Financial Data and Key Metrics Changes - Revenue for Q4 2023 was $50.2 million, up 2% year-over-year, exceeding the midpoint of guidance [5][31] - Adjusted EBITDA was $5.5 million, representing a 366% increase year-over-year, with an adjusted EBITDA margin of 11% [36] - Free cash flow generated was $1.4 million, contributing over $2 million to the cash balance [5][36] - Total revenue for the full year 2023 was $201.2 million, down from $211 million in 2022, primarily due to a $7.4 million decline in overage revenue [37] Business Line Data and Key Metrics Changes - Subscription and support revenue was $47.8 million, while professional services revenue was $2.4 million, showing a 54% increase [32] - Average annual contract values for new business increased over 200% year-over-year, indicating a shift towards larger deals [7] - Average revenue per user (ARPU) rose 8% year-over-year to $96,200 for premium customers [35] Market Data and Key Metrics Changes - 60% of revenue was generated in North America, with 40% from international markets, where Europe contributed 17% and Asia-Pacific 23% [33] - New business in the sports vertical saw significant growth, with new logos added including PGA of America and Moto America [9] Company Strategy and Development Direction - The company aims to focus on profitability and cash flow generation, targeting a 25% growth in adjusted EBITDA for 2024 [7][25] - Strategic initiatives include enhancing product offerings, expanding multiyear contracts, and improving customer relationships [15][18] - The company is committed to an AI-driven future, leveraging AI to enhance customer performance and reduce costs [17][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential of the business despite challenges in the existing customer base due to overage declines [46] - The company anticipates a cautious return to revenue growth, influenced by macroeconomic conditions and market dynamics [25][40] - Management highlighted the importance of executing strategic initiatives to improve profitability while investing in growth areas [25][41] Other Important Information - The company announced a CFO transition plan, with Rob Noreck stepping down by the end of May 2024 [29][30] - The total backlog reached $183 million, up 19% year-over-year, indicating strong future revenue visibility [33] Q&A Session Summary Question: What is behind the disconnect between the 6% increase in 12-month backlog and guidance implying a 3% decline in subscription revenue? - Management indicated that the decline is primarily due to expected M&A-related customer loss in Q1 and the timing of large deal closures [44] Question: Does the company believe it is a growth business despite recent challenges? - Management affirmed confidence in the growth potential, emphasizing the focus on larger enterprise and media markets [46] Question: What is the explanation for the negative services gross margin in Q4? - The negative margin was attributed to timing of expenses for project delivery, which is not expected to continue [50] Question: Will gross margins for 2024 differ significantly from the previous year? - Management expects gross margins to remain in line with the previous year, with some cost increases related to depreciation [51] Question: What are the implications of the recent management changes on strategy? - Management confirmed that the strategy remains consistent, with new executives expected to enhance execution and focus on growth [57]

BOSTON--(BUSINESS WIRE)--Brightcove Inc. (Nasdaq: BCOV), the world’s most trusted streaming technology company, today announced financial results for the fourth quarter and fiscal year ended December 31, 2023. “Our fourth quarter results were highlighted by a return to top-line growth, substantial adjusted EBITDA growth, our second consecutive quarter of double-digit adjusted EBITDA margins, and positive free cash flow. This was a successful conclusion to an important transformational year. We have made si ...

