Brightcove Inc. (NASDAQ: BCOV) the global leader in video for
business, today announced financial results for the fourth quarter
and fiscal year ended December 31, 2020.
“Brightcove’s fourth quarter performance was a great finish to
an excellent 2020, highlighted by our fastest organic revenue
growth quarter in several years and the strongest free cash flow
quarter in our history,” said Jeff Ray, Brightcove’s Chief
Executive Officer.
Ray added, “2020 was video’s evolutionary moment and its value
has never been more apparent. Brightcove is helping drive the
proliferation of video, enabling enterprises to better engage with
their customers and employees, and empowering content creators to
monetize their content globally. Brightcove’s clear market
leadership puts Brightcove in a great position to deliver strong,
sustainable, and profitable growth for years to come.”
Fourth Quarter 2020 Financial Highlights:
- Revenue for the fourth quarter of 2020 was $53.7
million, an increase of 13% compared to $47.6 million for the
fourth quarter of 2019. Subscription and support revenue was $50.7
million, an increase of 14% compared to $44.6 million for the
fourth quarter of 2019.
- Gross profit for the fourth quarter of 2020 was $34.2
million, representing a gross margin of 64% compared to a gross
profit of $28.8 million for the fourth quarter of 2019. Non-GAAP
gross profit for the fourth quarter of 2020 was $34.8 million,
representing a non-GAAP gross margin of 65%, compared to a non-GAAP
gross profit of $29.7 million for the fourth quarter of 2019.
Non-GAAP gross profit and non-GAAP gross margin exclude stock-based
compensation expense and the amortization of acquired intangible
assets.
- Income from operations was $1.6 million for the fourth
quarter of 2020, compared to a loss of $6.9 million for the fourth
quarter of 2019. Non-GAAP operating income, which excludes
stock-based compensation expense, restructuring, the amortization
of acquired intangible assets and merger-related expense, was $5.4
million for the fourth quarter of 2020, compared to non-GAAP
operating income of $2.2 million during the fourth quarter of
2019.
- Net income was $2.0 million, or $0.05 per basic and
diluted share, for the fourth quarter of 2020. This compares to a
net loss of $6.7 million, or a loss of $0.17 per diluted share, for
the fourth quarter of 2019. Non-GAAP net income, which excludes
stock-based compensation expense, restructuring, the amortization
of acquired intangible assets and merger-related expense, was $5.8
million for the fourth quarter of 2020, or $0.14 per diluted share,
compared to non-GAAP net income of $2.4 million for the fourth
quarter of 2019, or $0.06 per diluted share.
- Adjusted EBITDA was $6.8 million for the fourth quarter
of 2020, compared to adjusted EBITDA of $3.5 million for the fourth
quarter of 2019. Adjusted EBITDA excludes stock-based compensation
expense, merger-related expense, restructuring, the amortization of
acquired intangible assets, depreciation expense, other
income/expense and the provision for income taxes.
- Cash flow provided by operations was $12.4 million for
the fourth quarter for 2020, compared to $2.1 million for the
fourth quarter of 2019.
- Free cash flow was $10.9 million after the company
invested $1.5 million in capital expenditures and capitalization of
internal-use software during the fourth quarter of 2020. Free cash
flow was negative $336,000 for the fourth quarter of 2019.
- Cash and cash equivalents were $37.5 million as of
December 31, 2020 compared to $30.3 million as of September 30,
2020.
Full Year 2020 Financial Highlights:
- Revenue for the full year 2020 was $197.4 million, an
increase of 7% compared to $184.5 million for 2019. Subscription
and support revenue for 2020 was $187.3 million, an increase of 8%
compared to $173.8 million for 2019.
- Gross profit was $121.3 million for 2020, representing a
gross margin of 61%, compared to $109.0 million for 2019. Non-GAAP
gross profit was $123.7 million for 2020, representing a non-GAAP
gross margin of 63%, compared to $111.9 million for 2019. 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 $5.3 million for 2020, compared
to a loss from operations of $21.1 million for 2019. Non-GAAP
income from operations, which excludes stock-based compensation
expense, the amortization of acquired intangible assets,
merger-related expense and executive severance and restructuring
expense, was $15.2 million for 2020, compared to non-GAAP income
from operations of $3.6 million for 2019.
- Net loss was $5.8 million, or $0.15 per diluted share,
for 2020. This compares to a net loss of $21.9 million, or $0.58
per diluted share, for 2019. Non-GAAP net income, which excludes
stock-based compensation expense, the amortization of acquired
intangible assets, merger-related expense and executive severance
and restructuring expense, was $14.7 million for 2020, or $0.36 per
diluted share, compared to non-GAAP net income of $2.8 million for
2019, or $0.07 per diluted share.
