☒ | 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 exchange on 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 | ☐ |
Page | |||||
4 | |||||
4 | |||||
4 | |||||
5 | |||||
6 | |||||
7 | |||||
8 | |||||
9 | |||||
15 | |||||
28 | |||||
30 | |||||
30 | |||||
30 | |||||
30 | |||||
31 | |||||
32 | |||||
ITEM 1. | FINANCIAL STATEMENTS |
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 | ||||
September 30, 2021 | December 31, 2020 | |||||||
(in thousands, except share and per share data) | ||||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 45,285 | $ | 37,472 | ||||
Accounts receivable, net of allowance of $443 and $648 at September 30, 2021 and December 31, 2020, respectively | 28,138 | 29,305 | ||||||
Prepaid expenses | 8,965 | 5,760 | ||||||
Other current assets | 11,411 | 12,978 | ||||||
Total current assets | 93,799 | 85,515 | ||||||
Property and equipment, net | 18,777 | 15,968 | ||||||
Operating lease right-of-use | 5,668 | 8,699 | ||||||
Intangible assets, net | 8,213 | 10,465 | ||||||
Goodwill | 60,902 | 60,902 | ||||||
Other assets | 6,491 | 5,254 | ||||||
Total assets | $ | 193,850 | $ | 186,803 | ||||
Liabilities and stockholders’ equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 11,007 | $ | 10,456 | ||||
Accrued expenses | 21,082 | 25,397 | ||||||
Operating lease liability | 2,176 | 4,346 | ||||||
Deferred revenue | 61,739 | 58,741 | ||||||
Total current liabilities | 96,004 | 98,940 | ||||||
Operating lease liability, net of current portion | 3,734 | 5,498 | ||||||
Other liabilities | 1,536 | 2,763 | ||||||
Total liabilities | $ | 101,274 | 107,201 | |||||
Commitments and contingencies (Note 8) | 0 | 0 | ||||||
Stockholders’ equity: | ||||||||
Undesignated preferred stock, $0.001 par value; 5,000,000 shares authorized; 0 shares issued | 0— | 0— | ||||||
Common stock, $0.001 par value; 100,000,000 shares authorized; 41,175,854 and 40,152,021 shares issued at September 30, 2021 and December 31, 2020, respectively | 41 | 40 | ||||||
Additional paid-in capital | 295,464 | 287,059 | ||||||
Treasury stock, at cost; 135,000 shares | (871 | ) | (871 | ) | ||||
Accumulated other comprehensive loss | (600 | ) | (188 | ) | ||||
Accumulated deficit | (201,458 | ) | (206,438 | ) | ||||
Total stockholders’ equity | 92,576 | 79,602 | ||||||
Total liabilities and stockholders’ equity | $ | 193,850 | $ | 186,803 | ||||
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 September 30, | Nine Months Ended September 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
(in thousands, except share and per share data) | ||||||||||||||||
Revenue: | ||||||||||||||||
Subscription and support revenue | $ | 49,226 | $ | 46,338 | $ | 148,667 | $ | 136,613 | ||||||||
Professional services and other revenue | 2,937 | 2,746 | 9,785 | 7,050 | ||||||||||||
Total revenue | 52,163 | 49,084 | 158,452 | 143,663 | ||||||||||||
Cost of revenue: | ||||||||||||||||
Cost of subscription and support revenue | 16,406 | 15,735 | 46,840 | 50,290 | ||||||||||||
Cost of professional services and other revenue | 2,247 | 2,363 | 8,205 | 6,349 | ||||||||||||
Total cost of revenue | 18,653 | 18,098 | 55,045 | 56,639 | ||||||||||||
Gross profit | 33,510 | 30,986 | 103,407 | 87,024 | ||||||||||||
Operating expenses: | ||||||||||||||||
Research and development | 7,902 | 8,215 | 24,041 | 26,199 | ||||||||||||
Sales and marketing | 18,451 | 14,813 | 52,730 | 42,370 | ||||||||||||
General and administrative | 7,345 | 6,694 | 21,822 | 19,633 | ||||||||||||
Merger-related | 45 | 0 | 300 | 5,768 | ||||||||||||
Other (benefit) expense | — | — | (1,965 | ) | — | |||||||||||
Total operating expenses | 33,743 | 29,722 | 96,928 | 93,970 | ||||||||||||
(Loss) income from operations | (233 | ) | 1,264 | 6,479 | (6,946 | ) | ||||||||||
Other (expense) income, net | (319 | ) | 204 | (937 | ) | (291 | ) | |||||||||
(Loss) income before income taxes | (552 | ) | 1,468 | 5,542 | (7,237 | ) | ||||||||||
Provision for income taxes | 468 | 154 | 562 | 597 | ||||||||||||
Net (loss) income | $ | (1,020 | ) | $ | 1,314 | $ | 4,980 | $ | (7,834 | ) | ||||||
Net (loss) income per share—basic and diluted | ||||||||||||||||
Basic | $ | (0.02 | ) | $ | 0.03 | $ | 0.12 | $ | (0.20 | ) | ||||||
Diluted | $ | (0.02 | ) | $ | 0.03 | $ | 0.12 | $ | (0.20 | ) | ||||||
Weighted-average shares—basic and diluted | ||||||||||||||||
