Brightcove (BCOV) 10-Q 29 Oct 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Oct. 26, 2015
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3
Entity Registrant Name	BRIGHTCOVE INC
Entity Central Index Key	1,313,275
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		32,671,329

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 23,788	$ 22,916
Accounts receivable, net of allowance of $310 and $181 at September 30, 2015 and December 31, 2014, respectively	20,110	21,463
Prepaid expenses and other current assets	4,730	4,342
Deferred tax asset	37	109
Total current assets	48,665	48,830
Property and equipment, net	10,519	10,372
Intangible assets, net	14,545	16,898
Goodwill	50,776	50,776
Restricted cash, net of current portion	201	201
Other assets	984	507
Total assets	125,690	127,584
Current liabilities:
Accounts payable	2,573	1,618
Accrued expenses	10,554	11,722
Capital lease liability	918	$ 1,159
Equipment financing	704
Deferred revenue	30,419	$ 29,640
Total current liabilities	45,168	44,139
Deferred revenue, net of current portion	269	64
Other liabilities	2,967	2,618
Total liabilities	$ 48,404	$ 46,821
Commitments and contingencies (Note 9)
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; 32,669,772 and 32,424,554 shares issued and outstanding at September 30, 2015 and December 31, 2014, respectively	$ 33	$ 32
Additional paid-in capital	218,859	214,524
Accumulated other comprehensive loss	(837)	(776)
Accumulated deficit	(140,769)	(133,017)
Total stockholders' equity	77,286	80,763
Total liabilities and stockholders' equity	$ 125,690	$ 127,584

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Condensed Consolidated Balance Sheets [Abstract]
Allowance for accounts receivable	$ 310	$ 181
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	32,669,772	32,424,554
Common stock, shares outstanding	32,669,772	32,424,554

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Revenue:
Subscription and support revenue	$ 33,184	$ 30,450	$ 96,912	$ 89,754
Professional services and other revenue	653	1,077	2,658	3,881
Total revenue	33,837	31,527	99,570	93,635
Cost of revenue:
Cost of subscription and support revenue	10,314	9,467	31,017	28,096
Cost of professional services and other revenue	1,198	1,352	3,645	4,414
Total cost of revenue	11,512	10,819	34,662	32,510
Gross profit	22,325	20,708	64,908	61,125
Operating expenses:
Research and development	7,233	7,187	22,320	20,548
Sales and marketing	11,664	11,273	34,406	34,714
General and administrative	4,391	4,735	14,761	14,597
Merger-related	62	623	138	3,011
Total operating expenses	23,350	23,818	71,625	72,870
Loss from operations	(1,025)	(3,110)	(6,717)	(11,745)
Other expense, net	(127)	(614)	(780)	(1,020)
Loss before income taxes	(1,152)	(3,724)	(7,497)	(12,765)
Provision for income taxes	123	81	255	204
Other income (expense):
Net loss	$ (1,275)	$ (3,805)	$ (7,752)	$ (12,969)
Net loss per share - basic and diluted	$ (0.04)	$ (0.12)	$ (0.24)	$ (0.41)
Weighted-average number of common shares used in computing net loss per share	32,636,084	32,247,453	32,560,478	31,814,570
Cost of Subscription and Support Revenue [Member]
Stock-based compensation included in above line items:
Stock-based compensation	$ 30	$ 37	$ 101	$ 147
Amortization of acquired intangible assets included in above line items:
Amortization of acquired intangible assets	508	509	1,523	1,439
Cost of Professional Services and Other Revenue [Member]
Stock-based compensation included in above line items:
Stock-based compensation	79	53	131	121
Research and Development [Member]
Stock-based compensation included in above line items:
Stock-based compensation	400	376	1,060	950
Amortization of acquired intangible assets included in above line items:
Amortization of acquired intangible assets	31	36	94	108
Sales and marketing [Member]
Stock-based compensation included in above line items:
Stock-based compensation	843	533	1,764	1,678
Amortization of acquired intangible assets included in above line items:
Amortization of acquired intangible assets	235	282	736	863
General and Administrative [Member]
Stock-based compensation included in above line items:
Stock-based compensation	$ 171	$ 527	$ 1,256	$ 1,877

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Condensed Consolidated Statements of Comprehensive Loss [Abstract]
Net loss	$ (1,275)	$ (3,805)	$ (7,752)	$ (12,969)
Other comprehensive income (loss):
Foreign currency translation adjustments	15	(239)	61	(42)
Comprehensive loss	$ (1,260)	$ (4,044)	$ (7,691)	$ (13,011)

