的解決方案，並希望在新的一年迅速採取行動，以利用這一新興機會。我們計劃繼續建立團隊，並計劃在接下來的幾個季度內迅速擴大我們的銷售隊伍，以利用這一點。

Now let's discuss a topic that Chris touched on earlier and has really become the center of attention within the media space at tremendous rates by big tech companies to compete with the early success of OpenEye. And along with that, there are many discussions on whether a will have a positive or negative impact on the entertainment business. But our vision great eye is twofold. First, we're going to enable our customers to utilize it to become far more efficient, which should help companies increase revenue and reduce operating costs. I will also provide our customers the ability to take advantage of major media company needs for LM data. And we believe our systems kind of all companies to mine their libraries at scale to do so.

現在讓我們討論 Chris 之前提到的一個主題，該主題已經成為大型科技公司在媒體領域的焦點，以與 OpenEye 的早期成功競爭。同時，關於遺囑對娛樂業是否有正面或負面影響也有很多討論。但我們的視力大眼睛是雙重的。首先，我們將使我們的客戶能夠利用它來提高效率，這將有助於公司增加收入並降低營運成本。我還將讓我們的客戶能夠利用主要媒體公司對 LM 數據的需求。我們相信我們的系統可以幫助所有公司大規模挖掘他們的圖書館來做到這一點。

And finally, we see tremendous value in leveraging AI for addressing the biggest shortcomings in the video streaming industry, unified search and discovery as you may have read, we announced the forthcoming launch of our next-gen video search and recommendation service called finish search as Advanced Tech revolutionized search over two decades ago. We believe that A. offers tremendous potential to help improve the quality of video search and enhanced recommendations with the services you use and love in ways that current search engines are capable of and who better to partner with the world leaders of search in Google with Google, we've developed an advanced and enhanced search engine that leverages extensive rich data from dozens of sources, including leading metadata providers as well as by extracting enhanced information through computer vision that analyzes every frame of your shelf. We want to go far beyond searching for things by the limited all way and by title actor director Synopsis at the end of the day, cinema and great TV is about invoking moods and will support that by allowing users to find content through much more subjective search dimensions such as setting the scene, mood tone intensity and much, much more distinct capabilities will be incredibly valuable to enable highly relevant advertising.

最後，我們看到利用人工智慧解決視訊串流行業最大缺點的巨大價值，統一搜尋和發現，正如您可能已經讀到的，我們宣布即將推出下一代視訊搜尋和推薦服務，稱為完成搜尋二十多年前，先進技術徹底改變了搜尋。我們相信，A. 提供了巨大的潛力，可以幫助提高視頻搜尋的質量，並透過您使用和喜愛的服務以當前搜尋引擎能夠提供的方式增強推薦，誰能更好地與Google 中的世界搜尋領導者合作，我們開發了一種先進的增強型搜尋引擎，它利用來自數十個來源（包括領先的元數據提供者）的廣泛豐富的數據，並透過電腦視覺提取增強的資訊來分析貨架的每一幀。我們希望遠遠超出通過有限的方式搜索事物，並且由標題演員導演提綱歸根結底，電影和精彩的電視是關於喚起情緒的，並將通過允許用戶通過更主觀的搜索來查找內容來支持這一點諸如設置場景、情緒基調強度和更多獨特功能之類的維度對於實現高度相關的廣告將非常有價值。

As you can imagine ultimately, it's about helping consumers find exactly what they want regardless of what platform or business model. And we wanted to be fun to and what could be more fund and interacting with the world's greatest movie expert. That's what we're attempting to build.

正如您最終可以想像的那樣，它是為了幫助消費者準確地找到他們想要的東西，無論什麼平台或商業模式。我們希望能夠與世界上最偉大的電影專家一起獲得樂趣，並且能夠提供更多的資金和互動。這就是我們正在嘗試建構的。

Eva, our ad-based video advisor, we envision a that to not only be a significant expert in the whole universe of cinema, but also on the films and content with any specific streaming service today is an expert across hundreds of thousands of films, and we expect to rapidly expand those capabilities.

伊娃（Eva）是我們基於廣告的視訊顧問，我們設想她不僅是整個電影領域的重要專家，而且是當今任何特定串流媒體服務的電影和內容的專家，是數十萬部電影的專家，我們期望迅速擴展這些能力。

Now when seeking something to watch, if you do it in a fun, engaging conversation with the family, a persona, but you can search through and interact with in ways never previously Emageon.

現在，當您尋找值得觀看的內容時，如果您以與家人、角色進行有趣、引人入勝的對話的方式進行，那麼您可以以 Emageon 以前從未有過的方式進行搜索和互動。

Now let's talk a little bit about our performance. Our digital and streaming revenues reached $13.3 million during the quarter, which while down 36% over the prior year quarter. That was driven by the expansion, and it was driven by the expansion and optimization of our enthusiast subscription revenues, but was offset by the lack of a comparable title to tariffs or two in the quarter. And then on top of that, our planned portfolio optimization efforts to reduce low-margin channels. And we also saw a decline in Q3 ad revenues driven by slower December sales and challenging comps with last year without political advocacy spending in the current fiscal year, subscription revenue side increased to $3.4 million, which is up 13% over last year. Our overall overall subscriber count has reached approximately $1.4 million subscribers, growth of 30% year over year and up 11% over the prior quarter. This was predominantly due to the growth in subscribers during the quarter on Dove and our cult film service, midnight pulp. This progress in a diverse array of channels underscores the strength and appeal of our enthusiast streaming services and the overall diversity of our revenue model.

