Company reports third quarter revenue of $38.4 million, up 13% year-over-year
BOSTON, MA (November 2, 2016) Brightcove Inc. (NASDAQ: BCOV), a leading global provider of cloud services for video, today announced financial results for the quarter ended September 30, 2016.
Brightcove delivered solid third quarter results that met or exceeded our expectations from both a revenue and profitability perspective, said David Mendels, Chief Executive Officer of Brightcove. We continue to make good progress against our go-to-market strategy in both our digital marketing and media segments, which is driving our improved business performance.
Mendels continued, From a product perspective, we are working hard to deliver even greater value to both our digital marketing and media customers by making significant enhancements and additions to our product portfolio. We are particularly excited about the release of our new dynamic delivery platform over the coming quarters as well as the introduction of our new Brightcove Social product, which is being released in the next two weeks. While we still need to close out the year strong, we believe that our innovation across our product portfolio will continue to separate us from the competition and will drive further adoption of our products."
Mendels concluded, Finally, I'm pleased to announce an organizational change within Brightcove. We have named Andy Feinberg as Brightcove s President and Chief Operating Officer. Andy will now be responsible for both of our business units and all of our customer-facing operations, globally. For the past year Andy has served as our President of International Operations and, together with his teams, has been a driving force behind our strong international growth over this past year. We believe his talents can be leveraged even further worldwide.
Third Quarter 2016 Financial Highlights:
Revenue for the third quarter of 2016 was $38.4 million, an increase of 13% compared to $33.8 million for the third quarter of 2015. Subscription and support revenue was $36.2 million, an increase of 9% compared with $33.2 million for the third quarter of 2015.
Gross profit for the third quarter of 2016 was $24.6 million, compared to $22.3 million for the third quarter of 2015, representing a gross margin of 64% for the third quarter of 2016. Non-GAAP gross profit for the third quarter of 2016 was $25.3 million, representing a year-over-year increase of 10% 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 $1.6 million for the third quarter of 2016, compared to a loss of $1.0 million for the third quarter of 2015. Non-GAAP income from operations, which excludes stock-based compensation expense, the amortization of acquired intangible assets and merger-related expenses, was $913,000 for the third quarter of 2016, compared to non-GAAP income of $1.3 million during the third quarter of 2015.
Net loss was $1.6 million, or $0.05 per diluted share, for the third quarter of 2016. This compares to a net loss of $1.3 million, or $0.04 per diluted share, for the third quarter of 2015. Non-GAAP net income, which excludes stock-based compensation expense, the amortization of acquired intangible assets and merger-related expenses, was $847,000 for the third quarter of 2016, or $0.02 per diluted share, compared to a non-GAAP net income of $1.1 million for the third quarter of 2015, or $0.03 per diluted share.
Adjusted EBITDA was $2.0 million for the third quarter of 2016, compared to $2.7 million for the third quarter of 2015. Adjusted EBITDA excludes stock-based compensation expense, the amortization of acquired intangible assets, merger-related expenses, depreciation expense, other income/expense and the provision for income taxes.
Cash flow from operations was $2.6 million for the third quarter of 2016, compared to cash flow from operations of $3.8 million for the third quarter of 2015.
Free cash flow was $1.2 million after the company invested $1.4 million in capital expenditures and capitalization of internal-use software during the third quarter of 2016. Free cash flow was $3.1 million for the third quarter of 2015.
Cash and cash equivalents were $35.2 million as of September 30, 2016 compared to $30.2 million at June 30, 2016.
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 Third Quarter and Recent Highlights:
Average revenue per premium customer was $70,000 in the third quarter of 2016. This is an increase of 4% from $67,000 in the comparable period in 2015.
Recurring dollar retention rate was 97% in the third quarter of 2016, which was above our historical target in the low to mid 90% range.
Ended the quarter with 4,647 customers, of which 1,981 were premium.
New media customers and media customers who expanded their relationship during the quarter included: Aernow, Expansion SA, Baadl Technologies, Spuul, Book Walker, Next Interactive Media, UKTV, Fairfax Media, Genius, Sony, Time Inc., CRTV, Legacy Research Group, and RLJ Entertainment, among others.
New digital marketing customers and digital marketing customers who expanded their relationship during the quarter included: Aviva, Eaton Corp., Enterprise Holdings, Gaiam, John Wiley & Sons, Kaplan Test Prep & Admissions, Vantiv, ServiceNow, Smithfield Foods, and The Church of Jesus Christ of Latter-Day Saints, among others.
Announced the beta availability of the Brightcove Video Connect for Salesforce integration. This latest integration will enable Salesforce users to increase engagement throughout the buying cycl
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Company reports third quarter revenue of $38.4 million, up 13% year-over-year
