The fourth bullet point under the third header should read:
- Media and enterprise customers who
expanded their relationship during the quarter included: Adobe
Systems, AMC Entertainment, Burberry, Discover, Fox News Network,
Franklin Templeton Investments, Hudson’s Bay, Hugo Boss, Le Figaro,
McKesson, Schlumberger Ltd, Sky News Australia, Starwood Hotels,
Subway, Trinity Mirror and Yahoo Japan Corporation, among
others.
The corrected release reads:
Brightcove Announces Financial Results for
Fourth Quarter and Fiscal Year 2017
Brightcove Inc. (Nasdaq: BCOV), the leading provider of cloud
services for video, today announced financial results for the
fourth quarter and fiscal year ended December 31, 2017.
“Brightcove finished 2017 with strong fourth quarter results
that exceeded expectations on both the top and bottom line. We are
seeing strong demand across products and geographies, and we
continue to improve our efficiency across the business,” said
Andrew Feinberg, Brightcove’s Acting Chief Executive Officer.
Feinberg added, “As we move into 2018 we have two primary
strategic priorities: return to double-digit revenue growth by the
fourth quarter and enhance our margins going forward. We believe
Brightcove is well positioned to deliver significant value to
customers and shareholders. We have the best product portfolio in
our history and a go-to-market team that is well-aligned to drive
improved growth.”
Gary Haroian, Brightcove’s Chairman of the Board, said, “The
Board has been pleased with the Company’s performance in the second
half of 2017 and the job Andy Feinberg has done. The Board
continues to take a deliberate and thoughtful approach to
evaluating candidates, including Andy, and anticipate naming a
permanent CEO as soon as we complete our search process.”
Fourth Quarter 2017 Financial Highlights:
- Revenue for the fourth quarter
of 2017 was $40.1 million, an increase of 4% compared to $38.6
million for the fourth quarter of 2016. Subscription and support
revenue was $36.9 million, an increase of 2% compared with $36.1
million for the fourth quarter of 2016.
- Gross profit for the fourth
quarter of 2017 was $23.8 million, representing a gross margin of
59%, compared to a gross profit of $23.3 million for the fourth
quarter of 2016. Non-GAAP gross profit for the fourth quarter of
2017 was $24.5 million, representing a non-GAAP gross margin of
61%, compared to a non-GAAP gross profit of $24.8 million for the
fourth quarter of 2016. Non-GAAP gross profit and non-GAAP gross
margin exclude stock-based compensation expense, the amortization
of acquired intangible assets and costs to exit a facility.
- Loss from operations was $1.3
million for the fourth quarter of 2017, compared to a loss from
operations of $3.7 million for the fourth quarter of 2016. Non-GAAP
income from operations, which excludes stock-based compensation
expense, the amortization of acquired intangible assets and costs
to exit a facility, was $1.3 million for the fourth quarter of
2017, compared to non-GAAP loss from operations of $309,000 during
the fourth quarter of 2016.
- Net loss was $1.4 million, or
$0.04 per diluted share, for the fourth quarter of 2017. This
compares to a net loss of $4.4 million, or $0.13 per diluted share,
for the fourth quarter of 2016. Non-GAAP net income, which excludes
stock-based compensation expense, the amortization of acquired
intangible assets and costs to exit a facility, was $1.3 million
for the fourth quarter of 2017, or $0.04 per diluted share,
compared to a non-GAAP net loss of $988,000 for the fourth quarter
of 2016, or $0.03 per diluted share.
- Adjusted EBITDA was $2.3 million
for the fourth quarter of 2017, compared to $803,000 for the fourth
quarter of 2016. Adjusted EBITDA excludes stock-based compensation
expense, the amortization of acquired intangible assets,
depreciation expense, costs to exit a facility, other
income/expense, and the provision for income taxes.
- Cash flow from operations was
$5.2 million, compared to $3.4 million for the fourth quarter of
2016.
- Free cash flow was $4.2 million
after the company invested $1.0 million in capital expenditures and
capitalization of internal-use software during the fourth quarter
of 2017. Free cash flow was $2.4 million for the fourth quarter of
2016.
- Cash and cash equivalents were
$26.1 million as of December 31, 2017 compared to $22.1 million at
September 30, 2017.
Full Year 2017 Financial Highlights:
- Revenue for the full year 2017
was $155.9 million, an increase of 4% compared to $150.3 million
for 2016. Subscription and support revenue for 2017 was $143.2
million, an increase of 1% compared with $142.0 million for
2016.