- Adjusted EBITDA was $20.5 million for 2020, compared to
an adjusted EBITDA of $8.8 million for 2019. Adjusted EBITDA
excludes stock-based compensation expense, merger-related expense,
executive severance and restructuring expense, the amortization of
acquired intangible assets, depreciation expense, other
income/expense and the provision for income taxes.
- Cash flow provided by operations was $21.3 million for
2020, compared to cash flow from operations of $2.7 million for
2019.
- Free cash flow was $12.6 million after the company
invested $8.7 million in capital expenditures and capitalization of
internal-use software during 2020. Free cash flow was negative $4.6
million for 2019.
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 annual subscription revenue per premium customer was
$97,200 in the fourth quarter of 2020, excluding starter customers
who had average annualized revenue of $4,400 per customer. This
compares to $83,400 in the comparable period in 2019.
- Recurring dollar retention rate was 91% in the fourth quarter
of 2020, which was in-line with our historical target of the low to
mid-90 percent range.
- Ended the quarter with 3,330 customers, of which 2,279 were
premium.
- New customers and customers who expanded their relationship
during the fourth quarter include: BioFire Diagnostics, Keller
Williams Realty, DK Rights, Intel Corporation, Rainbow Media
Holdings, and Meredith Corporation, among others.
- Recipient of two Technology and Engineering Emmy® Awards,
awarded by the National Academy of Television Arts & Sciences
(NATAS) for excellence in engineering innovation. Brightcove’s
Context Aware Encoding technology was recognized for excellence and
engineering creativity in the Development of Perceptual Metrics for
Video Encoding Optimization category. The technology enables
customers to distribute videos encoded at high visual quality while
minimizing network bandwidth and storage costs.
- Chosen by South by Southwest® (SXSW®) Conference and Festivals
to be the official video partner for the all-digital SXSW Online
SXSW EDU Online events. Through Brightcove’s award-winning,
highly-scalable, and flexible digital video platform, SXSW Online
will span five different channels, emulating iconic SXSW stages
from years past, and give attendees the unique ability to switch
channels for different content in real-time, one major benefit of
at-home streaming.
- Announced that SEEK, one of the largest and most-established
employment marketplace in Australia, is using Brightcove’s video
technology to build a stronger brand and create more human
connection between job seekers and organizations. Since
implementing Brightcove, SEEK has seen a 55% higher brand impact
overall across its channels.
- Announced that Jennifer Smith has joined the company as Chief
Marketing Officer (CMO). Smith is an international marketing
executive who brings more than 20 years of experience in global
technology companies to Brightcove. She is recognized for her
leadership skills in go-to-market strategy and has a proven track
record of making improvements across product, sales and marketing
for public and private companies. Most recently, she served as CMO
at Alfresco Software (recently acquired by Hyland), where she led
the transformation of the company’s positioning from technology
vendor to platform solution provider, managing all aspects of
marketing.
Business Outlook
Based on information as of today, February 17, 2021, the Company
is issuing the following financial guidance.
First Quarter 2021:
- Revenue is expected to be in the range of $53.0 million
to $54.0 million, including approximately $3.7 million of
professional services revenue.
- Non-GAAP income from operations is expected to be in the
range of $4.0 million to $5.0 million, which excludes stock-based
compensation of approximately $2.0 million, the amortization of
acquired intangible assets of approximately $0.8 million and
restructuring of approximately $0.3 million.
- Adjusted EBITDA is expected to be in the range of $5.4
million to $6.4 million, which excludes stock-based compensation of
approximately $2.0 million, the amortization of acquired intangible
assets of approximately $0.8 million, restructuring of
approximately $0.3 million, depreciation expense of approximately
$1.4 million and other income/expense and the provision for income
taxes of approximately $0.3 million.
- Non-GAAP net income per diluted share is expected to be
$0.09 to $0.11, which excludes stock-based compensation of
approximately $2.0 million, the amortization of acquired intangible
assets of approximately $0.8 million, restructuring of
approximately $0.3 million, and assumes approximately 41.9 million
weighted-average shares outstanding.
Full Year 2021:
- Revenue is expected to be in the range of $211.0 million
to $217.0 million, including approximately $12.5 million of
professional services revenue.
- Non-GAAP income from operations is expected to be in the
range of $20.0 million to $25.0 million, which excludes stock-based
compensation of approximately $9.1 million, the amortization of
acquired intangible assets of approximately $3.0 million,
restructuring of approximately $0.3 million.
- Adjusted EBITDA is expected to be in the range of $25.5
million to $30.5 million, which excludes stock-based compensation
of approximately $9.1 million, the amortization of acquired
intangible assets of approximately $3.0 million, restructuring of
approximately $0.3 million, depreciation expense of approximately
$5.5 million and other income/expense and the provision for income
taxes of approximately $1.2 million.
