☒ | 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 | ☐ |
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June 30, 2021 | December 31, 2020 | |||||||
(in thousands, except share and per share data) | ||||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 40,387 | $ | 37,472 | ||||
Accounts receivable, net of allowance of $738 and $648 at June 30, 2021 and December 31, 2020, respectively | 31,445 | 29,305 | ||||||
Prepaid expenses | 9,563 | 5,760 | ||||||
Other current assets | 11,483 | 12,978 | ||||||
Total current assets | 92,878 | 85,515 | ||||||
Property and equipment, net | 17,460 | 15,968 | ||||||
Operating lease right-of-use | 6,749 | 8,699 | ||||||
Intangible assets, net | 8,956 | 10,465 | ||||||
Goodwill | 60,902 | 60,902 | ||||||
Other assets | 6,236 | 5,254 | ||||||
Total assets | $ | 193,181 | $ | 186,803 | ||||
Liabilities and stockholders’ equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 11,001 | $ | 10,456 | ||||
Accrued expenses | 20,779 | 25,397 | ||||||
Operating lease liability | 2,734 | 4,346 | ||||||
Deferred revenue | 62,433 | 58,741 | ||||||
Total current liabilities | 96,947 | 98,940 | ||||||
Operating lease liability, net of current portion | 4,200 | 5,498 | ||||||
Other liabilities | 889 | 2,763 | ||||||
Total liabilities | $ | 102,036 | 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; 40,946,572 and 40,152,021 shares issued at June 30, 2021 and December 31, 2020, respectively | 41 | 40 | ||||||
Additional paid-in capital | 292,775 | 287,059 | ||||||
Treasury stock, at cost; 135,000 shares | (871 | ) | (871 | ) | ||||
Accumulated other comprehensive loss | (362 | ) | (188 | ) | ||||
Accumulated deficit | (200,438 | ) | (206,438 | ) | ||||
Total stockholders’ equity | 91,145 | 79,602 | ||||||
Total liabilities and stockholders’ equity | $ | 193,181 | $ | 186,803 | ||||
March 31, 2022 | December 31, 2021 | |||||||
(in thousands, except share and per share data) | ||||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 26,705 | $ | 45,739 | ||||
Accounts receivable, net of allowance of $379 and $353 at March 31, 2022 and December 31, 2021, respectively | 34,037 | 29,866 | ||||||
Prepaid expenses | 10,740 | 7,792 | ||||||
Other current assets | 11,099 | 10,833 | ||||||
Total current assets | 82,581 | 94,230 | ||||||
Property and equipment, net | 26,317 | 20,514 | ||||||
Operating lease right-of-use | 23,655 | 24,891 | ||||||
Intangible assets, net | 12,881 | 9,276 | ||||||
Goodwill | 74,838 | 60,902 | ||||||
Other assets | 6,612 | 6,655 | ||||||
Total assets | $ | 226,884 | $ | 216,468 | ||||
Liabilities and stockholders’ equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 14,027 | $ | 11,039 | ||||
Accrued expenses | 22,851 | 20,925 | ||||||
Operating lease liability | 2,950 | 2,600 | ||||||
Deferred revenue | 64,110 | 62,057 | ||||||
Total current liabilities | 103,938 | 96,621 | ||||||
Operating lease liability, net of current portion | 21,920 | 22,801 | ||||||
Other liabilities | 932 | 786 | ||||||
Total liabilities | $ | 126,790 | 120,208 | |||||
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; 41,685,163 and 41,384,643 shares issued at March 31, 2022 and December 31, 2021, respectively | 42 | 41 | ||||||
Additional paid-in capital | 304,506 | 298,793 | ||||||
Treasury stock, at cost; 135,000 shares | (871 | ) | (871 | ) | ||||
Accumulated other comprehensive loss | (905 | ) | (662 | ) | ||||
Accumulated deficit | (202,678 | ) | (201,041 | ) | ||||
Total stockholders’ equity | 100,094 | 96,260 | ||||||
Total liabilities and stockholders’ equity | $ | 226,884 | $ | 216,468 | ||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
(in thousands, except share and per share data) | ||||||||||||||||
Revenue: | ||||||||||||||||
Subscription and support revenue | $ | 48,602 | $ | 45,617 | $ | 99,441 | $ | 90,275 | ||||||||
Professional services and other revenue | 2,870 | 2,309 | 6,848 | 4,304 | ||||||||||||
Total revenue | 51,472 | 47,926 | 106,289 | 94,579 | ||||||||||||
Cost of revenue: | ||||||||||||||||
Cost of subscription and support revenue | 14,756 | 17,807 | 30,434 | 34,555 | ||||||||||||
Cost of professional services and other revenue | 2,468 | 2,092 | 5,958 | 3,986 | ||||||||||||
Total cost of revenue | 17,224 | 19,899 | 36,392 | 38,541 | ||||||||||||
Gross profit | 34,248 | 28,027 | 69,897 | 56,038 | ||||||||||||
Operating expenses: | ||||||||||||||||
Research and development | 7,855 | 9,131 | 16,139 | 17,984 | ||||||||||||
Sales and marketing | 18,130 | 13,383 | 34,279 | 27,557 | ||||||||||||
General and administrative | 7,418 | 6,407 | 14,477 | 12,939 | ||||||||||||
Merger-related | 255 | 259 | 255 | 5,768 | ||||||||||||
Other (benefit) expense | — | — | (1,965 | ) | — | |||||||||||
Total operating expenses | 33,658 | 29,180 | 63,185 | 64,248 | ||||||||||||
Income (loss) from operations | 590 | (1,153 | ) | 6,712 | (8,210 | ) | ||||||||||
Other expense, net | 117 | (27 | ) | (618 | ) | (495 | ) | |||||||||
Income (loss) before income taxes | 707 | (1,180 | ) | 6,094 | (8,705 | ) | ||||||||||
Provision for income taxes | (163 | ) | 115 | 94 | 443 | |||||||||||
Net income (loss) | $ | 870 | $ | (1,295 | ) | $ | 6,000 | $ | (9,148 | ) | ||||||
Net income (loss) per share—basic and diluted | ||||||||||||||||
Basic | $ | 0.02 | $ | (0.03 | ) | $ | 0.15 | $ | (0.23 | ) | ||||||
