Brightcove Inc. (
reported a loss of 11 cents per share in the first quarter of
2013, wider than the Zacks Consensus Estimate of a loss of 9
cents. However, loss per share was narrower than a loss of 23
cents reported in the year-ago quarter.
Revenues jumped 24.0% from the year-ago quarter to $24.7 million,
slightly better than the consensus mark. The year-over-year
increase was primarily driven by a 26.2% surge in Subscription
and Support revenues, which fully offset a 14.8% plunge in
Professional Services and Other revenues.
Brighcove's revenues from premium offerings jumped 22.0% year
over year to $22.2 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 45.0% year over year to $2.5 million.
Brightcove's customer base expanded 48.6% from the year-ago
quarter to 6321, which includes 1690 premium customers and 4631
volume customers. Brightcove added/renewed contracts with major
companies that include the likes of Network Ten, Weather Channel
AOL Inc. (
EMC Corp (
Revenues from non-media customers (63% of total revenue) grew
31.0% year over year, while revenues from media customers (37% of
total revenue) increased 13% from the year-ago quarter. Recurring
dollar retention rate was 97% in the first quarter.
Region wise, revenues from North America (62% of total revenue)
increased 18.0% year over year to $15.4 million. Europe (22% of
total revenue) jumped 22.0% year over year to $5.4 million.
Asia-Pacific including Japan (16% of total revenue) soared 57.0%
from the year-ago quarter to $3.9 million.
Gross margin increased 210 basis points ("bps") on a
year-over-year basis to 66.0% in the reported quarter.
Operating expenses soared 16.7% year over year to $19.6 million
due to a 21.2% year-over-year increase in research &
development expenses, 10.4% year-on-year rise in sales &
marketing expenses and a 27.2% jump in general &
Loss from operations (including stock-based compensation) was
$2.9 million, narrower than $3.2 million reported in the year-ago
quarter on a higher revenue base.
Net loss (including stock based compensation) of $3.2 million was
narrower than a loss of $3.6 million incurred in the prior-year
Balance Sheet and Cash Flow
Exiting the first quarter, Brightcove had cash, cash equivalents
and investments of $26.9 million, down from $30.0 million
reported in the fourth quarter. Brightcove's cash outflow was
$2.8 million in the first quarter. Free cash outflow was $2.9
million in the quarter.
For the second quarter, Brightcove expects revenues in the range
of $25.7 million to $26.2 million. Non-GAAP operating loss is
expected to be $1.4 million to $1.7 million. Non-GAAP loss is
expected in the range of 6 cents to 7 cents per share.
For fiscal 2013, Brightcove expects revenues to be in the range
of $104.0 million to $106.0 million. Non-GAAP loss is expected to
be $3.3 million to $4.8 million. Non-GAAP net loss per share is
expected in the range of 15 cents to 22 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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