Cinedigm Corp

Good day, ladies and gentlemen. Today, we are hosting a conference call to discuss Synodyne's fiscal 2023 third quarter results. My name is Bethany, and I will be your conference operator. Currently, 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 participants can press star followed by the number one and identify themselves before to ask a question. If anyone needs operator help, Press star zero. Please note that this call is being recorded. Your host for today is Gary Lofredo, COO and General Counsel. Please go ahead.

Good afternoon, everyone, and welcome to Synodyne's Fiscal 2023 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. The company's periodic reports that are filed with the SEC describe potential risks and uncertainties that can cause the company's business and financial results to differ materially from these forward-looking statements. All of the information discussed on this call is, as of today, February 14th, and Synonym undertakes no duty to update it. In addition, certain financial information presented in this call represent non-GAAP financial measures, and we encourage you to read our disclosures and the reconciliation tables to applicable GAAP measures in our earnings release carefully as you consider these metrics. I'm Gary LaFretto, Chief Operating Officer in General Counsel of Synodine. With me today are Chris McGurk, Chairman and Chief Executive Officer, John Canning, Chief Financial Officer, Yolanda Macias, Chief Content Officer, Eric Opica, Chief Strategy Officer and President of Synanime Networks, Tony Wiador, Chief Technology and Product Officer, and Mark Lindsay, Executive Vice President, Finance and Accounting, all of whom will be available for questions following the prepared remarks. I will now turn the call over to Chris McGurk to begin.

Thanks, Gary. welcome everyone and thanks for joining us on the call today obviously we had a great quarter as our financial results exceeded our internal expectations and those of the analysts that follow us by an extremely wide margin on both the top and bottom lines with total revenues up 98 net income up 1139 to 4.9 million dollars and eps of three cents per share and all of our key operating metrics grew dramatically once again this quarter across all of our business lines. Rather than dwell on great performance where the numbers clearly speak for themselves, I'd first like to start out by stating how proud I am of the Cinedigm team, which continues to deliver outstanding record results across all sectors of our business quarter after quarter, and to also thank our investors for standing with us in a challenging equity market. While so many other companies in the streaming and entertainment business are struggling to figure out the best path forward as they try to reconcile years of record-breaking spending on content and marketing and an over-reliance on the paid subscription model, Synodyme continues to demonstrate how a streaming content company can develop and execute a business plan that works successfully in real time today. Because of sound and reasonable business principles, like diversification, portfolio management, and a sensible content and marketing spending practice. Part of our success is, of course, by virtue of our company not trying to be everything to everybody. We've become experts in our sector of the streaming business, that is, serving passionate fans across popular and specific enthusiast genres better than anybody else. One example of this success is in our approach to horror. category that continues driving some of the most exciting success stories, not only for our company, but in all of Hollywood. City9 is in a truly unique position in the streaming industry, having built upon our strong momentum to wrap a profitable third quarter with triple-digit growth in net income and adjusted EBITDA as we continue towards our goal of sustained long-term annual profitability and positive cash flow. All units of our company contributed to our successful quarter, which speaks to the value of our differentiated revenue streams across content licensing, our portfolio of channels, which are made up of a strategic mix of third-party and owned and operated networks, and they span SVOD, AVOD, and FAST, our library of 60,000 films and TV episodes, our resurgent theatrical release business, and our proprietary programs. state-of-the-art MatchPoint technology. Diversification and a portfolio strategy is a business 101 concept drilled into MBA's heads their first day in class. Synodyme is implementing that strategy to great success, all of it within the streaming content business, the fastest growing segment in the entertainment industry. While many of our one channel, one line of revenue, heavy spending, non-diversified streaming competitors are struggling. As I mentioned, our total revenue is up 98%, including our 11th straight quarter of record advertising revenue growth, up 79% over the prior year quarter, and up 258% on a two-year basis. We were on the free ad-supported streaming television, or FAST, train before many in the industry. And with new senior sales executives added to our Synanime Ad Solutions team, we remain very bullish on this part of our business. We also grew our subscription streaming revenue 38% versus last year's third quarter and nearly tripled revenue from two years ago. We now have 1.22 million subscribers across our portfolio of streaming brands, up 28% from third quarter last year. StreamBox, which we acquired two years ago this month, has become the fastest growing horror streaming service in the business, with subscriptions increasing 900% over that time. In fact, in the two weeks following our exclusive streaming release of instant cult classic slasher film Terrifier 2, Screenbox subscribers grew 144%. And what can I say about Terrifier 2? It was a late 2022 theatrical box office phenomenon. It performed incredibly well on transactional VOD and streaming, and consumer product versions of the title are flying off the shelves. The fact of the matter is that the smart and talented Bloody Disgusting team, which operates Screenbox and curates our horror vertical, worked closely with our content team to identify a breakout film and a breakout creator in the incredible Damien Leung that was very much worth investing in. We not only trusted their expertise, but we also leaned in to support the release with a cost-effective viral marketing strategy. And boy, did it pay off. We have much more to come on the horror side with last week's limited theatrical release and upcoming screen box exclusive of the critically acclaimed clown footage film, The Outlanders, which Slashfilm and others said rightfully feels like this generation's Blair Witch Project. Also, we have the recently announced acquisition of Hollywood dreams and nightmares, the Robert Englund story, and many other films and series on the horizon. And we are also mirroring this strategy with other genres for which we have a proven expertise, including family, anime, and Asian films. John will cover our financial results in more detail, and Eric will delve into our rapidly increasing operating metrics and the continued early success of the important business initiatives that are key parts of our plan to continue our high growth while achieving sustainable profitability on an annual ongoing basis starting with next fiscal year. These include Centiverse, which we believe will become the Spotify of independent streaming video content, our proprietary Matchpoint technology platform, our growing advertising unit, and our expanding podcast business. I also want to point out that as our business is scaled, and players in the industry have taken notice of our operating and technological capabilities, the scope of our discussions with potential strategic partners for operating partnerships, investments, and M&A has rapidly expanded. Look for more announcements in that regard in the coming months. And in addition, our balance sheet remains in a very, very strong position right now, and we currently see no need to raise additional capital at this point. With that, let me turn it over to John for a more detailed review of our financial results.