- Non-GAAP earnings per diluted share is expected to be
$0.44 to $0.56, which excludes stock-based compensation of
approximately $9.1 million, the amortization of acquired intangible
assets of approximately $3.0 million, restructuring of
approximately $0.3 million and assumes approximately 42.2 million
weighted-average shares outstanding.
Conference Call Information
Brightcove will host a conference call today, February 17, 2021,
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 13716183. A replay of the webcast will also be
available for a limited time at http://investor.brightcove.com.
About Brightcove
When video is done right, it can have a powerful and lasting
effect. Hearts open. Minds change. Creativity thrives. Since 2004,
Brightcove has been helping customers discover and experience the
incredible power of video through its award-winning technology,
empowering organizations in more than 70 countries across the globe
to touch audiences in bold and innovative ways.
Brightcove achieves this by developing technologies once thought
impossible, providing customer support without parallel or excuses,
and leveraging the expertise and resources of a global
infrastructure. Video is the world’s most compelling, exciting
medium. Visit www.brightcove.com for more information. Video That
Means Business.™
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 and full year 2021, 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: the effect of the COVID-19 pandemic,
including our business operations, as well as its impact on the
general economic and financial market conditions; our ability to
retain existing customers and acquire new ones; our history of
losses; the timing and successful integration of the Ooyala
acquisition; 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; keeping up with the rapid technological
change required to remain competitive in our industry; 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, restructuring 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, restructuring, 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 an acquisition.
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, 2020 December 31, 2019
Assets Current assets: Cash and
cash equivalents
$
37,472
$
22,759
Accounts receivable, net of allowance
29,305
31,181
Prepaid expenses and other current assets
18,738
11,884
Total current assets
85,515
65,824
Property and equipment, net
15,968
12,086
Operating lease right-of-use asset
8,699
16,912
Intangible assets, net
10,465
13,875
Goodwill
60,902
60,902
Other assets
5,254
3,268
Total assets
$
186,803
$
172,867
Liabilities and stockholders' equity Current
liabilities: Accounts payable
$
10,456
$
9,917
Accrued expenses
25,397
20,925
Operating lease liability
4,346
6,174
Deferred revenue
58,741
49,260
Total current liabilities
98,940
86,276
Operating lease liability, net of current portion
5,498
11,701
Other liabilities
2,763
767
Total liabilities
107,201
98,744
Stockholders' equity: Common
stock
40
39
Additional paid-in capital
287,059
276,365
Treasury stock, at cost
(871
)
(871
)
Accumulated other comprehensive loss
(188
)
(785
)
Accumulated deficit
(206,438
)
(200,625
)
Total stockholders’ equity
79,602
74,123
Total liabilities and stockholders' equity
$
186,803
$
172,867
Brightcove Inc.
Condensed Consolidated
Statements of Operations
(in thousands, except per
share amounts)
Three Months Ended December
31,
Twelve Months Ended December
31,
2020
2019
2020
2019
Revenue: Subscription and support revenue
$
50,728
$
44,626
$
187,341
$
173,818
Professional services and other revenue
2,962
2,977
10,012
10,637
Total revenue
53,690
47,603
197,353
184,455
Cost of revenue: (1) (2) Cost of subscription and support
revenue
16,834
16,827
67,124
67,064
Cost of professional services and other revenue
2,624
1,973
8,973
8,405
Total cost of revenue
19,458
18,800
76,097
75,469
Gross profit
34,232
28,803
121,256
108,986
Operating expenses: (1) (2) Research and development
7,779
9,385
33,978
32,535
Sales and marketing
17,442
14,725
59,812
60,375
General and administrative
7,388
8,207
27,021
25,692
Merger-related
-
3,356
5,768
11,447
Total operating expenses
32,609
35,673
126,579
130,049
Income (loss) from operations
1,623
(6,870
)
(5,323
)
(21,063
)
Other income (expense), net
419
197
128
(280
)
Net income (loss) before income taxes
2,042
(6,673
)
(5,195
)
(21,343
)
Provision for income taxes
21
39
618
560
Net income (loss)
$
2,021
$
(6,712
)
$
(5,813
)
$
(21,903
)
Net income (loss) per share—basic and diluted
Basic
$
0.05
$
(0.17
)
$
(0.15
)
$
(0.58
)
Diluted
0.05
(0.17
)
(0.15
)
(0.58
)
Weighted-average shares—basic and diluted
Basic
39,932
38,891
39,473
38,028
Diluted
41,646
38,891
39,473
38,028
(1) Stock-based compensation included in above line
items: Cost of subscription and support revenue
$
140
$
342
$
592
$
683
Cost of professional services and other revenue
81
66
314
289
Research and development
239
589
1,078
1,444
Sales and marketing
699
1,302
3,139
2,713
General and administrative
902
2,456
3,662
4,130
(2) Amortization of acquired intangible
assets included in the above line items: Cost of
subscription and support revenue
$
335
$
495
$
1,501
$
1,621
Sales and marketing
477
468
1,909
1,584
Brightcove Inc.