Basic | 40,934,689 | 39,682,337 | 40,570,817 | 39,319,703 | ||||||||||||
Diluted | 40,934,689 | 40,645,982 | 42,237,438 | 39,319,703 |
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 September 30, | Nine Months Ended September 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
(in thousands) | ||||||||||||||||
Net (loss) income | $ | (1,020 | ) | $ | 1,314 | $ | 4,980 | $ | (7,834 | ) | ||||||
Other comprehensive income: | ||||||||||||||||
Foreign currency translation adjustments | (238 | ) | 345 | (412 | ) | 44 | ||||||||||
Comprehensive (loss) income | $ | (1,258 | ) | $ | 1,659 | $ | 4,568 | $ | (7,790 | ) | ||||||
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 | ||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
(in thousands, except share data) | ||||||||||||||||
Shares of common stock issued | ||||||||||||||||
Balance, beginning of period | 40,946,572 | 39,543,991 | 40,152,021 | 39,042,787 | ||||||||||||
Issuance of common stock upon exercise of stock options and pursuant to restricted stock units | 229,282 | 387,256 | 1,023,833 | 888,460 | ||||||||||||
Balance, end of period | 41,175,854 | 39,931,247 | 41,175,854 | 39,931,247 | ||||||||||||
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 | $ | 41 | $ | 39 | $ | 41 | $ | 39 | ||||||||
Issuance of common stock upon exercise of stock options | 0 | 0 | 0 | 0 | ||||||||||||
Issuance of common stock upon exercise of stock options and pursuant to restricted stock units | 0 | 1 | 0 | 1 | ||||||||||||
Balance, end of period | $ | 41 | $ | 40 | $ | 41 | $ | 40 | ||||||||
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 | $ | 292,775 | $ | 281,255 | $ | 287,059 | $ | 276,365 | ||||||||
Issuance of common stock upon exercise of stock options and pursuant to restricted stock units, net of tax | 194 | 794 | 825 | 792 | ||||||||||||
Stock-based compensation expense | 2,495 | 2,072 | 7,580 | 6,964 | ||||||||||||
Balance, end of period | $ | 295,464 | $ | 284,121 | $ | 295,464 | $ | 284,121 | ||||||||
Accumulated deficit | ||||||||||||||||
Balance, beginning of period | $ | (200,438 | ) | $ | (209,773 | ) | $ | (206,438 | ) | $ | (200,625 | ) | ||||
Net income (loss) | (1,020 | ) | 1,314 | 4,980 | (7,834 | ) | ||||||||||
Balance, end of period | $ | (201,458 | ) | $ | (208,459 | ) | $ | (201,458 | ) | $ | (208,459 | ) | ||||
Accumulated other comprehensive loss | ||||||||||||||||
Balance, beginning of period | $ | (362 | ) | $ | (1,086 | ) | $ | (188 | ) | $ | (785 | ) | ||||
Foreign currency translation adjustment | (238 | ) | 345 | (412 | ) | 44 | ||||||||||
Balance, end of period | $ | (600 | ) | $ | (741 | ) | $ | (600 | ) | $ | (741 | ) | ||||
Total stockholders’ equity | $ | 92,576 | $ | 74,090 | $ | 92,576 | $ | 74,090 | ||||||||
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 | ||||
Nine Months Ended September 30, | ||||||||
2021 | 2020 | |||||||
(in thousands) | ||||||||
Operating activities | ||||||||
Net income (loss) | $ | 4,980 | $ | (7,834 | ) | |||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 6,284 | 6,497 | ||||||
Stock-based compensation | 7,234 | 6,724 | ||||||
Provision for reserves on accounts receivable | 246 | 461 | ||||||
Changes in assets and liabilities: | ||||||||
Accounts receivable | 710 | (1,433 | ) | |||||
Prepaid expenses and other current assets | (914 | ) | (6,414 | ) | ||||
Other assets | (1,273 | ) | (1,247 | ) | ||||
Accounts payable | 79 | 104 | ||||||
Accrued expenses | (4,402 | ) | 3,410 | |||||
Operating leases | (903 | ) | (13 | ) | ||||
Deferred revenue | 2,707 | 8,667 | ||||||
Net cash provided by operating activities | 14,748 | 8,922 | ||||||
Investing activities | ||||||||
Purchases of property and equipment | (1,625 | ) | (2,163 | ) | ||||
Capitalized internal-use software costs | (4,657 | ) | (5,108 | ) | ||||
Net cash used in investing activities | (6,282 | ) | (7,271 | ) | ||||
Financing activities | ||||||||
Proceeds from exercise of stock options | 2,200 | 1,207 | ||||||
Deferred acquisition payments | (475 | ) | — | |||||
Proceeds from debt | — | 10,000 | ||||||
Debt paydown | — | (5,000 | ) | |||||
Other financing activities | (1,375 | ) | (448 | ) | ||||
Net cash provided by financing activities | 350 | 5,759 | ||||||
Effect of exchange rate changes on cash and cash equivalents | (1,003 | ) | 163 | |||||