Diluted | $ | 0.02 | $ | (0.03 | ) | $ | 0.14 | $ | (0.23 | ) | ||||||
Weighted-average shares—basic and diluted | ||||||||||||||||
Basic | 40,615,149 | 39,291,649 | 40,385,866 | 39,136,394 | ||||||||||||
Diluted | 42,208,933 | 39,291,649 | 42,390,641 | 39,136,394 |
Three Months Ended June 30, | Six Months June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
(in thousands) | ||||||||||||||||
Net income (loss) | $ | 870 | $ | (1,295 | ) | $ | 6,000 | $ | (9,148 | ) | ||||||
Other comprehensive income: | ||||||||||||||||
Foreign currency translation adjustments | 35 | 158 | (174 | ) | (301 | ) | ||||||||||
Comprehensive income (loss) | $ | 905 | $ | (1,137 | ) | $ | 5,826 | $ | (9,449 | ) | ||||||
Three Months Ended March 31, | ||||||||
2022 | 2021 | |||||||
(in thousands, except share and per share data) | ||||||||
Revenue: | ||||||||
Subscription and support revenue | $ | 51,601 | $ | 50,839 | ||||
Professional services and other revenue | 1,778 | 3,978 | ||||||
Total revenue | 53,379 | 54,817 | ||||||
Cost of revenue: | ||||||||
Cost of subscription and support revenue | 16,982 | 15,678 | ||||||
Cost of professional services and other revenue | 1,998 | 3,490 | ||||||
Total cost of revenue | 18,980 | 19,168 | ||||||
Gross profit | 34,399 | 35,649 | ||||||
Operating expenses: | ||||||||
Research and development | 8,237 | 8,284 | ||||||
Sales and marketing | 18,288 | 16,149 | ||||||
General and administrative | 8,089 | 7,059 | ||||||
Merger-related | 594 | 0 | ||||||
Other expense (benefit) | 1,149 | (1,965 | ) | |||||
Total operating expenses | 36,357 | 29,527 | ||||||
(Loss) income from operations | (1,958 | ) | 6,122 | |||||
Other (expense), net | (387 | ) | (735 | ) | ||||
(Loss) income before income taxes | (2,345 | ) | 5,387 | |||||
(Benefit) provision for income taxes | (708 | ) | 257 | |||||
Net (loss) income | $ | (1,637 | ) | $ | 5,130 | |||
Net (loss) income per share—basic and diluted | ||||||||
Basic | $ | (0.04 | ) | $ | 0.13 | |||
Diluted | $ | (0.04 | ) | $ | 0.12 | |||
Weighted-average shares—basic and diluted | ||||||||
Basic | 41,436 | 40,154 | ||||||
Diluted | 41,436 | 42,480 |
Three Months Ended March 31, | ||||||||
2022 | 2021 | |||||||
(in thousands) | ||||||||
Net (loss) income | $ | (1,637 | ) | $ | 5,130 | |||
Other comprehensive income: | ||||||||
Foreign currency translation adjustments | (243 | ) | (209 | ) | ||||
Comprehensive (loss) income | $ | (1,880 | ) | $ | 4,921 | |||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
(in thousands, except share data) | ||||||||||||||||
Shares of common stock issued | ||||||||||||||||
Balance, beginning of period | 40,412,577 | 39,105,853 | 40,152,021 | 39,042,787 | ||||||||||||
Issuance of common stock upon exercise of stock options and pursuant to restricted stock units | 533,995 | 438,138 | 794,551 | 501,204 | ||||||||||||
Balance, end of period | 40,946,572 | 39,543,991 | 40,946,572 | 39,543,991 | ||||||||||||
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 | $ | 40 | $ | 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 | 1 | 0 | 0 | 0 | ||||||||||||
Balance, end of period | $ | 41 | $ | 39 | $ | 41 | $ | 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 | $ | 290,403 | $ | 279,114 | $ | 287,059 | $ | 276,365 | ||||||||
Issuance of common stock upon exercise of stock options and pursuant to restricted stock units, net of tax | (378 | ) | (38 | ) | 631 | (2 | ) | |||||||||
Stock-based compensation expense | 2,750 | 2,179 | 5,085 | 4,892 | ||||||||||||
Balance, end of period | $ | 292,775 | $ | 281,255 | $ | 292,775 | $ | 281,255 | ||||||||
Accumulated deficit | ||||||||||||||||
Balance, beginning of period | $ | (201,308 | ) | $ | (208,478 | ) | $ | (206,438 | ) | $ | (200,625 | ) | ||||
Net income (loss) | 870 | (1,295 | ) | 6,000 | (9,148 | ) | ||||||||||
Balance, end of period | $ | (200,438 | ) | $ | (209,773 | ) | $ | (200,438 | ) | $ | (209,773 | ) | ||||
Accumulated other comprehensive loss | ||||||||||||||||
Balance, beginning of period | $ | (397 | ) | $ | (1,244 | ) | $ | (188 | ) | $ | (785 | ) | ||||
Foreign currency translation adjustment | 35 | 158 | (174 | ) | (301 | ) | ||||||||||
Balance, end of period | $ | (362 | ) | $ | (1,086 | ) | $ | (362 | ) | $ | (1,086 | ) | ||||
Total stockholders’ equity | $ | 91,145 | $ | 69,564 | $ | 91,145 | $ | 69,564 | ||||||||
Three Months Ended March 31, | ||||||||
2022 | 2021 | |||||||
(in thousands, except share data) | ||||||||
Shares of common stock issued | ||||||||
Balance, beginning of period | 41,384,643 | 40,152,021 | ||||||
Issuance of common stock upon exercise of stock options and pursuant to restricted stock units | 300,520 | 260,556 | ||||||
Balance, end of period | 41,685,163 | 40,412,577 | ||||||
Shares of treasury stock | ||||||||
Balance, beginning of period | (135,000 | ) | (135,000 | ) | ||||
Balance, end of period | (135,000 | ) | (135,000 | ) | ||||
Par value of common stock issued | ||||||||
Balance, beginning of period | $ | 41 | $ | 40 | ||||
Issuance of common stock upon exercise of stock options and pursuant to restricted stock units | 0 | 0— | ||||||
Common stock issued upon acquisition | 1 | 0 | ||||||
Balance, end of period | $ | 42 | $ | 40 | ||||
Value of treasury stock | ||||||||
Balance, beginning of period | $ | (871 | ) | $ | (871 | ) | ||
Balance, end of period | $ | (871 | ) | $ | (871 | ) | ||
