管理層發言
Good day, everyone, and thank you for joining us for the Cineverse Corporation Fiscal 2026 Third Quarter Earnings Call. My name is Luca, and I will be your operator today. I would now like to turn the call over to Gary Loffredo, Chief Legal Officer, Secretary and Senior Adviser for Cineverse. Please go ahead.
Good afternoon, everyone. Thank you for joining us for the Cineverse Fiscal Year 2026 Third Quarter Financial Results Conference Call. The press release announcing Cineverse's results for the fiscal third quarter ended December 31, 2025, is available at the Investors section of the company's website at www.cineverse.com. A replay of this broadcast will also be made available at Cineverse's website after the conclusion of this call. Before we begin, I would like to point out that certain statements made on today's call contain forward-looking statements. These statements are based on management's current expectations and are subject to risks, uncertainties and assumptions. The company's periodic reports that are filed with the SEC describe potential risks and uncertainties that could cause the company's business and financial results to differ materially from these forward-looking statements. All the information discussed on this call is as of today, February 17, 2026, and Cineverse does not assume any obligation to update any of these forward-looking statements, except as required by law. In addition, certain financial information presented in this call represent non-GAAP financial measures, and we encourage you to read our disclosure and the reconciliation tables to applicable GAAP measures in our earnings release carefully as you consider these metrics. I'm Gary Loffredo, Chief Legal Officer and Senior Adviser at Cineverse. With me today are Chris McGurk, Chairman and CEO; Erick Opeka, President and Chief Strategy Officer; Tony Huidor, President of Technology and Chief Product Officer; Mark Lindsey, Chief Financial Officer; Yolanda Macias, Chief Motion Pictures Officer; and Mark Torres, Chief People Officer, all of whom will be available for questions following the prepared remarks. On today's call, Chris will briefly discuss our fiscal year 2026 third quarter business highlights. Then Mark will follow with a review of our financial results, and Erick will provide further details on our 2 most recent acquisitions. I will now turn the call over to Chris McGurk to begin.
Thanks, Gary, and thanks, everyone, for joining us on the call today. I'll first give a brief overview of our results and the anticipated impact of the 2 transformative acquisitions, Giant Worldwide and IndiCue that we made after the end of our fiscal third quarter. Then Mark will go into our financial results and outlook in more detail, plus further outline both acquisitions to underscore why we believe they will be very accretive and we were done with very attractive valuations and have deal economics that will dramatically improve our financial growth and profitability outlook. After that, Erick will get into more detail about how these 2 acquisitions transform Cineverse into a powerhouse, comprehensive AI-powered technology services provider to the entertainment industry with assets and reach that we believe none of our competitors can match. Then we'll take your questions. Okay. So we have been negotiating the Giant and IndiCue acquisitions for months. And while we realized the dramatic impact both would have on our market position, go-forward strategy and financial outlook, our first order of business, while we aggressively moved to close both deals, was to improve operating results in our base businesses to further set the stage for financial success in the future. And so in this last fiscal quarter, we concentrated on improving our cost structure and operating margins in our base businesses. And we generated some strong results, improving our direct operating margin to 69%, up from 48% in the prior year quarter and generating adjusted EBITDA of $2.4 million, a $6 million improvement from the prior sequential quarter. This was a result of our intense and ongoing efforts to manage the cost side of the business, including leveraging Cineverse Services India, even as we ramped up operations on the technology side of the business in anticipation of these 2 acquisitions. And we are extremely pleased that we were able to successfully acquire both Giant and IndiCue. This one-two punch immediately transforms our company financially by adding significant revenues and adjusted EBITDA. Both acquisitions bring large, durable and scalable streams of recurring revenues to the company and significantly solidify our position as a leading end-to-end AI-powered provider of technology services and infrastructure solutions for the entertainment industry. They both have an A+ level roster of industry clients and will be easily integrated into our industry-leading Matchpoint technology ecosystems. Both acquisitions also bring very strong, experienced and highly motivated management teams that clearly see the synergies and share our larger vision for the future of Matchpoint and Cineverse. Like the Cineverse team, they are joining, our new team members have incentive plans based on generating explosive future growth in revenues, margins and profits. And in the case of IndiCue those incentives also include a very significant earnout potential over 3 years. So we believe we are completely aligned with our new team members to generate strong financial results and create