Get Cash Back and $0 Commissions
+ The Power of TradeStation
Business Wire 24-Apr-2019 4:05 PM
Brightcove Inc. (NASDAQ:BCOV), the leading provider of cloud services for video, today announced financial results for the first quarter ended March 31, 2019.
"Brightcove made good progress in the first quarter on its strategic plan that we believe will enable the company to achieve its long-term goal of breakout growth and profitability. We continue to be encouraged by the confidence and loyalty our customers have in Brightcove, which is a clear reflection of the value we deliver for them. The recent acquisition of Ooyala's online video platform business affirms our clear leadership in video, extends our reach to some of the largest, most recognizable brands in the world and adds highly skilled video experts to our product development and customer support teams," said Jeff Ray, chief executive officer, Brightcove.
Ray added, "We are excited to lay out our product vision and roadmap to our current and prospective customers next month at our annual PLAY conference. We are grateful to the customers who provided early, positive feedback on our roadmap and provided great insight into what capabilities customers need most. We are confident this robust product development pipeline, coupled with a tightly aligned go-to-market strategy, will position Brightcove to fully capitalize on the multi-billion dollar online video market we are targeting."
First Quarter 2019 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 First Quarter and Recent Highlights:
Business Outlook
Based on information as of today, April 24, 2019, the Company is issuing the following financial guidance.
Second Quarter 2019:
Please note these amounts exclude the impacts of purchase accounting related to Ooyala.
Full Year 2019:
Please note these amounts exclude the impacts of purchase accounting related to Ooyala.
Conference Call Information
Brightcove will host a conference call today, April 24, 2019, 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 13689104. 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 managing, delivering, and monetizing video experiences on every screen. A pioneering force in the world of online video since the company's founding in 2004, Brightcove's award-winning technology, unparalleled services, extensive partner ecosystem, and proven global scale have helped thousands of companies in over 70 countries achieve better business results with video. 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 2019 and full year 2019, 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; 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; 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 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 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) | ||||||||||||||||
March 31, 2019 | December 31, 2018 | |||||||||||||||
Assets | ||||||||||||||||
Current assets: | ||||||||||||||||
Cash and cash equivalents | $ | 28,948 | $ | 29,306 | ||||||||||||
Accounts receivable, net of allowance | 25,188 | 23,264 | ||||||||||||||
Prepaid expenses and other current assets | 12,933 | 11,936 | ||||||||||||||
Total current assets | 67,069 | 64,506 | ||||||||||||||
Property and equipment, net | 9,557 | 9,703 | ||||||||||||||
Operating lease right-of-use asset | 18,073 | - | ||||||||||||||
Intangible assets, net | 5,504 | 5,919 | ||||||||||||||
Goodwill | 50,776 | 50,776 | ||||||||||||||
Other assets | 2,360 | 2,452 | ||||||||||||||
Total assets | $ | 153,339 | $ | 133,356 | ||||||||||||
Liabilities and stockholders' equity | ||||||||||||||||
Current liabilities: | ||||||||||||||||
Accounts payable | $ | 7,839 | $ | 7,712 | ||||||||||||
Accrued expenses | 14,515 | 13,982 | ||||||||||||||
Operating lease liability | 6,285 | - | ||||||||||||||
Deferred revenue | 43,654 | 39,846 | ||||||||||||||
Total current liabilities | 72,293 | 61,540 | ||||||||||||||
Operating lease liability, net of current portion | 12,983 | - | ||||||||||||||
Other liabilities | 289 | 1,202 | ||||||||||||||
Total liabilities | 85,565 | 62,742 | ||||||||||||||
Stockholders' equity: | ||||||||||||||||
Common stock | 37 | 37 | ||||||||||||||
Additional paid-in capital | 253,244 | 251,122 | ||||||||||||||
Treasury stock, at cost | (871 | ) | (871 | ) | ||||||||||||
Accumulated other comprehensive loss | (931 | ) | (952 | ) | ||||||||||||
Accumulated deficit | (183,705 | ) | (178,722 | ) | ||||||||||||
Total stockholders' equity | 67,774 | 70,614 | ||||||||||||||
Total liabilities and stockholders' equity | $ | 153,339 | $ | 133,356 | ||||||||||||
Brightcove Inc. | ||||||||||
Condensed Consolidated Statements of Operations | ||||||||||
(in thousands, except per share amounts) | ||||||||||
Three Months Ended March 31, | ||||||||||
2019 | 2018 | |||||||||
Revenue: | ||||||||||
Subscription and support revenue | $ | 38,877 | $ | 37,867 | ||||||
Professional services and other revenue | 2,959 | 3,327 | ||||||||
Total revenue | 41,836 | 41,194 | ||||||||
Cost of revenue: (1) (2) | ||||||||||
Cost of subscription and support revenue | 14,170 | 13,456 | ||||||||
Cost of professional services and other revenue | 2,576 | 3,755 | ||||||||
Total cost of revenue | 16,746 | 17,211 | ||||||||
Gross profit | 25,090 | 23,983 | ||||||||
