Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Oct. 31, 2013 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Entity Registrant Name | 'BRIGHTCOVE INC | ' |
Entity Central Index Key | '0001313275 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Non-accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 28,771,497 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $30,099 | $21,708 |
Short-term investments | 4,004 | 8,264 |
Restricted cash | 163 | 102 |
Accounts receivable, net of allowance of $408 and $338, respectively (includes related party amounts of $0 and $451, respectively) | 20,275 | 18,956 |
Prepaid expenses and other current assets | 4,848 | 2,987 |
Deferred tax asset | 163 | 187 |
Total current assets | 59,552 | 52,204 |
Long-term investments | ' | 3,069 |
Property and equipment, net | 7,208 | 8,400 |
Intangible assets, net | 9,098 | 10,387 |
Goodwill | 22,018 | 22,018 |
Restricted cash, net of current portion | 201 | 201 |
Other assets | 712 | 714 |
Total assets | 98,789 | 96,993 |
Current liabilities: | ' | ' |
Accounts payable | 1,483 | 619 |
Accrued expenses | 12,235 | 11,639 |
Deferred revenue | 24,826 | 19,103 |
Total current liabilities | 38,544 | 31,361 |
Deferred revenue, net of current portion | 60 | 113 |
Other liabilities | 1,224 | 1,027 |
Total liabilities | 39,828 | 32,501 |
Contingencies (Note 11) | ' | ' |
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; 28,421,428 and 27,954,926 shares issued and outstanding, respectively | 28 | 28 |
Additional paid in capital | 174,019 | 167,912 |
Accumulated other comprehensive income (loss) | -207 | 572 |
Accumulated deficit | -114,879 | -105,862 |
Total stockholders' equity attributable to Brightcove Inc. | 58,961 | 62,650 |
Non-controlling interest in consolidated subsidiary | ' | 1,842 |
Total stockholders' equity | 58,961 | 64,492 |
Total liabilities and stockholders' equity | $98,789 | $96,993 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Statement Of Financial Position [Abstract] | ' | ' |
Allowance for accounts receivable | $408 | $338 |
Accounts receivable, related party amounts | $0 | $451 |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 28,421,428 | 27,954,926 |
Common stock, shares outstanding | 28,421,428 | 27,954,926 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Revenue: | ' | ' | ' | ' | ||||
Subscription and support revenue | $26,535 | [1] | $21,503 | [1] | $75,887 | [1] | $61,057 | [1] |
Professional services and other revenue | 1,992 | [1] | 568 | [1] | 4,262 | [1] | 2,578 | [1] |
Total revenue | 28,527 | [1] | 22,071 | [1] | 80,149 | [1] | 63,635 | [1] |
Cost of revenue: | ' | ' | ' | ' | ||||
Cost of subscription and support revenue | 7,047 | [2],[3] | 5,822 | [2],[3] | 21,441 | [2],[3] | 16,250 | [2],[3] |
Cost of professional services and other revenue | 2,201 | [2],[3] | 1,151 | [2],[3] | 5,393 | [2],[3] | 3,531 | [2],[3] |
Total cost of revenue | 9,248 | [2],[3] | 6,973 | [2],[3] | 26,834 | [2],[3] | 19,781 | [2],[3] |
Gross profit | 19,279 | 15,098 | 53,315 | 43,854 | ||||
Operating expenses: | ' | ' | ' | ' | ||||
Research and development | 5,607 | [2],[3] | 4,771 | [2],[3] | 15,650 | [2],[3] | 13,512 | [2],[3] |
Sales and marketing | 10,159 | [2],[3] | 9,429 | [2],[3] | 30,855 | [2],[3] | 28,182 | [2],[3] |
General and administrative | 4,460 | [2],[3] | 3,855 | [2],[3] | 13,840 | [2],[3] | 11,766 | [2],[3] |
Merger-related | 370 | [2],[3] | 756 | [2],[3] | 1,461 | [2],[3] | 1,235 | [2],[3] |
Total operating expenses | 20,596 | [2],[3] | 18,811 | [2],[3] | 61,806 | [2],[3] | 54,695 | [2],[3] |
Loss from operations | -1,317 | -3,713 | -8,491 | -10,841 | ||||
Other income (expense), net | 104 | 42 | -359 | -494 | ||||
Loss before income taxes and non-controlling interest in consolidated subsidiary | -1,213 | -3,671 | -8,850 | -11,335 | ||||
Provision for (benefit from) income taxes | 55 | -3,280 | 149 | -3,222 | ||||
Consolidated net loss | -1,268 | -391 | -8,999 | -8,113 | ||||
Net income attributable to non-controlling interest in consolidated subsidiary | ' | -220 | -20 | -422 | ||||
Net loss attributable to Brightcove Inc. | -1,268 | -611 | -9,019 | -8,535 | ||||
Accretion of dividends on redeemable convertible preferred stock | ' | ' | ' | -733 | ||||
Net loss attributable to common stockholders | ($1,268) | ($611) | ($9,019) | ($9,268) | ||||
Net loss per share attributable to common stockholders - basic and diluted | ($0.04) | ($0.02) | ($0.32) | ($0.39) | ||||
Weighted-average number of common shares used in computing net loss per share attributable to common stockholders - basic and diluted | 28,345,519 | 27,478,705 | 28,184,533 | 23,539,859 | ||||
[1] | Includes related party revenue (Note 13) $ - $ 965 $ 42 $ 2,744 | |||||||
[2] | Stock-based compensation included in above line items: Cost of subscription and support revenue $ 60 $ 31 $ 185 $ 86 Cost of professional services and other revenue 53 32 117 79 Research and development 354 191 902 408 Sales and marketing 557 435 1,641 1,050 General and administrative 561 769 1,891 2,045 | |||||||
[3] | Amortization of acquired intangible assets included in above line items: Cost of subscription and support revenue $ 253 $ 127 $ 759 $ 127 Research and development 9 5 29 5 Sales and marketing 166 83 500 83 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Operations (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Includes related party revenue (Note 13) | ' | $965 | $42 | $2,744 |
Stock-based compensation included in above line items: | ' | ' | ' | ' |
Stock-based compensation | 1,585 | 1,458 | 4,736 | 3,668 |
Cost of Subscription and Support Revenue [Member] | ' | ' | ' | ' |
Stock-based compensation included in above line items: | ' | ' | ' | ' |
Stock-based compensation | 60 | 31 | 185 | 86 |
Amortization of acquired intangible assets included in above line items: | ' | ' | ' | ' |
Amortization of acquired intangible assets | 253 | 127 | 759 | 127 |
Cost of Professional Services and Other Revenue [Member] | ' | ' | ' | ' |
Stock-based compensation included in above line items: | ' | ' | ' | ' |
Stock-based compensation | 53 | 32 | 117 | 79 |
Research and Development [Member] | ' | ' | ' | ' |
Stock-based compensation included in above line items: | ' | ' | ' | ' |
Stock-based compensation | 354 | 191 | 902 | 408 |
Amortization of acquired intangible assets included in above line items: | ' | ' | ' | ' |
Amortization of acquired intangible assets | 9 | 5 | 29 | 5 |
Sales and marketing [Member] | ' | ' | ' | ' |
Stock-based compensation included in above line items: | ' | ' | ' | ' |
Stock-based compensation | 557 | 435 | 1,641 | 1,050 |
Amortization of acquired intangible assets included in above line items: | ' | ' | ' | ' |
Amortization of acquired intangible assets | 166 | 83 | 500 | 83 |
General and Administrative [Member] | ' | ' | ' | ' |
Stock-based compensation included in above line items: | ' | ' | ' | ' |
Stock-based compensation | $561 | $769 | $1,891 | $2,045 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Comprehensive Loss (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Statement Of Income And Comprehensive Income [Abstract] | ' | ' | ' | ' |
Consolidated net loss | ($1,268) | ($391) | ($8,999) | ($8,113) |
Other comprehensive income (loss): | ' | ' | ' | ' |
Foreign currency translation adjustments | 34 | 122 | -779 | 28 |
Other comprehensive income (loss) | 34 | 122 | -779 | 28 |
Comprehensive loss | -1,234 | -269 | -9,778 | -8,085 |
Net income attributable to non-controlling interest in consolidated subsidiary | ' | -220 | -20 | -422 |
Comprehensive loss attributable to Brightcove Inc. | ($1,234) | ($489) | ($9,798) | ($8,507) |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Operating activities | ' | ' |
Net loss | ($8,999) | ($8,113) |
Adjustments to reconcile net loss to net cash used in operating activities: | ' | ' |
Depreciation and amortization | 4,562 | 3,109 |
Stock-based compensation | 4,736 | 3,668 |
Deferred income tax benefit | ' | -3,313 |
Change in fair value of warrants | ' | -28 |
Provision for reserves on accounts receivable | 351 | 91 |
Amortization of premium on investments | 69 | 94 |
Amortization of deferred financing costs | ' | 44 |
Loss on disposal of equipment | ' | 83 |
Changes in assets and liabilities: | ' | ' |
Accounts receivable | -1,795 | -4,737 |
Prepaid expenses and other current assets | -1,285 | -500 |
Other assets | -11 | 321 |
Accounts payable | 902 | -1,051 |
Accrued expenses | 481 | 1,055 |
Deferred revenue | 5,790 | 5,376 |
Net cash provided by (used in) operating activities | 4,801 | -3,901 |
Investing activities | ' | ' |
Maturities of investments | 7,260 | 200 |
Purchases of investments | ' | -14,105 |
Purchases of property and equipment | -1,926 | -6,107 |
Capitalization of internal-use software costs | -426 | -24 |
Decrease in restricted cash | -61 | ' |
Cash paid for acquisition, net of cash acquired | ' | -27,210 |
Net cash provided by (used in) investing activities | 4,847 | -47,246 |
Financing activities | ' | ' |
Proceeds from exercise of stock options | 585 | 1,047 |
Purchase of non-controlling interest in consolidated subsidiary | -1,084 | ' |
Proceeds from issuance of common stock in connection with initial public offering, net of offering costs | ' | 56,762 |
Payments under term loan | ' | -7,000 |
Net cash (used in) provided by financing activities | -499 | 50,809 |
Effect of exchange rate changes on cash | -758 | 51 |
Net increase (decrease) in cash and cash equivalents | 8,391 | -287 |
Cash and cash equivalents at beginning of period | 21,708 | 17,227 |
Cash and cash equivalents at end of period | 30,099 | 16,940 |
Supplemental disclosure of non-cash financing activities | ' | ' |
