CuriosityStream Inc (CURI) 2023 Q4 法說會逐字稿

Good afternoon. My name is Jackie, and I will be your conference operator today. I would like to welcome you to the curiosity stream Inc. Q4 2023 earnings call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you'd like to ask a question during that time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again. Thank you. I would now like to turn the conference over to Andrew Lata, Investor Relations, you may begin your conference.

午安.我叫 Jackie，今天我將擔任你們的會議操作員。歡迎您參加好奇心流公司 2023 年第四季財報電話會議。所有線路均已靜音，以防止任何背景噪音。演講者發言後，將進行問答環節。如果您想在此期間提問，只需按電話鍵盤上的星號，然後再按數字 1 即可。如果您想撤回問題，請再按星號一。謝謝。現在我想將會議交給投資者關係部的安德魯·拉塔 (Andrew Lata)，您可以開始會議了。

Welcome to curiosity streams discussion of its fourth quarter and full year 2023 financial results. Leading the discussion today are Clint Stein from curiosity, street streams, Chief Executive Officer, and Peter Westley, curiosity streams, Chief Financial Officer. Following management's prepared remarks, we will be happy to take your questions, but first, I'll review the safe harbor statement.

歡迎參加有關其第四季度和 2023 年全年財務業績的好奇心討論。今天主持討論的是好奇心流派首席執行官克林特·斯坦 (Clint Stein) 和好奇心流派首席財務官彼得·韋斯特利 (Peter Westley)。在管理層準備好的發言之後，我們很樂意回答您的問題，但首先，我將回顧安全港聲明。

During this call, we may make statements related to our business that are forward-looking statements under the federal securities laws, and these statements are not guarantees of future performance, but rather are subject to a variety of risks, uncertainties and assumptions. Our actual results could differ materially from expectations reflected in any forward-looking statements. Please be aware that any forward-looking statements reflect management's current views only and the Company undertakes no obligation to revise or update these statements nor to make additional forward-looking statements in the future. For a discussion of the material risks and other important factors that could affect our actual results, please refer to our SEC filings available on the SEC website.

在本次電話會議中，我們可能會根據聯邦證券法做出與我們業務相關的前瞻性聲明，這些聲明不是對未來業績的保證，而是受到各種風險、不確定性和假設的影響。我們的實際結果可能與任何前瞻性陳述中反映的預期有重大差異。請注意，任何前瞻性陳述僅反映管理階層目前的觀點，本公司不承擔修改或更新這些陳述的義務，也不承擔將來做出額外前瞻性陳述的義務。有關可能影響我們實際結果的重大風險和其他重要因素的討論，請參閱 SEC 網站上提供的 SEC 文件。

And on and on our Investor Relations website as well as the risks and other important factors discussed in today's press release. Additional information will also be set forth in our annual report on Form 10-K for the fiscal year ended December 31, 2023, when filed. In addition, reference will be made to non-GAAP financial measures. A reconciliation of these non-GAAP measures to comparable GAAP measures can be found on our website at investors dot curiosity, stream.com. Now I'll turn the call over to Clint.

以及我們的投資者關係網站以及今天新聞稿中討論的風險和其他重要因素。其他資訊也將在我們提交的截至 2023 年 12 月 31 日的財政年度的 10-K 表格年度報告中列出。此外，也將參考非公認會計準則財務指標。這些非 GAAP 衡量標準與可比較 GAAP 衡量標準的對帳可在我們的投資者點好奇心網站 Stream.com 上找到。現在我將把電話轉給克林特。

Thank you, Andrew. Hello, everyone. I appreciate you all joining us today. Also on the call are our COO and General Counsel, Tia Kelly, our CFO, Peter Westley, and our Head of Content, ROBERT. While we will discuss Q4 in detail. I want to begin this call by congratulating the curiosity team for achieving a significant and critical milestone. I'm delighted to share that we will end Q1 2024 with more cash on hand than we had at the end of Q4 and with positive adjusted free cash flow. And importantly, we will accomplish this without reducing our paid marketing spend. Looking forward, we'll be guiding to positive adjusted free cash flow for the first quarter of 2024, and we'll be initiating a dividend program in April, which will be paid from excess cash.

謝謝你，安德魯。大家好。我感謝大家今天加入我們。參加電話會議的還有我們的營運長兼總法律顧問 Tia Kelly、我們的財務長 Peter Westley 和我們的內容主管 ROBERT。我們將詳細討論第四季。在這通電話開始時，我想祝賀好奇心團隊實現了一個重要且關鍵的里程碑。我很高興地告訴大家，到 2024 年第一季末，我們手頭上的現金將比第四季末更多，並且調整後的自由現金流為正。重要的是，我們將在不減少付費行銷支出的情況下實現這一目標。展望未來，我們將引導 2024 年第一季調整後的正自由現金流，並且我們將在 4 月份啟動股息計劃，該計劃將從超額現金中支付。

