8-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported): February 22, 2018

 

 

BRIGHTCOVE INC.

(Exact name of registrant as specified in its charter)

 

 

 

DELAWARE   001-35429   20-1579162

(State or other jurisdiction

of incorporation)

 

(Commission

File Number)

 

(I.R.S. Employer

Identification No.)

 

290 Congress Street, Boston, MA   02210
(Address of principal executive offices)   (Zip Code)

Registrant’s telephone number, including area code (888) 882-1880

Not Applicable

(Former name or former address, if changed since last report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company  ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

 

 

 


Item 2.02. Results of Operations and Financial Condition.

On February 22, 2018, Brightcove Inc. issued a press release announcing certain financial and other information for the quarter and year ended December 31, 2017. The full text of the press release and the related attachments are furnished as Exhibit 99.1 hereto and incorporated herein by reference.

The information in this Item 2.02 of this Report on Form 8-K and Exhibit 99.1 attached hereto is intended to be furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing.

 

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits

 

Exhibit
No.
  

Description

99.1    Press Release of Brightcove Inc. dated February 22, 2018, including attachments.


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Date: February 22, 2018     Brightcove Inc.
    By:  

/s/ Kevin R. Rhodes

      Kevin R. Rhodes
      Chief Financial Officer
EX-99.1

Exhibit 99.1

Brightcove Announces Financial Results for Fourth Quarter and Fiscal Year 2017

BOSTON, MA (February 22, 2018)Brightcove Inc. (Nasdaq: BCOV), the leading provider of cloud services for video, today announced financial results for the fourth quarter and fiscal year ended December 31, 2017.

“Brightcove finished 2017 with strong fourth quarter results that exceeded expectations on both the top and bottom line. We are seeing strong demand across products and geographies, and we continue to improve our efficiency across the business,” said Andrew Feinberg, Brightcove’s Acting Chief Executive Officer.

Feinberg added, “As we move into 2018 we have two primary strategic priorities: return to double-digit revenue growth by the fourth quarter and enhance our margins going forward. We believe Brightcove is well positioned to deliver significant value to customers and shareholders. We have the best product portfolio in our history and a go-to-market team that is well-aligned to drive improved growth.”

Gary Haroian, Brightcove’s Chairman of the Board, said, “The Board has been pleased with the Company’s performance in the second half of 2017 and the job Andy Feinberg has done. The Board continues to take a deliberate and thoughtful approach to evaluating candidates, including Andy, and anticipate naming a permanent CEO as soon as we complete our search process.”

Fourth Quarter 2017 Financial Highlights:

 

    Revenue for the fourth quarter of 2017 was $40.1 million, an increase of 4% compared to $38.6 million for the fourth quarter of 2016. Subscription and support revenue was $36.9 million, an increase of 2% compared with $36.1 million for the fourth quarter of 2016.

 

    Gross profit for the fourth quarter of 2017 was $23.8 million, representing a gross margin of 59%, compared to a gross profit of $23.3 million for the fourth quarter of 2016. Non-GAAP gross profit for the fourth quarter of 2017 was $24.5 million, representing a non-GAAP gross margin of 61%, compared to a non-GAAP gross profit of $24.8 million for the fourth quarter of 2016. Non-GAAP gross profit and non-GAAP gross margin exclude stock-based compensation expense, the amortization of acquired intangible assets and costs to exit a facility.

 

    Loss from operations was $1.3 million for the fourth quarter of 2017, compared to a loss from operations of $3.7 million for the fourth quarter of 2016. Non-GAAP income from operations, which excludes stock-based compensation expense, the amortization of acquired intangible assets and costs to exit a facility, was $1.3 million for the fourth quarter of 2017, compared to non-GAAP loss from operations of $309,000 during the fourth quarter of 2016.

