Company reports fiscal year 2016 revenue growth of 12%BOSTON, MA (February 16, 2017) 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, 2016.
Brightcove reported solid fourth quarter financial results that capped a very strong year for the company, said David Mendels, Chief Executive Officer of Brightcove. The momentum we are seeing across our business drove a number of important milestones for our company in 2016, including the return to double-digit revenue growth, 15% bookings growth for the year, the signing of multiple seven-figure, multi-year media wins and strong performance in our digital marketing and enterprise group, marked by an impressive fourth quarter performance. In addition, we delivered on a number of exciting product innovations like Dynamic Delivery and Brightcove Social.
Mendels added, The investments we made throughout the year significantly strengthened our competitive position in the market and we enter 2017 more confident in our ability to continue to drive improved long-term revenue growth and profitability. We are focused on executing even better in the year ahead in order to generate meaningful shareholder value.
Fourth Quarter 2016 Financial Highlights:
Revenue for the fourth quarter of 2016 was $38.6 million, an increase of 10% compared to $35.1 million for the fourth quarter of 2015. Subscription and support revenue was $36.1 million, an increase of 6% compared with $34.1 million for the fourth quarter of 2015.
Gross profit for the fourth quarter of 2016 was $23.3 million, representing a gross margin of 60%, compared to a gross profit of $23.3 million for the fourth quarter of 2015. Non-GAAP gross profit for the fourth quarter of 2016 was $24.8 million, representing a non-GAAP gross margin of 64%, compared to a non-GAAP gross profit of $24.0 million for the fourth quarter of 2015. Non-GAAP gross profit and non-GAAP gross margin exclude stock-based compensation expense, the amortization of acquired intangible assets and costs to exit a facility.
Loss from operations was $3.7 million for the fourth quarter of 2016, compared to a loss from operations of $214,000 for the fourth quarter of 2015. Non-GAAP loss from operations, which excludes stock-based compensation expense, the amortization of acquired intangible assets, merger-related expenses and costs to exit a facility, was $309,000 for the fourth quarter of 2016, compared to non-GAAP income from operations of $2.3 million during the fourth quarter of 2015.
Net loss was $4.4 million, or $0.13 per diluted share, for the fourth quarter of 2016. This compares to a net income of $172,000, or $0.01 per diluted share, for the fourth quarter of 2015. Non-GAAP net loss, which excludes stock-based compensation expense, the amortization of acquired intangible assets, merger-related expenses, gain from settlement of escrow claim and costs to exit a facility, was $988,000 for the fourth quarter of 2016, or $0.03 per diluted share, compared to a non-GAAP net income of $1.8 million for the fourth quarter of 2015, or $0.05 per diluted share.
Adjusted EBITDA was $803,000 for the fourth quarter of 2016, compared to $3.3 million for the fourth quarter of 2015. Adjusted EBITDA excludes stock-based compensation expense, the amortization of acquired intangible assets, merger-related expenses, depreciation expense, other income/expense, the provision for income taxes and costs to exit a facility.
Cash flow from operations was $3.4 million, compared to $4.8 million for the fourth quarter of 2015.
Free cash flow was $2.4 million after the company invested $1.0 million in capital expenditures and capitalization of internal-use software during the fourth quarter of 2016. Free cash flow was $5.5 million for the fourth quarter of 2015.
Cash and cash equivalents were $36.8 million as of December 31, 2016 compared to $35.2 million at September 30, 2016.
Full Year 2016 Financial Highlights:
Revenue for the full year 2016 was $150.3 million, an increase of 12% compared to $134.7 million for 2015. Subscription and support revenue for 2016 was $142.0 million, an increase of 8% compared with $131.0 million for 2015.
Gross Profit was $94.4 million for 2016, compared to $88.2 million for 2015, representing a gross margin of 63% for 2016. Non-GAAP gross profit was $97.8 million for 2016, representing a year-over-year increase of 8% and a non-GAAP gross margin of 65%. Non-GAAP gross profit and non-GAAP gross margin exclude stock-based compensation expense, the amortization of acquired intangible assets and costs to exit a facility.
Loss from operations was $9.0 million for 2016, compared to a loss from operations of $6.9 million for 2015. Non-GAAP income from operations, which excludes stock-based compensation expense, the amortization of acquired intangible assets, merger-related expenses and costs to exit a facility, was $1.0 million for 2016, compared to a non-GAAP income from operations of $2.4 million for 2015.
Net loss was $10.0 million, or $0.30 per diluted share, for 2016. This compares to a net loss of $7.6 million, or $0.23 per diluted share, for 2015. Non-GAAP net income, which excludes stock-based compensation expense, the amortization of acquired intangible assets, merger-related expenses, gain from settlement of escrow claim and costs to exit a facility, was $8,000 for 2016, or $0.00 per diluted share, compared to non-GAAP net income of $876,000 for 2015, or $0.03 per diluted share.
Adjusted EBITDA was $5.7 million for 2016, compared to $8.0 million for 2015. Adjusted EBITDA excludes stock-based compensation expense, the amortization of acquired intangible assets, merger-related expenses, depreciation expense, other income/expense, the provision for income taxes and costs to exit