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Operating activities
Net loss	$ (7,752)	$ (12,969)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	6,898	6,114
Stock-based compensation	4,312	4,773
Provision for reserves on accounts receivable	$ 317	122
Amortization of premium on investments		1
Loss on disposal of equipment	$ 45	92
Changes in assets and liabilities, net of effect of acquisition:
Accounts receivable	1,050	2,399
Prepaid expenses and other current assets	(441)	(1,005)
Other assets	(478)	1,185
Accounts payable	1,001	(3,097)
Accrued expenses	(1,660)	(4,126)
Deferred revenue	957	4,861
Net cash provided by (used in) operating activities	$ 4,249	(1,650)
Investing activities
Cash paid for acquisition, net of cash acquired		(9,100)
Maturities of investments		3,060
Purchases of property and equipment	$ (2,479)	(2,500)
Capitalized internal-use software costs	$ (1,020)	(927)
Decrease in restricted cash		113
Net cash used in investing activities	$ (3,499)	(9,354)
Financing activities
Proceeds from exercise of stock options	72	$ 584
Payments of withholding tax on RSU vesting	(48)
Proceeds from equipment financing	1,704
Payments on equipment financing	(576)
Payments under capital lease obligation	(988)	$ (860)
Net cash provided by (used in) financing activities	164	(276)
Effect of exchange rate changes on cash	(42)	(62)
Net increase (decrease) in cash and cash equivalents	872	(11,342)
Cash and cash equivalents at beginning of period	22,916	33,047
Cash and cash equivalents at end of period	$ 23,788	21,705
Supplemental disclosure of non-cash investing activities
Fair value of shares issued for acquisition of a business		$ 30,615
Supplemental disclosure of non-cash financing activities
Purchase of equipment and support under capital lease	$ 875
Supplemental disclosure of cash flow related to asset purchase agreement in connection with the asset purchase agreement with Unicorn Media, Inc. on January 31, 2014, the following transactions occurred:
Fair value of assets acquired		$ 44,373
Liabilities assumed related to acquisition		(4,645)
Total purchase price		39,728
Less fair value of common stock issued in connection with acquisition		(30,615)
Less cash and cash equivalents acquired		(13)
Cash paid for acquisition, net of cash acquired		$ 9,100

Business Description and Basis

Business Description and Basis of Presentation	9 Months Ended
	Sep. 30, 2015
Business Description and Basis of Presentation [Abstract]
Business Description and Basis of Presentation	1. Business Description and Basis of Presentation Business Description Brightcove Inc. (the Company) is a leading global provider of cloud services for video which enable its customers to publish and distribute video to Internet-connected devices quickly, easily and in a cost-effective and high-quality manner. The Company is headquartered in Boston, Massachusetts and was incorporated in the state of Delaware on August 24, 2004. At September 30, 2015, the Company had nine wholly-owned subsidiaries: Brightcove UK Ltd, Brightcove Singapore Pte. Ltd., Brightcove Korea, Brightcove Australia Pty Ltd, Brightcove Holdings, Inc., Brightcove Kabushiki Kaisha (Brightcove KK), Zencoder Inc. (Zencoder), Brightcove FZ-LLC, and Cacti Acquisition LLC. Basis of Presentation The accompanying interim condensed consolidated financial statements are unaudited. These condensed consolidated financial statements and notes should be read in conjunction with the audited consolidated financial statements and related notes, together with Management's Discussion and Analysis of Financial Condition and Results of Operations, contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2014. The accompanying unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, the unaudited condensed consolidated financial statements and notes have been prepared on the same basis as the audited consolidated financial statements for the year ended December 31, 2014 contained in the Company's Annual Report on Form 10-K and include all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of the Company's financial position for the three and nine months ended September 30, 2015 and 2014. These interim periods are not necessarily indicative of the results to be expected for any other interim period or the full year. The Company considers events or transactions that occur after the balance sheet date but prior to the issuance of the financial statements to provide additional evidence for certain estimates or to identify matters that require additional disclosure. Subsequent events have been evaluated as required. The Company has evaluated all subsequent events and determined that there are no material recognized or unrecognized subsequent events requiring disclosure, other than those disclosed in this Report on Form 10-Q. The accompanying condensed consolidated financial statements reflect the application of certain significant accounting policies as described below and elsewhere in these notes to the condensed consolidated financial statements. As of September 30, 2015, the Company's significant accounting policies and estimates, which are detailed in the Company's Annual Report on Form 10-K for the year ended December 31, 2014, have not changed.