Net increase in cash and cash equivalents | 7,813 | 7,573 | ||||||
Cash and cash equivalents at beginning of period | 37,472 | 22,759 | ||||||
Cash and cash equivalents at end of period | $ | 45,285 | $ | 30,332 | ||||
Supplemental disclosure of cash flow information | ||||||||
Cash paid for operating lease liabilities | $ | 3,505 | $ | 5,087 | ||||
Cash paid for income taxes | $ | 681 | $ | 993 | ||||
Allowance for Credit Losses | ||||
(in thousands) | ||||
Balance as of December 31, 2020 | $ | 648 | ||
Current provision for credit losses | 303 | |||
Write-offs against allowance | (451 | ) | ||
Recoveries | (57 | ) | ||
Balance as of September 30, 2021 | $ | 443 | ||
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 |
Accounts Receivable, | Contract (current) | Deferred Revenue (current) | Deferred Revenue (non- current) | Total Deferred Revenue | ||||||||||||||||
Balance at December 31, 2020 | $ | 29,305 | $ | 2,078 | $ | 58,741 | $ | 811 | $ | 59,552 | ||||||||||
Balance at September 30, 2021 | 28,138 | 2,311 | 61,739 | 50 | 61,789 |
September 30, 2020 | September 30, 2021 | |||||||||||||||||||||||||||
Description | Contracted Maturity | Cost | Fair Market Value | Balance Per Balance Sheet | Contracted Maturity | Cost | Fair Market Value | |||||||||||||||||||||
Cash | Demand | $ | 30,291 | $ | 30,291 | $ | 30,291 | Demand | $ | 45,244 | $ | 45,244 | ||||||||||||||||
Money market funds | Demand | 41 | 41 | 41 | Demand | 41 | 41 | |||||||||||||||||||||
Total cash and cash equivalents | $ | 30,332 | $ | 30,332 | $ | 30,332 | $ | 45,285 | $ | 45,285 | ||||||||||||||||||
December 31, 2019 | December 31, 2020 | |||||||||||||||||||||||||||
Description | Contracted Maturity | Cost | Fair Market Value | Balance Per Balance Sheet | Contracted Maturity | Cost | Fair Market Value | |||||||||||||||||||||
Cash | Demand | $ | 22,718 | $ | 22,718 | $ | 22,718 | Demand | $ | 37,431 | $ | 37,431 | ||||||||||||||||
Money market funds | Demand | 41 | 41 | 41 | Demand | 41 | 41 | |||||||||||||||||||||
Total cash and cash equivalents | $ | 22,759 | $ | 22,759 | $ | 22,759 | $ | 37,472 | $ | 37,472 | ||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
(in thousands) | 2021 | 2020 | 2021 | 2020 | ||||||||||||
Net (loss) income | $ | (1,020 | ) | $ | 1,314 | $ | 4,980 | $ | (7,834 | ) | ||||||
Weighted average shares used in computing basic earnings per share | 40,934,689 | 39,682,337 | 40,570,817 | 39,319,703 | ||||||||||||
Effect of weighted average dilutive stock-based awards | 0 | 963,645 | 1,666,621 | 0 | ||||||||||||
Weighted average shares used in computing diluted earnings per share | 40,934,689 | 40,645,982 | 42,237,438 | 39,319,703 | ||||||||||||
Net (loss) income per share—basic and diluted | ||||||||||||||||
Basic | $ | (0.02 | ) | $ | 0.03 | $ | 0.12 | $ | (0.20 | ) | ||||||
Diluted | $ | (0.02 | ) | $ | 0.03 | $ | 0.12 | $ | (0.20 | ) |
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 September 30, | Nine Months Ended September 30, | |||||||||||||||
(shares in thousands) | 2021 | 2020 | 2021 | 2020 | ||||||||||||
Options outstanding | 1,803 | 1,570 | 147 | 2,234 | ||||||||||||
Restricted stock units outstanding | 3,185 | 155 | 56 | 3,264 |
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 September 30, | Nine Months Ended September 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Weighted-average fair value of options granted during the period | $ | 6.29 | $ | 4.86 | $ | 7.51 | $ | 4.01 | ||||||||
Risk-free interest rate | 1.14 | % | 0.33 | % | 1.16 | % | 0.76 | % | ||||||||
Expected volatility | 48 | % | 47 | % | 48 | % | 46 | % | ||||||||
Expected life (in years) | 6.2 | 5.9 | 6.2 | 6.1 | ||||||||||||
Expected dividend yield | 0 | 0 | 0 | 0 |
Three Months Ended September 30, | Nine September 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||
Stock-based compensation: | ||||||||||||||||||||||||||||||||
Cost of subscription and support revenue | $ | 139 | $ | 127 | $ | 452 | $ | 341 | $ | 157 | $ | 139 | $ | 501 | $ | 452 | ||||||||||||||||
Cost of professional services and other revenue | 63 | 71 | 233 | 223 | 113 | 63 | 299 | 233 | ||||||||||||||||||||||||
Research and development | 142 | 323 | 839 | 855 | 408 | 142 | 1,261 | 839 | ||||||||||||||||||||||||
Sales and marketing | 768 | 602 | 2,440 | 1,411 | 583 | 768 | 2,082 | 2,440 | ||||||||||||||||||||||||
