Brightcove Inc. (Nasdaq: BCOV), the world’s most trusted
streaming technology company, today announced financial results for
the second quarter ended June 30, 2024.
“We are pleased to have exceeded expectations and the high-end
of our guidance range on both Revenue and Adjusted EBITDA, while
generating meaningful cash flow. We are delivering on our
commitments to grow EBITDA substantially and generate significant
free cash flow this year, all while investing in our key strategic
priorities that we expect will return the business to consistent
revenue growth,” said Marc DeBevoise, Brightcove’s Chief Executive
Officer.
Second Quarter 2024 Financial Highlights:
- Revenue for the second quarter of 2024 was $49.2
million, a decrease of 3% compared to $51.0 million for the second
quarter of 2023. Subscription and support revenue was $47.4
million, a decrease of 3% compared to $49.0 million for the second
quarter of 2023.
- Gross profit for the second quarter of 2024 was $29.8
million, representing a gross margin of 61% compared to gross
profit of $32.5 million, representing a gross margin of 64% for the
second quarter of 2023. Non-GAAP gross profit for the second
quarter of 2024 was $30.6 million, representing a non-GAAP gross
margin of 62%, compared to non-GAAP gross profit of $33.4 million,
representing a non-GAAP gross margin of 66% for the second quarter
of 2023. Non-GAAP gross profit and non-GAAP gross margin exclude
stock-based compensation expense, the amortization of acquired
intangible assets and restructuring expense.
- Income (loss) from operations was ($5.0) million
for the second quarter of 2024, compared to ($6.3) million for the
second quarter of 2023. Non-GAAP operating loss, which excludes
stock-based compensation expense, the amortization of acquired
intangible assets, merger-related expense, restructuring expense,
and gain on sale of assets, was ($477,000) for the second quarter
of 2024, compared to non-GAAP operating income of $537,000 during
the second quarter of 2023.
- Net income (loss) was ($5.2) million, or ($0.12) per
diluted share, for the second quarter of 2024. This compares to
($6.2) million, or ($0.14) per diluted share, for the second
quarter of 2023. Non-GAAP net loss, which excludes stock-based
compensation expense, the amortization of acquired intangible
assets, merger-related expense, restructuring expense, and gain on
sale of assets, was ($685,000) for the second quarter of 2024, or
($0.02) per diluted share, compared to non-GAAP net income of
$642,000 for the second quarter of 2023, or $0.01 per diluted
share.
- Adjusted EBITDA was $3.8 million for the second quarter
of 2024, representing an adjusted EBITDA margin of 8% compared to
adjusted EBITDA of $3.6 million for the second quarter of 2023.
Adjusted EBITDA excludes stock-based compensation expense,
depreciation and amortization, merger-related expense,
restructuring expense, gain on sales of assets, other
income/expense and provision for income taxes.
- Cash flow provided by operations was $4.0 million for
the second quarter of 2024, compared to cash flow provided by
operations of $10.8 million for the second quarter of 2023.
- Free cash flow was $1.8 million after the Company
invested $2.2 million in capital expenditures and capitalization of
internal-use software during the second quarter of 2024. Free cash
flow was $7.1 million for the second quarter of 2023.
- Cash and cash equivalents were $24.2 million as of June
30, 2024 compared to $18.6 million on December 31, 2023.
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 Second Quarter and Recent Highlights/Updates:
- Announced agreement with JCOM Co., LTD. (J:COM), Japan’s
largest cable TV company, to power their new streaming service
Ikimono Watch (“Animal Watch”), which plans to broadcast content
from across Japan’s zoos and aquariums. The service utilizes
Brightcove's Android SDK for app development, Video Cloud for
secure content storage, and API integration for efficient content
management and delivery, showcasing Brightcove's ability to provide
comprehensive streaming solutions for major media companies.