Concentration of Credit Risk

Concentration of Credit Risk	9 Months Ended
	Sep. 30, 2015
Concentration of Credit Risk [Abstract]
Concentration of Credit Risk	2. Concentration of Credit Risk The Company has no significant off-balance sheet risk, such as foreign exchange contracts, option contracts or other foreign hedging arrangements. Financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of cash, cash equivalents and trade accounts receivable. The Company maintains its cash and cash equivalents principally with accredited financial institutions of high credit standing. Although the Company deposits its cash with multiple financial institutions, its deposits, at times, may exceed federally insured limits. The Company routinely assesses the creditworthiness of its customers. The Company generally has not experienced any material losses related to receivables from individual customers, or groups of customers. The Company does not require collateral from its customers. Due to these factors, no additional credit risk beyond amounts provided for collection losses is believed by management to be probable in the Company's accounts receivable. At September 30, 2015 and December 31, 2014, no individual customer accounted for 10% or more of net accounts receivable. For the three and nine months ended September 30, 2015 and 2014, no individual customer accounted for 10% or more of total revenue.

Concentration of Other Risks

Concentration of Other Risks	9 Months Ended
	Sep. 30, 2015
Concentration of Other Risks [Abstract]
Concentration of Other Risks	3. Concentration of Other Risks The Company is dependent on certain content delivery network providers who provide digital media delivery functionality enabling the Company's on-demand application service to function as intended for the Company's customers and ultimate end-users. The disruption of these services could have a material adverse effect on the Company's business, financial position, and results of operations.

Cash and Cash Equivalents

Cash and Cash Equivalents	9 Months Ended
	Sep. 30, 2015
Cash and Cash Equivalents
Cash and Cash Equivalents	4. Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less at the date of purchase to be cash equivalents. Investments not classified as cash equivalents with maturities less than one year from the balance sheet date are classified as short-term investments, while investments with maturities in excess of one year from the balance sheet date are classified as long-term investments. Management determines the appropriate classification of investments at the time of purchase, and re-evaluates such determination at each balance sheet date. Cash and cash equivalents primarily consist of cash on deposit with banks and amounts held in interest-bearing money market accounts. Cash equivalents are carried at cost, which approximates their fair market value. Cash and cash equivalents as of September 30, 2015 consist of the following: September 30, 2015 Description Contracted Maturity Amortized Cost Fair Market Balance Per Cash Demand $ 14,211 $ 14,211 $ 14,211 Money market funds Demand 9,577 9,577 9,577 Total cash and cash equivalents $ 23,788 $ 23,788 $ 23,788 Cash and cash equivalents as of December 31, 2014 consist of the following: December 31, 2014 Description Contracted Maturity Amortized Cost Fair Market Balance Per Cash Demand $ 13,342 $ 13,342 $ 13,342 Money market funds Demand 9,574 9,574 9,574 Total cash and cash equivalents $ 22,916 $ 22,916 $ 22,916

Net Loss per Share

Net Loss per Share	9 Months Ended
	Sep. 30, 2015
Net Loss per Share [Abstract]
Net Loss per Share	5. Net Loss per Share The following potentially dilutive common stock equivalent shares have been excluded from the computation of weighted-average shares outstanding as their effect would have been anti-dilutive (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Options outstanding 4,181 3,979 4,133 3,731 Restricted stock units outstanding 1,094 985 982 1,010 Warrants 28 28 28 28

Fair Value of Financial Instrum

Fair Value of Financial Instruments	9 Months Ended
	Sep. 30, 2015
Fair Value of Financial Instruments [Abstract]
Fair Value of Financial Instruments	6. Fair Value of Financial Instruments The following tables set forth the Company's financial instruments carried at fair value using the lowest level of input as of September 30, 2015 and December 31, 2014: September 30, 2015 Quoted Prices in Active Items (Level 1) Significant Other Significant Total Assets: Money market funds $ 9,577 $ - $ - $ 9,577 Restricted cash - 201 - 201 Total assets $ 9,577 $ 201 $ - $ 9,778 December 31, 2014 Quoted Prices in Active Significant Other Significant Total Assets: Money market funds $ 9,574 $ - $ - $ 9,574 Restricted cash - 201 - 201 Total assets $ 9,574 $ 201 $ - $ 9,775