General and administrative | 896 | 598 | 2,760 | 1,674 | 1,072 | 896 | 3,091 | 2,760 | ||||||||||||||||||||||||
$ | 2,008 | $ | 1,721 | $ | 6,724 | $ | 4,504 | $ | 2,333 | $ | 2,008 | $ | 7,234 | $ | 6,724 | |||||||||||||||||
Number of Shares | Weighted-Average Exercise Price | Weighted-Average Remaining Contractual Term (In Years) | Aggregate Intrinsic Value (1) | 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 | |||||||||||||||||||||||||||||
Outstanding at December 31, 2020 | 2,110,486 | $ | 9.19 | |||||||||||||||||||||||||||||
Granted | 129,584 | 9.04 | 92,905 | 16.05 | ||||||||||||||||||||||||||||
Exercised | (164,188 | ) | 7.36 | $ | 439 | (254,502 | ) | 8.65 | $ | 2,724 | ||||||||||||||||||||||
Canceled | (210,326 | ) | 9.07 | (145,930 | ) | 10.17 | ||||||||||||||||||||||||||
Outstanding at September 30, 2020 | 2,234,493 | $ | 9.08 | 6.73 | $ | 3,064 | ||||||||||||||||||||||||||
Outstanding at September 30, 2021 | 1,802,959 | $ | 9.56 | 5.94 | $ | 4,177 | ||||||||||||||||||||||||||
Exercisable at September 30, 2020 | 1,332,255 | $ | 8.81 | 5.75 | $ | 2,227 | ||||||||||||||||||||||||||
Exercisable at September 30, 2021 | 1,313,116 | $ | 8.96 | 5.23 | $ | 3,522 | ||||||||||||||||||||||||||
(1) | The aggregate intrinsic value was calculated based on the positive difference between the fair value of the Company’s common stock on September 30, |
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 | |||||
S-RSU Shares | Weighted Average Grant Date Fair Value | P-RSU Shares | Weighted Average Grant Date Fair Value | Total RSU Shares | Weighted Average Grant Date Fair Value | |||||||||||||||||||
Unvested at December 31, 2020 | 2,000,416 | $ | 10.40 | 1,587,801 | $ | 10.30 | 3,588,217 | $ | 10.35 | |||||||||||||||
Granted | 1,039,266 | 14.44 | 64,011 | 12.65 | 1,103,277 | 14.33 | ||||||||||||||||||
Vested and issued | (546,818 | ) | 9.11 | (181,910 | ) | 8.74 | (728,728 | ) | 9.01 | |||||||||||||||
Canceled | (411,567 | ) | 11.38 | (365,909 | ) | 9.50 | (777,476 | ) | 10.49 | |||||||||||||||
Unvested at September 30, 2021 | 2,081,297 | $ | 12.56 | 1,103,993 | $ | 10.97 | 3,185,290 | $ | 12.00 | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||
Revenue: | ||||||||||||||||||||||||||||||||
North America | $ | 27,515 | $ | 24,904 | $ | 78,553 | $ | 72,425 | $ | 29,420 | $ | 27,515 | $ | 89,204 | $ | 78,553 | ||||||||||||||||
Europe | 8,435 | 8,178 | 25,323 | 22,814 | 9,689 | 8,435 | 28,159 | 25,323 | ||||||||||||||||||||||||
Japan | 5,688 | 5,391 | 17,344 | 16,725 | 6,185 | 5,688 | 19,263 | 17,344 | ||||||||||||||||||||||||
Asia Pacific | 7,211 | 8,646 | 21,795 | 24,009 | 6,746 | 7,211 | 21,421 | 21,795 | ||||||||||||||||||||||||
Other | 235 | 315 | 648 | 879 | 123 | 235 | 405 | 648 | ||||||||||||||||||||||||
Total revenue | $ | 49,084 | $ | 47,434 | $ | 143,663 | $ | 136,852 | $ | 52,163 | $ | 49,084 | $ | 158,452 | $ | 143,663 | ||||||||||||||||
Allowance for Credit Losses | ||||
(in thousands) | ||||
Balance as of December 31, 2019 | $ | 904 | ||
Current provision for credit losses | 332 | |||
Write-offs against allowance | (582 | ) | ||
Recoveries | 0 | |||
Balance as of September 30, 2020 | $ | 654 | ||
ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
Nine Months Ended September 30, | ||||||||
2021 | 2020 | |||||||
Customers (at period end) | ||||||||
Premium | 2,265 | 2,267 | ||||||
Volume | 940 | 1,114 | ||||||
Total customers (at period end) | 3,205 | 3,381 | ||||||
Net revenue retention rate | 97.1 | % | 93.8 | % | ||||
Recurring dollar retention rate | 88 | % | 88 | % | ||||
Average annual subscription revenue per premium customer, excluding Starter edition customers (in thousands) | $ | 93.9 | $ | 87.3 | ||||
Average annual subscription revenue per premium customer for Starter edition customers only (in thousands) | $ | 4.6 | $ | 4.5 | ||||
Total backlog, excluding professional services engagements (in millions) | $ | 148.6 | $ | 144.2 | ||||
Total backlog to be recognized over next 12 months, excluding professional services engagements (in millions) | $ | 115.0 | $ | 109.6 |
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 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 September 30, | Nine Months Ended September 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
(in thousands, except share and per share data) | ||||||||||||||||
Revenue: | ||||||||||||||||