significant value going forward. And already, the integration of Giant has been going very smoothly and the overwhelmingly positive industry response to joining Matchpoint has exceeded our expectations. If there are any doubts about the long-term potential of Matchpoint, those doubts have been roundly dismissed. The immediate response we received within days of our announcement proves the merging Matchpoint with an established media delivery company with highly coveted approved vendor badges is the ideal profile for the type of service provider entertainment companies seek. In the days following our announcement, Giant received more work orders than they have in the history of the company. And at this early juncture, we confirm our prior expectations for Giant's short- and long-term revenue and profit contribution, and we feel very, very positive about how things are looking so far. And in addition, IndiCue has consistently outperformed their own internal monthly revenue and profit forecast over the last several months while we were in negotiations. So both of those factors combined with the financial improvement we generated in our base business this quarter give us great confidence in the financial guidance we just issued for fiscal year 2027, which starts this April 1. We project $115 million to $120 million in annual revenues and $10 million to $20 million in adjusted EBITDA from our consolidated operations this next fiscal year. In the end, these acquisitions were the result of a long-term thesis built on closely tracking our industry's delayed transition to true AI integration and automation. The content volume needed to compete in the streaming wars accelerated yet the video delivery infrastructure remained manual and slow to market. While costs for video and high volume became untenable. This created the opportunity for a unified intelligent platform with a unique monetization component that redefines the current ecosystem. I believe we finally achieved this. And with that, I will now turn things over to Mark and then Erick to get into all this in more detail. Thank you.
Thank you, Chris. Here are some highlights from our fiscal third quarter. Revenues totaled $16.3 million, an increase from $12.4 million last quarter, but a decline from $40.7 million in the same quarter last year. The previous fiscal quarter included the theatrical results of Terrifier 3, which were over $20 million. Our net loss for the quarter was $875,000, which is a $4.7 million improvement from the prior quarter. Adjusted EBITDA for the quarter was $2.4 million, up by $6 million from the previous quarter. We ended the quarter with $2.5 million in cash and $4.2 million available on our East West Bank revolver. Moving on to exciting developments since the quarter ended, we closed on two acquisitions. Giant was an all-cash asset acquisition for $2 million, with an initial payment of $350,000 at closing and the remaining $1.65 million deferred over the next four quarters. We conservatively project this business will generate revenues between $15 million and $17 million and adjusted EBITDA of $3.5 million to $4 million for our 2027 fiscal year. This acquisition represents the first step in our financial transformation, given that we acquired these assets at just 0.5 times adjusted EBITDA with no leverage or dilution. The IndiCue acquisition was the next step. This involved acquiring 100% of the equity of IndiCue for a base consideration of $22 million, with $12.8 million paid at closing and $9.2 million in deferred consideration due within one year in cash or equity at our discretion. Total consideration could rise to $40 million if IndiCue achieves specific revenue and gross profit milestones over the next three years. It also included $3 million in cash and $750,000 in net working capital at closing. The additional earn-out consideration will be payable in cash or equity at our discretion. We expect IndiCue to contribute over $38 million in revenue and $7 million in adjusted EBITDA for our 2027 fiscal year. We financed the IndiCue acquisition using $13 million of convertible notes from existing long-term Cineverse shareholders on favorable terms, demonstrating their strong belief in our investment strategy and the long-term value creation this acquisition represents for our shareholders. Importantly, the capital was sourced from aligned long-term investors without any warrants attached, and the additional equity raise was priced at market levels with fundamental investors. The entire Cineverse management team also invested alongside the transaction, reinforcing our commitment to our shareholders. The combined acquisitions are anticipated to generate over $50 million in revenue and $10 million in adjusted EBITDA for our 2027 fiscal year. Following the Giant and IndiCue acquisitions, we are guiding for revenue in fiscal year '27 of $115 million to $120 million and adjusted EBITDA of $10 million to $20 million. The impact of these acquisitions signifies a financial transformation for the company and is expected to create substantial shareholder value moving forward. Separately, on February 12, we sold 1.725 million shares of common stock at a purchase price of $2 per share, resulting in net proceeds of $3.2 million. We plan to use these proceeds for working capital and general corporate purposes, including financing content acquisition and development. Now, I'll hand it over to Erick to discuss our operating highlights and the acquisitions in more detail.
