Brightcove(US:BCOV)2019-04-25 01:44Financial Data and Key Metrics Changes - Total revenue for Q1 2019 was $41.8 million, up 2% year-over-year and above the high-end of guidance [7][19] - Adjusted EBITDA was $1.3 million, exceeding guidance and reflecting commitment to profitable growth [7][23] - Subscription and support revenue was $38.9 million, while professional services revenue was $3 million [19] - 12-month subscription backlog increased to $92.1 million, up $5.6 million or 6% year-over-year [20][21] - Gross profit was $25.1 million with a GAAP operating loss of $4.8 million and loss per share of $0.14 [22] Business Line Data and Key Metrics Changes - Renewal rates remained strong at 95%, indicating effective customer service and product value [6] - Annualized revenue per premium customer was $78,000, up 4% year-over-year [21] - Subscription and support revenue represented approximately 93% of total revenue, with a gross margin of 55% [23] Market Data and Key Metrics Changes - 52% of revenue was generated in North America, while 48% was international, with Europe contributing 15% and Japan and Asia-Pac 33% [20] - The targeted market segments identified by IDC are expected to grow from $1.6 billion in 2016 to $4.2 billion by 2022, with a CAGR of 17% [8] Company Strategy and Development Direction - The company aims to deliver significant, consistent, and sustainable revenue growth and profitability through strategic initiatives [6] - Focus on timely product delivery has resulted in 100% of committed new product features delivered on time in Q1 [9] - The acquisition of Ooyala's online video platform business is expected to enhance market leadership and customer engagement [16][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strategic plan and the potential for breakout growth, with positive feedback from customers [18][47] - The company anticipates higher sales and marketing expenses in Q2 due to the PLAY user conference [25] - Future guidance includes revenue of $183 million to $186 million for the full year, with expectations for profitability improvements [26] Other Important Information - The acquisition of Ooyala was completed on April 1, 2019, for approximately $15 million [24] - The company is focused on creating specialized sales teams to enhance retention and new business generation [12] Q&A Session Summary Question: Can you provide insight on the margin profile for Ooyala? - Ooyala's margins are somewhat lower than Brightcove's due to their smaller scale, and margins may decrease slightly until a unified platform is established [29] Question: How did bookings shape up in Q1 and what are the expectations for Q2? - The company no longer discloses bookings but feels positive about the second half of the year, with a 6% year-over-year increase in 12-month backlog [34][35] Question: Is the VAR channel still a target for growth? - Yes, it remains a key growth strategy, but significant impact is not expected until 2020 [37] Question: What is the expected revenue contribution from Ooyala? - Approximately $14 million in revenue is expected from Ooyala, with a stable revenue stream anticipated [42] Question: Are there any particular features in demand among enterprise customers? - Demand for Live features is increasing as customers recognize its value [45]