- Gross Profit was $91.3 million
for 2017, compared to $94.4 million for 2016, representing a gross
margin of 59% for 2017. Non-GAAP gross profit was $94.0 million for
2017, compared to $97.8 million for 2016, and a representing a
non-GAAP gross margin of 60%. Non-GAAP gross profit and non-GAAP
gross margin exclude stock-based compensation expense, the
amortization of acquired intangible assets and costs to exit a
facility.
- Loss from operations was $19.7
million for 2017, compared to a loss from operations of $9.0
million for 2016. Non-GAAP loss from operations, which excludes
stock-based compensation expense, the amortization of acquired
intangible assets, costs to exit a facility, executive severance
and merger-related expenses, was $9.0 million for 2017, compared to
a non-GAAP income from operations of $1.0 million for 2016.
- Net loss was $19.5 million, or
$0.57 per diluted share, for 2017. This compares to a net loss of
$10.0 million, or $0.30 per diluted share, for 2016. Non-GAAP net
loss, which excludes stock-based compensation expense, the
amortization of acquired intangible assets, costs to exit a
facility, executive severance and merger-related expenses, was $8.8
million for 2017, or $0.26 per diluted share, compared to non-GAAP
net income of $8,000 for 2016, or $0.00 per diluted share.
- Adjusted EBITDA loss was $4.5
million for 2017, compared to adjusted EBITDA of $5.7 million for
2016. Adjusted EBITDA excludes stock-based compensation expense,
the amortization of acquired intangible assets, merger-related
expenses, depreciation expense, costs to exit a facility, executive
severance, other income/expense, and the provision for income
taxes.
- Cash flow used in operations was
$6.4 million for 2017, compared to cash from operations of $11.1
million for 2016.
- Free cash flow was negative
$10.6 million after we invested $4.2 million in capital
expenditures and capitalization of internal-use software during
2017. Free cash flow was $5.9 million for 2016.
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 Fourth Quarter and Recent Highlights:
- Average revenue per premium customer
was $73,000 in the fourth quarter of 2017, excluding starter
customers who had annualized revenue of $5,000 per customer. This
is an increase of 3% from $71,000 in the comparable period in
2016.
- Recurring dollar retention rate was 87%
in the fourth quarter of 2017, which was below our historical
target in the low to mid 90% range.
- Ended the quarter with 4,168 customers,
of which 2,167 were premium.
- Media and enterprise customers who
expanded their relationship during the quarter included: Adobe
Systems, AMC Entertainment, Burberry, Discover, Fox News Network,
Franklin Templeton Investments, Hudson’s Bay, Hugo Boss, Le Figaro,
McKesson, Schlumberger Ltd, Sky News Australia, Starwood Hotels,
Subway, Trinity Mirror and Yahoo Japan Corporation, among
others.
- Won the award for Best Video
Distribution Platform at the 2017 Digiday Video Awards, which honor
the most outstanding and inspired work in branded digital video,
video marketing and video advertising by brands, agencies, and
technology companies.
Business Outlook
Based on information as of today, February 22, 2018, the Company
is issuing the following financial guidance:
First Quarter 2018:
- Revenue is expected to be in the
range of $40.0 million to $40.5 million, including approximately
$3.0 million of professional services revenue.
- Non-GAAP loss from operations is
expected to be in the range of $1.9 million to $2.4 million, which
excludes stock-based compensation of approximately $1.7 million and
the amortization of acquired intangible assets of approximately
$700,000.
- Adjusted EBITDA loss is expected
to be in the range of $800,000 to $1.3 million, which excludes
stock-based compensation of approximately $1.7 million, the
amortization of acquired intangible assets of approximately
$700,000, depreciation expense of approximately $1.1 million and
other income/expense and the provision for income taxes of
approximately $200,000.
- Non-GAAP net loss per share is
expected to be $0.06 to $0.08, which excludes stock-based
compensation of approximately $1.7 million and the amortization of
acquired intangible assets of approximately $700,000, and assumes
approximately 34.9 million shares outstanding.
Full Year 2018:
- Revenue is expected to be in the
range of $164.0 million to $168.0 million, including approximately
$11.5 million of professional services revenue.
- Non-GAAP income/loss from
operations is expected to be in the range of a loss of $1.5
million to income of $1.5 million, which excludes stock-based
compensation of approximately $7.2 million and the amortization of
acquired intangible assets of approximately $2.3 million.
- Adjusted EBITDA is expected to
be in the range of $2.5 million to $5.5 million, which excludes
stock-based compensation of approximately $7.2 million, the
amortization of acquired intangible assets of approximately $2.3
million, depreciation expense of approximately $4.1 million and
other income/expense and the provision for income taxes of
approximately $600,000.