Stock-based Compensation

Stock-based Compensation	9 Months Ended
	Sep. 30, 2015
Stock-based Compensation [Abstract]
Stock-based Compensation	7. Stock-based Compensation The fair value of stock options granted was estimated at the date of grant using the following weighted-average assumptions: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Expected life in years 6.3 6.3 6.2 6.2 Risk-free interest rate 1.90 % 2.19 % 1.85 % 2.18 % Volatility 46 % 51 % 47 % 53 % Dividend yield — — — — Weighted-average fair value of stock options granted $ 2.49 $ 3.06 $ 3.25 $ 4.41 The Company recorded stock-based compensation expense of $ 1,523 1,526 4,312 4,773 10,329 2.83 Number of Exercise Price Weighted Weighted Aggregate Intrinsic Value (1) Outstanding at December 31, 2014 4,077,074 $ 0.31 16.88 $ 7.02 Granted 695,749 4.92 8.13 6.83 Exercised (44,932 ) 0.31 7.21 1.60 $ 251 Canceled (479,919 ) 5.53 16.88 9.04 Outstanding at September 30, 2015 4,247,972 $ 0.31 16.88 $ 6.82 6.55 $ 3,563 Exercisable at September 30, 2015 2,309,676 $ 0.31 16.88 $ 6.07 4.75 $ 3,563 Vested or expected to vest at September 30, 2015 (2) 3,726,242 $ 0.31 16.88 $ 6.74 6.24 $ 3,563 (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, 2015 of $ 4.92 (2) This represents the number of vested options as of September 30, 2015 plus the number of unvested options expected to vest as of September 30, 2015 based on the unvested options outstanding at September 30, 2015 adjusted for an estimated forfeiture rate. The following table summarizes the restricted stock unit award activity during the nine months ended September 30, 2015: Shares Weighted Unvested by December 31, 2014 915,458 $ 8.61 Granted 644,581 5.39 Vested and issued (200,286 ) 6.90 Canceled (105,464 ) 9.51 Unvested by September 30, 2015 1,254,289 $ 7.13

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2015
Income Taxes [Abstract]
Income Taxes	8. Income Taxes For the three months ended September 30, 2015 and 2014, the Company recorded income tax expense of $ 123 81 255 204 The Company has evaluated the positive and negative evidence bearing upon the realizability of its U.S. net deferred tax assets. As required by the provisions of ASC 740, Income Taxes

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2015
Commitments and Contingencies [Abstract]
Commitments and Contingencies	9. Commitments and Contingencies Leases The Company's contractual obligations as of December 31, 2014 are summarized in our Annual Report on Form 10-K for the year ended December 31, 2014. In addition to the obligations outlined in the Company's Annual Report on Form 10-K, the Company entered into capital lease arrangements for computer equipment and support for a total obligation of $ 924 58 88 Year Ending December 31 Capital Lease Commitments 2015 $ 78 2016 311 2017 311 2018 137 Less – interest on capital leases 45 $ 792 At September 30, 2015, the gross book value of total assets under these incremental capital leases was $ 875 116 Legal Matters The Company, from time to time, is party to litigation arising in the ordinary course of business. Management does not believe that the outcome of these claims will have a material adverse effect on the consolidated financial position, results of operations or cash flows of the Company based on the status of proceedings at this time. On August 27, 2012, a complaint was filed by Blue Spike, LLC naming the Company in a patent infringement case (Blue Spike, LLC v. Audible Magic Corporation, et al., United States District Court for the Eastern District of Texas). The complaint alleges that the Company has infringed U.S. Patent No. 7,346,472 with a listed issue date of March 18, 2008, entitled “Method and Device for Monitoring and Analyzing Signals,” U.S. Patent No. 7,660,700 with a listed issue date of February 9, 2010, entitled “Method and Device for Monitoring and Analyzing Signals,” U.S. Patent No. 7,949,494 with a listed issue date of May 24, 2011, entitled “Method and Device for Monitoring and Analyzing Signals” and U.S. Patent No. 8,214,175 with a listed issue date of July 3, 2012, entitled “Method and Device for Monitoring and Analyzing Signals.” The complaint seeks an injunction enjoining infringement, damages and pre- and post-judgment costs and interest. The Company answered and filed counterclaims against Blue Spike on December 3, 2012. The Company amended its answer and counterclaims on July 15, 2013. This complaint is subject to indemnification by one of the Company's vendors. The Company cannot yet determine whether it is probable that a loss will be incurred in connection with this complaint, nor can the Company reasonably estimate the potential loss, if any. Guarantees and Indemnification Obligations The Company typically enters into indemnification agreements in the ordinary course of business. Pursuant to these agreements, the Company indemnifies and agrees to reimburse the indemnified party for losses and costs incurred by the indemnified party, generally the Company's customers, in connection with patent, copyright, trade secret, or other intellectual property or personal right infringement claim by third parties with respect to the Company's technology. The term of these indemnification agreements is generally perpetual after execution of the agreement. Based on when customers first subscribe for the Company's service, the maximum potential amount of future payments the Company could be required to make under certain of these indemnification agreements is unlimited, however, more recently the Company has typically limited the maximum potential value of such potential future payments in relation to the value of the contract. Based on historical experience and information known as of September 30, 2015, the Company has not incurred any costs for the above guarantees and indemnities. The Company has received requests for indemnification from customers in connection with patent infringement suits brought against the customer by a third party. To date, the Company has not agreed that the requested indemnification is required by the Company's contract with any such customer. In certain circumstances, the Company warrants that its products and services will perform in all material respects in accordance with its standard published specification documentation in effect at the time of delivery of the licensed products and services to the customer for the warranty period of the product or service. To date, the Company has not incurred significant expense under its warranties and, as a result, the Company believes the estimated fair value of these agreements is immaterial.

