☒ | Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
☐ | Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
Delaware | 20-1579162 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchangeon which registered | ||||
Common Stock, par value $0.001 per share | BCOV | The NASDAQ Global Market |
Large accelerated filer | ☐ | Accelerated filer | ☒ | ||||||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | ||||||
Emerging growth company | ☐ |
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our ability to achieve profitability; |
our competitive position and the effect of competition in our industry; |
our ability to retain and attract new customers; |
our ability to penetrate existing markets and develop new markets for our services; |
our ability to retain or hire qualified accounting and other personnel; |
our ability to successfully integrate acquired businesses, including the online video platform assets of Ooyala, Inc. and certain of its subsidiaries that we acquired during 2019; |
our ability to protect our intellectual property and operate our business without infringing upon the intellectual property rights of others; |
our ability to maintain the security and reliability of our systems; |
our estimates with regard to our future performance and total potential market opportunity; |
our expectations regarding the potential impact of the COVID-19 pandemic on our business, operations, and the markets in which we and our partners and customers operate; |
our estimates regarding our anticipated results of operations, future revenue, bookings growth, capital requirements and our needs for additional financing; and |
our goals and strategies, including those related to revenue and bookings growth. |
ITEM 1. | FINANCIAL STATEMENTS |
June 30, 2020 | December 31, 2019 | |||||||
(in thousands, except share and per share data) | ||||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 27,753 | $ | 22,759 | ||||
Accounts receivable, net of allowance of $651 and $904 at June 30, 2020 and December 31, 2019, respectively | 26,794 | 31,181 | ||||||
Prepaid expenses | 8,986 | 5,171 | ||||||
Other current assets | 8,340 | 6,713 | ||||||
Total current assets | 71,873 | 65,824 | ||||||
Property and equipment, net | 14,726 | 12,086 | ||||||
Operating lease right-of-use asset | 13,340 | 16,912 | ||||||
Intangible assets, net | 12,090 | 13,875 | ||||||
Goodwill | 60,902 | 60,902 | ||||||
Other assets | 3,524 | 3,268 | ||||||
Total assets | $ | 176,455 | $ | 172,867 | ||||
Liabilities and stockholders’ equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 11,283 | $ | 9,917 | ||||
Accrued expenses | 20,556 | 20,925 | ||||||
Operating lease liability | 5,687 | 6,174 | ||||||
Deferred revenue | 54,647 | 49,260 | ||||||
Total current liabilities | 92,173 | 86,276 | ||||||
Operating lease liability, net of current portion | 8,618 | 11,701 | ||||||
Debt | 5,000 | — | ||||||
Other liabilities | 1,100 | 767 | ||||||
Total liabilities | 106,891 | 98,744 | ||||||
Commitments and contingencies (Note 10) | ||||||||
Stockholders’ equity: | ||||||||
Undesignated preferred stock, $0.001 par value; 5,000,000 shares authorized; 0 shares issued | — | — | ||||||
Common stock, $0.001 par value; 100,000,000 shares authorized; 39,543,991 and 39,042,787 shares issued at June 30, 2020 and December 31, 2019, respectively | 39 | 39 | ||||||
Additional paid-in capital | 281,255 | 276,365 | ||||||
Treasury stock, at cost; 135,000 shares | (871 | ) | (871 | ) | ||||
Accumulated other comprehensive loss | (1,086 | ) | (785 | ) | ||||
Accumulated deficit | (209,773 | ) | (200,625 | ) | ||||
Total stockholders’ equity | 69,564 | 74,123 | ||||||
Total liabilities and stockholders’ equity | $ | 176,455 | $ | 172,867 | ||||
September 30, 2020 | December 31, 2019 | |||||||
(in thousands, except share and per share data) | ||||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 30,332 | $ | 22,759 | ||||
Accounts receivable, net of allowance of $654 and $904 at September 30, 2020 and December 31, 2019, respectively | 32,218 | 31,181 | ||||||
Prepaid expenses | 6,862 | 5,171 | ||||||
Other current assets | 10,932 | 6,713 | ||||||
Total current assets | 80,344 | 65,824 | ||||||
Property and equipment, net | 15,715 | 12,086 | ||||||
Operating lease right-of-use | 11,813 | 16,912 | ||||||
Intangible assets, net | 11,277 | 13,875 | ||||||
Goodwill | 60,902 | 60,902 | ||||||
Other assets | 4,505 | 3,268 | ||||||
Total assets | $ | 184,556 | $ | 172,867 | ||||
Liabilities and stockholders’ equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 9,405 | $ | 9,917 | ||||
Accrued expenses | 23,293 | 20,925 | ||||||
Operating lease liability | 5,592 | 6,174 | ||||||
Deferred revenue | 57,334 | 49,260 | ||||||
Total current liabilities | 95,624 | 86,276 | ||||||
Operating lease liability, net of current portion | 7,170 | 11,701 | ||||||
Debt | 5,000 | — | ||||||
Other liabilities | 2,672 | 767 | ||||||
Total liabilities | 110,466 | 98,744 | ||||||
Commitments and contingencies (Note 10) | ||||||||
Stockholders’ equity: | ||||||||
Undesignated preferred stock, $0.001 par value; 5,000,000 shares authorized; 0 shares issued | — | — | ||||||
Common stock, $0.001 par value; 100,000,000 shares authorized; 39,931,247 and 39,042,787 shares issued at September 30, 2020 and December 31, 2019, respectively | 40 | 39 | ||||||
Additional paid-in capital | 284,121 | 276,365 | ||||||
Treasury stock, at cost; 135,000 shares | (871 | ) | (871 | ) | ||||
Accumulated other comprehensive loss | (741 | ) | (785 | ) | ||||
Accumulated deficit | (208,459 | ) | (200,625 | ) | ||||
Total stockholders’ equity | 74,090 | 74,123 | ||||||
Total liabilities and stockholders’ equity | $ | 184,556 | $ | 172,867 | ||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
(in thousands, except share and per share data) | ||||||||||||||||
Revenue: | ||||||||||||||||
Subscription and support revenue | $ | 45,617 | $ | 44,891 | $ | 90,275 | $ | 83,768 | ||||||||
Professional services and other revenue | 2,309 | 2,691 | $ | 4,304 | 5,650 | |||||||||||
Total revenue | 47,926 | 47,582 | 94,579 | 89,418 | ||||||||||||
Cost of revenue: | ||||||||||||||||
Cost of subscription and support revenue | 17,807 | 19,381 | 34,555 | 33,551 | ||||||||||||
Cost of professional services and other revenue | 2,092 | 2,228 | 3,986 | 4,804 | ||||||||||||
Total cost of revenue | 19,899 | 21,609 | 38,541 | 38,355 | ||||||||||||
Gross profit | 28,027 | 25,973 | 56,038 | 51,063 | ||||||||||||
Operating expenses: | ||||||||||||||||
Research and development | 9,131 | 7,629 | 17,984 | 15,023 | ||||||||||||