Subscription and support revenue | $ | 49,226 | $ | 46,338 | $ | 148,667 | $ | 136,613 | ||||||||
Professional services and other revenue | 2,937 | 2,746 | 9,785 | 7,050 | ||||||||||||
Total revenue | 52,163 | 49,084 | 158,452 | 143,663 | ||||||||||||
Cost of revenue: | ||||||||||||||||
Cost of subscription and support revenue | 16,406 | 15,735 | 46,840 | 50,290 | ||||||||||||
Cost of professional services and other revenue | 2,247 | 2,363 | 8,205 | 6,349 | ||||||||||||
Total cost of revenue | 18,653 | 18,098 | 55,045 | 56,639 | ||||||||||||
Gross profit | 33,510 | 30,986 | 103,407 | 87,024 | ||||||||||||
Operating expenses: | ||||||||||||||||
Research and development | 7,902 | 8,215 | 24,041 | 26,199 | ||||||||||||
Sales and marketing | 18,451 | 14,813 | 52,730 | 42,370 | ||||||||||||
General and administrative | 7,345 | 6,694 | 21,822 | 19,633 | ||||||||||||
Merger-related | 45 | — | 300 | 5,768 | ||||||||||||
Other (benefit) expense | — | — | (1,965 | ) | — | |||||||||||
Total operating expenses | 33,743 | 29,722 | 96,928 | 93,970 | ||||||||||||
(Loss) income from operations | (233 | ) | 1,264 | 6,479 | (6,946 | ) | ||||||||||
Other (expense) income, net | (319 | ) | 204 | (937 | ) | (291 | ) | |||||||||
(Loss) income before income taxes | (552 | ) | 1,468 | 5,542 | (7,237 | ) | ||||||||||
Provision for income taxes | 468 | 154 | 562 | 597 | ||||||||||||
Net (loss) income | $ | (1,020 | ) | $ | 1,314 | $ | 4,980 | $ | (7,834 | ) | ||||||
Net (loss) income per share—basic and diluted | ||||||||||||||||
Basic | $ | (0.02 | ) | $ | 0.03 | $ | 0.12 | $ | (0.20 | ) | ||||||
Diluted | $ | (0.02 | ) | $ | 0.03 | $ | 0.12 | $ | (0.20 | ) | ||||||
Weighted-average shares—basic and diluted | ||||||||||||||||
Basic | 40,934,689 | 39,682,337 | 40,570,817 | 39,319,703 | ||||||||||||
Diluted | 40,934,689 | 40,645,982 | 42,237,438 | 39,319,703 |
Three Months Ended September 30, | Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | Change | 2021 | 2020 | Change | |||||||||||||||||||||||||||||||||||||||||||
Revenue by Product Line | Amount | Percentage of Revenue | Amount | Percentage of Revenue | Amount | % | Amount | Percentage of Revenue | Amount | Percentage of Revenue | Amount | % | ||||||||||||||||||||||||||||||||||||
(in thousands, except percentages) | (in thousands, except percentages) | |||||||||||||||||||||||||||||||||||||||||||||||
Premium | $ | 48,175 | 98 | % | $ | 46,462 | 98 | % | $ | 1,713 | 4 | % | $ | 51,466 | 99 | % | $ | 48,175 | 98 | % | $ | 3,291 | 7 | % | ||||||||||||||||||||||||
Volume | 909 | 2 | 972 | 2 | (63 | ) | (6 | ) | 697 | 1 | 909 | 2 | (212 | ) | (23 | ) | ||||||||||||||||||||||||||||||||
Total | $ | 49,084 | 100 | % | $ | 47,434 | 100 | % | $ | 1,650 | 3 | % | $ | 52,163 | 100 | % | $ | 49,084 | 100 | % | $ | 3,079 | 6 | % | ||||||||||||||||||||||||
Three Months Ended September 30, | ||||||||||||||||||||||||
2021 | 2020 | Change | ||||||||||||||||||||||
Revenue by Type | Amount | Percentage of Revenue | Amount | Percentage of Revenue | Amount | % | ||||||||||||||||||
(in thousands, except percentages) | ||||||||||||||||||||||||
Subscription and support | $ | 49,226 | 94 | % | $ | 46,338 | 96 | % | $ | 2,888 | 6 | % | ||||||||||||
Professional services and other | 2,937 | 6 | 2,746 | 4 | 191 | 7 | ||||||||||||||||||
Total | $ | 52,163 | 100 | % | $ | 49,084 | 100 | % | $ | 3,079 | 6 | % | ||||||||||||
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 September 30, | Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | Change | 2021 | 2020 | Change | |||||||||||||||||||||||||||||||||||||||||||
Revenue by Geography | Amount | Percentage of Revenue | Amount | Percentage of Revenue | Amount | % | Amount | Percentage of Revenue | Amount | Percentage of Revenue | Amount | % | ||||||||||||||||||||||||||||||||||||
(in thousands, except percentages) | (in thousands, except percentages) | |||||||||||||||||||||||||||||||||||||||||||||||
North America | $ | 27,515 | 56 | % | $ | 24,904 | 53 | % | $ | 2,611 | 10 | % | $ | 29,420 | 56 | % | $ | 27,515 | 56 | % | $ | 1,905 | 7 | % | ||||||||||||||||||||||||
Europe | 8,435 | 17 | 8,178 | 17 | 257 | 3 | 9,689 | 19 | 8,435 | 17 | 1,254 | 15 | ||||||||||||||||||||||||||||||||||||
Japan | 5,688 | 12 | 5,391 | 11 | 297 | 6 | 6,185 | 12 | 5,688 | 12 | 497 | 9 | ||||||||||||||||||||||||||||||||||||
