Tiber Ventures, Inc. (formerly known as SeaChange International, Inc.) has undergone a remarkable transformation over the past few years, emerging as a leading provider of video delivery, advertising, streaming platforms, and emerging Free Ad-Supported Streaming TV (FAST) development solutions. The company's software products and services facilitate the aggregation, licensing, management, and distribution of video and advertising content for service providers, telecommunications companies, satellite operators, broadcasters, and other content providers.

Tiber's journey has been marked by a relentless focus on improving financial performance, delivering service excellence, and executing on strategic partnerships - all of which have positioned the company for continued growth and success in the rapidly evolving video and streaming landscape.

Business Overview

Tiber's core technology provides a foundation for software products and services that can be deployed in next-generation video delivery and monetization systems capable of increased levels of subscriber activity and inventory transactions across multiple devices. The company's solutions enable its customers to cost-effectively launch and grow premium linear TV and direct-to-consumer streaming services, manage and curate their content, and monetize their offerings through innovative advertising technologies.

Tiber serves an exciting global marketplace where content access is becoming ubiquitous, and where consumption and monetization continue to transition from linear TV and subscription services to advertising-driven models on connected TVs. The company's rich product portfolio and strategic focus on maximizing its partners' advertising inventory value with services such as targeting, personalization, and multi-screen engagement have positioned Tiber well to expand its market share in the booming global video advertising and streaming markets.

Tiber's software products and services are designed to empower video providers to create, manage, and monetize the increasingly personalized, highly engaging experiences that viewers demand. Using Tiber's products and services, customers can increase revenue by offering services such as video-on-demand (VOD) programming on a variety of consumer devices, including televisions, smart phones, PCs, tablets, and over-the-top streaming players. Tiber's solutions enable service providers to offer other interactive television services that allow subscribers to receive personalized services and interact with their video devices, thereby enhancing their viewing experience.

Financials

Tiber's financial performance in fiscal year 2023 was impressive, with the company exceeding its key goals. Total revenue for the fiscal year increased 19% to $32.5 million, up from $27.3 million in the prior year. This growth was driven primarily by a 39.9% increase in service revenue, which reached $18.3 million, compared to $14.3 million in fiscal 2022.

Product revenue also saw an increase, rising 9% to $14.2 million, or 44% of total revenue, compared to $13 million, or 48% of total revenue, in the prior year. The improvement in product revenue was primarily due to increases in licensing revenue.

Tiber's gross profit margin expanded to 63% in fiscal 2023, up from 60% in the previous year. This was driven by a 62% service gross margin, compared to 50% in fiscal 2022, partially offset by a decrease in product gross margin from 70% to 65%.

On the bottom line, Tiber reported a GAAP net loss of $11.4 million, or $0.23 per diluted share, for the fiscal year. This included a non-cash goodwill impairment charge of $9.1 million. Excluding this one-time charge, the company's non-GAAP income from operations was $0.3 million, or $0.01 per diluted share, a significant improvement from the $4.3 million loss, or $0.09 per diluted share, in the prior year.

Tiber's balance sheet remains strong, with $13.4 million in cash and cash equivalents and no debt as of the end of fiscal 2023. The company's current ratio stood at 3.51, indicating a healthy liquidity position.

Operational Highlights

Tiber's operational performance in fiscal 2023 was marked by several key achievements:

1. Successful execution of a transformative development project with VIDAA, a leading smart TV operating system provider. Tiber's in-house team of over 100 software developers in Warsaw, Poland, played a crucial role in developing VIDAA's future streaming platform, which is now being rolled out globally on millions of Hisense smart TVs.

2. Renewal and upgrade of multiple contracts with Tier 1 and Tier 2 video and broadband operators in North America, Europe, the Middle East, and Africa (EMEA), and Latin America, demonstrating the company's ability to deliver value-added services and maintain long-standing customer relationships.

3. Launch of Xstream, Tiber's cloud-based content monetization platform designed to maximize advertising revenue on connected TVs. Xstream leverages Tiber's expertise in video delivery and advertising technology to help content owners and operators capitalize on the shift towards free, ad-supported streaming.

4. Collaboration with Source Digital to integrate the company's metaverse and interactive video platform onto Tiber's StreamVid platform, enabling immersive and personalized user experiences for live events and other digital content.

5. Continued investment in talent and expertise, with a focus on expanding Tiber's in-house software development capabilities and field engineering services to support customer deployments and ongoing operations.

Geographic and Segment Performance

Tiber's international revenue, which includes markets outside of North America, accounted for 44% of total revenue in fiscal 2023, up from 43% in the prior year. This growth was driven by a 22% increase in international service revenue, which offset a slight decline in international product revenue.

In the United States, revenue grew 17% to $18.1 million, or 56% of total revenue, compared to $15.5 million, or 57% of revenue, in fiscal 2022. This increase was primarily due to higher product revenue, which offset a slight decline in U.S. service revenue.

Outlook

Tiber's management team is optimistic about the company's future prospects, citing two key growth catalysts:

1. The continued expansion of the connected TV market, driven by the shift in consumer behavior towards streaming on larger screens. Tiber is well-positioned to help content owners and operators realize their connected TV strategies and optimize monetization opportunities.

2. The growing consumer preference for free, ad-supported content over subscription-based models. Tiber's differentiated technology, including its Xstream platform and ad insertion solutions, places the company in an excellent position to capture market share in this rapidly expanding sector.

To capitalize on these trends, Tiber's strategic priorities include:

- Continuing to strengthen relationships with its long-standing video and broadband operator customers through product upgrades, value-added services, and new innovative offerings. - Expanding its recurring and SaaS-based revenue streams by securing higher-margin deals and co-developing solutions with partners like VIDAA. - Investing in research and development to maintain its technological edge and deliver new products and services that address the evolving needs of the video and streaming industry. - Exploring strategic alternatives to accelerate the company's growth and enhance shareholder value.

Conclusion

Tiber Ventures, Inc. has undergone a remarkable transformation, transitioning from a legacy video software provider to a leading player in the connected TV and streaming landscape. The company's strong financial performance, operational excellence, and strategic partnerships have positioned it for continued growth and success in the rapidly evolving video and advertising markets.

With a focus on delivering innovative solutions, expanding its recurring revenue streams, and exploring strategic opportunities, Tiber is well-positioned to capitalize on the industry's key growth drivers and create value for its shareholders in the years to come.