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"We are pleased with our second quarter results, which exceeded our
guidance on both the top and bottom line," said
Allaire added, "The acquisition of Zencoder not only strengthens our Video Cloud online video platform in a key technology area, but it also signals our expansion into standalone cloud services that developers can use as building blocks for custom systems. In addition, Zencoder is also the developer of Video.js, a fast-growing, free HTML5 video player that provides an excellent starting point for organizations that could potentially upgrade to our Video Cloud Express offering. We welcome the Zencoder team, customers, and developer communities and look forward to developing these positive synergies."
Second Quarter 2012 Financial Highlights:
Revenue: Total revenue for the second quarter of 2012 was
Gross Profit: Gross profit for the second quarter of 2012 was
Operating Loss: Loss from operations was
Net Loss: Net loss attributable to common stockholders was
Non-GAAP net loss attributable to common stockholders, which excludes
stock-based compensation expense, the accretion of dividends on
redeemable convertible preferred stock, and merger-related costs, was
Balance Sheet and
A Reconciliation of GAAP to Non-GAAP results has been provided in the financial statement tables included at the end of this press release. An explanation of these measures is also included below under the heading "Non-GAAP Financial Measures."
Other Second Quarter and Recent Highlights
Business Outlook
Based on information as of today,
Full Year 2012: The Company expects revenue to be
Third Quarter 2012: The Company expects revenue to be
With respect to the Company's expectations under "Business Outlook" above, the Company has not reconciled non-GAAP loss from operations or non-GAAP loss per share to GAAP loss from operations and GAAP loss per share because at this time the Company is unable to forecast the amortization of intangible assets related to the recent acquisition of Zencoder, which is a reconciling item between those Non-GAAP and GAAP measures. Accordingly, a reconciliation to GAAP loss from operations and GAAP loss per share is not available at this time.
Conference Call Information
About
Forward-Looking Statements
This press release includes certain "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of 1995,
including statements concerning our financial guidance for the third
fiscal quarter of 2012 and the full year of 2012, our position to
execute on our growth strategy, the closing and successful integration
of the Zencoder acquisition, and our ability to expand our leadership
position. These forward-looking statements include, but are not limited
to, plans, objectives, expectations and intentions and other statements
contained in this press release that are not historical facts and
statements identified by words such as "expects," "anticipates,"
"intends," "plans," "believes," "seeks," "estimates" or words of similar
meaning. These forward-looking statements reflect our current views
about our plans, intentions, expectations, strategies and prospects,
which are based on the information currently available to us and on
assumptions we have made. Although we believe that our plans,
intentions, expectations, strategies and prospects as reflected in or
suggested by those forward-looking statements are reasonable, we can
give no assurance that the plans, intentions, expectations or strategies
will be attained or achieved. Furthermore, actual results may differ
materially from those described in the forward-looking statements and
will be affected by a variety of risks and factors that are beyond our
control including, without limitation, risks associated with our history
of losses, our limited operating history; expectations regarding the
widespread adoption of customer demand for our Video Cloud and
Non-GAAP Financial Measures
Non-GAAP financial measures have limitations as an analytical tool and should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures. As previously mentioned, a reconciliation of our non-GAAP financial measures to their most directly comparable GAAP measures has been provided in the financial statement tables included below in this press release. The Company's earnings press releases containing such non-GAAP reconciliations can be found on the Investors section of the Company's web site at http://www.brightcove.com.
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|
||||||||
| Condensed Consolidated Balance Sheets | ||||||||
| (in thousands) | ||||||||
| (unaudited) | ||||||||
|
|
|
|||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 44,607 | $ | 17,227 | ||||
