CuriosityStream posted a wider-than-expected loss in Q3, but sales far surpassed expectations.
The company's Q3 sales were up 46% year over year.
Management's midpoint target calls for annual revenue growth of roughly 40% in 2025.
CuriosityStream (NASDAQ: CURI) stock is seeing big gains following the company's recent quarterly report. The education-focused streaming specialist's share price was up 25.1% as of noon ET.
With the Q3 results it published after yesterday's market close, CuriosityStream posted earnings that missed Wall Street's target and sales that came in significantly above expectations. While the business posted a wider-than-expected loss, investors are excited about the company's sales performance and forward guidance.
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CuriosityStream notched a loss of $0.06 per share on revenue of $18.4 million in the third quarter. The loss per share came in $0.03 heavier than expected, but sales performance for the period beat the average Wall Street analyst estimate by $2.05 million. Sales in the period were up an impressive 46% year over year, and management guided for strong momentum to continue.
For the fourth quarter, CuriosityStream is targeting sales between $18 million and $20 million -- good for growth of approximately 34.5% at the midpoint of the guidance range. Meanwhile, non-GAAP (generally accepted accounting principles) adjusted free cash flow for the period is projected to be between $2.5 million and $3.5 million.
With its new sales guidance, CuriosityStream's midpoint sales target now calls for revenue growth of approximately 40% in 2025. The company is seeing strong momentum from licensing revenues, and it's seeing licensing for the training of artificial intelligence (AI) models turn into a powerful growth driver.
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Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.