 

    Net loss was $1.4 million, or $0.04 per diluted share, for the fourth quarter of 2017. This compares to a net loss of $4.4 million, or $0.13 per diluted share, for the fourth quarter of 2016. Non-GAAP net income, which excludes stock-based compensation expense, the amortization of acquired intangible assets and costs to exit a facility, was $1.3 million for the fourth quarter of 2017, or $0.04 per diluted share, compared to a non-GAAP net loss of $988,000 for the fourth quarter of 2016, or $0.03 per diluted share.

 

    Adjusted EBITDA was $2.3 million for the fourth quarter of 2017, compared to $803,000 for the fourth quarter of 2016. Adjusted EBITDA excludes stock-based compensation expense, the amortization of acquired intangible assets, depreciation expense, costs to exit a facility, other income/expense, and the provision for income taxes.


    Cash flow from operations was $5.2 million, compared to $3.4 million for the fourth quarter of 2016.

 

    Free cash flow was $4.2 million after the company invested $1.0 million in capital expenditures and capitalization of internal-use software during the fourth quarter of 2017. Free cash flow was $2.4 million for the fourth quarter of 2016.

 

    Cash and cash equivalents were $26.1 million as of December 31, 2017 compared to $22.1 million at September 30, 2017.

Full Year 2017 Financial Highlights:

 

    Revenue for the full year 2017 was $155.9 million, an increase of 4% compared to $150.3 million for 2016. Subscription and support revenue for 2017 was $143.2 million, an increase of 1% compared with $142.0 million for 2016.    

 

    Gross Profit was $91.3 million for 2017, compared to $94.4 million for 2016, representing a gross margin of 59% for 2017. Non-GAAP gross profit was $94.0 million for 2017, compared to $97.8 million for 2016, and a representing a non-GAAP gross margin of 60%. Non-GAAP gross profit and non-GAAP gross margin exclude stock-based compensation expense, the amortization of acquired intangible assets and costs to exit a facility.

 

    Loss from operations was $19.7 million for 2017, compared to a loss from operations of $9.0 million for 2016. Non-GAAP loss from operations, which excludes stock-based compensation expense, the amortization of acquired intangible assets, costs to exit a facility, executive severance and merger-related expenses, was $9.0 million for 2017, compared to a non-GAAP income from operations of $1.0 million for 2016.

 

    Net loss was $19.5 million, or $0.57 per diluted share, for 2017. This compares to a net loss of $10.0 million, or $0.30 per diluted share, for 2016. Non-GAAP net loss, which excludes stock-based compensation expense, the amortization of acquired intangible assets, costs to exit a facility, executive severance and merger-related expenses, was $8.8 million for 2017, or $0.26 per diluted share, compared to non-GAAP net income of $8,000 for 2016, or $0.00 per diluted share.

 

    Adjusted EBITDA loss was $4.5 million for 2017, compared to adjusted EBITDA of $5.7 million for 2016. Adjusted EBITDA excludes stock-based compensation expense, the amortization of acquired intangible assets, merger-related expenses, depreciation expense, costs to exit a facility, executive severance, other income/expense, and the provision for income taxes.

 

    Cash flow used in operations was $6.4 million for 2017, compared to cash from operations of $11.1 million for 2016.

 

    Free cash flow was negative $10.6 million after we invested $4.2 million in capital expenditures and capitalization of internal-use software during 2017. Free cash flow was 5.9 million for 2016.

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 Fourth Quarter and Recent Highlights:

 

    Average revenue per premium customer was $73,000 in the fourth quarter of 2017, excluding starter customers who had annualized revenue of $5,000 per customer. This is an increase of 3% from $71,000 in the comparable period in 2016.

 

    Recurring dollar retention rate was 87% in the fourth quarter of 2017, which was below our historical target in the low to mid 90% range.

 

    Ended the quarter with 4,168 customers, of which 2,167 were premium.

 

    Media and enterprise customers who expanded their relationship during the quarter included: Adobe Systems, AMC Entertainment, Burberry, Discover, Fox News Network, Franklin Templeton Investments, Hudson’s Bay, Hugo Boss, Le Figaro, McKesson, Schlumberger Ltd, Sky News Australia, Starwood Hotels, Subway, Trinity Mirror and Yahoo Japan, among others.

