Company reports first quarter revenue of $36.3
million and adjusted EBITDA of $2.0 million
Brightcove Inc. (NASDAQ: BCOV), a leading global provider of
cloud services for video, today announced financial results for the
quarter ended March 31, 2016.
“Brightcove delivered strong first quarter results that met or
exceeded our expectations across the top and bottom lines,” said
David Mendels, Chief Executive Officer of Brightcove. “The product
and go-to-market transformation we’ve made in recent years is
paying off, with accelerating product innovation and leadership,
customer wins and improved revenue retention.”
Mendels continued, “It is an exciting time in the world of
online video and we see significant opportunities in both our media
and digital marketing businesses. We are executing well and are
confident in our ability to deliver consistent double-digit revenue
growth and strong profitability over time, which we believe will
generate enhanced long-term shareholder value.”
First Quarter 2016 Financial Highlights:
- Revenue for the first quarter of
2016 was $36.3 million, an increase of 10% compared to $32.9
million for the first quarter of 2015. Subscription and support
revenue was $34.7 million, an increase of 9% compared with $31.8
million for the first quarter of 2015.
- Gross profit for the first
quarter of 2016 was $23.0 million, compared to $21.3 million for
the first quarter of 2015, representing a gross margin of 63% for
the first quarter of 2016. Non-GAAP gross profit for the first
quarter of 2016 was $23.6 million, representing a year-over-year
increase of 8% and a non-GAAP gross margin of 65%. Non-GAAP gross
profit and non-GAAP gross margin exclude stock-based compensation
expense and the amortization of acquired intangible assets.
- Loss from operations was $1.5
million for the first quarter of 2016, compared to a loss of $2.5
million for the first quarter of 2015. Non-GAAP income from
operations, which excludes stock-based compensation expense, the
amortization of acquired intangible assets and merger-related
expenses, was $714,000 for the first quarter of 2016, an
improvement compared to a non-GAAP loss of $284,000 during the
first quarter of 2015.
- Net loss was $1.6 million, or
$0.05 per diluted share, for the first quarter of 2016. This
compares to a net loss of $2.8 million, or $0.09 per diluted share,
for the first quarter of 2015. Non-GAAP net income, which excludes
stock-based compensation expense, the amortization of acquired
intangible assets and merger-related expenses, was $638,000 for the
first quarter of 2016, or $0.02 per diluted share, compared to a
non-GAAP net loss of $574,000 for the first quarter of 2015, or
$0.02 per diluted share.
- Adjusted EBITDA was $2.0 million
for the first quarter of 2016, compared to $1.4 million for the
first quarter of 2015. Adjusted EBITDA excludes stock-based
compensation expense, the amortization of acquired intangible
assets, merger-related expenses, depreciation expense, other
income/expense and the provision for income taxes.
- Cash flow from operations was
$3.0 million for the first quarter of 2016, compared to cash flow
from operations of $46,000 for the first quarter of 2015.
- Free cash flow was $1.3 million
after the company invested $1.7 million in capital expenditures and
capitalization of internal-use software during the first quarter of
2016. Free cash flow was negative $692,000 for the first quarter of
2015.
- Cash and cash equivalents were
$29.3 million as of March 31, 2016 compared to $27.6 million at
December 31, 2015.
A Reconciliation of GAAP to Non-GAAP results has been provided
in the financial statement tables included at the end of this press
release. An explanation of these measures is also included below
under the heading “Non-GAAP Financial Measures.”
Other First Quarter and Recent Highlights:
- Average revenue per premium customer
was $69,000 in the first quarter of 2016. This is an increase of
10% from $63,000 in the comparable period in 2015.
- Recurring dollar retention rate was 98%
in the first quarter of 2016, which was above our historical target
in the low to mid 90% range.
- Ended the quarter with 4,915 customers,
of which 1,910 were premium.
- New media customers and media customers
who expanded their relationship during the quarter included:
About.com, Barstool Sports, DraftKings, Jukin Media, PostMedia,
Readers Digest Association Inc., Singapore Press Holdings, Stan,
Vox Media, Wenner Media LLC, and one of the top ten broadcasters in
viewership in the United States.
- New digital marketing customers and
digital marketing customers who expanded their relationship during
the quarter included: Avnet, Edmunds, EMC, Hanover Insurance, Hess
Corporation, Mary Kay Cosmetics, QVC Italia, Sage, Skillshare,
University of Pennsylvania and Yale University.
- Appointed Mark Blair as Vice President
of EMEA to lead the company’s sales and marketing operations in
Europe, Middle East and Africa. Mark was previously the Vice
President of Asia-Pacific where he was successful in driving
business growth in that region.