Sales and marketing | 13,383 | 16,827 | 27,557 | 31,083 | ||||||||||||
General and administrative | 6,407 | 5,979 | 12,939 | 11,240 | ||||||||||||
Merger-related | 259 | 2,620 | 5,768 | 5,552 | ||||||||||||
Total operating expenses | 29,180 | 33,055 | 64,248 | 62,898 | ||||||||||||
Loss from operations | (1,153 | ) | (7,082 | ) | (8,210 | ) | (11,835 | ) | ||||||||
Other (expense) income, net | (27 | ) | 19 | (495 | ) | (36 | ) | |||||||||
Loss before income taxes | (1,180 | ) | (7,063 | ) | (8,705 | ) | (11,871 | ) | ||||||||
Provision for income taxes | 115 | 175 | 443 | 350 | ||||||||||||
Net loss | $ | (1,295 | ) | $ | (7,238 | ) | $ | (9,148 | ) | $ | (12,221 | ) | ||||
Net loss per share - basic and diluted | $ | (0.03 | ) | $ | (0.19 | ) | $ | (0.23 | ) | $ | (0.33 | ) | ||||
Weighted-average number of common shares used in computing net loss per share | 39,291,649 | 37,966,207 | 39,136,394 | 37,322,646 | ||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
(in thousands, except share and per share data) | ||||||||||||||||
Revenue: | ||||||||||||||||
Subscription and support revenue | $ | 46,338 | $ | 45,424 | $ | 136,613 | $ | 129,192 | ||||||||
Professional services and other revenue | 2,746 | 2,010 | $ | 7,050 | 7,660 | |||||||||||
Total revenue | 49,084 | 47,434 | 143,663 | 136,852 | ||||||||||||
Cost of revenue: | ||||||||||||||||
Cost of subscription and support revenue | 15,735 | 16,686 | 50,290 | 50,237 | ||||||||||||
Cost of professional services and other revenue | 2,363 | 1,628 | 6,349 | 6,432 | ||||||||||||
Total cost of revenue | 18,098 | 18,314 | 56,639 | 56,669 | ||||||||||||
Gross profit | 30,986 | 29,120 | 87,024 | 80,183 | ||||||||||||
Operating expenses: | ||||||||||||||||
Research and development | 8,215 | 8,127 | 26,199 | 23,150 | ||||||||||||
Sales and marketing | 14,813 | 14,567 | 42,370 | 45,650 | ||||||||||||
General and administrative | 6,694 | 6,245 | 19,633 | 17,485 | ||||||||||||
Merger-related | — | 2,539 | 5,768 | 8,091 | ||||||||||||
Total operating expenses | 29,722 | 31,478 | 93,970 | 94,376 | ||||||||||||
Income (loss) from operations | 1,264 | (2,358 | ) | (6,946 | ) | (14,193 | ) | |||||||||
Other income (expense), net | 204 | (441 | ) | (291 | ) | (477 | ) | |||||||||
Income (loss) before income taxes | 1,468 | (2,799 | ) | (7,237 | ) | (14,670 | ) | |||||||||
Provision for income taxes | 154 | 171 | 597 | 521 | ||||||||||||
Net income ( loss) | $ | 1,314 | $ | (2,970 | ) | $ | (7,834 | ) | $ | (15,191 | ) | |||||
Net income (loss) per share—basic and diluted | ||||||||||||||||
Basic | $ | 0.03 | $ | (0.08 | ) | $ | (0.20 | ) | $ | (0.40 | ) | |||||
Diluted | $ | 0.03 | $ | (0.08 | ) | $ | (0.20 | ) | $ | (0.40 | ) | |||||
Weighted-average shares—basic and diluted | ||||||||||||||||
Basic | 39,682,337 | 38,564,314 | 39,319,703 | 37,738,739 | ||||||||||||
Diluted | 40,645,982 | 38,564,314 | 39,319,703 | 37,738,739 | ||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
(in thousands) | ||||||||||||||||
Net loss | $ | (1,295 | ) | $ | (7,238 | ) | $ | (9,148 | ) | $ | (12,221 | ) | ||||
Other comprehensive income: | ||||||||||||||||
Foreign currency translation adjustments | 158 | 39 | ( 301 | ) | 60 | |||||||||||
Comprehensive loss | $ | (1,137 | ) | $ | (7,199 | ) | $ | (9,449 | ) | $ | (12,161 | ) | ||||
Three Months Ended September 30, | Nine Months September 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
(in thousands) | ||||||||||||||||
Net income ( loss) | $ | 1,314 | $ | (2,970 | ) | $ | (7,834 | ) | $ | (15,191 | ) | |||||
Other comprehensive income: | ||||||||||||||||
Foreign currency translation adjustments | 345 | (134 | ) | 44 | (74 | ) | ||||||||||
Comprehensive income (loss) | $ | 1,659 | $ | (3,104 | ) | $ | (7,790 | ) | $ | (15,265 | ) | |||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
(in thousands, except share data) | ||||||||||||||||
Shares of common stock issued | ||||||||||||||||
Balance, beginning of period | 39,105,853 | 36,908,051 | 39,042,787 | 36,752,469 | ||||||||||||
Common stock issued upon acquisition | — | 1,056,763 | — | 1,056,763 | ||||||||||||
Issuance of common stock upon exercise of stock options and pursuant to restricted stock units | 438,138 | 255,029 | 501,204 | 410,611 | ||||||||||||
Balance, end of period | 39,543,991 | 38,219,843 | 39,543,991 | 38,219,843 | ||||||||||||
Shares of treasury stock | ||||||||||||||||
Balance, beginning of period | (135,000 | ) | (135,000 | ) | (135,000 | ) | (135,000 | ) | ||||||||
Balance, end of period | (135,000 | ) | (135,000 | ) | (135,000 | ) | (135,000 | ) | ||||||||
Par value of common stock issued | ||||||||||||||||
Balance, beginning of period | $ | 39 | $ | 37 | $ | 39 | $ | 37 | ||||||||
Common stock issued upon acquisition | — | 1 | — | 1 | ||||||||||||
Issuance of common stock upon exercise of stock options and pursuant to restricted stock units | — | — | — | — | ||||||||||||
Balance, end of period | $ | 39 | $ | 38 | $ | 39 | $ | 38 | ||||||||
Value of treasury stock | ||||||||||||||||
Balance, beginning of period | $ | (871 | ) | $ | (871 | ) | $ | (871 | ) | $ | (871 | ) | ||||
Balance, end of period | $ | (871 | ) | $ | (871 | ) | $ | (871 | ) | $ | (871 | ) | ||||
Additional paid-in capital | ||||||||||||||||
Balance, beginning of period | $ | 279,114 | $ | 253,244 | $ | 276,365 | $ | 251,122 | ||||||||
Common stock issued upon acquisition | — | 8,865 | — | 8,865 | ||||||||||||
Withholding tax on restricted stock units vesting | (396 | ) | — | (396 | ) | — | ||||||||||
Issuance of common stock upon exercise of stock options and pursuant to restricted stock units | 358 | 1,218 | 394 | 1,843 | ||||||||||||
Stock-based compensation expense | 2,179 | 1,438 | 4,892 | 2,935 | ||||||||||||
Balance, end of period | $ | 281,255 | $ | 264,765 | $ | 281,255 | $ | 264,765 | ||||||||
Accumulated deficit | ||||||||||||||||
Balance, beginning of period | $ | (208,478 | ) | $ | (183,705 | ) | $ | (200,625 | ) | $ | (178,722 | ) | ||||
Net loss | (1,295 | ) | (7,238 | ) | (9,148 | ) | (12,221 | ) | ||||||||
Balance, end of period | $ | (209,773 | ) | $ | (190,943 | ) | $ | (209,773 | ) | $ | (190,943 | ) | ||||
Accumulated other comprehensive loss | ||||||||||||||||
Balance, beginning of period | $ | (1,244 | ) | $ | (931 | ) | $ | (785 | ) | $ | (952 | ) | ||||
Foreign currency translation adjustment | 158 | 39 | (301 | ) | 60 | |||||||||||
Balance, end of period | $ | (1,086 | ) | $ | (892 | ) | $ | (1,086 | ) | $ | (892 | ) | ||||
Total stockholders’ equity | $ | 69,564 | $ | 72,097 | $ | 69,564 | $ | 72,097 | ||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