 

    Won the award for Best Video Distribution Platform at the 2017 Digiday Video Awards, which honor the most outstanding and inspired work in branded digital video, video marketing and video advertising by brands, agencies, and technology companies.

Business Outlook

Based on information as of today, February 22, 2018, the Company is issuing the following financial guidance:

First Quarter 2018:

 

    Revenue is expected to be in the range of $40.0 million to $40.5 million, including approximately $3.0 million of professional services revenue.

 

    Non-GAAP loss from operations is expected to be in the range of $1.9 million to $2.4 million, which excludes stock-based compensation of approximately $1.7 million and the amortization of acquired intangible assets of approximately $700,000.

 

    Adjusted EBITDA loss is expected to be in the range of $800,000 to $1.3 million, which excludes stock-based compensation of approximately $1.7 million, the amortization of acquired intangible assets of approximately $700,000, depreciation expense of approximately $1.1 million and other income/expense and the provision for income taxes of approximately $200,000.

 

    Non-GAAP net loss per share is expected to be $0.06 to $0.08, which excludes stock-based compensation of approximately $1.7 million and the amortization of acquired intangible assets of approximately $700,000, and assumes approximately 34.9 million shares outstanding.

Full Year 2018:

 

    Revenue is expected to be in the range of $164.0 million to $168.0 million, including approximately $11.5 million of professional services revenue.

 

    Non-GAAP income/loss from operations is expected to be in the range of a loss of $1.5 million to income of $1.5 million, which excludes stock-based compensation of approximately $7.2 million and the amortization of acquired intangible assets of approximately $2.3 million.

 

    Adjusted EBITDA is expected to be in the range of $2.5 million to $5.5 million, which excludes stock-based compensation of approximately $7.2 million, the amortization of acquired intangible assets of approximately $2.3 million, depreciation expense of approximately $4.1 million and other income/expense and the provision for income taxes of approximately $600,000.

 

    Non-GAAP net income/loss per diluted share is expected to be a loss of $0.06 to income of $0.02, which excludes stock-based compensation of approximately $7.2 million and the amortization of acquired intangible assets of approximately $2.3 million, and assumes approximately 35.2 million shares outstanding.


Conference Call Information

Brightcove will host a conference call today, February 22, 2018, at 5:00 p.m. (Eastern Time) to discuss the Company’s financial results and current business outlook. A live webcast of the call will be available at the “Investors” page of the Company’s website, http://investor.brightcove.com. To access the call, dial 877-407-3982 (domestic) or 201-493-6780 (international). A replay of this conference call will be available for a limited time at 844-512-2921 (domestic) or 412-317-6671 (international). The replay conference ID is 13675707. A replay of the webcast will also be available for a limited time at http://investor.brightcove.com.

About Brightcove

Brightcove Inc. (NASDAQ:BCOV) is the leading global provider of powerful cloud solutions for delivering and monetizing video across connected devices. The company offers a full suite of products and services that reduce the cost and complexity associated with publishing, distributing, measuring and monetizing video across devices. Brightcove has thousands of customers in over 70 countries that rely on the company’s cloud solutions to successfully publish high-quality video experiences to audiences everywhere. To learn more, visit www.brightcove.com.

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 first fiscal quarter of 2018 and full year 2018, our position to execute on our go-to-market strategy, and our ability to expand our leadership position and market opportunity. 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: our history of losses; our limited operating history; expectations regarding the widespread adoption of customer demand for our products; the effects of increased competition and commoditization of services we offer, including data delivery and storage; our ability to expand the sales of our products to customers located outside the U.S.; keeping up with the rapid technological change required to remain competitive in our industry; our ability to retain existing customers; our ability to manage our growth effectively and successfully recruit additional highly-qualified personnel; the price volatility of our common stock; and other risks set forth under the caption “Risk Factors” in our most recently filed Annual Report on Form 10-K, as updated by our subsequently filed Quarterly Reports on Form 10-Q and our other SEC filings. We assume no obligation to update any forward-looking statements contained in this document as a result of new information, future events or otherwise.