Conversion of preferred stock to common stock | ' | 106,451 |
Conversion of warrants to purchase preferred stock to warrants to purchase common stock | ' | 396 |
Accretion of Series A, B, C and D redeemable convertible preferred stock issuance costs and dividends | ' | 773 |
Vesting of restricted stock | $8 | $75 |
Business_Description_and_Basis
Business Description and Basis of Presentation | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Business Description and Basis of Presentation | ' |
1. Business Description and Basis of Presentation | |
Business Description | |
Brightcove Inc. (the Company) is a provider of cloud-based solutions for publishing and distributing professional digital media which enable its customers to publish and distribute video to Internet-connected devices quickly, easily and in a cost-effective manner. | |
The Company is headquartered in Boston, Massachusetts and was incorporated in the state of Delaware on August 24, 2004. At September 30, 2013, the Company had nine wholly-owned subsidiaries: Brightcove UK Ltd, Brightcove Singapore Pte. Ltd., Brightcove Korea, Brightcove Australia Pty Ltd, Brightcove Holdings, Inc., Bright Bay Co. Ltd., Brightcove Kabushiki Kaisha (Brightcove KK), Zencoder Inc. (Zencoder) and Brightcove FZ-LLC. | |
Prior to January 8, 2013, the Company owned a 63% interest in Brightcove KK, which the Company held since the formation of Brightcove KK in 2008. On January 8, 2013, the Company acquired the remaining 37% interest in Brightcove KK and, as a result, Brightcove KK is now 100% owned by the Company. See Note 3 for further discussion on this transaction. | |
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, 2012. | |
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, 2012 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, 2013 and 2012. 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, 2013, 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, 2012, have not changed. | |
Reclassification | |
Certain prior period amounts have been reclassified to conform to the current period presentation. This reclassification had no impact on the previously reported results of operations or cash flows. |
Business_Combination
Business Combination | 9 Months Ended |
Sep. 30, 2013 | |
Business Combinations [Abstract] | ' |
Business Combination | ' |
2. Business Combination | |
On August 14, 2012, the Company acquired all of the outstanding capital stock of Zencoder, a privately-held company based in San Francisco, California. The purchase price of Zencoder was approximately $27,379 and was funded by cash on hand. The Company acquired Zencoder to enhance and extend the Company’s existing offerings with Zencoder’s media encoding services. The Company believes that the unification of Zencoder’s audio and video encoding service with the Company’s existing offerings will enable new and improved scalable services that will help customers reduce the cost and complexity of video encoding and delivery. | |
The acquisition was accounted for using the purchase method of accounting in accordance with Accounting Standards Codification (ASC) 805, Business Combinations. Accordingly, the results of operations of Zencoder have been included in the accompanying condensed consolidated financial statements since the date of acquisition. The purchase price has been allocated to the tangible and intangible assets acquired and liabilities assumed based upon the respective estimates of fair value as of the date of the merger and using assumptions that the Company’s management believes are reasonable given the information currently available. Transaction costs and retention costs associated with the transaction have been expensed as incurred. | |
The process for estimating the fair values of identifiable intangible assets and certain tangible assets requires the use of significant estimates and assumptions, including estimating future cash flows and developing appropriate discount rates. | |
During the three months ended September 30, 2013 and 2012, the Company recorded merger-related expenses of $370 and $756, respectively, and during the nine months ended September 30, 2013 and 2012, the Company recorded merger-related expenses of $1,461 and $1,235, respectively. Included in merger-related expenses are costs incurred in connection with closing the acquisition in addition to costs associated with the retention of key employees. In addition to the $27,379 purchase price, per the merger agreement, approximately $2,667 is to be paid to retain certain key employees over a two year period as services are performed. Given that the retention amount is related to a future service requirement, the related expense is being recorded as compensation expense in the Merger-related line item in the condensed consolidated statements of operations over the expected service period, and was $281 during both the three and nine months ended September 30, 2012 and was $370 and $1,461, respectively, during the three and nine months ended September 30, 2013. |
Noncontrolling_Interest
Non-controlling Interest | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Noncontrolling Interest [Abstract] | ' | ||||||||||||||||
Non-controlling Interest | ' | ||||||||||||||||
3. Non-controlling Interest | |||||||||||||||||
On May 30, 2008, the Company formed Brightcove KK, a wholly owned subsidiary of Brightcove Inc. On July 18, 2008, the Company entered into a joint venture agreement with J-Stream Inc. (J-Stream), Dentsu, Inc. (Dentsu), CyberCommunications, Inc. and Transcosmos Investments & Business Development, Inc. (collectively, the minority stockholders). The minority stockholders invested cash of approximately $4.8 million in Brightcove KK such that their cumulative ownership interest in the entity was 37%, while the Company retained a 63% ownership interest in the entity. The Company determined that it had a controlling interest and was the primary beneficiary of the entity. As such, the Company consolidated Brightcove KK for financial reporting purposes, and a non-controlling interest was recorded for the third parties’ interest in the net assets and operations of Brightcove KK to the extent of the non-controlling partners’ individual investments. | |||||||||||||||||
On January 8, 2013, the Company acquired the remaining 37% interest in Brightcove KK and, as a result, Brightcove KK is now 100% owned by the Company. The purchase price of the remaining equity interest was approximately $1.1 million and was funded by cash on hand. The Company continues to consolidate Brightcove KK for financial reporting purposes, however, commencing on January 8, 2013, the Company no longer records a non-controlling interest in the condensed consolidated financial statements. The purchase was accounted for as an equity transaction in accordance with ASC 810, Consolidation. Accordingly, the non-controlling interest in the consolidated subsidiary on the accompanying condensed consolidated balance sheet was reduced to zero on the transaction date to reflect the Company’s increased ownership percentage, with the excess of the non-controlling interest balance on the date of the acquisition over the $1.1 million purchase price recorded as additional-paid-in-capital. | |||||||||||||||||
Non-controlling interest represents the minority shareholders’ proportionate share of the Company’s majority owned subsidiary, Brightcove KK. The following table sets forth the changes in non-controlling interest for the three and nine months ended September 30, 2013 and 2012: | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Balance at beginning of period | $ | — | $ | 1,310 | $ | 1,842 | $ | 1,108 | |||||||||
Net income attributable to non-controlling interest in consolidated subsidiary | — | 220 | 20 | 422 | |||||||||||||
Purchase of non-controlling interest in consolidated subsidiary | — | — | (1,862 | ) | — | ||||||||||||
Balance at end of period | $ | — | $ | 1,530 | $ | — | $ | 1,530 | |||||||||
Concentration_of_Credit_Risk
Concentration of Credit Risk | 9 Months Ended |
Sep. 30, 2013 | |
Risks And Uncertainties [Abstract] | ' |
Concentration of Credit Risk | ' |
4. 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, investments 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. 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, 2013 and December 31, 2012, no individual customer accounted for 10% or more of net accounts receivable. For the three and nine months ended September 30, 2013 and 2012, no individual customer accounted for 10% or more of total revenue. |
Concentration_of_Other_Risks
Concentration of Other Risks | 9 Months Ended |
Sep. 30, 2013 | |
Text Block [Abstract] | ' |
Concentration of Other Risks | ' |
5. 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_Cash_Equivalents_and_Inve
Cash, Cash Equivalents and Investments | 9 Months Ended | ||||||||||||||
Sep. 30, 2013 | |||||||||||||||
Cash And Cash Equivalents [Abstract] | ' | ||||||||||||||
Cash, Cash Equivalents and Investments | ' | ||||||||||||||
6. Cash, Cash Equivalents and Investments | |||||||||||||||
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. Investments primarily consist of certificates of deposit, commercial paper and corporate debentures. At September 30, 2013 and December 31, 2012, the Company classified its investments as held-to-maturity as it is the Company’s intention to hold such investments until they mature. As such, investments were recorded at amortized cost at September 30, 2013 and December 31, 2012. | |||||||||||||||
Cash, cash equivalents and investments as of September 30, 2013 consist of the following: | |||||||||||||||