Part I [Business](index=6&type=section&id=Item%201.%20Business) Brightcove Inc. is a global provider of cloud-based streaming technology and services, primarily through a subscription-based SaaS model, serving 2,559 customers as of December 31, 2023 - Brightcove is a global leader in cloud-based streaming technology, serving **2,559 customers** in over 60 countries as of December 31, 2023[10](index=10&type=chunk) Annual Revenue Trend | Year | Revenue (in millions) | | :--- | :--- | | 2022 | $211.0 | | 2023 | $201.2 | - The company's business model is primarily **subscription-based Software as a Service (SaaS)**, with Video Cloud™ being the historical source of substantially all revenue[11](index=11&type=chunk) - Brightcove's go-to-market strategy focuses on serving existing customers and expanding resources to target higher-end media and enterprise organizations[12](index=12&type=chunk)[32](index=32&type=chunk) - Artificial intelligence (AI) is leveraged in offerings like Engagement Insights, Quality of Experience (QoE) Insights, and Context Aware Encoding (CAE) to enhance viewer engagement and optimize costs[12](index=12&type=chunk)[13](index=13&type=chunk) - As of December 31, 2023, the company had **671 employees**, with **370** located outside the United States[42](index=42&type=chunk) [Risk Factors](index=21&type=section&id=Item%201A.%20Risk%20Factors) The company faces numerous risks including a history of net losses, substantial dependence on its single product Video Cloud, macroeconomic conditions, and operational challenges like reliance on key personnel and third-party cloud services - The company has a history of significant losses, reporting a consolidated net loss of **$22.9 million** for the year ended December 31, 2023, compared to a **$9.0 million** loss in 2022[47](index=47&type=chunk) - A substantial portion of revenue has historically come from a single product, **Video Cloud**, making the business vulnerable to market shifts or competition[48](index=48&type=chunk) - The company's success is dependent on retaining existing customers, as there is no obligation for them to renew annual subscriptions[49](index=49&type=chunk) - The business relies on third-party cloud computing services, primarily **Amazon Web Services (AWS)**, and any disruption could significantly harm operations[100](index=100&type=chunk)[101](index=101&type=chunk) - The company undertook restructuring actions, including a workforce reduction of approximately **10%** in April 2023, which may not achieve anticipated benefits and could cause operational disruptions[67](index=67&type=chunk)[69](index=69&type=chunk) - The business is subject to evolving government regulations on data privacy and cybersecurity, such as the EU's **GDPR** and California's **CCPA**, which could restrict practices or increase compliance costs[109](index=109&type=chunk)[110](index=110&type=chunk) - Chief Financial Officer (CFO), Robert Noreck, announced his intention to step down by May 31, 2024, presenting inherent risks to the business[66](index=66&type=chunk) [Unresolved Staff Comments](index=57&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports that there are no unresolved staff comments - Not applicable[136](index=136&type=chunk) [Cybersecurity](index=57&type=section&id=Item%201C.%20Cybersecurity) Brightcove's cybersecurity risk management program, directed by the VP of Business Security, involves internal assessments and monitoring, with Board oversight - The company's process for managing cybersecurity risks includes internal assessments, automated monitoring tools, and reviews of third-party vendor security practices[138](index=138&type=chunk) - The Board's audit committee oversees cybersecurity risks, receiving quarterly updates from management and reviewing reports on security initiatives and material incidents[142](index=142&type=chunk)[143](index=143&type=chunk) - The cybersecurity program is directed by the Vice President of Business Security, who has over **ten years of experience** and reports to the Chief Legal Officer[141](index=141&type=chunk) [Properties](index=59&type=section&id=Item%202.%20Properties) The company's corporate headquarters is in Boston, Massachusetts, under a ten-year lease, with additional global sales, marketing, and R&D offices - Corporate headquarters are located at 281 Summer Street, Boston, MA, under a **ten-year lease** for approximately **40,000 square feet**, which began in June 2022[144](index=144&type=chunk) - The company has international offices for sales and marketing in London, Tokyo, Sydney, and Seoul, and for research and development in India, Mexico, and Portugal[145](index=145&type=chunk) [Legal Proceedings](index=61&type=section&id=Item%203.%20Legal%20Proceedings) The company is occasionally involved in ordinary course litigation, but management does not expect material adverse effects on its financial position or operations - The company is party to litigation from time to time in the ordinary course of business, but management does not expect these proceedings to have a material adverse effect[146](index=146&type=chunk) [Mine Safety Disclosures](index=61&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[147](index=147&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=62&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Brightcove's common stock trades on NASDAQ under 'BCOV', has never paid dividends, and significantly underperformed market indices over the five years ending December 31, 2023 - The company's common stock trades on the **NASDAQ Global Market** under the symbol **"BCOV"**[148](index=148&type=chunk) - Brightcove has never paid cash dividends and does not expect to in the foreseeable future, intending to retain cash flow for business growth[149](index=149&type=chunk) Stock Performance Comparison (Investment of $100 on 1/2/2019) | Index | 1/2/2019 | 12/31/2023 | | :--- | :--- | :--- | | Brightcove Inc. | $100.0 | $36.7 | | NASDAQ Composite Index | $100.0 | $225.2 | | NASDAQ Computer & Data Processing Index | $100.0 | $330.7 | - There were no repurchases of common stock during the year ended December 31, 2023[152](index=152&type=chunk) [Reserved](index=63&type=section&id=Item%206.%20%5BReserved%5D) This item is not applicable - Not applicable[153](index=153&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=64&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In 2023, Brightcove's revenue decreased by **5%** to **$201.2 million**, net loss widened to **$22.9 million**, and cash from operations significantly decreased to **$4.5 million**, leading to restructuring efforts Financial Performance Summary (2022 vs. 2023) | Metric | 2023 (in millions) | 2022 (in millions) | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $201.2 | $211.0 | -4.6% | | Gross Profit | $123.8 | $133.9 | -7.5% | | Loss from Operations | $(21.6) | $(8.0) | +169.4% | | Net Loss | $(22.9) | $(9.0) | +154.3% | Key Business Metrics (at year-end) | Metric | 2023 | 2022 | | :--- | :--- | :--- | | Premium Customers | 2,028 | 2,235 | | Total Customers | 2,559 | 2,845 | | Net Revenue Retention Rate | 95% | 95% | | Recurring Dollar Retention Rate | 94% | 89% | | Total Backlog (in millions) | $183.0 | $153.3 | - The company initiated restructuring plans in March and April 2023 (reducing workforce by approximately **10%**) and January 2024 