Thanks, Mark. I want to begin with a brief overview of our operational achievements this quarter, then focus on the strategic significance of the Giant and IndiCue acquisitions for the future direction of Cineverse. Operationally, we've experienced strong momentum within our streaming ecosystem, achieving 35.5 million unique viewers monthly and a 15% year-over-year increase in our SVOD subscriber count to 1.55 million. We are streaming approximately 1.14 billion minutes each month, and our content library now surpasses 66,000 total assets, which include almost 58,000 films, seasons, and episodes, along with over 8,500 podcasts. Our social media presence has also expanded to more than 25.4 million followers, reflecting our reach, engagement, and content influence—key factors for building distribution advantages. Specifically, on our Cineverse channel, we gained about 45,000 subscribers in calendar 2025, creating positive momentum as we enter our new fiscal year. I want to also highlight our operating leverage. Our direct operating margin reached 69% this quarter, up from 48% a year ago, marking a significant improvement. On the cost side, through personnel optimization, vendor reductions, and cost negotiations, we've realized around $1.9 million of the targeted $7.5 million in cuts across our studio operations and corporate overhead, with most of the remainder expected to materialize in the next two quarters. We're getting into a steady operational rhythm, which is vital context for discussing these acquisitions. Now, regarding Giant and IndiCue, these acquisitions are not merely about growth; they address a specific market gap we have identified and help us build an architecture that solves it. For years, we've been developing Matchpoint as an advanced infrastructure layer for digital video distribution. We've invested heavily in machine learning, automation, and the foundational elements that the streaming industry urgently needs. However, as we engaged with studios, distributors, and platforms, we discovered the industry's significant fragmentation. Content distribution is separate from monetization, and monetization is disconnected from data, which creates friction and inefficiency, ultimately leading to lost revenue. Giant Worldwide has been servicing major Hollywood studios and streaming platforms for over 20 years, offering digital preparation, coding, quality control, compliance, and delivery across multiple formats. They are trusted by four major studios and several independent distributors, holding approved vendor status due to their reliability, security, and quality, which creates a considerable competitive advantage. However, Giant was using traditional infrastructure reliant on manual workloads, which limited their ability to meet studio demands quickly and effectively. As we began integrating Matchpoint's AI video and audio quality control, along with automated ingest and analysis workflows, we've witnessed immediate efficiency improvements—achieving 60% to 70% efficiency gains in coding delivery in a short period. Matchpoint can ingest and master over 15,000 titles per month and can scale even further. It's essential to note that we have yet to fully optimize Giant for software-like margins, meaning the opportunity for margin improvement still lies ahead. The global market for post and media services is a $25 billion fragmented landscape growing at an 11% compound annual growth rate, projected to reach $74 billion by 2034. The industry is transitioning from labor-intensive workflows to AI-powered platform-led operations, and our aim is to position Matchpoint as a leader in this transition. The initial response to our announcement has validated our strategy, as seen in a nearly 470% increase in business during our first month operating Giant under the Matchpoint brand, with this momentum continuing into February as studios and platforms express their strong need for scalability and automation from a reliable partner. IndiCue plays a similarly critical role. They developed a proprietary connected TV monetization platform with ad serving, supply-side, demand-side capabilities, all built on scalable infrastructure, giving us significant control. They currently serve over 40 clients, with 75 more in the onboarding process, including notable names like IMAX and Freecast. They project $38 million in revenue and approximately $9.6 million in EBITDA by calendar 2026, showcasing solid platform economics. IndiCue provides the monetization layer we were missing. While Matchpoint handles content distribution at scale, ad inventory sales and optimization were operating within a separate silo. IndiCue integrates monetization with our distribution and data systems, creating a cohesive framework that can respond to performance insights in real-time, enhancing results for both our content and that of some of the largest media companies globally. We've established an independent full-stack white label solution that merges content delivery with ad monetization, allowing the combined teams to develop new ad tech products within the Matchpoint ecosystem that neither could have created independently. This positioning is increasingly crucial due to a structural shift occurring in technology today. As value migrates from interface layers to platform and infrastructure layers in the AI era, companies owning the underlying infrastructure and data will hold the most