- Introduced Brightcove OTT Flow, a
turnkey OTT solution that was developed in partnership with Accedo,
an industry leader in user experience and multi-platform
applications for video. OTT Flow allows media companies and content
owners to rapidly deploy high-quality, direct-to-consumer, live and
on-demand video services across platforms.
- Announced cloud transcoding for Ultra
High-Definition (UHD) video through Zencoder. The new UHD features
provide support for HEVC and VP9 video codecs and supports 10-bit
color workflows and wide gamut BT.2020 color space, providing media
companies with the ability to deliver 4K UHD video across
devices.
Business Outlook
Based on information as of today, April 28, 2016, the Company is
issuing the following financial guidance:
Second Quarter 2016:
- Revenue is expected to be in the
range of $35.8 million to $36.3 million.
- Non-GAAP income/loss from
operations is expected to be in the range of breakeven to a
loss of $500,000, which excludes stock-based compensation, the
amortization of acquired intangible assets and merger-related
expenses totaling approximately $2.2 million.
- Adjusted EBITDA in the second
quarter is expected to be in the range of $800,000 to $1.3 million,
which excludes stock-based compensation, the amortization of
acquired intangible assets, merger-related expenses, depreciation,
other income/expense and taxes totaling approximately $3.7
million.
- Non-GAAP net income/loss per diluted
share is expected to be breakeven to a loss of $0.02, which
excludes stock-based compensation, the amortization of acquired
intangible assets and merger-related expenses totaling
approximately $2.2 million, and assumes approximately 34.0 million
shares outstanding.
Full Year 2016:
- Revenue is expected to be in the
range of $145.8 million to $147.8 million.
- Non-GAAP income from operations
is expected to be in the range of $2.0 million to $3.5 million,
which excludes stock-based compensation, the amortization of
acquired intangible assets and merger-related expenses totaling
approximately $9.5 million to $9.9 million.
- Adjusted EBITDA for the full
year is expected to be in the range of $8.0 to $9.5 million, which
excludes stock-based compensation, the amortization of acquired
intangible assets, merger-related expenses, depreciation, other
income/expense and taxes totaling approximately $15.8 million to
$16.2 million.
- Non-GAAP net income per diluted
share is expected to be $0.02 to $0.07, which excludes
stock-based compensation, the amortization of acquired intangible
assets and merger-related expenses totaling approximately $9.5
million to $9.9 million, and assumes approximately 34.1 million
shares outstanding.
Conference Call Information
Brightcove will host a conference call today, April 28, 2016, at
5:00 p.m. (Eastern Time) to discuss the Company's financial results
and current business outlook. To access the call, dial 877-407-3982
(domestic) or 201-493-6780 (international). A replay of this
conference call will be available for a limited time at
877-870-5176 (domestic) or 858-384-5517 (international). The replay
conference ID is 13634340. A replay of the webcast will also be
available for a limited time at http://investor.brightcove.com.
About Brightcove
Brightcove Inc. (NASDAQ:BCOV) is the leading global provider of
powerful cloud solutions for delivering and monetizing video across
connected devices. The company offers a full suite of products and
services that reduce the cost and complexity associated with
publishing, distributing, measuring and monetizing video across
devices. Brightcove has nearly 5,000 customers in over 70 countries
that rely on the company’s cloud solutions to successfully publish
high-quality video experiences to audiences everywhere. To learn
more, visit www.brightcove.com.
Forward-Looking Statements
This press release includes certain “forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act
of 1995, including statements concerning our financial guidance for
the second fiscal quarter of 2016 and full year 2016, our position
to execute on our growth strategy, and our ability to expand our
leadership position and market opportunity. These forward-looking
statements include, but are not limited to, plans, objectives,
expectations and intentions and other statements contained in this
press release that are not historical facts and statements
identified by words such as "expects," "anticipates," "intends,"
"plans," "believes," "seeks," "estimates" or words of similar
meaning. These forward-looking statements reflect our current views
about our plans, intentions, expectations, strategies and
prospects, which are based on the information currently available
to us and on assumptions we have made. Although we believe that our
plans, intentions, expectations, strategies and prospects as
reflected in or suggested by those forward-looking statements are
reasonable, we can give no assurance that the plans, intentions,
expectations or strategies will be attained or achieved.
Furthermore, actual results may differ materially from those
described in the forward-looking statements and will be affected by
a variety of risks and factors that are beyond our control
including, without limitation: our history of losses; our limited
operating history; expectations regarding the widespread adoption
of customer demand for our products; our ability to expand the
sales of our products to customers located outside the U.S.;
keeping up with the rapid technological change required to remain
competitive in our industry; our ability to retain existing
customers; our ability to manage our growth effectively and
successfully recruit additional highly-qualified personnel; the
price volatility of our common stock; and other risks set forth
under the caption "Risk Factors" in our most recently filed Annual
Report on Form 10-K, as updated by our subsequently filed Quarterly
Reports on Form 10-Q and our other SEC filings. We assume no
obligation to update any forward-looking statements contained in
this document as a result of new information, future events or
otherwise.