Looking back, Q4 was a good quarter that we improved our adjusted free cash flow for a fifth straight quarter as we cut our cash burn to $2.4 million, while sequentially keeping our marketing spend relatively flat, our direct revenue grew both sequentially and year over year continued to roll out our new pricing plans to new direct customers into cohort of our existing subscribers. Many of our annual subscribers are only now coming up for renewal, and most of our channel store partners just began adopting or announcing the increase to our flagship service and even at a higher price point, we continue to believe our subscription services represent an extraordinary value compared to other offerings in the market we entered into new long-term licensing and distribution agreements with partners in Asia and the EU in Q4. And more recently, at the end of February, Apple TV rolled out curiosity stream in 23 countries, not a simple achievement for most U.S. based companies in light of increasingly stringent EU content requirements. Just the last two months, we've had our products and services launched in over 33rd party platforms around the world. In order to expand the top of our marketing and promotional funnel and further monetize our content, we rolled out our Avon product with key partners like Tubi, Zoom, O. and Roku in October, and we are pleased with our early progress as our millions of monthly impressions continue to grow dramatically. We have a large evergreen globally appealing library of content now over 17,000 titles that we are putting to work across new platforms that we believe will both increase and enhance the reliability durability and predictability of our revenues going forward. We reduced G&A significantly in Q4 and have continued to in 2024 as we streamlined the organization, renegotiated vendor agreements and Bard where we had advantages as the impact of new technologies is often overhyped, as we've seen with innovations like the metaverse 5G crypto, we are treading thoughtfully into the AI opportunities available to us thoughtfully immeasurably. We've just started to leverage practical generative AI catalysts in order to explore ways to work faster, cheaper and more efficiently in several areas. Some specific examples we're utilizing today include functional areas like more personalized and targeted email marketing as well as broader CRM initiatives, accelerated sequencing and the editing process, which enables us to meet a broad range of different third party platform requirements around the world and in so doing put more content to work. Our engineering team is testing and using AI to enhance software development practices such as automated code suggestions reviews, data analysis and database query assistance. Additionally, we're experimenting with a to enhance categorization of content analysis of Scripps factual analysis. We've also started using AI for understanding customer feedback through sentiment analysis and summarizing insights to improve user experiences and Content Relevance. While premium program synthetic dubbing is not quite ready for prime time, we believe it's within our sights to create a meaningful impact on the speed and volume of content we can publish across the globe in a growing number of languages in regard to premium factual content and we closed out the year in Q4 with one of our strongest programming slates to date, headlined by our brand defining reboot of connections with James Burke, six part journey through the seemingly small and unrelated events that fuel human innovation. We also had the launch of our annual Dino week stuff anchored this year by the Premier of amazing Dino world to in the release of more cutting edge science and tech specials, like AI. TippingPoint's mystery of the giant birds in a perennial fan favorite top science stories of 2023 Looking ahead, we're excited about our strong start to 2024, including the premiere of original series like science for Evil Geniuses, rebuilding Notre Dame, the invention of surgery and our reduction.

回顧過去，第四季是一個不錯的季度，我們連續第五個季度改善了調整後的自由現金流，將現金消耗削減至240 萬美元，同時保持行銷支出相對平穩，我們的直接收入環比和同比成長繼續向現有訂閱者中的新直接客戶推出新的定價計劃。我們的許多年度訂閱者現在才開始續訂，我們的大多數通路商店合作夥伴剛開始採用或宣布增加我們的旗艦服務，即使價格更高，我們仍然相信我們的訂閱服務代表著非凡的價值與市場上的其他產品相比，我們在第四季度與亞洲和歐盟的合作夥伴簽訂了新的長期許可和分銷協議。最近，2 月底，Apple TV 在 23 個國家推出了好奇心流，鑑於歐盟日益嚴格的內容要求，這對大多數美國公司來說並不是一個簡單的成就。就在過去兩個月，我們的產品和服務已在全球超過 33 個第三方平台上推出。為了擴大我們的行銷和促銷管道的頂部並進一步將我們的內容貨幣化，我們在10 月與Tubi、Zoom、O. 和Roku 等主要合作夥伴推出了雅芳產品，我們對我們的早期進展感到高興，因為我們的數百萬用戶的每月展示次數持續大幅成長。我們擁有一個在全球範圍內具有吸引力的常青內容庫，目前擁有超過17,000 種內容，我們正在將這些內容應用於新平台，我們相信這將增加和增強我們未來收入的可靠性、持久性和可預測性。我們在第四季度大幅減少了一般費用和管理費用，並在2024 年繼續減少，因為我們精簡了組織，重新談判了供應商協議，並與Bard 進行了重新談判，因為新技術的影響經常被誇大，我們在Bard 方面擁有優勢，正如我們在Metaverse 5G 加密貨幣等創新中看到的那樣，我們正在深思熟慮地探索我們所能獲得的人工智慧機會。我們剛開始利用實用的生成式人工智慧催化劑，探索在多個領域更快、更便宜、更有效率地工作的方法。我們今天使用的一些具體範例包括功能領域，例如更個人化和有針對性的電子郵件行銷以及更廣泛的CRM 計劃、加速排序和編輯流程，這使我們能夠滿足世界各地各種不同的第三方平台要求，這樣做可以投入更多內容。我們的工程團隊正在測試並使用人工智慧來增強軟體開發實踐，例如自動程式碼建議審查、數據分析和資料庫查詢幫助。此外，我們正在嘗試增強史克里普斯事實分析的內容分析分類。我們也開始使用人工智慧透過情緒分析和總結見解來了解客戶回饋，以改善使用者體驗和內容相關性。雖然優質節目合成配音還沒有完全準備好進入黃金時段，但我們相信，我們的目標是對我們可以在全球範圍內以越來越多的語言發布的優質事實內容和內容的速度和數量產生有意義的影響。我們在第四季度以迄今為止最強大的節目之一結束了這一年，以我們的品牌定義重新啟動與詹姆斯伯克的聯繫為標題，通過六個部分的旅程，講述了推動人類創新的看似微小且不相關的事件。今年，我們還推出了由令人驚嘆的恐龍世界總理主持的年度恐龍週活動，以發布更多前沿的科學和技術特別節目，例如人工智慧。《TippingPoint》中巨鳥之謎是粉絲們最喜愛的2023 年頂級科學故事展望未來，我們對2024 年的強勁開局感到興奮，包括《邪惡天才的科學》、《重建巴黎聖母院》、《手術的發明等原創劇集的首播以及我們的減少。

