CuriosityStream’s 2021 Revenue Outlook Tops Estimates After 4Q Beat
CuriosityStream reported better-than-expected 4Q revenues and provided a 2021 outlook that fared better than analysts’ expectations. CuriosityStream stock is up about 1.7% in Wednesday’s pre-market trading session.
CuriosityStream’s (CURI) revenues jumped 70% year-over-year to $11.4 million and came in slightly ahead of the Street’s expectations of $11.22 million. The stellar growth in its top-line reflects strong subscriber growth. The company’s paying subscribers increased by 50% year-over-year to about 15 million.
However, a net loss of $15.7 million was wider than the year-ago loss of $14.6 million due to lower gross margins and an operating loss in 4Q.
As for 2021, the company expects to generate revenues of at least $71 million, which implies year-over-year growth of 80%. Analysts were expecting revenues of $70.6 million. (See CuriosityStream stock analysis on TipRanks)
Following the results, Needham analyst Laura Martin maintained a Buy rating and a price target of $25 (51.8% upside potential) on the stock. In a note to investors, the analyst said, “COVID-19 lock-downs during 2020 accelerated the consumer shift toward streaming and OTT [over-the-top] globally.” She added that “CURI is well positioned to take advantage of the trend toward streaming.” Martin further believes that the company’s “upside value drivers include subscriber growth, raising prices, and selling sponsorships as a 6th revenue stream.”
Overall, the Street has a Strong Buy consensus rating on the stock based on 4 Buys and 1 Hold. The average analyst price target of $21.40 implies upside potential of about 30% to current levels. Shares have gained over 47% since the company listed on NASDAQ on Oct. 15, 2020.
TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on CURI, with 2.9% of investors increasing their exposure to CURI stock over the past 7 days.
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