SeaChange International, Inc.

Good afternoon and welcome to C-Change's fiscal third quarter 2023 conference call for the period ended October 31, 2022. My name is Shamali and I will be your operator this afternoon. Joining us from the company is Chairman and Chief Executive Officer Peter D. Aquino, President Chris Clemmer, and Chief Financial Officer Kathleen Mosher. After the market closed today, C-Change issued its financial results for the fiscal third quarter in a press release. a copy of which is available in the Investors Success section of the company's website at www.cchange.com. Before we begin today's call, I would like everyone to please take note of the safe hard work 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 SEC and Regulation G. Non-GAAP financial measures should not be considered in isolation from or as a substitute for financial information presented in compliance with GAAP. Accordingly, C-Change has provided a reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures in companies' earnings release issue today. I would 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. Good afternoon, everyone. This is Peter Aquino, Chairman and CEO of C-Change International, and welcome to our third quarter call. Our momentum to strengthen our software platform continues, and we're now hitting on all cylinders. Revenue growth was very strong, up 16% year-over-year and 13% sequentially. Profitability and cash generation continues as we record another quarter of positive EBITDA and increase our cash balance to nearly $15 million with no debt on the balance sheet. And our new SaaS and fast channel software products are now taking hold. and producing incremental growth revenues now reflected in this quarter. Our transition towards providing our customers with streaming services and software to support their smart TV operating systems, such as the project we announced last quarter with Vita and Hisense, is clearly the momentum that we could build on. All of this is now translating into improved financial performance for C-Change, resulting in double-digit revenue growth. We continue to leverage our embedded expertise in video and ad tech to power over-the-top services for all of our customers. Our rich history of supporting MSOs, telcos, and content owners allows us to upsell many of our customers with IP-based services that ride increasingly advanced broadband networks, not only in the U.S., but around the globe. Streaming content over wireless or wireline is being powered by SeaChange in North and South America, Europe, and EMEA. We are truly an international software company with the bulk of our 100 plus software engineers working out of our office in Warsaw, Poland. And we're so very proud of our team there, as well as all of our employees around the world. Many of our customers in the who's who of the video industry are depending on us to seamlessly enable their move to the streaming world while we diligently support their large deployments of traditional VOD and ad insertion. Our embedded core business produces great baseline of cash flow as we reinvest that same expert team into everything streaming for connected devices. This is our future. This quarter is a great example of the impact of our revenue composition shift towards growth products. For example, new StreamVid sales to content owners and software development for Vita specifically contributed towards our high value mix, accounting for over 70% of new sales this quarter. We are managing our go-to-market efforts to continue to sell growth products. SaaS and streaming software products are not only high value in terms of expected multiples for these revenues, but tend to be more recurring in nature as well which is a great business model. In addition, C-Change's progress and consistent revenue growth while right-sizing our cost structure has been fueling better cash flow. And this is exactly the profile that we've been striving for. And we could do even better. Our effort to promote profitable organic growth continues to be job number one. Simultaneously, we continue to look for ways to be opportunistic to gain scale We continue to explore strategic and transforming ideas, as well as commercial opportunities with players in our space. Market timing for M&A is very difficult for most at this time in this current environment, but we will aim to be prepared when the opportunity to transact arises. The good news is that C-Chain has a strong liquidity profile and a relevant video platform to sell and support. This allows us to execute our organic program without much disruption. And as most would agree, the best time to discuss strategic alternatives and maximize values when the company is in a position of strength, along with improved capital markets. In the meantime, we have a large TAM and tailwinds in our favor for what sea change delivers, and we aim to capture as many opportunities as possible to keep sea change moving in the right direction. So with that, let me pass the call over to our president, Chris Clemmer, to take a deeper dive into our operations. Chris?

Thank you, Pete, and good afternoon, everyone. Thanks for joining us today. Q3 was yet another strong quarter for C-Change as we continue to grow our top line and transition our business to a more sustainable level of profitability while delivering increased value to our new and existing customers. During Q3, we continue to execute on our strategic growth plan centered around three main pillars. First, renewing and strengthening long-term relationships with our existing base of long-standing TV operator customers, which has resulted in multiple long-term support renewals and several system upgrade bookings. Second, increasing our recurring revenue baseline with high margin SaaS based deals. And third, creating a new and extended product portfolio and services that can help our customers maximize their returns across all TV and streaming channels, while also increasing end user stickiness and engagement. Since our last call in September and in line with our strategic growth plan, we have executed on numerous accomplishments, which I want to spend a couple of minutes highlighting. As we announced last week, SeaChange was selected by Fox Sports Mexico to power their next generation streaming service with our comprehensive streaming enablement platform, StreamVid. We believe we won this deal as we have the best technology to support Fox Sports Mexico's three key business objectives, which include maximizing content monetization with flexible subscription packages and targeted advertising, retaining existing and acquiring new customers, with the highest quality of service on all major device platforms, as well as increasing user engagement by improving user experience and simplifying content discovery. For those of you newer to our company, Streamvid is a cloud-based, over-the-top or OTT streaming enablement platform that provides content owners the ability to deliver unique, highly scalable and personalized streaming services and to handle rapid user growth. Our new partnership with Fox Sports Mexico serves as further validation of not only the growing need for a platform like StreamVid, but also of C-Change's unique capabilities in the market. This agreement with Fox Sports Mexico is a software as a service engagement, where C-Change will benefit from Fox's success in growing their viewership base and increasing their subscription and ad revenues. It therefore supports our strategy of growing higher margin and recurring revenues. Speaking with the topic of sports, we recently expanded our services agreement with Grupo TV Cable, the leading cable provider in Ecuador, to help support the streaming of the FIFA World Cup event in Qatar. Our cloud-architected technology has proven to enable Grupo TV Cable to support large increases in concurrent subscriber load, and combines with our ability to enable an engaging sports experience with our flexible user interface. Lastly, we have completed a major development phase for VIDA, the leading provider of operating systems for connected TVs, in an ongoing project to help them build out their own dedicated streaming and free ad-supported streaming TV, or FAST, services. As a result of completing this major phase, VIDA can now launch the C-Change-based streaming service on the millions of VIDA-powered connected TVs across the world, providing a premium experience for connected TV viewers and outstanding monetization options with C-Change's ad insertion service for targeted ad insertions across fast channels. We expect VIDA's use of the SeaChange-based streaming service to be launched no later than Q1, with a potential impact to revenue as soon as Q4. Now, looking ahead at the outlook and future growth opportunities for SeaChange, I'd like to point out two major organic growth catalysts we are focused on. The first catalyst is growth in the connected TV market. As we've seen in recent trends, consumer eyeballs continue to shift towards streaming on connected devices, and especially to the large screen. In this paradigm shift, there's growing demand for technology vendors like SeeChange that can help content owners realize their connected strategies and optimize their monetization opportunities. We believe our long-standing relationship with many Tier 1 operators as well as our growing international footprint with content owners, including positive reference cases, make us an ideal partner for many of these players. The second catalyst involves advertising. In addition to the consumer shift towards streaming on connected TVs, we've also seen a trend in consumers shifting away from subscription-based business models to free ad-supported content. we believe that with our unique technology to help operators and content owners alike to protect existing and build incremental ad revenue streams we are extremely well positioned to grow our market share in this growth sector of our industry by extending our product and service portfolio for existing customer base and by winning new logos that adopt ad-based business models we can begin to increase our market share and capitalize on this new growth sector, driven by changes in consumer preferences. That concludes my prepared remarks. I'll now turn the call over to our CFO, Kathy Mosher, to cover the financials. Kathy?