Non-GAAP Financial Measures
Brightcove has provided in this release the non-GAAP financial
measures of non-GAAP gross profit, non-GAAP gross margin, non-GAAP
income (loss) from operations, non-GAAP net income (loss), adjusted
EBITDA, adjusted EBITDA margin and non-GAAP diluted net loss per
share. Brightcove uses these non-GAAP financial measures internally
in analyzing its financial results and believes they are useful to
investors, as a supplement to GAAP measures, in evaluating
Brightcove's ongoing operational performance. Brightcove believes
that the use of these non-GAAP financial measures provides an
additional tool for investors to use in evaluating ongoing
operating results and trends and in comparing its financial results
with other companies in Brightcove’s industry, many of which
present similar non-GAAP financial measures to investors. As noted,
the non-GAAP financial results discussed above of non-GAAP gross
profit, non-GAAP gross margin, non-GAAP income (loss) from
operations, non-GAAP net income (loss) and non-GAAP diluted net
income (loss) per share exclude stock-based compensation expense,
the amortization of acquired intangible assets and merger-related
expenses. The non-GAAP financial results discussed above of
adjusted EBITDA is defined as consolidated net income (loss), plus
stock-based compensation expense, the amortization of acquired
intangible assets, merger-related expenses, depreciation expense,
other income/expense, including interest expense and interest
income, and the provision for income taxes. Merger-related expenses
include fees incurred in connection with closing an acquisition in
addition to fees associated with the retention of key employees.
Adjusted EBITDA margin is defined as adjusted EBITDA as a
percentage of total revenue. Non-GAAP financial measures have
limitations as an analytical tool and should not be considered in
isolation from, or as a substitute for, financial information
prepared in accordance with GAAP. Investors are encouraged to
review the reconciliation of these non-GAAP measures to their most
directly comparable GAAP financial measures. As previously
mentioned, a reconciliation of our non-GAAP financial measures to
their most directly comparable GAAP measures has been provided in
the financial statement tables included below in this press
release. The Company’s earnings press releases containing such
non-GAAP reconciliations can be found on the Investors section of
the Company’s web site at http://www.brightcove.com.
Brightcove Inc. Condensed
Consolidated Balance Sheets (in thousands)
(unaudited) March 31,
2016 December 31, 2015 Assets Current assets:
Cash and cash equivalents $ 29,292 $ 27,637 Accounts receivable,
net of allowance 20,675 21,213 Prepaid expenses and other current
assets 6,356 4,579 Total current assets
56,323 53,429 Property and equipment, net 9,189 8,689 Intangible
assets, net 13,321 13,786 Goodwill 50,776 50,776 Deferred tax asset
80 63 Restricted cash 201 201 Other assets 881
724 Total assets $ 130,771 $ 127,668
Liabilities and stockholders' equity Current liabilities:
Accounts payable $ 2,786 $ 3,302 Accrued expenses 13,149 12,849
Capital lease liability 726 850 Equipment financing 298 - Deferred
revenue 32,877 29,836 Total current
liabilities 49,836 46,837 Deferred revenue, net of current portion
132 95 Other liabilities 2,688 2,601
Total liabilities 52,656 49,533 Stockholders' equity: Common
stock 33 33 Additional paid-in capital 221,903 220,458 Treasury
stock, at cost (871 ) (871 ) Accumulated other comprehensive loss
(746 ) (888 ) Accumulated deficit (142,204 ) (140,597
) Total stockholders’ equity 78,115 78,135
Total liabilities and stockholders' equity $ 130,771
$ 127,668
Brightcove
Inc. Condensed Consolidated Statements of Operations
(in thousands, except per share amounts) (unaudited)
Three Months Ended March 31, 2016 2015
Revenue: Subscription and support revenue $ 34,653 $ 31,811
Professional services and other revenue 1,639
1,074 Total revenue 36,292 32,885 Cost of revenue: (1) (2)
Cost of subscription and support revenue 11,675 10,346 Cost of
professional services and other revenue 1,589
1,246 Total cost of revenue 13,264
11,592 Gross profit 23,028 21,293
Operating expenses: (1) (2) Research and development 7,426
7,820 Sales and marketing 12,535 10,839 General and administrative
4,577 5,161 Merger-related 21 14 Total