Debt

Debt	9 Months Ended
	Sep. 30, 2015
Debt [Abstract]
Debt	10. Debt On March 31, 2011 8.0 80 1.5 March 31, 2013 April 29, 2013 8.0 March 30, 2015 On October 3, 2014 10.0 20.0 12.5 25.0 0.25 October 3, 2016 1.5 0.75 no Under the Modification Agreement, the Company must comply with certain financial covenants, including maintaining a minimum asset coverage ratio, a minimum net income threshold based on non-GAAP operating measures and a minimum net cash balance at certain points throughout the year. The interest rate will increase to the prime rate plus 2.25 On June 1, 2015 1.7 two May 31, 2017 1.1

Segment Information

Segment Information	9 Months Ended
	Sep. 30, 2015
Segment Information [Abstract]
Segment Information	11. Segment Information Geographic Data Total revenue from unaffiliated customers by geographic area, based on the location of the customer, was as follows: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Revenue: North America $ 22,118 $ 19,254 $ 63,636 $ 55,749 Europe 6,049 7,451 19,235 23,808 Japan 2,249 2,181 6,294 6,114 Asia Pacific 3,035 2,383 9,144 7,259 Other 386 258 1,261 705 Total revenue $ 33,837 $ 31,527 $ 99,570 $ 93,635 North America is comprised of revenue from the United States, Canada and Mexico. During the three months ended September 30, 2015 and 2014, revenue from customers located in the United States was $ 20,652 17,797 59,403 51,533 As of September 30, 2015 and December 31, 2014, property and equipment at locations outside the U.S. was not material.

Recently Issued and Adopted Acc

Recently Issued and Adopted Accounting Standards	9 Months Ended
	Sep. 30, 2015
Recently Issued and Adopted Accounting Standards [Abstract]
Recently Issued and Adopted Accounting Standards	12. Recently Issued and Adopted Accounting Standards In May 2014, the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board jointly issued Accounting Standards Update (ASU) No. 2014-9, Revenue from Contracts with Customers In August 2014, the FASB issued ASU No. 2014-15, Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern. In February 2015, the FASB issued updated accounting guidance on consolidation requirements. This update changes the guidance with respect to the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. This guidance is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015, with early adoption permitted. The Company does not expect adoption of this guidance will have a material impact on our financial statements. In April 2015, the FASB issued ASU 2015-03, Interest – Imputation of Interest (Subtopic 835-30), Simplifying the Presentation of Debt Issuance Costs

Business Description and Basi19

Business Description and Basis of Presentation (Policies)	9 Months Ended
	Sep. 30, 2015
Business Description and Basis of Presentation [Abstract]
Business Description	Business Description Brightcove Inc. (the Company) is a leading global provider of cloud services for video which enable its customers to publish and distribute video to Internet-connected devices quickly, easily and in a cost-effective and high-quality manner. The Company is headquartered in Boston, Massachusetts and was incorporated in the state of Delaware on August 24, 2004. At September 30, 2015, the Company had nine wholly-owned subsidiaries: Brightcove UK Ltd, Brightcove Singapore Pte. Ltd., Brightcove Korea, Brightcove Australia Pty Ltd, Brightcove Holdings, Inc., Brightcove Kabushiki Kaisha (Brightcove KK), Zencoder Inc. (Zencoder), Brightcove FZ-LLC, and Cacti Acquisition LLC.
Basis of Presentation	Basis of Presentation The accompanying interim condensed consolidated financial statements are unaudited. These condensed consolidated financial statements and notes should be read in conjunction with the audited consolidated financial statements and related notes, together with Management's Discussion and Analysis of Financial Condition and Results of Operations, contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2014. The accompanying unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, the unaudited condensed consolidated financial statements and notes have been prepared on the same basis as the audited consolidated financial statements for the year ended December 31, 2014 contained in the Company's Annual Report on Form 10-K and include all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of the Company's financial position for the three and nine months ended September 30, 2015 and 2014. These interim periods are not necessarily indicative of the results to be expected for any other interim period or the full year. The Company considers events or transactions that occur after the balance sheet date but prior to the issuance of the financial statements to provide additional evidence for certain estimates or to identify matters that require additional disclosure. Subsequent events have been evaluated as required. The Company has evaluated all subsequent events and determined that there are no material recognized or unrecognized subsequent events requiring disclosure, other than those disclosed in this Report on Form 10-Q. The accompanying condensed consolidated financial statements reflect the application of certain significant accounting policies as described below and elsewhere in these notes to the condensed consolidated financial statements. As of September 30, 2015, the Company's significant accounting policies and estimates, which are detailed in the Company's Annual Report on Form 10-K for the year ended December 31, 2014, have not changed.

