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Brightcove Announces Financial Results for Fourth Quarter and Fiscal Year 2020
BOSTON--(BUSINESS WIRE)--Brightcove Inc. (NASDAQ: BCOV) the global leader in video for business, today announced financial results for the fourth quarter and fiscal year ended December 31, 2020.
Brightcove's fourth quarter performance was a great finish to an excellent 2020, highlighted by our fastest organic revenue growth quarter in several years and the strongest free cash flow quarter in our history, said Jeff Ray, Brightcove's Chief Executive Officer.
Ray added, 2020 was video's evolutionary moment and its value has never been more apparent. Brightcove is helping drive the proliferation of video, enabling enterprises to better engage with their customers and employees, and empowering content creators to monetize their content globally. Brightcove's clear market leadership puts Brightcove in a great position to deliver strong, sustainable, and profitable growth for years to come.
Fourth Quarter 2020 Financial Highlights:
Revenue for the fourth quarter of 2020 was $53.7 million, an increase of 13% compared to $47.6 million for the fourth quarter of 2019. Subscription and support revenue was $50.7 million, an increase of 14% compared to $44.6 million for the fourth quarter of 2019.
Gross profit for the fourth quarter of 2020 was $34.2 million, representing a gross margin of 64% compared to a gross profit of $28.8 million for the fourth quarter of 2019. Non-GAAP gross profit for the fourth quarter of 2020 was $34.8 million, representing a non-GAAP gross margin of 65%, compared to a non-GAAP gross profit of $29.7 million for the fourth quarter of 2019. Non-GAAP gross profit and non-GAAP gross margin exclude stock-based compensation expense and the amortization of acquired intangible assets.
Income from operations was $1.6 million for the fourth quarter of 2020, compared to a loss of $6.9 million for the fourth quarter of 2019. Non-GAAP operating income, which excludes stock-based compensation expense, restructuring, the amortization of acquired intangible assets and merger-related expense, was $5.4 million for the fourth quarter of 2020, compared to non-GAAP operating income of $2.2 million during the fourth quarter of 2019.
Net income was $2.0 million, or $0.05 per basic and diluted share, for the fourth quarter of 2020. This compares to a net loss of $6.7 million, or a loss of $0.17 per diluted share, for the fourth quarter of 2019. Non-GAAP net income, which excludes stock-based compensation expense, restructuring, the amortization of acquired intangible assets and merger-related expense, was $5.8 million for the fourth quarter of 2020, or $0.14 per diluted share, compared to non-GAAP net income of $2.4 million for the fourth quarter of 2019, or $0.06 per diluted share.
Adjusted EBITDA was $6.8 million for the fourth quarter of 2020, compared to adjusted EBITDA of $3.5 million for the fourth quarter of 2019. Adjusted EBITDA excludes stock-based compensation expense, merger-related expense, restructuring, the amortization of acquired intangible assets, depreciation expense, other income/expense and the provision for income taxes.
Cash flow provided by operations was $12.4 million for the fourth quarter for 2020, compared to $2.1 million for the fourth quarter of 2019.
Free cash flow was $10.9 million after the company invested $1.5 million in capital expenditures and capitalization of internal-use software during the fourth quarter of 2020. Free cash flow was negative $336,000 for the fourth quarter of 2019.
Cash and cash equivalents were $37.5 million as of December 31, 2020 compared to $30.3 million as of September 30, 2020.
Full Year 2020 Financial Highlights:
Revenue for the full year 2020 was $197.4 million, an increase of 7% compared to $184.5 million for 2019. Subscription and support revenue for 2020 was $187.3 million, an increase of 8% compared to $173.8 million for 2019.
Gross profit was $121.3 million for 2020, representing a gross margin of 61%, compared to $109.0 million for 2019. Non-GAAP gross profit was $123.7 million for 2020, representing a non-GAAP gross margin of 63%, compared to $111.9 million for 2019. 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 $5.3 million for 2020, compared to a loss from operations of $21.1 million for 2019. Non-GAAP income from operations, which excludes stock-based compensation expense, the amortization of acquired intangible assets, merger-related expense and executive severance and restructuring expense, was $15.2 million for 2020, compared to non-GAAP income from operations of $3.6 million for 2019.
Net loss was $5.8 million, or $0.15 per diluted share, for 2020. This compares to a net loss of $21.9 million, or $0.58 per diluted share, for 2019. Non-GAAP net income, which excludes stock-based compensation expense, the amortization of acquired intangible assets, merger-related expense and executive severance and restructuring expense, was $14.7 million for 2020, or $0.36 per diluted share, compared to non-GAAP net income of $2.8 million for 2019, or $0.07 per diluted share.
Adjusted EBITDA was $20.5 million for 2020, compared to an adjusted EBITDA of $8.8 million for 2019. Adjusted EBITDA excludes stock-based compensation expense, merger-related expense, executive severance and restructuring expense, the amortization of acquired intangible assets, depreciation expense, other income/expense and the provision for income taxes.
Cash flow provided by operations was $21.3 million for 2020, compared to cash flow from operations of $2.7 million for 2019. - Free cash flow was $12.6 million after the company invested $8.7 million in capital expenditures and capital