Additional paid-in capital | ||||||||
Balance, beginning of period | $ | 298,793 | $ | 287,059 | ||||
Issuance of common stock upon exercise of stock options and pursuant to restricted stock units, net of tax | 100 | 1,008 | ||||||
Stock-based compensation expense | 3,627 | 2,336 | ||||||
Common stock issued upon acquisition | 1,986 | 0 | ||||||
Balance, end of period | $ | 304,506 | $ | 290,403 | ||||
Accumulated deficit | ||||||||
Balance, beginning of period | $ | (201,041 | ) | $ | (206,438 | ) | ||
Net (loss) income | (1,637 | ) | 5,130 | |||||
Balance, end of period | $ | (202,678 | ) | $ | (201,308 | ) | ||
Accumulated other comprehensive loss | ||||||||
Balance, beginning of period | $ | (662 | ) | $ | (188 | ) | ||
Foreign currency translation adjustment | (243 | ) | (209 | ) | ||||
Balance, end of period | $ | (905 | ) | $ | (397 | ) | ||
Total stockholders’ equity | $ | 100,094 | $ | 87,867 | ||||
Six Months Ended June 30, | ||||||||
2021 | 2020 | |||||||
(in thousands) | ||||||||
Operating activities | ||||||||
Net income (loss) | $ | 6,000 | $ | (9,148 | ) | |||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 4,278 | 4,357 | ||||||
Stock-based compensation | 4,901 | 4,716 | ||||||
Provision for reserves on accounts receivable | 276 | 401 | ||||||
Changes in assets and liabilities: | ||||||||
Accounts receivable | (2,634 | ) | 4,055 | |||||
Prepaid expenses and other current assets | (1,337 | ) | (5,357 | ) | ||||
Other assets | (1,000 | ) | (300 | ) | ||||
Accounts payable | 105 | 2,038 | ||||||
Accrued expenses | (6,053 | ) | (577 | ) | ||||
Operating leases | (960 | ) | 3 | |||||
Deferred revenue | 3,801 | 5,112 | ||||||
Net cash provided by operating activities | 7,377 | 5,300 | ||||||
Investing activities | ||||||||
Purchases of property and equipment | (808 | ) | (1,197 | ) | ||||
Capitalized internal-use software costs | (2,977 | ) | (3,839 | ) | ||||
Net cash used in investing activities | (3,785 | ) | (5,036 | ) | ||||
Financing activities | ||||||||
Proceeds from exercise of stock options | 1,980 | 394 | ||||||
Deferred acquisition payments | (475 | ) | — | |||||
Proceeds from debt | — | 10,000 | ||||||
Debt paydown | — | (5,000 | ) | |||||
Other financing activities | (1,348 | ) | (429 | ) | ||||
Net cash provided by financing activities | 157 | 4,965 | ||||||
Effect of exchange rate changes on cash and cash equivalents | (834 | ) | (235 | ) | ||||
Net increase in cash and cash equivalents | 2,915 | 4,994 | ||||||
Cash and cash equivalents at beginning of period | 37,472 | 22,759 | ||||||
Cash and cash equivalents at end of period | $ | 40,387 | $ | 27,753 | ||||
Supplemental disclosure of cash flow information | ||||||||
Cash paid for operating lease liabilities | $ | 3,165 | $ | 3,561 | ||||
Three Months Ended March 31, | ||||||||
2022 | 2021 | |||||||
(in thousands) | ||||||||
Operating activities | ||||||||
Net (loss) income | $ | (1,637 | ) | $ | 5,130 | |||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Depreciation and amortization | 2,061 | 2,163 | ||||||
Stock-based compensation | 3,479 | 2,292 | ||||||
Provision for reserves on accounts receivable | 106 | 71 | ||||||
Changes in assets and liabilities: | ||||||||
Accounts receivable | (3,802 | ) | (1,585 | ) | ||||
Prepaid expenses and other current assets | (1,550 | ) | (1,390 | ) | ||||
Other assets | 54 | (919 | ) | |||||
Accounts payable | 347 | (425 | ) | |||||
Accrued expenses | (1,980 | ) | (5,797 | ) | ||||
Operating leases | 705 | (626 | ) | |||||
Deferred revenue | 1,527 | 482 | ||||||
Net cash used in operating activities | (690 | ) | (604 | ) | ||||
Investing activities | ||||||||
Cash paid for acquisition, net of cash acquired | (13,176 | ) | 0 | |||||
Purchases of property and equipment | (1,884 | ) | (468 | ) | ||||
Capitalized internal-use software costs | (2,882 | ) | (1,054 | ) | ||||
Net cash used in investing activities | (17,942 | ) | (1,522 | ) | ||||
Financing activities | ||||||||
Proceeds from exercise of stock options | 100 | 1,095 | ||||||
Deferred acquisition payments | 0 | (475 | ) | |||||
Other financing activities | 0 | (87 | ) | |||||
Net cash provided by financing activities | 100 | 533 | ||||||
Effect of exchange rate changes on cash and cash equivalents | (502 | ) | (727 | ) | ||||
Net decrease in cash and cash equivalents | (19,034 | ) | (2,320 | ) | ||||
Cash and cash equivalents at beginning of period | 45,739 | 37,472 | ||||||
Cash and cash equivalents at end of period | $ | 26,705 | $ | 35,152 | ||||
Supplemental disclosure of cash flow information | ||||||||
Cash paid for operating lease liabilities | $ | 796 | $ | 1,477 | ||||
Cash paid for income taxes | $ | 216 | $ | 314 |
Allowance for Credit Losses | ||||
(in thousands) | ||||
Balance as of December 31, 2020 | $ | 648 | ||
Current provision for credit losses | 233 | |||
Write-offs against allowance | (135 | ) | ||
Recoveries | (8 | ) | ||
Balance as of June 30 , 2021 | $ | 738 | ||
Allowance for Credit Losses | ||||
(in thousands) | ||||
Balance as of December 31, 2021 | $ | 353 | ||
Current provision for credit losses | 106 | |||
Write-offs against allowance | (80 | ) | ||
Recoveries | 0— | |||
Balance as of March 31, 2022 | $ | 379 | ||
Accounts Receivable, net | Contract Assets (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 June 30, 2021 | 31,445 | 2,077 | 62,433 | 434 | 62,867 |
