Shares of CuriosityStream (NASDAQ: CURI) fell 12% on Wednesday after the streaming platform lowered its full-year subscriber guidance, citing macroeconomic pressures and intensifying competition in the streaming market.
The company now expects between 1.4 million and 1.5 million paid subscribers by the end of 2024, down from its prior forecast of 1.6 million to 1.7 million. CuriosityStream attributed the revision to slower-than-anticipated subscriber growth in the first half of the year, driven by broader economic headwinds and a crowded streaming landscape.
The guidance cut follows a first-quarter earnings report in which CuriosityStream reported a net loss of $1.2 million, wider than the $800,000 loss recorded in the same period last year. Revenue for the quarter declined 5% year-over-year to $11.8 million, primarily due to lower subscriber additions and reduced advertising revenue.
Analysts at Jefferies noted that the guidance reduction reflects "persistent challenges in converting free trials to paid subscriptions" and a "more competitive environment" among streaming services. The firm maintained a hold rating on the stock but reduced its price target to $1.50 from $2.00.
CuriosityStream’s stock has declined nearly 30% year-to-date, underperforming broader market indices. The company, which focuses on documentary and educational content, has faced pressure as consumers tighten discretionary spending amid economic uncertainty.
The company’s management acknowledged that while subscriber growth remains a priority, the path to profitability remains uncertain given current market conditions.
