Brightcove Announces Financial Results for Four Quarter and Fiscal Year 04

Brightcove Announces Financial Results for Fourth Quarter and Fiscal Year 2014 February 5, 2015 / Brightcove Press Release

Full year 2014 total revenue of $125.0 million increased 14% year-over-year

BOSTON, MA. (February 5, 2015) Brightcove Inc. (NASDAQ: BCOV), a leading global provider of cloud services for video, today announced financial results for the fourth quarter and fiscal year ended December 31, 2014.

"We are pleased to report strong fourth quarter results that exceeded our expectations from both a revenue and profitability perspective," said David Mendels, Chief Executive Officer of Brightcove. "Our performance reflects the significant progress weve made in our go-to-market approach of focusing on the media and digital marketing segments to enable those customers to leverage their digital assets to drive increased revenue growth using our technology. We are building traction across all areas of the business, and we are confident in our strategy and believe we can drive improved growth in our business as we move through 2015."

Mendels added, "From a revenue growth and profitability perspective, we anticipate accelerating revenue growth throughout the year, while generating positive non-GAAP operating income during the fourth quarter. We believe the combination of improving revenue growth and sustainable profitability will drive significant value for our shareholders."

Fourth Quarter 2014 Financial Highlights:

Revenue for the fourth quarter of 2014 was $31.4 million, an increase of 5% compared to $29.7 million for the fourth quarter of 2013. Subscription and support revenue was $30.6 million, an increase of 12% compared to $27.2 million for the fourth quarter of 2013.

Gross Profit for the fourth quarter of 2014 was $20.2 million, compared to $19.8 million for the fourth quarter of 2013, representing a gross margin for the fourth quarter of 2014 of 64%. Non-GAAP gross profit for the fourth quarter of 2014 was $20.8 million, representing a year-over-year increase of 3% 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 $3.4 million for the fourth quarter of 2014, compared to a loss of $1.0 million for the fourth quarter of 2013. Non-GAAP loss from operations was $980,000 for the fourth quarter, which excludes stock-based compensation expense, the amortization of acquired intangible assets and merger-related expenses, compared to non-GAAP income from operations of $1.7 million during the fourth quarter of 2013.

Net loss was $3.9 million, or $0.12 per diluted share, for the fourth quarter of 2014. This compares to a net loss of $1.2 million, or $0.04 per diluted share, for the fourth quarter of 2013.

Non-GAAP net loss, which excludes stock-based compensation expense, the amortization of acquired intangible assets and merger-related expenses, was $1.5 million for the fourth quarter of 2014, or $0.05 per diluted share, compared to non-GAAP net income of $1.5 million for the fourth quarter of 2013, or $0.05 per diluted share.

Cash flow from operations was $3.1 million, compared to $2.5 million for the fourth quarter of 2013.

Free cash flow was $2.0 million, after the company invested $1.1 million in capital expenditures and capitalization of internal-use software costs during the fourth quarter of 2014, compared to free cash flow of $1.0 million for the fourth quarter of 2013.

Cash, cash equivalents and marketable securities were $22.9 million at December 31, 2014, compared to $21.7 million at September 30, 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."

Full Year 2014 Financial Highlights:

Revenue was $125.0 million for 2014, an increase of 14% compared to $109.9 million for 2013. Subscription and support revenue was $120.3 million, an increase of 17% compared to $103.1 million for 2013.

Gross Profit was $81.3 million for 2014, compared to $73.1 million for 2013, representing a gross margin of 65% for 2014. Non-GAAP gross profit was $83.6 million for 2014, representing a year-over-year increase of 12% and a non-GAAP gross margin of 67%. 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 $15.2 million for 2014, compared to a loss of $9.5 million for 2013. Non-GAAP loss from operations, which excludes stock-based compensation expense, the amortization of acquired intangible assets and merger-related expenses, was $2.5 million for 2014, compared to non-GAAP income from operations of $695,000 for 2013.

Net loss was $16.9 million, or $0.53 per diluted share, for 2014. This compares to a net loss of $10.3 million, or $0.36 per diluted share, for 2013.

Non GAAP net loss, which excludes stock-based compensation expense, the amortization of acquired intangible assets and merger-related expenses, was $4.2 million for 2014, or $0.13 per diluted share, compared to non-GAAP net loss of $73,000 for 2013, or $0.00 per diluted share.

Cash flow from operations was $1.5 million for 2014, compared to cash flow from operations of $7.3 million for 2013.

Free cash flow was ($3.1) million, after the company invested $4.6 million in capital expenditures and capitalization of internal-use software costs during 2014, compared to free cash flow of $3.4 million in 2013.

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."

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