SeaChange International, Inc.

Good afternoon and welcome to C-Change's fiscal second quarter 2023 conference call for the period ended July 31st, 2022. My name is Kevin and I'll be your operator this afternoon. Joining us from the company is Chairman and Chief Executive Officer Peter D'Aquino, President Chris Klimmer, and Chief Financial Officer Kathleen Mosher. After the market closed today, C-Change issued its financial results for the fiscal second quarter in a press release a copy of which is available in the investor section of the company's website at www.cchange.com. Before we begin today's call, I'd like everyone to please take note of the safe harbor paragraph that is included at the end of today's press release. This paragraph emphasizes the major uncertainties and risks inherent in the forward-looking statements that management will be making today. As indicated, forward-looking statements are based on management's current expectations and are subject to a number of risks and uncertainties, that may cause actual results to differ materially from expectations. These risks and uncertainties are also outlined in the company's SEC filings, including its annual report on Form 10-K and quarterly reports on Form 10-Q. Any forward-looking statements should be considered in light of these factors. Additionally, this call contains certain non-GAAP financial measures, as that term is defined by the SEC in Regulation G. Non-GAAP financial measures should not be considered in isolation from or a substitute for financial information presented in compliance with GAAP. Accordingly, C-Change has provided a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measures in the company's earnings release issue today. I'd like to remind everyone that this call is being recorded and will be made available for replay via a link available in the investor relations section of C-Change's website. Now I'd like to turn the call over to C-Change's Chairman and Chief Executive Officer, Peter D'Aquino. Sir, please proceed.

Thank you, operator. This is Peter Aquino, Chairman and CEO of SeaChange International, and I welcome all of you to our second quarter call. We had a few quarters off from having these earnings calls as we were working through a potential merger with Triller under exclusivity. As many of you know, we mutually agreed to terminate that deal this past June. But during that period, which is evidenced by the second quarter and year-to-date financial results, C-Change focused on our customers and new product development. Through solid management execution, we have improved our operations and became even stronger. We believe that job one is to improve C-Change as a standalone company, which will in turn provide more optionality as we explore our strategic alternatives to create shareholder value. While we continue to operate our core business diligently, we simultaneously committed to pivot towards software products for the future. Our revenue mix from core products only to core plus SaaS products are just now beginning to take hold. Our total revenue growth plus mix change are expected to continue to fuel organic growth for the foreseeable future. In addition, We're also targeting certain opportunities through smart M&A to accelerate this shift and gain scale. Our efforts on both fronts, organic and inorganic growth, are in full swing. Our vision is to capture the strong tailwinds in connected TVs, fast channels, streaming, and programmatic ad insertion. We can leverage our expertise in video software engineering and customer solutions to scale up way beyond linear TV. This is the movement where video operators are embracing cord cutting and creating multiple options on their own through all things streaming and over the top. We are also expert in advertising insertion into both the more traditional linear channels and now any streaming platform. Advertising in the streaming world can be more targeted and potentially even more valuable to our customers. So the good news here is that we're in the right industry with a growing TAM for these types of products. And our goal is to be on the leading edge of this movement and grow our company at the same time. Chris will walk us through how we are now complementing our core video platform and ad insertion business that supports the who's who of cable, telco, and the satellite industries. We are well into new products and services that offer these same customers, plus new logos, the best of our SaaS products. We continue to be very excited about our growing relationship with Vida and gearing up for even more expansion in fast channel software development. Later on in the call, Cathy will cover our financial performance in more detail. And the highlights of the second quarter suggest that SEEK is now a platform positioned for a step up in market share. We are debt-free, cash flow positive from operations, and we're planning to be EBITDA positive through the back half of fiscal 23, while we aggressively focus on corporate development. Our revenue growth rate for the second quarter is up 12% year-over-year and 9% sequentially. On a year-to-date basis, the financial results of C-Change reflects a massive improvement in cost control and profitable growth. And we're very excited about all these things coming together as we, again, pursue strategic alternatives from a position of strength. So at this point, let me turn the call over to our newly promoted president of C-Change, Christoph Klimmer. Chris?

