BOSTON, MA (November 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:
Revenue for the third quarter of 2024 was $49.9 million, a decrease of 2% compared to $51.0 million for the third quarter of 2023. Subscription and support revenue was $48.0 million, a decrease of 1% compared to $48.6 million for the third quarter of 2023.
Gross profit for the third quarter of 2024 was $31.6 million, representing a gross margin of 63% compared to gross profit of $31.7 million, representing a gross margin of 62% for the third quarter of 2023. Non-GAAP gross profit for the third quarter of 2024 was $32.3 million, representing a non-GAAP gross margin of 65%, compared to non-GAAP gross profit of $32.5 million, representing a non-GAAP gross margin of 64% for the third 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 ($2.8) million for the third quarter of 2024, compared to ($2.3) million for the third quarter of 2023. Non-GAAP operating income, which excludes stock-based compensation expense, the amortization of acquired intangible assets, merger-related expense, restructuring expense, and gain on sale of assets, was $860,000 for the third quarter of 2024, compared to non-GAAP operating income of $2.3 million during the third quarter of 2023.
Net income (loss) was ($3.0) million, or ($0.07) per diluted share, for the third quarter of 2024. This compares to ($2.4) million, or ($0.06) per diluted share, for the third quarter of 2023. Non-GAAP net income, which excludes stock-based compensation expense, the amortization of acquired intangible assets, merger-related expense, restructuring expense, and gain on sale of assets, was $707,000 for the third quarter of 2024, or $0.02 per diluted share, compared to non-GAAP net income of $2.1 million for the third quarter of 2023, or $0.05 per diluted share.
Adjusted EBITDA was $5.1 million for the third quarter of 2024, representing an adjusted EBITDA margin of 10% compared to adjusted EBITDA of $5.5 million for the third 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 $3.4 million for the third quarter of 2024, compared to cash flow provided by operations of $2.1 million for the third quarter of 2023.
Free cash flow was $1.6 million after the Company invested $1.8 million in capital expenditures and capitalization of internal-use software during the third quarter of 2024. Free cash flow was negative $2.2 million for the third quarter of 2023.
Cash and cash equivalents were $27.0 million as of September 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 Third Quarter and Recent Highlights/Updates:
Launched the Brightcove AI Suite, featuring five new solutions aimed at driving customer growth and efficiency, including AI Content Multiplier, AI Universal Translator, AI Metadata Optimizer, AI Engagement Maximizer, and AI Cost-to-Quality Optimizer. The Suite, developed in partnership with industry leaders including Anthropic, AWS, and Google, is being piloted with key customers and addresses four strategic priorities: content creation, management, engagement/monetization, and quality/efficiency optimization. Additionally, in Q4, we announced new pilots and capabilities to be added to the AI suite in the current and coming quarters.
Signed new, renewed or expanded the relationship with a diverse set of notable customers in the third quarter. This includes media companies like Antenna Group, Canela Media, Gaia, KDDI, Now That's TV, and Tap Digital Media Ventures, and enterprise customers like Abbott Labs, Acquia, Apollo, Chick-fil-a, Deloitte, HP, Palo AltoNetworks, Marriott, Rakuten, RBC, S&P Global, ServiceNow, United Healthcare and Wendy's.
Named the winner of the Best Overall Marketing Company award in the 7th annual MarTech Breakthrough Awards program, recognizing Brightcove's innovative Marketing Studio solution that empowers enterprise clients to enhance customer engagement and accelerate sales through simplified video creation, management, and analytics tools.
Released Marketing Insights, which leverages our powerful Insights platform to enable our enterprise marketing customers to deeply track and derive actionable intelligence from their consumer's engagement with their video content. Marketing Insights is designe
