Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Oct. 28, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | BCOV | |
Entity Registrant Name | BRIGHTCOVE INC | |
Entity Central Index Key | 1,313,275 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 33,783,814 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 35,192 | $ 27,637 |
Accounts receivable, net of allowance of $168 and $332 at September 30, 2016 and December 31, 2015, respectively | 22,710 | 21,213 |
Prepaid expenses | 4,168 | 3,320 |
Other current assets | 1,634 | 1,259 |
Total current assets | 63,704 | 53,429 |
Property and equipment, net | 9,501 | 8,689 |
Intangible assets, net | 11,753 | 13,786 |
Goodwill | 50,776 | 50,776 |
Deferred tax asset | 80 | 63 |
Restricted cash, net of current portion | 201 | 201 |
Other assets | 956 | 724 |
Total assets | 136,971 | 127,668 |
Current liabilities: | ||
Accounts payable | 3,659 | 3,302 |
Accrued expenses | 14,426 | 12,849 |
Capital lease liability | 551 | 850 |
Equipment financing | 304 | |
Deferred revenue | 34,690 | 29,836 |
Total current liabilities | 53,630 | 46,837 |
Deferred revenue, net of current portion | 5 | 95 |
Other liabilities | 2,033 | 2,601 |
Total liabilities | 55,668 | 49,533 |
Commitments and contingencies (Note 9) | ||
Stockholders' equity: | ||
Undesignated preferred stock, $0.001 par value; 5,000,000 shares authorized; no shares issued | ||
Common stock, $0.001 par value; 100,000,000 shares authorized; 33,863,052 and 32,810,631 shares issued at September 30, 2016 and December 31, 2015, respectively | 34 | 33 |
Additional paid-in capital | 229,004 | 220,458 |
Treasury stock, at cost; 135,000 shares | (871) | (871) |
Accumulated other comprehensive loss | (644) | (888) |
Accumulated deficit | (146,220) | (140,597) |
Total stockholders' equity | 81,303 | 78,135 |
Total liabilities and stockholders' equity | $ 136,971 | $ 127,668 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Allowance for accounts receivable | $ 168 | $ 332 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 33,863,052 | 32,810,631 |
Treasury stock, shares | 135,000 | 135,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Revenue: | ||||
Subscription and support revenue | $ 36,203 | $ 33,184 | $ 105,936 | $ 96,912 |
Professional services and other revenue | 2,186 | 653 | 5,705 | 2,658 |
Total revenue | 38,389 | 33,837 | 111,641 | 99,570 |
Cost of revenue: | ||||
Cost of subscription and support revenue | 11,691 | 10,314 | 35,041 | 31,017 |
Cost of professional services and other revenue | 2,086 | 1,198 | 5,453 | 3,645 |
Total cost of revenue | 13,777 | 11,512 | 40,494 | 34,662 |
Gross profit | 24,612 | 22,325 | 71,147 | 64,908 |
Operating expenses: | ||||
Research and development | 7,704 | 7,233 | 22,385 | 22,320 |
Sales and marketing | 13,334 | 11,664 | 39,845 | 34,406 |
General and administrative | 5,126 | 4,391 | 14,190 | 14,761 |
Merger-related | 62 | 21 | 138 | |
Total operating expenses | 26,164 | 23,350 | 76,441 | 71,625 |
Loss from operations | (1,552) | (1,025) | (5,294) | (6,717) |
Other expense, net | (5) | (127) | (127) | (780) |
Loss before income taxes | (1,557) | (1,152) | (5,421) | (7,497) |
Provision for income taxes | 61 | 123 | 202 | 255 |
Net loss | $ (1,618) | $ (1,275) | $ (5,623) | $ (7,752) |
Net loss per share - basic and diluted | $ (0.05) | $ (0.04) | $ (0.17) | $ (0.24) |
Weighted-average number of common shares used in computing net loss per share | 33,345,161 | 32,636,084 | 32,956,186 | 32,560,478 |
Cost of Subscription and Support Revenue [Member] | ||||
Stock-based compensation included in above line items: | ||||
Stock-based compensation | $ 94 | $ 30 | $ 204 | $ 101 |
Amortization of acquired intangible assets included in above line items: | ||||
Amortization of acquired intangible assets | 507 | 508 | 1,523 | 1,523 |
Cost of Professional Services and Other Revenue [Member] | ||||
Stock-based compensation included in above line items: | ||||
Stock-based compensation | 69 | 79 | 158 | 131 |
Research and Development [Member] | ||||
Stock-based compensation included in above line items: | ||||
Stock-based compensation | 372 | 400 | 942 | 1,060 |
Amortization of acquired intangible assets included in above line items: | ||||
Amortization of acquired intangible assets | 32 | 31 | 95 | 94 |
Sales and Marketing [Member] | ||||
Stock-based compensation included in above line items: | ||||
Stock-based compensation | 651 | 843 | 1,630 | 1,764 |
Amortization of acquired intangible assets included in above line items: | ||||
Amortization of acquired intangible assets | 245 | 235 | 715 | 736 |
General and Administrative [Member] | ||||
Stock-based compensation included in above line items: | ||||
Stock-based compensation | $ 495 | $ 171 | $ 1,331 | $ 1,256 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (1,618) | $ (1,275) | $ (5,623) | $ (7,752) |