(in thousands, except share data) | ||||||||||||||||
Shares of common stock issued | ||||||||||||||||
Balance, beginning of period | 39,543,991 | 38,219,843 | 39,042,787 | 36,752,469 | ||||||||||||
Common stock issued upon acquisition | — | 230,083 | — | 1,286,846 | ||||||||||||
Issuance of common stock upon exercise of stock options and pursuant to restricted stock units | 387,256 | 472,562 | 888,460 | 883,173 | ||||||||||||
Balance, end of period | 39,931,247 | 38,922,488 | 39,931,247 | 38,922,488 | ||||||||||||
Shares of treasury stock | ||||||||||||||||
Balance, beginning of period | (135,000 | ) | (135,000 | ) | (135,000 | ) | (135,000 | ) | ||||||||
Balance, end of period | (135,000 | ) | (135,000 | ) | (135,000 | ) | (135,000 | ) | ||||||||
Par value of common stock issued | ||||||||||||||||
Balance, beginning of period | $ | 39 | $ | 38 | $ | 39 | $ | 37 | ||||||||
Common stock issued upon acquisition | — | 1 | — | 1 | ||||||||||||
Issuance of common stock upon exercise of stock options and pursuant to restricted stock units | 1 | — | 1 | 1 | ||||||||||||
Balance, end of period | $ | 40 | $ | 39 | $ | 40 | $ | 39 | ||||||||
Value of treasury stock | ||||||||||||||||
Balance, beginning of period | $ | (871 | ) | $ | (871 | ) | $ | (871 | ) | $ | (871 | ) | ||||
Balance, end of period | $ | (871 | ) | $ | (871 | ) | $ | (871 | ) | $ | (871 | ) | ||||
Additional paid-in capital | ||||||||||||||||
Balance, beginning of period | $ | 281,255 | $ | 264,765 | $ | 276,365 | $ | 251,122 | ||||||||
Common stock issued upon acquisition | — | 3,383 | — | 12,249 | ||||||||||||
Withholding tax on restricted stock units vesting | (18 | ) | (32 | ) | (415 | ) | (32 | ) | ||||||||
Issuance of common stock upon exercise of stock options and pursuant to restricted stock units | 812 | 1,372 | 1,207 | 3,215 | ||||||||||||
Stock-based compensation expense | 2,072 | 1,805 | 6,964 | 4,739 | ||||||||||||
Balance, end of period | $ | 284,121 | $ | 271,293 | $ | 284,121 | $ | 271,293 | ||||||||
Accumulated deficit | ||||||||||||||||
Balance, beginning of period | $ | (209,773 | ) | $ | (190,943 | ) | $ | (200,625 | ) | $ | (178,722 | ) | ||||
Net income (loss ) | 1,314 | (2,970 | ) | (7,834 | ) | (15,191 | ) | |||||||||
Balance, end of period | $ | (208,459 | ) | $ | (193,913 | ) | $ | (208,459 | ) | $ | (193,913 | ) | ||||
Accumulated other comprehensive loss | ||||||||||||||||
Balance, beginning of period | $ | (1,086 | ) | $ | (892 | ) | $ | (785 | ) | $ | (952 | ) | ||||
Foreign currency translation adjustment | 345 | (134 | ) | 44 | (74 | ) | ||||||||||
Balance, end of period | $ | (741 | ) | $ | (1,026 | ) | $ | (741 | ) | $ | (1,026 | ) | ||||
Total stockholders’ equity | $ | 74,090 | $ | 75,522 | $ | 74,090 | $ | 75,522 | ||||||||
Six Months Ended June 30, | ||||||||
2020 | 2019 | |||||||
(in thousands) | ||||||||
Operating activities | ||||||||
Net loss | $ | (9,148 | ) | $ | (12,221 | ) | ||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||||||||
Depreciation and amortization | 4,357 | 3,934 | ||||||
Stock-based compensation | 4,716 | 2,783 | ||||||
Provision for reserves on accounts receivable | 401 | 253 | ||||||
Changes in assets and liabilities: | ||||||||
Accounts receivable | 4,055 | (7,688 | ) | |||||
Prepaid expenses and other current assets | (5,357 | ) | (1,892 | ) | ||||
Other assets | (300 | ) | (435 | ) | ||||
Accounts payable | 2,038 | 58 | ||||||
Accrued expenses | (577 | ) | 7,924 | |||||
Operating leases | 3 | (162 | ) | |||||
Deferred revenue | 5,112 | 3,565 | ||||||
Net cash provided by (used in) operating activities | 5,300 | (3,881 | ) | |||||
Investing activities | ||||||||
Purchases of property and equipment | (1,197 | ) | (401 | ) | ||||
Cash paid for acquisition, net of cash acquired | — | (3,300 | ) | |||||
Capitalized internal-use software costs | (3,839 | ) | (2,372 | ) | ||||
Net cash used in investing activities | (5,036 | ) | (6,073 | ) | ||||
Financing activities | ||||||||
Proceeds from exercise of stock options | 394 | 1,843 | ||||||
Proceeds from debt | 10,000 | — | ||||||
Debt paydown | (5,000 | ) | — | |||||
Other financing activities | (429 | ) | (117 | ) | ||||
Net cash provided by financing activities | 4,965 | 1,726 | ||||||
Effect of exchange rate changes on cash and cash equivalents | (235 | ) | 131 | |||||
Net increase (decrease) in cash and cash equivalents | 4,994 | (8,097 | ) | |||||
Cash and cash equivalents at beginning of period | 22,759 | 29,306 | ||||||
Cash and cash equivalents at end of period | $ | 27,753 | $ | 21,209 | ||||
Supplemental disclosure of non-cash investing activities | ||||||||
Fair value of shares issued for acquisition of a business | $ | — | $ | 8,866 | ||||
Supplemental disclosure of cash flow information | ||||||||
Cash paid for operating lease liabilities | $ | 3,561 | $ | 3,718 | ||||
Nine Months Ended September 30, | ||||||||
2020 | 2019 | |||||||
(in thousands) | ||||||||
Operating activities | ||||||||
Net loss | $ | (7,834 | ) | $ | (15,191 | ) | ||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 6,497 | 6,150 | ||||||
Stock-based compensation | 6,724 | 4,504 | ||||||
Provision for reserves on accounts receivable | 461 | 559 | ||||||
Changes in assets and liabilities: | ||||||||
Accounts receivable | (1,433 | ) | (5,477 | ) | ||||
Prepaid expenses and other current assets | (6,414 | ) | 642 | |||||
Other assets | (1,247 | ) | (503 | ) | ||||
Accounts payable | 104 | 2,635 | ||||||
Accrued expenses | 3,410 | 4,510 | ||||||
Operating leases | (13 | ) | (261 | ) | ||||
Deferred revenue | 8,667 | 3,061 | ||||||
Net cash provided by operating activities | 8,922 | 629 | ||||||
Investing activities | ||||||||
Purchases of property and equipment | (2,163 | ) | (600 | ) | ||||
Cash paid for acquisition, net of cash acquired | — | (5,402 | ) | |||||
Capitalized internal-use software costs | (5,108 | ) | (4,264 | ) | ||||
Net cash used in investing activities | (7,271 | ) | (10,266 | ) | ||||
Financing activities | ||||||||
Proceeds from exercise of stock options | 1,207 | 3,215 | ||||||
Proceeds from debt | 10,000 | — | ||||||
Debt paydown | (5,000 | ) | — | |||||
Other financing activities | (448 | ) | (208 | ) | ||||
Net cash provided by financing activities | 5,759 | 3,007 | ||||||
Effect of exchange rate changes on cash and cash equivalents | 163 | (27 | ) | |||||
Net increase (decrease) in cash and cash equivalents | 7,573 | (6,657 | ) | |||||
Cash and cash equivalents at beginning of period | 22,759 | 29,306 | ||||||
