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Brightcove Announces Financial Results for Second Quarter Fiscal Year 2022
BOSTON - Aug. 2, 2022 - Brightcove Inc. (Nasdaq: BCOV), the trusted leader in streaming technology, today announced financial results for the second quarter ended June 30, 2022.
Brightcove's second quarter revenue and profitability once again exceeded the high end of our guidance range. In my first 100 days with the company, we have developed a comprehensive plan that will leverage the strength of our online streaming platform with new innovation and solutions that will enable any company, brand or creator to own their digital future, said Marc DeBevoise, Brightcove's Chief Executive Officer.
DeBevoise added, Brightcove's vision is to be the most trusted streaming technology company in the world. I am confident that we have the right team and strategy in place to deliver on this vision and accelerate Brightcove's revenue and profitability in the years ahead.
Second Quarter 2022 Financial Highlights:
Revenue for the second quarter of 2022 was $54.4 million, an increase of 6% compared to $51.5 million for the second quarter of 2021. Subscription and support revenue was $53.0 million, an increase of 9% compared to $48.6 million for the second quarter of 2021.
Gross profit for the second quarter of 2022 was $35.7 million, representing a gross margin of 66% compared to a gross profit of $34.2 million, representing a gross margin of 67% for the second quarter of 2021. Non-GAAP gross profit for the second quarter of 2022 was $36.4 million, representing a non-GAAP gross margin of 67%, compared to a non-GAAP gross profit of $34.9 million, representing a non-GAAP gross margin of 68% for the second quarter of 2021. 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 $703 thousand for the second quarter of 2022, compared to income from operations of $590 thousand for the second quarter of 2021. Non-GAAP operating income, which excludes stock-based compensation expense, the amortization of acquired intangible assets, merger-related expense and other (benefit) expense, was $5.3 million for the second quarter of 2022, compared to non-GAAP operating income of $4.2 million during the second quarter of 2021.
Net loss was $301 thousand, or a loss of $0.01 per diluted share, for the second quarter of 2022. This compares to a net income of $870 thousand, or $0.02 per diluted share, for the second quarter of 2021. Non-GAAP net income, which excludes stock-based compensation expense, the amortization of acquired intangible assets, merger-related expense and other (benefit) expense, was $4.3 million for the second quarter of 2022, or $0.10 per diluted share, compared to non-GAAP net income of $4.5 million for the second quarter of 2021, or $0.11 per diluted share.
Adjusted EBITDA was $6.7 million for the second quarter of 2022, compared to adjusted EBITDA of $5.6 million for the second quarter of 2021. Adjusted EBITDA excludes stock-based compensation expense, merger-related expense, other (benefit) expense, the amortization of acquired intangible assets, depreciation expense, other income/expense and the provision for income taxes.
Cash flow provided by operations was $9.9 million for the second quarter for 2022, compared to cash flow provided by operations of $8.0 million for the second quarter of 2021.
Free cash flow was $2.4 million after the company invested $7.5 million in capital expenditures and capitalization of internal-use software during the second quarter of 2022. Free cash flow was $5.7 for the second quarter of 2021.
Cash and cash equivalents were $27.8 million as of June 30, 2022 compared to $45.7 million on December 31, 2021.
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 Second Quarter and Recent Highlights:
Average annual subscription revenue per premium customer was $98,000 in the second quarter of 2022, excluding starter customers who had average annualized revenue of $3,900 per customer. The average annual subscription revenue per premium customer compares to $92,200 in the second quarter of 2021.
Recurring dollar retention rate was 84% in the second quarter of 2022, versus our historical target of the low to mid-90 percent range.
Net revenue retention in the quarter was 95%, which compares to 98% in the first quarter of 2022 and 98% in the second quarter of 2021.
Ended the second quarter of 2022 with 2,937 customers, of which 2,301 were premium.
New customers and customers who expanded their relationship during the second quarter of 2022 include: The Academy of Motion Picture Arts and Sciences, TVB USA, Gaia, GoalCast and L3Harris Technologies, among others.
Appointed David Beck as its first Chief Strategy and Corporate Development Officer. Beck brings two decades of experience in strategy, operations, and business development at elite digital brands, most recently having served as the Executive Vice President, Head of Content Strategy and Business Operations at AMC. At AMC, Beck led the strategy to accelerate AMC's streaming business model transformation, including its integrated Linear, SVOD (AMC+), and AVOD/FAST services and partnerships for B2B and DTC distribution. He also drove the modernization of its core operations across AMC, BBC America, Sundance TV, IFC, and WE TV.
Appointed Dan Freund as its Chief Revenue Officer. Freund brings more than 25 years of global leadership experience in leading commercial sales and fueling revenue growth for enterprise software companies. Most recently, Freund served as th
