Streaming company Cineverse said it posted a smaller loss in its fiscal first quarter as cost-cutting moves took effect.
The quarterly net loss was $3.18 million, or 20 cents a share, compared to a loss of $3.64 million or 37 cents a share a year ago.
Revenues fell 30% to $9.1 million from $13 million a year ago
The company said it reduced selling, general and administrative costs by 17% or $1.3 million. That increased the company’s operating margin to 51% from 46% a year ago.
Converse also said its digital content library of approximately 66,000 titles was valued at $39.8 million, above the $2.6 million book library valuation as of June 30.
"This was a transition quarter for the company,” Chris McGurk said in a statement.
“Although we continue to enjoy the benefits of our cost streamlining initiatives and resultant higher operating margins, we did not yet begin to record the revenue upsides during the quarter from our new sales teams and new sales initiatives for our proprietary Matchpoint technology, AI-based products and omni-advertising programs, particularly direct ad sales,” McGurk said.
“We continue to build a robust sales pipeline in all those areas and fully expect to begin to record revenue upsides over the next few quarters as we close multiple deals already in the sales queue,” he said.