operating expenses 24,559 23,834 Loss
from operations (1,531 ) (2,541 ) Other expense, net (31 )
(224 ) Net loss before income taxes (1,562 ) (2,765 )
Provision for income taxes 45 66 Net
loss $ (1,607 ) $ (2,831 ) Net income (loss) per share—basic
and diluted $ (0.05 ) $ (0.09 ) Weighted-average
shares—basic and diluted 32,725 32,496 (1) Stock-based
compensation included in above line items: Cost of subscription and
support revenue $ 42 $ 20 Cost of professional services and other
revenue 57 33 Research and development 389 434 Sales and marketing
482 458 General and administrative 489 508 (2)
Amortization of acquired intangible assets included in the above
line items: Cost of subscription and support revenue $ 508 $ 507
Research and development 31 32 Sales and marketing 226 251
Brightcove Inc. Condensed
Consolidated Statements of Cash Flows (in thousands)
(unaudited) Three Months Ended March 31,
Operating activities 2016 2015 Net loss $
(1,607 ) $ (2,831 ) Adjustments to reconcile net loss to net cash
provided by operating activities: Depreciation and amortization
2,014 2,429 Stock-based compensation 1,459 1,453 Provision for
reserves on accounts receivable 91 76 Changes in assets and
liabilities: Accounts receivable 541 1,993 Prepaid expenses and
other current assets (2,069 ) (534 ) Other assets (156 ) (226 )
Accounts payable (1,039 ) 789 Accrued expenses 844 (2,540 )
Deferred revenue 2,917 (563 ) Net cash
provided by operating activities 2,995 46
Investing activities Cash paid for purchase of
intangible asset (125 ) - Purchases of property and equipment, net
of returns (843 ) (581 ) Capitalization of internal-use software
costs (810 ) (157 ) Net cash used in investing
activities (1,778 ) (738 )
Financing
activities Proceeds from exercise of stock options 43 46
Payments of withholding tax on RSU vesting (86 ) - Proceeds from
equipment financing 604 - Payments on equipment financing (48 ) -
Payments under capital lease obligation (278 ) (319 )
Net cash provided by (used in) financing activities 235
(273 ) Effect of exchange rate changes on cash
and cash equivalents 203 (44 ) Net
increase (decrease) in cash and cash equivalents 1,655 (1,009 )
Cash and cash equivalents at beginning of period 27,637
22,916 Cash and cash equivalents at end of
period $ 29,292 $ 21,907
Brightcove Inc. Reconciliation of GAAP
Gross Profit, GAAP Loss From Operations, GAAP Net Loss and GAAP Net
Loss Per Share to Non-GAAP Gross Profit, Non-GAAP Income
(Loss) From Operations, Non-GAAP Net Income (Loss) and Non-GAAP Net
Income (Loss) Per Share (in thousands, except per share
amounts) (unaudited) Three Months Ended March
31, 2016 2015 GROSS PROFIT: GAAP gross profit $
23,028 $ 21,293 Stock-based compensation expense 99 53 Amortization
of acquired intangible assets 508 507
Non-GAAP gross profit $ 23,635 $ 21,853 LOSS FROM
OPERATIONS: GAAP loss from operations $ (1,531 ) $ (2,541 )
Stock-based compensation expense 1,459 1,453 Merger-related
expenses 21 14 Amortization of acquired intangible assets
765 790 Non-GAAP income (loss) from operations
$ 714 $ (284 ) NET LOSS: GAAP net loss $ (1,607 ) $ (2,831 )
Stock-based compensation expense 1,459 1,453 Merger-related
expenses 21 14 Amortization of acquired intangible assets
765 790 Non-GAAP net income (loss) $ 638
$ (574 ) GAAP diluted net loss per share $ (0.05 ) $ (0.09 )
Non-GAAP diluted net income (loss) per share $ 0.02 $ (0.02
) Shares used in computing GAAP diluted net loss per share
32,725 32,496 Shares used in computing Non-GAAP diluted net income
(loss) per share 33,630 32,496
Brightcove Inc. Calculation of Adjusted EBITDA and
Adjusted EBITDA Margin (in thousands) (unaudited)
Three Months Ended March 31, 2016
2015 Net loss $ (1,607 ) $ (2,831 ) Other expense,
net 31 224 Provision for income taxes 45 66 Merger-related expenses
21 14 Depreciation and amortization 2,014 2,429 Stock-based
compensation expense 1,459 1,453
Adjusted EBITDA $ 1,963 $ 1,355 Adjusted
EBITDA margin 5.4 % 4.1 %
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160428006819/en/
Investor Contact:ICR for BrightcoveBrian Denyeau,
646-277-1251brian.denyeau@icrinc.comorMedia
Contact:Brightcove Inc.Phil LeClare,
617-674-6510pleclare@brightcove.com
Brightcove (NASDAQ:BCOV)
Historical Stock Chart
From Sep 2024 to Oct 2024
Brightcove (NASDAQ:BCOV)
Historical Stock Chart
From Oct 2023 to Oct 2024