relevance, and that's precisely what we've built. With Matchpoint as the platform layer, Giant contributes proven infrastructure and trust, while IndiCue adds the monetization engine. Together, along with our Matchpoint platform, we've created a comprehensive system for the entire media supply chain, from content ingestion to monetization—a true operating system rather than just a dashboard overlay. Since monetization is integrated into the underlying architecture, data flows in real-time, leading to improved advertising performance, better targeting, and optimized ad loads for consumers. When these systems are disconnected, it leads to losses across the board, but we've addressed this gap. In conclusion, through these two acquisitions, we are making a thoughtful strategic decision to build what this industry currently lacks: a unified, automated architecture for the entire media supply chain. This gives us a competitive edge, equipping us to meet today's market demands for scale, speed, and transparency while also positioning us for the future where intelligent systems will substantially drive decision-making alongside media companies. Our priority is clear—we're focused on scaling, enhancing margins, and ensuring durability. We now have several high-growth engines that support each other, backed by technology, data, and a rapidly expanding audience, leaving us well-positioned for the upcoming quarters and the long term. With that, operator, we can now open the line for questions.
分析師問答
First question comes from the line of Brian Kinstlinger, of Alliance Global Partners.
Great. Can you hear me?
Yes.
Congratulations on the strategic positioning through these acquisitions. My first question is, when I look at the filings on IndiCue, their business went from virtually no revenue in 2023 to $10 million, and to $32 million each of the last few years. Can you talk about the evolution of this business? I think there are 3 customers that make up the majority of the revenue. And is this recurring? And how? And is the growth generally penetrating new customers? Or is it penetrating the wallets of those existing customers?
Brian, I think Erick will take that question. And I think the concentration has improved quite a bit year-over-year. So go ahead, Erick.
Yes, sure. So I think there is a moment in time that IndiCue really was built for, and that's independent CTV monetization platforms with the prior acquisitions of companies like Springserve and Publica, the need for real independent platforms has emerged. It's not uncommon in early-stage businesses like IndiCue to have pretty high concentration early on as they leverage strong, long-term relationships of the founders and so on. And that's what happened in this case. But that underlying concentration has been improving pretty dramatically, looking at the rearview mirror of the filings. The concentration has only improved, both on the supply and demand side. But I think one of the things that's very compelling and differentiated from, say, other network plays and other things is the combination of the technology and the volume of business that's flowing through leads to a much stickier and durable relationship than people that don't own the tech or that partners have not built their businesses decisioning on top of. So that durability, some of the core customer base, one, represents a large holdco that has beneath that hundreds of different advertisers flowing through it and spending through it. And some of the other players are very large-scale players. So I think it's important for a business like this to build strong nodes of consistent recurring business that is mutually beneficial and expand from there. And I think that's exactly what they've done also on the supply side, adding in major CTV partners and OEMs that have dramatically diversified the business over the last few months. So really, it's having the right product at the right time for a market that needs autonomy and independence from SSPs to be able to allow companies to do the things that they need to do to maximize their returns and yields in the CTV market that's maturing. And I think this is sort of the exact right product at the right time for that.
Great. My one follow-up and then I'll get back in the queue. I think you guys want us to keep to 2, is maybe an update on Matchpoint. It looks like in your press release, you talked about announcing 4 new customers, ATPN, The Asylum, Spark and Waypoint, can you size these wins, what they mean in your revenue guidance for next year? And did they include the full stack that you acquired? Or will they grow as you add those new capabilities as part of Matchpoint.
Yes. I'll let Tony explain how the business will develop. Most of our customers approach us for specific needs. Some seek media processing, others want quality control, some are looking for an app platform, and still others are interested in monetization. Many of these customers initially come to us for either an app platform solution or an encoding solution. We're essentially following a classic land-and-expand strategy, where we bring in customers and they can add various integrated services over time. Tony, can you provide insight into the overall value of these customer types without focusing on any one specifically? I would categorize them as lower mid-market customers, but they are steady and stable. Tony, do you want to address that?