Cash and Cash Equivalents(Table

Cash and Cash Equivalents(Tables)	9 Months Ended
	Sep. 30, 2015
Cash and Cash Equivalents
Schedule of Cash and Cash Equivalents	September 30, 2015 Description Contracted Maturity Amortized Cost Fair Market Balance Per Cash Demand $ 14,211 $ 14,211 $ 14,211 Money market funds Demand 9,577 9,577 9,577 Total cash and cash equivalents $ 23,788 $ 23,788 $ 23,788 December 31, 2014 Description Contracted Maturity Amortized Cost Fair Market Balance Per Cash Demand $ 13,342 $ 13,342 $ 13,342 Money market funds Demand 9,574 9,574 9,574 Total cash and cash equivalents $ 22,916 $ 22,916 $ 22,916

Net Loss per Share (Tables)

Net Loss per Share (Tables)	9 Months Ended
	Sep. 30, 2015
Net Loss per Share [Abstract]
Potentially Dilutive Common Stock Equivalent Shares Excluded from Computation of Weighted-Average Shares Outstanding	Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Options outstanding 4,181 3,979 4,133 3,731 Restricted stock units outstanding 1,094 985 982 1,010 Warrants 28 28 28 28

Fair Value of Financial Instr22

Fair Value of Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2015
Fair Value of Financial Instruments [Abstract]
Company's Financial Instruments Carried at Fair Value Using Lowest Level of Input	September 30, 2015 Quoted Prices in Active Items (Level 1) Significant Other Significant Total Assets: Money market funds $ 9,577 $ - $ - $ 9,577 Restricted cash - 201 - 201 Total assets $ 9,577 $ 201 $ - $ 9,778 December 31, 2014 Quoted Prices in Active Significant Other Significant Total Assets: Money market funds $ 9,574 $ - $ - $ 9,574 Restricted cash - 201 - 201 Total assets $ 9,574 $ 201 $ - $ 9,775

Stock-based Compensation (Table

Stock-based Compensation (Tables)	9 Months Ended
	Sep. 30, 2015
Stock-based Compensation [Abstract]
Weighted-Average Assumptions	Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Expected life in years 6.3 6.3 6.2 6.2 Risk-free interest rate 1.90 % 2.19 % 1.85 % 2.18 % Volatility 46 % 51 % 47 % 53 % Dividend yield — — — — Weighted-average fair value of stock options granted $ 2.49 $ 3.06 $ 3.25 $ 4.41
Summary of Status of Company's Stock Option Activity	Number of Exercise Price Weighted Weighted Aggregate Intrinsic Value (1) Outstanding at December 31, 2014 4,077,074 $ 0.31 16.88 $ 7.02 Granted 695,749 4.92 8.13 6.83 Exercised (44,932 ) 0.31 7.21 1.60 $ 251 Canceled (479,919 ) 5.53 16.88 9.04 Outstanding at September 30, 2015 4,247,972 $ 0.31 16.88 $ 6.82 6.55 $ 3,563 Exercisable at September 30, 2015 2,309,676 $ 0.31 16.88 $ 6.07 4.75 $ 3,563 Vested or expected to vest at September 30, 2015 (2) 3,726,242 $ 0.31 16.88 $ 6.74 6.24 $ 3,563 (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, 2015 of $ 4.92 (2) This represents the number of vested options as of September 30, 2015 plus the number of unvested options expected to vest as of September 30, 2015 based on the unvested options outstanding at September 30, 2015 adjusted for an estimated forfeiture rate.
Restricted Stock Units Award Activity	Shares Weighted Unvested by December 31, 2014 915,458 $ 8.61 Granted 644,581 5.39 Vested and issued (200,286 ) 6.90 Canceled (105,464 ) 9.51 Unvested by September 30, 2015 1,254,289 $ 7.13

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2015
Commitments and Contingencies [Abstract]
Future Minimum Rental Commitments Under Incremental Capital Leases	Year Ending December 31 Capital Lease Commitments 2015 $ 78 2016 311 2017 311 2018 137 Less – interest on capital leases 45 $ 792