Cash and cash equivalents at end of period | $ | 30,332 | $ | 22,649 | ||||
Supplemental disclosure of non-cash investing activities | ||||||||
Fair value of shares issued for acquisition of a business | $ | — | $ | 12,250 | ||||
Supplemental disclosure of cash flow information | ||||||||
Cash paid for operating lease liabilities | $ | 5,087 | $ | 5,547 | ||||
Accounts Receivable, net | Contract Assets (current) | Deferred Revenue (current) | Deferred Revenue (non-current) | Total Deferred Revenue | ||||||||||||||||
Balance at December 31, 2019 | $ | 31,181 | $ | 1,871 | $ | 49,260 | $ | 299 | $ | 49,559 | ||||||||||
Balance at June 30, 2020 | 26,794 | 2,017 | 54,647 | 92 | 54,739 |
Accounts Receivable, net | Contract Assets (current) | Deferred Revenue (current) | Deferred Revenue (non- current) | Total Deferred Revenue | ||||||||||||||||
Balance at December 31, 2019 | $ | 31,181 | $ | 1,871 | $ | 49,260 | $ | 299 | $ | 49,559 | ||||||||||
Balance at September 30, 2020 | 32,218 | 2,338 | 57,334 | 1,082 | 58,416 |
June 30, 2020 | ||||||||||||||||
Description | Contracted Maturity | Cost | Fair Market Value | Balance Per Balance Sheet | ||||||||||||
Cash | Demand | $ | 27,712 | $ | 27,712 | $ | 27,712 | |||||||||
Money market funds | Demand | 41 | 41 | 41 | ||||||||||||
Total cash and cash equivalents | $ | 27,753 | $ | 27,753 | $ | 27,753 | ||||||||||
September 30, 2020 | ||||||||||||||||
Description | Contracted Maturity | Cost | Fair Market Value | Balance Per Balance Sheet | ||||||||||||
Cash | Demand | $ | 30,291 | $ | 30,291 | $ | 30,291 | |||||||||
Money market funds | Demand | 41 | 41 | 41 | ||||||||||||
Total cash and cash equivalents | $ | 30,332 | $ | 30,332 | $ | 30,332 | ||||||||||
December 31, 2019 | ||||||||||||||||
Description | Contracted Maturity | Cost | Fair Market Value | Balance Per Balance Sheet | ||||||||||||
Cash | Demand | $ | 22,718 | $ | 22,718 | $ | 22,718 | |||||||||
Money market funds | Demand | 41 | 41 | 41 | ||||||||||||
Total cash and cash equivalents | $ | 22,759 | $ | 22,759 | $ | 22,759 | ||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Options outstanding | 2,372 | 2,624 | 2,372 | 2,624 | ||||||||||||
Restricted stock units outstanding | 3,580 | 3,187 | 3,580 | 3,187 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Options | 1,570 | 2,522 | 2,234 | 2,522 | ||||||||||||
Restricted stock units | 155 | 3,244 | 3,264 | 3,244 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Expected life in years | 6.3 | 6.1 | 6.2 | 6.2 | ||||||||||||
Risk-free interest rate | 0.62 | % | 2.38 | % | 1.03 | % | 2.42 | % | ||||||||
Volatility | 48 | % | 44 | % | 46 | % | 44 | % | ||||||||
Dividend yield | — | — | — | — |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Expected life in years | 5.9 | 6.2 | 6.1 | 6.2 | ||||||||||||
Risk-free interest rate | 0.33 | % | 1.85 | % | 0.76 | % | 2.30 | % | ||||||||
Volatility | 47 | % | 44 | % | 46 | % | 44 | % | ||||||||
Dividend yield | — | — | — | — |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Stock-based compensation: | ||||||||||||||||
Cost of subscription and support revenue | $ | 123 | $ | 95 | $ | 313 | $ | 214 | ||||||||
Cost of professional services and other revenue | 90 | 68 | 170 | 152 | ||||||||||||
Research and development | 257 | 269 | 697 | 532 | ||||||||||||
Sales and marketing | 761 | 351 | 1,672 | 809 | ||||||||||||
General and administrative | 867 | 576 | 1,864 | 1,076 | ||||||||||||
$ | 2,098 | $ | 1,359 | $ | 4,716 | $ | 2,783 | |||||||||
Three Months Ended September 30, | Nine September 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Stock-based compensation: | ||||||||||||||||
Cost of subscription and support revenue | $ | 139 | $ | 127 | $ | 452 | $ | 341 | ||||||||
Cost of professional services and other revenue | 63 | 71 | 233 | 223 | ||||||||||||
Research and development | 142 | 323 | 839 | 855 | ||||||||||||
Sales and marketing | 768 | 602 | 2,440 | 1,411 | ||||||||||||
General and administrative | 896 | 598 | 2,760 | 1,674 | ||||||||||||
$ | 2,008 | $ | 1,721 | $ | 6,724 | $ | 4,504 | |||||||||
Number of Shares | Weighted-Average Exercise Price | Weighted-Average Remaining Contractual Term (In Years) | Aggregate Intrinsic Value (1) | |||||||||||||
Outstanding at December 31, 2019 | 2,479,423 | $ | 8.96 | |||||||||||||
Granted | 79,920 | 7.76 | ||||||||||||||
Exercised | (61,096 | ) | 6.48 | $ | 108 | |||||||||||
Canceled | (126,007 | ) | 9.00 | |||||||||||||
Outstanding at June 30, 2020 | 2,372,240 | $ | 8.99 | 6.81 | $ | 852 | ||||||||||
Exercisable at June 30, 2020 | 1,368,007 | $ | 8.70 | 5.67 | $ | 740 | ||||||||||
Number of Shares | Weighted-Average Exercise Price | Weighted-Average Remaining Contractual Term (In Years) | Aggregate Intrinsic Value (1) | |||||||||||||
Outstanding at December 31, 2019 | 2,479,423 | $ | 8.96 | |||||||||||||
Granted | 129,584 | 9.04 | ||||||||||||||
Exercised | (164,188 | ) | 7.36 | $ | 439 | |||||||||||
Canceled | (210,326 | ) | 9.07 | |||||||||||||
Outstanding at September 30, 2020 | 2,234,493 | $ | 9.08 | 6.73 | $ | 3,064 | ||||||||||
Exercisable at September 30, 2020 | 1,332,255 | $ | 8.81 | 5.75 | $ | 2,227 | ||||||||||
(1) | The aggregate intrinsic value was calculated based on the positive difference between the fair value of the Company’s common stock on |
Shares | Weighted Average Grant Date Fair Value | |||||||
Unvested at December 31, 2019 | 3,626,364 | $ | 9.03 | |||||
Granted | 746,295 | 7.95 | ||||||
Vested and issued | (438,484 | ) | 8.92 | |||||
Canceled | (353,932 | ) | 8.52 | |||||
Unvested at June 30, 2020 | 3,580,243 | $ | 8.81 | |||||
Shares | Weighted Average Grant Date Fair Value | |||||||
Unvested at December 31, 2019 | 3,626,364 | $ | 9.03 | |||||
Granted | 902,303 | 8.53 | ||||||
Vested and issued | (718,763 | ) | 9.21 | |||||
Canceled | (546,196 | ) | 8.52 | |||||
Unvested at September 30, 2020 | 3,263,708 | $ | 8.84 | |||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Revenue: | ||||||||||||||||
North America | $ | 26,039 | $ | 25,708 | $ | 51,038 | $ | 47,521 | ||||||||
Europe | 8,427 | 8,167 | 16,888 | 14,636 | ||||||||||||
Japan | 5,554 | 5,146 | 11,656 | 11,334 | ||||||||||||
Asia Pacific | 7,714 | 8,091 | 14,584 | 15,363 | ||||||||||||
Other | 192 | 470 | 413 | 564 | ||||||||||||
Total revenue | $ | 47,926 | $ | 47,582 | $ | 94,579 | $ | 89,418 | ||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Revenue: | ||||||||||||||||
North America | $ | 27,515 | $ | 24,904 | $ | 78,553 | $ | 72,425 | ||||||||
Europe | 8,435 | 8,178 | 25,323 | 22,814 | ||||||||||||
Japan | 5,688 | 5,391 | 17,344 | 16,725 | ||||||||||||
