8-K
BRIGHTCOVE INC DE false 0001313275 0001313275 2021-02-17 2021-02-17

 

 

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 17, 2021

 

 

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))

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange

on which registered

Common Stock, par value $0.001 per share   BCOV   The NASDAQ Global Market

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 17, 2021, Brightcove Inc. issued a press release announcing certain financial and other information for the quarter and year ended December 31, 2020. 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 17, 2021, including attachments, furnished herewith.
104    Cover Page Interactive Data File (embedded within the Inline XBRL document).


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 17, 2021     Brightcove Inc.
    By:  

/s/ Robert Noreck

      Robert Noreck
      Chief Financial Officer
EX-99.1

Exhibit 99.1

Brightcove Announces Financial Results for Fourth Quarter and Fiscal Year 2020

BOSTON, MA (February 17, 2021) Brightcove Inc. (NASDAQ: BCOV) the global leader in video for business, today announced financial results for the fourth quarter and fiscal year ended December 31, 2020.

“Brightcove’s fourth quarter performance was a great finish to an excellent 2020, highlighted by our fastest organic revenue growth quarter in several years and the strongest free cash flow quarter in our history,” said Jeff Ray, Brightcove’s Chief Executive Officer.

Ray added, “2020 was video’s evolutionary moment and its value has never been more apparent. Brightcove is helping drive the proliferation of video, enabling enterprises to better engage with their customers and employees, and empowering content creators to monetize their content globally. Brightcove’s clear market leadership puts Brightcove in a great position to deliver strong, sustainable, and profitable growth for years to come.”

Fourth Quarter 2020 Financial Highlights:

 

   

Revenue for the fourth quarter of 2020 was $53.7 million, an increase of 13% compared to $47.6 million for the fourth quarter of 2019. Subscription and support revenue was $50.7 million, an increase of 14% compared to $44.6 million for the fourth quarter of 2019.

 

   

Gross profit for the fourth quarter of 2020 was $34.2 million, representing a gross margin of 64% compared to a gross profit of $28.8 million for the fourth quarter of 2019. Non-GAAP gross profit for the fourth quarter of 2020 was $34.8 million, representing a non-GAAP gross margin of 65%, compared to a non-GAAP gross profit of $29.7 million for the fourth quarter of 2019. Non-GAAP gross profit and non-GAAP gross margin exclude stock-based compensation expense and the amortization of acquired intangible assets.

 

   

Income from operations was $1.6 million for the fourth quarter of 2020, compared to a loss of $6.9 million for the fourth quarter of 2019. Non-GAAP operating income, which excludes stock-based compensation expense, restructuring, the amortization of acquired intangible assets and merger-related expense, was $5.4 million for the fourth quarter of 2020, compared to non-GAAP operating income of $2.2 million during the fourth quarter of 2019.

 

   

Net income was $2.0 million, or $0.05 per basic and diluted share, for the fourth quarter of 2020. This compares to a net loss of $6.7 million, or a loss of $0.17 per diluted share, for the fourth quarter of 2019. Non-GAAP net income, which excludes stock-based compensation expense, restructuring, the amortization of acquired intangible assets and merger-related expense, was $5.8 million for the fourth quarter of 2020, or $0.14 per diluted share, compared to non-GAAP net income of $2.4 million for the fourth quarter of 2019, or $0.06 per diluted share.


   

Adjusted EBITDA was $6.8 million for the fourth quarter of 2020, compared to adjusted EBITDA of $3.5 million for the fourth quarter of 2019. Adjusted EBITDA excludes stock-based compensation expense, merger-related expense, restructuring, the amortization of acquired intangible assets, depreciation expense, other income/expense and the provision for income taxes.

 

   

Cash flow provided by operations was $12.4 million for the fourth quarter for 2020, compared to $2.1 million for the fourth quarter of 2019.

 

   

Free cash flow was $10.9 million after the company invested $1.5 million in capital expenditures and capitalization of internal-use software during the fourth quarter of 2020. Free cash flow was negative $336,000 for the fourth quarter of 2019.

 

   

Cash and cash equivalents were $37.5 million as of December 31, 2020 compared to $30.3 million as of September 30, 2020.

Full Year 2020 Financial Highlights:

 

   

Revenue for the full year 2020 was $197.4 million, an increase of 7% compared to $184.5 million for 2019. Subscription and support revenue for 2020 was $187.3 million, an increase of 8% compared to $173.8 million for 2019.

