Brightcove Announces Financial Results for First Quarter 2013 April 30, 2013 / Brightcove Press Release BOSTON, MA (April 30, 2013) Brightcove Inc. (Nasdaq: BCOV), a leading global provider of cloud content services, today announced financial results for the quarter ended March 31, 2013.
"We are pleased that Brightcove delivered first quarter revenue and profitability that exceeded our guidance," said David Mendels, Chief Executive Officer of Brightcove. "The rapid shift of consumers watching digital content across a growing array of devices is forcing companies across a wide range of industries to think more strategically about their digital content delivery needs. We believe Brightcove is uniquely positioned to benefit from this long-term trend, and our focus is on continuing to drive the pace of innovation in the multi-billion dollar online video platform market."
First Quarter 2013 Financial Highlights:
Revenue: Total revenue for the first quarter of 2013 was $24.7 million, an increase of 24% compared to $19.9 million for the first quarter of 2012. Subscription and support revenue was $23.8 million, an increase of 26% compared with $18.8 million for the first quarter of 2012. Professional services and other revenue was $944,000, compared to $1.1 million for the first quarter of 2012.
Gross Profit: Gross profit for the first quarter of 2013 was $16.3 million, compared to $13.6 million for the first quarter of 2012, and gross margin was 66% for the first quarter of 2013. Non-GAAP gross profit for the first quarter of 2013 was $16.7 million, representing a year-over-year increase of 22% and a non-GAAP gross margin of 67%.
Operating Loss: Loss from operations was $3.9 million for the first quarter of 2013, compared to a loss of $3.2 million for the first quarter of 2012. Non-GAAP loss from operations, which excludes stock-based compensation expense, the amortization of acquired intangible assets and merger-related expenses, was $1.2 million for the first quarter of 2013, an improvement compared to a non-GAAP loss of $2.3 million during the first quarter of 2012.
Net Loss: Net loss attributable to common stockholders was $4.2 million, or $0.15 per basic and diluted share, for the first quarter of 2013. This compares to a net loss attributable to common stockholders of $4.3 million, or $0.27 per basic and diluted share, for the first quarter of 2012.
Non-GAAP net loss attributable to common stockholders, which excludes stock-based compensation expense, the amortization of acquired intangible assets, merger-related expenses, and the accretion of dividends on redeemable convertible preferred stock, was $1.6 million for the first quarter of 2013, or $0.06 per basic and diluted share, compared to a non-GAAP net loss attributable to common stockholders of $2.6 million for the first quarter of 2012, or $0.17 per basic and diluted share.
Balance Sheet and Cash Flow: As of March 31, 2013, Brightcove had $28.6 million of cash, cash equivalents and investments, compared to $33.0 million at December 31, 2012. Brightcove used $2.8 million in cash from operations and invested $126,000 in capital expenditures, leading to free cash flow of ($2.9) million for the first quarter of 2013. Free cash flow was ($6.5) million for the first quarter of 2012.
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 6,321 customers, which included a net increase of 65 premium customers. New customers added during the quarter included: Network Ten, the Wall Street Journal, Ford Direct, Wesleyan University, and Shutterfly.
Announced the general availability of a comprehensive monetization solution for HTML5 video, which includes support for VAST-compliant pre-, mid- and post roll advertising, a new HTML5 video player API that enables dynamic changes to ad policy settings, and HTML5 video plug-in support for leading ad servers from FreeWheel, Google, Videoplaza, and YuMe.
Introduced new native player software development kits (SDKs) for Apple iOS and Google Android devices that are integrated with industry leading advertising, analytics and digital rights management providers to provide for improved content performance and successful video monetization.
Announced the general availability of Zencoder Live Cloud Transcoding, an open API that enables live video encoding in the cloud and allows content providers to instantly scale live encoding resources without having to invest in on-premise hardware.
Rovio Entertainment, the Finland based entertainment media company known for its creation of the Angry Birds franchise, selected Brightcove Video Cloud to support the launch of its Angry Birds Toons animated series. Angry Birds fans will now be able to watch the on-demand series on their smart TVs, smartphones and tablets.
Announced enhanced support for TV Everywhere authentication through robust integrations with Adobe Pass and Akamai's Sola Vision Identity Services. This will enable cross-device authenticated video experiences for both web and native mobile applications, making it easier for broadcasters to provide greater access to premium video programming.
Business Outlook
Based on information as of today, April 30, 2013, the Company is issuing the following financial guidance:
Second Quarter 2013*: The Company expects revenue to be $25.7 million to $26.2 million, and non-GAAP loss from operations to be $1.4 million to $1.7 million. Assuming approximately 28.2 million shares outstanding, Brightcove expects its non-GAAP net loss per basic and diluted share attributable to common stockholders to be $0.06 to $0.07.
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