Cloud-based solutions provider
) 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.
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
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 &
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
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
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.
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
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 Report
BRIGHTCOVE (BCOV): Free Stock Analysis Report
LIMELIGHT NETWK (LLNW): Free Stock Analysis
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