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	Sep. 30, 2015
Segment Information [Abstract]
Total Revenue from Unaffiliated Customers by Geographic Area, Based on Location of Customer	Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Revenue: North America $ 22,118 $ 19,254 $ 63,636 $ 55,749 Europe 6,049 7,451 19,235 23,808 Japan 2,249 2,181 6,294 6,114 Asia Pacific 3,035 2,383 9,144 7,259 Other 386 258 1,261 705 Total revenue $ 33,837 $ 31,527 $ 99,570 $ 93,635

Cash and Cash Equivalents (Sche

Cash and Cash Equivalents (Schedule of Cash and Cash Equivalents) (Details) - Cash and cash equivalents [Member] - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Investment Holdings [Line Items]
Amortized Cost	$ 23,788	$ 22,916
Fair Market Value	23,788	22,916
Balance Per Balance Sheet	$ 23,788	$ 22,916
Cash [Member]
Investment Holdings [Line Items]
Contracted Maturity, description	Demand	Demand
Amortized Cost	$ 14,211	$ 13,342
Fair Market Value	14,211	13,342
Balance Per Balance Sheet	$ 14,211	$ 13,342
Money Market Funds [Member]
Investment Holdings [Line Items]
Contracted Maturity, description	Demand	Demand
Amortized Cost	$ 9,577	$ 9,574
Fair Market Value	9,577	9,574
Balance Per Balance Sheet	$ 9,577	$ 9,574

Net Loss per Share (Schedule of

Net Loss per Share (Schedule of Potentially Dilutive Common Stock Equivalent Shares Excluded from Computation of Weighted-Average Shares Outstanding) (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Options outstanding [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	4,181	3,979	4,133	3,731
Restricted Stock Units (RSUs) [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	1,094	985	982	1,010
Warrants [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	28	28	28	28

Fair Value of Financial Instr28

Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds	$ 9,577	$ 9,574
Restricted cash	201	201
Total assets	9,778	9,775
Quoted Prices in Active Markets for Identical Items (Level 1) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds	$ 9,577	$ 9,574
Restricted cash
Total assets	$ 9,577	$ 9,574
Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds
Restricted cash	$ 201	$ 201
Total assets	$ 201	$ 201
Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds
Restricted cash
Total assets

Stock-based Compensation (Sched

Stock-based Compensation (Schedule of Weighted-Average Assumptions) (Details) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Stock-based Compensation [Abstract]
Expected life in years	6 years 3 months 18 days	6 years 3 months 18 days	6 years 2 months 12 days	6 years 2 months 12 days
Risk-free interest rate	1.90%	2.19%	1.85%	2.18%
Volatility	46.00%	51.00%	47.00%	53.00%
Dividend yield
Weighted-average fair value of stock options granted	$ 2.49	$ 3.06	$ 3.25	$ 4.41

Stock-based Compensation (Narra

Stock-based Compensation (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Stock-based Compensation [Abstract]
Unrecognized stock-based compensation expense	$ 10,329		$ 10,329
Weighted average period			2 years 9 months 29 days
Stock based compensation expense	$ 1,523	$ 1,526	$ 4,312	$ 4,773

Stock-based Compensation (Summa

Stock-based Compensation (Summary of Status of Company's Stock Option Activity) (Details) - Employee Stock Option [Member] $ / shares in Units, $ in Thousands	9 Months Ended
	Sep. 30, 2015USD ($)$ / sharesshares
Number of Shares
Beginning balance | shares	4,077,074
Granted | shares	695,749
Exercised | shares	(44,932)
Canceled | shares	(479,919)
Ending Balance | shares	4,247,972
Exercisable | shares	2,309,676
Vested or expected to vest | shares	3,726,242	[1]
Weighted Average Exercise Price Per Share
Beginning Balance	$ 7.02
Granted	6.83
Exercised	1.60
Canceled	9.04
Ending Balance	6.82
Exercisable	6.07
Vested and Expected to Vest	$ 6.74	[1]
Weighted Average Remaining Contractual Term (Years)
Ending Balance	6 years 6 months 18 days
Exercisable	4 years 9 months
Vested and Expected to Vest	6 years 2 months 26 days	[1]
Aggregate Intrinsic Value
Exercised | $	$ 251	[2]
Ending Balance | $	3,563	[2]
Exercisable | $	3,563	[2]
Vested or expected to vest | $	$ 3,563	[1],[2]
Minimum [Member]
Exercise Price Per Share
Beginning Balance	$ 0.31
Granted	4.92
Exercised	0.31
Canceled	5.53
Ending Balance	0.31
Exercisable	0.31
Vested or expected to vest	0.31	[1]
Maximum [Member]
Exercise Price Per Share
Beginning Balance	16.88
Granted	8.13
Exercised	7.21
Canceled	16.88
Ending Balance	16.88
Exercisable	16.88
Vested or expected to vest	$ 16.88	[1]
[1]	This represents the number of vested options as of September 30, 2015 plus the number of unvested options expected to vest as of September 30, 2015 based on the unvested options outstanding at September 30, 2015 adjusted for an estimated forfeiture rate.
[2]	The aggregate intrinsic value was calculated based on the positive difference between the fair value of the Company's common stock on September 30, 2015 of $4.92 per share, or the date of exercise, as appropriate, and the exercise price of the underlying options.