 

   

Gross profit was $121.3 million for 2020, representing a gross margin of 61%, compared to $109.0 million for 2019. Non-GAAP gross profit was $123.7 million for 2020, representing a non-GAAP gross margin of 63%, compared to $111.9 million for 2019. Non-GAAP gross profit and non-GAAP gross margin exclude stock-based compensation expense and the amortization of acquired intangible assets.

 

   

Loss from operations was $5.3 million for 2020, compared to a loss from operations of $21.1 million for 2019. Non-GAAP income from operations, which excludes stock-based compensation expense, the amortization of acquired intangible assets, merger-related expense and executive severance and restructuring expense, was $15.2 million for 2020, compared to non-GAAP income from operations of $3.6 million for 2019.

 

   

Net loss was $5.8 million, or $0.15 per diluted share, for 2020. This compares to a net loss of $21.9 million, or $0.58 per diluted share, for 2019. Non-GAAP net income, which excludes stock-based compensation expense, the amortization of acquired intangible assets, merger-related expense and executive severance and restructuring expense, was $14.7 million for 2020, or $0.36 per diluted share, compared to non-GAAP net income of $2.8 million for 2019, or $0.07 per diluted share.

 

   

Adjusted EBITDA was $20.5 million for 2020, compared to an adjusted EBITDA of $8.8 million for 2019. Adjusted EBITDA excludes stock-based compensation expense, merger-related expense, executive severance and restructuring expense, the amortization of acquired intangible assets, depreciation expense, other income/expense and the provision for income taxes.


   

Cash flow provided by operations was $21.3 million for 2020, compared to cash flow from operations of $2.7 million for 2019.

 

   

Free cash flow was $12.6 million after the company invested $8.7 million in capital expenditures and capitalization of internal-use software during 2020. Free cash flow was negative $4.6 million for 2019.

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 annual subscription revenue per premium customer was $97,200 in the fourth quarter of 2020, excluding starter customers who had average annualized revenue of $4,400 per customer. This compares to $83,400 in the comparable period in 2019.

 

   

Recurring dollar retention rate was 91% in the fourth quarter of 2020, which was in-line with our historical target of the low to mid-90 percent range.

 

   

Ended the quarter with 3,330 customers, of which 2,279 were premium.

 

   

New customers and customers who expanded their relationship during the fourth quarter include: BioFire Diagnostics, Keller Williams Realty, DK Rights, Intel Corporation, Rainbow Media Holdings, and Meredith Corporation, among others.

 

   

Recipient of two Technology and Engineering Emmy® Awards, awarded by the National Academy of Television Arts & Sciences (NATAS) for excellence in engineering innovation. Brightcove’s Context Aware Encoding technology was recognized for excellence and engineering creativity in the Development of Perceptual Metrics for Video Encoding Optimization category. The technology enables customers to distribute videos encoded at high visual quality while minimizing network bandwidth and storage costs.

 

   

Chosen by South by Southwest® (SXSW®) Conference and Festivals to be the official video partner for the all-digital SXSW Online SXSW EDU Online events. Through Brightcove’s award-winning, highly-scalable, and flexible digital video platform, SXSW Online will span five different channels, emulating iconic SXSW stages from years past, and give attendees the unique ability to switch channels for different content in real-time, one major benefit of at-home streaming.

 

   

Announced that SEEK, one of the largest and most-established employment marketplace in Australia, is using Brightcove’s video technology to build a stronger brand and create more human connection between job seekers and organizations. Since implementing Brightcove, SEEk has seen a 55% higher brand impact overall across its channels.


   

Announced that Jennifer Smith has joined the company as Chief Marketing Officer (CMO). Smith is an international marketing executive who brings more than 20 years of experience in global technology companies to Brightcove. She is recognized for her leadership skills in go-to-market strategy and has a proven track record of making improvements across product, sales and marketing for public and private companies. Most recently, she served as CMO at Alfresco Software (recently acquired by Hyland), where she led the transformation of the company’s positioning from technology vendor to platform solution provider, managing all aspects of marketing.

Business Outlook

Based on information as of today, February 17, 2021, the Company is issuing the following financial guidance.

First Quarter 2021:

 

   

Revenue is expected to be in the range of $53.0 million to $54.0 million, including approximately $3.7 million of professional services revenue.

