• In the fourth quarter, BT Group, the UK’s leading fixed and mobile telecommunications provider, extended its strategic partnership with Optiva to develop and monetize new B2B, B2C and B2B2X services. Optiva’s application server, a key component of the Optiva Charging Engine, will be upgraded to a next-generation, cloud-native, open architecture service creation platform. It will include Optiva’s Open API framework, enabling integration with new cutting-edge technology partners, including blockchain and artificial intelligence (AI) tools. BT Group needs a fully flexible service creation environment that enables rapid design, testing and deployment of new services, which Optiva will provide, allowing BT to achieve its business objectives across a wide variety of industries and use cases.
  

• Revenue for Q4’23 was $12.0 million. On a year-over-year basis, the change by revenue type included a $1.8 million decrease in support and subscription revenue, a $1.3 million decrease in software and services revenue, and third-party software and hardware revenue remained unchanged. The year-over-year decline in support and subscription reflects the run-off of a few customers who had previously notified the company of their intentions to replace Optiva. The drop in software and services is mainly due to fewer software implementations, primarily in the EMEA region, compared to the prior period.
  

• Gross margin for Q4’23 was 63% compared to 70% during the same period in 2022. The decline in gross margin is primarily attributable to lower revenue from high-margin license and support and subscription revenue, along with customizations with lower margins ordered by customers that required fulfillment, compared to the previous period. We expect that our gross margins may fluctuate as we prove our cloud-native model and product capabilities to new and existing customers when they onboard the public or private cloud in future periods.
  

• General and administrative expenses (“G&A”) decreased to $3.1 compared to $3.4 million during the same period in 2022. During the quarter, a provision was recorded in the amount of $1.1 million for an unbilled amount related to a legacy customer contract. The Company continues to have a strong relationship with the customer and is working towards executing a new contract. Excluding the provision, the G&A expenditures decreased to $2.0 million compared to $3.4 million last year. The decrease in G&A expenditures in the three months ended December 31, 2023 is mainly due to lower share-based compensation and lower amortization costs.
  

• Adjusted Earnings before interest, taxes, depreciation and amortization ("EBITDA")¹ for Q4’23 decreased to a loss of $1.8 million as compared to income of $3.0 million during the same period in 2022, primarily driven by lower revenue and gross margin.
  

• Net loss for Q4’23 was $4.0 million compared to a net loss of $1.5 million during the same period in 2022.
  

• The Company ended the fourth quarter with a cash balance of $20.4 million (including restricted cash). The Company used $0.9 million of cash from operating activities during the quarter.
  

(1) EBITDA, Adjusted EBITDA, TCV and adjusted EPS are non-IFRS measures. These measures are defined in the "Non-IFRS Financial Measures" section of this news release.

Non-IFRS Measures

“EBITDA" and "Adjusted EBITDA" are not financial measures calculated and presented in accordance with International Financial Reporting Standards (IFRS) and should not be considered in isolation or as a substitute to net income (loss), operating income or any other financial measures of performance calculated and presented in accordance with IFRS, or as an alternative to cash flow from operating activities as a measure of liquidity. The Company defines EBITDA as net income (loss) excluding amounts for depreciation and amortization, other income, finance costs, finance income, income tax expense (recovery), foreign exchange gain (loss) and share-based compensation. The Company defines "Adjusted EBITDA" as EBITDA (as defined above), excluding restructuring costs, one-time provision amounts and other one-time unusual items. The Company believes that Adjusted EBITDA is a metric that investors may find useful in understanding the Company's financial position. The following table provides a reconciliation of Net Income to EBITDA and Adjusted EBITDA (in thousands of U.S. dollars).

Adjusted EPS is reported diluted EPS excluding the impact of change in the fair value of warrants, release of provisions and other one-time unusual items.

TCV is the Total Contract Value of all bookings closed in the period.

About Optiva

Optiva Inc. is a leader in powering the telecom industry with cloud-native billing, charging and revenue management software on private and public clouds. Its products are delivered globally on the private and public cloud. The Company’s solutions help service providers maximize digital, 5G, IoT and emerging market opportunities to achieve business success. Established in 1999, Optiva Inc. is on the Toronto Stock Exchange (TSX: OPT). For more information, visit www.optiva.com.

Caution Concerning Forward-Looking Statement

Certain statements in this document may constitute "forward-looking" statements that involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements or industry results to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. When used in this document, such statements use such words as "may," "will," "expect," "continue," "believe," "plan," "intend," "would," "could," "should," "anticipate" and other similar terminology. Forward-looking statements in this document include statements regarding the Company's "qualified pipeline", the TCV of the qualified pipeline and the Company's expectations regarding future revenues. These statements are forward-looking as they are based on our current expectations, as at March 6, 2024, about our business and the markets we operate in and on various estimates and assumptions. Our actual results could materially differ from our expectations if known or unknown risks affect our business or if our estimates or assumptions turn out to be inaccurate. As a result, there is no assurance that any forward-looking statements will materialize. Risks that could cause our results to differ materially from our current expectations include the risk that the Company will not secure contracts with customers that are included in its qualified pipeline, the risk that existing customers may decrease their spend with the Company and other risks that are discussed in the Company's most recent Annual Information Form, available on SEDAR at www.sedar.com and Optiva's website at www.optiva.com/investors/. Other unknown or unpredictable factors or underlying assumptions subsequently proving to be incorrect could cause actual results to differ materially from those in the forward-looking statements. Optiva does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based, except as required by law.

For additional information, please contact:
Media Contact:
Misann Ellmaker
[email protected]

Investor Relations:
Ali Mahdavi
[email protected]