Fiscal Second Quarter 2021 Earnings Conference Call - Yossi Aloni, Chief Executive Officer Chad Hassler, Chief Commercial Officer Michael Prinn ...

Fiscal Second Quarter 2021 Earnings Conference Call
Yossi Aloni, Chief Executive Officer
Chad Hassler, Chief Commercial Officer
Michael Prinn, Chief Financial Officer
September 8, 2020

Safe Harbor
During the course of this presentation, we will provide projections and other forward-looking statements regarding
future events or the future financial performance of SeaChange International, Inc. (the Company), including
expectations concerning our business strategy for this year and beyond. Such statements are only current expectations
and actual events or results may differ materially. We refer you to the Company’s filings with the SEC, particularly our
most recent Reports on Form 10-K, Form 10-Q and Form 8-K. These documents identify important risk factors that could
cause actual results to differ materially from our projections or other forward-looking statements. We will also present
financial metrics determined on a “non-GAAP” basis. These items, together with the corresponding GAAP numbers and
a reconciliation to GAAP, are contained in this presentation and the related earnings press release on our website at
www.seachange.com/about/news-events/.

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Presenters

              Yossi Aloni             Chad Hassler              Michael Prinn
                  CEO                       CCO                        CFO
        Previously                Previously                Previously
        CCO, Euronext: ATEME SA   VP North America, ATEME   VP Finance, Brightcove

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Q2 and First Half FY21 Highlights
• Secured one new Framework win with a                         Total Revenue
                                                                            $62.9M
  U.S.-based regional cable TV provider                                               $51.7M

                                              $27.3M

• Cost-optimization measures produced a                     $11.9M

  9% sequential decrease and 31% y/o/y                 1H                           TTM

  decrease in opex in Q2-21                            Non-GAAP Op. Expenses
                                                                            $51.3M
• Expanded relationship with AWS that                                                 $37.5M

  provides Framework with machine             $11.5M        $8.0M

  learning services and new functionalities            Q2                           TTM

                                                             Revenue Backlog
• Solid cash position: $9.8M                                               $20.9M
                                                             $16.0M

                                                                      Q2

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Revolutionizing the TV Advertising Industry
  • SeaChange’s technology is positioned to revolutionize the TV advertising
    industry by enhancing providers’ ability to monetize the approximately $10B
    of TV ads that go unsold annually without the need for salespeople through
    our automated auction platform called Unsold

  Advertiser                      Ad Agency                                                   Operator Sales Team                                      Operator
                                                                                                                                                       Headend

                                   Create & store Ads        Manual Ad delivery                    Define Ad Placement            Insert Ads, Deliver Ads to          Ad Playout Verification
 Purchase Ad Inventory
                                   Build Ad Campaign                                               Rules, Generate Bills                 Subscribers                      and Reporting

                                                        Demand Side Platform
                                                                                                                                     Ad Management
                                                              Store Ad Assets,      Automated          Define Ad Placement Rules, Generate Bills, Insert Ads, Deliver Ads to Subscribers
                                                            Interface with Seller   Ads delivery                           Ad Playout Verification and Reporting

Buy: Subscriber views
Sell: Empty Ad Slot, Subscriber eyeballs                                   Buy Side            Sell Side

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SeaChange Framework Expansion
• Framework traction:                                           Cumulative Significant
   • 29 significant new wins since March 2019                     Framework Wins
   • $62 million total contract value (TCV)                                                29
   • Multi-year deals = predicable/recurring revenues                              26

• Expanding pipeline and interest in Framework:
   •   Reduced and predictable OPEX
                                                                           15
   •   Monetizing existing install base
   •   Expanding service offerings and platforms
                                                                   7
   •   Cloud based, managed or localized deployment
   •   Simplicity of the engagement                      1

                                                        Q1-20     Q2-20   Q3-20   Q4-20   Q2-21

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Financial Performance
                      Total Revenue                              Non-GAAP Operating Income/(Loss)
                                           $62.9M
                                                    $51.7M        $1.0M

                                                                                                                -$0.3M
     $18.8M                                                                    -$5.1M
                                                                                                       -$8.0M
                   $5.0M

              Q2                                TTM                       Q2                                TTM
                            FY20    FY21                                                FY20    FY21

                    Revenue Backlog                                                Gross Margin
                                       $20.9M                                                                       66%
                   $16.0M                                          58%                                  57%

                                                                                36%

                               Q2                                         Q2                                  TTM
                            FY20    FY21                                                 FY20   FY21
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Key Takeaways
✓ $250M technology investment and proven go-to-market strategy
  has positioned company as The Video Delivery Platform Leader
  with a unique linear ad monetization solution

✓ 29 Framework wins totaling $62M in total contract value

✓ Expanding backlog and multi-year deals provide revenue visibility

✓ Optimized cost structure and cash position enable company to
  execute growth strategy

✓ Positive outlook for growth in second half of FY21 and into FY22

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Q&A

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