 

   

Non-GAAP income from operations is expected to be in the range of $4.0 million to $5.0 million, which excludes stock-based compensation of approximately $2.0 million, the amortization of acquired intangible assets of approximately $0.8 million and restructuring of approximately $0.3 million.

 

   

Adjusted EBITDA is expected to be in the range of $5.4 million to $6.4 million, which excludes stock-based compensation of approximately $2.0 million, the amortization of acquired intangible assets of approximately $0.8 million, restructuring of approximately $0.3 million, depreciation expense of approximately $1.4 million and other income/expense and the provision for income taxes of approximately $0.3 million.

 

   

Non-GAAP net income per diluted share is expected to be $0.09 to $0.11, which excludes stock-based compensation of approximately $2.0 million, the amortization of acquired intangible assets of approximately $0.8 million, restructuring of approximately $0.3 million, and assumes approximately 41.9 million weighted-average shares outstanding.

Full Year 2021:

 

   

Revenue is expected to be in the range of $211.0 million to $217.0 million, including approximately $12.5 million of professional services revenue.

 

   

Non-GAAP income from operations is expected to be in the range of $20.0 million to $25.0 million, which excludes stock-based compensation of approximately $9.1 million, the amortization of acquired intangible assets of approximately 3.0 million, restructuring of approximately $0.3 million.


   

Adjusted EBITDA is expected to be in the range of $25.5 million to $30.5 million, which excludes stock-based compensation of approximately $9.1 million, the amortization of acquired intangible assets of approximately $3.0 million, restructuring of approximately $0.3 million, depreciation expense of approximately $5.5 million and other income/expense and the provision for income taxes of approximately $1.2 million.

 

   

Non-GAAP earnings per diluted share is expected to be $0.44 to $0.56, which excludes stock-based compensation of approximately $9.1 million, the amortization of acquired intangible assets of approximately $3.0 million, restructuring of approximately $0.3 million and assumes approximately 42.2 million weighted-average shares outstanding.

Conference Call Information

Brightcove will host a conference call today, February 17, 2021, 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 13716183. A replay of the webcast will also be available for a limited time at http://investor.brightcove.com.

About Brightcove

When video is done right, it can have a powerful and lasting effect. Hearts open. Minds change. Creativity thrives. Since 2004, Brightcove has been helping customers discover and experience the incredible power of video through its award-winning technology, empowering organizations in more than 70 countries across the globe to touch audiences in bold and innovative ways.

Brightcove achieves this by developing technologies once thought impossible, providing customer support without parallel or excuses, and leveraging the expertise and resources of a global infrastructure. Video is the world’s most compelling, exciting medium. Visit www.brightcove.com for more information. Video That Means Business.

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 and full year 2021, our position to execute on our growth 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: the effect of the COVID-19 pandemic, including our business operations, as well as its impact on the general economic and financial market conditions; our ability to retain existing customers and acquire new ones; our history of losses; the timing and successful integration of the Ooyala acquisition; 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; keeping up with the rapid technological change required to remain competitive in our industry; 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, restructuring 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, restructuring, depreciation expense, other income/expense, including interest expense and interest income, and the provision for income taxes. Merger-related expenses include fees incurred in connection with an acquisition. 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.

Investors:

ICR for Brightcove

Brian Denyeau, 646-277-1251

brian.denyeau@icrinc.com

or

Media:

Brightcove

Meredith Duhaime

mduhaime@brightcove.com


Brightcove Inc.

Condensed Consolidated Balance Sheets

(in thousands)

 

     December 31, 2020     December 31, 2019  

Assets

    

Current assets:

    

Cash and cash equivalents

   $ 37,472     $ 22,759  

Accounts receivable, net of allowance

     29,305       31,181  

Prepaid expenses and other current assets

     18,738       11,884  
  

 

 

   

 

 

 

Total current assets

     85,515       65,824  

Property and equipment, net

     15,968       12,086  

Operating lease right-of-use asset

     8,699       16,912  

Intangible assets, net

     10,465       13,875  

Goodwill

     60,902       60,902  

Other assets

     5,254       3,268  
  

 

 

   

 

 

 

Total assets

   $ 186,803     $ 172,867  
  

 

 

   

 

 

 

Liabilities and stockholders’ equity

    

Current liabilities:

    

Accounts payable

   $ 10,456     $ 9,917  

Accrued expenses

     25,397       20,925  

Operating lease liability

     4,346       6,174  

Deferred revenue

     58,741       49,260  
  

 

