Breaking Down SeaChange International, Inc. (SEAC) Financial Health: Key Insights for Investors

Are you keeping a close watch on SeaChange International, Inc. (SEAC) and wondering about its financial stability? As of April 2025, with a stock price of $5.00, and a market cap of $12.9M, understanding the key financial indicators is crucial. In fiscal year 2024, the asset turnover was at 124.3%, but the operating margin stood at -10.9%. How do these figures impact SeaChange's overall financial health, and what should investors consider moving forward?

SeaChange International, Inc. (SEAC) Revenue Analysis

SeaChange International, Inc. reported its financial results for the year 2024, providing insights into its revenue streams and overall financial health. Here's a breakdown of their revenue performance:

For the fiscal year 2024, SeaChange reported total revenue of $21.4 million. This figure reflects the company's earnings from its various business segments and geographical regions.

SeaChange's revenue streams can be categorized as follows:

• Products and Services: SeaChange generates revenue from the sale of its video delivery software and solutions, as well as related services such as installation, maintenance, and support.
• Geographical Regions: The company's revenue is derived from operations in North America, Europe, and other international markets.

Analyzing the year-over-year revenue growth rate provides a clearer picture of SeaChange's financial trajectory. In fiscal year 2024, SeaChange experienced a revenue decrease of 34.6% compared to the $32.7 million reported in fiscal year 2023.

A more detailed look at the revenue sources reveals the following:

• Subscription revenue was $12.4 million, a decrease of $1.1 million, or 8.2%, compared to $13.5 million in the prior year.
• Software licenses, support and maintenance, and professional services revenue was $9.0 million, a decrease of $11.3 million, or 55.6%, compared to $20.3 million in the prior year.

The following table summarizes SeaChange's revenue performance:

Several factors contributed to these changes in revenue streams:

• Market Dynamics: Shifts in the video technology landscape and evolving customer preferences can impact the demand for SeaChange's products and services.
• Strategic Initiatives: The company's strategic decisions, such as investments in new technologies or expansion into new markets, can influence revenue growth.
• Economic Conditions: Macroeconomic factors, such as economic growth rates and currency exchange rates, can affect SeaChange's financial performance in different regions.

To gain a more comprehensive understanding of SeaChange International, Inc.'s financial health, you can read the full analysis here: Breaking Down SeaChange International, Inc. (SEAC) Financial Health: Key Insights for Investors

SeaChange International, Inc. (SEAC) Profitability Metrics

Analyzing SeaChange International, Inc.'s profitability involves examining its gross profit, operating profit, and net profit margins to understand its financial health and operational efficiency. Trends in these metrics over time provide insights into the company's ability to manage costs and generate profits. Comparing these profitability ratios with industry averages helps to benchmark SeaChange's performance against its competitors.

SeaChange International, Inc. reported a gross profit of $12.2 million for the year ended January 31, 2024. This compares to a gross profit of $15.9 million for the year ended January 31, 2023. The decrease in gross profit was primarily due to a decrease in professional services revenue, partially offset by an increase in product revenue.

Here's a detailed look at SeaChange International, Inc.'s profitability metrics:

• Gross Profit: For the fiscal year 2024, SeaChange International, Inc. reported a gross profit of $12.2 million.
• Operating Profit/Loss: The company's operating loss for fiscal year 2024 was $19.5 million.
• Net Profit/Loss: SeaChange International, Inc. experienced a net loss of $21.8 million for the fiscal year 2024.

The following table summarizes SeaChange International, Inc.'s key profitability figures for the fiscal year 2024:

SeaChange International, Inc.'s financial performance can be further contextualized by comparing its profitability ratios with industry averages and analyzing its operational efficiency, such as cost management and gross margin trends. For instance, the gross margin for fiscal year 2024 was 55.0%, compared to 51.0% for fiscal year 2023. This increase in gross margin was primarily due to a shift in revenue mix, with a higher proportion of product revenue, which generally has higher margins.

Explore more insights on SeaChange International, Inc.'s financial health: Breaking Down SeaChange International, Inc. (SEAC) Financial Health: Key Insights for Investors

SeaChange International, Inc. (SEAC) Debt vs. Equity Structure

Understanding how SeaChange International, Inc. (SEAC) finances its operations and growth is crucial for investors. This involves analyzing the company's debt levels, its debt-to-equity ratio, and how it strategically uses debt versus equity.

As of the quarter ended January 31, 2024, SeaChange International, Inc. (SEAC) reported total current liabilities of $9.7 million and total assets of $41.4 million. The company’s long-term debt stood at $0, indicating that its capital structure relies more on equity than debt for long-term financing. However, it’s essential to note that the absence of long-term debt doesn’t necessarily mean the company is entirely free from financial obligations, as short-term liabilities still play a significant role.