September 30, 2013 | |||||||||||||||
Description | Contracted | Amortized | Fair Market | Balance Per | |||||||||||
Maturity | Cost | Value | Balance | ||||||||||||
Sheet | |||||||||||||||
Cash | Demand | $ | 17,257 | $ | 17,257 | $ | 17,257 | ||||||||
Money market funds | Demand | 12,842 | 12,842 | 12,842 | |||||||||||
Total cash and cash equivalents | $ | 30,099 | $ | 30,099 | $ | 30,099 | |||||||||
Certificates of deposit | 17 – 255 days | $ | 1,200 | $ | 1,202 | $ | 1,200 | ||||||||
Corporate debentures | 69 – 188 days | 2,804 | 2,809 | 2,804 | |||||||||||
Total short-term investments | $ | 4,004 | $ | 4,011 | $ | 4,004 | |||||||||
Cash, cash equivalents and investments as of December 31, 2012 consist of the following: | |||||||||||||||
December 31, 2012 | |||||||||||||||
Description | Contracted | Amortized | Fair Market | Balance Per | |||||||||||
Maturity | Cost | Value | Balance | ||||||||||||
Sheet | |||||||||||||||
Cash | Demand | $ | 15,275 | $ | 15,275 | $ | 15,275 | ||||||||
Money market funds | Demand | 6,433 | 6,433 | 6,433 | |||||||||||
Total cash and cash equivalents | $ | 21,708 | $ | 21,708 | $ | 21,708 | |||||||||
Certificates of deposit | 111 – 290 days | $ | 1,200 | $ | 1,200 | $ | 1,200 | ||||||||
Commercial paper | 52 – 100 days | 1,397 | 1,399 | 1,397 | |||||||||||
Corporate debentures | 21 – 342 days | 5,667 | 5,673 | 5,667 | |||||||||||
Total short-term investments | $ | 8,264 | $ | 8,272 | $ | 8,264 | |||||||||
Certificates of deposit | 475 – 528 days | $ | 960 | $ | 962 | $ | 960 | ||||||||
Corporate debentures | 388 – 461 days | 2,109 | 2,118 | 2,109 | |||||||||||
Total long-term investments | $ | 3,069 | $ | 3,080 | $ | 3,069 | |||||||||
Net_Loss_per_Share
Net Loss per Share | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Net Loss per Share | ' | ||||||||||||||||
7. Net Loss per Share | |||||||||||||||||
A reconciliation of the number of shares used in the calculation of basic and diluted net loss per share is as follows (in thousands): | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Weighted-average shares of common stock outstanding | 28,346 | 27,507 | 28,185 | 23,583 | |||||||||||||
Less: weighted-average number of unvested restricted common shares outstanding | — | 28 | — | 43 | |||||||||||||
Weighted-average number of common shares used in calculating net loss per common share | 28,346 | 27,479 | 28,185 | 23,540 | |||||||||||||
The following potentially dilutive common stock equivalent shares have been excluded from the computation of the weighted-average shares outstanding as their effect would have been anti-dilutive (in thousands): | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Redeemable convertible preferred stock | — | — | — | 2,888 | |||||||||||||
Options outstanding | 3,563 | 3,895 | 3,380 | 4,002 | |||||||||||||
Restricted stock units outstanding | 1,371 | 271 | 1,434 | 214 | |||||||||||||
Unvested restricted shares | — | 28 | — | 43 | |||||||||||||
Warrants | 28 | 31 | 28 | 40 |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Fair Value of Financial Instruments | ' | ||||||||||||||||
8. 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, 2013 and December 31, 2012: | |||||||||||||||||
September 30, 2013 | |||||||||||||||||
Quoted | Significant | Significant | Total | ||||||||||||||
Prices in | Other | Unobservable | |||||||||||||||
Active | Observable | Inputs | |||||||||||||||
Markets | Inputs | (Level 3) | |||||||||||||||
for | (Level 2) | ||||||||||||||||
Identical | |||||||||||||||||
Items | |||||||||||||||||
(Level 1) | |||||||||||||||||
Assets: | |||||||||||||||||
Money market funds | $ | 12,842 | $ | — | $ | — | $ | 12,842 | |||||||||
Restricted cash | — | 364 | — | 364 | |||||||||||||
Total assets | $ | 12,842 | $ | 364 | $ | — | $ | 13,206 | |||||||||
December 31, 2012 | |||||||||||||||||
Quoted | Significant | Significant | Total | ||||||||||||||
Prices in | Other | Unobservable | |||||||||||||||
Active | Observable | Inputs | |||||||||||||||
Markets | Inputs | (Level 3) | |||||||||||||||
for | (Level 2) | ||||||||||||||||
Identical | |||||||||||||||||
Items | |||||||||||||||||
(Level 1) | |||||||||||||||||
Assets: | |||||||||||||||||
Money market funds | $ | 6,433 | $ | — | $ | — | $ | 6,433 | |||||||||
Restricted cash | — | 303 | — | 303 | |||||||||||||
Total assets | $ | 6,433 | $ | 303 | $ | — | $ | 6,736 | |||||||||
Stockbased_Compensation
Stock-based Compensation | 9 Months Ended | ||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ||||||||||||||||||
Stock-based Compensation | ' | ||||||||||||||||||
9. 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, | ||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||
Expected life in years | 6.3 | 6.3 | 6.2 | 6.2 | |||||||||||||||
Risk-free interest rate | 2.04 | % | 1.01 | % | 1.79 | % | 1.26 | % | |||||||||||
Volatility | 54 | % | 56 | % | 54 | % | 57 | % | |||||||||||
Dividend yield | — | — | — | — | |||||||||||||||
Weighted-average fair value of stock options granted | $ | 5.64 | $ | 7.87 | $ | 5.08 | $ | 7.9 | |||||||||||
The Company recorded stock-based compensation expense of $1,585 and $1,458 for the three months ended September 30, 2013 and 2012, respectively, and $4,736 and $3,668 for the nine months ended September 30, 2013 and 2012, respectively. As of September 30, 2013, there was $13,379 of unrecognized stock-based compensation expense related to stock-based awards that is expected to be recognized over a weighted-average period of 2.90 years. | |||||||||||||||||||
The following is a summary of the status of the Company’s stock options as of September 30, 2013 and the stock option activity for all stock option plans during the nine months ended September 30, 2013. | |||||||||||||||||||
Number of | Exercise Price | Weighted | Weighted | Aggregate | |||||||||||||||
Shares | Per Share | Average | Average | Intrinsic | |||||||||||||||
Exercise | Remaining | Value (1) | |||||||||||||||||
Price Per | Contractual | ||||||||||||||||||
Share | Term | ||||||||||||||||||
(Years) | |||||||||||||||||||
Outstanding at December 31, 2012 | 3,437,879 | $0.31–16.88 | $ | 5.48 | |||||||||||||||
Granted | 703,411 | 6.48–10.61 | 9.6 | ||||||||||||||||
Exercised | (367,613 | ) | 0.31–11.00 | 1.59 | $ | 2,461 | |||||||||||||
Canceled | (271,482 | ) | 1.25–16.88 | 11.28 | |||||||||||||||
Outstanding at September 30, 2013 | 3,502,195 | $0.31–16.88 | $ | 6.27 | 6.95 | $ | 18,515 | ||||||||||||
Exercisable at September 30, 2013 | 2,332,875 | $0.31–16.88 | $ | 4.19 | 5.94 | $ | 16,779 | ||||||||||||
Vested or expected to vest at September 30, 2013 (2) | 3,235,369 | $0.31–16.88 | $ | 5.91 | 6.76 | $ | 18,163 | ||||||||||||
-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, 2013 of $11.25 per share, or the date of exercise, as appropriate, and the exercise price of the underlying options. | ||||||||||||||||||
-2 | This represents the number of vested options as of September 30, 2013 plus the number of unvested options expected to vest as of September 30, 2013 based on the unvested options outstanding at September 30, 2013 adjusted for an estimated forfeiture rate. | ||||||||||||||||||
The following table summarizes the restricted stock unit award activity during the nine months ended September 30, 2013: | |||||||||||||||||||
Shares | Weighted | ||||||||||||||||||
Average | |||||||||||||||||||
Grant Date | |||||||||||||||||||
Fair Value | |||||||||||||||||||
Unvested by December 31, 2012 | 1,265,421 | $ | 11.72 | ||||||||||||||||
Granted | 401,791 | 6.76 | |||||||||||||||||
Vested and issued | (88,889 | ) | 7.72 | ||||||||||||||||
Canceled | (170,042 | ) | 10.78 | ||||||||||||||||
Unvested by September 30, 2013 | 1,408,281 | $ | 10.22 | ||||||||||||||||
The following table summarizes the restricted stock award activity during the nine months ended September 30, 2013: | |||||||||||||||||||
Shares | Weighted | Aggregate | |||||||||||||||||
Average | Intrinsic | ||||||||||||||||||
Grant Date | Value | ||||||||||||||||||
Fair Value | |||||||||||||||||||
Unvested by December 31, 2012 | 4,887 | $ | 9.31 | ||||||||||||||||
Granted | — | — | |||||||||||||||||
Vested | (4,887 | ) | $ | 9.31 | |||||||||||||||
Repurchased | — | — | |||||||||||||||||
Unvested by September 30, 2013 | — | $ | — | $ | — | ||||||||||||||
As discussed in Note 3 to the condensed consolidated financial statements, on January 8, 2013 the Company acquired the remaining 37% of Brightcove KK. The Brightcove KK Stock Option Plan was terminated in connection with this transaction. |
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2013 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
10. Income Taxes | |
For the three months ended September 30, 2013 and 2012, the Company recorded an income tax provision (benefit) of $55 and $(3,280), respectively, and $149 and $(3,222), respectively, for the nine months ended September 30, 2013 and 2012. The income tax provision for the three and nine months ended September 30, 2013 relates principally to the Company’s foreign operations. The income tax benefit recorded for the three and nine months ended September 30, 2012 relates principally to a reduction of the Company’s valuation against its existing deferred tax assets to offset certain deferred tax liabilities on amortizable intangibles recognized upon the acquisition of Zencoder. | |
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, management has determined that it is more-likely-than-not that the Company will not utilize the benefits of federal and state U.S. net deferred tax assets for financial reporting purposes. Accordingly, the net deferred tax assets are subject to a valuation allowance at September 30, 2013 and December 31, 2012. | |