- Non-GAAP net income/loss per diluted
share is expected to be a loss of $0.06 to income of $0.02,
which excludes stock-based compensation of approximately $7.2
million and the amortization of acquired intangible assets of
approximately $2.3 million, and assumes approximately 35.2 million
shares outstanding.
Conference Call Information
Brightcove will host a conference call today, February 22, 2018,
at 5:00 p.m. (Eastern Time) to discuss the Company's financial
results and current business outlook. A live webcast of the call
will be available at the “Investors” page of the Company’s website,
http://investor.brightcove.com. 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
844-512-2921 (domestic) or 412-317-6671 (international). The replay
conference ID is 13675707. 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 thousands of 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 first fiscal quarter of 2018 and full year 2018, our position
to execute on our go-to-market 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; the effects of
increased competition and commoditization of services we offer,
including data delivery and storage; 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 and non-GAAP diluted net income (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, costs to exit a facility, executive severance
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, costs to exit a facility, executive
severance, 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. Costs to exit a facility include termination fees
and the disposal of property and equipment in connection with the
closure of certain facilities for the purpose of consolidating the
Company’s data centers. Executive severance represents severance
paid to the former CEO of the Company. 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)
December 31, 2017 December 31, 2016
Assets Current assets: Cash and cash equivalents $ 26,132 $
36,813 Accounts receivable, net of allowance 25,236 21,575 Prepaid
expenses and other current assets 7,036 5,897
Total current assets 58,404 64,285 Property and equipment,
net 9,143 9,264 Intangible assets, net 8,236 10,970 Goodwill 50,776
50,776 Deferred tax asset 87 121 Other assets 969
1,008 Total assets $ 127,615 $ 136,424
Liabilities and stockholders' equity Current liabilities:
Accounts payable $ 6,142 $ 5,327 Accrued expenses 13,621 15,705
Capital lease liability 228 489 Equipment financing 26 307 Deferred
revenue 39,370 34,665 Total current
liabilities 59,387 56,493 Deferred revenue, net of current portion
244 91 Other liabilities 1,228 1,644
Total liabilities 60,859 58,228 Stockholders' equity: Common
stock 35 34 Additional paid-in capital 238,700 230,788 Treasury
stock, at cost (871 ) (871 ) Accumulated other comprehensive loss
(809 ) (1,172 ) Accumulated deficit (170,299 )
(150,583 ) Total stockholders’ equity 66,756
78,196 Total liabilities and stockholders' equity $ 127,615
$ 136,424
Brightcove Inc.
Condensed Consolidated Statements of Operations (in
thousands, except per share amounts)
Three Months Ended December 31,
Twelve Months Ended December 31, 2017
2016 2017 2016 Revenue: Subscription
and support revenue $ 36,893 $ 36,086 $ 143,159 $ 142,022
Professional services and other revenue 3,208
2,539 12,754 8,244 Total revenue
40,101 38,625 155,913 150,266 Cost of revenue: (1) (2) Cost of
subscription and support revenue 12,484 12,970 50,664 48,011 Cost
of professional services and other revenue 3,834
2,383 13,954 7,836 Total
cost of revenue 16,318 15,353
64,618 55,847 Gross profit 23,783
23,272 91,295 94,419
Operating expenses: (1) (2) Research and development 7,557
7,786 31,850 30,171 Sales and marketing 12,938 14,193 57,294 54,038
General and administrative 4,619 4,977 21,847 19,167 Merger-related
- - - 21
Total operating expenses 25,114 26,956
110,991 103,397 Loss from operations
(1,331 ) (3,684 ) (19,696 ) (8,978 ) Other income (expense), net
24 (471 ) 547 (598 ) Net
loss before income taxes (1,307 ) (4,155 ) (19,149 ) (9,576 )
Provision for income taxes 65 208
370 410 Net loss $ (1,372 ) $ (4,363 )
$ (19,519 ) $ (9,986 ) Net (loss) income per share—basic and
diluted Basic $ (0.04 ) $ (0.13 ) $ (0.57 ) $ (0.30 ) Diluted
(0.04 ) (0.13 ) (0.57 ) (0.30 )
Weighted-average shares—basic and diluted Basic 34,692 33,877
34,376 33,189 Diluted 34,692 33,877 34,376 33,189 (1)
Stock-based compensation included in above line items: Cost of
subscription and support revenue $ 131 $ 120 $ 439 $ 324 Cost of
professional services and other revenue 62 59 251 217 Research and
development 431 333 1,563 1,275 Sales and marketing 797 690 2,750
2,320 General and administrative 528 545 2,240 1,876
(2) Amortization of acquired intangible assets included in the
above line items: Cost of subscription and support revenue $ 508 $
508 $ 2,031 $ 2,031 Research and development - 31 11 126 Sales and
marketing 167 244 692 959
Brightcove Inc.