Other comprehensive (loss) income: | ||||
Foreign currency translation adjustments | (13) | 15 | (244) | 61 |
Comprehensive loss | $ (1,631) | $ (1,260) | $ (5,867) | $ (7,691) |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Operating activities | ||
Net loss | $ (5,623) | $ (7,752) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 5,901 | 6,898 |
Stock-based compensation | 4,265 | 4,312 |
Provision for reserves on accounts receivable | 233 | 317 |
Loss on disposal of equipment | 45 | |
Changes in assets and liabilities: | ||
Accounts receivable | (1,441) | 1,050 |
Prepaid expenses and other current assets | (1,720) | (441) |
Other assets | (200) | (478) |
Accounts payable | (17) | 1,001 |
Accrued expenses | 1,953 | (1,660) |
Deferred revenue | 4,278 | 957 |
Net cash provided by operating activities | 7,629 | 4,249 |
Investing activities | ||
Cash paid for purchase of intangible asset | (300) | |
Purchases of property and equipment, net of returns | (1,194) | (2,479) |
Capitalized internal-use software costs | (2,940) | (1,020) |
Net cash used in investing activities | (4,434) | (3,499) |
Financing activities | ||
Proceeds from exercise of stock options | 4,392 | 72 |
Payments of withholding tax on RSU vesting | (216) | (48) |
Proceeds from equipment financing | 604 | 1,704 |
Payments on equipment financing | (196) | (576) |
Payments under capital lease obligation | (682) | (988) |
Net cash provided by financing activities | 3,902 | 164 |
Effect of exchange rate changes on cash | 458 | (42) |
Net increase in cash and cash equivalents | 7,555 | 872 |
Cash and cash equivalents at beginning of period | 27,637 | 22,916 |
Cash and cash equivalents at end of period | $ 35,192 | 23,788 |
Supplemental disclosure of non-cash financing activities | ||
Purchase of equipment and support under capital lease | $ 875 |
Business Description and Basis
Business Description and Basis of Presentation | 9 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business Description and Basis of Presentation | 1. Business Description and Basis of Presentation Business Description Brightcove Inc. (the Company) is a leading global provider of cloud services for video which enable its customers to publish and distribute video to Internet-connected devices quickly, easily and in a cost-effective and high-quality manner. The Company is headquartered in Boston, Massachusetts and was incorporated in the state of Delaware on August 24, 2004. At September 30, 2016, the Company had nine wholly-owned subsidiaries: Brightcove UK Ltd, Brightcove Singapore Pte. Ltd., Brightcove Korea, Brightcove Australia Pty Ltd, Brightcove Holdings, Inc., Brightcove Kabushiki Kaisha (Brightcove KK), Zencoder Inc. (Zencoder), Brightcove FZ-LLC, and Cacti Acquisition LLC. On March 10, 2016, the Company purchased an intangible asset for $300 plus a contingent amount of up to an additional $250 to be determined on the 90 th 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, 2015. 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, 2015 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, 2016 and 2015. 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, 2016, 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, 2015, have not changed. |
Concentration of Credit Risk
Concentration of Credit Risk | 9 Months Ended |
Sep. 30, 2016 | |
Risks and Uncertainties [Abstract] | |
Concentration of Credit Risk | 2. Concentration of Credit Risk The Company has no significant off-balance sheet risk, such as foreign exchange contracts, option contracts or other foreign hedging arrangements. Financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of cash, cash equivalents and trade accounts receivable. The Company maintains its cash and cash equivalents principally with accredited financial institutions of high credit standing. Although the Company deposits its cash with multiple financial institutions, its deposits, at times, may exceed federally insured limits. The Company routinely assesses the creditworthiness of its customers. The Company generally has not experienced any material losses related to receivables from individual customers, or groups of customers. The Company does not require collateral. 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, 2016 and December 31, 2015, no individual customer accounted for 10% or more of net accounts receivable. For the three and nine months ended September 30, 2016 and 2015, no individual customer accounted for 10% or more of total revenue. |
Concentration of Other Risks
Concentration of Other Risks | 9 Months Ended |
Sep. 30, 2016 | |
Text Block [Abstract] | |