Thank you, Erick. Brian, we haven't discussed much about the synergy between Giant and Matchpoint. Our efforts with Matchpoint over the last two years have focused on establishing a market presence, validating our approach, and gaining traction. We initially targeted the lower end of the ecosystem by partnering with channel operators and FAST channel providers. You might remember from previous meetings that while there was interest in studio deals, the onboarding process took one to two years, which was lengthy and slow. With the acquisition of Giant, we instantly gained strong relationships with four of the largest studios and many other significant media companies. This acquisition enables us to offer Matchpoint services beyond just delivery to these major media clients. For instance, one of our studio partners, which we were vetting before the Giant acquisition, is now an approved vendor, removing that cumbersome process. This means Giant streamlined what could have been a year-long journey for Matchpoint into immediate market access. As Erick noted, we can now grow steadily with these large media clients, providing more services beyond what Giant offered. For example, one of our major studio partners was spending around $1 million a month with Giant, and we believe we can easily double that with the existing services, presenting significant growth potential. It's too soon to determine exactly how high the ceiling is, but we see remarkable opportunities ahead.
Your next question comes from the line of Dan Kurnos of Benchmark.
Congratulations on the significant transformation you've achieved. It required a lot of time, effort, and bravery to change the narrative here. Kudos for successfully shifting the premise and reducing the risks associated with the business. With that said, Tony has addressed my initial question, but I'd like to broaden it a bit. We've received insights from all three of you regarding the synergistic aspects of these deals and their interconnections. Considering the guidance you provided, which includes cost reductions and other synergies that could enhance Giant's margins, how much of the combined synergies are we expecting in the next 12 months? Additionally, how do you envision the potential ramp-up if execution goes well and you effectively integrate all aspects to showcase the capabilities of the consolidated entity? I'm trying to grasp what you've factored into the guidance for fiscal '27. I'll have a follow-up after this.
This is Chris. Dan, I just want to thank you for those comments. But I think probably, Erick and Mark Lindsey are probably best to respond to your specific questions about fiscal 2027 and the guidance.
Yes. I'll start by providing a general overview. I'll let Mark Lindsey discuss the specific forecast synergies as part of our guidance. When we consider how we are aligning various elements to reach our EBITDA and revenue targets, it's important to highlight the cost reductions in the studio business. Our goal is to refocus this area on achieving recurring revenue growth from streaming at high margins. We aim to create a more predictable studio model with smoother revenue ramps. One way to achieve this is by maximizing margins, which will help offset the natural volatility in the movie release business. We hope to increase movie output to mitigate that volatility. This first phase is expected to generate around $7.5 million in cost reductions. Additionally, we plan to shift many content costs that currently impact our balance sheet into off-balance-sheet financing options that are standard in the industry, enhancing the studio's financial appearance. The second phase involves identifying immediate synergies from our two acquisitions. Regarding IndiCue, Mark, could you confirm that we anticipate potential synergies of around $8 million to $9 million by applying IndiCue's capabilities across our media portfolio? Can you also provide insights on the revenue and EBITDA synergies as we integrate IndiCue into our monetization strategies and improve our ad-based infrastructure?
Yes, absolutely. I'll cover a few points. I don’t want to change our guidance because the numbers are solid as they stand. However, there are substantial revenue synergies from both the Giant acquisition and IndiCue, particularly in how they integrate with Matchpoint. Additionally, IndiCue can take advantage of our current infrastructure, ad platform, and various channels. As Brian previously mentioned, IndiCue has shown significant growth. Chris noted that they have outperformed estimates and their forecasts for the past few months, demonstrating rapid growth and high profitability. We believe we can capitalize on revenue synergies that are not currently included in our guidance. While our guidance consists of numbers we expect to achieve, there is potential for additional upsides. We aim to put forth conservative estimates, but we anticipate higher numbers for fiscal '28 and fiscal '29 since it will take some time to realize those synergies. Without stating specific figures, the range of $110 million to $120 million includes over $50 million in combined revenue from the two acquisitions and over $10 million in EBITDA from those acquisitions. We see significant upside potential regarding these synergies. Erick mentioned about $7.5 million in cost savings is already factored into the adjusted EBITDA guidance we released. While our targets may seem ambitious, we believe they are attainable, with considerable upside potential.