Operating expenses: (1) (2) | ||||||||||
Research and development | 7,394 | 7,775 | ||||||||
Sales and marketing | 14,256 | 13,234 | ||||||||
General and administrative | 5,261 | 5,390 | ||||||||
Merger-related | 2,932 | - | ||||||||
Total operating expenses | 29,843 | 26,399 | ||||||||
Loss from operations | (4,753 | ) | (2,416 | ) | ||||||
Other (expense) income, net | (55 | ) | 271 | |||||||
Net loss before income taxes | (4,808 | ) | (2,145 | ) | ||||||
Provision for income taxes | 175 | 112 | ||||||||
Net loss | $ | (4,983 | ) | $ | (2,257 | ) | ||||
Net (loss) income per share—basic and diluted | ||||||||||
Basic | $ | (0.14 | ) | $ | (0.06 | ) | ||||
Diluted | (0.14 | ) | (0.06 | ) | ||||||
Weighted-average shares—basic and diluted | ||||||||||
Basic | 36,677 | 34,923 | ||||||||
Diluted | 36,677 | 34,923 | ||||||||
(1) Stock-based compensation included in above line items: | ||||||||||
Cost of subscription and support revenue | $ | 119 | $ | 114 | ||||||
Cost of professional services and other revenue | 84 | 40 | ||||||||
Research and development | 263 | 346 | ||||||||
Sales and marketing | 458 | 665 | ||||||||
General and administrative | 500 | 503 | ||||||||
(2) Amortization of acquired intangible assets included in the above line items: | ||||||||||
Cost of subscription and support revenue | $ | 255 | $ | 508 | ||||||
Sales and marketing | 161 | 166 | ||||||||
Brightcove Inc. | ||||||||||
Condensed Consolidated Statements of Cash Flows | ||||||||||
(in thousands) | ||||||||||
Three Months Ended March 31, | ||||||||||
Operating activities | 2019 | 2018 | ||||||||
Net loss | $ | (4,983 | ) | $ | (2,257 | ) | ||||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||||
Depreciation and amortization | 1,713 | 1,644 | ||||||||
Stock-based compensation | 1,424 | 1,668 | ||||||||
Provision for reserves on accounts receivable | 70 | 13 | ||||||||
Changes in assets and liabilities: | ||||||||||
Accounts receivable | (2,033 | ) | (2,038 | ) | ||||||
Prepaid expenses and other current assets | (803 | ) | (616 | ) | ||||||
Other assets | 92 | (179 | ) | |||||||
Accounts payable | 715 | (128 | ) | |||||||
Accrued expenses | 353 | (80 | ) | |||||||
Operating leases | (68 | ) | - | |||||||
Deferred revenue | 3,783 | 2,908 | ||||||||
Net cash provided by operating activities | 263 | 935 | ||||||||
Investing activities | ||||||||||
Purchases of property and equipment, net of returns | (244 | ) | (538 | ) | ||||||
Capitalization of internal-use software costs | (946 | ) | (1,001 | ) | ||||||
Net cash used in investing activities | (1,190 | ) | (1,539 | ) | ||||||
Financing activities | ||||||||||
Proceeds from exercise of stock options | 625 | 683 | ||||||||
Other financing activities | (58 | ) | (139 | ) | ||||||
Net cash provided by financing activities | 567 | 544 | ||||||||
Effect of exchange rate changes on cash and cash equivalents | 2 | 347 | ||||||||
Net (decrease) increase in cash and cash equivalents | (358 | ) | 287 | |||||||
Cash and cash equivalents at beginning of period | 29,306 | 26,132 | ||||||||
Cash and cash equivalents at end of period | $ | 28,948 | $ | 26,419 | ||||||
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 (Loss) Income and Non-GAAP Net (Loss) Income Per Share | |||||||||||||
(in thousands, except per share amounts) | |||||||||||||
Three Months Ended March 31, | |||||||||||||
2019 | 2018 | ||||||||||||
GROSS PROFIT: | |||||||||||||
GAAP gross profit | $ | 25,090 | $ | 23,983 | |||||||||
Stock-based compensation expense | 203 | 154 | |||||||||||
Amortization of acquired intangible assets | 255 | 508 | |||||||||||
Non-GAAP gross profit | $ | 25,548 | $ | 24,645 | |||||||||
LOSS FROM OPERATIONS: | |||||||||||||
GAAP loss from operations | $ | (4,753 | ) | $ | (2,416 | ) | |||||||
Stock-based compensation expense | 1,424 | 1,668 | |||||||||||
Amortization of acquired intangible assets | 416 | 674 | |||||||||||
Merger-related | 2,932 | - | |||||||||||
Non-GAAP income (loss) from operations | $ | 19 | $ | (74 | ) | ||||||||
NET LOSS: | |||||||||||||
GAAP net loss | $ | (4,983 | ) | $ | (2,257 | ) | |||||||
Stock-based compensation expense | 1,424 | 1,668 | |||||||||||
Amortization of acquired intangible assets | 416 | 674 | |||||||||||
Merger-related | 2,932 | - | |||||||||||
Non-GAAP net (loss) income | $ | (211 | ) | $ | 85 | ||||||||
GAAP diluted net (loss) income per share | $ | (0.14 | ) | $ | (0.06 | ) | |||||||
Non-GAAP diluted net (loss) income per share | $ | (0.01 | ) | $ | 0.00 | ||||||||
Shares used in computing GAAP diluted net loss per share | 36,677 | 34,923 | |||||||||||
Shares used in computing Non-GAAP diluted net (loss) income per share | 36,677 | 35,663 | |||||||||||
Brightcove Inc. | ||||||||||||
Calculation of Adjusted EBITDA | ||||||||||||
(in thousands) | ||||||||||||
Three Months Ended March 31, | ||||||||||||
2019 | 2018 | |||||||||||
Net loss | $ | (4,983 | ) | $ | (2,257 | ) | ||||||
Other expense, net | 55 | (271 | ) | |||||||||
Provision for income taxes | 175 | 112 | ||||||||||
Depreciation and amortization | 1,713 | 1,644 | ||||||||||
Stock-based compensation expense | 1,424 | 1,668 | ||||||||||
Merger-related | 2,932 | - | ||||||||||
Adjusted EBITDA | $ | 1,316 | $ | 896 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20190424005920/en/