to reduce operating costs, incurring **$2.8 million** in related charges in 2023[162](index=162&type=chunk)[377](index=377&type=chunk)[378](index=378&type=chunk) Cash Flow Summary (in millions) | Cash Flow Activity | 2023 | 2022 | | :--- | :--- | :--- | | Provided by Operating Activities | $4.5 | $25.4 | | Used in Investing Activities | $(15.7) | $(37.8) | | Used in Financing Activities | $(2.0) | $(0.1) | - Cash and cash equivalents decreased to **$18.6 million** at the end of 2023 from **$31.9 million** at the end of 2022, primarily due to increased net loss and changes in working capital[207](index=207&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=85&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company is exposed to market risks from foreign currency exchange rates and interest rates, with a hypothetical **20%** unfavorable exchange rate movement increasing 2023 operating loss by **$2.2 million** Foreign Currency Exposure as Percentage of Total | Category | 2023 | 2022 | | :--- | :--- | :--- | | Revenues in foreign currency | 25% | 27% | | Expenses in foreign currency | 17% | 16% | - A sensitivity analysis indicates that a **20% unfavorable movement** in foreign currency exchange rates would have decreased 2023 revenues by **$9.9 million** and increased the operating loss by **$2.2 million**[227](index=227&type=chunk) - Interest rate risk exists from cash equivalents held in money market funds and potential interest expense on its line of credit, should it be drawn upon[228](index=228&type=chunk) [Financial Statements and Supplementary Data](index=89&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) The 2023 consolidated financial statements show total assets of **$216.1 million**, a net loss of **$22.9 million**, and a significant reduction in cash from operations, with revenue recognition for variable consideration identified as a Critical Audit Matter Consolidated Balance Sheet Summary (in thousands) | Account | Dec 31, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | Cash and cash equivalents | $18,615 | $31,894 | | Total current assets | $70,399 | $77,320 | | Goodwill | $74,859 | $74,859 | | Total assets | $216,107 | $227,813 | | Total current liabilities | $104,629 | $103,957 | | Total liabilities | $122,194 | $125,466 | | Total stockholders' equity | $93,913 | $102,347 | Consolidated Statement of Operations Summary (in thousands) | Account | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | | Total revenue | $201,187 | $211,008 | $211,093 | | Gross profit | $123,834 | $133,935 | $138,065 | | (Loss) income from operations | $(21,641) | $(8,032) | $7,574 | | Net (loss) income | $(22,886) | $(9,015) | $5,397 | | Diluted (loss) income per share | $(0.53) | $(0.22) | $0.13 | - The independent auditor's report identified **Revenue Recognition for variable consideration** related to usage-based fees as a Critical Audit Matter due to subjective management assumptions[232](index=232&type=chunk)[235](index=235&type=chunk)[236](index=236&type=chunk) - As of December 31, 2023, the company had federal net operating loss carryforwards of approximately **$154.0 million**, but a full valuation allowance against U.S. deferred tax assets indicates unlikelihood of realization[365](index=365&type=chunk)[366](index=366&type=chunk) - The company capitalized **$11.7 million** of internal-use software development costs in 2023, down from **$15.5 million** in 2022[287](index=287&type=chunk) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=136&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on accounting and financial disclosure - None[379](index=379&type=chunk) [Controls and Procedures](index=136&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and internal control over financial reporting were effective as of December 31, 2023, a conclusion affirmed by an unqualified auditor's opinion - Management concluded that the company's disclosure controls and procedures were effective as of December 31, 2023[380](index=380&type=chunk) - Management assessed internal control over financial reporting based on the **2013 COSO framework** and concluded it was effective as of December 31, 2023[382](index=382&type=chunk) - The independent auditor, **Ernst & Young LLP**, provided an unqualified opinion on the effectiveness of the company's internal control over financial reporting[383](index=383&type=chunk)[386](index=386&type=chunk) [Other Information](index=139&type=section&id=Item%209B.%20Other%20Information) No directors or officers adopted, terminated, or modified a Rule 10b5-1 trading arrangement or other non-Rule 10b5-1 trading agreement during the fourth quarter of 2023 - No directors or officers adopted, terminated, or modified a **Rule 10b5-1 trading plan** in the fourth quarter of 2023[392](index=392&type=chunk) [Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=139&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) This item is not applicable to the company - Not applicable[392](index=392&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=140&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information regarding directors, executive officers, and corporate governance is incorporated by reference from the company's 2024 Proxy Statement - This section is incorporated by reference from the company's **2024 Proxy Statement**[393](index=393&type=chunk) [Executive Compensation](index=140&type=section&id=Item%2011.%20Executive%20Compensation) Information regarding executive compensation is incorporated by reference from the company's 2024 Annual Meeting of Stockholders Proxy Statement - This section is incorporated by reference from the company's **2024 Proxy Statement**[394](index=394&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=140&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information regarding security ownership is incorporated by reference from the company's 2024 Annual Meeting of Stockholders Proxy Statement - This section is incorporated by reference from the company's **2024 Proxy Statement**[394](index=394&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=140&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information regarding certain relationships, related transactions, and director independence is incorporated by reference from the company's 2024 Proxy Statement - This section is incorporated by reference from the company's **2024 Proxy Statement**[395](index=395&type=chunk) [Principal Accountant Fees and Services](index=140&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information regarding principal accountant fees and services is incorporated by reference from the company's 2024 Annual Meeting of Stockholders Proxy Statement - This section is incorporated by reference from the company's **2024 Proxy Statement**[396](index=396&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=141&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists exhibits filed with the Form 10-K, with financial statements referenced under Item 8 and schedules omitted as information is included elsewhere - This section contains a list of all exhibits filed with or incorporated by reference into the **Form 10-K**[397](index=397&type=chunk) [Form 10-K Summary](index=147&type=section&id=Item%2016.%20Form%2010-K%20Summary) This item is not applicable - Not applicable[407](index=407&type=chunk)