Condensed Consolidated Statements of Cash Flows (in
thousands) Twelve
Months Ended December 31, Operating activities
2017 2016 Net loss $ (19,519 ) $ (9,986 ) Adjustments
to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization 7,257 7,796 Stock-based compensation
7,243 6,012 Deferred income taxes 38 (47 ) Provision for reserves
on accounts receivable 203 230 Loss on disposal of equipment - 155
Changes in assets and liabilities: Accounts receivable (3,811 )
(559 ) Prepaid expenses and other current assets (1,484 ) (894 )
Other assets 56 (299 ) Accounts payable 1,758 733 Accrued expenses
(2,930 ) 3,172 Deferred revenue 4,748 4,764
Net cash provided by operating activities (6,441 )
11,077
Investing activities Cash paid
for purchase of intangible asset - (300 ) Purchases of property and
equipment, net of returns (1,102 ) (1,307 ) Capitalization of
internal-use software costs (3,010 ) (3,887 ) Decrease in
restricted cash - 201 Net cash used in
investing activities (4,112 ) (5,293 )
Financing activities Proceeds from exercise of stock options
520 4,555 Payments of withholding tax on RSU vesting (268 ) (405 )
Proceeds from equipment financing - 604 Payments on equipment
financing (307 ) (271 ) Payments under capital lease obligation
(489 ) (850 ) Net cash provided by (used in)
financing activities (544 ) 3,633
Effect of exchange rate changes on cash and cash equivalents
416 (241 ) Net increase in cash and cash
equivalents (10,681 ) 9,176 Cash and cash equivalents at beginning
of period 36,813 27,637 Cash and cash
equivalents at end of period $ 26,132 $ 36,813
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) Three
Months Ended December 31, Twelve Months Ended December
31, 2017 2016 2017
2016 GROSS PROFIT: GAAP gross profit $ 23,783 $ 23,272 $
91,295 $ 94,419 Stock-based compensation expense 193 179 690 541
Amortization of acquired intangible assets 508 508 2,031 2,031
Costs to exit a facility - 845 -
845 Non-GAAP gross profit $ 24,484 $
24,804 $ 94,016 $ 97,836 LOSS FROM OPERATIONS:
GAAP loss from operations $ (1,331 ) $ (3,684 ) $ (19,696 ) $
(8,978 ) Stock-based compensation expense 1,949 1,747 7,243 6,012
Merger-related expenses - - - 21 Amortization of acquired
intangible assets 675 783 2,734 3,116 Costs to exit a facility -
845 - 845 Executive severance - -
700 - Non-GAAP income (loss) from
operations $ 1,293 $ (309 ) $ (9,019 ) $ 1,016 NET
LOSS: GAAP net loss $ (1,372 ) $ (4,363 ) $ (19,519 ) $ (9,986 )
Stock-based compensation expense 1,949 1,747 7,243 6,012
Merger-related expenses - - - 21 Amortization of acquired
intangible assets 675 783 2,734 3,116 Costs to exit a facility -
845 - 845 Executive severance - -
700 - Non-GAAP net income (loss) $
1,252 $ (988 ) $ (8,842 ) $ 8 GAAP diluted net loss
per share $ (0.04 ) $ (0.13 ) $ (0.57 ) $ (0.30 ) Non-GAAP diluted
net income (loss) per share $ 0.04 $ (0.03 ) $ (0.26 ) $
0.00 Shares used in computing GAAP diluted net loss
per share 34,692 33,877 34,376 33,189 Shares used in computing
Non-GAAP diluted net income (loss) per share 35,525 33,877 34,376
34,620
Brightcove Inc. Calculation of
Adjusted EBITDA (in thousands)
Three Months Ended December 31,
Twelve Months Ended December 31, 2017
2016 2017 2016 Net (loss) income
$ (1,372 ) $ (4,363 ) $ (19,519 ) $ (9,986 ) Other
expense, net (24 ) 471 (547 ) 598 Provision for income taxes 65 208
370 410 Merger-related expenses - - - 21 Depreciation and
amortization 1,650 1,895 7,257 7,796 Stock-based compensation
expense 1,949 1,747 7,243 6,012 Costs to exit a facility - 845 -
845 Executive severance - - 700
- Adjusted EBITDA $ 2,268 $ 803
$ (4,496 ) $ 5,696
View source
version on businesswire.com: http://www.businesswire.com/news/home/20180222006279/en/
Investor Contact:ICR for BrightcoveBrian Denyeau,
646-277-1251brian.denyeau@icrinc.comorMedia
Contact:Brightcove, IncPhil LeClare,
617-674-6510pleclare@brightcove.com
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