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01/15 19:33
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Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call reveals strong financial growth, strategic acquisitions, and positive market expansion efforts. The DAVID acquisition is a key highlight, expected to boost future results. Management's focus on scaling and innovative content strategies is promising. However, lack of specific guidance on some metrics is a minor concern. Overall, positive sentiment prevails with strong membership growth expectations and potential revenue increases from new content releases.
Guild Membership 1.6 million members, up more than 500% year-over-year and up 19% sequentially. This growth is attributed to the launch of paid marketing for the Guild in Q2 2023 and the scalability of the community-driven model.
Revenue $76.5 million in Q3 2025, a 280% increase over Q3 2024 ($20 million). For the first 9 months of 2025, revenue grew 223% to $211.6 million from $65.5 million in 2024. The increase is driven by Guild membership growth and higher engagement.
Guild Revenue Contribution 77% of total revenue in Q3 2025, up from 45% in Q3 2024. This reflects the growing importance of the Guild as a recurring revenue engine.
Average Revenue Per Guild Member (ARPM) $13.70 per month (trailing 12 months). This is a new metric disclosed to highlight the revenue generated per member.
Cost of Revenues $34.3 million in Q3 2025, up from $8.1 million in Q3 2024. The increase is due to higher transaction fees and royalty payments to filmmakers, which are tied to the growth in memberships and performance.
Selling and Marketing Expense $64.7 million in Q3 2025, up from $16.6 million in Q3 2024. The increase is attributed to investments in Guild growth and theatrical releases.
Net Loss $38.6 million in Q3 2025, compared to $13.9 million in Q3 2024. The loss is due to investments in Guild growth, theatrical releases, and expenses related to the public listing.
Cash and Cash Equivalents $63.3 million as of Q3 2025, up from $7.2 million at the end of 2024. This increase is supported by a $100 million credit facility, of which $40 million has been drawn.
AI-driven discovery technology: Successfully implemented in the Angel app, leading to a 12% increase in watch times, which is a significant driver of Guild retention.
Acquisition of DAVID franchise: Acquired the DAVID franchise, an epic animated film and TV series, marking the largest crowd-funded film in history. It has already earned nearly $3 million in theatrical presales within three weeks.
Acquisition of top-performing series: Acquired three top-performing series: Tuttle Twins, Homestead, and The Wingfeather Saga, which are expected to enhance intellectual property and retention numbers.
Public listing on NYSE: Angel debuted on the New York Stock Exchange, elevating its brand and increasing its reach in the global TV and streaming market.
Guild membership growth: Guild membership reached 1.6 million, up over 500% year-over-year, contributing to 77% of total revenue.
International distribution partnerships: Expanded library across platforms like Samsung, Amazon, and Apple, reducing in-app purchase fees and saving over $3.5 million annually.
Revenue growth: Achieved $76.5 million in Q3 revenue, a 280% increase year-over-year, with Guild revenue accounting for 77% of total revenue.
Cost management: Reduced in-app purchase fees from 30% to 15%, saving over $3.5 million annually.
Technology enhancements: Optimized web and mobile platforms, boosting Guild sign-ups by 9% and revenue by 6%.
Focus on intellectual property: Acquired high-performing franchises to compound long-term library value and enhance Guild retention.
AI adoption: Implemented AI-driven discovery technology to improve user engagement and retention.
Diversified revenue streams: Maintained four primary revenue streams: Guild memberships, theatrical releases, licensing, and other revenue, creating a reinforcing cycle of growth.
Revenue Variability: The company's revenue is influenced by the timing of theatrical releases and other factors, which may create quarter-to-quarter variability. This could impact financial predictability and investor confidence.
High Marketing and Acquisition Costs: Selling and marketing expenses have significantly increased, driven by investments in Guild member acquisition and theatrical releases. This could strain profitability if growth in membership or revenue does not offset these costs.
Net Loss: The company reported a net loss of $38.6 million for the quarter, which includes expenses related to the merger and public listing. Sustained losses could challenge long-term financial sustainability.
Dependence on Guild Membership: Guild memberships account for 77% of total revenue. Heavy reliance on this single revenue stream could pose risks if membership growth slows or retention rates decline.
Regulatory and Market Risks: The company operates in a highly regulated and competitive entertainment market. Changes in regulations or increased competition could adversely affect operations and strategic objectives.
Execution Risk in Content Production: The company’s audience-first approach and reliance on filmmaker partnerships reduce some risks but still depend on the successful execution and market acceptance of new content.
Debt and Financial Flexibility: The company has drawn $40 million from a $100 million credit facility and holds $34.6 million in Bitcoin as part of its treasury strategy. These financial strategies could expose the company to liquidity and market risks.
Seasonality of Entertainment Industry: The entertainment industry’s inherent seasonality, such as lower activity during back-to-school periods, could impact revenue and operational planning.
Future Theatrical Lineup: The company expects a strong theatrical lineup in the fourth quarter, which will contribute to top-line growth and Guild expansion. Key releases include the animated film 'DAVID,' set to premiere on December 19, 2025, with $3 million in presales already achieved, and other films like 'I Was a Stranger' (January 9, 2026) and 'Solo Mio' (February 6, 2026).
Recurring Revenue Growth: The Angel Guild membership is expected to continue driving recurring revenue growth, with membership fees providing a consistent income stream. The company plans to expand its Guild membership base, which currently contributes 77% of total revenue.
Technology and AI Enhancements: The company is leveraging AI-driven discovery technology, which has increased watch times by 12%, a key factor in improving retention. Further investments in technology aim to deepen relationships between artists and the community.
Strategic Acquisitions: Angel has acquired its three highest-performing series, including 'Tuttle Twins,' 'Homestead,' and 'The Wingfeather Saga,' to enhance intellectual property ownership and increase Guild retention.
Revenue Diversification: The company plans to grow its four primary revenue streams: Angel Guild memberships, theatrical releases, licensing, and other revenue (e.g., merchandise). Licensing rights may extend into derivative experiences like video games and live productions.
Capital and Financial Flexibility: Angel has secured a $100 million credit facility, with $40 million drawn, and filed a $400 million shelf registration to support growth and strategic opportunities.
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