Accounts Receivable, net | Contract Assets (current) | Deferred Revenue (current) | Deferred Revenue (non- current) | Total Deferred Revenue | ||||||||||||||||
Balance at December 31, 2021 | $ | 29,866 | $ | 2,375 | $ | 62,057 | $ | 114 | $ | 62,171 | ||||||||||
Balance at March 31, 2022 | 34,037 | 2,498 | 64,110 | 299 | 64,409 |
June 30, 2021 | ||||||||||||
Description | Contracted Maturity | Cost | Fair Market Value | |||||||||
Cash | Demand | $ | 40,346 | $ | 40,346 | |||||||
Money market funds | Demand | 41 | 41 | |||||||||
Total cash and cash equivalents | $ | 40,387 | $ | 40,387 | ||||||||
March 31, 2022 | ||||||||||||
Description | Contracted Maturity | Cost | Fair Market Value | |||||||||
Cash | Demand | $ | 26,664 | $ | 26,664 | |||||||
Money market funds | Demand | 41 | 41 | |||||||||
Total cash and cash equivalents | $ | 26,705 | $ | 26,705 | ||||||||
December 31, 2020 | ||||||||||||
Description | Contracted Maturity | Cost | Fair Market Value | |||||||||
Cash | Demand | $ | 37,431 | $ | 37,431 | |||||||
Money market funds | Demand | 41 | 41 | |||||||||
Total cash and cash equivalents | $ | 37,472 | $ | 37,472 | ||||||||
December 31, 2021 | ||||||||||||
Description | Contracted Maturity | Cost | Fair Market Value | |||||||||
Cash | Demand | $ | 45,698 | $ | 45,698 | |||||||
Money market funds | Demand | 41 | 41 | |||||||||
Total cash and cash equivalents | $ | 45,739 | $ | 45,739 | ||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
(in thousands) | 2021 | 2020 | 2021 | 2020 | ||||||||||||
Net income (loss) | $ | 870 | $ | (1,295 | ) | $ | 6,000 | $ | (9,148 | ) | ||||||
Weighted average shares used in computing basic earnings per share | 40,615,149 | 39,291,649 | 40,385,866 | 39,136,394 | ||||||||||||
Effect of weighted average dilutive stock-based awards | 1,593,784 | 0 | 2,004,775 | 0 | ||||||||||||
Weighted average shares used in computing diluted earnings per share | 42,208,933 | 39,291,649 | 42,390,641 | 39,136,394 | ||||||||||||
Net income (loss) per share—basic and diluted | ||||||||||||||||
Basic | $ | 0.02 | $ | (0.03 | ) | $ | 0.15 | $ | (0.23 | ) | ||||||
Diluted | $ | 0.02 | $ | (0.03 | ) | $ | 0.14 | $ | (0.23 | ) |
Three Months Ended March 31, | ||||||||
(in thousands) | 2022 | 2021 | ||||||
Net (loss) income | $ | (1,637 | ) | $ | 5,130 | |||
Weighted average shares used in computing basic earnings per share | 41,436 | 40,154 | ||||||
Effect of weighted average dilutive stock-based awards | 0 | 2,326 | ||||||
Weighted average shares used in computing diluted earnings per share | 41,436 | 42,480 | ||||||
Net (loss) income per share—basic and diluted | ||||||||
Basic | $ | (0.04 | ) | $ | 0.13 | |||
Diluted | $ | (0.04 | ) | $ | 0.12 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
(shares in thousands) | 2021 | 2020 | 2021 | 2020 | ||||||||||||
Options outstanding | 145 | 2,372 | 122 | 2,372 | ||||||||||||
Restricted stock units outstanding | 68 | 3,580 | 68 | 3,580 |
Three Months Ended March 31, | ||||||||
(shares in thousands) | 2022 | 2021 | ||||||
Options outstanding | 1,607 | 34 | ||||||
Restricted stock units outstanding | 4,589 | 68 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Weighted-average fair value of options granted during the period | $ | 6.75 | $ | 3.76 | $ | 7.72 | $ | 3.48 | ||||||||
Risk-free interest rate | 1.22 | % | 0.62 | % | 1.16 | % | 1.03 | % | ||||||||
Expected volatility | 48 | % | 48 | % | 48 | % | 46 | % | ||||||||
Expected life (in years) | 6.2 | 6.3 | 6.2 | 6.2 | ||||||||||||
Expected dividend yield | 0 | 0 | 0 | 0 |
Three Months Ended March 31, | ||||||||
2022 | 2021 | |||||||
Weighted-average fair value of options granted during the period | $ | 0 | $ | 10.55 | ||||
Risk-free interest rate | 0 | 1.00 | % | |||||
Expected volatility | 0 | 47 | % | |||||
Expected life (in years) | — | 6.3 | ||||||
Expected dividend yield | 0 | 0 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Stock-based compensation: | ||||||||||||||||
Cost of subscription and support revenue | $ | 187 | $ | 123 | $ | 344 | $ | 313 | ||||||||
Cost of professional services and other revenue | 118 | 90 | 186 | 170 | ||||||||||||
Research and development | 531 | 257 | 853 | 697 | ||||||||||||
Sales and marketing | 762 | 761 | 1,499 | 1,672 | ||||||||||||
General and administrative | 1,011 | 867 | 2,019 | 1,864 | ||||||||||||
$ | 2,609 | $ | 2,098 | $ | 4,901 | $ | 4,716 | |||||||||
Three Months Ended March 31, | ||||||||
2022 | 2021 | |||||||
Stock-based compensation: | (in thou sands) | |||||||
Cost of subscription and support revenue | $ | 109 | $ | 157 | ||||
Cost of professional services and other revenue | 119 | 68 | ||||||
Research and development | 722 | 322 | ||||||
Sales and marketing | 943 | 737 | ||||||
General and administrative | 1,337 | 1,008 | ||||||
Other expense (benefit) | 249 | — | ||||||
$ | 3,479 | $ | 2,292 | |||||
Number of Shares | Weighted-Average Exercise Price | Weighted-Average Remaining Contractual Term (In Years) | Aggregate Intrinsic Value (1) | |||||||||||||
Outstanding at December 31, 2020 | 2,110,486 | $ | 9.19 | |||||||||||||
Granted | 79,230 | 16.51 | ||||||||||||||
Exercised | (226,525 | ) | 8.74 | $ | 2,616 | |||||||||||
Canceled | (64,506 | ) | 9.95 | |||||||||||||
Outstanding at June 30, 2021 | 1,898,685 | $ | 9.54 | 6.54 | $ | 9,385 | ||||||||||
