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Jul 31, 2021
SeaChange Q2 2022 Earnings Report
SeaChange reported fiscal second quarter 2022 financial results, demonstrating sequential revenue growth and gross margin expansion.
Key Takeaways
SeaChange International, Inc. reported a 29% sequential increase in revenue and a gross margin expansion to 63% for the fiscal second quarter ended July 31, 2021. The company's growth strategy, focused on video streaming and Ad Tech markets, is gaining traction, with increasing financial momentum driven by key sales initiatives.
Introduced StreamVid, a cloud-based OTT platform to help operators and content owners manage and optimize their streaming businesses.
Selected by Screen iL to launch streaming platform featuring Israeli TV and film content for Israeli ex-pats and consumers worldwide.
Chosen by Chicken Soup for the Soul Entertainment (NASDAQ: CSSE) as its streaming and advanced advertising platform for new Popcornflix App.
Maintained a strong balance sheet with $18.9 million in cash and cash equivalents and no debt.
SeaChange
SeaChange
Forward Guidance
SeaChange has entered the third quarter with significant momentum and a robust pipeline of sales opportunities and believes it is just starting to scratch the surface of streaming and Ad Tech opportunities, expecting continued execution on its strategic plan to drive scale, capture market share, and create even greater value for both its customers and shareholders.
Positive Outlook
- Enhanced product positioning
- Recent customer wins
- Technology assets and expertise to provide cable operators and streaming content owners globally with advanced advertising technology
- Turn-key managed services streaming enablement platform
- Unlock additional revenue streams, maximize the ROI of user and content acquisition costs and streamline operational costs while enhancing operational efficiencies
Challenges Ahead
- Impact of COVID-19 on business and the economies in which we operate
- 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