Concentration of Other Risks | 3. Concentration of Other Risks The Company is dependent on certain content delivery network providers who provide digital media delivery functionality enabling the Company’s on-demand application service to function as intended for the Company’s customers and ultimate end-users. The disruption of these services could have a material adverse effect on the Company’s business, financial position, and results of operations. |
Cash and Cash Equivalents
Cash and Cash Equivalents | 9 Months Ended |
Sep. 30, 2016 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents | 4. Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less at the date of purchase to be cash equivalents. Management determines the appropriate classification of investments at the time of purchase, and re-evaluates such determination at each balance sheet date. The Company did not have any short-term or long-term investments at September 30, 2016 or December 31, 2015. Cash and cash equivalents primarily consist of cash on deposit with banks and amounts held in interest-bearing money market accounts. Cash equivalents are carried at cost, which approximates their fair market value. Cash and cash equivalents as of September 30, 2016 consist of the following: September 30, 2016 Description Contracted Maturity Amortized Cost Fair Market Value Balance Per Balance Sheet Cash Demand $ 25,584 $ 25,584 $ 25,584 Money market funds Demand 9,608 9,608 9,608 Total cash and cash equivalents $ 35,192 $ 35,192 $ 35,192 Cash and cash equivalents as of December 31, 2015 consist of the following: December 31, 2015 Description Contracted Maturity Amortized Cost Fair Market Value Balance Per Balance Sheet Cash Demand $ 18,057 $ 18,057 $ 18,057 Money market funds Demand 9,580 9,580 9,580 Total cash and cash equivalents $ 27,637 $ 27,637 $ 27,637 |
Net Loss per Share
Net Loss per Share | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Net Loss per Share | 5. Net Loss per Share The following potentially dilutive common stock equivalent shares have been excluded from the computation of weighted-average shares outstanding as their effect would have been anti-dilutive (in thousands): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Options outstanding 4,152 4,181 4,419 4,133 Restricted stock units outstanding 1,752 1,094 1,604 982 Warrants 21 28 26 28 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | 6. Fair Value of Financial Instruments The following tables set forth the Company’s financial instruments carried at fair value using the lowest level of input as of September 30, 2016 and December 31, 2015: September 30, 2016 Quoted Prices in Active Markets for Identical Items (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Assets: Money market funds $ 9,608 $ — $ — $ 9,608 Restricted cash — 201 — 201 Total assets $ 9,608 $ 201 $ — $ 9,809 December 31, 2015 Quoted Prices in Active Markets for Identical Items (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Assets: Money market funds $ 9,580 $ — $ — $ 9,580 Restricted cash — 201 — 201 Total assets $ 9,580 $ 201 $ — $ 9,781 |
Stock-based Compensation
Stock-based Compensation | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-based Compensation | 7. Stock-based Compensation The fair value of stock options granted was estimated at the date of grant using the following weighted-average assumptions: Three Months Ended Nine Months Ended 2016 2015 2016 2015 Expected life in years 6.2 6.3 6.1 6.2 Risk-free interest rate 1.35 % 1.90 % 1.41 % 1.85 % Volatility 45 % 46 % 45 % 47 % Dividend yield — — — — Weighted-average fair value of stock options granted $ 4.98 $ 2.49 $ 4.17 $ 3.25 The Company recorded stock-based compensation expense of $1,681 and $1,523 for the three months ended September 30, 2016 and 2015, respectively, and $4,265 and $4,312 for the nine months ended September 30, 2016 and 2015, respectively. As of September 30, 2016, there was $13,113 of unrecognized stock-based compensation expense related to stock-based awards that is expected to be recognized over a weighted-average period of 2.55 years. The following is a summary of the status of the Company’s stock options as of September 30, 2016 and the stock option activity during the nine months ended September 30, 2016. Number of Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (In Years) Aggregate Intrinsic Value (1) Outstanding at December 31, 2015 4,622,886 $ 6.63 Granted 497,238 9.32 Exercised (797,895 ) 5.50 $ 4,285 Canceled (378,193 ) 8.83 Outstanding at September 30, 2016 3,944,036 $ 6.99 7.05 $ 24,248 Exercisable at September 30, 2016 1,790,873 $ 6.26 5.03 $ 12,464 Vested or expected to vest at September 30, 2016 (2) 3,439,754 $ 6.89 6.78 $ 21,527 (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, 2016 of $13.05 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, 2016 plus the number of unvested options