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Oct 31, 2020
SeaChange Q3 2021 Earnings Report
SeaChange reported financial results for Q3 2021 and observed strong demand for its new 'Video Apps' platform.
Key Takeaways
SeaChange International reported total revenue of $5.0 million for the fiscal third quarter ended October 31, 2020, consistent with the prior quarter but significantly lower than the $20.5 million reported in the same period last year. The company experienced a GAAP net loss of $5.1 million, or $(0.14) per basic share, compared to a net income of $2.1 million, or $0.06 per fully diluted share, in the same period last year.
Launched ‘Video Apps’ platform with active discussions with approximately 50 content owners within the first month.
Secured a significant win with a major mobile network operator for Advertising Solutions, potentially generating $100 million over three years.
Secured six new customer wins in the third quarter, including Framework Video Platform and Advertising Solutions.
Ongoing cost-optimization measures resulted in a 45% year-over-year decrease in operating expenses.
Revenue by Segment
Forward Guidance
SeaChange is focusing on enabling the direct-to-consumer movement through its Video Apps platform, aiming to capitalize on the growing demand for high-quality streaming content and OTT advertising spend.
Positive Outlook
- Strong customer demand and robust pipeline for Video Apps.
- Video Apps platform addresses the TV and video market’s accelerated shift in spending in response to COVID-19 changes in consumer behavior.
- Revenue-share model allows SeaChange to meaningfully participate in the growing OTT market ad spend.
- Content owners are accelerating their content distribution strategies and investments to deliver high-quality content directly to consumers.
- SeaChange’s Ad Insertion module and rich data analytics, content owners are provided with greater insights into their audiences and generate higher advertising revenue right away.
Challenges Ahead
- The dramatic shift in service provider spending since the onset of the pandemic has impacted the near-term demand for our Framework video delivery platform.
- GAAP loss from operations totaled $4.6 million compared to a GAAP loss from operations of $6.2 million in the prior quarter, and GAAP income from operations of $2.3 million in the same period last year.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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