BOSTON--(BUSINESS WIRE)--Nov 4, 2024--
Brightcove Inc. (Nasdaq: BCOV), the world’s most trusted streaming technology company, today announced financial results for the third quarter ended September 30, 2024.
“We delivered strong third quarter results, highlighted by revenue and profitability meaningfully above the high end of our guidance ranges, and a return to double digit adjusted EBITDA margins. We also continued to strengthen our long-term business with record average revenue per customer and long-term backlog. With our year-to-date performance and our outlook for the fourth quarter we are raising the high-end of our full year guidance range on both the top and bottom line,” said Marc DeBevoise, Brightcove’s Chief Executive Officer.
DeBevoise added, “The recent, successful launch of the Brightcove AI Suite also demonstrates our ability and commitment to make the right, targeted investments in innovation to deliver enhanced value for our customers and position us to capture new revenue opportunities in the future.”
Third Quarter 2024 Financial Highlights:
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 Third Quarter and Recent Highlights/Updates:
Business Outlook:
Based on information as of today, November 4, 2024, the Company is issuing the following business updates and financial guidance.
Fourth Quarter 2024 Guidance:
Full Year 2024 Guidance:
Earnings Stream Information:
Brightcove earnings will be streamed on November 4, 2024, at 5:00 p.m. (Eastern Time) to discuss the Company's financial results and current business outlook. To access the live stream, visit the “Investors” page of the Company’s website, http://investor.brightcove.com. Once the live stream concludes, an on-demand recording will be available on Brightcove’s Investor page for a limited time at http://investor.brightcove.com.
AboutBrightcove Inc.(NASDAQ: BCOV)
Brightcove creates the world’s most reliable, scalable, and secure streaming technology solutions to build a greater connection between companies and their audiences, no matter where they are or on which devices they consume content. In more than 60 countries, Brightcove’s intelligent video platform enables businesses to sell to customers more effectively, media leaders to stream and monetize content more reliably, and every organization to communicate with team members more powerfully. With two Technology and Engineering Emmy® Awards for innovation, uptime that consistently leads the industry, and unmatched scalability, we continuously push the boundaries of what video can do. Follow Brightcove on LinkedIn, X, Facebook, Instagram, Threads, and YouTube. Visit 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 fourth fiscal quarter and full year 2024, our growth strategy and strategic priorities, and expected customer uses of and benefits from our products. 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," “builds,” "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 macro-economic conditions currently affecting the global economy; our ability to retain existing customers and acquire new ones; our history of losses; 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; our restructuring efforts, including risks that the related costs and charges may be greater than anticipated and that the restructuring efforts may not generate their intended benefits, may adversely affect the Company’s internal programs and the Company’s ability to recruit and train skilled and motivated personnel, and may be distracting to employees and management; 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 and similar disclosures in our subsequent filings with the Securities and Exchange Commission. 