expected to vest as of September 30, 2016 based on the unvested options outstanding at September 30, 2016 adjusted for an estimated forfeiture rate. The following table summarizes the restricted stock unit activity during the nine months ended September 30, 2016: Shares Weighted Average Grant Date Fair Value Unvested by December 31, 2015 1,503,814 $ 6.69 Granted 819,623 11.08 Vested and issued (233,992 ) 5.83 Canceled (194,258 ) 6.79 Unvested by September 30, 2016 1,895,187 $ 7.78 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 8. Income Taxes For the three months ended September 30, 2016 and 2015, the Company recorded income tax expense of $61 and $123, respectively. For the nine months ended September 30, 2016 and 2015, the Company recorded income tax expense of $202 and $255, respectively. The income tax expense relates principally to the Company’s foreign operations. 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 Accounting Standards Codification (ASC) 740, Income Taxes |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 9. Commitments and Contingencies Legal Matters The Company, from time to time, is party to litigation arising in the ordinary course of business. Management does not believe that the outcome of these claims will have a material adverse effect on the consolidated financial position, results of operations or cash flows of the Company based on the status of proceedings at this time. On July 8, 2016, a complaint was filed by Brand Technologies, Inc. naming the Company, along with several others, as a defendant in a case alleging copyright infringement, violations of the Lanham Act, unfair competition and related claims (Brand Technologies, Inc. v. Cox Enterprises, Inc., et al., United States District Court for the Central District of California). The complaint alleges that Cox Media Group (CMG) engaged in the unlicensed provision of copyrighted videos owned by the plaintiff on CMG websites by using a Brightcove technology. The complaint seeks actual and statutory damages, costs and injunctive relief. On September 22, 2016, the plaintiff filed an amended complaint. The Company has not yet answered the amended complaint or otherwise filed a responsive pleading. The Company cannot yet determine whether it is probable that a loss will be incurred in connection with this complaint, nor can the Company reasonably estimate the potential loss, if any. On July 30, 2016, a complaint was filed by Autumn Cloud LLC naming the Company as a defendant in a patent infringement case (Autumn Cloud LLC v. Brightcove Inc., United States District Court for the Eastern District of Texas). The complaint alleges that Brightcove has infringed U.S. Patent 7,606,843 with an issue date of October 20, 2009, entitled “System and Method for Customizing the Storage and Management of Device Data in a Networked Environment,” and U.S. Patent 8,239,347 with an issue date of August 7, 2012, entitled “System and Method for Customizing the Storage and Management of Device Data in a Networked Environment.” The complaint seeks monetary damages and declarations of infringement. Autumn Cloud has not yet served the complaint on Brightcove. Brightcove cannot yet determine whether it is probable that a loss will be incurred in connection with this complaint, nor can we reasonably estimate the potential loss, if any. Guarantees and Indemnification Obligations The Company typically enters into indemnification agreements in the ordinary course of business. Pursuant to these agreements, the Company indemnifies and agrees to reimburse the indemnified party for losses and costs incurred by the indemnified party, generally the Company’s customers, in connection with patent, copyright, trade secret, or other intellectual property or personal right infringement claim by third parties with respect to the Company’s technology. The term of these indemnification agreements is generally perpetual after execution of the agreement. Based on when customers first subscribe for the Company’s service, the maximum potential amount of future payments the Company could be required to make under certain of these indemnification agreements is unlimited, however, more recently the Company has typically limited the maximum potential value of such potential future payments in relation to the value of the contract. Based on historical experience and information known as of September 30, 2016, the Company has not incurred any costs for the above guarantees and indemnities. The Company has received requests for indemnification from customers in connection with patent infringement suits brought against the customer by a third party. To date, the Company has not agreed that the requested indemnification is required by the Company’s contract with any such customer. In certain circumstances, the Company warrants that its products and services will perform in all material respects in accordance with its standard published specification documentation in effect at the time of delivery of the licensed products and services to the customer for the warranty period of the product or service. To date, the Company has not incurred significant expense under its warranties and, as a result, the Company believes the estimated fair value of these agreements is immaterial. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Debt | 10. Debt On November 19, 2015, the Company entered into an amended and restated loan and security agreement with a lender (the “Loan Agreement”) providing for up to a $20.0 million asset based line of credit (the “Line of Credit”). Under the Line of Credit, the Company can borrow up to $20.0 million. Borrowings under the Line of Credit are secured by substantially all of the Company’s assets, excluding our intellectual property. Outstanding amounts under the Line of Credit accrue interest at a rate equal to the prime rate or the LIBOR rate plus 2.5%. Under the Loan Agreement, the Company must comply with certain financial covenants, including maintaining a minimum asset coverage ratio. If the outstanding principal during any month is at least $15.0 million, the Company must also maintain a minimum net income threshold based on non-GAAP operating measures. Failure to comply with these covenants, or the occurrence of an event of default, could permit the lender under the Line of Credit to declare all amounts borrowed under the Line of Credit, together with accrued interest and fees, to be immediately due and payable. The Company was in compliance with all covenants under the Line of Credit as of September 30, 2016. As the Company has not drawn on the Line of Credit, there are no amounts outstanding as of September 30, 2016. On December 31, 2015, the Company entered into an equipment financing agreement with a lender (the “December 2015 Equipment Financing Agreement”) to finance the purchase of $604 in computer equipment. In February 2016, the Company drew down $604 under the December 2015 Equipment Financing Agreement, and the liability was recorded at fair value using a market interest rate. The Company is repaying its obligation over a two year period through January 2018, and the amount outstanding was $408 as of September 30, 2016. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | 11. Segment Information Geographic Data Total revenue from unaffiliated customers by geographic area, based on the location of the customer, was as follows: Three Months Ended Nine Months Ended 2016 2015 2016 2015 Revenue: North America $ 23,246 $ 22,118 $ 68,913 $ 63,636 Europe 6,412 6,049 18,843 19,235 Japan 4,243 2,249 11,447 6,294 Asia Pacific 4,136 3,035 11,495 9,144 Other 352 386 943 1,261 Total revenue $ 38,389 $ 33,837 $ 111,641 $ 99,570 North America is comprised of revenue from the United States, Canada and Mexico. Revenue from customers located in the United States was $21,793 and $20,652 during the three months ended September 30, 2016 and 2015, respectively, and $64,615 and $59,403 during the nine months ended September 30, 2016 and 2015, respectively. Revenue from customers located in Japan was $4,243 and $2,249 during the three months ended September 30, 2016 and 2015, respectively, and $11,447 and $6,294 during the nine months ended September 30, 2016 and 2015, respectively. During the three and nine months ended September 30, 2016 and 2015, no other country contributed more than 10% of the Company’s total revenue. As of September 30, 2016 and December 31, 2015, property and equipment at locations outside the U.S. was not material. |
Recently Issued and Adopted Acc
Recently Issued and Adopted Accounting Standards | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Issued and Adopted Accounting Standards | 12. Recently Issued and Adopted Accounting Standards In May 2014, the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board jointly issued Accounting Standards Update (ASU) No. 2014-9, Revenue from Contracts with Customers In August 2014, the FASB issued ASU No. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern In March 2016, the FASB issued ASU No. 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting In February 2016 the FASB issued ASU 2016-02, Leases (Topic 842), Amendments to the FASB Accounting Standards Codification In April 2015, the FASB issued ASU 2015-05, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40), Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement In April 2015, the FASB, issued ASU 2015-03, Interest – Imputation of Interest (Subtopic 835-30), Simplifying the Presentation of Debt Issuance Costs In February 2015, the FASB issued ASU 2015-02, Consolidation (Topic 810), Amendments to the Consolidation Analysis |