Non-GAAP Financial Measures

Brightcove has provided in this release the non-GAAP financial measures of non-GAAP gross profit, non-GAAP gross margin, non-GAAP income (loss) from operations, non-GAAP net income (loss), adjusted EBITDA and non-GAAP diluted net income (loss) per share. Brightcove uses these non-GAAP financial measures internally in analyzing its financial results and believes they are useful to investors, as a supplement to GAAP measures, in evaluating Brightcove’s ongoing operational performance. Brightcove believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing its financial results with other companies in Brightcove’s industry, many of which present similar non-GAAP financial measures to investors. As noted, the non-GAAP financial results discussed above of non-GAAP gross profit, non-GAAP gross margin, non-GAAP income (loss) from operations, non-GAAP net income (loss) and non-GAAP diluted net income (loss) per share exclude stock-based compensation expense, the amortization of acquired intangible assets, costs to exit a facility, executive severance and merger-related expenses. The non-GAAP financial results discussed above of adjusted EBITDA is defined as consolidated net income (loss), plus stock-based compensation expense, the amortization of acquired intangible assets, merger-related expenses, depreciation expense, costs to exit a facility, executive severance, other income/expense, including interest expense and interest income, and the provision for income taxes. Merger-related expenses include fees incurred in connection with closing an acquisition in addition to fees associated with the retention of key employees. Costs to exit a facility include termination fees and the disposal of property and equipment in connection with the closure of certain facilities for the purpose of consolidating the Company’s data centers. Executive severance represents severance paid to the former CEO of the Company. 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.

Investor Contact:

Brian Denyeau

ICR for Brightcove

brian.denyeau@icrinc.com

646-277-1251

Media Contact:

Phil LeClare

Brightcove, Inc

pleclare@brightcove.com

617-674-6510


Brightcove Inc.

Condensed Consolidated Balance Sheets

(in thousands)

 

     December 31, 2017     December 31, 2016  

Assets

    

Current assets:

    

Cash and cash equivalents

   $ 26,132     $ 36,813  

Accounts receivable, net of allowance

     25,236       21,575  

Prepaid expenses and other current assets

     7,036       5,897  
  

 

 

   

 

 

 

Total current assets

     58,404       64,285  

Property and equipment, net

     9,143       9,264  

Intangible assets, net

     8,236       10,970  

Goodwill

     50,776       50,776  

Deferred tax asset

     87       121  

Other assets

     969       1,008  
  

 

 

   

 

 

 

Total assets

   $ 127,615     $ 136,424  
  

 

 

   

 

 

 

Liabilities and stockholders’ equity

    

Current liabilities:

    

Accounts payable

   $ 6,142     $ 5,327  

Accrued expenses

     13,621       15,705  

Capital lease liability

     228       489  

Equipment financing

     26       307  

Deferred revenue

     39,370       34,665  
  

 

 

   

 

 

 

Total current liabilities

     59,387       56,493  

Deferred revenue, net of current portion

     244       91  

Other liabilities

     1,228       1,644  
  

 

 

   

 

 

 

Total liabilities

     60,859       58,228  

Stockholders’ equity:

    

Common stock

     35       34  

Additional paid-in capital

     238,700       230,788  

Treasury stock, at cost

     (871     (871

Accumulated other comprehensive loss

     (809     (1,172

Accumulated deficit

     (170,299     (150,583
  

 

 

   

 

 

 

Total stockholders’ equity

     66,756       78,196  
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 127,615     $ 136,424  
  

 

 

   

 

 

 

 


Brightcove Inc.

