Brightcove(US:BCOV)2024-11-12 22:06Revenue Performance - Revenue decreased from $151.0 million in the nine months ended September 30, 2023 to $149.7 million in the nine months ended September 30, 2024, primarily due to a decrease in subscription and support revenue[61]. - Total revenue decreased by 2%, or $1.0 million, to $49.95 million for the three months ended September 30, 2024, compared to $50.98 million for the same period in 2023[90]. - Subscription and support revenue decreased by 1%, or $0.6 million, primarily due to a decrease in revenue from premium offerings, which fell by $1.0 million, or 2%[90]. - Total revenue for the nine months ended September 30, 2024, was approximately $149.678 million, a decrease of $1.353 million, or 1%, compared to the same period in 2023[108]. - Total revenue for North America increased by $1.1 million, or 1%, while revenue outside North America decreased by $2.4 million, or 4% for the nine months ended September 30, 2024[112]. Customer Metrics - Total customers decreased from 2,618 in September 2023 to 2,392 in September 2024, with premium customers declining from 2,077 to 1,923[64]. - Average annual subscription revenue per premium customer increased from $95.9 thousand in September 2023 to $101.4 thousand in September 2024[65]. - Revenue from premium offerings decreased by $1.3 million, or 1%, for the nine months ended September 30, 2024, due to a decrease in the number of customers and average revenue per premium customer[107]. Financial Ratios and Retention - Net revenue retention rate for the three months ended September 30, 2024 was 93.6%, up from 92.7% in the same period of 2023[65]. - Gross profit for subscription and support remained stable at 65%, while total gross profit percentage was 62% for the nine months ended September 30, 2024[115]. Operating Expenses - Total operating expenses increased by $0.4 million to $34.38 million in the three months ended September 30, 2024, compared to $34.01 million in the same period in 2023[92]. - Research and development expenses remained consistent at $8.742 million, or 18% of revenue, for the three months ended September 30, 2024[100]. - Sales and marketing expenses decreased by $0.8 million, or 5%, for the three months ended September 30, 2024, primarily due to a decrease in employee-related expenses[101]. - General and administrative expenses increased by $1.3 million, or 16%, for the three months ended September 30, 2024, primarily due to increases in employee-related costs[102]. Cash Flow and Liquidity - Cash provided by operating activities was $9.5 million, with a net loss of $6.6 million adjusted for non-cash items[123]. - Cash flows used in investing activities totaled $1.0 million, primarily due to $6.0 million gain from the sale of assets[124]. - As of September 30, 2024, the company had $14.0 million in cash and cash equivalents held by subsidiaries in international locations[120]. - The company believes existing cash and cash equivalents will be sufficient to meet working capital and capital expenditures for at least the next 12 months[133]. International Revenue - Revenue derived from customers outside North America was 40% for the three months ended September 30, 2024, compared to 39% in the same period of 2023[63]. - The company expects the percentage of total net revenue derived from outside North America to increase in future periods as it continues to expand international operations[82]. - Revenues generated in locations outside the United States accounted for 45% for the three months ended September 30, 2024, compared to 44% in the same period of 2023[137]. Currency and Inflation Impact - A 20% unfavorable movement in foreign currency exchange rates could have decreased revenues by $7.1 million and operating income by $1.7 million for the nine months ended September 30, 2024[141]. - The U.S. dollar strengthened by approximately 3% against the British pound and weakened by approximately 8.5% against the Japanese Yen during the nine months ended September 30, 2024[141]. - The company does not believe inflation has had a material effect on its business but acknowledges potential risks if costs rise significantly[143].