Exercisable at June 30, 2021 | 1,275,816 | $ | 8.93 | 5.81 | $ | 6,968 | ||||||||||
Number of Shares | Weighted-Average Exercise Price | Weighted-Average Remaining Contractual Term (In Years) | Aggregate Intrinsic Value (1) | |||||||||||||
Outstanding at December 31, 2021 | 1,681,477 | $ | 9.59 | |||||||||||||
Granted | 0 | 0 | ||||||||||||||
Exercised | (15,900 | ) | 6.31 | $ | 33,483 | |||||||||||
Canceled | (58,236 | ) | 11.78 | |||||||||||||
Outstanding at March 31, 2022 | 1,607,341 | $ | 9.54 | 5.72 | $ | 461,756 | ||||||||||
Exercisable at March 31, 2022 | 1,195,855 | $ | 9.05 | 5.14 | $ | 456,686 | ||||||||||
(1) | The aggregate intrinsic value was calculated based on the positive difference between the fair value of the Company’s common stock on |
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 | 847,994 | 14.78 | 0 | 0 | 847,994 | 14.78 | ||||||||||||||||||
Vested and issued | (345,513 | ) | 8.65 | (181,910 | ) | 8.74 | (527,423 | ) | 8.68 | |||||||||||||||
Canceled | (198,131 | ) | 10.33 | (196,840 | ) | 8.76 | (394,971 | ) | 9.52 | |||||||||||||||
Unvested at June 30, 2021 | 2,304,766 | $ | 12.26 | 1,209,051 | $ | 10.79 | 3,513,817 | $ | 11.75 | |||||||||||||||
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, 2021 | 2,915,720 | $ | 11.66 | 1,021,172 | $ | 11.04 | 3,936,892 | $ | 11.50 | |||||||||||||||
Granted | 1,943,905 | 7.24 | — | — | 1,943,905 | 7.24 | ||||||||||||||||||
Vested and issued | (72,113 | ) | 10.33 | — | — | (72,113 | ) | 10.33 | ||||||||||||||||
Canceled | (198,389 | ) | 10.62 | (188,732 | ) | 12.96 | (387,121 | ) | 11.76 | |||||||||||||||
Unvested at March 31, 2022 | 4,589,123 | $ | 8.34 | 832,440 | $ | 10.61 | 5,421,563 | $ | 9.97 | |||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Revenue: | ||||||||||||||||
North America | $ | 29,398 | $ | 26,039 | $ | 59,784 | $ | 51,038 | ||||||||
Europe | 9,547 | 8,427 | 18,470 | 16,888 | ||||||||||||
Japan | 5,370 | 5,554 | 13,078 | 11,656 | ||||||||||||
Asia Pacific | 7,016 | 7,714 | 14,675 | 14,584 | ||||||||||||
Other | 141 | 192 | 282 | 413 | ||||||||||||
Total revenue | $ | 51,472 | $ | 47,926 | $ | 106,289 | $ | 94,579 | ||||||||
Three Months Ended March 31, | ||||||||
2022 | 2021 | |||||||
Revenue: | ||||||||
North America | $ | 29,461 | $ | 30,386 | ||||
Europe | 9,105 | 8,923 | ||||||
Japan | 7,261 | 7,708 | ||||||
Asia Pacific | 7,436 | 7,659 | ||||||
Other | 116 | 141 | ||||||
Total revenue | $ | 53,379 | $ | 54,817 | ||||
During the three months ended March 31, 2022 the Company incurred $ 0.6 million of merger-related costs related to the Wicket Acquisition. The excess of the purchase price over the estimated amounts of net assets as of the effective date of the acquisition was allocated to goodwill in accordance with the accounting guidance. The factors contributing to the recognition of the amount of goodwill are based on several strategic and synergistic benefits that are expected to be realized from the Wicket Acquisition. These benefits include the acquired workforce and opportunities to expand the Company’s offerings in target market segments that use subscriber and content insights to make decisions. The goodwill is expected to be non-deductible for tax purposes.The total purchase price for the Wicket Acquisition has been allocated as follows:
The following are the identifiable intangible assets acquired and their respective useful lives, as determined based on preliminary valuations:
The preliminary fair value of the intangible assets has been estimated using the income approach in which the after-tax cash flows are discounted to present value. The cash flows are based on estimates used to price the transaction, and the discount rates applied were benchmarked with reference to the implied rate of return from the transaction model as well as the weighted average cost of capital.The estimated remaining amortization expense for 2022 and for each of the five succeeding years and thereafter is as follows:
Pro forma results of operations for the Wicket Acquisition have not been presented because the effect of the acquisition is not material to the Company’s consolidated financial results. Revenue and earnings attributable to acquired operations since the date of the acquisition are included in the Company’s consolidated statements of operations. The changes in the carrying amount of goodwill for the three months ended March 31, 2022 were as follows: 15
1 6 ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
Six Months Ended June 30, | Three Months Ended March 31, | |||||||||||||||
2021 | 2020 | 2022 | 2021 | |||||||||||||
Customers (at period end) | ||||||||||||||||
Premium | 2,280 | 2,279 | 2,299 | 2,273 | ||||||||||||
Volume | 983 | 1,144 | 832 | 1,039 | ||||||||||||
Total customers (at period end) | 3,263 | 3,423 | 3,131 | 3,312 | ||||||||||||
Net revenue retention rate | 98 | % | 92 | % | 97.8 | % | 98.8 | % | ||||||||
Recurring dollar retention rate | 86 | % | 84 | % | 91 | % | 85 | % | ||||||||
Average annual subscription revenue per premium customer, excluding Starter edition customers (in thousands) | $ | 92.2 | $ | 86.4 | $ | 96.5 | $ | 97.0 | ||||||||
Average annual subscription revenue per premium customer for Starter edition customers only (in thousands) | $ | 4.5 | $ | 4.5 | $ | 4.6 | $ | 4.3 | ||||||||