現在讓我們談談我們的表現。本季我們的數位和串流媒體收入達到 1,330 萬美元，比去年同期下降 36%。這是由擴張推動的，也是由我們的愛好者訂閱收入的擴張和優化推動的，但被本季度缺乏一兩個類似的關稅頭銜所抵消。除此之外，我們計劃進行投資組合優化，以減少低利潤管道。我們也看到，由於 12 月銷售放緩以及與去年相比面臨挑戰，本財年沒有政治宣傳支出，導致第三季廣告收入下降，訂閱收入增加至 340 萬美元，比去年增長 13%。我們的總訂閱人數已達到約 140 萬美元，年增 30%，比上一季成長 11%。這主要是由於本季《Dove》和我們的熱門電影服務《午夜通俗》訂戶數量的成長。各種管道的這項進展凸顯了我們愛好者串流服務的實力和吸引力以及我們收入模式的整體多樣性。

Ad-based revenues dipped to $4.1 million, a decrease of 31% this decline is in line with comments made by Christian mark coming from channel portfolio optimization and of course, the tough comp with last year, which had slowed significant political and advocacy spending. We also saw lighter than anticipated in December after robust October and November, and we believe this is due to a strategic shift by brands and agencies and open marketplace for programmatic advertising. We have campaigns now ending far earlier in the month than in prior years in conversation with our marketplace peers and partners. The seems to be widespread across the industry and not just isolated to us. We believe our long-term focus on shifting our revenue mix away from open market programmatic to programmatic guaranteed by the marketplace in direct ad deals will alleviate our exposure to the volatility in the open marketplace.

基於廣告的收入下降至 410 萬美元，下降了 31%，這一下降與 Christian Mark 對通路組合優化的評論一致，當然也與去年的艱難比較一致，去年的情況減緩了重大的政治和宣傳支出。在 10 月和 11 月的強勁表現之後，我們在 12 月看到的情況也優於預期，我們認為這是由於品牌和代理商的策略轉變以及程序化廣告的開放市場所致。透過與市場同行和合作夥伴的對話，我們現在的活動在本月結束的時間比往年早得多。這種情況似乎在整個行業中普遍存在，而不僅僅是我們。我們相信，我們長期致力於將收入結構從公開市場程序化轉變為由市場直接廣告交易保證的程序化，這將減輕我們面臨公開市場波動的風險。

During the quarter, we continue to focus on sustained profitability with operating margin and net income. We saw further progress in that area lifting our overall gross margins to 59%. We've been able to achieve those levels by leveraging our library to reduce short term content spend, renegotiating most of our operating deals to be more favorable and by focusing on the highest margin parts of our business, namely third party distributed fast and SVOD channels. At these margin levels, we unlock something that is very uncommon in the streaming business, scale operating margins. Most of the major media companies are barely eking out profits and streaming in the low to single digits with a long way to go before they have realistic businesses and streaming. We think our philosophy of operating streaming services that provide a wide array of choice in targeted high-quality library programming from around the world mall that works in the face of larger companies slashing content while raising prices. We believe this low-cost Moneyball approach to streaming can deliver outsized margins and profits and has a highly scalable model. Subsequent to quarter end, we also launched several new fast enabled services that we had previously announced, including the CGM on Douglas fir channel mediator.

在本季度，我們繼續關注營業利潤率和淨利潤的持續獲利能力。我們看到該領域取得了進一步進展，將我們的整體毛利率提升至 59%。我們已經能夠實現這些水平，方法是利用我們的圖書館減少短期內容支出，重新談判我們的大部分營運交易以使其更加有利，並專注於我們業務的最高利潤部分，即第三方分發快速和SVOD渠道。在這些利潤水平上，我們解鎖了串流媒體業務中非常罕見的東西，即擴大營業利潤。大多數主要媒體公司都勉強維持利潤，串流媒體的利潤只有低至個位數，在擁有現實的業務和串流媒體之前還有很長的路要走。我們認為，我們經營串流媒體服務的理念是為來自世界各地的有針對性的高品質圖書館節目提供廣泛的選擇，這在面對大公司削減內容同時提高價格的情況下是有效的。我們相信這種低成本的點球成金的串流媒體方法可以帶來巨大的利潤和利潤，並且具有高度可擴展的模型。在季度末之後，我們也推出了先前宣布的幾項新的快速啟用服務，包括花旗松通道調解器上的 CGM。

Good Marty cross channel, entrepreneur, TV Barney & Friends and several other channels will be coming online in the next few weeks. As such, all of these channels are quickly ramping revenue contribution as we grow the distribution footprint over the coming two quarters over the next few quarters, we're going to continue to our focus on optimization and as we've achieved a high degree of optimization on the operating side, we're now focusing on the SG&A side. Our strategies continue to simplify our organizational structure and continue to rationalize that because new model will continue to leverage our growing capabilities for Cineverse services hub in India, which allows us to operate much of the back office services and greater cost efficiency. We think leveraging this core capability along with other cost optimizations will enable us to achieve the [15% to 20%] net income margins we're targeting in the near term for this business. All in all, we've made great strides in the last several quarters. And we now have a streaming business that can scale with best-in-class margins and innovative in-demand technology platform, but even better margins, a strong pipeline of exciting new businesses and customers we expect to bring forward during our upcoming fiscal year. Our future looks incredibly bright, and we can lead to some more as things develop.

Good Marty 跨頻道、企業家、TV Barney & Friends 和其他幾個頻道將在未來幾週內上線。因此，隨著我們在未來兩個季度擴大分銷足跡，所有這些管道的收入貢獻都將迅速增加，我們將繼續專注於優化，並且我們已經實現了高度的運營方面的優化，我們現在重點關注SG&A方面。我們的策略繼續簡化我們的組織結構並繼續合理化，因為新模式將繼續利用我們在印度 Cineverse 服務中心不斷增長的能力，這使我們能夠運營大部分後台服務並提高成本效率。我們認為，利用此核心能力以及其他成本優化將使我們能夠實現我們在短期內為該業務設定的目標淨利潤率[15%至20%]。總而言之，我們在過去幾個季度取得了巨大進步。我們現在擁有一個串流媒體業務，可以透過一流的利潤率和創新的需求技術平台進行擴展，但甚至可以實現更好的利潤率，我們預計將在即將到來的財政年度推出一系列令人興奮的新業務和客戶。我們的未來看起來非常光明，隨著事情的發展，我們可以帶來更多的未來。

With that operator, let's open it up for Q&A.