In closing, I'm happy to reinforce that we ended the year with over $38 million of cash and equivalents and zero debt zero debt. We believe our strong balance sheet and projected 2024 positive cash flow are major competitive advantages in the current environment. And we continue to believe that our global appeal, our direct subscriber base and direct platforms our broad and deep content library of over 17,000 titles. Our multiyear third-party agreements or public company currency in our rationalized cost structure are uniquely favorable attributes that provide us with sustainable long-term strength, an exceptional flexibility. Over to you, Peter.

最後，我很高興地強調，我們在年底擁有超過 3800 萬美元的現金和等價物，並且零債務零債務。我們相信，我們強勁的資產負債表和預計 2024 年的正現金流是當前環境下的主要競爭優勢。我們仍然相信，我們的全球吸引力、我們的直接訂閱者基礎和直接平台是我們擁有超過 17,000 種圖書的廣泛而深入的內容庫。我們合理化成本結構中的多年期第三方協議或上市公司貨幣是獨特的有利屬性，為我們提供了可持續的長期實力和卓越的靈活性。交給你了，彼得。

Thanks, Clent. As Curt mentioned, we made further progress towards our positive adjusted free cash flow objective during the quarter, and we remain intensely focused on expense discipline and operating efficiency. We believe our Q4 results demonstrate the excellent progress we've made over the past year to improve profitability and cash flow. Fourth quarter adjusted EBITDA improved by $10.2 million compared with the prior year quarter, while adjusted free cash flow improved by $6.4 million year over year.

謝謝，克倫特。正如科特所提到的，我們在本季度朝著積極調整的自由現金流目標取得了進一步進展，並且我們仍然高度關注費用紀律和營運效率。我們相信，我們第四季度的業績證明了我們過去一年在提高獲利能力和現金流方面取得的出色進展。第四季調整後 EBITDA 較去年同期增加 1,020 萬美元，調整後自由現金流較去年同期增加 640 萬美元。

Fourth quarter revenue was in line with our guidance range for the quarter and adjusted free cash flow was above the high end of our guidance range. This was our fifth straight quarter of sequentially improving adjusted free cash flow.

第四季營收符合我們本季的指導範圍，調整後的自由現金流高於我們指導範圍的上限。這是我們連續第五個季度調整後自由現金流連續改善。

Turning to our fourth quarter results, revenue was $14.8 million compared to $14.5 million in the prior year quarter. We saw year-over-year gains in all of our major revenue categories with the exception of our enterprise business, which now represents the smallest portion of our revenue.

轉向我們第四季的業績，營收為 1,480 萬美元，而去年同期營收為 1,450 萬美元。我們所有的主要收入類別均實現了同比增長，但企業業務除外，該業務目前占我們收入的比例最小。

Our largest revenue category in Q4 was again our direct business, which came in at $9.1 million, up 6% both sequentially and year over year, primarily driven by the impact of our price increases implemented earlier in 2023.

第四季我們最大的收入類別再次是我們的直接業務，收入為 910 萬美元，環比和同比增長 6%，這主要是受到 2023 年早些時候實施的價格上漲的影響。

Turning to content licensing, which was our second largest category. This quarter, we generated $3.3 million of revenue compared with $3.0 million in the prior year quarter. Content licensing is an inherently lumpy business. We continue to close a number of barter transactions during the quarter with these deals accounting for $2.5 million of our content total content licensing revenue.