Business Description and Basi19
Business Description and Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business Description | 1. Business Description and Basis of Presentation Business Description Brightcove Inc. (the Company) is a leading global provider of cloud services for video which enable its customers to publish and distribute video to Internet-connected devices quickly, easily and in a cost-effective and high-quality manner. The Company is headquartered in Boston, Massachusetts and was incorporated in the state of Delaware on August 24, 2004. At September 30, 2016, the Company had nine wholly-owned subsidiaries: Brightcove UK Ltd, Brightcove Singapore Pte. Ltd., Brightcove Korea, Brightcove Australia Pty Ltd, Brightcove Holdings, Inc., Brightcove Kabushiki Kaisha (Brightcove KK), Zencoder Inc. (Zencoder), Brightcove FZ-LLC, and Cacti Acquisition LLC. On March 10, 2016, the Company purchased an intangible asset for $300 plus a contingent amount of up to an additional $250 to be determined on the 90 th |
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, 2015. 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, 2015 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, 2016 and 2015. 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, 2016, 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, 2015, have not changed. |
Cash and Cash Equivalents (Tabl
Cash and Cash Equivalents (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Cash and Cash Equivalents | Cash and cash equivalents as of September 30, 2016 consist of the following: September 30, 2016 Description Contracted Maturity Amortized Cost Fair Market Value Balance Per Balance Sheet Cash Demand $ 25,584 $ 25,584 $ 25,584 Money market funds Demand 9,608 9,608 9,608 Total cash and cash equivalents $ 35,192 $ 35,192 $ 35,192 Cash and cash equivalents as of December 31, 2015 consist of the following: December 31, 2015 Description Contracted Maturity Amortized Cost Fair Market Value Balance Per Balance Sheet Cash Demand $ 18,057 $ 18,057 $ 18,057 Money market funds Demand 9,580 9,580 9,580 Total cash and cash equivalents $ 27,637 $ 27,637 $ 27,637 |
Net Loss per Share (Tables)
Net Loss per Share (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
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 weighted-average shares outstanding as their effect would have been anti-dilutive (in thousands): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Options outstanding 4,152 4,181 4,419 4,133 Restricted stock units outstanding 1,752 1,094 1,604 982 Warrants 21 28 26 28 |
Fair Value of Financial Instr22
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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, 2016 and December 31, 2015: September 30, 2016 Quoted Prices in Active Markets for Identical Items (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Assets: Money market funds $ 9,608 $ — $ — $ 9,608 Restricted cash — 201 — 201 Total assets $ 9,608 $ 201 $ — $ 9,809 December 31, 2015 Quoted Prices in Active Markets for Identical Items (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Assets: Money market funds $ 9,580 $ — $ — $ 9,580 Restricted cash — 201 — 201 Total assets $ 9,580 $ 201 $ — $ 9,781 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based 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 Nine Months Ended 2016 2015 2016 2015 Expected life in years 6.2 6.3 6.1 6.2 Risk-free interest rate 1.35 % 1.90 % 1.41 % 1.85 % Volatility 45 % 46 % 45 % 47 % Dividend yield — — — — Weighted-average fair value of stock options granted $ 4.98 $ 2.49 $ 4.17 $ 3.25 |
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, 2016 and the stock option activity during the nine months ended September 30, 2016. Number of Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (In Years) Aggregate Intrinsic Value (1) Outstanding at December 31, 2015 4,622,886 $ 6.63 Granted 497,238 9.32 Exercised (797,895 ) 5.50 $ 4,285 Canceled (378,193 ) 8.83 Outstanding at September 30, 2016 3,944,036 $ 6.99 7.05 $ 24,248 Exercisable at September 30, 2016 1,790,873 $ 6.26 5.03 $ 12,464 Vested or expected to vest at September 30, 2016 (2) 3,439,754 $ 6.89 6.78 $ 21,527 (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, 2016 of $13.05 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, 2016 plus the number of unvested options expected to vest as of September 30, 2016 based on the unvested options outstanding at September 30, 2016 adjusted for an estimated forfeiture rate. |