The Company has historically provided a valuation allowance against its net deferred tax assets in Japan. Based upon the level of historical income in Japan and future projections, the Company determined in the fourth quarter of 2012 that it was probable it will realize the benefits of its future deductible differences. As such, the Company released the valuation allowance related to the remaining deferred tax assets in Japan. | |
The Company’s income tax return reporting periods since December 31, 2009 are open to income tax audit examination by the federal and state tax authorities. In addition, because the Company has net operating loss carryforwards, the Internal Revenue Service is permitted to audit earlier years and propose adjustments up to the amount of net operating losses generated in those years. There are currently no federal, state or foreign audits in progress. |
Contingencies
Contingencies | 9 Months Ended |
Sep. 30, 2013 | |
Commitments And Contingencies Disclosure [Abstract] | ' |
Contingencies | ' |
11. Contingencies | |
Legal Matters | |
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 filed an amended answer and amended counterclaims against Blue Spike 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 or range of a possible loss, if any. | |
On September 10, 2013, a complaint was filed by Cinsay Inc. naming the Company in a patent infringement case (Cinsay Inc. v. Brightcove Inc. and Joyus Inc., United States District Court for the Northern District of Texas). The complaint alleges that the Company has infringed U.S. Patent No. 8,312,486 with a listed issue date of November 13, 2012, entitled “Interactive Product Placement and Method Therefor” and U.S. Patent No. 8,533,753 with a listed issue date of September 10, 2013, entitled “Interactive Product Placement and Method Therefor.” On October 1, 2013, Cinsay filed an amended complaint against the Company and Joyus in which it reasserted the allegations of infringement of U.S. Patent No. 8,312,486 and U.S. Patent No. 8,533,753 and added allegations of infringement of U.S. Patent No. 8,549,555 with a listed issue date of October 1, 2013, entitled “Interactive Product Placement and Method Therefor.” The amended complaint seeks an injunction enjoining infringement, damages and pre- and post-judgment costs and interest. The Company cannot yet determine whether it is probable that a loss will be incurred in connection with this matter, nor can the Company reasonably estimate the potential loss or range of a possible 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 claims 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, 2013, 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 these customers by third parties. To date, the Company has not agreed that the requested indemnification is required by the Company’s contract with these customers. | |
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, 2013 | |
Debt Disclosure [Abstract] | ' |
Debt | ' |
12. Debt | |
On March 31, 2011, the Company entered into a loan and security agreement with a lender (the “Line of Credit”) providing for an asset based line of credit. Under the Line of Credit, the Company can borrow up to the lesser of (i) $8.0 million or (ii) 80% of the Company’s eligible accounts receivable. Borrowing availability under the Line of Credit changes based upon the amount of eligible receivables, concentration of eligible receivables and other factors. The Company has the ability to obtain letters of credit, which reduce the borrowing availability of the Line of Credit. Borrowings under the Line of Credit are secured by substantially all of the Company’s assets. Outstanding amounts under the Line of Credit accrue interest at a rate equal to the prime rate plus 1.5%. Advances under the Line of Credit were repayable on March 31, 2013, and interest and related finance charges are payable monthly. At September 30, 2013 and December 31, 2012, the Company had no amounts outstanding under the Line of Credit. | |
On June 24, 2011, the Company entered into the First Loan Modification Agreement (the “Modification Agreement”) to the Line of Credit. Pursuant to the terms of the Modification Agreement, during the year ended December 31, 2011, the Company drew $7.0 million in term loan advances. In February 2012, the Company repaid the $7.0 million balance under the Modification Agreement and made a final payment of $140,000, representing 2% of the outstanding balance, pursuant to the terms of the Modification Agreement. As such, the Company had no outstanding borrowings under the Modification Agreement at September 30, 2013 and December 31, 2012. | |
On April 29, 2013, the Company entered into a Second Loan Modification Agreement (the “Second Modification Agreement”) to the Line of Credit. The Second Modification Agreement increases the aggregate amount of borrowings that may be outstanding under the Line of Credit from $8.0 million to $10.0 million and extends the maturity date to March 30, 2015. The Company had no outstanding borrowings under the Second Modification Agreement at September 30, 2013. |
Related_Party_Transactions
Related Party Transactions | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Related Party Transactions [Abstract] | ' | ||||||||||||||||
Related Party Transactions | ' | ||||||||||||||||
13. Related Party Transactions | |||||||||||||||||
Two of the former non-controlling interest holders in Brightcove KK, J-Stream and Dentsu, acted as product distributors for the Company in Japan. As disclosed in Note 3 to the condensed consolidated financial statements, on January 8, 2013, the Company acquired the remaining 37% interest in Brightcove KK and, as a result, Brightcove KK is now 100% owned by the Company. As such, J-Stream and Dentsu are no longer considered related parties effective January 8, 2013. | |||||||||||||||||
As of September 30, 2013 and December 31, 2012, accounts receivable from related parties was: | |||||||||||||||||
September 30, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
J-Stream | $ | — | $ | 432 | |||||||||||||
Dentsu | — | 19 | |||||||||||||||
Total related party accounts receivable | $ | — | $ | 451 | |||||||||||||
For the three and nine months ended September 30, 2013 and 2012, the Company recorded revenue from related parties of: | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013(1) | 2012 | ||||||||||||||
J-Stream | $ | — | $ | 899 | $ | 36 | $ | 2,543 | |||||||||
Dentsu | — | 66 | 6 | 201 | |||||||||||||
Total related party revenue | $ | — | $ | 965 | $ | 42 | $ | 2,744 | |||||||||
-1 | Represents related party revenue for the period from January 1, 2013 through January 7, 2013, which is the period prior to the Company’s acquisition of the remaining 37% interest in Brightcove KK on January 8, 2013. |
Segment_Information
Segment Information | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Segment Information | ' | ||||||||||||||||
14. 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, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Revenue: | |||||||||||||||||
North America | $ | 17,026 | $ | 13,885 | $ | 48,234 | $ | 40,507 | |||||||||
Europe | 7,071 | 4,849 | 18,959 | 14,599 | |||||||||||||
Japan | 1,714 | 1,581 | 4,685 | 4,311 | |||||||||||||
Asia Pacific | 2,508 | 1,582 | 7,710 | 3,788 | |||||||||||||
Other | 208 | 174 | 561 | 430 | |||||||||||||
Total revenue | $ | 28,527 | $ | 22,071 | $ | 80,149 | $ | 63,635 | |||||||||
North America is comprised of revenue from the United States, Canada and Mexico. During the three months ended September 30, 2013 and 2012, revenue from customers located in the United States was $15,739 and $12,893, respectively, and $44,597 and $37,227, respectively, during the nine months ended September 30, 2013 and 2012. During the three and nine months ended September 30, 2013 and 2012, no international country contributed more than 10% of the Company’s total revenue. | |||||||||||||||||
As of September 30, 2013 and December 31, 2012, property and equipment at locations outside the U.S. was not material. |
Recently_Issued_and_Adopted_Ac
Recently Issued and Adopted Accounting Standards | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Changes And Error Corrections [Abstract] | ' |
Recently Issued and Adopted Accounting Standards | ' |
15. Recently Issued and Adopted Accounting Standards | |
In July 2012, the Financial Accounting Standards Board (FASB) amended ASC 350, Intangibles — Goodwill and Other. This amendment is intended to simplify how an entity tests indefinite-lived assets other than goodwill for impairment by providing entities with an option to perform a qualitative assessment to determine whether further impairment testing is necessary. The amended provisions will be effective for the Company beginning in the first quarter of fiscal 2014, and early adoption is permitted. This amendment impacts impairment testing steps only, and therefore adoption will not have an impact on the Company’s consolidated financial position, results of operations or cash flows. | |
In February 2013, the FASB issued Accounting Standards Update (ASU) No. 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. Under ASU 2013-02, an entity is required to provide information about the amounts reclassified out of Accumulated Other Comprehensive Income (AOCI) by component. In addition, an entity is required to present, either on the face of the financial statements or in the notes, significant amounts reclassified out of AOCI by the respective line items of net income, but only if the amount reclassified is required to be reclassified in its entirety in the same reporting period. For amounts that are not required to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures that provide additional details about those amounts. ASU 2013-02 does not change the current requirements for reporting net income or other comprehensive income in the financial statements. The ASU is effective prospectively for reporting periods beginning after December 15, 2012. The adoption of ASU 2013-02 did not have a significant impact on the Company’s results of operations or financial position. | |
