Brightcove Beats Revenue and Profit Expectations in Q2 2013

Posted by Joe Zaller
Aug 01 2013

Online video publishing provider Brightcove announced that its revenue for the second quarter of 2013 was $26.9m, an increase of 24% versus the same period a year ago.

This exceeded the consensus expectation of equity analysts who were looking for revenue of $26m.

Subscription and support revenue for the quarter was $25.6m (95% of total revenue), up 23% versus the same period a year ago. Professional services and other revenue was $1.3m, up 44% from $902,000 last year.

Revenue from media customers was $10.2m, or 38% of total revenue), up 18% versus last year.  Revenue from  non-media customers was $16.7m, or 62% of total revenue, up 29% versus the previous year.

The net loss for the quarter was $3.5m, or $0.12 per share, compared to a net loss of $4.3m, or $0.16 per share last year.  The non-GAAP net loss for the third quarter was $1.1m, or $0.04 per share, compared to a non-GAAP net loss of $2.6m, or $0.10 per share last year.

Profitability also exceeded the consensus expectation of equity analysts who were looking for -$0.07 on a non-GAAP basis

The operating loss for the third quarter was $3.3m, compared to an operating loss of $3.9m last year. The non-GAAP operating loss for the third quarter was $874,000, compared to a non-GAAP operating loss of $2.1m last year.

GAAP gross margins were 66% for the quarter, down from 70% last year. Non GAAP gross margins were 67%, down from 70% last year.

The company ended the quarter with cash, cash equivalents and investments of $30.5m, up from $28.6m at the end of the previous quarter. Brightcove generated $2.8m in cash from operations and invested $802,000 in capital expenditures, leading to free cash flow for the second quarter of $2m compared to negative $2.1m last year.

“Brightcove delivered strong second quarter results highlighted by revenue and profitability that exceeded the high-end of our guidance,” said CEO David Mendels. “We are seeing strong demand across a wide variety of industries as our customers embrace the use of digital content as a way to drive deeper levels of engagement with their customers. During the quarter we delivered exciting new technology to the market that enhances our market leadership position and strengthens our ability to penetrate the multi-billion dollar online video platform market.”

 

Guidance:

The company said it expects Q3 2013 expects revenue to be in the range of $26.8m to $27.3m, and non-GAAP loss from operations to be in the range of $900,000 to $1.2m. Assuming approximately 28.3 million shares outstanding, Brightcove expects its net loss per basic and diluted share attributable to common stockholders to be $0.14 to $0.15, which includes estimates for stock-based compensation expense of $1.6m, merger-related expenses of $375,000 and amortization of acquired intangible assets of $430,000. Brightcove expects its non-GAAP net loss per basic and diluted share attributable to common stockholders to be $0.05 to $0.06, which excludes the estimated expenses referenced in the previous sentence.

 

Full Year 2013:

Brightcove raised its 2013 financial guidance for revenue and non-GAAP loss from operations. Full year revenue is now expected to be in the range of $106.3m to $107.5m, and non-GAAP loss from operations is expected to be in the range of $3m to $4m. Assuming approximately 28.4 million shares outstanding, Brightcove expects its net loss per basic and diluted share attributable to common stockholders to be $0.48 to $0.53, which includes estimates for stock-based compensation expense of $6.6m, merger-related expenses of $1.6m and amortization of acquired intangible assets of $1.7m. Brightcove expects its non-GAAP net loss per basic and diluted share attributable to common stockholders to be $0.13 to $0.18, which excludes the estimated expenses referenced in the previous sentence.

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Related Content:

Press Release: Brightcove Announces Financial Results for Second Quarter 2013

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