Restricted Stock Units Activity | The following table summarizes the restricted stock unit activity during the nine months ended September 30, 2016: Shares Weighted Average Grant Date Fair Value Unvested by December 31, 2015 1,503,814 $ 6.69 Granted 819,623 11.08 Vested and issued (233,992 ) 5.83 Canceled (194,258 ) 6.79 Unvested by September 30, 2016 1,895,187 $ 7.78 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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 Nine Months Ended 2016 2015 2016 2015 Revenue: North America $ 23,246 $ 22,118 $ 68,913 $ 63,636 Europe 6,412 6,049 18,843 19,235 Japan 4,243 2,249 11,447 6,294 Asia Pacific 4,136 3,035 11,495 9,144 Other 352 386 943 1,261 Total revenue $ 38,389 $ 33,837 $ 111,641 $ 99,570 |
Business Description and Basi25
Business Description and Basis of Presentation - Additional Information (Detail) $ in Thousands | Mar. 10, 2016USD ($) | Sep. 30, 2016USD ($)Subsidiaries |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Number of wholly-owned subsidiaries | Subsidiaries | 9 | |
Purchase of intangible assets | $ 300 | |
Purchase of intangible assets, contingent amount | $ 250 | |
Useful life | 3 years | |
Net carrying value of the intangible asset | $ 244 |
Concentration of Credit Risk -
Concentration of Credit Risk - Additional Information (Detail) - Customer | Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 |
Risks and Uncertainties [Abstract] | |||
Number of customers accounted for more than 10% of total revenue | 0 | 0 | |
Number of customers accounted for more than 10% of net accounts receivable | 0 | 0 |
Cash and Cash Equivalents - Sch
Cash and Cash Equivalents - Schedule of Cash and Cash Equivalents (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Investment Holdings [Line Items] | ||
Amortized Cost | $ 35,192 | $ 27,637 |
Fair Market Value | 35,192 | 27,637 |
Balance Per Balance Sheet | 35,192 | 27,637 |
Cash [Member] | ||
Investment Holdings [Line Items] | ||
Amortized Cost | 25,584 | 18,057 |
Fair Market Value | 25,584 | 18,057 |
Balance Per Balance Sheet | 25,584 | 18,057 |
Money Market Funds [Member] | ||
Investment Holdings [Line Items] | ||
Amortized Cost | 9,608 | 9,580 |
Fair Market Value | 9,608 | 9,580 |
Balance Per Balance Sheet | $ 9,608 | $ 9,580 |
Net Loss per Share - Potentiall
Net Loss per Share - Potentially Dilutive Common Stock Equivalent Shares Excluded from Computation of Weighted-Average Shares Outstanding (Detail) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Options outstanding [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Potentially dilutive common shares excluded from the computation of weighted-average shares outstanding | 4,152 | 4,181 | 4,419 | 4,133 |
RSUs [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Potentially dilutive common shares excluded from the computation of weighted-average shares outstanding | 1,752 | 1,094 | 1,604 | 982 |
Warrants [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Potentially dilutive common shares excluded from the computation of weighted-average shares outstanding | 21 | 28 | 26 | 28 |
Fair Value of Financial Instr29
Fair Value of Financial Instruments - Company's Financial Instruments Carried at Fair Value Using Lowest Level of Input (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | $ 9,608 | $ 9,580 |
Restricted cash | 201 | 201 |
Total assets | 9,809 | 9,781 |
Quoted Prices in Active Markets for Identical Items (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 9,608 | 9,580 |
Total assets | 9,608 | 9,580 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Restricted cash | 201 | 201 |
Total assets | $ 201 | $ 201 |
Stock-based Compensation - Weig
Stock-based Compensation - Weighted Average Assumptions (Detail) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Expected life in years | 6 years 2 months 12 days | 6 years 3 months 18 days | 6 years 1 month 6 days | 6 years 2 months 12 days |
Risk-free interest rate | 1.35% | 1.90% | 1.41% | 1.85% |
Volatility | 45.00% | 46.00% | 45.00% | 47.00% |
Dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Weighted-average fair value of stock options granted | $ 4.98 | $ 2.49 | $ 4.17 | $ 3.25 |
Stock-based Compensation - Addi
Stock-based Compensation - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Unrecognized stock-based compensation expense | $ 13,113 | $ 13,113 | ||
Weighted average period | 2 years 6 months 18 days | |||
Stock based compensation expense | $ 1,681 | $ 1,523 | $ 4,265 | $ 4,312 |
Stock-based Compensation - Summ
Stock-based Compensation - Summary of Stock Option Activity (Detail) - Options outstanding [Member] $ / shares in Units, $ in Thousands | 9 Months Ended |
Sep. 30, 2016USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares, Outstanding at December 31, 2015 | shares | 4,622,886 |
Shares, Granted | shares | 497,238 |
Shares, Exercised | shares | (797,895) |
Shares, Canceled | shares | (378,193) |
Shares, Outstanding at September 30, 2016 | shares | 3,944,036 |