Asia Pacific | 7,211 | 8,646 | 21,795 | 24,009 | ||||||||||||
Other | 235 | 315 | 648 | 879 | ||||||||||||
Total revenue | $ | 49,084 | $ | 47,434 | $ | 143,663 | $ | 136,852 | ||||||||
Allowance for Credit Losses | Allowance for Credit Losses | |||||||
(in thousands) | (in thousands) | |||||||
Balance as of December 31, 2019 | $ | 904 | $ | 904 | ||||
Current provision for credit losses | 310 | 332 | ||||||
Write-offs against allowance | (563 | ) | (582 | ) | ||||
Recoveries | — | 0 | ||||||
Balance as of June 30, 2020 | $ | 651 | ||||||
Balance as of September 30, 2020 | $ | 654 | ||||||
ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
Six Months Ended June 30, | ||||||||
2020 | 2019 | |||||||
Customers (at period end) | ||||||||
Premium | 2,279 | 2,350 | ||||||
Volume | 1,144 | 1,411 | ||||||
Total customers (at period end) | 3,423 | 3,761 | ||||||
Recurring dollar retention rate | 84 | % | 90 | % | ||||
Average annual subscription revenue per premium customer, excluding Starter edition customers (in thousands) | $ | 86.4 | $ | 80.8 | ||||
Average annual subscription revenue per premium customer for Starter edition customers only (in thousands) | $ | 4.5 | $ | 4.5 | ||||
Total backlog, excluding professional services engagements (in millions) | $ | 136.9 | $ | 134.2 | ||||
Total backlog to be recognized over next 12 months, excluding professional services engagements (in millions) | $ | 108.8 | $ | 107.6 |
Nine Months Ended September 30, | ||||||||
2020 | 2019 | |||||||
Customers (at period end) | ||||||||
Premium | 2,267 | 2,362 | ||||||
Volume | 1,114 | 1,358 | ||||||
Total customers (at period end) | 3,381 | 3,720 | ||||||
Recurring dollar retention rate | 88 | % | 89 | % | ||||
Average annual subscription revenue per premium customer, excluding Starter edition customers (in thousands) | $ | 87.3 | $ | 82.0 | ||||
Average annual subscription revenue per premium customer for Starter edition customers only (in thousands) | $ | 4.5 | $ | 4.6 | ||||
Total backlog, excluding professional services engagements (in millions) | $ | 144.2 | $ | 125.7 | ||||
Total backlog to be recognized over next 12 months, excluding professional services engagements (in millions) | $ | 109.6 | $ | 100.6 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
(in thousands, except share and per share data) | ||||||||||||||||
Revenue: | ||||||||||||||||
Subscription and support revenue | $ | 45,617 | $ | 44,891 | $ | 90,275 | $ | 83,768 | ||||||||
Professional services and other revenue | 2,309 | 2,691 | 4,304 | 5,650 | ||||||||||||
Total revenue | 47,926 | 47,582 | 94,579 | 89,418 | ||||||||||||
Cost of revenue: | ||||||||||||||||
Cost of subscription and support revenue | 17,807 | 19,381 | 34,555 | 33,551 | ||||||||||||
Cost of professional services and other revenue | 2,092 | 2,228 | 3,986 | 4,804 | ||||||||||||
Total cost of revenue | 19,899 | 21,609 | 38,541 | 38,355 | ||||||||||||
Gross profit | 28,027 | 25,973 | 56,038 | 51,063 | ||||||||||||
Operating expenses: | ||||||||||||||||
Research and development | 9,131 | 7,629 | 17,984 | 15,023 | ||||||||||||
Sales and marketing | 13,383 | 16,827 | 27,557 | 31,083 | ||||||||||||
General and administrative | 6,407 | 5,979 | 12,939 | 11,240 | ||||||||||||
Merger-related | 259 | 2,620 | 5,768 | 5,552 | ||||||||||||
Total operating expenses | 29,180 | 33,055 | 64,248 | 62,898 | ||||||||||||
Loss from operations | (1,153 | ) | (7,082 | ) | (8,210 | ) | (11,835 | ) | ||||||||
Other (expense) income, net | (27 | ) | 19 | (495 | ) | (36 | ) | |||||||||
Loss before income taxes | (1,180 | ) | (7,063 | ) | (8,705 | ) | (11,871 | ) | ||||||||
Provision for income taxes | 115 | 175 | 443 | 350 | ||||||||||||
Net loss | $ | (1,295 | ) | $ | (7,238 | ) | $ | (9,148 | ) | $ | (12,221 | ) | ||||
Net loss per share - basic and diluted | $ | (0.03 | ) | $ | (0.19 | ) | $ | (0.23 | ) | $ | (0.33 | ) | ||||
Weighted-average number of common shares used in computing net loss per share | 39,291,649 | 37,966,207 | 39,136,394 | 37,322,646 | ||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
(in thousands, except share and per share data) | ||||||||||||||||
Revenue: | ||||||||||||||||
Subscription and support revenue | $ | 46,338 | $ | 45,424 | $ | 136,613 | $ | 129,192 | ||||||||
Professional services and other revenue | 2,746 | 2,010 | 7,050 | 7,660 | ||||||||||||
Total revenue | 49,084 | 47,434 | 143,663 | 136,852 | ||||||||||||
Cost of revenue: | ||||||||||||||||
Cost of subscription and support revenue | 15,735 | 16,686 | 50,290 | 50,237 | ||||||||||||
Cost of professional services and other revenue | 2,363 | 1,628 | 6,349 | 6,432 | ||||||||||||
Total cost of revenue | 18,098 | 18,314 | 56,639 | 56,669 | ||||||||||||
Gross profit | 30,986 | 29,120 | 87,024 | 80,183 | ||||||||||||
Operating expenses: | ||||||||||||||||
Research and development | 8,215 | 8,127 | 26,199 | 23,150 | ||||||||||||
Sales and marketing | 14,813 | 14,567 | 42,370 | 45,650 | ||||||||||||
General and administrative | 6,694 | 6,245 | 19,633 | 17,485 | ||||||||||||
Merger-related | — | 2,539 | 5,768 | 8,091 | ||||||||||||
Total operating expenses | 29,722 | 31,478 | 93,970 | 94,376 | ||||||||||||
Loss from operations | 1,264 | (2,358 | ) | (6,946 | ) | (14,193 | ) | |||||||||
Other income (expense), net | 204 | (441 | ) | (291 | ) | (477 | ) | |||||||||
Loss before income taxes | 1,468 | (2,799 | ) | (7,237 | ) | (14,670 | ) | |||||||||
Provision for income taxes | 154 | 171 | 597 | 521 | ||||||||||||
Net income (loss) | $ | 1,314 | $ | (2,970 | ) | $ | (7,834 | ) | $ | (15,191 | ) | |||||
Net income (loss) per share—basic and diluted | ||||||||||||||||
Basic | $ | 0.03 | $ | (0.08 | ) | $ | (0.20 | ) | $ | (0.40 | ) | |||||
Diluted | $ | 0.03 | $ | (0.08 | ) | $ | (0.20 | ) | $ | (0.40 | ) | |||||
Weighted-average shares—basic and diluted | ||||||||||||||||
Basic | 39,682,337 | 38,564,314 | 39,319,703 | 37,738,739 | ||||||||||||
Diluted | 40,645,982 | 38,564,314 | 39,319,703 | 37,738,739 |
Three Months Ended June 30, | ||||||||||||||||||||||||
2020 | 2019 | Change | ||||||||||||||||||||||
Revenue by Product Line | Amount | Percentage of Revenue | Amount | Percentage of Revenue | Amount | % | ||||||||||||||||||
(in thousands, except percentages) | ||||||||||||||||||||||||
Premium | $ | 46,941 | 98 | % | $ | 46,627 | 98 | % | $ | 314 | 1 | % | ||||||||||||
Volume | 985 | 2 | 955 | 2 | 30 | 3 | ||||||||||||||||||
Total | $ | 47,926 | 100 | % | $ | 47,582 | 100 | % | $ | 344 | 1 | % | ||||||||||||
Three Months Ended September 30, | ||||||||||||||||||||||||