Stock-based Compensation (Sum32

Stock-based Compensation (Summary of Status of Company's Stock Option Activity) (Parenthetical) (Details)	Sep. 30, 2015$ / shares
Stock-based Compensation [Abstract]
Fair value of the Company's common stock	$ 4.92

Stock-based Compensation (Sch33

Stock-based Compensation (Schedule of Restricted Stock Units Award Activity) (Details) - Restricted Stock Units (RSUs) [Member]	9 Months Ended
	Sep. 30, 2015$ / sharesshares
Shares
Unvested Shares, Beginning Balance	915,458
Granted	644,581
Vested and issued	(200,286)
Canceled	(105,464)
Unvested Shares, Ending Balance	1,254,289
Weighted-Average Grant Date Fair Value
Weighted Average Grant Date Fair Value, Beginning Balance | $ / shares	$ 8.61
Weighted Average Grant Date Fair Value, Granted | $ / shares	5.39
Vested and issued | $ / shares	6.90
Weighted Average Grant Date Fair Value, Canceled | $ / shares	9.51
Weighted Average Grant Date Fair Value, Ending Balance | $ / shares	$ 7.13

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Income Taxes [Abstract]
Income tax expense	$ 123	$ 81	$ 255	$ 204

Commitments and Contingencies35

Commitments and Contingencies (Details) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2015USD ($)	Sep. 30, 2015USD ($)
Commitments and Contingencies [Abstract]
Total obligation for capital lease arrangements for computer equipment and support	$ 924	$ 924
Amortization expense related to assets acquired under capital lease	58	88
Total assets under incremental capital leases	875	875
Accumulated amortization related to capital leases	116	116
Future minimum rental commitments under capital leases
2,015	78	78
2,016	311	311
2,017	311	311
2,018	137	137
Less - interest on capital leases	45	45
Capital Lease Commitments	$ 792	$ 792

Debt (Details)

Debt (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Equipment Financing Agreement [Member]
Debt Instrument [Line Items]
Debt issuance date	Jun. 1, 2015
Computer equipment and support purchased	$ 1.7
Repayment period of obligation under the agreement	2 years
Debt maturity date	May 31, 2017
Debt amount outstanding	$ 1.1
Secured Line of Credit [Member]
Line of Credit Facility [Line Items]
Line of credit, agreement start date	Mar. 31, 2011
Line of credit maximum borrowing capacity	$ 8
Percentage of eligible accounts receivable	80.00%
Basis spread on variable rate	1.50%
Line of credit maturity date	Mar. 31, 2013
Amended Agreement [Member]
Line of Credit Facility [Line Items]
Line of credit, agreement start date	Apr. 29, 2013
Line of credit maximum borrowing capacity	$ 10
Aggregate facility amount available	$ 12.5
Line of credit maturity date	Mar. 30, 2015
Modification Agreement [Member]
Line of Credit Facility [Line Items]
Line of credit, agreement start date	Oct. 3, 2014
Line of credit maximum borrowing capacity	$ 20
Aggregate facility amount available	$ 25
Basis spread on variable rate	0.75%
Basis spread on variable rate, if not meet minimum assets coverage ratio	2.25%
Line of credit maturity date	Oct. 3, 2016
Unused line fee percentage	0.25%
Amounts outstanding under line of credit

Segment Information (Schedule o

Segment Information (Schedule of Total Revenue from Unaffiliated Customers by Geographic Area, Based on Location of Customer) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	$ 33,837	$ 31,527	$ 99,570	$ 93,635
North America [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	22,118	19,254	63,636	55,749
Europe [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	6,049	7,451	19,235	23,808
Japan [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	2,249	2,181	6,294	6,114
Asia Pacific [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	3,035	2,383	9,144	7,259
Other [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	$ 386	$ 258	$ 1,261	$ 705

Segment Information (Narrative)

Segment Information (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues from customers	$ 33,837	$ 31,527	$ 99,570	$ 93,635
UNITED STATES [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues from customers	$ 20,652	$ 17,797	$ 59,403	$ 51,533