Brightcove reports Q1 loss, sees revenue climb 53% to $19.9M
Online video platform Brightcove (Nasdaq: BCOV), in its first earnings report since its February IPO, today reported first-quarter revenue of $19.9 million, up 53 percent from $13.1 million in the like period a year ago. That easily beat analyst revenue expectations of $17.81 million.
However, the Cambridge, Mass.-based company also said, as it had anticipated, it lost money in the quarter. The $2.6 million, or 17 cents per share, loss was 1 cent worse than the 16 cents per share loss analysts forecasted.
Despite the mixed results, Chairman and Chief Executive Jeremy Allaire said Brightcove was "ahead of our expectations from a revenue and profitability perspective." He said the OVP was seeing "a dramatic shift in video consumption," and that it was creating a major market opportunity.
"We believe the total potential market for online video platforms is over $2 billion today," he said, adding that Brightcove was well positioned to take advantage of media companies transitioning from in-house platforms to OVPs.
"This is a major milestone for our company that helps expand awareness that companies of all sizes and across verticals are increasingly adopting online video platforms and launching mobile content applications," Allaire said. "With the proceeds from our IPO, we have greater resources to execute our growth strategy and expand our market leadership position."
Brightcove, which raised $54.6 million in its IPO, currently has about $60.6 million in cash and cash equivalents on hand, and is debt free, the company reported.
For the quarter, Brightcove reported subscription and support revenue came in at $18.8 million, up 51 percent from $12.5 million a year ago, and said professional services and other revenue was $1.1 million, up 90 percent from $600,000 in Q1 2011.
Among the highlights:
Brightcove added 264 Express customers and 118 Premium customers during the quarter, including Allianz France, Pfizer International Operations, Toyota and Starwood Hotels & Resorts. The company said it closed the quarter with 4,254 customers, up 49 percent year-over-year.
It also unveiled a major new release of Brightcove App Cloud, which adds new cloud services for intelligent cross-platform push notifications and content-level analytics that are intended to enable app owners to more easily engage their installed base.
Brightcove scored a major win with NBC, which chose the Brightcove App Cloud content app platform to support the first-ever Emmy screener app for iPad, NBCU Screen It.
It also announced the Brightcove Content Exchange, which enables Video Cloud media customers to access libraries of third-party video content and to execute advertising strategies around licensed content. Third-party video content libraries that are making their content accessible include AOL Video, Diagonal View, Internet Video Archive, NewsLook, ScreenPlay, and Touchstorm.
Brightcove also offered guidance for Q2 that was better than analysts expected.
The company said it expects a loss of between 13 and 14 cents on revenue of $19.5 million to $19.9 million. Analysts expected a loss of 17 cents on revenues of $18.5 million for the quarter.
For the year, Brightcove forecasted a loss of 44 cents to 48cents a share on revenue of $81 million to $81.5 million. Analysts settled on a loss of 55 cents per share on revenue of $77.8 million.
Brightcove closed up 9 cents, to $19, Thursday.
- see this release
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