) reported a loss of 11 cents in the third quarter of 2012, in
line with the Zacks Consensus Estimate. However, this was much
better than a loss of 81 cents reported in the year-ago
Revenue jumped 32.4% from the year-ago quarter to $22.1
million, meeting the consensus mark. The year-over-year surprise
was primarily driven by a 35.2% surge in Subscription and support
revenue, which fully offset a 26.0% plunge in Professional
services and other revenue.
Gross profit (including stock-based compensation) soared 33.6%
from the year-ago quarter to $15.2 million, while gross margin
increased 250 basis points boosted by a favorable revenue
Operating expenses soared 28.0% year over year to $18.8
million due to 19.8% year-over-year increase in research &
development expenses, 26.5% year-on-year rise in sales &
marketing expenses and an 18.2% jump in general &
Loss from operations (including stock-based compensation) was
$2.7 million, narrower than $3.3 million reported in the year-ago
quarter on higher revenue base.
Net loss (including stock based compensation) of $3.0 million
was narrower than the loss of $4.0 million in the prior-year
Exiting the third quarter, Brightcove had cash, cash
equivalents and investments of $30.8 million, down from $58.6
million reported in the second quarter.
For the fourth quarter, the company expects revenues in the
range of $22.8 million to $23.3 million. Non-GAAP operating loss
is expected to be 1.9 million to $2.2 million. Non-GAAP net loss
is expected in the range of 7 cents to 8 cents.
For fiscal 2012, management expects revenue to be in the range
of $86.5 million to $87.0 million. Non-GAAP operating loss is
expected to be 7.5 million to $7.8 million. Non-GAAP net loss per
share is expected in the range of 35 cents to 36 cents per
We believe that strong demand for cloud-based solutions,
security and mobile products, and online videos along with
strategic acquisitions are the positives for the stock over the
However, intense competition from
Akamai Technologies Inc.
Limelight Networks, Inc.
) coupled with sluggish macro-economic environment are the
We maintain our Neutral recommendation on a long-term basis
(6-12 months). Currently, Brightcove has a Zacks #3 Rank, which
implies a Hold rating on a short-term basis.
AKAMAI TECH (AKAM): Free Stock Analysis
BRIGHTCOVE (BCOV): Free Stock Analysis Report
LIMELIGHT NETWK (LLNW): Free Stock Analysis
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