談到內容許可，這是我們的第二大類別。本季度，我們創造了 330 萬美元的收入，而去年同期為 300 萬美元。內容授權本質上是一項不穩定的業務。本季我們繼續完成大量以物易物交易，這些交易占我們內容總內容授權收入的 250 萬美元。

Our next largest category was bundled distribution, which saw $1.8 million of revenue in the quarter compared to $1.5 million in the prior year quarter. Year-over-year growth was primarily driven by new partnerships and the recognition of revenue from earlier periods due to successful collections for Q4. Our other revenue category was $0.5 million, an increase of approximately $0.5 million compared to the fourth quarter of last year when we had less than $10,000 of revenue in this category, our other revenue category includes advertising sponsorships, branded social media, promotional videos, transactions and other sources of revenue. As with our content licensing business, we engage in advertising related barter transactions in the fourth quarter, approximately $350,000 of our other revenue related to barter transactions. While our other revenue is a small part of our business right now, we believe we have significant opportunities to grow our future advertising and sponsorship revenues in our pay-TV channels and in front of the paywall in coming quarters.

我們的第二大類別是捆綁分銷，該季度的收入為 180 萬美元，而去年同期的收入為 150 萬美元。同比成長主要是由新的合作夥伴關係以及由於第四季度成功收款而確認的前期收入所推動的。我們的其他收入類別為 50 萬美元，比去年第四季度增加了約 50 萬美元，當時我們該類別的收入不到 10,000 美元，我們的其他收入類別包括廣告贊助、品牌社交媒體、宣傳影片、交易和其他收入來源。與我們的內容授權業務一樣，我們在第四季度從事與廣告相關的以物易物交易，我們其他收入中約 35 萬美元與以物易物相關。雖然我們的其他收入目前只占我們業務的一小部分，但我們相信，在未來幾個季度，我們有很大的機會在付費電視頻道和付費牆前增加未來的廣告和贊助收入。

Fourth quarter gross margin of 45% increased from 9.4% in the prior year quarter, driven by our cost control efforts and a significant decline in content amortization expense. Content amortization in the fourth quarter was $5.2 million, which was about half of the $9.8 million we recorded in the prior year quarter. We expect content amortization expense, the largest component of our cost of revenues to continue to decline going forward and ultimately converge with the lower level, have new content investment that we require now that we've achieved critical mass in our content library.

在我們的成本控制努力和內容攤銷費用大幅下降的推動下，第四季毛利率從去年同期的 9.4% 上升至 45%。第四季的內容攤銷為 520 萬美元，約為去年同期 980 萬美元的一半。我們預計內容攤銷費用（我們收入成本的最大組成部分）將繼續下降，並最終與較低水平趨同，我們現在已經在內容庫中達到了臨界質量，因此我們需要新的內容投資。

G&a expense during the fourth quarter of 2023 of $6.4 million was down $1.2 million or 15% year over year, driven by lower compensation and professional services costs as part of our more than $15 million in planned reductions and cash spending that we in cash spending that we discussed on our Q3 earnings call, we initiated a reduction in force in December, which resulted in a $0.8 million restructuring charge during the quarter. From an accounting standpoint, we record we recorded this charge, which mostly consists of severance costs in Q4 of 2023, although the majority of these costs will be paid in 2024 as we align our staff levels with our current business needs. We believe that our workforce optimization efforts will enable us to operate more efficiently and significantly reduce compensation costs in 2024 and beyond. Our fourth quarter. Advertising and marketing expense of $5 million was down 45% year over year. And we continue to exercise discipline and analytical rigor and in deploying our customer acquisition dollars.

2023 年第四季的一般及行政費用為640 萬美元，年減120 萬美元，即15%，這是由於薪酬和專業服務成本下降，這是我們超過1500 萬美元的計劃削減和現金支出的一部分。我們在第三季財報電話會議上討論過，我們在 12 月開始裁員，導致本季產生了 80 萬美元的重組費用。從會計角度來看，我們記錄了這筆費用，其中主要包括 2023 年第四季的遣散費，儘管其中大部分費用將在 2024 年支付，因為我們將員工水準與當前業務需求保持一致。我們相信，我們的勞動力優化工作將使我們能夠更有效率地運營，並在 2024 年及以後大幅降低薪資成本。我們的第四季。廣告和行銷費用為 500 萬美元，年減 45%。我們將繼續恪守紀律和嚴謹的分析，並部署我們的客戶以獲取資金。

Moving to profitability. Adjusted EBITDA loss was $3.4 million, the calculation of which excludes the $0.8 million restructuring charge that I discussed earlier compared to an adjusted EBITDA loss of $13.6 million in the prior year quarter. Adjusted free cash flow use of $2.4 million for the quarter improved $6.4 million year over year. As we mentioned earlier, this represents our fifth consecutive quarter of sequentially improving adjusted free cash flow and underscores our continued momentum toward positive adjusted free cash flow our overall balance sheet remained in great shape with $101 million of assets, $28.4 million of liabilities and book value of $72.6 million or approximately $1.36 per share. We ended the quarter with total cash, cash equivalents and restricted cash of $38.2 million and no outstanding debt moving to our first quarter 2024 guidance, we expect revenue in the range of $11.5 million to $12.5 million and adjusted free cash flow in the range of $250,000to $1 million. We are excited to be guiding to positive adjusted free cash flow for the first time in the Company's history. This is a major milestone for curiosity stream.