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, non-GAAP diluted net income (loss) per share, and revenue and adjusted EBITDA on a constant currency basis. 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, amortization of acquired intangible assets, merger-related expense, gain on sales of assets, and restructuring expense. The non-GAAP financial results discussed above of adjusted EBITDA is defined as consolidated net income (loss), plus other income/expense, including interest expense and interest income, the provision for income taxes, depreciation and amortization expense, including the amortization of acquired intangible assets, stock-based compensation expense, merger-related expense, gain on sales of assets, and restructuring expense. Merger-related expenses include fees incurred in connection with an acquisition and restructuring expenses include primarily cash severance costs. Revenue and adjusted EBITDA on a constant currency basis reflect our revenues and adjusted EBITDA using exchange rates used for Brightcove’s Fiscal Year 2024 outlook on Brightcove’s press release on February 22, 2024. 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) | |||||||
September 30, 2024 | December 31, 2023 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 26,965 |
| $ | 18,615 |
| |
Accounts receivable, net of allowance |
| 27,772 |
|
| 33,451 |
| |
Prepaid expenses and other current assets |
| 17,735 |
|
| 18,333 |
| |
Total current assets |
| 72,472 |
|
| 70,399 |
| |
Property and equipment, net |
| 36,712 |
|
| 42,476 |
| |
Operating lease right-of-use asset |
| 17,484 |
|
| 16,233 |
| |
Intangible assets, net |
| 3,602 |
|
| 6,368 |
| |
Goodwill |
| 74,859 |
|
| 74,859 |
| |
Other assets |
| 5,409 |
|
| 5,772 |
| |
Total assets | $ | 210,538 |
| $ | 216,107 |
| |
Liabilities and stockholders' equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 7,534 |
| $ | 14,422 |
| |
Accrued expenses |
| 21,357 |
|
| 17,566 |
| |
Operating lease liability |
| 4,236 |
|
| 4,486 |
| |
Deferred revenue |
| 63,213 |
|
| 68,155 |
| |
Total current liabilities |
| 96,340 |
|
| 104,629 |
| |
Operating lease liability, net of current portion |
| 18,452 |
|
| 17,358 |
| |
Other liabilities |
| 304 |
|
| 207 |
| |
Total liabilities |
| 115,096 |
|
| 122,194 |
| |
Stockholders' equity: | |||||||
Common stock |
| 45 |
|
| 44 |
| |
Additional paid-in capital |
| 336,996 |
|
| 328,918 |
| |
Treasury stock, at cost |
| (871 | ) |
| (871 | ) | |
Accumulated other comprehensive loss |
| (1,158 | ) |
| (1,236 | ) | |
Accumulated deficit |
| (239,570 | ) |
| (232,942 | ) | |
Total stockholders’ equity |
| 95,442 |
|
| 93,913 |
| |
Total liabilities and stockholders' equity | $ | 210,538 |
| $ | 216,107 |
| |
Brightcove Inc. | |||||||||||||||
Condensed Consolidated Statements of Operations | |||||||||||||||
(in thousands, except per share amounts) | |||||||||||||||
Three Months Ended September 30, |
| Nine Months Ended September 30, | |||||||||||||
2024 |
| 2023 |
| 2024 |
| 2023 | |||||||||
Revenue: | |||||||||||||||
Subscription and support revenue | $ | 47,963 |
