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Cineverse Q2 revenue jumps 110% on tech and media services

By Reuters News


Overview

  • US streaming tech firm's fiscal Q2 revenue rose 110% yr/yr, driven by tech and media services

  • Adjusted EBITDA turned positive for third straight quarter, up $5.4 mln yr/yr

  • Company reaffirmed fiscal 2027 guidance and highlighted $9 mln in annualized cost reductions


Outlook

  • Cineverse reaffirms FY 2027 revenue guidance of $115 mln to $120 mln

  • Company expects FY 2027 adjusted EBITDA of $10 mln to $20 mln

  • Technology revenue expected to represent more than 50% of total revenue in FY 2027


Result Drivers

  • ACQUISITIONS IMPACT - Co said revenue growth was largely driven by the acquisitions of IndiCue and Giant Worldwide, which expanded technology and media services streams

  • TECHNOLOGY REVENUE MIX - Technology and media services accounted for 55% of revenue, up from less than 5% a year ago, as the company consolidated offerings and integrated acquisitions

  • COST REDUCTIONS - SG&A expenses fell $1.3 mln yr/yr despite added overhead from acquisitions, mainly due to lower marketing and consulting costs and ongoing efficiency initiatives


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 Revenue

Beat

$25.96 mln

$24.31 mln (2 Analysts)

Q2 Net Income

$3.25 mln

Q2 Operating Expenses

$21.90 mln

Q2 Operating Income

$4.05 mln

Q2 Pretax Profit

$3.36 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the entertainment production peer group is "buy"

  • Wall Street's median 12-month price target for Cineverse Corp is $11.50, about 535.4% above its November 12 closing price of $1.81


Reuters Recommended Reads

  • Nov 10 - Dolphin Entertainment Q3 revenue rises 8.3% to record high

  • Nov 10 - CoreWeave Q3 revenue more than doubles, beats analyst estimates

  • Nov 12 - Figure Technology Solutions Q3 net revenue rises 84%, beats estimates


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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