有了該操作員，讓我們打開它進行問答。

Thank you. If you would like to ask a question, please press star followed by one on your telephone keypad. If you would like to withdraw your question, please press star followed by two. Once again to ask your question, please ensure your device is unmuted low.

謝謝。如果您想提問，請按下電話鍵盤上的星號，然後再按一個。如果您想撤回您的問題，請按星號，然後按兩顆星。再次詢問您的問題，請確保您的裝置未靜音。

Brian Kinstlinger, Alliance Global Partners.

Brian Kinstlinger，聯盟全球合作夥伴。

Great, congratulations on making the difficult but necessary decisions, call the channels and give up some revenue where economics report great to see EBITDA profit without the legacy business or one of the first times I can remember. So great job. And can you talk about we expected early commitments from the platforms related to your new channels, whether it be Darwish or immediate or sit in Marty cross channel as well as entrepreneur, how long would it take to know whether these will be needle movers and how long does it take to know whether they will. It's the success you hope they'll hit.

太好了，恭喜您做出了艱難但必要的決定，致電渠道並放棄了一些經濟報告中的收入，在沒有遺留業務的情況下看到 EBITDA 盈利，這還是我記憶中的第一次。太棒了。您能否談談我們預計與您的新管道相關的平台的早期承諾，無論是Darwish 還是即時的，還是坐在Marty 跨渠道以及企業家中，需要多長時間才能知道這些平台是否會成為推動者以及如何實現需要很長時間才能知道他們是否會這樣做。這是您希望他們取得的成功。

Hey, Brian, this is Chris.

嘿，布萊恩，這是克里斯。

I'm just wondering.

我是在想。

Thank you for that. I want to thank you for those comments?

謝謝你。我想感謝你的這些評論？

First, Brian, there were spot on and we appreciate it very much. And I guess, Erika, I answer your question.

首先，布萊恩，你說得很對，我們非常感激。我想，艾莉卡，我回答你的問題。

Sure.

當然。

Yes.

是的。

A great question. Yes. So yes, we over the last few years as we've been launching these channels?

這是一個很好的問題。是的。那麼是的，我們在過去幾年中一直在推出這些管道？

Yes.

是的。

When we first started this because we're very early on, we've been doing fast now almost five, almost six years now today, the competition for slots have gone up dramatically, have every major studio now launching channels. And so that's the lead time and to launch new channels is really longer than it was when we first started doing this business used to be a quarter or two and it's nowhere near the duration. It used to take in cable to get full distribution that could take three to four years. If you are doing a good job, I think here six to nine months is probably a realistic, steady state for distribution. Some may take a little longer as we now have a lot of legacy media providers entering the space from Direct TV charter, others are all contemplating services. And so some of the legacy cable providers like Comcast are in it. So as we as we look at the at the market here, I think I think that part of the duration is going to continue to get longer as this business looks more and more like the new cable up for us.

當我們第一次開始這項工作時，因為我們還很早，現在我們已經快五年、快六年了，現在，老虎機的競爭急劇加劇，每個主要工作室現在都推出了頻道。因此，這就是準備時間，推出新管道的時間實際上比我們剛開始做這項業務時要長一兩個季度，而且遠不及持續時間。過去，它需要有線電視才能完全分發，這可能需要三到四年的時間。如果你做得很好，我認為六到九個月可能是一個現實的、穩定的分配狀態。有些可能需要更長的時間，因為我們現在有許多傳統媒體提供者透過 Direct TV 特許進入該領域，其他人都在考慮提供服務。因此康卡斯特等一些傳統有線電視供應商也參與其中。因此，當我們審視這裡的市場時，我認為部分持續時間將繼續變得更長，因為這項業務看起來越來越像我們的新電纜。

I think the good news is we launch a lot of our new services on pretty large scale platforms like Tubi, Amazon and others. So we get a really good perspective right out of the gate and about how well they're going to perform. I'll give you one good data point that we find very optimistic. Our dog whisper channel is already outperforming Bob Ross, which has always been our big champion performer by about 40% on the first platforms, we've launched it and which includes some big players like Amazon and others. So we think that's very, very promising. And so we always thought, Bob, these are more on could be a second, Bob Ross, that it's doing even better than Bob Ross, is this great. And so we think as that scales out its distribution, we're hoping to see that same pattern follow-up. Same goes for meter meter on the platforms we've launched, it's been dramatically over overindexing, far above other things that we have on the platforms at time. And so we think that that we've always known that it's going to fill a niche that's really not being served by most fast channels in the market today, but we think and the performance we're seeing there is extremely impressive. So out of the gate so far, it's too early to tell on some of the other ones and just launch. But I think And overall, we're very, very pleased with the ones that should be doing well or doing better than we expected and with things like need or do you have doing even better than we had even hoped still looking like it's going to be very fruitful Our next few quarters.

我認為好消息是我們在 Tubi、亞馬遜等大型平台上推出了許多新服務。因此，我們一開始就能獲得非常好的視角，了解他們的表現如何。我將為您提供一個我們認為非常樂觀的良好數據點。我們的狗耳語頻道的表現已經超過了鮑勃·羅斯（Bob Ross），鮑勃·羅斯在第一個平台上一直是我們的大冠軍表演者大約40%，我們已經推出了它，其中包括亞馬遜等一些大玩家。所以我們認為這非常非常有希望。所以我們一直認為，鮑勃，這些可能是第二個，鮑勃·羅斯，它做得比鮑勃·羅斯更好，這太棒了。因此，我們認為，隨著其分佈範圍的擴大，我們希望看到相同的後續模式。我們推出的平台上的米表也是如此，它的索引嚴重過度，遠高於我們當時在平台上擁有的其他東西。因此，我們認為我們一直都知道它將填補當今市場上大多數快速管道實際上無法提供的利基市場，但我們認為我們在那裡看到的表現非常令人印象深刻。因此，到目前為止，現在談論其他一些並啟動還為時過早。但我認為總的來說，我們對那些應該做得很好或做得比我們預期更好的人感到非常非常滿意，以及諸如需求之類的事情，或者你做得比我們希望的更好，但看起來仍然會這樣我們接下來的幾季將會非常富有成果。

Great. That's super helpful.