Brightcove Announces Financial Results for Fourth Quarter and Fiscal Year 2023 BOSTON, MA (February 22, 2024) – Brightcove Inc. (Nasdaq: BCOV), the world's most trusted streaming technology company, today announced financial results for the fourth quarter and fiscal year ended December 31, 2023. "Our fourth quarter results were highlighted by a return to top-line growth, substantial adjusted EBITDA growth, our second consecutive quarter of double-digit adjusted EBITDA margins, and positive free cash flow. T ...

Q3’23 EARNINGS November 1, 2023 ...

Brightcove Inc. (NASDAQ:BCOV) Q3 2023 Earnings Conference Call November 1, 2023 5:00 PM ET Company Participants Marc DeBevoise – Chief Executive Officer Rob Noreck – Chief Financial Officer Conference Call Participants Steve Frankel – Rosenblatt Securities Mike Latimore – Northland Securities Max Michaelis – Lake Street Capital Operator Good afternoon, and welcome to Brightcove’s Third Quarter 2023 Earnings Presentation. Today, we’ll discuss the results announced in our press release issued after the market ...

Table of Contents lane UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended September 30, 2023 OR ☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission File Number: 001-35429 BRIGHTCOVE INC. (Exact name of registrant as specified in its charter) Delaware 20-1579162 (St ...

Q2’23 EARNINGS August 3, 2023 ©2023 Brightcove Inc. All Rights Reserved. TODAY’S PRESENTERS ...

Brightcove Inc. (NASDAQ:BCOV) Q2 2023 Earnings Conference Call August 2, 2023 5:00 PM ET Company Participants Marc DeBevoise - Chief Executive Officer Rob Noreck - Chief Financial Officer Conference Call Participants Steve Frankel - Rosenblatt Securities Mike Latimore - Northland Securities Eric Martinuzzi - Lake Street Capital Markets Operator Good afternoon and welcome to Brightcove’s Second Quarter 2023 Earnings Presentation. Today, we’ll discuss the results announced in our press release issued after th ...

Table of Contents ne UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended June 30, 2023 OR ☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission File Number: 001-35429 BRIGHTCOVE INC. (Exact name of registrant as specified in its charter) Delaware 20-1579162 (State or ...