Condensed Consolidated
Statements of Cash Flows
(in thousands)
Twelve Months Ended December
31,
Operating activities
2020
2019
Net loss
$
(5,813
)
$
(21,903
)
Adjustments to reconcile net loss to net cash provided by operating
activities: Depreciation and amortization
8,695
8,422
Stock-based compensation
8,785
9,259
Provision for reserves on accounts receivable
648
1,137
Changes in assets and liabilities: Accounts receivable
1,358
(5,537
)
Prepaid expenses and other current assets
(6,918
)
1,213
Other assets
(1,937
)
(758
)
Accounts payable
1,014
1,682
Accrued expenses
5,600
6,749
Operating leases
182
(302
)
Deferred revenue
9,698
2,746
Net cash provided by operating activities
21,312
2,708
Investing activities Cash paid for
acquisition, net of cash acquired
-
(5,339
)
Purchases of property and equipment, net of returns
(2,362
)
(1,047
)
Capitalization of internal-use software costs
(6,362
)
(6,232
)
Net cash used in investing activities
(8,724
)
(12,618
)
Financing activities Proceeds from
exercise of stock options
2,216
3,473
Proceeds from debt
10,000
-
Debt paydown
(10,000
)
-
Other financing activities
(631
)
(296
)
Net cash provided by financing activities
1,585
3,177
Effect of exchange rate changes on cash and cash
equivalents
540
186
Net increase (decrease) in cash and cash equivalents
14,713
(6,547
)
Cash and cash equivalents at beginning of period
22,759
29,306
Cash and cash equivalents at end of period
$
37,472
$
22,759
Brightcove Inc.
Reconciliation of GAAP Gross Profit, GAAP Income (Loss) From
Operations, GAAP Net Income (Loss) and GAAP Net Income (Loss) Per
Share to Non-GAAP Gross Profit, Non-GAAP
Income From Operations, Non-GAAP Net Income and Non-GAAP Net Income
Per Share (in thousands, except per share
amounts)
Three Months Ended December
31,
Twelve Months Ended December
31,
2020
2019
2020
2019
GROSS PROFIT: GAAP gross profit
$
34,232
$
28,803
$
121,256
$
108,986
Stock-based compensation expense
221
408
906
972
Amortization of acquired intangible assets
335
495
1,501
1,621
Restructuring
-
-
51
292
Non-GAAP gross profit
$
34,788
$
29,706
$
123,714
$
111,871
INCOME (LOSS) FROM OPERATIONS: GAAP
income (loss) from operations
$
1,623
$
(6,870
)
$
(5,323
)
$
(21,063
)
Stock-based compensation expense
2,061
4,755
8,785
9,259
Amortization of acquired intangible assets
812
963
3,410
3,205
Merger-related
-
3,356
5,768
11,447
Restructuring
873
-
2,583
752
Non-GAAP income from operations
$
5,369
$
2,204
$
15,223
$
3,600
NET INCOME (LOSS): GAAP net income
(loss)
$
2,021
$
(6,712
)
$
(5,813
)
$
(21,903
)
Stock-based compensation expense
2,061
4,755
8,785
9,259
Amortization of acquired intangible assets
812
963
3,410
3,205
Merger-related
-
3,356
5,768
11,447
Restructuring
873
-
2,583
752
Non-GAAP net income
$
5,767
$
2,362
$
14,733
$
2,760
GAAP diluted net income (loss) per share
$
0.05
$
(0.17
)
$
(0.15
)
$
(0.58
)
Non-GAAP diluted net income per share
$
0.14
$
0.06
$
0.36
$
0.07
Shares used in computing GAAP
diluted net income (loss) per share
39,932
38,891
39,473
37,739
Shares used in computing Non-GAAP diluted net income per share
41,646
39,691
40,449
39,104
Brightcove Inc.
Calculation of Adjusted
EBITDA
(in thousands)
Three Months Ended December
31,
Twelve Months Ended December
31,
2020
2019
2020
2019
Net income (loss)
$
2,021
$
(6,712
)
$
(5,813
)
$
(21,903
)
Other expense, net
(419
)
(197
)
(128
)
280
Provision for income taxes
21
39
618
560
Depreciation and amortization
2,199
2,272
8,695
8,422
Stock-based compensation expense
2,061
4,755
8,785
9,259
Merger-related
-
3,356
5,768
11,447
Restructuring
873
-
2,583
752
Adjusted EBITDA
$
6,756
$
3,513
$
20,508
$
8,817
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210217005972/en/
Investors: ICR for Brightcove Brian Denyeau, 646-277-1251
brian.denyeau@icrinc.com or Media: Brightcove Meredith
Duhaime mduhaime@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