偉大的。這非常有幫助。

A little way to think about because it's unclear to us how many platforms you are on early on and the adoption scale? Is there something you can share with us in terms of maybe exiting calendar 2024 for each channel in total on a run rate might look like in terms of revenue is that too difficult to provide a totally unclear?

需要思考一下，因為我們不清楚您早期使用了多少個平台以及採用規模？您是否可以與我們分享一些關於每個頻道 2024 年退出日曆的信息，從收入方面來看，運行率可能看起來像是很難提供完全不清楚的信息？

Just maybe any a whole discussion on that would be great.

也許對此進行任何完整的討論都會很棒。

Yes, I think it's it's too early. It's too early to say. We're just rolling out the distribution on these. But the expectation out of these larger brands and channels was to stand up another Bob Ross was to stand up another sort of large scale brand and early indications are that between mediator between mediator and others?

是的，我認為現在還為時過早。現在說還太早。我們剛剛推出了這些發行版。但這些更大的品牌和管道的期望是站起來另一個鮑勃·羅斯是站起來另一個大型品牌，早期跡像是調解者與其他人之間的調解者之間的關係嗎？

We're really good. I think we really do have that here. I think also one of the things that's changed in the last few months and last year in the prior year, there was really a more conservative approach to channel launches. And I do think that what we're seeing is most of the major players are really ramping up on the total footprint that we that we're seeing here. So in aggregate, if you kind of look at where we are steady-state with the current business, my sense is we've added at least another Bob Ross and a half maybe to Bob Ross's long term at full steady-state distribution. I don't have any specific numbers to share with you on that. But yes, yes, I don't think I give you a sense of scale.

我們真的很好。我想我們這裡確實有這樣的東西。我認為過去幾個月和去年發生的變化之一是，通路啟動確實採取了更保守的方法。我確實認為我們看到的是大多數主要參與者確實在增加我們在這裡看到的總足跡。因此，總的來說，如果你看看我們當前業務的穩定狀態，我的感覺是，我們至少又增加了鮑勃·羅斯的一半，也許是在鮑勃·羅斯的長期完全穩定分配的基礎上。我沒有任何具體數字可以跟大家分享。但是，是的，是的，我認為我沒有給你一種規模感。

Yes, great.

對，很好。

And then maybe you can provide some updates regarding the managed services business. You made some high-level comments, but last call you talked about, I think getting to a $10 million revenue run rate as you exited calendar 2024, if I'm saying that right?

然後也許您可以提供一些有關託管服務業務的最新資訊。您發表了一些高層評論，但您在上次通話中談到，我認為在 2024 年退出日曆時，收入運行率將達到 1000 萬美元，如果我說得對的話？

Correct me if I'm wrong, which I believe would assume probably two large VSPs and maybe some smaller ones onboarded. Can you talk about if your assumptions have changed, but it's still reasonable? And any any discussions on early adopters would be great.

如果我錯了，請糾正我，我相信這會假設可能有兩個大型 VSP 和一些較小的 VSP 加入。您能談談您的假設是否發生了變化，但仍然合理嗎？任何關於早期採用者的討論都會很棒。

Yes, all our I'll get it started and Tony, who is on the call can can provide some color on that, too, as we kind of look at our product suite in our product mix from where we are. We're getting the most attention and traction is on the dispatch side, which makes all sense. United might come in my prepared comments. We said that every major fast platform, which include Samsung, Brazil, all of them know that they had it relatively easy over the last few years where had to launch to launch that platform. They took a fee from us and hundreds of other people, and it's a lot easier than managing an ad-supported service, you know, content deliveries on other people handle the programming. You don't really you're not involved at the depth of analytics versus Avon. There's no back-office problems you have to deal with for bank royalties and things like that.

是的，我會開始做這件事，接聽電話的托尼也可以提供一些信息，因為我們從我們所處的位置審視我們的產品組合中的產品套件。我們受到最多的關注，而牽引力來自調度方面，這是有道理的。曼聯可能會出現在我準備好的評論中。我們說過，每個主要的快速平台，包括三星、巴西，都知道在過去幾年中，他們的推出相對容易，必須推出這個平台。他們從我們和其他數百人那裡收取費用，這比管理廣告支援的服務要容易得多，你知道，其他人處理節目的內容交付。與雅芳相比，你實際上並沒有參與深度分析。您無需處理銀行特許權使用費等後台問題。

Well, now that they're all aspiring to be Tubi and Pluto, like with big, vast Avon Kellogg, they'll need massive amounts of technology. On the flip side, they need to ingest lots of content. You've got the universe where Avon is rapidly growing and expanding alongside fast now and this year, I think we'll be you'll see that I've heard a lot of other pundits in the market talking about that. And I would tend to agree, given our conversation. I see us in other places with the platforms and content owners. So this universe where you have this massive demand and need for the ability to push tens of thousands of hours and receive and managed and tens of thousands of hours. I think it's led to a universe where most of these people have no systems to do this. They're doing it manually. They're doing it well, Google Sheets and paying third parties to do it manually a very high cost. And that's not scalable. And we saw this the last time a digital 1.0 and you had items in Amazon, prime and other places you have to be able to do this at scale. And so all of these companies and all of it on both sides are really going to they need massive amounts of technology. And beyond that date, you need to deploy technology that can leverage AI had to do things like content, localization, captions and enriching the meditation, meta data detection and other things that we haven't even contemplated where the industry is going today and add things like automated ad insertion. So we do all this today. So so we think long story short is dispatch. It's proving to be far more important to the market than I think we anticipated when we started going out to market, we thought the app side is going to probably be a bigger piece. So the good news is this unlocks far bigger potential customers and what that means for sales cycles is clearly, you know, it's a longer sales cycle than focusing on SMB, but the potential revenues are much greater. So I think your I think your thoughts on us having them and larger scale customers.

