Optiva Inc.

For the three months ended December 31, 2022, revenue was $15.1 million. Gross margin was 70%, down from 75% in Q4 2021, mainly due to a mix shift toward lower-margin customization work and lower support/subscription revenue. Adjusted EBITDA was $3 million, representing a 20% margin for the quarter and the 10th consecutive quarter at or above 20% adjusted EBITDA margin. Net loss was $1.5 million versus a net loss of $3.3 million in the same period last year; excluding warrant revaluation, net loss was also $1.5 million versus $2.5 million last year. Operating expenses fell to $9 million from $10.7 million, and cash at quarter-end was $20.3 million. The company did not give next-quarter or full-year earnings guidance and said it does not anticipate providing guidance in future quarterly or interim communications.

John Giere framed 2022 as a year of progress, citing $91.7 million in TCV sales, a growing pipeline of new logos, and continued customer willingness to consider commercial cloud business models. He said the company renewed two consumption-based deals tied to public cloud deployments and emphasized that cloudification and 5G rollouts are creating market catalysts for new BSS charging opportunities. His tone was constructive but cautious, noting that stabilizing legacy revenue remains challenging and that macro uncertainty is affecting customer behavior.

Dinesh Sharma focused on the quarter’s revenue mix and expense discipline. He said revenue declined to $15.1 million, with support and subscription down $2.8 million, software and services up $1.8 million, and third-party software/hardware down $0.1 million; gross margin was 70% versus 75% a year ago. He also cited lower operating expenses, with total operating expenses at $9 million, adjusted operating costs at $7.6 million, sales and marketing at $2.5 million, G&A at $3.4 million, and R&D at $3 million. He highlighted $3 million of adjusted EBITDA and cash of $20.3 million at quarter-end.

There was no Q&A session on the call, so no analyst questions were addressed. Management did, however, proactively state that it will not provide earnings guidance going forward in quarterly or interim communications. The key discussion points instead centered on cloud migration, 5G-driven demand, legacy revenue stabilization, and the effect of macro uncertainty on customer decisions.