Brightcove Announces Financial Results for First Quarter 2015 April 30, 2015 / Brightcove Press Release Company reports first quarter revenue of $32.9 million
Company reports adjusted EBITDA of $1.4 million
BOSTON, MA (April 30, 2015) Brightcove Inc. (Nasdaq: BCOV), a leading global provider of cloud services for video, today announced financial results for the quarter ended March 31, 2015.
Brightcove delivered first quarter results that exceeded our expectations from both a revenue and profitability perspective, said David Mendels, Chief Executive Officer of Brightcove. During the quarter we continued to make progress with our product and go-to-market strategy to drive business success for media companies looking to monetize video experiences across all types of mobile and living room devices, as well as digital marketers looking to tie video directly into their core marketing communications and demand generation strategies.
Mendels continued, We remain on track to achieve our full year revenue and profitability targets, while generating accelerating revenue growth throughout the year and returning to non-GAAP profitability in the fourth quarter. We still have additional progress to make on our business transformation and operational execution in the coming quarters, which we believe will drive improved financial performance and ultimately significant value for our shareholders.
First Quarter 2015 Financial Highlights:
Revenue for the first quarter of 2015 was $32.9 million, an increase of 6% compared to $31.1 million for the first quarter of 2014. Subscription and support revenue was $31.8 million, an increase of 8% compared with $29.4 million for the first quarter of 2014.
Gross profit for the first quarter of 2015 was $21.3 million, compared to $19.8 million for the first quarter of 2014, representing a gross margin of 65% for the first quarter of 2015. Non-GAAP gross profit for the first quarter of 2015 was $21.9 million, representing a year-over-year increase of 7% and a non-GAAP gross margin of 66%. Non-GAAP gross profit and non-GAAP gross margin exclude stock-based compensation expense and the amortization of acquired intangible assets.
Loss from operations was $2.5 million for the first quarter of 2015, compared to a loss of $4.7 million for the first quarter of 2014. Non-GAAP loss from operations, which excludes stock-based compensation expense, the amortization of acquired intangible assets and merger-related expenses, was $284,000 for the first quarter of 2015, an improvement compared to a non-GAAP loss of $322,000 during the first quarter of 2014.
Net loss was $2.8 million, or $0.09 per diluted share, for the first quarter of 2015. This compares to a net loss of $4.8 million, or $0.16 per diluted share, for the first quarter of 2014. Non-GAAP net loss, which excludes stock-based compensation expense, the amortization of acquired intangible assets and merger-related expenses, was $574,000 for the first quarter of 2015, or $0.02 per diluted share, compared to a non-GAAP net loss of $501,000 for the first quarter of 2014, or $0.02 per diluted share.
Adjusted EBITDA was $1.4 million for the first quarter of 2015, compared to $785,000 for the first quarter of 2014. Adjusted EBITDA excludes stock-based compensation expense, the amortization of acquired intangible assets, merger-related expenses, depreciation expense, other income/expense and the provision for income taxes.
Cash flow from operations was $46,000, compared to cash used in operations of $4.9 million for the first quarter of 2014.
Free cash flow was negative $692,000 after the company invested $738,000 in capital expenditures and capitalization of internal-use software during the first quarter of 2015. Free cash flow was negative $5.7 million for the first quarter of 2014.
Cash and cash equivalents were $21.9 million as of March 31, 2015 compared to $22.9 million at December 31, 2014.
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:
Ended the quarter with 5,578 customers, of which 1,864 were premium.
New media customers and media customers who expanded their relationship during the quarter included: Legendary Pictures, Public Broadcasting Service (PBS), NASCAR Digital Media, Quebecor Media, Television New Zealand, The News Lens, Tokyo Broadcasting System, TV Tokyo, Virgin Media and Voyager Innovations.
New digital marketing customers and digital marketing customers who expanded their relationship during the quarter included: Allstate, Dunkin Brands, Edmunds.com, EMC, Herbalife, Lenovo, Metropolitan Opera, and TJX Companies.
Introduced a new module for the Video Marketing Suite that enables marketers to leverage video viewing analytics within Oracle Eloqua to build personalized communications, score leads more effectively, and perform more detailed audience segmentation. Brightcove also integrated with Oracle App Cloud partner, SnapApp, to help marketers bring video experiences to its interactive content.
Average revenue per premium customer was $63,000 in the first quarter of 2015. This is an increase of 5% from $60,000 in the comparable period in 2014.
Recurring dollar retention rate was 91% in the first quarter of 2015, which is in line with our historical target in the low to mid 90% range.
Business Outlook
Based on information as of today, April 30, 2015, the Company is issuing the following financial guidance:
Second Quarter 2015:
Revenue is expected to be in the range of $33.0 million to $33.5 million.
Non-GAAP loss from operations is expected to be in the range of $600,000 to $1.1 million, which excludes stock-based compensation, the amortiz