Thank you, Chris, and good afternoon, everybody. I'll touch on a few third quarter highlights, then I'll update you on our outlook for the year. While we've previously laid out our aggressive year-over-year revenue growth and sustainable profitability expectations annually, we continue to stand by our intention to achieve those objectives and are making great progress on all fronts. Our key third quarter financial results for the quarter ended December 31st, 2022 include consolidated revenue of $27.9 million compared to $14.1 million in the prior year quarter, an increase of 98%. Total streaming revenue increased 63% to $8.9 million, driven by another increase in record ad-supported revenue of 79% and a 38% increase in subscription revenue over the prior year quarter. Eric will get into the drivers for these increases in his comments. Overall, content and entertainment revenue grew by 72% over the prior year quarter. This was driven by organic user growth, new film performance, as Chris mentioned, increasing market demand for Cinedyne's extensive connected television ad inventory, and the launch of new streaming channels versus the prior year. Similar to last quarter, in Q3, Synodyne once again delivered total revenue and all component revenues which exceed our own internal growth plans for the quarter. Our adjusted EBITDA was $5.1 million in the current year quarter compared to adjusted EBITDA of $1.3 million in the prior year quarter. Driven by the phenomenal success of TerraFire 2 across multiple revenue streams, as Chris mentioned, our streaming content growth and further decreases in the scale of our digital cinema business as it nears its end of life. Net income was $4.9 million or three cents per share compared to a net loss of one half a million dollars or zero cents per share in the prior year quarter. This was also driven by the success of Terrifier 2 and our streaming expansion, as well as the recognition of other income under the CARES Act and variable consideration attributable to the digital cinema business winding down. Our balance sheet remains very strong, as Chris said, with just under $9 million in cash, and our only debt is a small revolving working capital facility we just took last fall to provide additional dry powder for key content acquisitions, like the aforementioned tarifier, too. As previously mentioned, we expect to generate substantial full-year total revenue growth for the company this fiscal year versus last. So far this year, total year-to-date revenue has increased by 42% over the same period last year, despite a shrinking contribution from digital cinema. Looking closer, when digital cinema results are excluded from year-to-date revenue in both periods, our revenue growth is 60%, which exceeds our long-term growth goals of our streaming business alone. Our M&A-driven synergistic expectations, top line and bottom line, and streamlining initiatives are already starting to produce benefits. As both Chris and I have stated previously, we've made significant progress toward a goal of achieving $7.5 million in annual cost savings through operating cost improvements, outsourcing, and application of our MatchPoint technology as we finalize the integration of the seven acquisitions we made in the past two years. We remain confident that we will achieve our goal in the coming months. With that, I'll hand off to Eric.