| $ | 48,571 |
| $ | 143,329 |
| $ | 144,686 |
| |||
Professional services and other revenue |
| 1,987 |
|
| 2,409 |
|
| 6,349 |
|
| 6,345 |
| |||
Total revenue |
| 49,950 |
|
| 50,980 |
|
| 149,678 |
|
| 151,031 |
| |||
Cost of revenue: (1) (2) | |||||||||||||||
Cost of subscription and support revenue |
| 16,574 |
|
| 16,892 |
|
| 50,658 |
|
| 51,760 |
| |||
Cost of professional services and other revenue |
| 1,804 |
|
| 2,369 |
|
| 6,749 |
|
| 6,269 |
| |||
Total cost of revenue |
| 18,378 |
|
| 19,261 |
|
| 57,407 |
|
| 58,029 |
| |||
Gross profit |
| 31,572 |
|
| 31,719 |
|
| 92,271 |
|
| 93,002 |
| |||
Operating expenses: (1) (2) | |||||||||||||||
Research and development |
| 8,742 |
|
| 8,730 |
|
| 26,566 |
|
| 28,941 |
| |||
Sales and marketing |
| 16,393 |
|
| 17,222 |
|
| 49,927 |
|
| 55,721 |
| |||
General and administrative |
| 9,241 |
|
| 7,941 |
|
| 27,607 |
|
| 27,410 |
| |||
Merger-related |
| - |
|
| 117 |
|
| - |
|
| 307 |
| |||
Gain on sale of assets |
| - |
|
| - |
|
| (6,000 | ) |
| - |
| |||
Total operating expenses |
| 34,376 |
|
| 34,010 |
|
| 98,100 |
|
| 112,379 |
| |||
Loss from operations |
| (2,804 | ) |
| (2,291 | ) |
| (5,829 | ) |
| (19,377 | ) | |||
Other income, net |
| 139 |
|
| 130 |
|
| 150 |
|
| 9 |
| |||
Loss before income taxes |
| (2,665 | ) |
| (2,161 | ) |
| (5,679 | ) |
| (19,368 | ) | |||
Provision for income taxes |
| 292 |
|
| 260 |
|
| 949 |
|
| 1,004 |
| |||
Net loss | $ | (2,957 | ) | $ | (2,421 | ) | $ | (6,628 | ) | $ | (20,372 | ) | |||
Net loss per share—basic and diluted | |||||||||||||||
Basic | $ | (0.07 | ) | $ | (0.06 | ) | $ | (0.15 | ) | $ | (0.47 | ) | |||
Diluted |
| (0.07 | ) |
| (0.06 | ) |
| (0.15 | ) |
| (0.47 | ) | |||
Weighted-average shares—basic and diluted | |||||||||||||||
Basic |
| 44,970 |
|
| 43,332 |
|
| 44,563 |
|
| 42,976 |
| |||
Diluted |
| 44,970 |
|
| 43,332 |
|
| 44,563 |
|
| 42,976 |
| |||
(1) Stock-based compensation included in above line items: | |||||||||||||||
Cost of subscription and support revenue | $ | 105 |
| $ | 122 |
| $ | 333 |
| $ | 389 |
| |||
Cost of professional services and other revenue |
| 75 |
|
| 92 |
|
| 186 |
|
| 284 |
| |||
Research and development |
| 494 |
|
| 598 |
|
| 1,285 |
|
| 1,837 |
| |||
Sales and marketing |
| 795 |
|
| 1,057 |
|
| 2,332 |
|
| 3,157 |
| |||
General and administrative |
| 1,162 |
|
| 1,541 |
|
| 3,867 |
|
| 4,773 |
| |||
(2) Amortization of acquired intangible assets included in the above line items: | |||||||||||||||
Cost of subscription and support revenue | $ | 521 |
| $ | 547 |
| $ | 1,561 |
| $ | 1,749 |
| |||
Sales and marketing |
| 401 |
|
| 406 |
|
| 1,205 |
|
| 1,239 |
| |||
Brightcove Inc. | |||||||||||||||
Condensed Consolidated Statements of Cash Flows | |||||||||||||||
(in thousands) | |||||||||||||||
Three Months Ended September 30, |
| Nine Months Ended September 30, | |||||||||||||
Operating activities | 2024 |
| 2023 |
| 2024 |
| 2023 | ||||||||
Net loss | $ | (2,957 | ) | $ | (2,421 | ) | $ | (6,628 | ) | $ | (20,372 | ) | |||
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||||||||||
Depreciation and amortization |
| 5,115 |
|
| 4,236 |
|
| 15,199 |
|
| 12,244 |
| |||
Stock-based compensation |
| 2,631 |
|
| 3,410 |
|
| 8,003 |
|
| 10,440 |
| |||
Provision for reserves on accounts receivable |
| 22 |
|
| (84 | ) |
| 6 |
|
| 138 |
| |||
Gain on sale of assets |
