Morning Update: Brightcove Inc. (NASDAQ:BCOV)

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Brightcove Inc.,BCOV

On 23 Jan 2019, Brightcove Inc. (NASDAQ:BCOV) has shown upward/downward moved of -0.55% and ended the last trade at $7.27. The trading volume was recorded to 106,235 shares as compared to average traded volume of 129,477 shares.

Brightcove Inc. (BCOV) recently reported financial results for the third quarter ended September 30, 2018.

Third Quarter 2018 Financial Highlights:

  • Revenue for the third quarter of 2018 was $41.1M, an raise of 4% contrast to $39.5M for the third quarter of 2017. Subscription and support revenue was $37.4M, contrast to $36.5M for the third quarter of 2017.
  • Gross profit for the third quarter of 2018 was $24.8M, representing a gross margin of 60% contrast to a gross profit of $23.0M for the third quarter of 2017. Non-GAAP gross profit for the third quarter of 2018 was $25.4M, representing a non-GAAP gross margin of 62%, contrast to a non-GAAP gross profit of $23.7M for the third quarter of 2017. Non-GAAP gross profit and non-GAAP gross margin exclude stock-based compensation expense and the amortization of purchased intangible assets.
  • Loss from operations was $3.1M for the third quarter of 2018, contrast to a loss from operations of $5.3M for the third quarter of 2017. Non-GAAP loss from operations, which excludes stock-based compensation expense, the amortization of purchased intangible assets and executive severance, was $607,000 for the third quarter of 2018, contrast to non-GAAP loss from operations of $2.2M during the third quarter of 2017.
  • Net loss was $3.5M, or $0.10 per diluted share, for the third quarter of 2018. This compares to a net loss of $5.4M, or $0.16 per diluted share, for the third quarter of 2017. Non-GAAP net loss, which excludes stock-based compensation expense, the amortization of purchased intangible assets and executive severance, was $968,000 for the third quarter of 2018, or $0.03 per diluted share, contrast to non-GAAP net loss of $2.2M for the third quarter of 2017, or $0.06 per diluted share.
  • Adjusted EBITDA was $575,000 for the third quarter of 2018, contrast to an adjusted EBITDA loss of $889,000 for the third quarter of 2017. Adjusted EBITDA excludes stock-based compensation expense, executive severance, the amortization of purchased intangible assets, depreciation expense, other income/expense and the provision for income taxes.
  • Cash flow used in operations was $488,000 for the third quarter for 2018, contrast to cash flow used in operations of $4.9M for the third quarter of 2017.
  • Free cash flow was negative $1.6M after the company invested $1.1M in capital expenditures and capitalization of internal-use software during the third quarter of 2018. Free cash flow was negative $6.2M for the third quarter of 2017.
  • Cash and cash equivalents were $26.9M as of September 30, 2018 contrast $27.5M at June 30, 2018.

Other Third Quarter and Recent Highlights:

  • Average yearly subscription revenue per premium consumer was $74,000 in the third quarter of 2018, not including starter consumers who had average annualized revenue of $4,600 per consumer. This compares to $73,000 in the comparable period in 2017.
  • Recurring dollar retention rate was 94% in the third quarter of 2018, which was in line with our historical target of the low to mid-90 percent range.
  • Ended the quarter with 3,867 consumers, of which 2,227 were premium.
  • New consumers and consumers who expanded their relationship during the quarter include: FM Global, 3M, University of Kansas Hospital Authority, Smithfield Foods, Barstool Sports, Quebecor, Pop Media Networks, LLC, ODK Media, Inc., Gaia, David Yurman, Mary Kay, H&M, San Francisco Ballet, The National September 11 Memorial & Museum, and Village Roadshow Australia, among others.
  • Frost & Sullivan recognized Brightcove with its 2018 Global Company of the Year Award. Our robust platform offering, brand reputation and expanding global footprint were noted as giving Brightcove a distinct edge in the highly fragmented OVP market.
  • Brightcove Context Aware Encoding won a CSI Award at the recent International Broadcasters Conference for best digital processing technology. This patent-pending technology was recognized as the fastest, most innovative approach to solving the complex problem of video delivery and beat out AWS’ Elemental technology, among others.
  • The Technology Services Industry Association recognized Brightcove as a Certified Staff Support Excellence Center for the 5th year in a row. This award recognizes Brightcove’s dedication to excellence and the unparalleled commitment the company makes to ensure a best-in-class experience for every consumer, on every inquiry.

Fourth Quarter 2018:

  • Revenue is predictable to be in the range of $41.0M to $41.5M, including about $3.3M of professional services revenue.
  • Non-GAAP loss from operations is predictable to be in the range of $500,000 to $1.0M, which excludes stock-based compensation of about $1.7M and the amortization of purchased intangible assets of about $400,000.
  • Adjusted EBITDA is predictable to be in the range of $200,000 to $700,000, which excludes stock-based compensation of about $1.7M, the amortization of purchased intangible assets of about $400,000, depreciation expense of about $1.2M and other income/expense and the provision for income taxes of about $300,000.
  • Non-GAAP net loss per diluted share is predictable to be $0.03 to $0.04, which excludes stock-based compensation of about $1.7M and the amortization of purchased intangible assets of about $400,000, and assumes about 36.6M weighted-average shares outstanding.

The company has price to cash ratio of 9.79. BCOV net profit margin of the firm was recorded at -7.80% and operating profit margin was calculated at -7.20% while gross profit margin was measured as 59.50%. Sales growth past 5 years was measured at 12.10%

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