 

   

 

 

 

Total current liabilities

     98,940       86,276  

Operating lease liability, net of current portion

     5,498       11,701  

Other liabilities

     2,763       767  
  

 

 

   

 

 

 

Total liabilities

     107,201       98,744  

Stockholders’ equity:

    

Common stock

     40       39  

Additional paid-in capital

     287,059       276,365  

Treasury stock, at cost

     (871     (871

Accumulated other comprehensive loss

     (188     (785

Accumulated deficit

     (206,438     (200,625
  

 

 

   

 

 

 

Total stockholders’ equity

     79,602       74,123  
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 186,803     $ 172,867  
  

 

 

   

 

 

 


Brightcove Inc.

Condensed Consolidated Statements of Operations

(in thousands, except per share amounts)

 

     Three Months Ended December 31,     Twelve Months Ended December 31,  
     2020      2019     2020     2019  

Revenue:

         

Subscription and support revenue

   $ 50,728      $ 44,626     $ 187,341     $ 173,818  

Professional services and other revenue

     2,962        2,977       10,012       10,637  
  

 

 

    

 

 

   

 

 

   

 

 

 

Total revenue

     53,690        47,603       197,353       184,455  

Cost of revenue: (1) (2)

         

Cost of subscription and support revenue

     16,834        16,827       67,124       67,064  

Cost of professional services and other revenue

     2,624        1,973       8,973       8,405  
  

 

 

    

 

 

   

 

 

   

 

 

 

Total cost of revenue

     19,458        18,800       76,097       75,469  
  

 

 

    

 

 

   

 

 

   

 

 

 

Gross profit

     34,232        28,803       121,256       108,986  
  

 

 

    

 

 

   

 

 

   

 

 

 

Operating expenses: (1) (2)

         

Research and development

     7,779        9,385       33,978       32,535  

Sales and marketing

     17,442        14,725       59,812       60,375  

General and administrative

     7,388        8,207       27,021       25,692  

Merger-related

     —          3,356       5,768       11,447  
  

 

 

    

 

 

   

 

 

   

 

 

 

Total operating expenses

     32,609        35,673       126,579       130,049  
  

 

 

    

 

 

   

 

 

   

 

 

 

Income (loss) from operations

     1,623        (6,870     (5,323     (21,063

Other income (expense), net

     419        197       128       (280
  

 

 

    

 

 

   

 

 

   

 

 

 

Net income (loss) before income taxes

     2,042        (6,673     (5,195     (21,343

Provision for income taxes

     21        39       618       560  
  

 

 

    

 

 

   

 

 

   

 

 

 

Net income (loss)

   $ 2,021      $ (6,712   $ (5,813   $ (21,903
  

 

 

    

 

 

   

 

 

   

 

 

 

Net income (loss) per share—basic and diluted

         

Basic

   $ 0.05      $ (0.17   $ (0.15   $ (0.58

Diluted

     0.05        (0.17     (0.15     (0.58
  

 

 

    

 

 

   

 

 

   

 

 

 

Weighted-average shares—basic and diluted

         

Basic

     39,932        38,891       39,473       38,028  

Diluted

     41,646        38,891       39,473       38,028  

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

         

Cost of subscription and support revenue

   $ 140      $ 342     $ 592     $ 683  

Cost of professional services and other revenue

     81        66       314       289  

Research and development

     239        589       1,078       1,444  

Sales and marketing

     699        1,302       3,139       2,713  

General and administrative

     902        2,456       3,662       4,130  

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

         

Cost of subscription and support revenue

   $ 335      $ 495     $ 1,501     $ 1,621  

Sales and marketing

     477        468       1,909       1,584  


Brightcove Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands)

 

     Twelve Months Ended December 31,  
     2020     2019  

Operating activities

    

Net loss

   $ (5,813   $ (21,903

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

    

Depreciation and amortization

     8,695       8,422  

Stock-based compensation

     8,785       9,259  

Provision for reserves on accounts receivable

     648       1,137  

Changes in assets and liabilities:

    

Accounts receivable

     1,358       (5,537

Prepaid expenses and other current assets

     (6,918     1,213  

Other assets

     (1,937     (758

Accounts payable

     1,014       1,682  

Accrued expenses

     5,600       6,749  

Operating leases

     182       (302

Deferred revenue

     9,698       2,746  
  

 