I want to conclude my remarks about the margin improvement for Giant. Currently, the business model is labor-intensive, with labor and SG&A costs aligned with revenue. There isn't a scalability benefit; as revenue increases, we need to hire more personnel. Recently, we've encountered limits in scaling our workforce to meet industry demands. We estimate that approximately 70% of the tasks related to encoding and delivery, which accounts for a significant portion of revenue, can be managed through Matchpoint's automation platform. This transition could potentially elevate gross margins from the low 30s to around the mid-70s. This transformation is essential because not only is the volume nearly infinitely scalable, but it also more than doubles the margins. We need to develop systems that facilitate this, and fortunately, migrating over is not overly complex; it's primarily about workflow and process initially, with increased automation expected later this year. This also impacts our cost structure. Regarding the two businesses, they are quite distinct. Prior to the acquisition, we made some enhancements to Giant, having opted for an asset purchase that allowed us to improve the cost structure from day one. While there are minor improvements applicable to any business, the majority of cost realization has already been achieved. IndiCue is a small, efficient, and profitable company that requires little intervention. There aren't significant synergies to be gained there, so most benefits will come from optimizing the business models of both companies involved.
That is incredibly comprehensive. Thank you for that. Very helpful and don't worry Mark. No one includes revenue synergies and acquisitions, so I think you're fine. The only other thing I'd ask for you guys because I know this is going to be a sort of an unprecedented or at least in recent times question, which is, how should we think about free cash flow conversion now that you guys are going to have real meaningful EBITDA. And I know we have the really favorable convertible note that's out there, but you guys are going to have to think about now what to do with the cash that you're going to start generating.
I'll kick it off and then Mark can provide more details. The positive aspect regarding these two businesses is that they won’t require substantial capital expenditures. The benefits we are seeing stem from over a decade of investment in our software platform. We are beginning to reap the rewards of applying those advancements to achieve better economies of scale, and they have established more capacity than we will actually need. Consequently, the free cash flow can be redirected towards growth initiatives for the company. One of the main advantages here is that we are in a position to utilize free cash flow rather than relying on dilution for these growth initiatives, especially in an environment where many companies similar to Giant and IndiCue are highly beneficial and contribute to the momentum of this platform. This is akin to an early version of Salesforce's strategy of integrating additional components that can significantly enhance growth. It also creates opportunities for investment and development in areas we have been discussing internally.
That's it, Mark. If you have something to add, please go ahead. Congratulations, and feel free to wrap things up.
I'll just kind of summarize what Erick said. I mean this is a great position to be in. It's a little bit different than where we've been in the last few years. We're 5 weeks on 1 acquisition, and 2 days or 3 days into the other one. So still some time to get our arms around them. But definitely an opportunity to put some dry powder on our balance sheet, reduce the outstanding balance on our revolver. As Erick alluded to, there's some unique opportunities out there for us for some tuck-in acquisitions to continue to help grow the company. That will be day 1 accretive that we feel like we can get at a great price. And hopefully, we're in a position where we can utilize cash and/or equity as a capital to make those acquisitions. So we can talk free cash flow in the next quarter and start reporting on it. So I know you're excited to see that number. So we'll start doing it.
Your next question comes from Laura Martin with Needham.
Can you hear me okay?
We can hear you now.
Congratulations on your transformative acquisitions. Chris, my first question is for you. The studios definitely need to reduce costs and automate their workflows. However, I believe there is a general consensus in Wall Street that generative AI tools will reduce content creation costs and increase the number of content creators, which may adversely affect the studios in the long run. My question pertains to Matchpoint, which I saw showcased at CES and found impressive. I believe it will only improve from here. Are there tools and features in Matchpoint that can benefit the next generation of content creators working with lean teams, like those with just five members and strong software narratives? Is there something in Matchpoint that caters to this new generation?
