Cinedigm Corp

At this time, all participants are in a listen-only mode. We will have a question and answer session at the end of the call, at which time all participants wishing to ask a question will be instructed to press star, followed by the number one on your telephone keypad. If anyone needs operator assistance, please press star zero. Please limit yourself to one or two questions so that others may have a chance to ask questions too. You may re-enter the queue. Please note that this call is being recorded. Your host for today is Ms. Laura Kernan, Head of Investor Relations for Synodyne. Please go ahead when you are ready.

Thank you, Adam. Good afternoon, everyone, and welcome to Synodyme's fiscal 2022 third quarter results conference call. Before we begin, I would like to point out that certain statements made on today's call contain forward-looking statements. These statements are based on management's current expectations and are subject to risks, uncertainties, and assumptions. Potential risks and uncertainties that could cause the company's business and financial results to differ Materially from these forward-looking statements are described in the company's periodic reports filed with the SEC from time to time. All the information discussed on this call is as of today, February 15th, and Finitime undertakes no duty to update it. In addition, certain information presented on this call represents non-GAAP financial measures. With us today we have Chris McGurk, the Chairman and CEO, John Canning, CFO, Yolanda Macias, Chief Content Officer, Gary Lofredo, Chief Operating Officer, General Counsel and President, Eric Opica, Chief Strategy Officer and President of Cenedi Networks, and Tony Hudler, Chief Technology and Product Officer, all of whom will be available for questions following the prepared remarks. I will now turn the call over to Chris McGurk to begin.

Thank you, Laura. Welcome, everyone, and thanks for joining us on the call today. Clearly, we had great results this quarter on all fronts, and that's because, unlike many of the growth microcap and technology new media stocks we often get compared to, we are successfully executing on a strategic roadmap for sustained growth. We just posted record streaming revenues with our fourth quarter in a row of triple digit streaming revenue growth. And we saw huge acceleration in all our key performance metrics, including monthly viewers, subscribers, and total minutes viewed. We also have solid fundamentals, including a strong balance sheet with $20 million in cash and zero debt. And we have posted a net profit of $4.3 million year to date. And we are already seeing this strong streaming growth momentum carry forward into this January and February as well. We are achieving these outstanding results because we have a unique strategy to capture all the upsides of the rapidly growing streaming and media technology business. Unlike almost all the other players in this space, we are not dependent on a single revenue stream or a single streaming channel. Instead, we have a portfolio of multiple revenue streams from advertising, subscriptions, technology, and digital content. And we also have a robust portfolio of enthusiast streaming channels, more than two dozen, with extremely broad distribution across every major streaming platform. And our portfolio of streaming channels does not compete with the big general entertainment subscription services like Disney+, and Netflix, but instead is perfectly complementary to them on every distribution platform. This unique revenue and channel portfolio strategy in the streaming space is what is driving our rapid growth and why we are such a different and high potential business and investment proposition than anyone else, everyone else in the streaming and technology arena. Let me further underscore that point by going through some of the quarter's highlights. Our total consolidated revenues of $14.1 million this quarter were up 42% over the prior year and up almost 40% over the prior sequential quarter. Streaming revenues were a new record and up 104%, with ad-supported streaming revenues up 100% and subscription streaming revenues up 109%. And I know it's important to many of you that this quarter's revenues more than handily beat all the revenue estimates of all the analysts who follow our company. Our year-to-date consolidated revenues were $39.2 million, which was up 69% from last year, led by our streaming revenues, which increased by 133%. This was driven by a serving ad-supported streaming revenue business, which was up 171%, and also subscription streaming revenue, which was up 90% year-to-date versus the prior year. And it's very important to note that we achieved this huge overall streaming revenue growth against increasingly tougher comparisons as we grew strongly each quarter last year as well. Notwithstanding that, we have now grown streaming revenues in triple digits for four quarters in a row with record numbers in each quarter. Eric will expand further on the details and performance metrics of what's driving this massive growth in streaming percentage and why our unique strategy is working so well. Year to date, we've also generated positive adjusted EBITDA of $7.5 million and net income of $4.3 million or 3 cents per share. Again, our EPS this quarter of nil per share also very handily beat the estimates of all the analysts who follow our company. However, as I've said before on these calls, we are now in a rapid growth mode and continue to invest in accretive acquisitions more premium content, and technology enhancements to drive our streaming growth. So while we have been and will continue to invest behind smart, accretive growth opportunities, I also want to emphasize that our positive year-to-date net income combined with our zero balance sheet is another key attribute of Synodyne that clearly separates us from most of the other players in our space. Let me expand a little bit more on our investment activities for the roll-up acquisition, film and TV content, and technology initiatives that are fueling our triple-digit streaming growth. The streaming and technology acquisition asset roll-up strategy we have successfully executed over the last 14 months has resulted in significant accretive additions to our streaming channel and digital content portfolios. last month we announced an agreement to acquire digital media rights or dmr a new york-based streaming company with 10 streaming channels and 7 500 film and tv titles dmr has a particular focus on asian and anime titles and channels two of the hottest content categories in the world right now after of the DMR deal, which is dependent on the final stages of diligence. In a little over a year, we will have accretively added 15 streaming channels, more than 20,000 film and TV titles, and full ownership of our industry-leading Matchpoint streaming technology to our asset portfolio. Clearly, DMR is just the latest example of how key players in the media and technology space continue to be attracted by Synodyme's technology distribution muscle, content, scale, and public currency, and seek to be part of our rapid growth narrative. As far as film and TV content acquisitions are concerned, we continue to rapidly build our library of premium distribution rights through our acquisition roll-up strategy, the distribution deals we have in place with key suppliers like Allmark and the NFL, and new content licensing deals. We now have a film and TV library of approximately 40,000 titles with about 35,000 or 90% of those titles streaming assets. Those titles have a concentration in genres like family, indie film, action, and horror that clearly support our streaming channel portfolio and growth plans. This is one of the largest modern streaming content libraries in the world. And it's very important to note that we are not following the path of many of our competitors who are developing films and TV properties from scratch and taking on significant production risk. Instead, the vast majority of the content we acquire is finished product with very predictable market potential and, in the vast majority of cases, with acquisition deals that either require small advances or revenue-sharing deals with no upfront investment. Finally, at our core, we have always been an innovative, industry-leading technology company, and we continue to invest in our technology future. Our recent augmented reality, or AR, announcement with Unreal, our full acquisition of and enhancements to our state-of-the-art proprietary match point streaming technology, and the ramp-up of our engineering team at Synodyne India all underscore our commitment to be at the forefront of where media business innovation is heading, be it the metaverse, AR, NFTs, or streaming technology enhancements. Another extremely important factor, and one that I feel I do not emphasize enough, that sets us apart from other players in our space is our experienced executive teams. who all have deep industry knowledge and relationships with the capability to manage a much larger company. Finally, we believe with all the recent market volatility and impact on our sector that Synodyne presents a much more appealing investment opportunity than ever before. Let me quote Bill Ackman of Persian Square, who recently plowed a massive investment into Netflix to take advantage of an incredibly compelling bargain investment opportunity. Ackman stated, many of our best investments have emerged when other investors whose time horizons are short-term discard great companies at prices that look extraordinarily attractive when one has a long-term horizon. And he further pointed out, we are all in on streaming. We believe this thinking clearly could apply to Synanite, only with even more upside, as evidenced by our record results this quarter and year-to-date. And with that, I'll hand it over to John Canning. Then Eric Opica will speak more about our streaming strategy and results. Following that, we'll take your questions. And finally, I'll provide some closing remarks. John?