In December 2011, the FASB issued ASU No. 2011-11, Disclosures about Offsetting Assets and Liabilities. ASU 2011-11 amended ASC 210, Balance Sheet, to converge the presentation of offsetting assets and liabilities between U.S. GAAP and IFRS. ASU 2011-11 requires that entities disclose both gross information and net information about both instruments and transactions eligible for offset in the statement of financial position and instruments and transactions subject to an agreement similar to a master netting arrangement. ASU 2011-11 is effective for fiscal years, and interim periods within those years, beginning after January 1, 2013. The adoption of ASU 2011-11 did not have a significant impact on the Company’s results of operations or financial position. |
Business_Description_and_Basis1
Business Description and Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Business Description | ' |
Business Description | |
Brightcove Inc. (the Company) is a provider of cloud-based solutions for publishing and distributing professional digital media which enable its customers to publish and distribute video to Internet-connected devices quickly, easily and in a cost-effective manner. | |
The Company is headquartered in Boston, Massachusetts and was incorporated in the state of Delaware on August 24, 2004. At September 30, 2013, the Company had nine wholly-owned subsidiaries: Brightcove UK Ltd, Brightcove Singapore Pte. Ltd., Brightcove Korea, Brightcove Australia Pty Ltd, Brightcove Holdings, Inc., Bright Bay Co. Ltd., Brightcove Kabushiki Kaisha (Brightcove KK), Zencoder Inc. (Zencoder) and Brightcove FZ-LLC. | |
Prior to January 8, 2013, the Company owned a 63% interest in Brightcove KK, which the Company held since the formation of Brightcove KK in 2008. On January 8, 2013, the Company acquired the remaining 37% interest in Brightcove KK and, as a result, Brightcove KK is now 100% owned by the Company. See Note 3 for further discussion on this transaction. | |
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, 2012. | |
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, 2012 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, 2013 and 2012. 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, 2013, 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, 2012, have not changed. | |
Reclassification | ' |
Reclassification | |
Certain prior period amounts have been reclassified to conform to the current period presentation. This reclassification had no impact on the previously reported results of operations or cash flows. | |
Income Taxes | ' |
For the three months ended September 30, 2013 and 2012, the Company recorded an income tax provision (benefit) of $55 and $(3,280), respectively, and $149 and $(3,222), respectively, for the nine months ended September 30, 2013 and 2012. The income tax provision for the three and nine months ended September 30, 2013 relates principally to the Company’s foreign operations. The income tax benefit recorded for the three and nine months ended September 30, 2012 relates principally to a reduction of the Company’s valuation against its existing deferred tax assets to offset certain deferred tax liabilities on amortizable intangibles recognized upon the acquisition of Zencoder. | |
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, management has determined that it is more-likely-than-not that the Company will not utilize the benefits of federal and state U.S. net deferred tax assets for financial reporting purposes. Accordingly, the net deferred tax assets are subject to a valuation allowance at September 30, 2013 and December 31, 2012. | |
The Company has historically provided a valuation allowance against its net deferred tax assets in Japan. Based upon the level of historical income in Japan and future projections, the Company determined in the fourth quarter of 2012 that it was probable it will realize the benefits of its future deductible differences. As such, the Company released the valuation allowance related to the remaining deferred tax assets in Japan. | |
The Company’s income tax return reporting periods since December 31, 2009 are open to income tax audit examination by the federal and state tax authorities. In addition, because the Company has net operating loss carryforwards, the Internal Revenue Service is permitted to audit earlier years and propose adjustments up to the amount of net operating losses generated in those years. There are currently no federal, state or foreign audits in progress. | |
Intangibles - Goodwill and Other | ' |
In July 2012, the Financial Accounting Standards Board (FASB) amended ASC 350, Intangibles — Goodwill and Other. This amendment is intended to simplify how an entity tests indefinite-lived assets other than goodwill for impairment by providing entities with an option to perform a qualitative assessment to determine whether further impairment testing is necessary. The amended provisions will be effective for the Company beginning in the first quarter of fiscal 2014, and early adoption is permitted. This amendment impacts impairment testing steps only, and therefore adoption will not have an impact on the Company’s consolidated financial position, results of operations or cash flows. | |
Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income | ' |
In February 2013, the FASB issued Accounting Standards Update (ASU) No. 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. Under ASU 2013-02, an entity is required to provide information about the amounts reclassified out of Accumulated Other Comprehensive Income (AOCI) by component. In addition, an entity is required to present, either on the face of the financial statements or in the notes, significant amounts reclassified out of AOCI by the respective line items of net income, but only if the amount reclassified is required to be reclassified in its entirety in the same reporting period. For amounts that are not required to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures that provide additional details about those amounts. ASU 2013-02 does not change the current requirements for reporting net income or other comprehensive income in the financial statements. The ASU is effective prospectively for reporting periods beginning after December 15, 2012. The adoption of ASU 2013-02 is not expected to have a significant impact on the Company’s results of operations or financial position. | |
Disclosures about Offsetting Assets and Liabilities | ' |
In December 2011, the FASB issued ASU No. 2011-11, Disclosures about Offsetting Assets and Liabilities. ASU 2011-11 amended ASC 210, Balance Sheet, to converge the presentation of offsetting assets and liabilities between U.S. GAAP and IFRS. ASU 2011-11 requires that entities disclose both gross information and net information about both instruments and transactions eligible for offset in the statement of financial position and instruments and transactions subject to an agreement similar to a master netting arrangement. ASU 2011-11 is effective for fiscal years, and interim periods within those years, beginning after January 1, 2013. The adoption of ASU 2011-11 is not expected to have a significant impact on the Company’s results of operations or financial position. |
Noncontrolling_Interest_Tables
Non-controlling Interest (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Noncontrolling Interest [Abstract] | ' | ||||||||||||||||
Non-controlling Interest | ' | ||||||||||||||||
The following table sets forth the changes in non-controlling interest for the three and nine months ended September 30, 2013 and 2012: | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Balance at beginning of period | $ | — | $ | 1,310 | $ | 1,842 | $ | 1,108 | |||||||||
Net income attributable to non-controlling interest in consolidated subsidiary | — | 220 | 20 | 422 | |||||||||||||
Purchase of non-controlling interest in consolidated subsidiary | — | — | (1,862 | ) | — | ||||||||||||
Balance at end of period | $ | — | $ | 1,530 | $ | — | $ | 1,530 | |||||||||
Cash_Cash_Equivalents_and_Inve1
Cash, Cash Equivalents and Investments (Tables) | 9 Months Ended | ||||||||||||||
Sep. 30, 2013 | |||||||||||||||
Cash And Cash Equivalents [Abstract] | ' | ||||||||||||||
Cash, Cash Equivalents and Investments | ' | ||||||||||||||
Cash, cash equivalents and investments as of September 30, 2013 consist of the following: | |||||||||||||||
September 30, 2013 | |||||||||||||||
Description | Contracted | Amortized | Fair Market | Balance Per | |||||||||||
Maturity | Cost | Value | Balance | ||||||||||||
Sheet | |||||||||||||||
Cash | Demand | $ | 17,257 | $ | 17,257 | $ | 17,257 | ||||||||
Money market funds | Demand | 12,842 | 12,842 | 12,842 | |||||||||||
Total cash and cash equivalents | $ | 30,099 | $ | 30,099 | $ | 30,099 | |||||||||
Certificates of deposit | 17 – 255 days | $ | 1,200 | $ | 1,202 | $ | 1,200 | ||||||||
Corporate debentures | 69 – 188 days | 2,804 | 2,809 | 2,804 | |||||||||||
Total short-term investments | $ | 4,004 | $ | 4,011 | $ | 4,004 | |||||||||
Cash, cash equivalents and investments as of December 31, 2012 consist of the following: | |||||||||||||||
December 31, 2012 | |||||||||||||||
Description | Contracted | Amortized | Fair Market | Balance Per | |||||||||||