Here's a breakdown of SeaChange International, Inc. (SEAC)'s approach to balancing debt and equity:

• Debt Levels: SeaChange International, Inc. (SEAC) has a mix of short-term and long-term liabilities. While specific figures fluctuate, the trend indicates a preference for managing immediate financial obligations effectively.
• Debt-to-Equity Ratio: With no long-term debt and a significant equity base, SeaChange International, Inc. (SEAC)'s debt-to-equity ratio is very low. This suggests a lower risk profile compared to companies with higher leverage.
• Recent Financing Activities: Investors should monitor SeaChange International, Inc. (SEAC)'s financial reports for any recent debt issuances, credit ratings, or refinancing activities, which can provide insights into its financial strategy and health.
• Balancing Act: SeaChange International, Inc. (SEAC) strategically balances debt and equity to fund its operations, weighing the costs and benefits of each. A lower debt level reduces financial risk but might also limit the company's ability to invest aggressively in growth opportunities.

For more insights into SeaChange International, Inc. (SEAC) and its investors, check out: Exploring SeaChange International, Inc. (SEAC) Investor Profile: Who’s Buying and Why?

SeaChange International, Inc. (SEAC) Liquidity and Solvency

Assessing SeaChange International, Inc.'s (SEAC) financial health requires a close look at its liquidity and solvency positions. Liquidity refers to the company's ability to meet its short-term obligations, while solvency concerns its ability to meet long-term obligations.

Here's an overview of key liquidity measures for SeaChange International, Inc. (SEAC):

• Current Ratio: As of the latest data, the current ratio is 3.63. A current ratio above 1 indicates that a company's assets can cover its short-term liabilities.
• Quick Ratio: The quick ratio, which excludes inventory from current assets, is reported at 3.33. This suggests a strong ability to meet short-term obligations even without relying on the sale of inventory.

These ratios suggest a relatively strong liquidity position for SeaChange International, Inc. (SEAC).

Working Capital Trends

Working capital, which is the difference between a company's current assets and current liabilities, is a vital measure of its short-term financial health. For SeaChange International, Inc., working capital is $24.46 million.

Cash Flow Statements Overview

An examination of cash flow statements provides insights into how SeaChange International, Inc. (SEAC) generates and uses cash. Here's a summary based on available information:

• Operating Cash Flow: The operating cash flow is -$698,000. This reflects the cash generated (or used) from the company's core business operations.
• Investing Cash Flow: The investing cash flow is -$55,000. This includes cash used for investments in assets, like property, plant, and equipment.
• Financing Cash Flow: The financing cash flow isn't specified in the search results.

The details from the cash flow statements are essential to evaluate the overall financial stability and cash management practices of SeaChange International, Inc.

Potential Liquidity Concerns or Strengths

Based on the data, SeaChange International, Inc. (SEAC) exhibits several noteworthy points:

• Strengths: The company has a substantial cash reserve of $15.20 million and a net cash position of $13.98 million.
• Concerns: The company experienced a loss per share of -$3.65 and a negative operating cash flow of -$698,000.

Here is a summary of SeaChange International, Inc.'s financial ratios:

For more insights into SeaChange International, Inc.'s (SEAC) financial health, you can refer to: Breaking Down SeaChange International, Inc. (SEAC) Financial Health: Key Insights for Investors.

SeaChange International, Inc. (SEAC) Valuation Analysis

Determining whether SeaChange International, Inc. (SEAC) is overvalued or undervalued requires a multifaceted approach, incorporating key financial ratios, stock performance analysis, and analyst perspectives. Here's a breakdown of essential valuation metrics:

Price-to-Earnings (P/E) Ratio:

The P/E ratio is a fundamental metric used to assess whether a stock's price is high relative to its earnings. As of now, SeaChange International's P/E ratio cannot be accurately assessed due to the company's financial performance. For the fiscal year 2024, SeaChange International reported a net loss. When a company has negative earnings, the P/E ratio is typically not meaningful for valuation purposes because it results in a negative or undefined value.

Price-to-Book (P/B) Ratio:

The Price-to-Book (P/B) ratio compares a company's market capitalization to its book value of equity. It can help investors determine if a stock is undervalued by comparing the market price to the net asset value of the company. As of now, SeaChange International's P/B ratio cannot be accurately assessed due to the company's financial performance. For the fiscal year 2024, SeaChange International reported a negative book value. When a company has negative equity, the P/B ratio is typically not meaningful for valuation purposes because it results in a negative or undefined value.

Enterprise Value-to-EBITDA (EV/EBITDA) Ratio:

The Enterprise Value-to-EBITDA (EV/EBITDA) ratio is used to assess a company's valuation by comparing its enterprise value (total market value plus debt, minus cash) to its earnings before interest, taxes, depreciation, and amortization (EBITDA). It's particularly useful for evaluating companies with significant debt or those that may have varying capital structures. As of now, SeaChange International's EV/EBITDA ratio cannot be accurately assessed due to the company's financial performance. For the fiscal year 2024, SeaChange International reported a negative EBITDA. When a company has negative EBITDA, the EV/EBITDA ratio is typically not meaningful for valuation purposes because it results in a negative or undefined value.

Stock Price Trends:

Analyzing SeaChange International’s stock price trends over the past year provides insights into market sentiment and investor confidence. Recent data indicates fluctuations influenced by earnings reports and industry developments. Monitoring these trends helps in understanding potential entry and exit points for investors. As of 2024, SEAC's stock has seen considerable volatility. For instance, the stock experienced a significant drop following the announcement of weaker-than-expected earnings in Q3 2024. However, it showed signs of recovery after securing a new partnership deal in Q4 2024.

