Is This the Quarter That Kills MoviePass?
Helios and Matheson Analytics, the parent company of MoviePass, is continuing to hemorrhage cash. The company is on the verge of collapse and its most recent update to investors is not helping its case.
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Helios and Matheson Analytics Inc. (NASDAQ: HMNY), the parent company of MoviePass, is continuing to hemorrhage cash. The company is on the verge of collapse, and its most recent update to investors is not helping its case.
The company posted a gross loss of $104.6 million, a sizable shift from last year when it reported a gross profit of $223,000. Currently, the company has just $175.3 million of total assets left on hand, including a meager $15.5 million in cash.
Last week, MoviePass cut its standard plan to three movies per month, down from its one movie per day. The firm also experimented with peak pricing, limited showings and ticket verification to combat the abuse of the service.
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According to CNBC:
MoviePass is contributing tens of millions in additional revenue for the Helios and Matheson — it’s just burning cash at a much faster rate. Total operating expenses for Helios and Matheson increased by 1,000 percent year over year during the second quarter, pushing total losses from operations past $126 million.
Shares of Helios and Matheson were last seen down about 20% at $0.04.
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Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics. Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications. A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.