Condensed Consolidated Statements of Operations

(in thousands, except per share amounts)

 

     Three Months Ended
December 31,
    Twelve Months Ended
December 31,
 
     2017     2016     2017     2016  

Revenue:

        

Subscription and support revenue

   $ 36,893     $ 36,086     $ 143,159     $ 142,022  

Professional services and other revenue

     3,208       2,539       12,754       8,244  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total revenue

     40,101       38,625       155,913       150,266  

Cost of revenue: (1) (2)

        

Cost of subscription and support revenue

     12,484       12,970       50,664       48,011  

Cost of professional services and other revenue

     3,834       2,383       13,954       7,836  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total cost of revenue

     16,318       15,353       64,618       55,847  
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross profit

     23,783       23,272       91,295       94,419  
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating expenses: (1) (2)

        

Research and development

     7,557       7,786       31,850       30,171  

Sales and marketing

     12,938       14,193       57,294       54,038  

General and administrative

     4,619       4,977       21,847       19,167  

Merger-related

     —         —         —         21  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     25,114       26,956       110,991       103,397  
  

 

 

   

 

 

   

 

 

   

 

 

 

Loss from operations

     (1,331     (3,684     (19,696     (8,978

Other income (expense), net

     24       (471     547       (598
  

 

 

   

 

 

   

 

 

   

 

 

 

Net loss before income taxes

     (1,307     (4,155     (19,149     (9,576

Provision for income taxes

     65       208       370       410  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net loss

   $ (1,372   $ (4,363   $ (19,519   $ (9,986
  

 

 

   

 

 

   

 

 

   

 

 

 

Net (loss) income per share—basic and diluted

        

Basic

   $ (0.04   $ (0.13   $ (0.57   $ (0.30

Diluted

     (0.04     (0.13     (0.57     (0.30
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted-average shares—basic and diluted

        

Basic

     34,692       33,877       34,376       33,189  

Diluted

     34,692       33,877       34,376       33,189  

(1) Stock-based compensation included in above line items:

        

Cost of subscription and support revenue

   $ 131     $ 120     $ 439     $ 324  

Cost of professional services and other revenue

     62       59       251       217  

Research and development

     431       333       1,563       1,275  

Sales and marketing

     797       690       2,750       2,320  

General and administrative

     528       545       2,240       1,876  

(2) Amortization of acquired intangible assets included in the above line items:

      

Cost of subscription and support revenue

   $ 508     $ 508     $ 2,031     $ 2,031  

Research and development

     —         31       11       126  

Sales and marketing

     167       244       692       959  


Brightcove Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands)

 

     Twelve Months Ended December 31,  
     2017     2016  

Operating activities

    

Net loss

   $ (19,519   $ (9,986

Adjustments to reconcile net loss to net cash provided by operating activities:

    

Depreciation and amortization

     7,257       7,796  

Stock-based compensation

     7,243       6,012  

Deferred income taxes

     38       (47

Provision for reserves on accounts receivable

     203       230  

Loss on disposal of equipment

     —         155  

Changes in assets and liabilities:

    

Accounts receivable

     (3,811     (559

Prepaid expenses and other current assets

     (1,484     (894

Other assets

     56       (299

Accounts payable

     1,758       733  

Accrued expenses

     (2,930     3,172  

Deferred revenue

     4,748       4,764  
  

 

 

   

 

 

 

Net cash provided by operating activities

     (6,441     11,077  
  

 

 

   

 

 

 

Investing activities

    

Cash paid for purchase of intangible asset

     —         (300

Purchases of property and equipment, net of returns

     (1,102     (1,307

Capitalization of internal-use software costs

     (3,010     (3,887

Decrease in restricted cash

     —         201  
  

 

 

   

 

 

 

Net cash used in investing activities

     (4,112     (5,293
  

 

 

   

 

 

 

Financing activities

    

Proceeds from exercise of stock options

     520       4,555  

Payments of withholding tax on RSU vesting

     (268     (405

Proceeds from equipment financing

     —         604  

Payments on equipment financing

     (307     (271

Payments under capital lease obligation

     (489     (850
  

 

 

   

 

 

 

Net cash provided by (used in) financing activities

     (544     3,633  
  

 

 

   

 

 

 

Effect of exchange rate changes on cash and cash equivalents

     416       (241
  

 

 

   

 

 

 

Net increase in cash and cash equivalents

     (10,681     9,176  

Cash and cash equivalents at beginning of period

     36,813       27,637  
  

 

 

   

 

 

 

Cash and cash equivalents at end of period

   $ 26,132     $ 36,813  
  

 

 

   

 

 

 

 


Brightcove Inc.