Total backlog, excluding professional services engagements (in millions) | $ | 152.8 | $ | 136.9 | $ | 159.2 | $ | 147.6 | ||||||||
Total backlog to be recognized over next 12 months, excluding professional services engagements (in millions) | $ | 119.8 | $ | 108.8 | $ | 128.7 | $ | 117.1 |
Three Months Ended March 31, | ||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | 2022 | 2021 | |||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||
(in thousands, except share and per share data) | (in thousands, except share and per share data) | |||||||||||||||||||||||
Revenue: | ||||||||||||||||||||||||
Subscription and support revenue | $ | 48,602 | $ | 45,617 | $ | 99,441 | $ | 90,275 | $ | 51,601 | $ | 50,839 | ||||||||||||
Professional services and other revenue | 2,870 | 2,309 | 6,848 | 4,304 | 1,778 | 3,978 | ||||||||||||||||||
Total revenue | 51,472 | 47,926 | 106,289 | 94,579 | 53,379 | 54,817 | ||||||||||||||||||
Cost of revenue: | ||||||||||||||||||||||||
Cost of subscription and support revenue | 14,756 | 17,807 | 30,434 | 34,555 | 16,982 | 15,678 | ||||||||||||||||||
Cost of professional services and other revenue | 2,468 | 2,092 | 5,958 | 3,986 | 1,998 | 3,490 | ||||||||||||||||||
Total cost of revenue | 17,224 | 19,899 | 36,392 | 38,541 | 18,980 | 19,168 | ||||||||||||||||||
Gross profit | 34,248 | 28,027 | 69,897 | 56,038 | 34,399 | 35,649 | ||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||
Research and development | 7,855 | 9,131 | 16,139 | 17,984 | 8,237 | 8,284 | ||||||||||||||||||
Sales and marketing | 18,130 | 13,383 | 34,279 | 27,557 | 18,288 | 16,149 | ||||||||||||||||||
General and administrative | 7,418 | 6,407 | 14,477 | 12,939 | 8,089 | 7,059 | ||||||||||||||||||
Merger-related | 255 | 259 | 255 | 5,768 | 594 | — | ||||||||||||||||||
Other (benefit) expense | — | — | (1,965 | ) | — | 1,149 | (1,965 | ) | ||||||||||||||||
Total operating expenses | 33,658 | 29,180 | 63,185 | 64,248 | 36,357 | 29,527 | ||||||||||||||||||
Income (loss) from operations | 590 | (1,153 | ) | 6,712 | (8,210 | ) | ||||||||||||||||||
Other expense, net | 117 | (27 | ) | (618 | ) | (495 | ) | |||||||||||||||||
(Loss) income from operations | (1,958 | ) | 6,122 | |||||||||||||||||||||
Other (expense), net | (387 | ) | (735 | ) | ||||||||||||||||||||
Income (loss) before income taxes | 707 | (1,180 | ) | 6,094 | (8,705 | ) | ||||||||||||||||||
Provision for income taxes | (163 | ) | 115 | 94 | 443 | |||||||||||||||||||
(Loss) income before income taxes | (2,345 | ) | 5,386 | |||||||||||||||||||||
(Benefit) provision for income | (708 | ) | 257 | |||||||||||||||||||||
Net income (loss) | $ | 870 | $ | (1,295 | ) | $ | 6,000 | $ | (9,148 | ) | ||||||||||||||
Net income (loss) per share—basic and diluted | ||||||||||||||||||||||||
Net (loss) income | $ | (1,637 | ) | $ | 5,130 | |||||||||||||||||||
Net (loss) income per share—basic and diluted | ||||||||||||||||||||||||
Basic | $ | 0.02 | $ | (0.03 | ) | $ | 0.15 | $ | (0.23 | ) | $ | (0.04 | ) | $ | 0.13 | |||||||||
Diluted | $ | 0.02 | $ | (0.03 | ) | $ | 0.14 | $ | (0.23 | ) | $ | (0.04 | ) | $ | 0.12 | |||||||||
Weighted-average shares—basic and diluted | ||||||||||||||||||||||||
Basic | 40,615,149 | 39,291,649 | 40,385,866 | 39,136,394 | 41,436 | 40,154 | ||||||||||||||||||
Diluted | 42,208,933 | 39,291,649 | 42,390,641 | 39,136,394 | 41,436 | 42,480 |
Three Months Ended June 30, | Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | Change | 2022 | 2021 | 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 | $ | 50,694 | 98 | % | $ | 46,941 | 98 | % | $ | 3,753 | 8 | % | $ | 52,772 | 99 | % | $ | 54,022 | 99 | % | $ | (1,250 | ) | (2 | )% | |||||||||||||||||||||||
Volume | 778 | 2 | 985 | 2 | (207 | ) | (21 | ) | 607 | 1 | 795 | 1 | (188 | ) | (24 | ) | ||||||||||||||||||||||||||||||||
Total | $ | 51,472 | 100 | % | $ | 47,926 | 100 | % | $ | 3,546 | 8 | % | $ | 53,379 | 100 | % | $ | 54,817 | 100 | % | $ | (1,438 | ) | (3 | )% | |||||||||||||||||||||||
Three Months Ended June 30, | Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | Change | 2022 | 2021 | 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 | $ | 48,602 | 94 | % | $ | 45,617 | 96 | % | $ | 2,985 | 7 | % | $ | 51,601 | 97 | % | $ | 50,839 | 93 | % | $ | 762 | 1 | % | ||||||||||||||||||||||||
Professional services and other | 2,870 | 6 | 2,309 | 4 | 561 | 24 | 1,778 | 3 | 3,978 | 7 | (2,200 | ) | (55 | ) | ||||||||||||||||||||||||||||||||||
Total | $ | 51,472 | 100 | % | $ | 47,926 | 100 | % | $ | 3,546 | 8 | % | $ | 53,379 | 100 | % | $ | 54,817 | 100 | % | $ | (1,438 | ) | -3 | % | |||||||||||||||||||||||
Three Months Ended June 30, | Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | Change | 2022 | 2021 | 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 | $ | 29,398 | 57 | % | $ | 26,039 | 54 | % | $ | 3,359 | 13 | % | $ | 29,461 | 55 | % | $ | 30,386 | 56 | % | $ | (925 | ) | (3 | )% | |||||||||||||||||||||||
Europe | 9,547 | 19 | 8,427 | 18 | 1,120 | 13 | 9,105 | 17 | 8,923 | 16 | 182 | 2 | ||||||||||||||||||||||||||||||||||||
Japan | 5,370 | 10 | 5,554 | 12 | (184 | ) | (3 | ) | 7,261 | 14 | 7,708 | 14 | (447 | ) | (6 | ) | ||||||||||||||||||||||||||||||||
Asia Pacific | 7,016 | 14 | 7,714 | 16 | (698 | ) | (9 | ) | 7,436 | 14 | 7,659 | 14 | (223 | ) | (3 | ) | ||||||||||||||||||||||||||||||||
Other | 141 | — | 192 | — | (51 | ) | (27 | ) | 116 | — | 141 | — | (25 | ) | (18 | ) | ||||||||||||||||||||||||||||||||
