Cloud-based solutions provider
Brightcove Inc.
's (
BCOV
) second quarter 2012 non-GAAP loss of 10 cents per share improved
from a loss of 91 cents reported in the previous-year quarter and
was narrower than the Zacks Consensus Estimate of a loss of 13
cents. However, including stock-based compensation of 5 cents, the
loss per share came in at 14 cents.
Quarter Details
Revenue increased 41.2% from the year-ago quarter to $21.6
million, primarily driven by Subscription and support revenue
(42.8% increase year-over-year) and Professional services and other
revenue (12.5% increase year-over-year). Reported revenue also beat
the Zacks Consensus Estimate of $20.0 million.
Gross profit (including stock based compensation) increased
46.7% from the previous-year quarter to 15.2 million, while gross
margin increased 250 basis points boosted by the prudent revenue
mix.
Operating expenses increased 23.7% from the previous-year
quarter to $19.1 million due to 21.0% year-over-year increase in
the Research & development expenses, 15.5% year-on-year rise in
Sales & Marketing expenses and 30.3% jump in General &
Administrative expenses.
Loss from operations (including stock based compensation)
improved from $5.07 million reported in the previous-year quarter
to $3.41 million on higher revenue base.
Net loss (including stock-based compensation) of $3.86 million
improved from loss of $5.46 million in the previous-year
quarter.
Exiting the second quarter, Brightcove had cash, cash
equivalents and investments of $58.6 million, down $2.0 million
from the previous quarter. The company does not have any long-term
debt.
Outlook
For the third quarter, the company expects revenues in the range
of $21.1 million to $21.6 million. Non-GAAP net loss is expected in
the range of 12 cents to 11 cents. The Zacks Consensus Estimate is
pinned at a loss of 10 cents.
For fiscal 2012, management expects revenue to be in the range
of $85.3 million to $86.0 million, and non-GAAP net loss per share
is expected in the range of 47 cents to 44 cents.
Recommendation
We believe that strong demand for cloud-based solutions,
security and mobile products, and online video along with strategic
acquisitions are the positives for the stock over the long
term.
However, intense competition from
Akamai Technologies Inc.
(
AKAM
) and
Limelight Networks, Inc.
(
LLNW
) coupled with sluggish macro-economic environment are the
near-term headwinds.
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 Report
BRIGHTCOVE (BCOV): Free Stock Analysis Report
LIMELIGHT NETWK (LLNW): Free Stock Analysis
Report
To read this article on Zacks.com click here.