Thanks, John, and thanks to everyone for joining the call today. First, I'm going to discuss our top-line streaming business results, and then after that, I'm going to discuss Cineverse mission and strategy in detail. So first, total streaming minutes in the quarter rose to approximately $2.14 billion, up 60% over the prior year quarter. This was heavily driven by the continued expansion of our streaming services onto new connected TV platforms like Samsung, LG, and others, and the expansion of our overall subscriber base and user base. as well as the impact from popular originals and acquired premium library titles. This consumption surge drove a substantial increase in audience. Synonym's total ad-supported streaming audience, including web, mobile, social, and connected TV, increased to approximately 82.9 million average monthly viewers, up 151% over the prior year quarter. Total subscribers to the company's subscription video streaming service has increased to approximately 122 million, I'm sorry, 1.22 million, representing an increase of 28% over the prior year quarter. This was driven by considerable growth in subscribers at the three flagship owned and operating streaming services, Screenbox, Fandor, as well as the Dove Channel. Additionally, our podcast business continues to flourish with nearly 74 million cumulative downloads to date across 28 shows. We've become a major player in the new and emerging scripted podcast category, with our show, the Mayfair Watchers Society, picked up by Apple as a top podcast for 2022, and we had five shows on Spotify's top 50 fiction charts. We continue to scale this business with the forthcoming international language launches of key shows, our partnership with the George Romero Foundation on a new Living Dead property, and much more to come. We also made considerable progress on the technology side, having relaunched Fan Door and Screen Box onto version two of Match Point, our proprietary streaming platform. We also announced our partnership with Row 8 during the quarter, and I'm happy to announce the product is now officially live, bringing thousands of high-quality Hollywood recent theatrical releases and premium catalog titles to Cineverse. In addition to utilizing Match Point as the means to expand our own distribution footprint, we continue to work on making Match Point available to select partners on a license basis. We see tremendous interest and demand in this area from other content owners and channel operators who are struggling with the challenges of effectively competing in this highly complex business. We will have more to share on this in the months ahead. And finally, we added multiple key hires in the quarter to bolster our Synodyme Advertising Solutions Unit. I'm happy to report we're already seeing considerable benefits and lift in our programmatic and direct businesses. Now, let me take some time to talk about the company's strategy and mission around Cineverse. Cineverse was born out of a simple idea to enable the discovery of the amazing diaspora of film and TV shows from around the world. With the top 10 streaming services accounting for just 3% of the movies and shows ever made, the vast majority of movies and TV shows are simply inaccessible to most people. Since I mentioned those statistics last quarter, Things have become decidedly worse at the major streamers. Major television shows are being removed without warning. Hyped and anticipated movies already completed are being shelved. Ultimately, millions of consumers are becoming increasingly frustrated as movies and shows vanish with no notice. Meanwhile, the big streamers are increasingly trying to squeeze more profits by imposing usage restrictions and rapidly raising monthly subscription prices. And with more cost cuts to come, this trend is only going to get worse. So do we want to entrust the world's collective film and television history and the blood, sweat, and tears of filmmakers to this environment and these gatekeepers? How will consumers ensure access to content they care about when day after day these shows become more inaccessible? What happens when the major streaming platforms decide that the transactional business is no longer in their strategic interest as we saw which happened with the music industry? Vast swaths of our collective cinematic heritage will be inaccessible for viewing. We feel there's clearly room in the world to provide an alternative ecosystem where movies and television series of all types and made by filmmakers from around the world are easily available, protected, and celebrated. An ecosystem where films, shows, and their creators are not treated as commodities and where people are looked at as unique audiences and communities, not just eyeballs. We're not looking to assert the major streamers. Instead, we aspire to make Cineverse a valuable part of the mix that sits alongside them as an important archive and discovery platform for film and television content. Spotify provides an interesting parallel with non-major label music now driving 25% of music consumption on that service and rising rapidly. This is because Spotify is very, very good at helping each listener discover the perfect music or playlist for them And that is what we're going to do with film and TV on Cineverse as well. We have a big mission in front of us, but we're excited about the challenge. And we're confident that we possess the technology to achieve this goal through our end-to-end MatchPoint distribution platform. Through the extensive use of AI and machine learning, MatchPoint has been designed to operate at significant scale, a scale that few others in the video streaming industry can compete with. MatchPoint allows us to easily ingest and deliver tens of thousands of movies and titles and television shows very efficiently and at extremely low cost. To put this in perspective, in January 2023, just last month, we delivered over 9,000 titles comprising 50,000 assets into the streaming ecosystem with our automation platform. So in context, we delivered about 2.3 times the total number of movies on Netflix or 7.2 times the number of movies on Hulu in one month. This is a level of operational scale and efficiency simply unheard of in the streaming industry and provides us a massive technological moat as we look to add hundreds of thousands of titles in the coming years. Despite Cineverse being in its infancy, you can see those advantages already bearing fruit. First, we have dramatically expanded our content library, now totaling close to 60,000 movies and shows. Bucking the industry trends, we're focused on rapidly making all these titles available to consumers and are adding thousands of titles per month to Cineverse and its sister streaming services and plan to add 4K and uncut versions of films for subscribers in the coming months. Speaking on those sister streaming services for a minute, we continue to focus on several key content verticals where we super serve audiences. If Cineverse is the sun, these are the Jupiter-sized audience that we believe could each become major businesses in and of themselves, the same way anime streaming service Crunchyroll is a billion-dollar business for Sony. Our horror service Screenbox has become one of those pillars for us, thanks to original programming like Terrifier 2, fan-favorite documentary Pennywise, A Story of It, the psychedelic festival favorite All Jacked Up and Full of Worms, the Belgian-French survival horror movie Deep Fear, among dozens of others. In addition, with The Outwaters, Living with Chucky, RoboDoc, The Robert Englund Story, and so much more on the way, we're very excited about the future in horror, not just in theaters, on transactional, and through ScreenBox, but across Bloody Custings editorial content, our podcast network, consumer products, and beyond. This philosophy of curation and our 360-degree approach to serving enthusiast fan bases is is being brought to our other channel brands and verticals, including Indie Film with Fandor, Family with the Dove Channel, Anime with Retro Crush, and Asian Content with Asian Crush. We also see an opportunity to establish ourselves and super serve other key verticals, such as the African American vertical, LGBTQ, and others. We're focused on pursuing and establishing partnerships with key brands in each of these areas. So to sum it up, Our strategy of both super serving enthusiast fan bases while also building the leading destination for the world's content are extremely compatible, and we believe not only to be great businesses, but an important mission that we can all be proud to be part of. With that, let me turn things over to the operator to take your questions.