好吧，既然他們都渴望成為 Tubi 和 Pluto，就像巨大的雅芳家樂氏 (Avon Kellogg) 一樣，他們將需要大量的技術。另一方面，他們需要攝取大量內容。雅芳現在和今年都在快速成長和擴張，我想我們會看到，我聽到市場上很多其他專家都在談論這一點。鑑於我們的談話，我傾向於同意。我在其他地方看到我們的平台和內容所有者。因此，在這個宇宙中，您有巨大的需求，需要能夠推動數萬小時並接收和管理數萬小時的能力。我認為這導致了一個大多數人沒有系統可以做到這一點的宇宙。他們正在手動進行。他們做得很好，谷歌表格並支付給第三方手動完成，成本非常高。這是不可擴展的。我們上次在數位 1.0 時代看到了這一點，你在亞馬遜、Prime 和其他地方都有商品，你必須能夠大規模地做到這一點。因此，所有這些公司以及雙方的所有公司都確實需要大量的技術。在那之後，你需要部署可以利用人工智慧的技術來完成諸如內容、本地化、字幕和豐富冥想、元數據檢測以及其他我們甚至沒有考慮到行業今天的發展方向的事情，並添加自動廣告插入之類的事情。所以我們今天就做這一切。所以我們認為長話短說就是派遣。事實證明，它對市場的重要性比我們開始進入市場時預期的要重要得多，我們認為應用程式方面可能會成為更大的一塊。因此，好消息是，這釋放了更大的潛在客戶，這對銷售週期顯然意味著，你知道，它的銷售週期比專注於中小企業更長，但潛在收入要大得多。所以我想你對我們擁有他們和更大規模的客戶的看法。

I think that's right. I would say I would say if we could scale it could store up two to three big scale enterprise partners on the side. And I think that would probably be that would put us on a path to those numbers that we have been talking about. We also think, obviously onboarding lots of customers on the delivery and content outside those customers who would be our motivated because the market demand for large volumes of content is there everybody from Netflix on down is ramping up licensing and some partners are saying send us everything you've got, right? And so we're so we're an immediate revenue generation solution. And we're doing this at.

我認為這是對的。我想說的是，如果我們能夠擴展規模，它可以同時儲存兩到三個大型企業合作夥伴。我認為這可能會讓我們走上實現我們一直在談論的那些數字的道路。我們也認為，顯然，在交付和內容方面吸引了大量客戶，這些客戶之外的客戶會成為我們的動力，因為市場對大量內容的需求是存在的，從Netflix 開始，每個人都在加強許可力度，有些合作夥伴表示將所有內容都寄給我們你有吧？所以我們是一個立即創造收入的解決方案。我們正在做這件事。

Keep in mind.

記住。

We did this to support our own business on that over the last decade led us to here. So we're doing this at maybe one H., the cost of doing it through on legacy means. So not only do people save a ton of money, they make a lot of money by being able to do this at scale. So this is I think that really is going to unlock far more customers on the smaller side. So I hope that gives you some context on what that means for this year.

我們這樣做是為了支持我們自己的業務，在過去的十年裡，我們走到了這裡。因此，我們可能會以 1 H 的成本來做這件事，這是透過傳統手段完成這件事的成本。因此，人們不僅可以節省大量資金，還可以透過大規模地這樣做賺很多錢。所以我認為這確實會釋放更多小規模客戶。因此，我希望這能讓您了解這對今年意味著什麼。

Brand-new sneak one last question. Alumina hop off and I'm sure search this functionality that you're going to train and sell directly into streaming platforms. As a standalone solution. So like a subscription or is it going to be bundled or somehow priced into when you have your product?

全新偷偷問最後一個問題。Alumina 跳下車，我確信您會搜尋這個功能，您將直接將其訓練並銷售到串流媒體平台。作為獨立的解決方案。那麼，就像訂閱一樣，還是在您擁有產品時將其捆綁或以某種方式定價？

Tony, you want to do you want to describe the your thoughts on the business model?

托尼，您想描述一下您對商業模式的想法嗎？

I'll take that, Brian, thank you for the question.

我會接受的，布萊恩，謝謝你的提問。

And it's probably the short answer is all of the above. I think from my perspective, having done some initial outreach, our TBOEM.s is following the first likely partnership. The TV manufacturers have a variety of different services and apps and mitochondrial content libraries that they can't really properly provide search for that. We think that would be the first opportunity is likely going to be in licensing model. In that case, it likely would be white label. We won't require that to keep this in check branding or the rebranding, but we're not opposed to it. I think the second tier would be smaller platforms are definitely not the Netflixes of the world, but others who are trying to compete who have difficulty with Discovery Center search once again would be made available there. And then ultimately where we see everything that we do as a showpiece for mass point. So we will make it available within some research and potentially other services that we launch. And so in that case on a consumer model, it'll be likely a hybrid, a free tier with unlimited usage, premium tier, a paid sponsorship search ads, combination of different ways to monetize. Ultimately the cost that we're trying to cover is the our access e-mail alone can be expensive, the OpenEye. So you had that problem that's really came out with the subscription $20 fee that the later raised. So we will see the same issues that a lot of our focus has been on trying to optimize the usage and better understand behavior, hence why we're coming out with the beta first with all, we can get a better understanding of the cost structure.