Reconciliation of GAAP Gross Profit, GAAP Loss From Operations, GAAP Net Loss and GAAP Net Loss Per Share to

Non-GAAP Gross Profit, Non-GAAP Income (Loss) From Operations, Non-GAAP Net Income (Loss) and Non-GAAP Net Income (Loss) Per Share

(in thousands, except per share amounts)

 

     Three Months Ended December 31,     Twelve Months Ended December 31,  
     2017     2016     2017     2016  

GROSS PROFIT:

        

GAAP gross profit

   $ 23,783     $ 23,272     $ 91,295     $ 94,419  

Stock-based compensation expense

     193       179       690       541  

Amortization of acquired intangible assets

     508       508       2,031       2,031  

Costs to exit a facility

     —         845       —         845  
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP gross profit

   $ 24,484     $ 24,804     $ 94,016     $ 97,836  
  

 

 

   

 

 

   

 

 

   

 

 

 

LOSS FROM OPERATIONS:

        

GAAP loss from operations

   $ (1,331   $ (3,684   $ (19,696   $ (8,978

Stock-based compensation expense

     1,949       1,747       7,243       6,012  

Merger-related expenses

     —         —         —         21  

Amortization of acquired intangible assets

     675       783       2,734       3,116  

Costs to exit a facility

     —         845       —         845  

Executive severance

     —         —         700       —    
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP income (loss) from operations

   $ 1,293     $ (309   $ (9,019   $ 1,016  
  

 

 

   

 

 

   

 

 

   

 

 

 

NET LOSS:

        

GAAP net loss

   $ (1,372   $ (4,363   $ (19,519   $ (9,986

Stock-based compensation expense

     1,949       1,747       7,243       6,012  

Merger-related expenses

     —         —         —         21  

Amortization of acquired intangible assets

     675       783       2,734       3,116  

Costs to exit a facility

     —         845       —         845  

Executive severance

     —         —         700       —    
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP net income (loss)

   $ 1,252     $ (988   $ (8,842   $ 8  
  

 

 

   

 

 

   

 

 

   

 

 

 

GAAP diluted net loss per share

   $ (0.04   $ (0.13   $ (0.57   $ (0.30
  

 

 

   

 

 

   

 

 

   

 

 

 

Non-GAAP diluted net income (loss) per share

   $ 0.04     $ (0.03   $ (0.26   $ 0.00  
  

 

 

   

 

 

   

 

 

   

 

 

 

Shares used in computing GAAP diluted net loss per share

     34,692       33,877       34,376       33,189  

Shares used in computing Non-GAAP diluted net income (loss) per share

     35,525       33,877       34,376       34,620  

Brightcove Inc.

Calculation of Adjusted EBITDA

(in thousands)

 

     Three Months Ended December 31,     Twelve Months Ended December 31,  
     2017     2016     2017     2016  

Net (loss) income

   $ (1,372   $ (4,363   $ (19,519   $ (9,986

Other expense, net

     (24     471       (547     598  

Provision for income taxes

     65       208       370       410  

Merger-related expenses

     —         —         —         21  

Depreciation and amortization

     1,650       1,895       7,257       7,796  

Stock-based compensation expense

     1,949       1,747       7,243       6,012  

Costs to exit a facility

     —         845       —         845  

Executive severance

     —         —         700       —    
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

   $ 2,268     $ 803     $ (4,496   $ 5,696