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Oct 31, 2022
SeaChange Q3 2023 Earnings Report
SeaChange reported Q3 2023 financial results with revenue increase and gross margin expansion.
Key Takeaways
SeaChange International, Inc. reported a 16% year-over-year increase in total revenue to $8.3 million for fiscal Q3 2023. Gross margin expanded to 62% from 52% in the same period last year, and the company generated positive non-GAAP net income for the second consecutive quarter.
Total revenue increased by 16% year-over-year, reaching $8.3 million.
Services revenue grew significantly, up 68% year-over-year to $6.1 million.
Gross margin expanded to 62%, compared to 52% in the prior year quarter.
Company generated positive non-GAAP net income for the second consecutive quarter.
SeaChange
SeaChange
Forward Guidance
The press release contains forward-looking statements regarding the company's future performance, which are subject to risks and uncertainties.
Positive Outlook
- Company’s ability to generate recurring SaaS revenues
- Company's ability to create organic and strategic growth opportunities
- Company's ability to continue building momentum by securing major new customers
- Company's ability to manage its growth
- Company's capability to cost-effectively launch and grow premium linear TV and direct-to-consumer streaming services
Challenges Ahead
- Reduction in spending by customers on video solutions and services
- Increase in labor, service and supply costs, including as a result of inflationary pressures
- Inability to successfully compete in the marketplace
- Failure to respond to rapidly changing technologies related to multiscreen video
- Weakened global economic conditions that may harm the industry, business and results of operations