簡短的回答可能就是以上所有內容。我認為，從我的角度來看，在進行了一些初步的推廣後，我們的 TBOEM.s 正在遵循第一個可能的合作夥伴關係。電視製造商擁有各種不同的服務和應用程式以及粒線體內容庫，但他們無法真正正確地提供搜尋。我們認為這將是第一個機會可能是在許可模式中。在這種情況下，它可能會是白標。我們不會要求這樣做來控製品牌或品牌重塑，但我們並不反對它。我認為第二層將是較小的平台，絕對不是世界上的 Netflix，但其他試圖在探索中心搜尋方面遇到困難的人將在那裡提供。最終，我們將所做的一切視為大眾觀點的展現。因此，我們將在一些研究和我們推出的其他潛在服務中提供它。因此，在這種情況下，在消費者模型中，它可能是一種混合體，即無限使用的免費層、高級層、付費贊助搜尋廣告以及不同貨幣化方式的組合。最終，我們要承擔的成本是我們的訪問電子郵件（OpenEye）本身可能很昂貴。所以你遇到的問題其實是後來提出的 20 美元訂閱費造成的。因此，我們會看到相同的問題，我們的許多重點都放在嘗試優化使用和更好地理解行為上，因此為什麼我們首先推出測試版，我們可以更好地了解成本結構。

Great.

偉大的。

Thanks so much, guys.

非常感謝，夥計們。

Thanks, Brian.

謝謝，布萊恩。

Dan Kurnos, Benchmark Company.

Dan Kurnos，基準公司。

Great. Thanks and good evening. Tony, can I just follow up on that for a second and obviously major platforms like Roku have what to watch and everyone's trying to figure out how to work on discovery in the space. And I think what you guys are proposing is really intriguing for sort of the next evolution, obviously that there are some puts and takes around and you guys met eTag everything appropriately and a I still has some accuracy issues. So I'm sure you're tracking at work all of that out and some of that's going to be incumbent on the owners of the actual content to fix some of that, I guess in order to make this thing work. But on the flip side, given how many at least for now until there's more consolidation can be given how many platforms are out there, if you're offering this tool is there not a way for you guys to ultimately participate in the bounty rates that you know, like Roku, somebody at Roku point, somebody, Netflix this as hey, this is on, you know, you might want to sign up for Netflix. And Fred, that example is they don't monetize Netlist's that way, but that they would theoretically capture bounty for that I know you guys are trying to, but this is part of a broader package, but there's a huge elements or secondary element of subscription service sign-up that is addressable here and I know the OEMs want to tap into that and just curious how you're thinking about, you know, kind of everything that I just sort of laid out in that sort of secondary revenue stream.

偉大的。謝謝，晚上好。東尼，我可以跟進一下嗎，顯然像 Roku 這樣的主要平台都有值得關注的內容，每個人都在努力弄清楚如何在該領域進行發現。我認為你們提出的建議對於下一步的發展來說確實很有趣，顯然有一些放和取，你們適當地滿足了 eTag 的一切，但我仍然存在一些準確性問題。因此，我確信您正在工作中追蹤所有這些內容，其中一些內容將由實際內容的所有者負責修復其中一些內容，我想為了使這件事發揮作用。但另一方面，考慮到至少目前有多少平台，直到有更多的整合可以考慮到有多少平台存在，如果你提供這個工具，難道沒有辦法讓你們最終參與到賞金率中嗎？你知道，例如Roku，Roku 點的某個人，某個人，Netflix，嘿，這已經開始了，你知道，你可能想註冊Netflix。弗雷德，這個例子是他們不會以這種方式貨幣化網表，但理論上他們會為此獲得賞金，我知道你們正在嘗試這樣做，但這是更廣泛的一攬子計劃的一部分，但有一個巨大的元素或次要元素訂閱服務註冊可以在這裡找到，我知道原始設備製造商想要利用這一點，只是好奇你是如何思考的，你知道，我剛剛在那種次要收入流中列出的一切。

First of all, Brian, sorry for coming again.

首先，布萊恩，很抱歉又來了。

And your voice continues, So Tony, it's something that we've thought about. And that's essentially what you're describing is an affiliate model, a bounty of paper Bounty. I see that probably as a secondary approach, I think for us to get to the point where that makes sense, we need scale and for us to get scale. We need some fairly large partnerships in place at that point when we have the eyeballs and the viewership in place we potentially can. And these affiliate models exist. It's not something that we need to go out and invest. So we have the ability to strike deals where we drive traffic and can show conversion. We should be able to benefit and get some type of subscription a bounty for doing so there.

你的聲音還在繼續，東尼，這是我們考慮過的事情。這本質上就是您所描述的附屬模型，即紙質賞金的賞金。我認為這可能是一種次要方法，我認為為了讓我們達到有意義的地步，我們需要規模，並讓我們獲得規模。當我們擁有足夠的眼球和收視率時，我們需要建立一些相當大的合作關係。這些聯盟模式是存在的。這不是我們需要出去投資的東西。因此，我們有能力在吸引流量和展示轉換的情況下達成交易。我們應該能夠從中受益並獲得某種類型的訂閱獎勵。

What's interesting about this product is there's a lot of different ways of kind of trying to extract value and monetize the service in terms of what you're outlining, we're not relying only on traditional native data that comes from the licensors. First of all, we license, we haven't we have official license to official native data from key native data suppliers. But as Eric pointed out, we are investing heavily and we've already started the process of indexing our library as well to computer vision. And ultimately that data has tremendous value that has probably a third possible revenue stream, which is we could start passing that through the ad tag one, our ad-supported business as we're serving as we're doing FAST channels and providing these two platforms, the more detail you can provide about what's inside the movie, the value there on the advertiser side. So we think that's an area where the work that we're doing on AI. and contextual tagging has significant value in the long term. The future is all going to be about native data and AI only works well when it has a very rich library of trove of data and research from. And so for us over the last year, you've probably seen some of these announcements we've done with buying labs and others. Many of you probably don't really understand the significance, but we've been laying the groundwork for this product for the last year. And part of that groundwork has been building the major data capabilities and building our library of native data so we can better search it. And so really what we've announced today is a combination of all that work in finally to be presented in a package that consumers and investors can understand.