Maturity | Cost | Value | Balance | ||||||||||||
Sheet | |||||||||||||||
Cash | Demand | $ | 15,275 | $ | 15,275 | $ | 15,275 | ||||||||
Money market funds | Demand | 6,433 | 6,433 | 6,433 | |||||||||||
Total cash and cash equivalents | $ | 21,708 | $ | 21,708 | $ | 21,708 | |||||||||
Certificates of deposit | 111 – 290 days | $ | 1,200 | $ | 1,200 | $ | 1,200 | ||||||||
Commercial paper | 52 – 100 days | 1,397 | 1,399 | 1,397 | |||||||||||
Corporate debentures | 21 – 342 days | 5,667 | 5,673 | 5,667 | |||||||||||
Total short-term investments | $ | 8,264 | $ | 8,272 | $ | 8,264 | |||||||||
Certificates of deposit | 475 – 528 days | $ | 960 | $ | 962 | $ | 960 | ||||||||
Corporate debentures | 388 – 461 days | 2,109 | 2,118 | 2,109 | |||||||||||
Total long-term investments | $ | 3,069 | $ | 3,080 | $ | 3,069 | |||||||||
Net_Loss_per_Share_Tables
Net Loss per Share (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Reconciliation of Number of Shares Used in Calculation of Basic and Diluted Net Loss Per Share | ' | ||||||||||||||||
A reconciliation of the number of shares used in the calculation of basic and diluted net loss per share is as follows (in thousands): | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Weighted-average shares of common stock outstanding | 28,346 | 27,507 | 28,185 | 23,583 | |||||||||||||
Less: weighted-average number of unvested restricted common shares outstanding | — | 28 | — | 43 | |||||||||||||
Weighted-average number of common shares used in calculating net loss per common share | 28,346 | 27,479 | 28,185 | 23,540 | |||||||||||||
Potentially Dilutive Common Stock Equivalent Shares Excluded from Computation of Weighted-Average Shares Outstanding | ' | ||||||||||||||||
The following potentially dilutive common stock equivalent shares have been excluded from the computation of the weighted-average shares outstanding as their effect would have been anti-dilutive (in thousands): | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Redeemable convertible preferred stock | — | — | — | 2,888 | |||||||||||||
Options outstanding | 3,563 | 3,895 | 3,380 | 4,002 | |||||||||||||
Restricted stock units outstanding | 1,371 | 271 | 1,434 | 214 | |||||||||||||
Unvested restricted shares | — | 28 | — | 43 | |||||||||||||
Warrants | 28 | 31 | 28 | 40 |
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Company's Financial Instruments Carried at Fair Value Using Lowest Level of Input | ' | ||||||||||||||||
The following tables set forth the Company’s financial instruments carried at fair value using the lowest level of input as of September 30, 2013 and December 31, 2012: | |||||||||||||||||
September 30, 2013 | |||||||||||||||||
Quoted | Significant | Significant | Total | ||||||||||||||
Prices in | Other | Unobservable | |||||||||||||||
Active | Observable | Inputs | |||||||||||||||
Markets | Inputs | (Level 3) | |||||||||||||||
for | (Level 2) | ||||||||||||||||
Identical | |||||||||||||||||
Items | |||||||||||||||||
(Level 1) | |||||||||||||||||
Assets: | |||||||||||||||||
Money market funds | $ | 12,842 | $ | — | $ | — | $ | 12,842 | |||||||||
Restricted cash | — | 364 | — | 364 | |||||||||||||
Total assets | $ | 12,842 | $ | 364 | $ | — | $ | 13,206 | |||||||||
December 31, 2012 | |||||||||||||||||
Quoted | Significant | Significant | Total | ||||||||||||||
Prices in | Other | Unobservable | |||||||||||||||
Active | Observable | Inputs | |||||||||||||||
Markets | Inputs | (Level 3) | |||||||||||||||
for | (Level 2) | ||||||||||||||||
Identical | |||||||||||||||||
Items | |||||||||||||||||
(Level 1) | |||||||||||||||||
Assets: | |||||||||||||||||
Money market funds | $ | 6,433 | $ | — | $ | — | $ | 6,433 | |||||||||
Restricted cash | — | 303 | — | 303 | |||||||||||||
Total assets | $ | 6,433 | $ | 303 | $ | — | $ | 6,736 | |||||||||
Stockbased_Compensation_Tables
Stock-based Compensation (Tables) | 9 Months Ended | ||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ||||||||||||||||||
Weighted-Average Assumptions | ' | ||||||||||||||||||
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, | ||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||
Expected life in years | 6.3 | 6.3 | 6.2 | 6.2 | |||||||||||||||
Risk-free interest rate | 2.04 | % | 1.01 | % | 1.79 | % | 1.26 | % | |||||||||||
Volatility | 54 | % | 56 | % | 54 | % | 57 | % | |||||||||||
Dividend yield | — | — | — | — | |||||||||||||||
Weighted-average fair value of stock options granted | $ | 5.64 | $ | 7.87 | $ | 5.08 | $ | 7.9 | |||||||||||
Summary of Status of Company's Stock Option Activity | ' | ||||||||||||||||||
The following is a summary of the status of the Company’s stock options as of September 30, 2013 and the stock option activity for all stock option plans during the nine months ended September 30, 2013. | |||||||||||||||||||
Number of | Exercise Price | Weighted | Weighted | Aggregate | |||||||||||||||
Shares | Per Share | Average | Average | Intrinsic | |||||||||||||||
Exercise | Remaining | Value (1) | |||||||||||||||||
Price Per | Contractual | ||||||||||||||||||
Share | Term | ||||||||||||||||||
(Years) | |||||||||||||||||||
Outstanding at December 31, 2012 | 3,437,879 | $0.31–16.88 | $ | 5.48 | |||||||||||||||
Granted | 703,411 | 6.48–10.61 | 9.6 | ||||||||||||||||
Exercised | (367,613 | ) | 0.31–11.00 | 1.59 | $ | 2,461 | |||||||||||||
Canceled | (271,482 | ) | 1.25–16.88 | 11.28 | |||||||||||||||
Outstanding at September 30, 2013 | 3,502,195 | $0.31–16.88 | $ | 6.27 | 6.95 | $ | 18,515 | ||||||||||||
Exercisable at September 30, 2013 | 2,332,875 | $0.31–16.88 | $ | 4.19 | 5.94 | $ | 16,779 | ||||||||||||
Vested or expected to vest at September 30, 2013 (2) | 3,235,369 | $0.31–16.88 | $ | 5.91 | 6.76 | $ | 18,163 | ||||||||||||
-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, 2013 of $11.25 per share, or the date of exercise, as appropriate, and the exercise price of the underlying options. | ||||||||||||||||||
-2 | This represents the number of vested options as of September 30, 2013 plus the number of unvested options expected to vest as of September 30, 2013 based on the unvested options outstanding at September 30, 2013 adjusted for an estimated forfeiture rate. | ||||||||||||||||||
Restricted Stock Units Award Activity | ' | ||||||||||||||||||
The following table summarizes the restricted stock unit award activity during the nine months ended September 30, 2013: | |||||||||||||||||||
Shares | Weighted | ||||||||||||||||||
Average | |||||||||||||||||||
Grant Date | |||||||||||||||||||
Fair Value | |||||||||||||||||||
Unvested by December 31, 2012 | 1,265,421 | $ | 11.72 | ||||||||||||||||
Granted | 401,791 | 6.76 | |||||||||||||||||
Vested and issued | (88,889 | ) | 7.72 | ||||||||||||||||
Canceled | (170,042 | ) | 10.78 | ||||||||||||||||
Unvested by September 30, 2013 | 1,408,281 | $ | 10.22 | ||||||||||||||||
The following table summarizes the restricted stock award activity during the nine months ended September 30, 2013: | |||||||||||||||||||
Shares | Weighted | Aggregate | |||||||||||||||||
Average | Intrinsic | ||||||||||||||||||
Grant Date | Value | ||||||||||||||||||
Fair Value | |||||||||||||||||||
Unvested by December 31, 2012 | 4,887 | $ | 9.31 | ||||||||||||||||
Granted | — | — | |||||||||||||||||
Vested | (4,887 | ) | $ | 9.31 | |||||||||||||||
Repurchased | — | — | |||||||||||||||||
Unvested by September 30, 2013 | — | $ | — | $ | — | ||||||||||||||
Related_Party_Transactions_Tab
Related Party Transactions (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Related Party Transactions [Abstract] | ' | ||||||||||||||||
Accounts Receivable from Related Parties | ' | ||||||||||||||||
As of September 30, 2013 and December 31, 2012, accounts receivable from related parties was: | |||||||||||||||||
September 30, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
J-Stream | $ | — | $ | 432 | |||||||||||||
Dentsu | — | 19 | |||||||||||||||
Total related party accounts receivable | $ | — | $ | 451 | |||||||||||||
Recorded Revenue from Related Parties | ' | ||||||||||||||||
For the three and nine months ended September 30, 2013 and 2012, the Company recorded revenue from related parties of: | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013(1) | 2012 | ||||||||||||||
J-Stream | $ | — | $ | 899 | $ | 36 | $ | 2,543 | |||||||||
Dentsu | — | 66 | 6 | 201 | |||||||||||||
Total related party revenue | $ | — | $ | 965 | $ | 42 | $ | 2,744 | |||||||||
-1 | Represents related party revenue for the period from January 1, 2013 through January 7, 2013, which is the period prior to the Company’s acquisition of the remaining 37% interest in Brightcove KK on January 8, 2013. |
Segment_Information_Tables
Segment Information (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Total Revenue from Unaffiliated Customers by Geographic Area, Based on Location of Customer | ' | ||||||||||||||||
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, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Revenue: | |||||||||||||||||
North America | $ | 17,026 | $ | 13,885 | $ | 48,234 | $ | 40,507 | |||||||||
Europe | 7,071 | 4,849 | 18,959 | 14,599 | |||||||||||||
Japan | 1,714 | 1,581 | 4,685 | 4,311 | |||||||||||||
Asia Pacific | 2,508 | 1,582 | 7,710 | 3,788 | |||||||||||||
Other | 208 | 174 | 561 | 430 | |||||||||||||
Total revenue | $ | 28,527 | $ | 22,071 | $ | 80,149 | $ | 63,635 | |||||||||
Business_Description_and_Basis2
Business Description and Basis of Presentation - Additional Information (Detail) | 1 Months Ended | 9 Months Ended | |
Jan. 31, 2013 | Sep. 30, 2013 | Jan. 08, 2013 | |
Organization And Basis Of Presentation [Line Items] | ' | ' | ' |
Number of wholly-owned subsidiaries | ' | 9 | ' |
