SEACHANGE INTERNATIONAL, INC. Enabling Video Businesses with Streaming, PayTV and Ad Technology
Second Quarter Fiscal 2022
Conference Call
September 13, 2021
© SeaChange International, Inc. Confidential. | 1 |
F O R W A R D - L O O K I N G S T A T E M E N T
Certain statements in this presentation may constitute "forward-looking statements" within the meaning of the United States Private Securities Litigation
Reform Act of 1995, as amended to date. Forward-looking statements can be identified by words such as "may," "might," "will," "should," "could," "expects," "plans," "anticipates," "believes," "seeks," "intends," "estimates," "predicts," "potential" or "continue," the negative of these terms and other comparable terminology. Examples of forward-looking statements include, among others, statements we make regarding the Company's ability to execute its strategic roadmap, capture additional market share and capitalize on the growing demand for over-the-top video streaming services globally; the Company's ability to effectively monetize the value of its software and services; the Company's ability to accelerate key initiatives and execute on its strategic plan in a manner that translates to sustainable growth and consistent profitability in the years ahead;; and other statements that are not purely statements of historical fact. These forward-looking statements are made on the basis of the current beliefs, expectations, and assumptions of the management of the Company and are subject to a number of known and unknown risks and significant business, economic and competitive uncertainties that could cause actual results to differ materially from what may be expressed or implied in these forward-looking statements. Risks that could cause actual results to differ include, but are not limited to: the impact of COVID-19 on our business and the economies in which we operate; the continued spending by the Company's customers on video solutions and services and expenses we may incur in fulfilling customer arrangements; the manner in which the multiscreen video and over-the-top markets develop; the Company's ability to compete in the software marketplace; the loss of or reduction in demand, or the return of product, by one of the Company's large customers or the failure of revenue acceptance criteria in a given fiscal quarter; the cancellation or deferral of purchases of the Company's products; any decline in demand or average selling prices for our products and services; failure to achieve our financial forecasts due to inaccurate sales forecasts or other factors, including due to expenses we may incur in fulfilling customer arrangements; the impact of our cost-savings and restructuring programs; the Company's ability to manage its growth; the risks associated with international operations; the ability of the Company to use its net operating losses, including the potential impact on these losses resulting from the Coronavirus Aid, Relief, and Economic Security (CARES) Act; the impact of changes in the market on the value of our investments; changes in the regulatory environment; and other risks that are described in further detail in the Company's reports filed from time to time with the Securities and Exchange Commission (SEC), which are available at www.sec.gov, including but not limited to, such information appearing under the caption "Risk Factors" in the Company's Annual Report on Form 10-K. Any forward-looking statements should be considered in light of those risk factors. The Company cautions readers that such forward-looking statements speak only as of the date they are made. The Company disclaims any intent or obligation to publicly update or revise any such forward-looking statements to reflect any change in Company expectations or future events, conditions or circumstances on which any such forward-looking statements may be based, or that may affect the likelihood that actual results may differ from those set forth in such forward-looking statements.
© SeaChange International, Inc. Confidential. | 2 |
Presenters
Robert M. Pons
Executive Chair, Principal Executive Officer, and Chairman of the Board
- 30 years of senior-level management and board experience at both early-stage ventures and middle market companies.
- President and CEO of Spartan Advisors, Inc., a management consulting firm specializing in telecom and technology companies.
- Served on the boards of Inseego Corp. and Alaska Communications, Inc. Mr. Pons received a B.A. degree with honors from Rowan University.
© SeaChange International, Inc. Confidential.
Michael Prinn
Chief Financial Officer
- Previously served as the Vice President, Finance of Brightcove, Inc. (NASDAQ: BCOV) and as Executive Vice President and Chief Financial Officer of Bridgeline Digital, Inc. (NASDAQ: BLIN).
- Over 20 years of leadership and financial management in publicly traded companies.
- Mr. Prinn is a licensed C.P.A. and earned a B.S. in Accounting from Boston College, Carroll School of Management
Christoph Klimmer
VP, Global Sales and Marketing
- Over 15 years of leadership experience in the streaming video, broadcast and telecom markets.
- As VP of global sales and marketing, Klimmer is responsible for spearheading sales, strategy and product positions for the company's video delivery software solutions.
- Previously served as director of global sales and technology at Xstream and earned a PhD in media studies from the University of Hamburg.
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Market Opportunity and Drivers
Growth in video streaming and advertising
Global video streaming market size
2019-2024 (USD billion)
$116 | |
$100 | |
$84 | |
$70 | $336 |
$58 | |
$48
2021 Global TAM $525B
Digital advertising spending worldwide
2019-2024 (USD billion) | $646 |
$586 | |
$524 | |
$455 |
$378
2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 |
Fortune Business insights: Oct. 2020 | Digital Advertising Spend (Source: StatistaMay 2021) |
A D T E C H R E V O L U T I O N | BIA Advisory Services: 41% of respondents said they | |
increased their ad spending for streaming services | ||
© SeaChange International, Inc. Confidential. | 4 | |
Fiscal Q2 2022 Financial Highlights
Growing topline and optimized cost structure
Solid balance sheet supports growth strategy
Business model transition from perpetual to term and SaaS
© SeaChange International, Inc. Confidential.
$6.5M
Revenue (Q2-22)
63%
Gross Margin (Q2-22)
$18.9M
Cash (Q2-22)
-17% YoY
Decrease OPEX (Q2-22)
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Disclaimer
SeaChange International Inc. published this content on 13 September 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 September 2021 22:21:02 UTC.