轉向盈利。調整後 EBITDA 損失為 340 萬美元，其計算結果不包括我之前討論過的 80 萬美元重組費用，而去年同期調整後 EBITDA 損失為 1,360 萬美元。本季調整後自由現金流使用量為 240 萬美元，年增 640 萬美元。正如我們之前提到的，這代表我們連續第五個季度調整後自由現金流連續改善，並強調了我們朝著調整後自由現金流為正值的持續勢頭，我們的整體資產負債表保持良好狀態，資產為1.01 億美元，負債為2,840 萬美元，帳面價值為7,260 萬美元或每股約 1.36 美元。截至本季末，我們的現金、現金等價物和限制性現金總額為3,820 萬美元，沒有未償還債務，符合我們2024 年第一季的指導，我們預計收入在1,150 萬美元至1,250 萬美元範圍內，調整後的自由現金流在25 萬美元範圍內至 100 萬美元。我們很高興能夠在公司歷史上首次實現正調整自由現金流。這是好奇心流的一個重要里程碑。

Additionally, as Clint mentioned, given our expectations regarding cash flow in the first quarter and for the balance of the year, our Board of Directors has decided to return capital to our shareholders in the form of cash dividends. Specifically, they have declared that a dividend of $0.025 per share will be paid quarterly to our shareholders. The first dividend will be paid on April 30, 2024, to holders as of the close of business on April 12, 2024.

此外，正如克林特所提到的，考慮到我們對第一季和今年餘下現金流的預期，我們的董事會決定以現金股利的形式向股東返還資本。具體來說，他們宣布每季向我們的股東支付每股 0.025 美元的股息。第一次股利將於2024年4月30日支付給截至2024年4月12日營業結束時的持有人。

Finally, I wanted to give an update on the notice that we received from NASDAQ. Just yesterday, we received written notification from the Listing Qualifications department of NASDAQ, granting our request for a 180 day extension to regain compliance with the minimum bid price rule. We now have until September 16, 2024, to meet the requirement to regain compliance. The closing bid price of our common stock must meet or exceed $1 per share for a minimum of 10 consecutive business days during this 180 day period.

最後，我想介紹一下我們從納斯達克收到的通知的最新情況。就在昨天，我們收到了納斯達克上市資格部門的書面通知，批准了我們延期180天的請求，以重新遵守最低買入價規則。我們現在必須在 2024 年 9 月 16 日之前滿足重新合規的要求。在這 180 天期間，我們普通股的收盤價必須至少連續 10 個工作天達到或超過每股 1 美元。

With that, operator, let's open the call to questions.

那麼，接線員，讓我們開始提問。

If you would like to ask a question, press star followed by the number one on your telephone keypad. Your first question comes from the line of Laura Martin with Needham. Your line is open.

如果您想提問，請按星號，然後按電話鍵盤上的數字 1。你的第一個問題來自勞拉馬丁和李約瑟的對話。您的線路已開通。

And can you hear me okay.

你聽得到我說話嗎？

Began.

開始了。

Yes.

是的。

Fantastic. So I wanted to go back to Asia and said you're doing Asia in renewables. And can you tell us about the terms of those either getting better or worse against anyone of the charters of the renewable fleet?

極好的。所以我想回到亞洲並說你們正在亞洲的可再生能源領域開展工作。您能否告訴我們，相對於再生船隊的任何包租條款，這些條款要么變得更好，要么變得更糟？

Yes, that so the agreement that I was referencing in Asia is with a telecom provider and that was a new deal, Laurent. So we don't have a massive third-party platform presence in Asia, but this is a nice way for us to get into the territory and then we can talk about this later, but we did it. We did a few new deals there in the first quarter of 2024 as well. So perhaps I can add little opportunity for us.

是的，我在亞洲提到的協議是與一家電信提供商簽訂的，這是一項新協議，勞倫特。因此，我們在亞洲沒有大量的第三方平台，但這對我們來說是進入該地區的好方法，然後我們可以稍後再討論這個問題，但我們做到了。2024 年第一季我們也在那裡達成了幾筆新交易。所以也許我可以為我們增加一些機會。

Yes, sorry for that as you renew anything in the year.

是的，很抱歉，因為您在這一年中更新了任何內容。

Yes, so in the in the EU we had the we do have we do have one significant renewal coming up in third quarter of this year. But what I was referring to there were actually that new agreements leading to new rollouts, which will which we've not we've not announced today, but we will shortly.