| Short-term investments | 8,987 | $ | - | |||||
| Accounts receivable, net of allowance | 17,465 | 14,693 | ||||||
| Prepaid expenses and other current assets | 3,654 | 3,334 | ||||||
| Total current assets | 74,713 | 35,254 | ||||||
| Long-term investments | 5,035 | - | ||||||
| Property and equipment, net | 8,871 | 6,079 | ||||||
| Goodwill | 2,372 | 2,372 | ||||||
| Deferred initial public offering costs | - | 2,544 | ||||||
| Restricted cash | 233 | 233 | ||||||
| Other assets | 449 | 856 | ||||||
| Total assets | $ | 91,673 | $ | 47,338 | ||||
| Liabilities, Redeemable Convertible Preferred Stock and | ||||||||
| Stockholders' Equity (Deficit) | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 1,411 | $ | 2,026 | ||||
| Accrued expenses | 8,779 | 8,773 | ||||||
| Current portion of long-term debt | - | 833 | ||||||
| Deferred revenue | 15,970 | 13,418 | ||||||
| Total current liabilities | 26,160 | 25,050 | ||||||
| Deferred revenue, net of current portion | 263 | 354 | ||||||
| Long-term debt | - | 6,167 | ||||||
| Other liabilities | 327 | 77 | ||||||
| Redeemable convertible preferred stock warrants | - | 424 | ||||||
| Total liabilities | 26,750 | 32,072 | ||||||
| Redeemable convertible preferred stock | - | 120,351 | ||||||
| Stockholders' Equity (Deficit): | ||||||||
| Common stock | 27 | 5 | ||||||
| Additional-paid-in-capital | 163,225 | - | ||||||
| Accumulated other comprehensive income | 962 | 1,056 | ||||||
| Accumulated deficit | (100,601 | ) | (107,254 | ) | ||||
|
Total stockholders' equity (deficit) attributable to |
63,613 | (106,193 | ) | |||||
| Non-controlling interest in consolidated subsidiary | 1,310 | 1,108 | ||||||
| Total stockholders' equity (deficit) | 64,923 | (105,085 | ) | |||||
| Total liabilities, redeemable convertible preferred stock and | ||||||||
| stockholders' equity (deficit) | $ | 91,673 | $ | 47,338 | ||||
|
|
||||||||||||||||
| Condensed Consolidated Statements of Operations | ||||||||||||||||
| (in thousands, except per share amounts) | ||||||||||||||||
| (unaudited) | ||||||||||||||||
|
Three Months Ended |
Six Months Ended June 30, | |||||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||
| Revenue: | ||||||||||||||||
| Subscription and support revenue | $ | 20,718 | $ | 14,478 | $ | 39,554 | $ | 26,970 | ||||||||
| Professional services and other revenue | 902 | 802 | 2,010 | 1,384 | ||||||||||||
| Total revenue | 21,620 | 15,280 | 41,564 | 28,354 | ||||||||||||
| Cost of revenue: (1) | ||||||||||||||||
| Cost of subscription and support revenue | 5,233 | 3,760 | 10,428 | 7,039 | ||||||||||||
| Cost of professional services and other revenue | 1,211 | 1,176 | 2,380 | 2,273 | ||||||||||||
| Total cost of revenue | 6,444 | 4,936 | 12,808 | 9,312 | ||||||||||||
| Gross profit | 15,176 | 10,344 | 28,756 | 19,042 | ||||||||||||
| Operating expenses: (1) | ||||||||||||||||
| Research and development | 4,564 | 3,755 | 8,741 | 7,198 | ||||||||||||
| Sales and marketing | 9,745 | 8,406 | 18,753 | 15,372 | ||||||||||||
| General and administrative | 4,274 | 3,253 | 7,911 | 5,978 | ||||||||||||
| Merger-related | 479 | - | 479 | - | ||||||||||||
| Total operating expenses | 19,062 | 15,414 | 35,884 | 28,548 | ||||||||||||
| Loss from operations | (3,886 | ) | (5,070 | ) | (7,128 | ) | (9,506 | ) | ||||||||
| Other expense, net | (273 | ) | (261 | ) | (536 | ) | (139 | ) | ||||||||
| Loss before income taxes and non-controlling interest in | ||||||||||||||||
| consolidated subsidiary | (4,159 | ) | (5,331 | ) | (7,664 | ) | (9,645 | ) | ||||||||
| Provision for income taxes | 29 | 51 | 58 | 83 | ||||||||||||
| Consolidated net loss | (4,188 | ) | (5,382 | ) | (7,722 | ) | (9,728 | ) | ||||||||
| Net income attributable to noncontrolling interest in | ||||||||||||||||
| consolidated subsidiary | (150 | ) | (76 | ) | (202 | ) | (145 | ) | ||||||||
|
Net loss attributable to |
(4,338 | ) | (5,458 | ) | (7,924 | ) | (9,873 | ) | ||||||||
| Accretion of dividends on redeemable convertible preferred stock | - | (1,409 | ) | (733 | ) | (2,819 | ) | |||||||||
| Net loss attributable to common stockholders | $ | (4,338 | ) | $ | (6,867 | ) | $ | (8,657 | ) | $ | (12,692 | ) | ||||
| Net loss per share attributable to common stockholders—basic | ||||||||||||||||
| and diluted | $ | (0.16 | ) | $ | (1.42 | ) | $ | (0.40 | ) | $ | (2.65 | ) | ||||
| Weighted-average shares —basic and diluted | 27,256 | 4,833 | 21,550 | 4,795 | ||||||||||||
| (1) Stock-based compensation included in above line items: | ||||||||||||||||
| Cost of subscription and support revenue | 35 | 13 | 55 | 23 | ||||||||||||
| Cost of professional services and other revenue | 25 | 35 | 47 | 59 | ||||||||||||
| Research and development | 136 | 91 | 217 | 177 | ||||||||||||