Thank you. Ladies and gentlemen, I would like to remind everyone that to ask a question, Please press star then the number one on your telephone keypad. We will pause here for just a moment to compile the Q&A roster. Our first question comes from the line of Dan Kernos with Benchmark. Please go ahead.

Great. Thanks. Good afternoon. Obviously, congratulations, guys, on a terrifyingly good quarter. I have one first just on that, maybe for Chris and or Eric, whoever, both of you want to take this. Obviously, this film was a tremendous success. And I'm sure you guys are working on Terrifier 3 and whatever comes next. But you have all of the buzz. You've got some new films in the pipe. How do you go beyond that to sort of capitalize on the momentum there? Is it self-contained in the horror channel? Can you take some of the learning? Can you cross-pollinate? Just help us think through how you take what happened and kind of parlay that into sort of broader-based success across your other genres.

Well, just first, and this is Chris. Thanks, Dan, for the question. Just in the horror genre itself, the floodgates have opened in terms of the creative community now coming to us having seen how we took a little $250,000 movie and turned it into a top 10 theatrical and a blowout title in physical DVD and in TVOD and, of course, on Screenbox. So we've got a wealth of opportunities that we're looking at in terms of new content to continue to blow out that business going forward. And there are also some acquisition opportunities in the space as well that we're considering to sort of round out our horror um business um build it up and scale um and serve all horror audiences not just like a terrifier slasher audience but maybe more adult oriented uh i mean uh older skewing content in that space and more what's called elevated horror so we're doing that in the horror space and we learned a lot through the release of uh in terms of how we could identify properties that had great potential and then market them in an incredibly cost-effective way virally. And we think we have that very same capability in the family vertical that we have great capabilities and experience in, and the same thing with Asian content in anime. And we're evaluating content acquisition opportunities and also some M&A in those areas as well to build up our bulk, build up our content, and be able to take advantage of the machines that we built in each one of those arenas. So we're very confident that we can keep the momentum going in horror, and we're very, very confident that we're going to find a terrifier in the family business, the anime business, and the Asian business soon, uh, with an ultimate goal of increasing our subscribers and viewers on our channels, because that's where the sustainable profits come from. Um, you know, from, from our, uh, acquisition opportunities, uh, content acquisition opportunities in those verticals.

