01 · Challenge
The Challenge
CuriosityStream’s primary challenge stemmed from its status as a broken SPAC, which contributed to sustained undervaluation. Despite strong free cash flow, with a 20% yield, the company traded at a deep discount to its peers, and the accounting treatment of content amortization masked its underlying financial performance. As a result, the market was not valuing the company’s cash-generating potential. CuriosityStream wanted to develop and execute a comprehensive investor relations program to increase its visibility with new investors and bridge the valuation gap.
02 · Solution
Our Solution
- Reviewed a detailed model with the CFO, providing financial analysis and recommendations to support issuing a cash dividend
- Helped script earnings press releases and transcripts to highlight strong free cash flow generation and improvements
- Conducted virtual roadshows with targeted investors and helped management synthesize and simplify the pitch so investors could better understand the non-cash aspects of the model
- Shared the story at conferences, putting the company on the radar of many institutional investors and family offices
- Introduced management to higher-tier investment banks for research and future coverage
03 · Impact
The Impact
- Stock increased more than 250% in less than six months, and at one point was up more than 375%, from $1.50 to above $7.00
- Share volume increased 100%
- The company implemented a quarterly dividend
- With the increase in market cap, the stock was added to the Russell 2000
- Secured investor conference invitations from Roth, Singular and Barrington, with introductions to others for future non-deal roadshows
Past results are not indicative of future performance. Figures are as reported in Hayden IR’s case study for CuriosityStream, Inc. See our disclosures.