Yes. Well, first, Laura, thank you very much for joining the call. We're very happy that you listened in. Thank you. One of the things that I really like about what we're doing on the AI front is we're putting forth, I think, positive AI tools that help the industry, whether it's what we're doing here with Giant where we're using AI in our technology basically to power fulfillment and drive down costs for the studios or what we're doing on cineSearch with Ava, our Siri for streaming search. They're done in a way that doesn't have any negative impact at all on the creative side of the business, and yet they're positive applications of AI within the industry. We just made an announcement the other day, and I'm going to turn this over to Tony about how we're going to be developing AI tools on the creative side of the business. So Tony, do you want to respond to that question?
Yes, of course. Thanks, Chris. Laura, thanks for the question. Yes. Obviously, as an AI forward company, we continue to monitor and watch all the key developments within the industry. On Monday, we announced the formation of the Matchpoint Creative Labs. That's essentially our R&D unit for GenAI so we're already working with some clients on taking GenAI and using it for ad creation, which would tie in with IndiCue. We're also using it for channel branding, station IDs and so on. And this is a service that we can provide our Matchpoint clients, they use Matchpoint Blueprint or FAST channels. But we continue to invest in that area. I think in terms of your question, definitely where we are compared to the rest of the industry, we're pretty far ahead. Agentic AI is something that Erick spoke about during his portion of the script. I would say agentic AI and creating an intelligence layer related that sits on top of the data that we manage is a big focus of ours that we'll be doing some announcements later this year. But we get it. We're very invested in this space, and I think we have a very good handle in terms of how we can leverage AI in what we feel is an ethical way that doesn't hurt the business. But we're here ultimately to build, as we say, picks and shovels to help the rest of the entertainment industry move forward, and we think we have a huge foundational head start compared to any of our competitors.
I will add one thing, Laura. Your question is whether the studios will catch up and focus on AI, facing an innovator's dilemma, or if new companies will emerge. We believe this will significantly increase the total volume of content. Consequently, a platform that can organize, monetize, and distribute this content will become even more essential, utilizing additional tools to extend beyond just YouTube and other social platforms. We are witnessing leaps in quality that will democratize both the quality and quantity of available content. Our ability to ingest and normalize metadata for various sales and monetization channels, handle localization, track rights, and deliver to all FAST and AVOD platforms, along with performance tracking and real-time data feedback, will enhance our value in this future landscape. We believe we are well-positioned to manage this impending surge of content.
Great. My second question is about your recent transformative acquisitions. What comes next? Are you finished with acquisitions? Do you feel the need for more? Do you engage with your clients to understand their needs which may guide your future additions or expansions? What can we expect moving forward in terms of mergers and acquisitions?
So I would add that, number one, we've got a lot of work to do to digest these 2 acquisitions. So the short term is about post-merger integration, making these all work, getting all the teams aligned to the growth that we're putting out there. But I think the environment that we find ourselves where the media services industry, the processing the packaging data. There are a lot of companies that were private equity and other buyers, corporate and strategics bought these businesses at the peak of COVID, high valuations or under thesis that don't make sense anymore. And those companies are going to become available over the next months and years. And we think finding the best of the best that have strong assets that fit with our flywheel, stripping out cost structures and the same way we're doing here and automating them to capture scale and more value is a model that we think is worthy of pursuing. And first, we're going to prove the thesis though over the next months and quarters here.
I agree with that, Erick. However, if you analyze these two deals closely, they will provide significant benefits. They were negotiated with excellent valuations, and there are remarkable synergies between the two companies. While integrating companies can be challenging, we believe that both can be easily integrated into Matchpoint. The short answer is that if we can discover other opportunities similar to Giant and IndiCue that we see as having tremendous potential, we will pursue them because it aligns with the best interests of our shareholders.
There are no further questions remaining. So I'll pass the conference back over to Chris McGurk, Chairman and CEO of Cineverse for closing remarks.
Thank you. Thank you all for joining us today. Please feel free to reach out to Julie Milstead with any additional questions you might have from this call. So we look forward to speaking to you all again on our next quarterly call. Thank you all very much.
That concludes today's conference call. Thank you for your participation. You may now disconnect.