| - |
|
| - |
|
| (6,000 | ) |
| - |
| |||
Changes in assets and liabilities: | |||||||||||||||
Accounts receivable |
| 564 |
|
| (337 | ) |
| 5,651 |
|
| (4,556 | ) | |||
Prepaid expenses and other current assets |
| 604 |
|
| 1,198 |
|
| (431 | ) |
| (684 | ) | |||
Other assets |
| (699 | ) |
| 240 |
|
| 271 |
|
| 1,042 |
| |||
Accounts payable |
| 1,928 |
|
| (311 | ) |
| (5,603 | ) |
| 3,065 |
| |||
Accrued expenses |
| 1,800 |
|
| (1,263 | ) |
| 4,238 |
|
| (6,737 | ) | |||
Operating leases |
| (138 | ) |
| (117 | ) |
| (400 | ) |
| (291 | ) | |||
Deferred revenue |
| (5,465 | ) |
| (2,423 | ) |
| (4,853 | ) |
| 6,017 |
| |||
Net cash provided by operating activities |
| 3,405 |
|
| 2,128 |
|
| 9,453 |
|
| 306 |
| |||
Investing activities | |||||||||||||||
Gain on sale of patents |
| - |
|
| - |
|
| 6,000 |
|
| - |
| |||
Purchases of property and equipment, net of returns |
| (96 | ) |
| (1,492 | ) |
| (1,253 | ) |
| (2,820 | ) | |||
Capitalization of internal-use software costs |
| (1,707 | ) |
| (2,804 | ) |
| (5,736 | ) |
| (10,037 | ) | |||
Net cash used in investing activities |
| (1,803 | ) |
| (4,296 | ) |
| (989 | ) |
| (12,857 | ) | |||
Financing activities | |||||||||||||||
Deferred acquisition payments |
| - |
|
| - |
|
| - |
|
| (1,700 | ) | |||
Other financing activities |
| - |
|
| - |
|
| (239 | ) |
| (256 | ) | |||
Net cash used in financing activities |
| - |
|
| - |
|
| (239 | ) |
| (1,956 | ) | |||
Effect of exchange rate changes on cash and cash equivalents |
| 1,193 |
|
| (503 | ) |
| 125 |
|
| (965 | ) | |||
Net increase (decrease) in cash and cash equivalents |
| 2,795 |
|
| (2,671 | ) |
| 8,350 |
|
| (15,472 | ) | |||
Cash and cash equivalents at beginning of period |
| 24,170 |
|
| 19,093 |
|
| 18,615 |
|
| 31,894 |
| |||
Cash and cash equivalents at end of period | $ | 26,965 |
| $ | 16,422 |
| $ | 26,965 |
| $ | 16,422 |
| |||
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 September 30, |
| Nine Months Ended September 30, | ||||||||||||||
2024 |
| 2023 |
| 2024 |
| 2023 | ||||||||||
GROSS PROFIT: | ||||||||||||||||
GAAP gross profit | $ | 31,572 |
| $ | 31,719 |
| $ | 92,271 |
| $ | 93,002 |
| ||||
Stock-based compensation expense |
| 180 |
|
| 214 |
|
| 519 |
|
| 673 |
| ||||
Amortization of acquired intangible assets |
| 521 |
|
| 547 |
|
| 1,561 |
|
| 1,749 |
| ||||
Restructuring expense |
| - |
|
| 6 |
|
| 193 |
|
| 104 |
| ||||
Non-GAAP gross profit | $ | 32,273 |
| $ | 32,486 |
| $ | 94,544 |
| $ | 95,528 |
| ||||
GAAP gross profit as a percentage of revenue |
| 63 | % |
| 62 | % |
| 62 | % |
| 62 | % | ||||
Stock-based compensation expense |
| 0.4 | % |
| 0.4 | % |
| 0.3 | % |
| 0.4 | % | ||||
Amortization of acquired intangible assets |
| 1.0 | % |
| 1.1 | % |
| 1.0 | % |
| 1.2 | % | ||||
Restructuring expense |
| 0.0 | % |
| 0.0 | % |
| 0.1 | % |
| 0.1 | % | ||||
Non-GAAP gross profit as a percentage of revenue |
| 65 | % |
| 64 | % |
| 63 | % |
| 63 | % | ||||
INCOME (LOSS) FROM OPERATIONS: | ||||||||||||||||
GAAP loss from operations | $ | (2,804 | ) | $ | (2,291 | ) | $ | (5,829 | ) | $ | (19,377 | ) | ||||
Stock-based compensation expense |
| 2,631 |
|
| 3,410 |
|
| 8,003 |
|
| 10,440 |
| ||||
Amortization of acquired intangible assets |
| 922 |
|
| 953 |
|
| 2,766 |
|
| 2,988 |
| ||||
Merger-related expense |
| - |
|
| 117 |
|
| - |
|
| 307 |
| ||||
Restructuring expense |