| Sales and marketing | 363 | 300 | 615 | 555 | ||||||||||||
| General and administrative | 704 | 602 | 1,276 | 1,217 | ||||||||||||
|
|
||||||||
| Condensed Consolidated Statements of Cash Flows | ||||||||
| (in thousands) | ||||||||
| (unaudited) | ||||||||
|
Six Months Ended |
||||||||
| Operating activities | 2012 | 2011 | ||||||
| Net loss | $ | (7,722 | ) | $ | (9,728 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Depreciation and amortization | 1,821 | 1,438 | ||||||
| Stock-based compensation | 2,210 | 2,031 | ||||||
| Change in fair value of warrants | (28 | ) | 143 | |||||
| Provision for reserves on accounts receivable | 247 | (10 | ) | |||||
| Amortization of premium on investments | 45 | - | ||||||
| Amortization of deferred financing costs | 44 | - | ||||||
| Loss on disposal of equipment | 83 | 40 | ||||||
| Loss on sale of investments | - | 146 | ||||||
| Changes in assets and liabilities: | ||||||||
| Accounts receivable | (3,048 | ) | (3,874 | ) | ||||
| Prepaid expenses and other current assets | (345 | ) | (1,694 | ) | ||||
| Other assets | 362 | (483 | ) | |||||
| Accounts payable | (453 | ) | 1,758 | |||||
| Accrued expenses | 415 | 2,330 | ||||||
| Deferred revenue | 2,473 | 4,288 | ||||||
| Net cash used in operating activities | (3,896 | ) | (3,615 | ) | ||||
| Investing activities | ||||||||
| Sales of investments | - | 2,732 | ||||||
| Purchases of investments | (14,067 | ) | - | |||||
| Purchases of property and equipment | (4,669 | ) | (2,133 | ) | ||||
| Capitalization of internal-use software costs | (24 | ) | (216 | ) | ||||
| Decrease in restricted cash | - | 278 | ||||||
| Net cash (used in) provided by investing activities | (18,760 | ) | 661 | |||||
| Financing activities | ||||||||
| Proceeds from exercise of stock options | 343 | 110 | ||||||
| Borrowings under line of credit | - | 2,000 | ||||||
| Borrowings under term loan | - | 5,000 | ||||||
| Repayments under term loan | (7,000 | ) | - | |||||
| Proceeds from issuance of common stock in connection with initial public offering, net of offering costs | 56,762 | - | ||||||
| Net cash provided by financing activities | 50,105 | 7,110 | ||||||
| Effect of exchange rate changes on cash | (69 | ) | 68 | |||||
| Net increase in cash and cash equivalents | 27,380 | 4,224 | ||||||
| Cash and cash equivalents at beginning of period | 17,227 | 20,341 | ||||||
| Cash and cash equivalents at end of period | $ | 44,607 | $ | 24,565 | ||||
|
|
||||||||||||||||
| Reconciliation of GAAP Gross Profit, GAAP Loss From Operations and GAAP Net Loss to | ||||||||||||||||
| Non-GAAP Gross Profit, Non-GAAP Loss From Operations and Non-GAAP Net Loss | ||||||||||||||||
| (in thousands, except per share amounts) | ||||||||||||||||
| (unaudited) | ||||||||||||||||
|
Three Months Ended |
Six Months Ended June 30, | |||||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||
| GROSS PROFIT: | ||||||||||||||||
| GAAP gross profit | $ | 15,176 | $ | 10,344 | $ | 28,756 | $ | 19,042 | ||||||||
| Stock-based compensation expense | 60 | 48 | 102 | 82 | ||||||||||||
| Non-GAAP gross profit | $ | 15,236 | $ | 10,392 | $ | 28,858 | $ | 19,124 | ||||||||
| LOSS FROM OPERATIONS: | ||||||||||||||||
| GAAP loss from operations | $ | (3,886 | ) | $ | (5,070 | ) | $ | (7,128 | ) | $ | (9,506 | ) | ||||
| Stock-based compensation expense | 1,263 | 1,041 | 2,210 | 2,031 | ||||||||||||
| Merger-related costs | 479 | - | 479 | - | ||||||||||||
| Non-GAAP loss from operations | $ | (2,144 | ) | $ | (4,029 | ) | $ | (4,439 | ) | $ | (7,475 | ) | ||||
| NET LOSS: | ||||||||||||||||
| GAAP net loss attributable to common stockholders | $ | (4,338 | ) | $ | (6,867 | ) | $ | (8,657 | ) | $ | (12,692 | ) | ||||
| Stock-based compensation expense | 1,263 | 1,041 | 2,210 | 2,031 | ||||||||||||
| Accretion of dividends on redeemable convertible preferred stock | - | 1,409 | 733 | 2,819 | ||||||||||||
| Merger-related costs | 479 | - | 479 | - | ||||||||||||
| Non-GAAP net loss attributable to common stockholders | $ | (2,596 | ) | $ | (4,417 | ) | $ | (5,235 | ) | $ | (7,842 | ) | ||||
| GAAP basic and diluted net loss per share attributable to common stockholders | $ | (0.16 | ) | $ | (1.42 | ) | $ | (0.40 | ) | $ | (2.65 | ) | ||||
| Non-GAAP basic and diluted net loss per share attributable to common stockholders | $ | (0.10 | ) | $ | (0.91 | ) | $ | (0.24 | ) | $ | (1.64 | ) | ||||
| Shares used in computing GAAP and Non-GAAP basic and diluted net loss per share | ||||||||||||||||
| attributable to common stockholders | 27,256 | 4,833 | 21,550 | 4,795 | ||||||||||||
Investor Contact:
ICR for
brian.denyeau@icrinc.com
or
Media
Contact:
kleighton@brightcove.com
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