 

   

 

 

 

Net cash provided by operating activities

     21,312       2,708  
  

 

 

   

 

 

 

Investing activities

    

Cash paid for acquisition, net of cash acquired

     —         (5,339

Purchases of property and equipment, net of returns

     (2,362     (1,047

Capitalization of internal-use software costs

     (6,362     (6,232
  

 

 

   

 

 

 

Net cash used in investing activities

     (8,724     (12,618
  

 

 

   

 

 

 

Financing activities

    

Proceeds from exercise of stock options

     2,216       3,473  

Proceeds from debt

     10,000       —    

Debt paydown

     (10,000     —    

Other financing activities

     (631     (296
  

 

 

   

 

 

 

Net cash provided by financing activities

     1,585       3,177  
  

 

 

   

 

 

 

Effect of exchange rate changes on cash and cash equivalents

     540       186  
  

 

 

   

 

 

 

Net increase (decrease) in cash and cash equivalents

     14,713       (6,547

Cash and cash equivalents at beginning of period

     22,759       29,306  
  

 

 

   

 

 

 

Cash and cash equivalents at end of period

   $ 37,472     $ 22,759  
  

 

 

   

 

 

 


Brightcove Inc.

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

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

(in thousands, except per share amounts)

 

     Three Months Ended December 31,     Twelve Months Ended December 31,  
     2020      2019     2020     2019  

GROSS PROFIT:

         

GAAP gross profit

   $ 34,232      $ 28,803     $ 121,256     $ 108,986  

Stock-based compensation expense

     221        408       906       972  

Amortization of acquired intangible assets

     335        495       1,501       1,621  

Restructuring

     —          —         51       292  
  

 

 

    

 

 

   

 

 

   

 

 

 

Non-GAAP gross profit

   $ 34,788      $ 29,706     $ 123,714     $ 111,871  
  

 

 

    

 

 

   

 

 

   

 

 

 

INCOME (LOSS) FROM OPERATIONS:

         

GAAP income (loss) from operations

   $ 1,623      $ (6,870   $ (5,323   $ (21,063

Stock-based compensation expense

     2,061        4,755       8,785       9,259  

Amortization of acquired intangible assets

     812        963       3,410       3,205  

Merger-related

     —          3,356       5,768       11,447  

Restructuring

     873        —         2,583       752  
  

 

 

    

 

 

   

 

 

   

 

 

 

Non-GAAP income from operations

   $ 5,369      $ 2,204     $ 15,223     $ 3,600  
  

 

 

    

 

 

   

 

 

   

 

 

 

NET INCOME (LOSS):

         

GAAP net income (loss)

   $ 2,021      $ (6,712   $ (5,813   $ (21,903

Stock-based compensation expense

     2,061        4,755       8,785       9,259  

Amortization of acquired intangible assets

     812        963       3,410       3,205  

Merger-related

     —          3,356       5,768       11,447  

Restructuring

     873        —         2,583       752  
  

 

 

    

 

 

   

 

 

   

 

 

 

Non-GAAP net income

   $ 5,767      $ 2,362     $ 14,733     $ 2,760  
  

 

 

    

 

 

   

 

 

   

 

 

 

GAAP diluted net income (loss) per share

   $ 0.05      $ (0.17   $ (0.15   $ (0.58
  

 

 

    

 

 

   

 

 

   

 

 

 

Non-GAAP diluted net income per share

   $ 0.14      $ 0.06     $ 0.36     $ 0.07  
  

 

 

    

 

 

   

 

 

   

 

 

 

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

     39,932        38,891       39,473       37,739  

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

     41,646        39,691       40,449       39,104  


Brightcove Inc.

Calculation of Adjusted EBITDA

(in thousands)

 

     Three Months Ended December 31,     Twelve Months Ended December 31,  
     2020     2019     2020     2019  

Net income (loss)

   $ 2,021     $ (6,712   $ (5,813   $ (21,903

Other expense, net

     (419     (197     (128     280  

Provision for income taxes

     21       39       618       560  

Depreciation and amortization

     2,199       2,272       8,695       8,422  

Stock-based compensation expense

     2,061       4,755       8,785       9,259  

Merger-related

     —         3,356       5,768       11,447  

Restructuring

     873       —         2,583       752  
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

   $ 6,756     $ 3,513     $ 20,508     $ 8,817