Brightcove KK [Member] | ' | ' | ' |
Organization And Basis Of Presentation [Line Items] | ' | ' | ' |
Equity method investment ownership percentage | ' | 63.00% | 63.00% |
Cumulative ownership interest | 37.00% | 37.00% | ' |
Percentage of interest acquired | ' | ' | 100.00% |
Business_Combination_Additiona
Business Combination - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 1 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Aug. 31, 2012 |
Zencoder [Member] | |||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' |
Purchase price | ' | ' | $27,379 | ' | $27,379 |
Merger-related expenses | 370 | 756 | 1,461 | 1,235 | ' |
Payment to retain certain key employees | ' | ' | 2,667 | ' | ' |
Retention period | ' | ' | '2 years | ' | ' |
Retention expense recorded to the condensed consolidated statement of operations | $370 | $281 | $1,461 | $281 | ' |
Noncontrolling_Interest_Additi
Non-controlling Interest - Additional Information (Detail) (USD $) | 9 Months Ended | 1 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Dec. 31, 2012 | Jan. 31, 2013 | Sep. 30, 2013 | Jan. 08, 2013 | |
Brightcove KK [Member] | Brightcove KK [Member] | Brightcove KK [Member] | |||
Schedule of Variable Interest Entities for Loans to Commercial Borrowers [Line Items] | ' | ' | ' | ' | ' |
Cash invested by minority stockholders | ' | ' | ' | $4,800,000 | ' |
Cumulative ownership interest | ' | ' | 37.00% | 37.00% | ' |
Equity method investment ownership percentage | ' | ' | ' | 63.00% | 63.00% |
Percentage of interest acquired | ' | ' | ' | ' | 100.00% |
Acquisition purchase price | 27,379,000 | ' | 1,100,000 | ' | ' |
Purchase price recorded as additional-paid-in-capital | $174,019,000 | $167,912,000 | $1,100,000 | ' | ' |
Noncontrolling_Interest_Noncon
Non-controlling Interest - Non-controlling Interest (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Noncontrolling Interest [Abstract] | ' | ' | ' | ' |
Balance at beginning of period | ' | $1,310 | $1,842 | $1,108 |
Net income attributable to non-controlling interest in consolidated subsidiary | ' | 220 | 20 | 422 |
Purchase of non-controlling interest in consolidated subsidiary | ' | ' | -1,084 | ' |
Balance at end of period | ' | $1,530 | ' | $1,530 |
Concentration_of_Credit_Risk_A
Concentration of Credit Risk - Additional Information (Detail) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 |
Customer | Customer | Customer | |
Risks And Uncertainties [Abstract] | ' | ' | ' |
Number of individual customer net accounts receivable | 0 | 0 | 0 |
Cash_Cash_Equivalents_and_Inve2
Cash, Cash Equivalents and Investments - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2013 | |
Fair Value Disclosures [Abstract] | ' |
Original maturity period of highly liquid investments | 'Three months or less |
Maturity period short-term investments | 'Less than one year |
Maturity period long-term investments | 'Excess of one year |
Cash_Cash_Equivalents_and_Inve3
Cash, Cash Equivalents and Investments - Cash, Cash Equivalents and Investments (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Cash and Cash Equivalents [Line Items] | ' | ' | ' | ' |
Amortized Cost | $30,099 | $21,708 | ' | ' |
Fair Market Value | 30,099 | 21,708 | ' | ' |
Balance Per Balance Sheet | 30,099 | 21,708 | 16,940 | 17,227 |
Short-term investments, Fair Market Value | 4,011 | 8,272 | ' | ' |
Short-term investments, Amortized Cost | 4,004 | 8,264 | ' | ' |
Short-term investments, Balance Per Balance Sheet | 4,004 | 8,264 | ' | ' |
Long-term investments, Amortized Cost | ' | 3,069 | ' | ' |
Long-term investments, Fair Market Value | ' | 3,080 | ' | ' |
Long-term investments, Balance Per Balance Sheet | ' | 3,069 | ' | ' |
Certificates of Deposit [Member] | ' | ' | ' | ' |
Cash and Cash Equivalents [Line Items] | ' | ' | ' | ' |
Certificates of deposit, Amortized Cost | 1,200 | 1,200 | ' | ' |
Short-term investments, Fair Market Value | 1,202 | 1,200 | ' | ' |
Short-term investments, Balance Per Balance Sheet | 1,200 | 1,200 | ' | ' |
Long-term investments, Amortized Cost | ' | 960 | ' | ' |
Long-term investments, Fair Market Value | ' | 962 | ' | ' |
Long-term investments, Balance Per Balance Sheet | ' | 960 | ' | ' |
Certificates of Deposit [Member] | Minimum [Member] | ' | ' | ' | ' |
Cash and Cash Equivalents [Line Items] | ' | ' | ' | ' |
Long-term investments, Contracted Maturity | ' | '475 days | ' | ' |
Short-term investments, Contracted Maturity | '17 days | '111 days | ' | ' |
Certificates of Deposit [Member] | Maximum [Member] | ' | ' | ' | ' |
Cash and Cash Equivalents [Line Items] | ' | ' | ' | ' |
Long-term investments, Contracted Maturity | ' | '528 days | ' | ' |
Short-term investments, Contracted Maturity | '255 days | '290 days | ' | ' |
Corporate Debentures [Member] | ' | ' | ' | ' |
Cash and Cash Equivalents [Line Items] | ' | ' | ' | ' |
Short-term investments, Fair Market Value | 2,809 | 5,673 | ' | ' |
Short-term investments, Amortized Cost | 2,804 | 5,667 | ' | ' |
Short-term investments, Balance Per Balance Sheet | 2,804 | 5,667 | ' | ' |
Long-term investments, Amortized Cost | ' | 2,109 | ' | ' |
Long-term investments, Fair Market Value | ' | 2,118 | ' | ' |
Long-term investments, Balance Per Balance Sheet | ' | 2,109 | ' | ' |
Corporate Debentures [Member] | Minimum [Member] | ' | ' | ' | ' |
Cash and Cash Equivalents [Line Items] | ' | ' | ' | ' |
Long-term investments, Contracted Maturity | ' | '388 days | ' | ' |
Short-term investments, Contracted Maturity | '69 days | '21 days | ' | ' |
Corporate Debentures [Member] | Maximum [Member] | ' | ' | ' | ' |
Cash and Cash Equivalents [Line Items] | ' | ' | ' | ' |
Long-term investments, Contracted Maturity | ' | '461 days | ' | ' |
Short-term investments, Contracted Maturity | '188 days | '342 days | ' | ' |
Cash [Member] | ' | ' | ' | ' |
Cash and Cash Equivalents [Line Items] | ' | ' | ' | ' |
Contracted Maturity | 'Demand | 'Demand | ' | ' |
Amortized Cost | 17,257 | 15,275 | ' | ' |
Fair Market Value | 17,257 | 15,275 | ' | ' |
Balance Per Balance Sheet | 17,257 | 15,275 | ' | ' |
Money Market Funds [Member] | ' | ' | ' | ' |
Cash and Cash Equivalents [Line Items] | ' | ' | ' | ' |
Contracted Maturity | 'Demand | 'Demand | ' | ' |
Amortized Cost | 12,842 | 6,433 | ' | ' |
Fair Market Value | 12,842 | 6,433 | ' | ' |
Balance Per Balance Sheet | 12,842 | 6,433 | ' | ' |
Commercial Paper [Member] | ' | ' | ' | ' |
Cash and Cash Equivalents [Line Items] | ' | ' | ' | ' |
Short-term investments, Fair Market Value | ' | 1,399 | ' | ' |
Short-term investments, Amortized Cost | ' | 1,397 | ' | ' |
Short-term investments, Balance Per Balance Sheet | ' | $1,397 | ' | ' |
Commercial Paper [Member] | Minimum [Member] | ' | ' | ' | ' |
Cash and Cash Equivalents [Line Items] | ' | ' | ' | ' |
Short-term investments, Contracted Maturity | ' | '52 days | ' | ' |
Commercial Paper [Member] | Maximum [Member] | ' | ' | ' | ' |
Cash and Cash Equivalents [Line Items] | ' | ' | ' | ' |
Short-term investments, Contracted Maturity | ' | '100 days | ' | ' |
Net_Loss_per_Share_Reconciliat
Net Loss per Share - Reconciliation of Number of Shares Used in Calculation of Basic and Diluted Net Loss Per Share (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Net Income Per Share [Line Items] | ' | ' | ' | ' |
Weighted-average shares of common stock outstanding | 28,346,000 | 27,507,000 | 28,185,000 | 23,583,000 |
Less: weighted-average number of unvested restricted common shares outstanding | 1,371,000 | 271,000 | 1,434,000 | 214,000 |
Weighted-average number of common shares used in calculating net loss per common share | 28,345,519 | 27,478,705 | 28,184,533 | 23,539,859 |
Restricted Stock [Member] | ' | ' | ' | ' |
Net Income Per Share [Line Items] | ' | ' | ' | ' |
Less: weighted-average number of unvested restricted common shares outstanding | ' | 28,000 | ' | 43,000 |
Net_Loss_per_Share_Potentially
Net Loss per Share - Potentially Dilutive Common Stock Equivalent Shares Excluded from Computation of Weighted-Average Shares Outstanding (Detail) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Net Income Per Share [Line Items] | ' | ' | ' | ' |
Redeemable convertible preferred stock | ' | ' | ' | 2,888 |
Options outstanding | 1,371 | 271 | 1,434 | 214 |
Warrants | 28 | 31 | 28 | 40 |
Employee Stock Option [Member] | ' | ' | ' | ' |
Net Income Per Share [Line Items] | ' | ' | ' | ' |
Options outstanding | 3,563 | 3,895 | 3,380 | 4,002 |
Restricted Stock [Member] | ' | ' | ' | ' |
Net Income Per Share [Line Items] | ' | ' | ' | ' |
Options outstanding | ' | 28 | ' | 43 |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments - Company's Financial Instruments Carried at Fair Value Using Lowest Level of Input (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Money market funds | $30,099 | $21,708 |
Restricted cash | 364 | 303 |
Total assets | 13,206 | 6,736 |
Money Market Funds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Money market funds | 12,842 | 6,433 |
Quoted Prices in Active Markets for Identical Items (Level 1) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Restricted cash | ' | ' |
Total assets | 12,842 | 6,433 |
Quoted Prices in Active Markets for Identical Items (Level 1) [Member] | Money Market Funds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Money market funds | 12,842 | 6,433 |
Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Restricted cash | 364 | 303 |
Total assets | 364 | 303 |
Significant Other Observable Inputs (Level 2) [Member] | Money Market Funds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Money market funds | ' | ' |
Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Restricted cash | ' | ' |
Total assets | ' | ' |