International subtotal | 22,074 | 43 | 21,887 | 46 | 187 | 1 | 23,918 | 45 | 24,431 | 44 | (513 | ) | (2 | ) | ||||||||||||||||||||||||||||||||||
Total | $ | 51,472 | 100 | % | $ | 47,926 | 100 | % | $ | 3,546 | 8 | % | $ | 53,379 | 100 | % | $ | 54,817 | 100 | % | $ | (1,438 | ) | (3 | )% | |||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||||
2022 | 2021 | Change | ||||||||||||||||||||||
Cost of Revenue | Amount | Percentage of Related Revenue | Amount | Percentage of Related Revenue | Amount | % | ||||||||||||||||||
(in thousands, except percentages) | ||||||||||||||||||||||||
Subscription and support | $ | 16,982 | 33 | % | $ | 15,678 | 31 | % | $ | 1,304 | 8 | % | ||||||||||||
Professional services and other | 1,998 | 112 | 3,490 | 88 | (1,492 | ) | (43 | ) | ||||||||||||||||
Total | $ | 18,980 | 36 | % | $ | 19,168 | 35 | % | $ | (188 | ) | (1 | )% | |||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||||
2022 | 2021 | Change | ||||||||||||||||||||||
Gross Profit | Amount | Percentage of Related Revenue | Amount | Percentage of Related Revenue | Amount | % | ||||||||||||||||||
(in thousands, except percentages) | ||||||||||||||||||||||||
Subscription and support | $ | 34,619 | 67 | % | $ | 35,161 | 69 | % | $ | (542 | ) | (2 | )% | |||||||||||
Professional services and other | (220 | ) | (12 | ) | 488 | 12 | (708 | ) | (145 | )% | ||||||||||||||
Total | $ | 34,399 | 64 | % | $ | 35,649 | 65 | % | $ | (1,250 | ) | (4 | )% | |||||||||||
Three Months Ended June 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 | $ | 14,756 | 30 | % | $ | 17,807 | 39 | % | $ | (3,051 | ) | (17 | )% | |||||||||||
Professional services and other | 2,468 | 86 | 2,092 | 91 | 376 | 18 | ||||||||||||||||||
Total | $ | 17,224 | 33 | % | $ | 19,899 | 42 | % | $ | (2,675 | ) | (13 | )% | |||||||||||
Three Months Ended June 30, | ||||||||||||||||||||||||
2021 | 2020 | Change | ||||||||||||||||||||||
Gross Profit | Amount | Percentage of Related Revenue | Amount | Percentage of Related Revenue | Amount | % | ||||||||||||||||||
(in thousands, except percentages) | ||||||||||||||||||||||||
Subscription and support | $ | 33,846 | 70 | % | $ | 27,810 | 61 | % | $ | 6,036 | 22 | % | ||||||||||||
Professional services and other | 402 | 14 | 217 | 9 | 185 | 85 | % | |||||||||||||||||
Total | $ | 34,248 | 67 | % | $ | 28,027 | 58 | % | $ | 6,221 | 22 | % | ||||||||||||
Three Months Ended June 30, | Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | Change | 2022 | 2021 | 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 | $ | 7,855 | 15 | % | $ | 9,131 | 19 | % | $ | (1,276 | ) | (14 | )% | $ | 8,237 | 15 | % | $ | 8,284 | 15 | % | $ | (47 | ) | (1 | )% | ||||||||||||||||||||||
Sales and marketing | 18,130 | 35 | 13,383 | 28 | 4,747 | 35 | 18,288 | 34 | 16,149 | 29 | 2,139 | 13 | ||||||||||||||||||||||||||||||||||||
General and administrative | 7,418 | 14 | 6,407 | 13 | 1,011 | 16 | 8,089 | 15 | 7,059 | 13 | 1,030 | 15 | ||||||||||||||||||||||||||||||||||||
Merger-related | 255 | — | 259 | 1 | (4 | ) | (2 | ) | 594 | 1 | — | — | 594 | N/A | ||||||||||||||||||||||||||||||||||
Other (benefit) expense | 1,149 | 2 | (1,965 | ) | (4 | ) | 3,114 | (158 | ) | |||||||||||||||||||||||||||||||||||||||
Total | $ | 33,658 | 65 | % | $ | 29,180 | 61 | % | $ | 4,478 | 15 | % | $ | 36,357 | 68 | % | $ | 29,527 | 54 | % | $ | 6,830 | 23 | % | ||||||||||||||||||||||||
Six Months Ended June 30, | ||||||||||||||||||||||||
2021 | 2020 | Change | ||||||||||||||||||||||
Revenue by Product Line | Amount | Percentage of Revenue | Amount | Percentage of Revenue | Amount | % | ||||||||||||||||||
(in thousands, except percentages) | ||||||||||||||||||||||||
Premium | $ | 104,716 | 99 | % | $ | 92,728 | 98 | % | $ | 11,988 | 13 | % | ||||||||||||
Volume | 1,573 | 1 | 1,851 | 2 | (278 | ) | (15 | ) | ||||||||||||||||
Total | $ | 106,289 | 100 | % | $ | 94,579 | 100 | % | $ | 11,710 | 12 | % | ||||||||||||
Six Months Ended June 30, | ||||||||||||||||||||||||
2021 | 2020 | Change | ||||||||||||||||||||||
Revenue by Type | Amount | Percentage of Revenue | Amount | Percentage of Revenue | Amount | % | ||||||||||||||||||
(in thousands, except percentages) | ||||||||||||||||||||||||
Subscription and support | $ | 99,441 | 94 | % | $ | 90,275 | 95 | % | $ | 9,166 | 10 | % | ||||||||||||
Professional services and other | 6,848 | 6 | 4,304 | 5 | 2,544 | 59 | ||||||||||||||||||
Total | $ | 106,289 | 100 | % | $ | 94,579 | 100 | % | $ | 11,710 | 12 | % | ||||||||||||
Six Months Ended June 30, | ||||||||||||||||||||||||
2021 | 2020 | Change | ||||||||||||||||||||||
Revenue by Geography | Amount | Percentage of Revenue | Amount | Percentage of Revenue | Amount | % | ||||||||||||||||||
(in thousands, except percentages) | ||||||||||||||||||||||||
North America | $ | 59,784 | 57 | % | $ | 51,038 | 54 | % | $ | 8,746 | 17 | % | ||||||||||||
Europe | 18,470 | 17 | 16,888 | 18 | 1,582 | 9 | ||||||||||||||||||
Japan | 13,078 | 12 | 11,656 | 12 | 1,422 | 12 | ||||||||||||||||||
Asia Pacific | 14,675 | 14 | 14,584 | 16 | 91 | 1 | ||||||||||||||||||
Other | 282 | — | 413 | — | (131 | ) | (32 | ) | ||||||||||||||||
International subtotal | 46,505 | 43 | 43,541 | 46 | 2,964 | 7 | ||||||||||||||||||
Total | $ | 106,289 | 100 | % | $ | 94,579 | 100 | % | $ | 11,710 | 12 | % | ||||||||||||