Asia Pacific | 7,211 | 15 | 8,646 | 18 | (1,435 | ) | (17 | ) | 6,746 | 13 | 7,211 | 15 | (465 | ) | (6 | ) | ||||||||||||||||||||||||||||||||
Other | 235 | — | 315 | 1 | (80 | ) | (25 | ) | 123 | — | 235 | — | (112 | ) | (48 | ) | ||||||||||||||||||||||||||||||||
International subtotal | 21,569 | 44 | 22,530 | 47 | (961 | ) | (4 | ) | 22,743 | 44 | 21,569 | 44 | 1,174 | 5 | ||||||||||||||||||||||||||||||||||
Total | $ | 49,084 | 100 | % | $ | 47,434 | 100 | % | $ | 1,650 | 3 | % | $ | 52,163 | 100 | % | $ | 49,084 | 100 | % | $ | 3,079 | 6 | % | ||||||||||||||||||||||||
Three Months Ended September 30, | ||||||||||||||||||||||||
2021 | 2020 | Change | ||||||||||||||||||||||
Cost of Revenue | Amount | Percentage of Related Revenue | Amount | Percentage of Related Revenue | Amount | % | ||||||||||||||||||
(in thousands, except percentages) | ||||||||||||||||||||||||
Subscription and support | $ | 16,406 | 33 | % | $ | 15,735 | 34 | % | $ | 671 | 4 | % | ||||||||||||
Professional services and other | 2,247 | 77 | 2,363 | 86 | (116 | ) | (5 | ) | ||||||||||||||||
Total | $ | 18,653 | 36 | % | $ | 18,098 | 37 | % | $ | 555 | 3 | % | ||||||||||||
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 September 30, | ||||||||||||||||||||||||
2021 | 2020 | Change | ||||||||||||||||||||||
Gross Profit | Amount | Percentage of Related Revenue | Amount | Percentage of Related Revenue | Amount | % | ||||||||||||||||||
(in thousands, except percentages) | ||||||||||||||||||||||||
Subscription and support | $ | 32,820 | 67 | % | $ | 30,603 | 66 | % | $ | 2,217 | 7 | % | ||||||||||||
Professional services and other | 690 | 23 | 383 | 14 | 307 | 80 | % | |||||||||||||||||
Total | $ | 33,510 | 64 | % | $ | 30,986 | 63 | % | $ | 2,524 | 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 September 30, | Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | Change | 2021 | 2020 | Change | |||||||||||||||||||||||||||||||||||||||||||
Operating Expenses | Amount | Percentage of Revenue | Amount | Percentage of Revenue | Amount | % | Amount | Percentage of Revenue | Amount | Percentage of Revenue | Amount | % | ||||||||||||||||||||||||||||||||||||
(in thousands, except percentages) | (in thousands, except percentages) | |||||||||||||||||||||||||||||||||||||||||||||||
Research and development | $ | 8,215 | 17 | % | $ | 8,127 | 17 | % | $ | 88 | 1 | % | $ | 7,902 | 15 | % | $ | 8,215 | 17 | % | $ | (313 | ) | (4 | )% | |||||||||||||||||||||||
Sales and marketing | 14,813 | 30 | 14,567 | 31 | 246 | 2 | 18,451 | 35 | 14,813 | 30 | 3,638 | 25 | ||||||||||||||||||||||||||||||||||||
General and administrative | 6,694 | 14 | 6,245 | 13 | 449 | 7 | 7,345 | 14 | 6,694 | 14 | 651 | 10 | ||||||||||||||||||||||||||||||||||||
Merger-related | — | — | 2,539 | 5 | (2,539 | ) | (100 | ) | 45 | — | — | — | 45 | N/A | ||||||||||||||||||||||||||||||||||
Total | $ | 29,722 | 61 | % | $ | 31,478 | 66 | % | $ | (1,756 | ) | (6 | )% | $ | 33,743 | 65 | % | $ | 29,722 | 61 | % | $ | 4,021 | 14 | % | |||||||||||||||||||||||
Nine Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | Change | 2021 | 2020 | Change | |||||||||||||||||||||||||||||||||||||||||||
Revenue by Product Line | Amount | Percentage of Revenue | Amount | Percentage of Revenue | Amount | % | Amount | Percentage of Revenue | Amount | Percentage of Revenue | Amount | % | ||||||||||||||||||||||||||||||||||||
(in thousands, except percentages) | (in thousands, except percentages) | |||||||||||||||||||||||||||||||||||||||||||||||
Premium | $ | 140,904 | 98 | % | $ | 133,970 | 98 | % | $ | 6,934 | 5 | % | $ | 156,182 | 99 | % | $ | 140,904 | 98 | % | $ | 15,278 | 11 | % | ||||||||||||||||||||||||
Volume | 2,759 | 2 | 2,882 | 2 | (123 | ) | (4 | ) | 2,270 | 1 | 2,759 | 2 | (489 | ) | (18 | ) | ||||||||||||||||||||||||||||||||
Total | $ | 143,663 | 100 | % | $ | 136,852 | 100 | % | $ | 6,811 | 5 | % | $ | 158,452 | 100 | % | $ | 143,663 | 100 | % | $ | 14,789 | 10 | % | ||||||||||||||||||||||||
Nine Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | Change | 2021 | 2020 | Change | |||||||||||||||||||||||||||||||||||||||||||
Revenue by Type | Amount | Percentage of Revenue | Amount | Percentage of Revenue | Amount | % | Amount | Percentage of Revenue | Amount | Percentage of Revenue | Amount | % | ||||||||||||||||||||||||||||||||||||