Got it. That's, that's helpful. And then just kind of thinking, I know this is really difficult, right? To kind of tease out Terrifier 2 from the quarter, um, especially since you certainly deserve the credit and screen by. I'm just wondering how you're thinking about sort of X-Terrifier, the fundamental momentum, if we could get some more color on that. Obviously, you gave some sort of qualifications around match point and, you know, some of the other things that are going on. But if you were to look sort of under the hood at sort of the other segments or genres, how would we be able to sort of point to the improvements that we're continuing to see from the momentum you've built there and, you know, beyond what you just said, Chris, are we, you know, looking to kind of round out sort of the family as we get closer to a much broader Centiverse launch?

Yeah, I think first I'll make the point that even if we took Terrifier 2 out of our results for the quarter, we still would have had a record quarter in streaming and in our content distribution business. So this quarter was about much more than Terrifier. I think another thing that I think is important that you recognize, we released Terrifier on October 6th, I believe, or around that time. We got a huge increase of subscribers to Screenbox. And now it's middle of February, and we've held all those subscribers, which we think is great news because, again, those are replicable profits each month, year in and year out, hopefully going forward. So I think you just look for our activity in the genres that I spoke about going forward. Right now we're evaluating a family film for theatrical release that we think could break out in theatrical. And we've got a couple of ideas in the Asian and anime arena. So I think you look for our content acquisition opportunity in those other arenas. as a sign that things are moving forward and then obviously the results following that. But I want to stress, we don't need a terrifier every quarter to continue to show great growth and hit our goal of sustainable profitability.

Yeah, got it. That's really helpful. And maybe, Eric, you called out bolstering the ad department. Obviously, the market's trying to find its general footing right now. for mixed bag and CTV, the publishers have called it sort of stabilized weakness, but your results have been pretty strong and pretty consistent. And you've not generally, I mean, yes, there are market pressures, but you've been seemingly a little bit more immune or less prone to some of those. So I'm just curious if you could expound a little bit upon sort of your ad force expansion and where you're targeting and how you're sort of thinking about direct versus programmatic expansion this year.

Sure. So, you know, just speaking generally on the broader ad market, you know, I think, you know, if we kind of look at and take the tenor and tone of conversations that I've been involved with and my team's been involved with, I think, you know, I think people probably overreacted at the end of this quarter broadly in the market. You know, everyone kind of hit pause in December We didn't really see much impact of that. But the big players well above us who are, you know, billion-dollar entities, you know, small amounts of downward pressure impacted them greatly. We're a much smaller and nimble player. You know, we can grow by gaining market share, by launching new channels, and those will have a very material impact on growth. So we're just at the beginning of our growth journey where the broader marketplace, while it has some impact on the existing business, we're bucking that trend. Early this year so far, I think just to give one anecdotal data point for this month, we're probably double digit outpacing the market in growth. So, I'm not concerned about our ability to maintain high growth rates, just given all the levers we have to pull that, you know, probably are not available to our much larger peers.

Thank you. Our next question comes from a line of Brian Kinslinger with Alliance Global Partners. Please go ahead.

Great. Thanks so much for taking my questions and great results, especially with Terrifier 2. I wanted to see if you could break down at all content and entertainment. Sometimes we get to see distribution versus OTT streaming and digital. And then while certainly one hit is not what you need, you made it clear to drive quarterly results. Can you help us understand the contribution from ticket sales, which aren't as recurring as other pieces of TerraFire, too, so that we can go forward, think about the business?

This is Chris. Can you hear me? Yeah. No. We have a policy that for any specific title, we're not going to reveal elements of the the revenue and profits that we got. I mean, we have participants and everything, and it's just not a standard practice to do that. But, you know, generally for an independent film in general, in the industry, um, you'll get about 40% of the box office and rentals, um, you know, which is a little bit lower than a bigger wide release film. Um, so you can just use that as a guide going forward. Okay.

And how about some quarters you guys have given distribution, physical distribution versus OTT streaming and digital. Can you share any details about the breakdown of that? I didn't get a chance to go through the entire queue.

I know just... Yeah, I think you'll find... You'll find that in the queue, correct, John?

Yep, it's all in there.

Okay. And then can you talk about... You've been clear that the Outwaters is going to be headed to streaming... What are the factors that indicate whether you take a movie to wide release versus keeping it as a limited release? Is it certain performance in those specific theaters? Just maybe kind of wondering if Outwaters had the chance to go to a more wide release.

