Executive Summary

Q4 FY2023 delivered the highest quarterly revenue in three years at $10.2M, up 23% sequentially and 19% year-over-year; gross margin expanded to 73%, and GAAP net income reached $1.7M ($0.03), with adjusted EBITDA of $1.7M .
Strength was driven by acceptance of a Connected TV development project that triggered a material license fee; product revenue rose to $6.2M (61% of total), while service revenue moderated to $3.9M (39%) on timing of professional services acceptance in Q3 .
Management highlighted strategic launches (Xstream, VIDAA Free) and multiple Tier 1/Tier 2 renewals; exited Q4 with $13.4M cash, $1.2M marketable securities, and no debt—cash flow positive from operations in Q4 .
Wall Street consensus estimates via S&P Global were unavailable for SEAC this quarter; estimate comparison tables reflect “N/A” and note the absence of SPGI mapping [SpgiEstimatesError].

What Went Well and What Went Wrong

What Went Well

Highest revenue and gross margin in three years: $10.2M revenue (+23% q/q, +19% y/y) and 73% gross margin, supported by Connected TV license acceptance .
Profitability inflection: GAAP net income $1.7M ($0.03) and adjusted EBITDA $1.7M; third consecutive quarter of positive non-GAAP income from operations .
Strategic product launches and partnerships: “Launched Xstream” and partnered with VIDAA to launch “VIDAA Free,” with distribution across millions of devices; “SeaChange is inside” per CEO remarks .

What Went Wrong

Services revenue fell sequentially to $3.9M (39% of total) from $6.1M due to timing of professional services acceptance in Q3; service gross margin moderated to 53% vs 75% in Q3 .
FY2023 GAAP loss from operations was -$11.7M, impacted by non-cash goodwill impairments of $5.8M (Q2) and $3.3M (Q3); no goodwill remains on the balance sheet .
No formal numeric guidance ranges were provided, limiting visibility on near-term revenue/margin trajectory despite positive strategic commentary .

Financial Results

Summary vs Prior Quarters (Q2 → Q3 → Q4 FY2023)

Metric	Q2 FY2023	Q3 FY2023	Q4 FY2023
Revenue ($USD Millions)	$7.324	$8.288	$10.158
Gross Profit ($USD Millions)	$4.759	$5.155	$7.393
Gross Margin %	65%	62%	73%
GAAP Net Income (Loss) ($USD Millions)	$(6.451)	$(3.684)	$1.727
GAAP EPS ($USD)	$(0.13)	$(0.07)	$0.03
Non-GAAP Income from Operations ($USD Millions)	$0.011	$0.149	$1.596
Non-GAAP Ops per Share ($USD)	$0.00	Breakeven ($0.00)	$0.03
Adjusted EBITDA ($USD Millions)	N/A	N/A	$1.659

Segment Breakdown

Segment Detail ($USD Millions)	Q2 FY2023	Q3 FY2023	Q4 FY2023
Product Revenue	$2.986	$2.183	$6.217
- License & Subscription	$2.776	$1.430	$5.917
- Hardware	$0.210	$0.753	$0.300
Service Revenue	$4.338	$6.105	$3.941
- Maintenance & Support	$3.288	$3.144	$2.477
- Professional Services & Other	$1.050	$2.961	$1.464
Total Revenue	$7.324	$8.288	$10.158

KPIs and Operating Metrics

KPI	Q2 FY2023	Q3 FY2023	Q4 FY2023
Product GM % (Quarter)	N/A	26%	85%
Service GM % (Quarter)	N/A	75%	53%
US Revenue ($USD Millions)	N/A	$4.6	$6.8
International Revenue ($USD Millions)	N/A	$3.6	$3.3
Non-GAAP Operating Expenses ($USD Millions)	$4.7	$5.0	$5.8
Cash & Cash Equivalents ($USD Millions)	$14.336	$14.498	$13.415
Marketable Securities ($USD Millions)	N/A	N/A	$1.244
Debt	None	None	None

Actuals vs Wall Street Consensus (S&P Global)

Metric	Q4 FY2023 Actual	Q4 FY2023 Consensus (S&P)	Surprise
Revenue ($USD Millions)	$10.158	N/A*	N/A
EPS (Primary, $USD)	$0.03	N/A*	N/A

*SPGI/Capital IQ Wall Street consensus for SEAC was unavailable due to missing CIQ mapping; Values retrieved from S&P Global would normally appear here.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY2024	None provided	None provided	Maintained: No formal numeric guidance
Gross Margin	FY2024	None provided	None provided	Maintained: No formal numeric guidance
Operating Expenses	FY2024	None provided	None provided	Maintained: No formal numeric guidance
EBITDA/FCF	FY2024	None provided	None provided	Maintained: No formal numeric guidance; management emphasized profitable growth focus

Note: Company did not issue formal numeric ranges in Q4 press release or the call; commentary emphasized SaaS/recurring revenue growth and strategic product launches .