- Announced agreement with FrightPix, a new free ad-supported
video-on-demand (AVOD) service for horror, thriller, and true crime
content. FrightPix will utilize Brightcove's video-cloud streaming
platform to deliver high-quality, seamless viewing experiences
across devices, leveraging Brightcove's global scalability, robust
analytics, and industry-leading technology to optimize content
delivery and monetization strategies.
- Announced agreement with Sunn Stream, a streaming service
offering family-friendly movies, music and educational content, to
power their content distribution. Leveraging Brightcove's
industry-leading video-cloud streaming platform, Sunn Stream will
deliver a seamless, curated experience across all devices,
benefiting from unparalleled video quality, global scalability, and
robust analytics to support their growth and enhance user
engagement.
- Signed new, renewed or expanded the relationship with a diverse
set of notable customers in the second quarter. This included a
multi-year, near seven-figure annual new customer deal with a North
American television network in addition to deals with other media
companies such as Seven West Media (Seven Network) and Virgin Media
Television (TV3 Television Network Limited), sports organizations
like All England Lawn Tennis Club Championships (Wimbledon), RayCom
Sports (ACC), and Formula E, and more across the technology, real
estate, retail, hospitality, and finance verticals such as Advanced
Micro Devices, Broadcom, Marriott, McKinsey, Nestlé, Palo Alto
Networks, ServiceNow, and a new sales use case expansion with a
major, global real estate services company.
- We expect to announce our broad capability AI suite later in Q3
and are in process with over a dozen customers on piloting its
capabilities.
- Recognized as a “Leader” for the third consecutive year by the
“Aragon Research Globe for Enterprise Video, 2024” report. The
company was acknowledged for its market solutions and
industry-leading video streaming offerings, supporting customers in
creating, managing, and distributing video content.
- 12-month Backlog (which we define as the aggregate amount of
committed subscription revenue related to future performance
obligations in the next 12 months) was $123.3 million, a 1%
decrease year-over-year from $124.8 million at the end of the
second quarter 2023. Total backlog was $182.2 million, a 3%
increase year-over-year from $176.7 million at the end of the
second quarter 2023. Greater than 12-month backlog hit an all-time
high of $59.0 million, up 14% year-over-year.
- Average annual subscription revenue per premium customer hit an
all-time record of $99,000 in the second quarter of 2024, excluding
starter edition customers who had average annualized revenue of
$4,800 per customer. The average annual subscription revenue per
premium customer increased 4% year-over-year compared to $94,800 in
the second quarter of 2023.
- Ended the second quarter of 2024 with 2,444 customers, of which
1,958 were premium.
Business Outlook:
Based on information as of today, August 7, 2024, the Company is
issuing the following business updates and financial guidance.
Third Quarter 2024 Guidance:
- Revenue is expected to be in the range of $48.0 million
to $49.0 million, including approximately $1.8 million of
professional services revenue and $0.8 million of overages.
- Non-GAAP income (loss) from operations is expected to be
in the range of ($2.0) million to ($1.0) million, which excludes
stock-based compensation of approximately $2.9 million and the
amortization of acquired intangible assets of approximately $0.9
million.
- Adjusted EBITDA is expected to be in the range of $2.5
million to $3.5 million, which excludes stock-based compensation of
approximately $2.9 million, depreciation and amortization of $5.1
million (including amortization of acquired intangible assets of
approximately $0.9 million), and other (income) expense and the
provision for income taxes of approximately $0.3 million.
- Non-GAAP net income (loss) per diluted share is expected
to be ($0.05) to ($0.03), which excludes stock-based compensation
of approximately $2.9 million, the amortization of acquired
intangible assets of approximately $0.9 million, and assumes
approximately 45.0 million weighted-average shares
outstanding.
Full Year 2024 Guidance:
- Revenue is expected to be in the range of $195.5 million
to $198.0 million, an increase from our previous guidance of $195.0
million to 198.0 million, including approximately $8.0 million of
professional services revenue and approximately $4.0 million of
overages.