(in thousands, except percentages) | (in thousands, except percentages) | |||||||||||||||||||||||||||||||||||||||||||||||
Subscription and support | $ | 136,613 | 95 | % | $ | 129,192 | 94 | % | $ | 7,421 | 6 | % | $ | 148,667 | 94 | % | $ | 136,613 | 95 | % | $ | 12,054 | 9 | % | ||||||||||||||||||||||||
Professional services and other | 7,050 | 5 | 7,660 | 6 | (610 | ) | (8 | ) | 9,785 | 6 | 7,050 | 5 | 2,735 | 39 | ||||||||||||||||||||||||||||||||||
�� | ||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 143,663 | 100 | % | $ | 136,852 | 100 | % | $ | 6,811 | 5 | % | $ | 158,452 | 100 | % | $ | 143,663 | 100 | % | $ | 14,789 | 10 | % | ||||||||||||||||||||||||
Nine Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | Change | 2021 | 2020 | Change | |||||||||||||||||||||||||||||||||||||||||||
Revenue by Geography | Amount | Percentage of Revenue | Amount | Percentage of Revenue | Amount | % | Amount | Percentage of Revenue | Amount | Percentage of Revenue | Amount | % | ||||||||||||||||||||||||||||||||||||
(in thousands, except percentages) | (in thousands, except percentages) | |||||||||||||||||||||||||||||||||||||||||||||||
North America | $ | 78,553 | 55 | % | $ | 72,425 | 53 | % | $ | 6,128 | 8 | % | $ | 89,204 | 56 | % | $ | 78,553 | 55 | % | $ | 10,651 | 14 | % | ||||||||||||||||||||||||
Europe | 25,323 | 18 | 22,814 | 17 | 2,509 | 11 | 28,159 | 18 | 25,323 | 18 | 2,836 | 11 | ||||||||||||||||||||||||||||||||||||
Japan | 17,344 | 12 | 16,725 | 12 | 619 | 4 | 19,263 | 12 | 17,344 | 12 | 1,919 | 11 | ||||||||||||||||||||||||||||||||||||
Asia Pacific | 21,795 | 15 | 24,009 | 17 | (2,214 | ) | (9 | ) | 21,421 | 14 | 21,795 | 15 | (374 | ) | (2 | ) | ||||||||||||||||||||||||||||||||
Other | 648 | — | 879 | 1 | (231 | ) | (26 | ) | 405 | — | 648 | — | (243 | ) | (38 | ) | ||||||||||||||||||||||||||||||||
International subtotal | 65,110 | 45 | 64,427 | 47 | 683 | 1 | 69,248 | 44 | 65,110 | 45 | 4,138 | 6 | ||||||||||||||||||||||||||||||||||||
Total | $ | 143,663 | 100 | % | $ | 136,852 | 100 | % | $ | 6,811 | 5 | % | $ | 158,452 | 100 | % | $ | 143,663 | 100 | % | $ | 14,789 | 10 | % | ||||||||||||||||||||||||
Nine Months Ended September 30, | ||||||||||||||||||||||||
2021 | 2020 | Change | ||||||||||||||||||||||
Cost of Revenue | Amount | Percentage of Related Revenue | Amount | Percentage of Related Revenue | Amount | % | ||||||||||||||||||
(in thousands, except percentages) | ||||||||||||||||||||||||
Subscription and support | $ | 46,840 | 32 | % | $ | 50,290 | 37 | % | $ | (3,450 | ) | (7 | )% | |||||||||||
Professional services and other | 8,205 | 84 | 6,349 | 90 | 1,856 | 29 | ||||||||||||||||||
Total | $ | 55,045 | 35 | % | $ | 56,639 | 39 | % | $ | (1,594 | ) | (3 | )% | |||||||||||
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 | % | |||||||||||
Nine Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | Change | 2021 | 2020 | Change | |||||||||||||||||||||||||||||||||||||||||||
Gross Profit | Amount | Percentage of Related Revenue | Amount | Percentage of Related Revenue | Amount | % | Amount | Percentage of Related Revenue | Amount | Percentage of Related Revenue | Amount | % | ||||||||||||||||||||||||||||||||||||
(in thousands, except percentages) | (in thousands, except percentages) | |||||||||||||||||||||||||||||||||||||||||||||||
Subscription and support | $ | 86,323 | 63 | % | $ | 78,955 | 61 | % | $ | 7,368 | 9 | % | $ | 101,827 | 68 | % | $ | 86,323 | 63 | % | $ | 15,504 | 18 | % | ||||||||||||||||||||||||
Professional services and other | 701 | 10 | 1,228 | 16 | (527 | ) | (43 | ) | 1,580 | 16 | 701 | 10 | 879 | 125 | ||||||||||||||||||||||||||||||||||
Total | $ | 87,024 | 61 | % | $ | 80,183 | 59 | % | $ | 6,841 | 9 | % | $ | 103,407 | 65 | % | $ | 87,024 | 61 | % | $ | 16,383 | 19 | % | ||||||||||||||||||||||||
Nine Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | Change | 2021 | 2020 | Change | |||||||||||||||||||||||||||||||||||||||||||
Operating Expenses | Amount | Percentage of Revenue | Amount | Percentage of Revenue | Amount | % | Amount | Percentage of Revenue | Amount | Percentage of Revenue | Amount | % | ||||||||||||||||||||||||||||||||||||
(in thousands, except percentages) | ||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands, except percentages) | ||||||||||||||||||||||||||||||||||||||||||||||||
