On this page of StockholderLetter.com we present the latest annual shareholder letter from Cineverse Corp. — ticker symbol CNVS. Reading current and past CNVS letters to shareholders can bring important insights into the investment thesis.
Dear Fellow Shareholders, Our release of the horror film phenomenon Terrifier 3 shocked the film industry, landing at No. 1 at the theatrical box office and shattering multiple performance records. I am eager to share with you how we achieved our highest-grossing and ROI film to date, and why I believe we have never been in a better position to power the future of entertainment. After debuting in North American theaters at the top of the box office charts on October 11, Terrifier 3 has rolled on to become the highest-grossing non-rated film ever (topping previous record-holder Renaissance: A Film by Beyonc ), having amassed more than $50 million domestically. The latest installment of the horror franchise surpassed major studio and much higher-budgeted films and represents the greatest return on investment of the more than 500 films I have been involved in during my career. And to be candid, I never could have imagined that I would see Art the Clown ring the closing bell at Nasdaq, yet that s exactly what happened on October 31 Halloween, of course!
At Cineverse, we are on a mission to uplift storytellers and entertain fans with the power of technology. In an era of entertainment saturation, consumers are eager for visceral, communal and boundary-pushing cinematic experiences. We have the strategy in place to both identify content that will resonate with audiences and leverage our technology and advertising infrastructure to optimize reach and maximize revenue opportunities. Behind the success of Terrifier 3 is a playbook we plan to replicate across other films and genres, and one I believe will set us up for sustainable growth and profitability. Rather than spend big on a traditional marketing campaign, we super-served engaged audiences through promotion within our own network of streaming channels, websites, podcasts and social media. The result was dedicated fans showing up to the theater in droves to experience the horror phenomenon together. And we did all that with an out-of-pocket marketing spend that was well below a million dollars, a fraction of what the major studios and independents spend on wide-release films. Every major Hollywood film studio seeks to unlock passionate fandoms to sell their content. We provided a blueprint with Terrifier 3 using our own IP, and we plan to apply it to other genre releases where there is a demand for communal entertainment experiences, from horror to faith and family, anime and Asian cinema. This, of course, expands beyond theatrical and into home entertainment, streaming, audio, publishing, collectible physical products and more. Our 360-degree approach to super-serving key fandoms is core to our success, and we are excited about what s to come. I am confident that our larger Company strategy, along with the following key initiatives, have us strongly positioned to capitalize on our current momentum: cineSearch: Our AI-driven content search and discovery tool helps solve a major problem in current streaming habits figuring out what to watch. According to our partner Gracenote, a Nielsen company, we spend on average 10 minutes trying to decide what to stream, and 20% of us give up and do something else! cineSearch and chatbot Ava our AI video advisor simplify this process for fans, give streaming platforms and OEMs access to technology to help improve their user experience, and
provide an opportunity to bring new attention to stories from independent and diverse filmmakers. Cineverse Podcast Network: We continue to hold strong as a top-10 podcast network behind an expanded slate of hit shows in entertainment, horror, true crime and more, competing with industry giants like The New York Times and The Walt Disney Company. We are building out the network to include audio content for fans of even more genres and also leveraging it as a unique marketing tool for brands in several categories, including films like Terrifier 3, and movies from every major studio. Cineverse 360 Ad Platform: Since its launch earlier this year, our C360 audience network has generated an average of six figures in revenue and 20 billion CTV ad requests per month. Using C360 for Terrifier 3, we directly reached diverse and deeply targeted users and demographics at highly competitive rates thanks to the ad platform s vast reach and scalable solution. From programmatic to direct sales across CTV, FAST, audio, publishing and live experiences, we have built a powerful offering for advertisers. Underlying our extensive content offerings is our proprietary Matchpoint technology. Earning industry honors for innovation this year, Matchpoint provides a strong infrastructure for our growing portfolio of streaming channels and overall distribution model, offers partners a one-stop-shop SaaS solution, and establishes us as a next-generation studio that is powering a new era of entertainment. We are also using Matchpoint to generate additional AI-based products and solidify our position as a leading-edge innovator in entertainment technology. This has been a transformational year for the Company, one that would not have been possible without our dedicated team. Thank you to all of our employees for helping build Cineverse into the first stop for audiences seeking authentic and experiential content. Thank you also to our shareholders for your support and belief in our work. We continue to take important steps toward fulfilling our mission. Sincerely, Chris McGurk Chairman & CEO
 • shareholder letter icon 11/20/2024 Letter Continued (Full PDF)
 • stockholder letter icon 10/27/2023 CNVS Stockholder Letter
 • stockholder letter icon More "Entertainment" Category Stockholder Letters
 • Benford's Law Stocks icon CNVS Benford's Law Stock Score = 65