- Non-GAAP income (loss) from operations is expected to be
in the range of ($2.5) million to ($1.0) million, an increase from
our previous guidance of ($3.0) million to ($1.0) million, which
excludes stock-based compensation of approximately $11.0 million,
the amortization of acquired intangible assets of approximately
$3.7 million, restructuring and other expenses of $2.3 million, and
gain on sale of assets of $6.0 million.
- Adjusted EBITDA is expected to be in the range of $14.5
million to $16.0 million, an increase from our previous guidance of
$14.0 million to $16.0 million, which excludes stock-based
compensation of approximately $11.0 million, depreciation and
amortization of $20.3 million (including amortization of acquired
intangible assets of approximately $3.7 million), restructuring and
other expenses of $2.3 million, gain on sale of assets of $6.0
million, and other (income) expense and the provision for income
taxes of approximately $1.3 million.
- Non-GAAP net income (loss) per diluted share is expected
to be ($0.08) to ($0.05), an increase from our previous guidance of
($0.10) to ($0.05), which excludes stock-based compensation of
approximately $11.0 million, the amortization of acquired
intangible assets of approximately $3.7 million, restructuring and
other expenses of $2.3 million, gain on sale of assets of $6.0
million, and assumes approximately 44.7 million weighted-average
shares outstanding.
Earnings Stream Information:
Brightcove earnings will be streamed on August 7, 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.
About Brightcove 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 third 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) June 30, 2024
December 31, 2023 Assets Current assets: Cash and
cash equivalents
$
24,170
$
18,615
Accounts receivable, net of allowance
28,207
33,451
Prepaid expenses and other current assets
19,780
18,333
Total current assets
72,157
70,399
Property and equipment, net
38,882
42,476
Operating lease right-of-use asset
17,896
16,233
Intangible assets, net
4,524
6,368
Goodwill
74,859
74,859
Other assets
4,719
5,772
Total assets
$
213,037
$
216,107
Liabilities and stockholders' equity Current liabilities:
Accounts payable
$
6,492
$
14,422
Accrued expenses
19,918
17,566
Operating lease liability
4,261
4,486
Deferred revenue
68,255
68,155
Total current liabilities
98,926
104,629
Operating lease liability, net of current portion
18,983
17,358
Other liabilities
192
207
Total liabilities
118,101
122,194
Stockholders' equity: Common stock
45
44
Additional paid-in capital
334,269
328,918
Treasury stock, at cost
(871
)
(871
)
Accumulated other comprehensive loss
(1,894
)
(1,236
)
Accumulated deficit
(236,613
)
(232,942
)
Total stockholders’ equity
94,936
93,913
Total liabilities and stockholders' equity
$
213,037
$
216,107
Brightcove Inc. Condensed Consolidated
Statements of Operations (in thousands, except per share
amounts) Three Months Ended June 30,
Six Months Ended June 30,
2024
2023
2024
2023
Revenue: Subscription and support revenue
$
47,397
$
49,013
$
95,366
$
96,115
Professional services and other revenue
1,850
1,975
4,362
3,936
Total revenue
49,247
50,988
99,728
100,051
Cost of revenue: (1) (2) Cost of subscription and support revenue
17,277
16,603
34,084
34,868
Cost of professional services and other revenue