Research and development | $ | 26,199 | 18 | % | $ | 23,150 | 17 | % | $ | 3,049 | 13 | % | $ | 24,041 | 15 | % | $ | 26,199 | 18 | % | $ | (2,158 | ) | (8 | )% | |||||||||||||||||||||||
Sales and marketing | 42,370 | 29 | 45,650 | 33 | (3,280 | ) | (7 | ) | 52,730 | 33 | 42,370 | 29 | 10,360 | 24 | ||||||||||||||||||||||||||||||||||
General and administrative | 19,633 | 14 | 17,485 | 13 | 2,148 | 12 | 21,822 | 14 | 19,633 | 14 | 2,189 | 11 | ||||||||||||||||||||||||||||||||||||
Merger-related | 5,768 | 4 | 8,091 | 6 | (2,323 | ) | (29 | ) | 300 | 0 | 5,768 | 4 | (5,468 | ) | (95 | ) | ||||||||||||||||||||||||||||||||
Other (benefit) expense | (1,965 | ) | (1 | ) | — | — | (1,965 | ) | N/A | |||||||||||||||||||||||||||||||||||||||
Total | $ | 93,970 | 65 | % | $ | 94,376 | 69 | % | $ | (406 | ) | 0 | % | $ | 96,928 | 61 | % | $ | 93,970 | 65 | % | $ | 2,958 | 3 | % | |||||||||||||||||||||||
Nine Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
Condensed Consolidated Statements of Cash Flow Data | 2020 | 2019 | 2021 | 2020 | ||||||||||||
(in thousands) | (in thousands) | |||||||||||||||
Cash flows provided by operating activities | 8,922 | 629 | $ | 14,748 | $ | 8,922 | ||||||||||
Cash flows used in investing activities | (7,271 | ) | (10,266 | ) | $ | (6,282 | ) | $ | (7,271 | ) | ||||||
Cash flows provided by financing activities | 5,759 | 3,007 | $ | 350 | $ | 5,759 |
ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK (in thousands, except share and per share data, unless otherwise noted) |
Three Months Ended September 30, | Three Months Ended September 30, | |||||||||||||||
2020 | 2019 | 2021 | 2020 | |||||||||||||
Revenues generated in locations outside the United States | 48 | % | 51 | % | 47 | % | 48 | % | ||||||||
Revenues in currencies other than the United States dollar (1) | 29 | % | 30 | % | 29 | % | 29 | % | ||||||||
Expenses in currencies other than the United States dollar (1) | 17 | % | 18 | % | 18 | % | 17 | % |
Nine Months Ended September 30, | ||||||||
2021 | 2020 | |||||||
Revenues generated in locations outside the United States | 47 | % | 50 | % | ||||
Revenues in currencies other than the United States dollar (1) | 29 | % | 30 | % | ||||
Expenses in currencies other than the United States dollar (1) | 17 | % | 16 | % |
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 nine months ended September 30, |
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 | % |
Nine Months Ended September 30, 2020 | Nine Months Ended September 30, 2019 | Three Months Ended September 30, 2021 | Three Months Ended September 30, 2020 | |||||||||||||||||||||||||||||
Revenues | Expenses | Revenues | Expenses | Revenues | Expenses | Revenues | Expenses | |||||||||||||||||||||||||
Euro | 8 | % | 1 | % | 7 | % | 1 | % | 8 | % | 2 | % | 8 | % | 1 | % | ||||||||||||||||
British pound | 6 | 6 | 7 | 6 | 6 | 5 | 6 | 6 | ||||||||||||||||||||||||
Japanese yen | 12 | 3 | 12 | 3 | ||||||||||||||||||||||||||||
Japanese Yen | 12 | 3 | 12 | 3 | ||||||||||||||||||||||||||||
Other | 4 | 6 | 5 | 6 | 3 | 8 | 3 | 7 | ||||||||||||||||||||||||
Total | 30 | % | 16 | % | 31 | % | 16 | % | 29 | % | 18 | % | 29 | % | 17 | % |
Nine Months Ended September 30, 2021 | Nine Months Ended September 30, 2020 | |||||||||||||||
Revenues | Expenses | Revenues | Expenses | |||||||||||||
Euro | 8 | % | 1 | % | 8 | % | 1 | % | ||||||||
British pound | 6 | 5 | 6 | 6 | ||||||||||||
Japanese Yen | 12 | 3 | 12 | 3 | ||||||||||||
Other | 3 | 8 | 4 | 6 | ||||||||||||
Total | 29 | % | 17 | % | 30 | % | 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 2002. | |
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 | Inline XBRL Instance Document. | |
101.SCH | Inline XBRL Taxonomy Extension Schema Document. | |
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document. | |
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document. | |
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document. | |
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document. | |
104* | Cover Page Interactive Data File (formatted as Inline XBRL with applicable taxonomy extension information contained in Exhibits 101.*) |
(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: October | By: | /s/ Jeff Ray | ||||
Jeff Ray | ||||||
Chief Executive Officer | ||||||
( | ||||||
Date: October | By: | /s/ Robert Noreck | ||||
Robert Noreck | ||||||
Chief Financial Officer | ||||||
( |