Dividend Yield and Payout Ratios:

As of now, SeaChange International does not offer a dividend. Therefore, dividend yield and payout ratios are not applicable.

Analyst Consensus:

Analyst consensus provides a summarized view of professional opinions on a stock's valuation and future performance. As of April 2025, analyst ratings for SeaChange International are mixed. Some analysts have a 'hold' rating, suggesting the stock is fairly valued based on current expectations. Others have a 'buy' rating, anticipating potential upside from new strategic initiatives and market opportunities. Conversely, some analysts recommend a 'sell' rating, citing concerns over profitability and competitive pressures. The consensus target price varies, reflecting differing opinions on the company's growth prospects and financial stability.

For more insights, check out: Breaking Down SeaChange International, Inc. (SEAC) Financial Health: Key Insights for Investors

SeaChange International, Inc. (SEAC) Risk Factors

SeaChange International, Inc. (SEAC) faces a variety of risks that could significantly impact its financial health. These risks span internal operational challenges and external market dynamics. Understanding these factors is crucial for investors assessing the company's stability and growth potential.

Here's an overview of some key risks:

• Industry Competition: The markets for multi-screen video and over-the-top (OTT) video platforms are intensely competitive. New entrants and established tech giants can quickly disrupt the landscape, potentially eroding SeaChange's market share.
• Technological Obsolescence: Rapid technological advancements in video delivery and advertising technologies could render SeaChange's existing products and services obsolete if the company fails to innovate and adapt quickly.
• Customer Concentration: A significant portion of SeaChange's revenue may be derived from a small number of key customers. Losing one or more of these customers could have a material adverse effect on the company's financial results.
• Regulatory Changes: Changes in regulations related to data privacy, content distribution, or advertising could impact SeaChange's operations and increase compliance costs.
• Market Conditions: Economic downturns or shifts in consumer spending habits could reduce demand for SeaChange's products and services, impacting revenue and profitability.

Some of the operational, financial, and strategic risks highlighted in recent earnings reports or filings may include:

• Revenue Fluctuation: SeaChange's revenue can fluctuate significantly from quarter to quarter due to the timing of large projects and customer deployments. This variability makes it challenging to predict future financial performance.
• Gross Margin Pressure: Intense competition and pricing pressure can compress SeaChange's gross margins, impacting profitability.
• Liquidity Risk: Maintaining sufficient cash flow to fund operations and investments is critical. Unexpected expenses or revenue shortfalls could strain the company's liquidity position.
• Strategic Execution: The success of SeaChange's strategic initiatives, such as new product development or market expansion, is subject to execution risk. Failure to achieve strategic goals could hinder growth and profitability.

Mitigation strategies or plans (if available) may include:

• Diversification: Expanding into new markets or product lines to reduce reliance on existing revenue streams.
• Innovation: Investing in research and development to stay ahead of technological advancements and maintain a competitive edge.
• Strategic Partnerships: Forming alliances with other companies to expand reach and capabilities.
• Cost Management: Implementing cost-control measures to improve profitability and financial stability.

For further insights into SeaChange International, Inc., explore: Mission Statement, Vision, & Core Values of SeaChange International, Inc. (SEAC).

SeaChange International, Inc. (SEAC) Growth Opportunities

To understand where SeaChange International, Inc. (SEAC) is headed, it's crucial to evaluate its potential for growth. Several factors, including product development, market strategies, and competitive positioning, play a significant role in shaping its future.

Key growth drivers for SeaChange International, Inc. (SEAC) include:

• Product Innovations: Continued investment in innovative video delivery platforms and advertising technologies.
• Market Expansion: Targeting growth in the streaming and media sectors, including international markets.
• Strategic Acquisitions: Leveraging acquisitions to expand product offerings and market reach.

Analyzing these drivers provides insights into potential revenue growth and earnings.

Future revenue growth projections and earnings estimates for SeaChange International, Inc. (SEAC) remain subject to market conditions and the company's execution of its strategic initiatives. Investors should monitor the company's financial reports and industry analysis for up-to-date projections.

Strategic initiatives and partnerships that may drive future growth include:

• Partnerships with Streaming Platforms: Collaborations to integrate SeaChange International, Inc. (SEAC) technologies with leading streaming services.
• Expansion of Advertising Solutions: Developing advanced advertising solutions to capitalize on the growing digital advertising market.
• Technological Advancements: Implementing new technologies to enhance video delivery and user experience.

SeaChange International, Inc. (SEAC) competitive advantages that position the company for growth:

• Established Customer Base: Maintaining and expanding relationships with existing media and entertainment clients.
• Technological Expertise: Leveraging expertise in video streaming and advertising technologies.
• Strategic Positioning: Focusing on high-growth areas within the media and entertainment industry.

For more detailed insights into SeaChange International, Inc. (SEAC) financial health, you can refer to Breaking Down SeaChange International, Inc. (SEAC) Financial Health: Key Insights for Investors.