2,130
1,898
4,945
3,900
Total cost of revenue
19,407
18,501
39,029
38,768
Gross profit
29,840
32,487
60,699
61,283
Operating expenses: (1) (2) Research and development
8,975
10,345
17,824
20,211
Sales and marketing
17,080
19,034
33,534
38,499
General and administrative
8,822
9,405
18,366
19,469
Merger-related
-
45
-
190
Gain on sale of assets
-
-
(6,000
)
-
Total operating expenses
34,877
38,829
63,724
78,369
Loss from operations
(5,037
)
(6,342
)
(3,025
)
(17,086
)
Other income (expense), net
49
422
11
(121
)
Loss before income taxes
(4,988
)
(5,920
)
(3,014
)
(17,207
)
Provision for income taxes
257
317
657
744
Net loss
$
(5,245
)
$
(6,237
)
$
(3,671
)
$
(17,951
)
Net loss per share—basic and diluted Basic
$
(0.12
)
$
(0.14
)
$
(0.08
)
$
(0.42
)
Diluted
(0.12
)
(0.14
)
(0.08
)
(0.42
)
Weighted-average shares—basic and diluted Basic
44,731
43,059
44,357
42,795
Diluted
44,731
43,059
44,357
42,795
(1) Stock-based compensation included in above line items:
Cost of subscription and support revenue
$
122
$
129
$
228
$
267
Cost of professional services and other revenue
71
92
111
192
Research and development
476
551
791
1,239
Sales and marketing
1,183
931
1,537
2,100
General and administrative
1,307
1,784
2,705
3,232
(2) Amortization of acquired intangible assets included in
the above line items: Cost of subscription and support revenue
$
520
$
601
$
1,040
$
1,202
Sales and marketing
402
417
804
833
Brightcove Inc. Condensed Consolidated Statements
of Cash Flows (in thousands) Three Months
Ended June 30, Six Months Ended June 30, Operating
activities
2024
2023
2024
2023
Net loss
$
(5,245
)
$
(6,237
)
$
(3,671
)
$
(17,951
)
Adjustments to reconcile net loss to net cash used in operating
activities: Depreciation and amortization
5,167
4,059
10,084
8,008
Stock-based compensation
3,159
3,487
5,372
7,030
Provision for reserves on accounts receivable
65
155
(16
)
222
Gain on sale of assets
-
-
(6,000
)
-
Changes in assets and liabilities: Accounts receivable
6,887
10,494
5,087
(4,219
)
Prepaid expenses and other current assets
(137
)
(896
)
(1,035
)
(1,882
)
Other assets
505
488
970
802
Accounts payable
(3,653
)
2,420
(7,531
)
3,376
Accrued expenses
711
(1,475
)
2,438
(5,474
)
Operating leases
(132
)
(93
)
(262
)
(174
)
Deferred revenue
(3,306
)
(1,592
)
612
8,440
Net cash provided by (used in) operating activities
4,021
10,810
6,048
(1,822
)
Investing activities Gain on sale of patents
-
-
6,000
-
Purchases of property and equipment, net of returns
(340
)
(376
)
(1,157
)
(1,328
)
Capitalization of internal-use software costs
(1,847
)
(3,303
)
(4,029
)
(7,233
)
Net cash provided by (used in) investing activities
(2,187
)
(3,679
)
814
(8,561
)
Financing activities Deferred acquisition payments
-
-
-
(1,700
)
Other financing activities
-
(31
)
(239
)
(256
)
Net cash used in financing activities
-
(31
)
(239
)
(1,956
)
Effect of exchange rate changes on cash and cash equivalents
(533
)
(485
)
(1,068
)
(462
)
Net increase (decrease) in cash and cash equivalents
1,301
6,615
5,555
(12,801
)
Cash and cash equivalents at beginning of period
22,869
12,478
18,615
31,894
Cash and cash equivalents at end of period
$
24,170
$
19,093
$
24,170
$
19,093
Brightcove Inc. Reconciliation of GAAP Gross
Profit, GAAP Loss (Income) From Operations, GAAP Net Loss and GAAP