CNVS Shareholder/Stockholder Letter Transcript:

Dear Fellow Shareholders,
Our release of the horror film phenomenon Terrifier 3 shocked the film industry, landing at No. 1
at the theatrical box office and shattering multiple performance records. I am eager to share with
you how we achieved our highest-grossing and ROI film to date, and why I believe we have
never been in a better position to power the future of entertainment.
After debuting in North American theaters at the top of the box office charts on October 11,
Terrifier 3 has rolled on to become the highest-grossing non-rated film ever (topping previous
record-holder Renaissance: A Film by Beyonc  ), having amassed more than $50 million
domestically. The latest installment of the horror franchise surpassed major studio and much
higher-budgeted films and represents the greatest return on investment of the more than 500
films I have been involved in during my career.
And to be candid, I never could have imagined that I would see Art the Clown ring the closing
bell at Nasdaq, yet that   s exactly what happened on October 31     Halloween, of course!

At Cineverse, we are on a mission to uplift storytellers and entertain fans with the power of
technology. In an era of entertainment saturation, consumers are eager for visceral, communal
and boundary-pushing cinematic experiences. We have the strategy in place to both identify
content that will resonate with audiences and leverage our technology and advertising
infrastructure to optimize reach and maximize revenue opportunities.
Behind the success of Terrifier 3 is a playbook we plan to replicate across other films and
genres, and one I believe will set us up for sustainable growth and profitability. Rather than
spend big on a traditional marketing campaign, we super-served engaged audiences through
promotion within our own network of streaming channels, websites, podcasts and social media.
The result was dedicated fans showing up to the theater in droves to experience the horror
phenomenon together. And we did all that with an out-of-pocket marketing spend that was well
below a million dollars, a fraction of what the major studios and independents spend on
wide-release films.
Every major Hollywood film studio seeks to unlock passionate fandoms to sell their content. We
provided a blueprint with Terrifier 3 using our own IP, and we plan to apply it to other genre
releases where there is a demand for communal entertainment experiences, from horror to faith
and family, anime and Asian cinema. This, of course, expands beyond theatrical and into home
entertainment, streaming, audio, publishing, collectible physical products and more.
Our 360-degree approach to super-serving key fandoms is core to our success, and we are
excited about what   s to come.
I am confident that our larger Company strategy, along with the following key initiatives, have us
strongly positioned to capitalize on our current momentum:

cineSearch: Our AI-driven content search and discovery tool helps solve a major
problem in current streaming habits     figuring out what to watch. According to our
partner Gracenote, a Nielsen company, we spend on average 10 minutes trying to
decide what to stream, and 20% of us give up and do something else! cineSearch and
chatbot Ava     our    AI video advisor        simplify this process for fans, give streaming
platforms and OEMs access to technology to help improve their user experience, and

provide an opportunity to bring new attention to stories from independent and diverse
filmmakers.

Cineverse Podcast Network: We continue to hold strong as a top-10 podcast network
behind an expanded slate of hit shows in entertainment, horror, true crime and more,
competing with industry giants like The New York Times and The Walt Disney Company.
We are building out the network to include audio content for fans of even more genres
and also leveraging it as a unique marketing tool for brands in several categories,
including films like Terrifier 3, and movies from every major studio.

Cineverse 360 Ad Platform: Since its launch earlier this year, our C360 audience
network has generated an average of six figures in revenue and 20 billion CTV ad
requests per month. Using C360 for Terrifier 3, we directly reached diverse and deeply
targeted users and demographics at highly competitive rates thanks to the ad platform   s
vast reach and scalable solution. From programmatic to direct sales across CTV, FAST,
audio, publishing and live experiences, we have built a powerful offering for advertisers.
Underlying our extensive content offerings is our proprietary Matchpoint technology. Earning
industry honors for innovation this year, Matchpoint provides a strong infrastructure for our
growing portfolio of streaming channels and overall distribution model, offers partners a
one-stop-shop SaaS solution, and establishes us as a next-generation studio that is powering a
new era of entertainment. We are also using Matchpoint to generate additional AI-based
products and solidify our position as a leading-edge innovator in entertainment technology.
This has been a transformational year for the Company, one that would not have been possible
without our dedicated team. Thank you to all of our employees for helping build Cineverse into
the first stop for audiences seeking authentic and experiential content. Thank you also to our
shareholders for your support and belief in our work. We continue to take important steps
toward fulfilling our mission.
Sincerely,
Chris McGurk
Chairman & CEO



shareholder letter icon 11/20/2024 Letter Continued (Full PDF)
 

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