2020 | 2019 | Change | ||||||||||||||||||||||
Revenue by Product Line | Amount | Percentage of Revenue | Amount | Percentage of Revenue | Amount | % | ||||||||||||||||||
(in thousands, except percentages) | ||||||||||||||||||||||||
Premium | $ | 48,175 | 98 | % | $ | 46,462 | 98 | % | $ | 1,713 | 4 | % | ||||||||||||
Volume | 909 | 2 | 972 | 2 | (63 | ) | (6 | ) | ||||||||||||||||
Total | $ | 49,084 | 100 | % | $ | 47,434 | 100 | % | $ | 1,650 | 3 | % | ||||||||||||
Three Months Ended June 30, | ||||||||||||||||||||||||
2020 | 2019 | Change | ||||||||||||||||||||||
Revenue by Type | Amount | Percentage of Revenue | Amount | Percentage of Revenue | Amount | % | ||||||||||||||||||
(in thousands, except percentages) | ||||||||||||||||||||||||
Subscription and support | $ | 45,617 | 95 | % | $ | 44,891 | 94 | % | $ | 726 | 2 | % | ||||||||||||
Professional services and other | 2,309 | 5 | 2,691 | 6 | (382 | ) | (14 | ) | ||||||||||||||||
Total | $ | 47,926 | 100 | % | $ | 47,582 | 100 | % | $ | 344 | 1 | % | ||||||||||||
Three Months Ended September 30, | ||||||||||||||||||||||||
2020 | 2019 | Change | ||||||||||||||||||||||
Revenue by Type | Amount | Percentage of Revenue | Amount | Percentage of Revenue | Amount | % | ||||||||||||||||||
(in thousands, except percentages) | ||||||||||||||||||||||||
Subscription and support | $ | 46,338 | 94 | % | $ | 45,424 | 96 | % | $ | 914 | 2 | % | ||||||||||||
Professional services and other | 2,746 | 6 | 2,010 | 4 | 736 | 37 | ||||||||||||||||||
Total | $ | 49,084 | 100 | % | $ | 47,434 | 100 | % | $ | 1,650 | 3 | % | ||||||||||||
Three Months Ended June 30, | ||||||||||||||||||||||||
2020 | 2019 | Change | ||||||||||||||||||||||
Revenue by Geography | Amount | Percentage of Revenue | Amount | Percentage of Revenue | Amount | % | ||||||||||||||||||
(in thousands, except percentages) | ||||||||||||||||||||||||
North America | $ | 26,039 | 54 | % | $ | 25,708 | 54 | % | $ | 331 | 1 | % | ||||||||||||
Europe | 8,427 | 18 | 8,167 | 17 | 260 | 3 | ||||||||||||||||||
Japan | 5,554 | 12 | 5,146 | 11 | 408 | 8 | ||||||||||||||||||
Asia Pacific | 7,714 | 16 | 8,091 | 17 | (377 | ) | (5 | ) | ||||||||||||||||
Other | 192 | — | 470 | 1 | (278 | ) | (59 | ) | ||||||||||||||||
International subtotal | 21,887 | 46 | 21,874 | 46 | 13 | 0 | ||||||||||||||||||
Total | $ | 47,926 | 100 | % | $ | 47,582 | 100 | % | $ | 344 | 1 | % | ||||||||||||
Three Months Ended September 30, | ||||||||||||||||||||||||
2020 | 2019 | Change | ||||||||||||||||||||||
Revenue by Geography | Amount | Percentage of Revenue | Amount | Percentage of Revenue | Amount | % | ||||||||||||||||||
(in thousands, except percentages) | ||||||||||||||||||||||||
North America | $ | 27,515 | 56 | % | $ | 24,904 | 53 | % | $ | 2,611 | 10 | % | ||||||||||||
Europe | 8,435 | 17 | 8,178 | 17 | 257 | 3 | ||||||||||||||||||
Japan | 5,688 | 12 | 5,391 | 11 | 297 | 6 | ||||||||||||||||||
Asia Pacific | 7,211 | 15 | 8,646 | 18 | (1,435 | ) | (17 | ) | ||||||||||||||||
Other | 235 | — | 315 | 1 | (80 | ) | (25 | ) | ||||||||||||||||
International subtotal | 21,569 | 44 | 22,530 | 47 | (961 | ) | (4 | ) | ||||||||||||||||
Total | $ | 49,084 | 100 | % | $ | 47,434 | 100 | % | $ | 1,650 | 3 | % | ||||||||||||
Three Months Ended June 30, | ||||||||||||||||||||||||
2020 | 2019 | Change | ||||||||||||||||||||||
Cost of Revenue | Amount | Percentage of Related Revenue | Amount | Percentage of Related Revenue | Amount | % | ||||||||||||||||||
(in thousands, except percentages) | ||||||||||||||||||||||||
Subscription and support | $ | 17,807 | 39 | % | $ | 19,381 | 43 | % | $ | (1,574 | ) | (8 | )% | |||||||||||
Professional services and other | 2,092 | 91 | 2,228 | 83 | (136 | ) | (6 | ) | ||||||||||||||||
Total | $ | 19,899 | 42 | % | $ | 21,609 | 45 | % | $ | (1,710 | ) | (8 | )% | |||||||||||
Three Months Ended September 30, | ||||||||||||||||||||||||
2020 | 2019 | Change | ||||||||||||||||||||||
Cost of Revenue | Amount | Percentage of Related Revenue | Amount | Percentage of Related Revenue | Amount | % | ||||||||||||||||||
(in thousands, except percentages) | ||||||||||||||||||||||||
Subscription and support | $ | 15,735 | 34 | % | $ | 16,686 | 37 | % | $ | (951 | ) | (6 | )% | |||||||||||
Professional services and other | 2,363 | 86 | 1,628 | 81 | 735 | 45 | ||||||||||||||||||
Total | $ | 18,098 | 37 | % | $ | 18,314 | 39 | % | $ | (216 | ) | (1 | )% | |||||||||||
Three Months Ended June 30, | ||||||||||||||||||||||||
2020 | 2019 | Change | ||||||||||||||||||||||
Gross Profit | Amount | Percentage of Related Revenue | Amount | Percentage of Related Revenue | Amount | % | ||||||||||||||||||
(in thousands, except percentages) | ||||||||||||||||||||||||
Subscription and support | $ | 27,810 | 61 | % | $ | 25,510 | 57 | % | $ | 2,300 | 9 | % | ||||||||||||
Professional services and other | 217 | 9 | 463 | 17 | (246 | ) | (53 | )% | ||||||||||||||||
Total | $ | 28,027 | 58 | % | $ | 25,973 | 55 | % | $ | 2,054 | 8 | % | ||||||||||||
Three Months Ended September 30, | ||||||||||||||||||||||||
2020 | 2019 | Change | ||||||||||||||||||||||
Gross Profit | Amount | Percentage of Related Revenue | Amount | Percentage of Related Revenue | Amount | % | ||||||||||||||||||
(in thousands, except percentages) | ||||||||||||||||||||||||
Subscription and support | $ | 30,603 | 66 | % | $ | 28,738 | 63 | % | $ | 1,865 | 6 | % | ||||||||||||
Professional services and other | 383 | 14 | 382 | 19 | 1 | 0 | % | |||||||||||||||||
Total | $ | 30,986 | 63 | % | $ | 29,120 | 61 | % | $ | 1,866 | 6 | % | ||||||||||||
Three Months Ended June 30, | ||||||||||||||||||||||||
2020 | 2019 | Change | ||||||||||||||||||||||
Operating Expenses | Amount | Percentage of Revenue | Amount | Percentage of Revenue | Amount | % | ||||||||||||||||||
(in thousands, except percentages) | ||||||||||||||||||||||||
Research and development | $ | 9,131 | 19 | % | $ | 7,629 | 16 | % | $ | 1,502 | 20 | % | ||||||||||||
Sales and marketing | 13,383 | 28 | 16,827 | 35 | (3,444 | ) | (20 | ) | ||||||||||||||||
General and administrative | 6,407 | 13 | 5,979 | 13 | 428 | 7 | ||||||||||||||||||
Merger-related | 259 | 1 | 2,620 | 6 | (2,361 | ) | (90 | ) | ||||||||||||||||
Total | $ | 29,180 | 61 | % | $ | 33,055 | 69 | % | $ | (3,875 | ) | (12 | )% | |||||||||||
Three Months Ended September 30, | ||||||||||||||||||||||||
2020 | 2019 | Change | ||||||||||||||||||||||
Operating Expenses | Amount | Percentage of Revenue | Amount | Percentage of Revenue | Amount | % | ||||||||||||||||||
(in thousands, except percentages) | ||||||||||||||||||||||||