Six Months Ended June 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 | $ | 30,434 | 31 | % | $ | 34,555 | 38 | % | $ | (4,121 | ) | (12 | )% | |||||||||||
Professional services and other | 5,958 | 87 | 3,986 | 93 | 1,972 | 49 | ||||||||||||||||||
Total | $ | 36,392 | 34 | % | $ | 38,541 | 41 | % | $ | (2,149 | ) | (6 | )% | |||||||||||
Six Months Ended June 30, | ||||||||||||||||||||||||
2021 | 2020 | Change | ||||||||||||||||||||||
Gross Profit | Amount | Percentage of Related Revenue | Amount | Percentage of Related Revenue | Amount | % | ||||||||||||||||||
(in thousands, except percentages) | ||||||||||||||||||||||||
Subscription and support | $ | 69,007 | 69 | % | $ | 55,720 | 62 | % | $ | 13,287 | 24 | % | ||||||||||||
Professional services and other | 890 | 13 | 318 | 7 | 572 | 180 | ||||||||||||||||||
Total | $ | 69,897 | 66 | % | $ | 56,038 | 59 | % | $ | 13,859 | 25 | % | ||||||||||||
Six Months Ended June 30, | ||||||||||||||||||||||||
2021 | 2020 | Change | ||||||||||||||||||||||
Operating Expenses | Amount | Percentage of Revenue | Amount | Percentage of Revenue | Amount | % | ||||||||||||||||||
(in thousands, except percentages) | ||||||||||||||||||||||||
Research and development | $ | 16,139 | 15 | % | $ | 17,984 | 19 | % | $ | (1,845 | ) | (10 | )% | |||||||||||
Sales and marketing | 34,279 | 32 | 27,557 | 29 | 6,722 | 24 | ||||||||||||||||||
General and administrative | 14,477 | 14 | 12,939 | 14 | 1,538 | 12 | ||||||||||||||||||
Merger-related | 255 | 0 | 5,768 | 6 | (5,513 | ) | (96 | ) | ||||||||||||||||
Other (benefit) expense | (1,965 | ) | (4 | ) | — | — | (1,965 | ) | N/A | |||||||||||||||
Total | $ | 63,185 | 59 | % | $ | 64,248 | 68 | % | $ | (1,063 | ) | (2 | )% | |||||||||||
Six Months Ended June 30, | Three Months Ended March 31, | |||||||||||||||
Condensed Consolidated Statements of Cash Flow Data | 2021 | 2020 | 2022 | 2021 | ||||||||||||
(in thousands) | ||||||||||||||||
Cash flows provided by operating activities | $ | 7,377 | $ | 5,300 | ||||||||||||
(in thousands) | ||||||||||||||||
Cash flows used in operating activities | $ | (690 | ) | $ | (604 | ) | ||||||||||
Cash flows used in investing activities | $ | (3,785 | ) | $ | (5,036 | ) | $ | (17,942 | ) | $ | (1,522 | ) | ||||
Cash flows provided by financing activities | $ | 157 | $ | 4,965 | $ | 100 | $ | 533 |
27 | ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK (in thousands, except share and per share data, unless otherwise noted) |
Three Months Ended June 30, | ||||||||
2021 | 2020 | |||||||
Revenues generated in locations outside the United States | 47 | % | 50 | % | ||||
Revenues in currencies other than the United States dollar (1) | 27 | % | 30 | % | ||||
Expenses in currencies other than the United States dollar (1) | 17 | % | 15 | % |
Six Months Ended June 30, | Three Months Ended March 31, | |||||||||||||||
2021 | 2020 | 2022 | 2021 | |||||||||||||
Revenues generated in locations outside the United States | 47 | % | 50 | % | 48 | % | 48 | % | ||||||||
Revenues in currencies other than the United States dollar (1) | 28 | % | 30 | % | 29 | % | 29 | % | ||||||||
Expenses in currencies other than the United States dollar (1) | 16 | % | 15 | % | 16 | % | 17 | % |
(1) | Percentage of revenues and expenses denominated in foreign currency for the three ended March 31, 2022 and |
Three Months Ended June 30, 2021 | Three Months Ended June 30, 2020 | |||||||||||||||
Revenues | Expenses | Revenues | Expenses | |||||||||||||
Euro | 8 | % | 1 | % | 8 | % | 1 | % | ||||||||
British pound | 6 | 5 | 6 | 5 | ||||||||||||
Japanese Yen | 10 | 3 | 12 | 2 | ||||||||||||
Other | 3 | 8 | 4 | 7 | ||||||||||||
Total | 27 | % | 17 | % | 30 | % | 15 | % |
Six Months Ended June 30, 2021 | Six Months Ended June 30, 2020 | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | |||||||||||||||||||||||||||||
Revenues | Expenses | Revenues | Expenses | Revenues | Expenses | Revenues | Expenses | |||||||||||||||||||||||||
Euro | 7 | % | 0 | % | 8 | % | 1 | % | 7 | % | 0 | % | 7 | % | 0 | % | ||||||||||||||||
British pound | 6 | 5 | 6 | 5 | 5 | 6 | 6 | 6 | ||||||||||||||||||||||||
Japanese Yen | 12 | 3 | 12 | 2 | 14 | 2 | 14 | 3 | ||||||||||||||||||||||||
Other | 3 | 8 | 4 | 7 | 3 | 8 | 2 | 8 | ||||||||||||||||||||||||
Total | 28 | % | 16 | % | 30 | % | 15 | % | 29 | % | 16 | % | 29 | % | 17 | % |
We do not believe that inflation has had a material effect on our business. However, if our costs, in particular personnel, sales and marketing and hosting costs, were to become subject to significant inflationary pressures, we may not be able to fully offset such higher costs through price increases. Our inability or failure to do so could harm our business, operating results and financial condition. | ITEM 4. CONTROLS AND PROCEDURES |
ITEM 1. LEGAL PROCEEDINGS |
ITEM 1A. RISK FACTORS |
ITEM 5. OTHER INFORMATION |
ITEM 6. EXHIBITS |
(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. |
(4) | Filed as Exhibit 99.1 to the Registrant’s |
^ | Furnished herewith. |
BRIGHTCOVE INC. | ||||||
(Registrant) | ||||||
Date: | By: | |||||
/s/ | ||||||
Marc DeBevoise | ||||||
Chief Executive Officer | ||||||
(Principal Executive Officer) | ||||||
Date: | By: | |||||
/s/ Robert Noreck | ||||||
Robert Noreck | ||||||
Chief Financial Officer | ||||||
(Principal Financial Officer) |