該產品的有趣之處在於，根據您概述的內容，有許多不同的方式試圖提取價值並將服務貨幣化，我們不僅僅依賴來自授權人的傳統本機資料。首先，我們獲得許可，我們沒有獲得來自主要原生資料供應商的官方原生資料的官方許可。但正如艾瑞克指出的那樣，我們正在進行大量投資，我們已經開始為我們的圖書館以及電腦視覺建立索引。最終，這些數據具有巨大的價值，可能有第三種可能的收入來源，那就是我們可以開始透過廣告標籤傳遞它，我們的廣告支援業務，因為我們正在做快速管道並提供這兩個平台上，您提供的有關電影內容的詳細資訊越多，對廣告商而言的價值就越大。所以我們認為這是我們在人工智慧方面所做工作的一個領域。從長遠來看，上下文標記具有重要的價值。未來將取決於原生數據，而人工智慧只有在擁有非常豐富的數據和研究庫時才能發揮良好作用。因此，對於我們來說，在過去的一年裡，您可能已經看到了我們在購買實驗室和其他方面發布的一些公告。你們中的許多人可能並不真正理解其重要性，但我們去年一直在為該產品奠定基礎。這個基礎工作的一部分是建立主要數據功能並建立我們的本地資料庫，以便我們可以更好地搜尋它。因此，我們今天宣布的實際上是所有工作的組合，最終以消費者和投資者可以理解的方式呈現。

Got it that's really helpful.

明白了，這真的很有幫助。

(multiple speakers)

（多個發言者）

I was going to add one point to that, too, is if you kind of look at the broader, the bigger opportunity for platforms as these become very skilled businesses with very large captive audiences of and the 10 million to 50 million-plus users in some cases and the scale global platforms, hundreds of millions on all of them are really thinking about how to squeeze more RPU per user out today. They're all focused on building and based experiences, but there could be a real opportunity here much the way Google deployed ad spend and with the acquisition of DoubleClick and later now scaling that across their whole search product building and building self-service ad tools and other things into this, it allows for a very intuitive and in natural advertising opportunities, native too, and no interaction with the persona. So if you can imagine, interact and interacting with the persona and the platform, if somebody wants to promote something specific and we find somebody's searching for something very appropriate. You're talking about on targeted advertising, contextual advertising. I'm doing it in a natural and very seamless way and a user interaction where users talking with the Persona, having that system the white label to offer and to every streaming service, it could be a very significant ramp opportunity.

我還想補充一點，如果你專注於平台更廣泛、更大的機會，因為這些平台將成為技術精湛的企業，擁有大量的固定受眾，並且擁有 1000 萬至 5000 萬以上的用戶。某些案例和全球規模的平台（所有這些平台上的數億人）今天都在真正考慮如何為每個用戶擠出更多的RPU。他們都專注於建立和基於體驗，但這裡可能存在真正的機會，就像Google部署廣告支出的方式一樣，透過收購 DoubleClick，後來將其擴展到整個搜尋產品建置和建立自助廣告工具和其他東西融入其中，它允許非常直覺和自然的廣告機會，也是原生的，並且不與角色互動。因此，如果您可以想像，與角色和平台互動和互動，如果有人想要推廣特定的東西，並且我們發現有人正在尋找非常合適的東西。您談論的是定向廣告、上下文廣告。我正在以一種自然且非常無縫的方式進行此操作，以及用戶與角色對話的用戶交互，讓該系統提供白標，並且對於每個串流媒體服務來說，這可能是一個非常重要的提升機會。

So we're exploring things like that, come on top of a license and kind of metered usage and Airbus can I think we're feeling like we've got again, one other thing that I think the question that will be asked, why is Google doing it with Cineverse , right? Why isn't Google doing it themselves? And as Eric pointed out, I think the short answer is the short answer is Matchpoint. We have a huge head start over all. The other platforms are trying to compete in this space. What we have in Matchpoint, the underlying foundation, user authentication, recommendation engine. A lot of that fundamental sort of technology is required to power service mix and research. And there's really not a lot of players out there who kind of have that same full stack that we do, and that is really our competitive advantage that we have a head start and we're obviously anxious to get this to market. We want to get it right, but we wouldn't be able to do this if we didn't have the underlying stack that we've built with Matchpoint over the last few years.

所以我們正在探索類似的事情，除了許可證和計量使用之外，空中巴士公司我認為我們感覺我們又得到了，我認為會被問到的另一件事是，為什麼谷歌正在用Cineverse 來做這件事，對吧？谷歌為什麼不自己做呢？正如艾瑞克（Eric）指出的，我認為簡短的答案是「賽點」。整體而言，我們擁有巨大的領先優勢。其他平台正在嘗試在這個領域競爭。我們Matchpoint有什麼，底層基礎，使用者認證，推薦引擎。需要許多基礎技術來支援服務組合和研究。確實沒有多少玩家擁有與我們相同的全端能力，這確實是我們的競爭優勢，我們擁有領先優勢，而且我們顯然渴望將其推向市場。我們希望把事情做好，但如果我們沒有過去幾年用 Matchpoint 建造的底層堆棧，我們就無法做到這一點。

I'm just trying to ask another one because you guys just answered the two questions. I was going to ask on self-serve and why Google, Eric, can you just maybe talk because you brought this up in terms of expanding. I mean, look, this is obviously the key to the platform, right? Is Matchpoint based and you've talked about new capabilities. And on Tony just talked about all the groundwork that's been laid out and the fact that you just landed, who will the partner suggests that doors are open to you that may not have been open previously. And so to the extent that you're thinking about expanding through partnership, you know, obviously you guys are making noise like think back that are linked and on the back end, are there any other particular areas of opportunity that you see through partnership that you can drive more on platform creation, similar to what you announced today? And is it possible that there are other major partners, not to say they're only somebody Googles but other major partners. And Amobee was a big win to that could be coming within next 12 months?

