On this page of StockholderLetter.com we present the 10/27/2023 shareholder letter from Cineverse Corp. — ticker symbol CNVS. Reading current and past CNVS letters to shareholders can bring important insights into the investment thesis.

 •  10/27/2023 Letter Continued (Full PDF)
 •  11/20/2024 CNVS Stockholder Letter
 •  More "Entertainment" Category Stockholder Letters
 •  CNVS Benford's Law Stock Score = 65

CNVS 10/27/2023 Shareholder/Stockholder Letter Transcript:

Dear Fellow Stockholders:
Let me share my thoughts on why I believe Cineverse continues to be in a strong position to generate significant
growth and sustainable profits as a unique player in the rapidly evolving streaming technology and content industry.
Our position at the center of major transformation is nothing new. The Company first demonstrated our gamechanging technology skills driving the digitization of cinemas, where we converted more than a third of screens in
North America and helped the industry reap billions of dollars in cost savings while making the theatrical business
digitally competitive with home viewing options.
A few years later, we took on another challenge: digitizing the distribution of movies into the home. Our mission
was to build a system that would reinvent the entire film and television supply chain for the modern streaming era.
Today, that platform is known as Matchpoint. Our    platform as a service    (PaaS) system supports over 600
enterprise customers and addresses a modern streaming company   s every business need.
Cineverse technology was also a leading catalyst in the roll-out of the Free Advertising Supported TV business
(FAST), which is now the fastest growing segment of the streaming business. Today, we operate more than two
dozen channels, making us one of the largest networks of streaming channels in the industry.
And now, in coordination with our technology division at Cineverse India, we are developing next-generation tools
utilizing AI and machine learning to expand our position at the forefront of industry innovation and propel further
growth.
Much of the Company   s focus will be on further exploiting our technology by bringing it to market on a white-label
basis. To that end, we have not only added engineering resources in Cineverse India but also added sales and
marketing talent to aggressively sell Matchpoint to business partners as we build a robust PaaS and managed
services business. Already, Matchpoint powers a material amount of our total revenues.
Matchpoint, along with our more than two dozen enthusiast streaming channels and 70,000- plus title content
library, will be the driving assets behind our initiative to achieve sustainable long-term profitability and positive
cash flow.
Toward that end, we have also significantly streamlined our cost structure following the integration of the eight
streaming and technology acquisitions we made over the last three years. Through significant headcount reductions,
operating deal renegotiations, spending controls and the elimination of management bonuses until sustainable
profitability is attained, we believe we are well on our way toward our gross margin, profit and cash flow objectives.
Going forward, we will generate significant additional cost savings and improve margins even further by leveraging
our Indian operations through Cineverse Services India, where we are already deep in the process of offshoring a
significant number of domestic positions at a huge cost discount. We believe that rebuilding our back office within a
trusted, highly effective organization like Cineverse Services India will not only significantly reduce costs but will
also improve internal workflows and service to all our constituents. In this way, Cineverse Services India is a unique
advantage that none of our competitors can fully replicate.
When completed, we are targeting these cost streamlining initiatives to reduce operating costs by up to $10 million
annually.
And unlike almost all our competitors, we do not carry a heavy debt burden, with only a $5 million line of credit at
present. Additionally, we are carefully managing our capital requirements through the end of the fiscal year, when
we believe we will become sustainably cash flow positive. Therefore, we currently see no need to raise equity
capital to support existing operations.

Finally, I want to thank all the Cineverse team members who have executed our business initiatives so well in the
face of challenging market conditions. I also want to thank our stockholders for their support and patience.
Backed by our Matchpoint technology, our streaming and content assets and our strong and committed management
team, we are fully confident in the future success of Cineverse.
Sincerely,
Chris McGurk
Chairman & CEO



 10/27/2023 Letter Continued (Full PDF)