Significant Unobservable Inputs (Level 3) [Member] | Money Market Funds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Money market funds | ' | ' |
Stockbased_Compensation_Weight
Stock-based Compensation - Weighted-Average Assumptions (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Disclosure Of Compensation Related Costs Sharebased Payments [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 | 2.04% | 1.01% | 1.79% | 1.26% |
Volatility | 54.00% | 56.00% | 54.00% | 57.00% |
Dividend yield | ' | ' | ' | ' |
Weighted-average fair value of stock options granted | $5.64 | $7.87 | $5.08 | $7.90 |
Stockbased_Compensation_Additi
Stock-based Compensation - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Jan. 31, 2013 | Sep. 30, 2013 |
Brightcove KK [Member] | Brightcove KK [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' |
Stock-based compensation expense | $1,585 | $1,458 | $4,736 | $3,668 | ' | ' |
Unrecognized stock-based compensation expense | $13,379 | ' | $13,379 | ' | ' | ' |
Weighted average period | '2 years 10 months 24 days | ' | ' | ' | ' | ' |
Cumulative ownership interest | ' | ' | ' | ' | 37.00% | 37.00% |
Stockbased_Compensation_Summar
Stock-based Compensation - Summary of Status of Company's Stock Option Activity (Detail) (USD $) | 9 Months Ended |
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Number of Shares, Outstanding Beginning Balance | 3,437,879 |
Number of Shares, Granted | 703,411 |
Number of Shares, Exercised | -367,613 |
Number of Shares, Canceled | -271,482 |
Number of Shares, Outstanding Ending Balance | 3,502,195 |
Number of Shares, Exercisable | 2,332,875 |
Number of Shares, Vested or expected to vest | 3,235,369 |
Weighted Average Exercise Price, Beginning Balance | $5.48 |
Weighted Average Exercise Price, Granted | $9.60 |
Weighted Average Exercise Price, Exercised | $1.59 |
Weighted Average Exercise Price, Canceled | $11.28 |
Weighted Average Exercise Price, Ending Balance | $6.27 |
Weighted Average Exercise Price, Exercisable | $4.19 |
Weighted Average Exercise Price, Vested and Expected to Vest | $5.91 |
Weighted Average Remaining Contractual Term, Ending Balance | '6 years 11 months 12 days |
Weighted Average Remaining Contractual Term, Exercisable | '5 years 11 months 9 days |
Weighted Average Remaining Contractual Term, Vested and Expected to Vest | '6 years 9 months 4 days |
Aggregate Intrinsic Value, Exercised | $2,461 |
Aggregate Intrinsic Value, Ending Balance | 18,515 |
Aggregate Intrinsic Value, Exercisable | 16,779 |
Aggregate Intrinsic Value, Vested or expected to vest | $18,163 |
Minimum [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Exercise Price, Outstanding Beginning Balance | $0.31 |
Exercise Price, Granted | $6.48 |
Exercise Price , Exercised | $0.31 |
Exercise Price, Canceled | $1.25 |
Exercise Price, Outstanding Ending Balance | $0.31 |
Exercise Price, Exercisable | $0.31 |
Exercise Price, Vested or expected to vest | $0.31 |
Maximum [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Exercise Price, Outstanding Beginning Balance | $16.88 |
Exercise Price, Granted | $10.61 |
Exercise Price , Exercised | $11 |
Exercise Price, Canceled | $16.88 |
Exercise Price, Outstanding Ending Balance | $16.88 |
Exercise Price, Exercisable | $16.88 |
Exercise Price, Vested or expected to vest | $16.88 |
Stockbased_Compensation_Summar1
Stock-based Compensation - Summary of Status of Company's Stock Option Activity (Parenthetical) (Detail) (USD $) | Sep. 30, 2013 |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' |
Fair value of the Company's common stock | $11.25 |
Stockbased_Compensation_Restri
Stock-based Compensation - Restricted Stock Units Award Activity (Detail) (USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Unvested Shares, Beginning Balance | 4,887 |
Granted | ' |
Vested | -4,887 |
Repurchased | ' |
Unvested Shares, Ending Balance | ' |
Weighted Average Grant Date Fair Value, Beginning Balance | $9.31 |
Weighted Average Grant Date Fair Value, Granted | ' |
Weighted Average Grant Date Fair Value, Vested | $9.31 |
Weighted Average Grant Date Fair Value, Repurchased | ' |
Weighted Average Grant Date Fair Value, Ending Balance | ' |
Aggregate Intrinsic Value Beginning Balance | ' |
Aggregate Intrinsic Value, Granted | ' |
Aggregate Intrinsic Value, Vested | ' |
Aggregate Intrinsic Value, Repurchased | ' |
Aggregate Intrinsic Value Ending Balance | ' |
Restricted Stock Units (RSUs) [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Unvested Shares, Beginning Balance | 1,265,421 |
Granted | 401,791 |
Vested | -88,889 |
Canceled | -170,042 |
Unvested Shares, Ending Balance | 1,408,281 |
Weighted Average Grant Date Fair Value, Beginning Balance | $11.72 |
Weighted Average Grant Date Fair Value, Granted | $6.76 |
Weighted Average Grant Date Fair Value, Vested | $7.72 |
Weighted Average Grant Date Fair Value, Canceled | $10.78 |
Weighted Average Grant Date Fair Value, Ending Balance | $10.22 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' |
Income tax provision (benefit) | $55 | ($3,280) | $149 | ($3,222) |
Debt_Additional_Information_De
Debt - Additional Information (Detail) (USD $) | 1 Months Ended | 9 Months Ended | 12 Months Ended | 1 Months Ended | ||
Feb. 29, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Apr. 30, 2013 | |
Secured Debt [Member] | Second Modification Agreement [Member] | Second Modification Agreement [Member] | ||||
Subsequent Event [Member] | ||||||
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' | ' |
Company's eligible accounts receivable | ' | $8,000,000 | ' | ' | ' | $10,000,000 |
Percentage of eligible accounts receivable | ' | 80.00% | ' | ' | ' | ' |
Basis spread on variable rate | ' | 1.50% | ' | ' | ' | ' |
Outstanding borrowings under modification agreement | ' | 0 | 0 | ' | 0 | ' |
Payment under modification agreement | 7,000,000 | ' | ' | ' | ' | ' |
Term loan advances | ' | ' | ' | 7,000,000 | ' | ' |
Percentage of outstanding balance | 2.00% | ' | ' | ' | ' | ' |
Final payment | $140,000,000 | ' | ' | ' | ' | ' |
Line of Credit maturity date | ' | ' | ' | ' | ' | 30-Mar-15 |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Detail) (Brightcove KK [Member]) | 1 Months Ended | 9 Months Ended | |
Jan. 31, 2013 | Sep. 30, 2013 | Jan. 08, 2013 | |
Person | |||
Brightcove KK [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Number of minority interest holders act as product distributors | ' | 2 | ' |
Percentage of interest acquired | ' | ' | 100.00% |
Cumulative ownership interest | 37.00% | 37.00% | ' |
Related_Party_Transactions_Acc
Related Party Transactions - Accounts Receivable from Related Parties (Detail) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Related Party Transaction [Line Items] | ' | ' |
Total related party accounts receivable | ' | $451 |
J-Stream [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Total related party accounts receivable | ' | 432 |
Dentsu [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Total related party accounts receivable | ' | $19 |
Related_Party_Transactions_Rec
Related Party Transactions - Recorded Revenue from Related Parties (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Related Party Transaction [Line Items] | ' | ' | ' | ' |
Total related party revenue | ' | $965 | $42 | $2,744 |
J-Stream [Member] | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' |
Total related party revenue | ' | 899 | 36 | 2,543 |
Dentsu [Member] | ' | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' | ' |
Total related party revenue | ' | $66 | $6 | $201 |
Related_Party_Transactions_Rec1
Related Party Transactions - Recorded Revenue from Related Parties (Parenthetical) (Detail) (Brightcove KK [Member]) | 1 Months Ended | 9 Months Ended |
Jan. 31, 2013 | Sep. 30, 2013 | |
Brightcove KK [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Cumulative ownership interest | 37.00% | 37.00% |
Segment_Information_Total_Reve
Segment Information - Total Revenue from Unaffiliated Customers by Geographic Area, Based on Location of Customer (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ||||
Total revenue | $28,527 | [1] | $22,071 | [1] | $80,149 | [1] | $63,635 | [1] |
North America [Member] | Operating Segments [Member] | ' | ' | ' | ' | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ||||
Total revenue | 17,026 | 13,885 | 48,234 | 40,507 | ||||
Europe [Member] | Operating Segments [Member] | ' | ' | ' | ' | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ||||
Total revenue | 7,071 | 4,849 | 18,959 | 14,599 | ||||
Japan [Member] | Operating Segments [Member] | ' | ' | ' | ' | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ||||
Total revenue | 1,714 | 1,581 | 4,685 | 4,311 | ||||
Asia Pacific [Member] | Operating Segments [Member] | ' | ' | ' | ' | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ||||
Total revenue | 2,508 | 1,582 | 7,710 | 3,788 | ||||
Other [Member] | Operating Segments [Member] | ' | ' | ' | ' | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ||||
Total revenue | $208 | $174 | $561 | $430 | ||||
[1] | Includes related party revenue (Note 13) $ - $ 965 $ 42 $ 2,744 |
Segment_Information_Additional
Segment Information - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ||||
Revenues from customers | $28,527 | [1] | $22,071 | [1] | $80,149 | [1] | $63,635 | [1] |
Revenue percentage from international country to the company's total revenue | 10.00% | 10.00% | 10.00% | 10.00% | ||||
United States [Member] | ' | ' | ' | ' | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ||||
Revenues from customers | $15,739 | $12,893 | $44,597 | $37,227 | ||||
[1] | Includes related party revenue (Note 13) $ - $ 965 $ 42 $ 2,744 |