Brightcove Inc. (
reported a loss of 13 cents in the fourth quarter of 2012, wider
than the Zacks Consensus Estimate of a loss of 7 cents. However,
loss per share was narrower than a loss of 75 cents reported in
the year-ago quarter.
Revenues jumped 31.3% from the year-ago quarter to $24.3
million, slightly better than the consensus mark. The
year-over-year surprise was primarily driven by a 34.2% surge in
Subscription and Support revenues, which fully offset an 8.4%
plunge in Professional services and Other revenues.
Brighcove's revenues from premium offerings jumped 29% year
over year to $21.8 million. Premium refers to Brighcove's
traditional video cloud customers, the enterprise edition of app
cloud and Zencoder customers on annual contracts. Revenues from
volume offerings surged 53.0% year over year to $2.5 million.
Brightcove's customer base expanded 64% from the year-ago
quarter to 6367, which includes 1625 premium customers and 4742
volume customers. Sequentially, both premium and volume customers
increased by 52 and 172, respectively.
Brightcove added a number of major companies to its customer
base that includes the likes of insurance provider
and biopharmaceutical company
Bristol Meyers Squibb (
. Brightcove also entered into a partnership with
Revenues from non-media customers (60% of total revenues) grew
60% year over year, while media customers (40% of total revenue)
increased 17% from the year-ago quarter. Recurring dollar
retention rate was 89% in the fourth quarter.
Region wise, revenues from North America (64% of total
revenue) increased 29% year over year to $15.6 million. Europe
(23% of total revenue) jumped 33.0% year over year to $5.6
million. Asia-Pacific including Japan (13% of total revenue)
soared 35.0% from the year-ago quarter to $3.1 million.
Gross margin increased 20 basis points ("bps") on a
year-over-year basis to 69.8% in the reported quarter.
Operating expenses soared 27.7% year over year to $20.7
million due to 27.5% year-over-year increase in research &
development expenses, 20.6% year-on-year rise in sales &
marketing expenses and a 46.1% jump in general &
Loss from operations (including stock-based compensation) was
$3.7 million, wider than $3.3 million reported in the year-ago
quarter on a higher revenue base.
Net loss (including stock based compensation) of $3.7 million
was narrower than a loss of $3.8 million incurred in the
Balance Sheet and Cash flow
Exiting the fourth quarter, Brightcove had cash, cash
equivalents and investments of $30.0 million, down from $30.8
million reported in the third quarter. Brightcove generated cash
flow of $2.7 million in the fourth quarter. Free cash flow was
$2.5 million in the quarter.
For the first quarter, Brightcove expects revenues in the
range of $23.5 million to $24.0 million, which represents 18% to
21% year-over-year growth. Non-GAAP operating loss is expected to
be $2.0 million to $2.3 million. Non-GAAP loss is expected in the
range of 8 cents to 10 cents per share.
For fiscal 2013, Brightcove expects revenues to be in the
range of $102.0 million to $105.0 million, which represents 16%
to 19% year-over-year growth. Non-GAAP loss is expected to be
$4.5 million to $6.5 million. Non-GAAP net loss per share is
expected in the range of 18 cents to 25 cents per share.
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
long term. However, intense competition and sluggish
macro-economic environment are the near-term headwinds.
Currently, Brightcove has a Zacks Rank #3 (Hold).
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