Research and development | $ | 8,215 | 17 | % | $ | 8,127 | 17 | % | $ | 88 | 1 | % | ||||||||||||
Sales and marketing | 14,813 | 30 | 14,567 | 31 | 246 | 2 | ||||||||||||||||||
General and administrative | 6,694 | 14 | 6,245 | 13 | 449 | 7 | ||||||||||||||||||
Merger-related | — | — | 2,539 | 5 | (2,539 | ) | (100 | ) | ||||||||||||||||
Total | $ | 29,722 | 61 | % | $ | 31,478 | 66 | % | $ | (1,756 | ) | (6 | )% | |||||||||||
Six Months Ended June 30, | ||||||||||||||||||||||||
2020 | 2019 | Change | ||||||||||||||||||||||
Revenue by Product Line | Amount | Percentage of Revenue | Amount | Percentage of Revenue | Amount | % | ||||||||||||||||||
(in thousands, except percentages) | ||||||||||||||||||||||||
Premium | $ | 92,728 | 98 | % | $ | 87,508 | 98 | % | $ | 5,220 | 6 | % | ||||||||||||
Volume | 1,851 | 2 | 1,910 | 2 | (59 | ) | (3 | ) | ||||||||||||||||
Total | $ | 94,579 | 100 | % | $ | 89,418 | 100 | % | $ | 5,161 | 6 | % | ||||||||||||
Nine Months Ended September 30, | ||||||||||||||||||||||||
2020 | 2019 | Change | ||||||||||||||||||||||
Revenue by Product Line | Amount | Percentage of Revenue | Amount | Percentage of Revenue | Amount | % | ||||||||||||||||||
(in thousands, except percentages) | ||||||||||||||||||||||||
Premium | $ | 140,904 | 98 | % | $ | 133,970 | 98 | % | $ | 6,934 | 5 | % | ||||||||||||
Volume | 2,759 | 2 | 2,882 | 2 | (123 | ) | (4 | ) | ||||||||||||||||
Total | $ | 143,663 | 100 | % | $ | 136,852 | 100 | % | $ | 6,811 | 5 | % | ||||||||||||
Six Months Ended June 30, | ||||||||||||||||||||||||
2020 | 2019 | Change | ||||||||||||||||||||||
Revenue by Type | Amount | Percentage of Revenue | Amount | Percentage of Revenue | Amount | % | ||||||||||||||||||
(in thousands, except percentages) | ||||||||||||||||||||||||
Subscription and support | $ | 90,275 | 95 | % | $ | 83,768 | 94 | % | $ | 6,507 | 8 | % | ||||||||||||
Professional services and other | 4,304 | 5 | 5,650 | 6 | (1,346 | ) | (24 | ) | ||||||||||||||||
Total | $ | 94,579 | 100 | % | $ | 89,418 | 100 | % | $ | 5,161 | 6 | % | ||||||||||||
Nine Months Ended September 30, | ||||||||||||||||||||||||
2020 | 2019 | Change | ||||||||||||||||||||||
Revenue by Type | Amount | Percentage of Revenue | Amount | Percentage of Revenue | Amount | % | ||||||||||||||||||
(in thousands, except percentages) | ||||||||||||||||||||||||
Subscription and support | $ | 136,613 | 95 | % | $ | 129,192 | 94 | % | $ | 7,421 | 6 | % | ||||||||||||
Professional services and other | 7,050 | 5 | 7,660 | 6 | (610 | ) | (8 | ) | ||||||||||||||||
�� | ||||||||||||||||||||||||
Total | $ | 143,663 | 100 | % | $ | 136,852 | 100 | % | $ | 6,811 | 5 | % | ||||||||||||
Six Months Ended June 30, | ||||||||||||||||||||||||
2020 | 2019 | Change | ||||||||||||||||||||||
Revenue by Geography | Amount | Percentage of Revenue | Amount | Percentage of Revenue | Amount | % | ||||||||||||||||||
(in thousands, except percentages) | ||||||||||||||||||||||||
North America | $ | 51,038 | 54 | % | $ | 47,521 | 53 | % | $ | 3,517 | 7 | % | ||||||||||||
Europe | 16,888 | 18 | 14,636 | 16 | 2,252 | 15 | ||||||||||||||||||
Japan | 11,656 | 12 | 11,334 | 13 | 322 | 3 | ||||||||||||||||||
Asia Pacific | 14,584 | 16 | 15,363 | 17 | (779 | ) | (5 | ) | ||||||||||||||||
Other | 413 | — | 564 | 1 | (151 | ) | (27 | ) | ||||||||||||||||
International subtotal | 43,541 | 46 | 41,897 | 47 | 1,644 | 4 | ||||||||||||||||||
Total | $ | 94,579 | 100 | % | $ | 89,418 | 100 | % | $ | 5,161 | 6 | % | ||||||||||||
Nine Months Ended September 30, | ||||||||||||||||||||||||
2020 | 2019 | Change | ||||||||||||||||||||||
Revenue by Geography | Amount | Percentage of Revenue | Amount | Percentage of Revenue | Amount | % | ||||||||||||||||||
(in thousands, except percentages) | ||||||||||||||||||||||||
North America | $ | 78,553 | 55 | % | $ | 72,425 | 53 | % | $ | 6,128 | 8 | % | ||||||||||||
Europe | 25,323 | 18 | 22,814 | 17 | 2,509 | 11 | ||||||||||||||||||
Japan | 17,344 | 12 | 16,725 | 12 | 619 | 4 | ||||||||||||||||||
Asia Pacific | 21,795 | 15 | 24,009 | 17 | (2,214 | ) | (9 | ) | ||||||||||||||||
Other | 648 | — | 879 | 1 | (231 | ) | (26 | ) | ||||||||||||||||
International subtotal | 65,110 | 45 | 64,427 | 47 | 683 | 1 | ||||||||||||||||||
Total | $ | 143,663 | 100 | % | $ | 136,852 | 100 | % | $ | 6,811 | 5 | % | ||||||||||||
Six Months Ended June 30, | ||||||||||||||||||||||||
2020 | 2019 | Change | ||||||||||||||||||||||
Cost of Revenue | Amount | Percentage of Related Revenue | Amount | Percentage of Related Revenue | Amount | % | ||||||||||||||||||
(in thousands, except percentages) | ||||||||||||||||||||||||
Subscription and support | $ | 34,555 | 38 | % | $ | 33,551 | 40 | % | $ | 1,004 | 3 | % | ||||||||||||
Professional services and other | 3,986 | 93 | 4,804 | 85 | (818 | ) | (17 | ) | ||||||||||||||||
Total | $ | 38,541 | 41 | % | $ | 38,355 | 43 | % | $ | 186 | 0 | % | ||||||||||||
Nine Months Ended September 30, | ||||||||||||||||||||||||
2020 | 2019 | Change | ||||||||||||||||||||||
Cost of Revenue | Amount | Percentage of Related Revenue | Amount | Percentage of Related Revenue | Amount | % | ||||||||||||||||||
(in thousands, except percentages) | ||||||||||||||||||||||||
Subscription and support | $ | 50,290 | 37 | % | $ | 50,237 | 39 | % | $ | 53 | 0 | % | ||||||||||||
Professional services and other | 6,349 | 90 | 6,432 | 84 | (83 | ) | (1 | ) | ||||||||||||||||
Total | $ | 56,639 | 39 | % | $ | 56,669 | 41 | % | $ | (30 | ) | 0 | % | |||||||||||
Six Months Ended June 30, | ||||||||||||||||||||||||
2020 | 2019 | Change | ||||||||||||||||||||||
Gross Profit | Amount | Percentage of Related Revenue | Amount | Percentage of Related Revenue | Amount | % | ||||||||||||||||||
(in thousands, except percentages) | ||||||||||||||||||||||||
Subscription and support | $ | 55,720 | 62 | % | $ | 50,217 | 60 | % | $ | 5,503 | 11 | % | ||||||||||||
Professional services and other | 318 | 7 | 846 | 15 | (528 | ) | (62 | ) | ||||||||||||||||
Total | $ | 56,038 | 59 | % | $ | 51,063 | 57 | % | $ | 4,975 | 10 | % | ||||||||||||
Nine Months Ended September 30, | ||||||||||||||||||||||||
2020 | 2019 | Change | ||||||||||||||||||||||
Gross Profit | Amount | Percentage of Related Revenue | Amount | Percentage of Related Revenue | Amount | % | ||||||||||||||||||
(in thousands, except percentages) | ||||||||||||||||||||||||
Subscription and support | $ | 86,323 | 63 | % | $ | 78,955 | 61 | % | $ | 7,368 | 9 | % | ||||||||||||
Professional services and other | 701 | 10 | 1,228 | 16 | (527 | ) | (43 | ) | ||||||||||||||||
Total | $ | 87,024 | 61 | % | $ | 80,183 | 59 | % | $ | 6,841 | 9 | % | ||||||||||||