Earnings Call Themes & Trends

Topic	Q2 FY2023 (Jul 31)	Q3 FY2023 (Oct 31)	Q4 FY2023 (Jan 31)	Trend
Connected TV/VIDAA	Development+ engagement underway; onboarding StreamVid customers	Selected by Fox Sports Mexico; renewed Tier 1 LATAM/EMEA; building SaaS recurring revenue	Material license fee from Connected TV product; launch of VIDAA Free leveraging Xstream; “SeaChange is inside”	Strengthening; transformational positioning
Xstream platform	N/A	N/A	Launched Xstream for content monetization, ad insertion; big-data targeting	New growth vector
StreamVid (SaaS)	Onboarding 3 customers by Q4; FIFA World Cup support	New StreamVid customers launched; building SaaS revenues	Source Digital launch (metaverse events on LG); additional EMEA media launch imminent	Expanding deployments
Revenue mix & margins	Rev $7.3M; GM 65%	Rev $8.3M; GM 62%	Rev $10.2M; GM 73%; product GM 85%, service GM 53%	Improving sequentially
Regional trends	N/A	Building Tier 1 LATAM/EMEA; renewals	US 67% ($6.8M); International 33% ($3.3M)	US mix up
Cost discipline/Impairments	Non-GAAP op income ~$0.0M; goodwill impairment $5.8M	Positive non-GAAP; goodwill impairment $3.3M	Positive GAAP and non-GAAP; goodwill fully impaired	Cleaner GAAP base

Management Commentary

CEO: “The fourth quarter marked an exceptionally strong finish... growing the top line 19% year-over-year to $32.5 million... generating positive adjusted EBITDA for the fourth quarter and fiscal year... We took our Xstream platform to a new level...” .
CEO: “If you visit nearly any Walmart, Best Buy or Costco... you will see VIDAA free TV... Your takeaway should be that SeaChange is inside.” .
President: “Launch of Xstream... designed to maximize ad revenue on connected TVs... VIDAA Free rolled out on millions of VIDAA-powered smart TVs...” .
CFO: “Q4 product gross margin was 85% vs 26% in Q3... service gross margin was 53% vs 75%... Q4 GAAP income from operations was $1.2M... cash $13.4M and $1.2M in marketable securities; no debt.” .

Q&A Highlights

Transformational nature of VIDAA: Management emphasized VIDAA as “very much transformational,” focusing resources across sales/R&D/ops to grow market share in Connected TV ad-tech .
Balance sheet and free cash flow: CFO noted $14.7M cash and cash equivalents including marketable securities and no debt, positioning for profitable growth and positive cash flows .
Team scaling and leadership: President detailed a 100+ in-house Warsaw R&D team and global ops team organized to scale quickly; recently integrated two dozen developers for VIDAA project .

Estimates Context

S&P Global Wall Street consensus for SEAC was unavailable due to missing CIQ mapping, preventing comparison to revenue and EPS estimates this quarter [SpgiEstimatesError].
Without formal external consensus, investor adjustments may rely on company’s indicated drivers: Connected TV license acceptance, recurring SaaS expansion, and product launches (Xstream, VIDAA Free) .

Key Takeaways for Investors

Q4 inflection: sequential acceleration in revenue and margin with GAAP profitability indicates improving execution; watch for sustainability beyond project-related license fees .
Mix shift toward high-margin product licenses and SaaS suggests structural margin leverage, though service revenue timing can drive quarter-to-quarter volatility .
Strategic positioning in Connected TV ad-tech (VIDAA Free, Xstream) is a credible growth catalyst; evidence of distribution scale across millions of devices supports emerging revenue streams .
Cleaned-up balance sheet (no goodwill, no debt) and solid cash provide optionality for investment or strategic actions; management continues to cite “strategic alternatives” amid industry tailwinds .
Near-term trading: absence of formal guidance and SPGI consensus may heighten sensitivity to deal timing and license recognition; monitor contract wins/renewals, SaaS deployments, and product GM persistence .
Medium-term thesis: recurring SaaS growth (StreamVid/Xstream), operator renewals across regions, and connected TV monetization should drive higher-quality revenue and margin expansion if execution persists .
Risk checks: service revenue timing, macro/inflationary cost pressures, and project concentration noted in forward-looking risk language; balanced view warranted as the model transitions .

SEACHANGE INTERNATIONAL INC (SEAC)·Q4 2023 Earnings Summary