是的，所以在歐盟，我們確實有，我們確實有一個重大的更新即將在今年第三季進行。但我指的是實際上是新的協議導致了新的推出，我們今天還沒有宣布，但我們很快就會宣布。

Okay, great. I'm wondering on my second question is on the M&A market. You know we filed with Apollo bid above and beyond related to that Paramount studio, could you talk about what do you think is going on in the M&A market and whether you think like anybody can exit in the market? Or is our is that attraction of smaller streaming companies are becoming more difficult?

好的，太好了。我想知道我的第二個問題是關於併購市場的。您知道我們向阿波羅提出的出價高於與派拉蒙工作室相關的價格，您能否談談您認為併購市場正在發生什麼以及您是否認為任何人都可以退出市場？或者說，小型串流媒體公司的吸引力正變得越來越困難？

Yes, I think though, without a doubt, it's more difficult and especially for subscale streamers. I mean, look depends on depends on where you draw that line. But I would say we have some really unique advantages there. I mean, you know, Laura. That said, there's been a lot of services over the last four or five years that are either subscale or part of a larger company that have just gone completely away with drama, fever, film struck C, so Bruce duty, et cetera, like these were real services for a while. And so I think that one of the things that is unique about us and that we're really excited about is that we have we have real cash. We have increasing cash. We've taken the hard steps over the last 12 months, really to turn the ship and put us put us into positive territory. And so I think M&A is tough right now for a lot of people. I think, though that what we're focused on so on and allocating our cash toward the business toward the toward the dividend. Obviously, I think that they're going to be there's going to be they're going to be certainly many companies that that have that have real challenges. Now I will say that through our smart bundle, which includes six other services in addition to two curiosity streams, we have conversations with a lot of the smaller streaming companies that you've referenced, even some even some larger ones. And so for a lot of these for a lot of these guys, it's your growth is growth is tough. And I do think that it will be will certainly be challenging over the next year over the next 18 months. And that's why we like the fact that we have a unique and really sustainable cost base, we're not competing for costly sports or Game of Thrones or the Hobbit or hours of programming that are tens of millions of dollars per hour. I mean, I will say I'm just kind of close with this, like in this macro environment where consumer confidence is shaky where individual spending is more disciplined. We're on track to have our best month of subscriber reactivations in over two years. And that's not because consumers are jumping into watch Dexter or Love Island doors, a single seasonal series. Rather, it's a testament to quality to value into premium evergreen content with global appeal. So thank you for that question, Laura.

是的，我認為，毫無疑問，這更困難，尤其是對於小規模的串流媒體。我的意思是，外觀取決於你劃線的位置。但我想說我們在那裡有一些非常獨特的優勢。我的意思是，你知道，蘿拉。也就是說，在過去的四五年裡，有很多服務要么是小規模的，要么是大公司的一部分，這些服務剛剛完全消失了，戲劇、發燒、電影擊中了C，所以布魯斯職責等等，就像這些有一段時間是真正的服務。因此，我認為我們的獨特之處之一是我們擁有真正的現金，這讓我們非常興奮。我們的現金不斷增加。在過去的 12 個月裡，我們採取了艱難的步驟，真正扭轉局面，讓我們進入積極的境地。所以我認為現在併購對很多人來說都很困難。我認為，儘管如此，我們的重點還是將現金分配給業務和股息。顯然，我認為他們將會在那裡，他們肯定會是許多面臨真正挑戰的公司。現在我要說的是，透過我們的智慧捆綁包（除了兩個好奇流之外還包括其他六項服務），我們與您提到的許多小型串流媒體公司進行了對話，甚至有些甚至是一些較大的公​​司。因此，對許多人來說，成長是艱難的。我確實認為，在接下來的 18 個月裡，明年肯定會充滿挑戰。這就是為什麼我們喜歡這樣一個事實，即我們擁有獨特且真正可持續的成本基礎，我們不是在爭奪昂貴的體育賽事、《權力的遊戲》、《哈比人》或每小時數千萬美元的節目時間。我的意思是，我會說我對此很接近，就像在這個宏觀環境中，消費者信心不穩定，個人支出更加自律。我們預計將迎來兩年多來訂閱者重新啟動量最好的一個月。這並不是因為消費者熱衷於觀賞《Dexter》或《愛情島之門》這些單一的季節性系列。相反，它證明了具有全球吸引力的優質常青內容的品質和價值。謝謝你提出這個問題，蘿拉。

Sure. And then, Tina, my last question is for you. You're guiding to adjusted free cash flow at $250,000 to $1 million in Q1. Can you remind us how much was severance lower the free cash flow in the first quarter, you said a lot of the assets we have.

當然。然後，蒂娜，我的最後一個問題是問你的。您預計第一季調整後的自由現金流為 25 萬至 100 萬美元。您能否提醒我們，遣散費使第一季的自由現金流降低了多少，您提到了我們擁有的許多資產。

Yes. So severances actually added back in the calculation of adjusted free cash flow so that that would be effectively excluded in the calculation of that number.

是的。因此，遣散費實際上在調整後的自由現金流的計算中加了回來，這樣就可以有效地將其排除在該數字的計算中。

We are piling up on asking about the lumber process.

