SILVER SPRING, Md. - CuriosityStream Inc. (NASDAQ: CURI), a global provider of factual entertainment, has announced a new share repurchase program. The Board of Directors has authorized the buyback of up to $4 million of the company's common stock. The repurchases will be conducted through various means such as open market purchases and privately negotiated transactions, subject to market conditions and other factors.
The initiative does not require the company to repurchase a specific number of shares, and the timing of buybacks will be influenced by market and business conditions, including the stock price and the availability of alternative investment opportunities. CuriosityStream has not set an expiration date for the repurchase program, and it retains the flexibility to modify, suspend, or discontinue the program at any time.
The company plans to provide updates on the repurchase activity in its periodic reports filed with the Securities and Exchange Commission (SEC), as mandated by the rules of the Exchange Act.
CuriosityStream operates a suite of services that includes the flagship streaming service Curiosity Stream, available in over 175 countries, as well as other offerings such as a linear television channel, an educational platform, a free ad-supported channel, a content network for audio programming, and a studio for original productions.
This announcement includes forward-looking statements that involve certain risks and uncertainties, which may cause actual results to differ from those projected. The company cautions that these statements are based on current expectations and assumptions and are subject to factors such as changes in market conditions, legislative changes, competitive pressures, and the risks outlined in the company's SEC filings.
The information provided in this article is based on a press release statement from CuriosityStream Inc.
In other recent news, CuriosityStream has reported a strong Q1 with over $1 million in adjusted free cash flow, a $7 million increase from the previous year. The company is planning for growth, focusing on expanding its advertising platform and content licensing partnerships. CuriosityStream has also renegotiated PAY TV agreements to enhance cash flow and margins, and expects an increase in positive cash flow and sustainable revenues in the upcoming quarter.
Direct subscription revenue has grown both sequentially and year-over-year, and new pricing for US subscribers, to be implemented in June, is expected to contribute to revenue. Costs of revenue have been halved compared to Q1 2023, and G&A expenses have been reduced by 30%. The company ended the quarter with $39 million in cash and no debt.
For Q2, revenue is projected to be between $12 to $13 million, with adjusted free cash flow between $1.5 million to $2.5 million. Despite an adjusted EBITDA loss of $2.8 million, the company's cost-reduction strategies have successfully decreased expenses, contributing to the positive cash flow. These are the recent developments in CuriosityStream's financial health and strategic plans.
InvestingPro Insights
In light of CuriosityStream Inc.'s (NASDAQ: CURI) announcement regarding its new share repurchase program, keen investors might find the following insights from InvestingPro particularly illuminating. The company, with a market capitalization of $52.24 million, appears to be taking aggressive steps to manage its capital allocation effectively. One of the key InvestingPro Tips for CuriosityStream is its significant dividend yield, currently standing at an impressive 10.2%, which may attract income-focused investors, especially considering the recent ex-date for the last dividend was April 11, 2024.
Another aspect to consider is CuriosityStream's liquidity position. The company holds more cash than debt on its balance sheet, which is a strong indicator of financial health and may provide some reassurance to investors concerned about the company's ability to sustain its operations and finance its share repurchase program. Moreover, CuriosityStream's liquid assets exceed its short-term obligations, further underscoring the company's solid liquidity stance.
From a valuation perspective, CuriosityStream is trading at a low revenue valuation multiple, with a price/book ratio as of the last twelve months ending Q1 2024 of 0.78. This could suggest that the company's stock is undervalued relative to its book value, potentially offering an attractive entry point for value investors. Still, it is important to note that analysts are not expecting the company to be profitable this year, and the stock has experienced high price volatility, which may contribute to a riskier investment profile.
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