Shares, Exercisable at September 30, 2016 | shares | 1,790,873 |
Shares, Vested or expected to vest at September 30, 2016 | shares | 3,439,754 |
Weighted-Average Exercise Price, Outstanding at December 31, 2015 | $ / shares | $ 6.63 |
Weighted-Average Exercise Price, Granted | $ / shares | 9.32 |
Weighted-Average Exercise Price, Exercised | $ / shares | 5.50 |
Weighted-Average Exercise Price, Canceled | $ / shares | 8.83 |
Weighted-Average Exercise Price, Outstanding at September 30, 2016 | $ / shares | 6.99 |
Weighted-Average Exercise Price, Exercisable at September 30, 2016 | $ / shares | 6.26 |
Weighted-Average Exercise Price, Vested or expected to vest at September 30, 2016 | $ / shares | $ 6.89 |
Weighted-Average Remaining Contractual Term, Outstanding at September 30, 2016 | 7 years 18 days |
Weighted-Average Remaining Contractual Term, Exercisable at September 30, 2016 | 5 years 11 days |
Weighted-Average Remaining Contractual Term, Vested or expected to vest at September 30, 2016 | 6 years 9 months 11 days |
Aggregate Intrinsic Value, Exercised | $ | $ 4,285 |
Aggregate Intrinsic Value, Outstanding at September 30, 2016 | $ | 24,248 |
Aggregate Intrinsic Value, Exercisable at September 30, 2016 | $ | 12,464 |
Aggregate Intrinsic Value,Vested or expected to vest at September 30, 2016 | $ | $ 21,527 |
Stock-based Compensation - Su33
Stock-based Compensation - Summary of Stock Option Activity (Parenthetical) (Detail) | Sep. 30, 2016$ / shares |
Options outstanding [Member] | Stock Compensation Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Aggregate Intrinsic Value, Estimated per share fair value of common stock | $ 13.05 |
Stock-based Compensation - Su34
Stock-based Compensation - Summary of RSU Activity (Detail) - RSUs [Member] | 9 Months Ended |
Sep. 30, 2016$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Unvested Shares, Beginning Balance | shares | 1,503,814 |
Granted | shares | 819,623 |
Vested and issued | shares | (233,992) |
Canceled | shares | (194,258) |
Unvested Shares, Ending Balance | shares | 1,895,187 |
Weighted Average Grant Date Fair Value, Beginning Balance | $ / shares | $ 6.69 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 11.08 |
Weighted Average Grant Date Fair Value, Vested and issued | $ / shares | 5.83 |
Weighted Average Grant Date Fair Value, Canceled | $ / shares | 6.79 |
Weighted Average Grant Date Fair Value, Ending Balance | $ / shares | $ 7.78 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense | $ 61 | $ 123 | $ 202 | $ 255 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) | 1 Months Ended | 9 Months Ended | |
Feb. 29, 2016 | Sep. 30, 2016 | Sep. 30, 2015 | |
Debt Instrument [Line Items] | |||
Debt instrument term | If the outstanding principal during any month is at least $15.0 million, the Company must also maintain a minimum net income threshold based on non-GAAP operating measures. | ||
Debt amount outstanding | $ 0 | ||
Repayment of equipment financing | 196,000 | $ 576,000 | |
December Equipment Financing Agreement [Member] | |||
Debt Instrument [Line Items] | |||
Debt amount outstanding | $ 408,000 | ||
Debt issuance date | Dec. 31, 2015 | ||
Computer equipment and support purchased | $ 604,000 | ||
Repayment of equipment financing | $ 604,000 | ||
Repayment period of obligation under the agreement | 2 years | ||
Secured Line of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Line of credit, agreement start date | Nov. 19, 2015 | ||
Line of credit maximum borrowing capacity | $ 20,000,000 | ||
Percentage points added to prime rate or LIBOR | 2.50% | ||
Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Minimum outstanding principal threshold limit | $ 15,000,000 |
Segment Information - Total Rev
Segment Information - Total Revenue from Unaffiliated Customers by Geographic Area, Based on Location of Customer (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | $ 38,389 | $ 33,837 | $ 111,641 | $ 99,570 |
North America [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 23,246 | 22,118 | 68,913 | 63,636 |
Europe [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 6,412 | 6,049 | 18,843 | 19,235 |
Japan [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 4,243 | 2,249 | 11,447 | 6,294 |
Asia Pacific [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 4,136 | 3,035 | 11,495 | 9,144 |
Other [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | $ 352 | $ 386 | $ 943 | $ 1,261 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues from customers | $ 38,389 | $ 33,837 | $ 111,641 | $ 99,570 |
Revenue percentage from other 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 | $ 21,793 | $ 20,652 | $ 64,615 | $ 59,403 |
Japan [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues from customers | $ 4,243 | $ 2,249 | $ 11,447 | $ 6,294 |