Brightcove(US:BCOV)2022-04-27 21:23Financial Performance - The net loss for the three months ended March 31, 2022, was $1.6 million, compared to a net income of $5.1 million for the same period in 2021[39]. - Total revenue for the three months ended March 31, 2022, was $53.4 million, a decrease of 2.6% compared to $54.8 million for the same period in 2021[55]. - Revenue recognized from deferred revenue for the three months ended March 31, 2022, was approximately $32.8 million, an increase from $31.2 million in the same period of 2021[33]. - Revenue from North America was $29.5 million, down from $30.4 million year-over-year, while revenue from Europe increased to $9.1 million from $8.9 million[55]. Cash and Cash Equivalents - As of March 31, 2022, the total cash and cash equivalents amounted to $26.7 million, a decrease from $45.7 million as of December 31, 2021[36][37]. - The company had cash and cash equivalents totaling $26.7 million at March 31, 2022, primarily held for working capital purposes[139]. Accounts Receivable and Credit Losses - The balance of accounts receivable, net, increased from $29.9 million as of December 31, 2021, to $34.0 million as of March 31, 2022[32]. - The allowance for credit losses increased from $353,000 as of December 31, 2021, to $379,000 as of March 31, 2022[26]. Stock-Based Compensation - Stock-based compensation expense for the three months ended March 31, 2022, totaled $3.5 million, compared to $2.3 million for the same period in 2021[44]. - As of March 31, 2022, the Company had $39 million of unrecognized stock-based compensation expense expected to be recognized over a weighted-average period of 2.80 years[43]. Acquisition and Related Costs - The company acquired Wicket Labs on February 1, 2022, for a total purchase price of approximately $17.0 million, including $2.0 million in common stock and $13.2 million in cash[57]. - The acquisition of Wicket Labs is expected to enhance the company's offerings in target market segments, contributing to strategic and synergistic benefits[59]. - The company incurred $0.6 million in merger-related costs associated with the Wicket Acquisition during the three months ended March 31, 2022[59]. - The identifiable intangible assets acquired from Wicket Labs were valued at $4.4 million, with developed technology accounting for $4.2 million of that amount[61]. Compliance and Financial Obligations - The company maintained compliance with all applicable covenants under its $30.0 million Line of Credit as of March 31, 2022, with no borrowings outstanding[53]. - The company did not incur interest expense in the three months ended March 31, 2022, and a 10% unfavorable movement in interest rates would not have a material effect on interest expense[139]. Foreign Currency Exposure - The company has significant foreign currency exposures, primarily to the euro and British pound, due to higher local currency denominated expenses in European operations[137]. - A 10% unfavorable movement in foreign currency exchange rates would decrease revenues by $1.6 million, decrease expenses by $900, and decrease operating income by $700 for the three months ended March 31, 2022[138]. Inflation and Economic Conditions - The company does not believe inflation has had a material effect on its business, but significant inflationary pressures on costs could harm its operating results and financial condition[140]. Other Expenses - The company recorded $1.1 million of expense related to the retirement of the CEO in the first quarter of 2022[27].