Net Loss Per Share to Non-GAAP Gross Profit, Non-GAAP (Loss)
Income From Operations, Non-GAAP Net (Loss) Income and Non-GAAP Net
(Loss) Income Per Share (in thousands, except per share
amounts) Three Months Ended June 30,
Six Months Ended June 30,
2024
2023
2024
2023
GROSS PROFIT: GAAP gross profit
$
29,840
$
32,487
$
60,699
$
61,283
Stock-based compensation expense
193
221
339
459
Amortization of acquired intangible assets
520
601
1,040
1,202
Restructuring expense
21
98
193
98
Non-GAAP gross profit
$
30,574
$
33,407
$
62,271
$
63,042
GAAP gross profit as a percentage of revenue
61
%
64
%
61
%
61
%
Stock-based compensation expense
0.4
%
0.4
%
0.3
%
0.5
%
Amortization of acquired intangible assets
1.1
%
1.2
%
1.0
%
1.2
%
Restructuring expense
0.0
%
0.2
%
0.2
%
0.1
%
Non-GAAP gross profit as a percentage of revenue
62
%
66
%
62
%
63
%
(LOSS) INCOME FROM OPERATIONS: GAAP loss from operations
$
(5,037
)
$
(6,342
)
$
(3,025
)
$
(17,086
)
Stock-based compensation expense
3,159
3,487
5,372
7,030
Amortization of acquired intangible assets
922
1,018
1,844
2,035
Merger-related expense
-
45
-
190
Restructuring expense
479
2,329
2,316
2,756
Gain on sale of assets
-
-
(6,000
)
-
Non-GAAP (loss) income from operations
$
(477
)
$
537
$
507
$
(5,075
)
NET (LOSS) INCOME: GAAP net loss
$
(5,245
)
$
(6,237
)
$
(3,671
)
$
(17,951
)
Stock-based compensation expense
3,159
3,487
5,372
7,030
Amortization of acquired intangible assets
922
1,018
1,844
2,035
Merger-related expense
-
45
-
190
Restructuring expense
479
2,329
2,316
2,756
Gain on sale of assets
-
-
(6,000
)
-
Non-GAAP net (loss) income
$
(685
)
$
642
$
(139
)
$
(5,940
)
GAAP diluted net loss per share
$
(0.12
)
$
(0.14
)
$
(0.08
)
$
(0.42
)
Non-GAAP diluted net (loss) income per share
$
(0.02
)
$
0.01
$
(0.00
)
$
(0.14
)
Shares used in computing GAAP diluted net loss per share
44,731
43,059
44,357
42,795
Shares used in computing Non-GAAP diluted net income per share
44,731
43,149
44,357
42,795
Brightcove Inc. Calculation of Adjusted EBITDA
(in thousands) Three Months Ended June
30, Six Months Ended June 30,
2024
2023
2024
2023
Net loss
$
(5,245
)
$
(6,237
)
$
(3,671
)
$
(17,951
)
Stock-based compensation expense
3,159
3,487
5,372
7,030
Depreciation and amortization
5,167
4,059
10,084
8,008
Merger-related expense
-
45
-
190
Restructuring expense
479
2,329
2,316
2,756
Gain on sale of assets
-
-
(6,000
)
-
Other (income) expense, net
(49
)
(422
)
(11
)
121
Provision for income taxes
257
317
657
744
Adjusted EBITDA
$
3,768
$
3,578
$
8,747
$
898
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 June 30, Six Months Ended June 30,
2024
2024
Total revenue
$
49,247
$
99,728
Constant currency adjustment
459
679
Total revenue on a constant currency basis
$
49,706
$
100,407
Six Months Ended June 30, Six Months Ended
June 30,
2024
2024
Adjusted EBITDA
$
3,768
$
8,747
Constant currency adjustment
258
358
Adjusted EBITDA on a constant currency basis
$
4,026
$
9,105
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240807437279/en/
Investors: ICR for Brightcove Brian Denyeau, 646-277-1251
brian.denyeau@icrinc.com Media: Brightcove Sara Griggs,
929-888-4866 sgriggs@brightcove.com
Brightcove (NASDAQ:BCOV)
Historical Stock Chart
From Aug 2024 to Sep 2024
Brightcove (NASDAQ:BCOV)
Historical Stock Chart
From Sep 2023 to Sep 2024