| 111 |
|
| 74 |
|
| 2,427 |
|
| 2,830 |
| ||||
Gain on sale of assets |
| - |
|
| - |
|
| (6,000 | ) |
| - |
| ||||
Non-GAAP income (loss) from operations | $ | 860 |
| $ | 2,263 |
| $ | 1,367 |
| $ | (2,812 | ) | ||||
NET (LOSS) INCOME: | ||||||||||||||||
GAAP net loss | $ | (2,957 | ) | $ | (2,421 | ) | $ | (6,628 | ) | $ | (20,372 | ) | ||||
Stock-based compensation expense |
| 2,631 |
|
| 3,410 |
|
| 8,003 |
|
| 10,440 |
| ||||
Amortization of acquired intangible assets |
| 922 |
|
| 953 |
|
| 2,766 |
|
| 2,988 |
| ||||
Merger-related expense |
| - |
|
| 117 |
|
| - |
|
| 307 |
| ||||
Restructuring expense |
| 111 |
|
| 74 |
|
| 2,427 |
|
| 2,830 |
| ||||
Gain on sale of assets |
| - |
|
| - |
|
| (6,000 | ) |
| - |
| ||||
Non-GAAP net income (loss) | $ | 707 |
| $ | 2,133 |
| $ | 568 |
| $ | (3,807 | ) | ||||
GAAP diluted net loss per share | $ | (0.07 | ) | $ | (0.06 | ) | $ | (0.15 | ) | $ | (0.47 | ) | ||||
Non-GAAP diluted net income (loss) per share | $ | 0.02 |
| $ | 0.05 |
| $ | 0.01 |
| $ | (0.09 | ) | ||||
Shares used in computing GAAP diluted net loss per share |
| 44,970 |
|
| 43,332 |
|
| 44,563 |
|
| 42,976 |
| ||||
Shares used in computing Non-GAAP diluted net income per share |
| 46,159 |
|
| 43,364 |
|
| 45,153 |
|
| 42,976 |
| ||||
Brightcove Inc. | ||||||||||||||||
Calculation of Adjusted EBITDA | ||||||||||||||||
(in thousands) | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
Net loss | $ | (2,957 | ) | $ | (2,421 | ) | $ | (6,628 | ) | $ | (20,372 | ) | ||||
Stock-based compensation expense |
| 2,631 |
|
| 3,410 |
|
| 8,003 |
|
| 10,440 |
| ||||
Depreciation and amortization |
| 5,115 |
|
| 4,236 |
|
| 15,199 |
|
| 12,244 |
| ||||
Merger-related expense |
| - |
|
| 117 |
|
| - |
|
| 307 |
| ||||
Restructuring expense |
| 111 |
|
| 74 |
|
| 2,427 |
|
| 2,830 |
| ||||
Gain on sale of assets |
| - |
|
| - |
|
| (6,000 | ) |
| - |
| ||||
Other (income) expense, net |
| (139 | ) |
| (130 | ) |
| (150 | ) |
| (9 | ) | ||||
Provision for income taxes |
| 292 |
|
| 260 |
|
| 949 |
|
| 1,004 |
| ||||
Adjusted EBITDA | $ | 5,053 |
| $ | 5,546 |
| $ | 13,800 |
| $ | 6,444 |
|
Brightcove Inc. | ||||||
Reconciliation of Revenue on a Constant Currency Basis and Calculation of Adjusted EBITDA on a Constant Currency Basis | ||||||
(in thousands) | ||||||
Three Months Ended September 30, |
| Nine Months Ended September 30, | ||||
2024 |
| 2024 | ||||
Total revenue | $ | 49,950 | $ | 149,678 | ||
Constant currency adjustment |
| 171 |
| 850 | ||
Total revenue on a constant currency basis | $ | 50,121 | $ | 150,528 | ||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||
| 2024 |
| 2024 | |||
Adjusted EBITDA | $ | 5,053 | $ | 13,800 | ||
Constant currency adjustment |
| 33 |
| 391 | ||
Adjusted EBITDA on a constant currency basis | $ | 5,086 | $ | 14,191 |
View source version on businesswire.com:https://www.businesswire.com/news/home/20241104478084/en/
CONTACT: Investors:
ICR for Brightcove
Brian Denyeau, 646-277-1251
brian.denyeau@icrinc.com
Media:
Brightcove
Sara Griggs, 929-888-4866
sgriggs@brightcove.com
KEYWORD: MASSACHUSETTS UNITED STATES NORTH AMERICA
INDUSTRY KEYWORD: COMMUNICATIONS TECHNOLOGY AUDIO/VIDEO SOFTWARE ARTIFICIAL INTELLIGENCE INTERNET MEDIA
SOURCE: Brightcove Inc.
Copyright Business Wire 2024.
PUB: 11/04/2024 04:25 PM/DISC: 11/04/2024 04:24 PM
http://www.businesswire.com/news/home/20241104478084/en