Six Months Ended June 30, | ||||||||||||||||||||||||
2020 | 2019 | Change | ||||||||||||||||||||||
Operating Expenses | Amount | Percentage of Revenue | Amount | Percentage of Revenue | Amount | % | ||||||||||||||||||
(in thousands, except percentages) | ||||||||||||||||||||||||
Research and development | $ | 17,984 | 19 | % | $ | 15,023 | 17 | % | $ | 2,961 | 20 | % | ||||||||||||
Sales and marketing | 27,557 | 29 | 31,083 | 35 | (3,526 | ) | (11 | ) | ||||||||||||||||
General and administrative | 12,939 | 14 | 11,240 | 13 | 1,699 | 15 | ||||||||||||||||||
Merger-related | 5,768 | 6 | 5,552 | 6 | 216 | 4 | ||||||||||||||||||
Total | $ | 64,248 | 68 | % | $ | 62,898 | 70 | % | $ | 1,350 | 2 | % | ||||||||||||
Nine Months Ended September 30, | ||||||||||||||||||||||||
2020 | 2019 | Change | ||||||||||||||||||||||
Operating Expenses | Amount | Percentage of Revenue | Amount | Percentage of Revenue | Amount | % | ||||||||||||||||||
(in thousands, except percentages) | ||||||||||||||||||||||||
Research and development | $ | 26,199 | 18 | % | $ | 23,150 | 17 | % | $ | 3,049 | 13 | % | ||||||||||||
Sales and marketing | 42,370 | 29 | 45,650 | 33 | (3,280 | ) | (7 | ) | ||||||||||||||||
General and administrative | 19,633 | 14 | 17,485 | 13 | 2,148 | 12 | ||||||||||||||||||
Merger-related | 5,768 | 4 | 8,091 | 6 | (2,323 | ) | (29 | ) | ||||||||||||||||
Total | $ | 93,970 | 65 | % | $ | 94,376 | 69 | % | $ | (406 | ) | 0 | % | |||||||||||
Six Months Ended June 30, | ||||||||
Condensed Consolidated Statements of Cash Flow Data | 2020 | 2019 | ||||||
(in thousands) | ||||||||
Cash flows provided by (used in) operating activities | 5,300 | (3,881 | ) | |||||
Cash flows used in investing activities | (5,036 | ) | (6,073 | ) | ||||
Cash flows provided by financing activities | 4,965 | 1,726 |
Nine Months Ended September 30, | ||||||||
Condensed Consolidated Statements of Cash Flow Data | 2020 | 2019 | ||||||
(in thousands) | ||||||||
Cash flows provided by operating activities | 8,922 | 629 | ||||||
Cash flows used in investing activities | (7,271 | ) | (10,266 | ) | ||||
Cash flows provided by financing activities | 5,759 | 3,007 |
ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
Three Months Ended June 30, | Three Months Ended September 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Revenues generated in locations outside the United States | 50 | % | 50 | % | 48 | % | 51 | % | ||||||||
Revenues in currencies other than the United States dollar (1) | 30 | % | 29 | % | 29 | % | 30 | % | ||||||||
Expenses in currencies other than the United States dollar (1) | 15 | % | 15 | % | 17 | % | 18 | % | ||||||||
Six Months Ended June 30, | ||||||||||||||||
2020 | 2019 | |||||||||||||||
Revenues generated in locations outside the United States | 50 | % | 50 | % | ||||||||||||
Revenues in currencies other than the United States dollar (1) | 30 | % | 32 | % | ||||||||||||
Expenses in currencies other than the United States dollar (1) | 15 | % | 14 | % |
Nine Months Ended September 30, | ||||||||
2020 | 2019 | |||||||
Revenues generated in locations outside the United States | 50 | % | 51 | % | ||||
Revenues in currencies other than the United States dollar (1) | 30 | % | 31 | % | ||||
Expenses in currencies other than the United States dollar (1) | 16 | % | 16 | % |
(1) | Percentage of revenues and expenses denominated in foreign currency for the three and |
Three Months Ended September 30, 2020 | Three Months Ended September 30, 2019 | |||||||||||||||
Revenues | Expenses | Revenues | Expenses | |||||||||||||
Euro | 8 | % | 1 | % | 7 | % | 1 | % | ||||||||
British pound | 6 | 6 | 8 | 6 | ||||||||||||
Japanese yen | 12 | 3 | 11 | 3 | ||||||||||||
Other | 3 | 7 | 4 | 8 | ||||||||||||
Total | 29 | % | 17 | % | 30 | % | 18 | % |
Three Months Ended June 30, 2020 | Three Months Ended June 30, 2019 | |||||||||||||||
Revenues | Expenses | Revenues | Expenses | |||||||||||||
Euro | 8 | % | 1 | % | 7 | % | 2 | % | ||||||||
British pound | 6 | 5 | 7 | 5 | ||||||||||||
Japanese Yen | 12 | 2 | 11 | 3 | ||||||||||||
Other | 4 | 7 | 4 | 5 | ||||||||||||
Total | 30 | % | 15 | % | 29 | % | 15 | % | ||||||||
Six Months Ended June 30, 2020 | Six Months Ended June 30, 2019 | |||||||||||||||
Revenues | Expenses | Revenues | Expenses | |||||||||||||
Euro | 8 | % | 1 | % | 7 | % | 1 | % | ||||||||
British pound | 6 | 5 | 7 | 5 | ||||||||||||
Japanese Yen | 12 | 2 | 13 | 4 | ||||||||||||
Other | 4 | 7 | 5 | 4 | ||||||||||||
Total | 30 | % | 15 | % | 32 | % | 14 | % |
Nine Months Ended September 30, 2020 | Nine Months Ended September 30, 2019 | |||||||||||||||
Revenues | Expenses | Revenues | Expenses | |||||||||||||
Euro | 8 | % | 1 | % | 7 | % | 1 | % | ||||||||
British pound | 6 | 6 | 7 | 6 | ||||||||||||
Japanese yen | 12 | 3 | 12 | 3 | ||||||||||||
Other | 4 | 6 | 5 | 6 | ||||||||||||
Total | 30 | % | 16 | % | 31 | % | 16 | % |
ITEM 4. | CONTROLS AND PROCEDURES |
ITEM 1. | LEGAL PROCEEDINGS |
ITEM 1A. | RISK FACTORS |
ITEM 5. | OTHER INFORMATION |
ITEM 6. | EXHIBITS |
Exhibits | ||
3.1 (1) | Eleventh Amended and Restated Certificate of Incorporation. | |
3.2 (2) | Amended and Restated By-Laws. | |
4.1 (3) | Form of Common Stock certificate of the Registrant. | |
31.1 | Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of | |
31.2 | Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
32.1^ | Certification of Chief Executive Officer and Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
101.INS | ||
101.SCH | XBRL | |
101.CAL | XBRL | |
101.DEF | XBRL | |
101.LAB | XBRL | |
101.PRE | XBRL | |
Cover Page Interactive Data File (formatted as Inline XBRL |
(1) | Filed as Exhibit 3.2 to Amendment No. 5 to Registrant’s Registration Statement on Form S-1 filed with the Securities and Exchange Commission on February 6, 2012, and incorporated herein by reference. |
(2) | Filed as Exhibit 3.3 to Amendment No. 5 to Registrant’s Registration Statement on Form S-1 filed with the Securities and Exchange Commission on February 6, 2012, and incorporated herein by reference. |
(3) | Filed as Exhibit 4.1 to Amendment No. 5 to Registrant’s Registration Statement on Form S-1 filed with the Securities and Exchange Commission on February 6, 2012, and incorporated herein by reference. |
^ | Furnished herewith. |
BRIGHTCOVE INC. | ||||||
(Registrant) | ||||||
Date: | By: | /s/ Jeff Ray | ||||
Jeff Ray | ||||||
Chief Executive Officer | ||||||
(Principal Executive Officer) | ||||||
Date: | By: | /s/ Robert Noreck | ||||
Robert Noreck | ||||||
Chief Financial Officer | ||||||
(Principal Financial Officer) |