Thank you, Pete. And good afternoon, everyone. Thank you for joining us today. Our mission here at C-Change is to become a recognized leading provider of technology that enables our customers to distribute and monetize their content across all relevant video channels, from linear pay TV to streaming services, connected TVs, or fast channel offerings. During the first half of fiscal year 2023, SeaChange made tremendous progress in its pursuit of this mission. Today, I'd first like to briefly reiterate our key strategic goals in more detail and then highlight how our Q2 accomplishments have moved us closer to achieving them and our broader corporate mission. Our first goal is to strengthen and expand our long-term existing customer engagements. Servicing our long-standing customers is our core competency and one of the keys to our future success. We do this primarily in two ways. First, we provide and deliver best-in-class linear pay TV, VOD, and time-shift TV products and services for Tier 1 cable companies and telco operators across the globe. Second, through rolling out continued product improvements and delivering value-add to existing customers to ensure the expansion of long-term engagements. We are especially proud that our customer TV Cable in Ecuador has entrusted us to help them monetize their FIFA World Cup 2022 rights through their SeaChange powered streaming service to ensure the best possible live experience for their subscribers and viewers of the biggest sports event in the world. I'm also very happy to report that we have had recent success towards our goal to expand engagements with existing customers and extended a contract with a major tier one customer in Latin America. resulting in substantial license revenue and a recurring support and services revenue component. Our second strategic goal is to build new and recurring license-driven SaaS revenue streams with cloud-based enablement products like StreamBit, our platform to power direct-to-consumer streaming services. We aim to accomplish this by, first, removing the streaming market entry barrier and enabling content owners to address their audiences and monetize their content catalog with a premium direct-to-consumer streaming service. Second, by building out SaaS and consumption-based business models with a scalable, cloud-based, and productized solution that generates high margin revenues and long-term engagements. And lastly, by maximizing the value of our partners' catalogs and by monetizing the content with premium subscriptions or sophisticated service-side ad insertion solutions. To that end, we were able to deliver on this strategic goal by onboarding several new Streamlit customers, with three of them set to launch by Q4 of this fiscal year. We are excited about these forthcoming launches that can drive higher margin revenue for C-Change and consumption-based upside based on the business models that we have sold them under. The company's third strategic goal is to tap into the growing video advertising tab. with a broad product portfolio that helps to maximize the value of our customers' ad inventory, both for inventory within the traditional broadcast value chain and for inventory out of the streaming world. Our products, the unified advanced advertising platform for insertions into broadcast and IP, and Xtreme, our fast channel service platform for connected TVs, help us to accomplish this through several different ways. by protecting existing and generating incremental ad revenues for linear TV by enabling automated ad sales on broadcast streams, which increases the value of underutilized inventory with real-time bidding. Next, by ensuring optimized targeting with targeted and contextual advertising that will advertise based on the content being watched or the viewer's profile, which can drive better monetization. And lastly, by enabling the distribution and monetization on connected TVs via fast channel services, including playout and ad insertion. Our progress on this goal is best demonstrated by our work with VIDA, where we help them to build out their own dedicated streaming service on the VIDA OS. VIDA and us have made significant progress on this project, which is expected to be completed later this year. Another major milestone towards capitalizing on the increasing video advertising TAM has been the recent commercial launch of an automated ad sales flow for DISH in the US. Through this new sales flow, DISH will now have the ability to sell additional broadcast ad inventory to generate a new revenue stream. Finally, our last strategic goal is to drive innovation within our industry and to help our customers to increase their reach and the viewing time per user. both of which will drive inventory value. We do this through partnerships, such as the recently announced strategic engagement with Source Digital, a provider of immersive metaverse experiences, and through in-house innovation and patent-pending technology. With a global team of industry strategists, technology sales experts, and video software engineers, we are focused on executing against these growth objectives and seeking opportunities to accelerate them through strategic partnerships. That concludes my prepared remarks. I'll now turn the call over to our new CFO, Kathy Mosher, to cover the financials. Kathy?