) broke even in the fourth quarter of 2013, better than the Zacks
Consensus Estimate of a loss of 3 cents per share.
AKAMAI TECH (AKAM): Free Stock Analysis
BRIGHTCOVE (BCOV): Free Stock Analysis Report
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Revenues surged 22.2% on a year over year basis to $29.7 million
in the reported quarter, beating the Zacks Consensus Estimate of
$29.0 million. Revenues were higher than the management's guided
range of $28.0 million to $28.5 million.
This year over year rise in revenues was mainly on account of
higher-than-expected rise in Subscription & Support revenues
and Professional Services and other revenues which increased
17.4% & and 121.2%, respectively.
Premium Offerings contributed $27.2 million to total revenue,
representing a 24.0% hike on a year over year basis. Volume
offering, on the other hand, generated $2.6 million in revenues,
which marked a 3.0% rise on a year-over-year basis.
Non-media customers represented 58% of the total revenue and grew
17% on a year-over-year basis, while media customers represented
42% of revenue and rose 30% on a year-over-year basis.
During the quarter, Brightcove's product was chosen by new
customers such as, Boston Globe Media Partners, Dick Clark
Productions and TVN SA, the largest commercial broadcaster in
From a geographic perspective, 57.0% of revenues came from
America (up 12% on a y/y basis) while Europe chipped in with
28.0% of revenue (up 44% on a y/y basis). Japan and Asia-Pacific,
on the other hand, generated 15% of revenue (up 34% on a y/y
Gross margin declined on a year-over-year basis from 69.8% to
67.0% in the reported quarter.
Operating expenses as percentage of revenues were 69.9%, much
lower than 87.7% reported in the year-ago quarter. Research &
development, sales & marketing and general &
administrative expenses as percentage of revenues declined 320
bps, 920 bps and 482 bps, respectively.
Income from operations (including stock-based compensation) was
$0.035 million, better than loss of $3.5 million reported in the
year-ago quarter. Net loss (including stock based compensation)
was $0.08 million or 0 cents per share.
Balance Sheet & Cash Flow
Exiting the fourth quarter, Brightcove had cash, cash equivalents
and investments of $36.1 million, up from $34.1 million reported
in the prior quarter. Brightcove's cash flow from operations was
$2.5 million in the fourth quarter compared with $4.8 million in
the prior quarter. Free cash flow was $1.0 million in the
reported quarter versus $2.8 million in the prior quarter.
For the first quarter of fiscal 2014, Brightcove expects revenues
in the range of $28.8 million to $29.5 million. Non-GAAP
operating income is expected to be $2.5 million to $2.9 million.
Non-GAAP loss is expected in the range of 9 cents to 10 cents per
For fiscal 2014, Brightcove raised its revenue outlook.
Currently, revenues are expected to be in the range of $126.0
million to $130.0 million. Non-GAAP operating loss is expected to
be in the range of $9.0 million to $12.0 million. Net loss is
expected in the range of 31 cents to 40 cents per share.
We believe that the continuously growing portfolio of video-based
technologies will help the company to register robust growth and
enhance its profitability going forward. Moreover, strategic
acquisitions are also believed to be a tailwind in the long term.
However, macro economic slumps and fierce competition from the
Limelight Networks Inc
) appear to be the major headwinds in the near term.