我只是想問另一個問題，因為你們剛剛回答了這兩個問題。我本來想問自助服務以及為什麼谷歌，埃里克，你能不能談談，因為你在擴展方面提出了這個問題。我的意思是，看，這顯然是平台的關鍵，對吧？是基於 Matchpoint 的並且您談到了新功能。托尼剛剛談到了所有已經奠定的基礎工作以及你剛剛落地的事實，合作夥伴將向你敞開誰，這扇門之前可能沒有向你敞開。因此，就您正在考慮透過合作關係進行擴張而言，您知道，顯然您正在發出噪音，例如回想起來，這些聲音是相互關聯的，在後端，您是否透過合作夥伴關係看到了任何其他特定的機會領域您可以推動更多平台創建，類似於您今天宣布的內容？是否有可能還有其他主要合作夥伴，並不是說他們只是谷歌的某個人，而是其他主要合作夥伴。Amobee 是一個巨大的勝利，可能會在未來 12 個月內實現？

Sure. Yes. So first up you make a good point on Google, Google Cloud. And I look at as we built a technology platform here and that getting access to more customers rapidly and scale and rapidly is critical. So in addition to obviously our own direct sales efforts, the MRV partnership really working with the existing cloud stores today, it can be very important. Clearly, we're working Google Cloud. I think the natural progression of this would be off that would be to put Matchpoint and other offerings in the Google Cloud store. And so obviously, getting access to those markets is incredibly important and we will need to do some work to our and our software stack to make it work in that environment. But I think that's an immediate path I think is a real opportunity. So I would say that's a big one, Tony, I don't know if there's any, I think adding more partners,

當然。是的。首先，您對 Google、Google Cloud 提出了一個很好的觀點。我認為，當我們在這裡建立一個技術平台時，快速接觸更多客戶並迅速擴大規模至關重要。因此，除了我們自己的直接銷售努力之外，MRV 合作夥伴關係如今與現有的雲端商店真正合作，這可能非常重要。顯然，我們正在使用 Google Cloud。我認為，自然的進展就是將 Matchpoint 和其他產品放入 Google Cloud 商店。顯然，進入這些市場非常重要，我們需要對我們的軟體堆疊做一些工作，以使其在該環境中運作。但我認為這是一條直接的道路，我認為這是一個真正的機會。所以我想說這是一件大事，東尼，我不知道是否有，我認為增加更多的合作夥伴，

-- Micro services obviously, right?

-- 顯然是微服務，對吧？

Yes, yes.

是的是的。

Micro services. So today, when our platform today, if you if you want to do to work with us and you can license dispatch and start using U-Shin, you can license our blueprint products. You can license our analytics products, but the reality is most major media companies, the biggest scale platforms in the world. They may want to use piece of what we're doing right? They may say, wow, the similar search is amazing, hey, these elements of your stack are awesome, but they're not going to Netflix isn't going to abandon their stack. These are stacked, right? What so that's where the microservices model comes and where we basically take all the features and capabilities and Match Point, make them into a variety of microservices that can be licensed and leverage as a PI.s in third party customer software, and they can be integrated very rapidly with developers.

微服務。所以今天，當我們的平台今天，如果您想與我們合作，並且您可以許可調度並開始使用 U-Shin，您可以授權我們的藍圖產品。您可以授權我們的分析產品，但現實是大多數主要媒體公司、世界上最大的平台。他們可能想利用我們正在做的事情，對嗎？他們可能會說，哇，類似的搜尋太棒了，嘿，你的堆疊中的這些元素太棒了，但他們不會 Netflix 不會放棄他們的堆疊。這些都是疊起來的，對吧？這就是微服務模型的由來，我們基本上採用所有特性和功能以及 Match Point，將它們製作成各種微服務，這些微服務可以作為第三方客戶軟體中的 PI 進行許可和利用，並且它們可以與開發人員的整合非常快。

The beauty of this is you can instead of us taking 6 months to 12 months to deploy a customer. If you have a good SPK. and well documented API.s and an engineer could test you out and see if it works for their SAC. And that's that's where we really need to be going. We're in the process of really on for Matchpoint 1.5 to 2.0 is re-architecting our business model approach. We're still going to offer a full turnkey solution with the backend for SMBs and midsize companies. But I think for us to work with the Netflix, Google Warner Warner Media's and other studios and others that are have their own engineering forces and massive audiences for us to get that business. We're going to sell them microservices instead. And we think ultimately, that's the AWS. model. That's no, that's it. And a lot of cloud-based models follow that. And we think that's a way for us to really win in this space from low barrier to entry, very rapid scale. And when you start having very big companies hitting our services with the meter running, it can be quite lucrative.

這樣做的好處是您可以代替我們花費 6 個月到 12 個月的時間部署客戶。如果你有一個好的SPK。以及記錄良好的 API，工程師可以對您進行測試，看看它是否適用於他們的 SAC。這就是我們真正需要去的地方。我們正在真正從 Matchpoint 1.5 到 2.0 重新建立我們的業務模型方法。我們仍將為中小企業和中型公司提供帶有後端的完整交鑰匙解決方案。但我認為我們可以與 Netflix、谷歌華納華納媒體和其他工作室以及其他擁有自己的工程力量和大量觀眾的公司合作來獲得這項業務。我們將向他們出售微服務。我們認為最終，這就是 AWS。模型。不是這樣的，就是這樣。許多基於雲端的模型都遵循這一點。我們認為，這是我們在這個領域真正獲勝的一種方式，從低門檻到進入，非常快速的規模。當你開始讓非常大的公司透過儀表運作來使用我們的服務時，它可能會非常有利可圖。

Very quick.

很快。

There are no further questions remaining. So I'll pass the conference back over to the management team for closing remarks.

沒有其他問題了。因此，我將把會議轉交給管理團隊進行閉幕致詞。

Great.

偉大的。

This is Chris. So thank you all for joining us today and please feel free to reach out to Julie knows that with any additional questions that you might have. And we very much look forward to speaking to you all again on our next quarterly call. Thank you very much.

這是克里斯。感謝大家今天加入我們，如果您有任何其他問題，請隨時聯繫朱莉知道。我們非常期待在下次季度電話會議上再次與大家交談。非常感謝。

That concludes today's conference call and thank you all for your participation. You may now disconnect your lines.

今天的電話會議到此結束，感謝大家的參與。現在您可以斷開線路。