我們不斷詢問有關木材加工的問題。

Yes.

是的。

So the total the total severance will be about on the order of $350,000 or so.

因此，遣散費總額約為 35 萬美元左右。

Yes, so slightly higher than that, but somewhere in that order of magnitude.

是的，比這個稍微高一點，但在這個數量級的某個地方。

So that's exactly what I wanted to know. Thanks, guys.

這正是我想知道的。多謝你們。

Yep. Thank you, Laura.

是的。謝謝你，勞拉。

Again, if you would like to ask a question, press star followed by the number one on your telephone keypad. And your next question comes from the line of Jim Goss with Barrington. Your line is open.

同樣，如果您想提問，請按星號，然後按電話鍵盤上的數字 1。你的下一個問題來自吉姆·高斯和巴靈頓的對話。您的線路已開通。

Thank you. I was wondering, will the relationships, domestic relationships with the Tubi Zuma Roku? Are they all pretty similar and are they largely FastChannel driven?

謝謝。我想知道，與 Tubi Zuma Roku 的關係、家庭關係嗎？它們都非常相似嗎？它們主要是 FastChannel 驅動的嗎？

Yes, that's (multiple speakers) yes, great question, Jim, thank you for asking for most of them. But the business model is the same. I mean, it's a it's a typically a rev share model with the larger distributors where the rev share from the platform to the partner might be anywhere from 40% to 60% as it relates to FAST channels. We do have we do have our curiosity stream flagship FastChannel today that we recently launched with a few distributors in the U.S. And then more recently with them in EU. And then obviously, we're in and we're in a lot of conversations there. And so in light of all of the content that we have, we're trying to do the right deals as it relates to fast. And so what that concludes, sometimes, Jim, is it's deeper partnerships with either the platform leaders like you mentioned, or even category leaders in the space. And so we're in the process of being in all those conversations, but are really encouraged and excited about the opportunity to put. It's so much of our content to work on those platforms that heretofore has not been put to work.

是的，這是（多個發言者）是的，很好的問題，吉姆，感謝您提出其中的大部分問題。但商業模式是一樣的。我的意思是，這是一種典型的與較大分銷商的收益共享模型，其中從平台到合作夥伴的收益共享可能在 40% 到 60% 之間，因為它與 FAST 管道相關。我們今天確實有我們的好奇心流旗艦產品 FastChannel，我們最近與美國的一些分銷商一起推出了它，最近又與他們在歐盟推出了它。顯然，我們在那裡進行了很多對話。因此，根據我們擁有的所有內容，我們正在努力做出與快速相關的正確交易。因此，吉姆，有時得出的結論是，它與您提到的平台領導者，甚至該領域的類別領導者建立了更深入的合作關係。因此，我們正在參與所有這些對話，但對這個機會感到非常鼓舞和興奮。我們有很多內容要在這些平台上工作，但迄今為止尚未投入使用。

So those are also the primary candidates for year subscription services that correct.

因此，這些也是正確的年度訂閱服務的主要候選人。

As well, they are at their place for us to promote to our subscription services. But in the case of like a Zoom or a 2B or Pluto or Roku, or those guys are Roku. Yes, good example. I mean, with Roku. We have a we have a nice holistic relationship where they offer our apps. They offer that curiosity stream in their channel store and they offer our Avon package for a certain amount of our Avon package. And the nice thing about that with Roku, where the subscription offering is if we're if we're showing a series like The history of Wall Street and you watch the first two episodes, but then you want to watch the third. Roku does a great job of upselling people to a hub to a monthly subscription. The curiosity stream in that case so.

同樣，它們也適合我們推廣我們的訂閱服務。但如果是 Zoom、2B、Pluto 或 Roku，或者這些人就是 Roku。是的，很好的例子。我的意思是，和 Roku 一起。我們擁有良好的整體關係，他們為我們提供應用程式。他們在他們的渠道商店中提供好奇心流，並且他們以一定數量的雅芳套餐提供我們的雅芳套餐。Roku 的一個好處是，如果我們正在播放像《華爾街的歷史》這樣的連續劇，並且您觀看了前兩集，但隨後您想觀看第三集，那麼 Roku 就會提供訂閱服務。Roku 在向中心推銷每月訂閱方面做得非常出色。好奇心在這種情況下如此流動。

So yes, in the case of Roku, exactly as you described, you also talked about the critical mass with your library, which I think you have gotten to over the past year or more. And I'm wondering as they may have asked some of this before, but in terms of using that library and maybe keeping it fresh but making sure you take advantage of that critical mass and library.

所以，是的，就 Roku 而言，正如您所描述的那樣，您還談到了您的圖書館的臨界質量，我認為您在過去一年或更長時間裡已經達到了這一點。我想知道他們以前可能問過其中的一些問題，但在使用該庫方面，也許保持它的新鮮度，但確保你利用了臨界質量和庫。

Could you describe that process right now and like that, are you carving out like a quarter of it for Kaizen or something of that nature? How exactly are you working on.