Well, the Outwaters went out, I think, like on 110 screens. It did really well this weekend. But we just announced today that we're going exclusive on ScreenBox, I believe, this Friday. It'll stay in theaters, but we're not planning on expanding it. And there are a lot of reasons for that. But I think, first and foremost, with Terrifier, we really kind of had a franchise. We didn't know quite how it was going to perform theatrically, but there had been a Terrifier 1, which had become a real cult film and had a big following online and everything. That's why we took it out originally, I think, on 550 screens. Again, that was a movie that cost $250,000. And we spent probably less than $100,000 in viral marketing. And then with The Outlanders, that was a film that was produced for $15,000. A found footage film. And it didn't have sort of the built-in audience that we knew we had for Terrifier. So we thought what we would do is take it out on a lesser number of screens, probably not expand because you've got big titles like Ant-Man and others coming into the market and take it quickly to screen box after we created a great deal of awareness and buzz, uh, you know, online and on Twitter and TikTok and everything, uh, based on the fact that it's really kind of a extraordinary breakthrough experimental film. And that's exactly what what's happened. Um, And we also looked at the impact that Purifier had on Springboks subscribers, and we think that ought to be our main goal here with the outwaters. So that was kind of our thinking through the whole thing. So you'll see a mix going forward. You'll see a mix of release patterns going forward based on factors like that.

And it brings me to another question, as you Speak of Terrifier 2 and the impact on subscriptions, I think it's important, and I'm not sure if it's held, maybe you can talk about the churn or lack thereof of those that have come to Screenbox, become subscribers, probably to see the movie again. How good has the stick rate been? Has there been churn? Have they stayed with the subscription? Maybe talk about that.

Yeah, as I said to Dan, there's been minimal churn. And if Eric wants to expand on that, but they've stuck. And we've got a great lineup, we think, beyond the outwaters, as Eric described, of new titles to continue to refresh the channel. So we feel really good about the stickability as the subscribers have come on board. And we hope to continue to grow our subscriber base going forward. Eric, is there anything you want to comment on that?

Yeah. In any of these types of service where there's a high in-demand piece of content, you're always going to have people that sign up to watch the program and will cancel. That's the nature of the industry. But what we really look at are the rates that we find acceptable of that kind of practice. Terrifier, you know, just because of the high volume of original movies we had very close to following Terrifier's release, we had very, very strong take rates that exceeded our expectation, retention rates that exceeded our expectations. And, you know, the net result was, you know, a very, very, you know, six-digit, growth in subscribers on a service that, when we acquired it, had low five figures in subscribers. So that is a pretty impressive result that has really set Screenbox and the horror group as really being sort of our first breakout hit vertical. And I think it's provided a very strong template. We obviously will adjust this going forward to optimize it, But we were very pleased with how many subscribers stuck around.

Lastly, I'd be remiss in not commenting on cinema equipment, although it's not core. And I know we've been talking about it for a while. Winding down, it provided quite a lift in the December quarter. How do we think about that? And is there any visibility into the next few quarters on that business?

We'll be done with it at the end of the fiscal year, as we've said before. There shouldn't be any appreciable contribution after that point. But beyond that, I don't think it really impacted our comparability year over year because I think we did significantly more last year in the digital cinema business than this year. So I think that's all I want to say about it at this point. But we're going to be very happy when – We unhinge the last of that business next quarter, and then we'll finally be a streaming content and technology pure play, which has been just going through the roof now for three years, as you know.

Thank you. Our next question comes from the line of Terry Hackett with Hackett Management. Please go ahead.

Gentlemen, good afternoon, and it is a good afternoon. Gary, Chris, Eric, Tony, great job. Just a comment that I don't know if everybody understands what a great comeback story this is from four years ago, some very, very difficult days for you guys to say, hey, we've got to pivot, and we're going to pivot and become an aggregator, and then to effectuate on that has been a great, great story, and and along the way cleaning up that balance sheet. So, you know, well done is all I'm going to say, and keep it going.

Well, thank you. Thank you very much, Terry. And thanks for hanging in there with us over the last few years. And I think, you know, we all feel that, you know, as good as it's been for the last three years and what a great comeback it's been and how we built a business that's working now, the best is yet to come.

Thank you. Since there are no further questions, I would like to turn the conference back over to Chris Meeker for closing remarks.

Thanks, Operator. Thank you, everyone, for joining us today and for your interest in Synodon. Please follow up with Julie Milstead with questions you may have. You can reach her at InvestorRelations at Synodon.com. We look forward to speaking with you again when we report our fourth quarter results for the fiscal year 2023 in June.

This now concludes our conference call. You may now disconnect.