現在您可以描述一下這個過程嗎？您是否為 Kaizen 或類似性質的東西雕刻了四分之一？你具體工作得怎麼樣了。

Yes, it's a great question. And so and if you came to just curiosity stream today and tried to go through and watch all of our 4,500 to 5,000 titles that we have there that protect you a few years. So it's sort of like for new customers, especially it's almost like premiere night every night on curiosity stream. So we're trying to do a great job of resurfacing the best content and serving up the right personalized genres to the right subscribers. At same time we have on our shelf right now that we have over 700 titles that we haven't even published yet. So I think I alluded to it in. I think my last answer, but I can't emphasize enough that we have a really unique cost base, and we have kind of a unique and extensive approach to amassing content. So we can actually continue to build that to build our library. And the nice thing today is we have multiple products to push out that to push that content through. And you know, as I mentioned in my script, as the translation services become less expensive and hopefully catalyzed by AI, we have an opportunity to put content in language all throughout the world, whereas we're 175 countries today, but I'm not in but not 175 different languages in our intent. So we have a we have a high volume of content. We're generating a lot more reliability and predictability around what that content will yield when we deploy it on different platforms that I also want to spend. We're on 114 different third-party platforms today with our content and growing. So we're really excited about the opportunity in front of us.

是的，這是一個很好的問題。因此，如果您今天出於好奇來到直播並嘗試瀏覽並觀看我們擁有的所有 4,500 到 5,000 部影片，這些影片可以保護您幾年。所以這對新客戶來說有點像，尤其是幾乎就像好奇心流上每晚的首映之夜。因此，我們正在努力重新呈現最好的內容，並向合適的訂閱者提供合適的個人化類型。同時，我們的書架上現在還有 700 多種尚未出版的書籍。所以我想我在裡面提到過它。我想我的最後一個答案，但我不能足夠強調我們有一個真正獨特的成本基礎，並且我們有一種獨特而廣泛的方法來累積內容。所以我們實際上可以繼續建立它來建立我們的庫。今天的好事是我們有多種產品可以推出來推動內容。你知道，正如我在腳本中提到的，隨著翻譯服務變得越來越便宜，並且希望在人工智慧的推動下，我們有機會將內容翻譯成世界各地的語言，儘管我們今天有175 個國家，但我我們的意圖不是使用 175 種不同的語言。所以我們有大量的內容。當我們將內容部署在我也想花費的不同平台上時，我們會產生更多的可靠性和可預測性。如今，我們的內容已出現在 114 個不同的第三方平台上，並且還在持續成長中。因此，我們對擺在我們面前的機會感到非常興奮。

Okay, unless they're the global relationships pretty similar to the domestic relationships? And are you able to grow those global relationships with the same content the way you're describing with a eye dictated to embellishment in additional languages?

好吧，除非全球關係與國內關係非常相似？您是否能夠以相同的內容來發展這些全球關係，就像您用其他語言進行修飾所描述的方式一樣？

Yes. So we've not we've not used it just to be clear, like we've not put into commercial broadcast NAI. translated content. However, we do think that that's close. And obviously, we're open working on that. We're working with different partners on that to on a daily basis. But yes, we have global rights to a lot of our content. And a lot of it is, you know, it's just it's broadly appealing because it's in the factual genres. It's in science, it's animals, it's motors, it's crime, it's adventure. It's kids, it's a living and those categories just translate well, there's not you're not hampered by colloquial lessons that you might experience with procedural dramas in the U. S or something like that. So yes, the content travels well, and you know, you just say, okay, I think we've sort of underestimated the platform opportunities available to us going forward. We're looking to do whatever we can to enter into great partnerships and help our partners make money and obviously grow our business as well.

是的。所以我們沒有使用它只是為了清楚起見，就像我們沒有將 NAI 投入商業廣播一樣。翻譯的內容。然而，我們確實認為這已經很接近了。顯然，我們對此持開放態度。我們每天都在與不同的合作夥伴就此進行合作。但是，是的，我們對許多內容擁有全球權利。你知道，其中很多內容只是因為它屬於事實類型而具有廣泛的吸引力。這是科學、動物、引擎、犯罪、冒險。這是孩子，是謀生，這些類別翻譯得很好，但你不會受到口語課程的阻礙，就像你在美國的程序劇或類似的東西中可能遇到的那樣。所以，是的，內容傳播得很好，你知道，你只是說，好吧，我認為我們有點低估了我們未來可獲得的平台機會。我們希望盡一切努力建立良好的合作關係，幫助我們的合作夥伴賺錢，同時顯然也能發展我們的業務。

And thank you very much.

非常感謝你。

Thank you, Jim.

謝謝你，吉姆。

There are no further questions at this time. And thank you for your interest and participation. This concludes today's call. You may now disconnect.

目前沒有其他問題。感謝您的關注與參與。今天的電話會議到此結束。您現在可以斷開連線。