Brightcove (BCOV) 10-Q 26 Oct 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Oct. 23, 2017
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2017
Document Fiscal Year Focus	2,017
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		34,632,678

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 22,056	$ 36,813
Accounts receivable, net of allowance of $134 and $154 at September 30, 2017 and December 31, 2016, respectively	26,296	21,575
Prepaid expenses	4,174	3,729
Other current assets	2,938	2,168
Total current assets	55,464	64,285
Property and equipment, net	9,005	9,264
Intangible assets, net	8,910	10,970
Goodwill	50,776	50,776
Deferred tax asset	123	121
Other assets	931	1,008
Total assets	125,209	136,424
Current liabilities:
Accounts payable	6,635	5,327
Accrued expenses	13,319	15,705
Capital lease liability	334	489
Equipment financing	104	307
Deferred revenue	37,376	34,665
Total current liabilities	57,768	56,493
Deferred revenue, net of current portion	166	91
Other liabilities	1,253	1,644
Total liabilities	59,187	58,228
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; 34,757,289 and 34,143,148 shares issued at September 30, 2017 and December 31, 2016, respectively	35	34
Additional paid-in capital	236,628	230,788
Treasury stock, at cost; 135,000 shares	(871)	(871)
Accumulated other comprehensive loss	(843)	(1,172)
Accumulated deficit	(168,927)	(150,583)
Total stockholders' equity	66,022	78,196
Total liabilities and stockholders' equity	$ 125,209	$ 136,424

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Allowance for accounts receivable	$ 134	$ 154
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	34,757,289	34,143,148
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, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Revenue:
Subscription and support revenue	$ 36,496	$ 36,203	$ 106,266	$ 105,936
Professional services and other revenue	2,991	2,186	9,546	5,705
Total revenue	39,487	38,389	115,812	111,641
Cost of revenue:
Cost of subscription and support revenue	12,924	11,691	38,180	35,041
Cost of professional services and other revenue	3,580	2,086	10,120	5,453
Total cost of revenue	16,504	13,777	48,300	40,494
Gross profit	22,983	24,612	67,512	71,147
Operating expenses:
Research and development	7,820	7,704	24,293	22,385
Sales and marketing	14,551	13,334	44,356	39,845
General and administrative	5,961	5,126	17,228	14,190
Merger-related				21
Total operating expenses	28,332	26,164	85,877	76,441
Loss from operations	(5,349)	(1,552)	(18,365)	(5,294)
Other income (expense), net	71	(5)	523	(127)
Loss before income taxes	(5,278)	(1,557)	(17,842)	(5,421)
Provision for income taxes	118	61	305	202
Net loss	$ (5,396)	$ (1,618)	$ (18,147)	$ (5,623)
Net loss per share - basic and diluted	$ (0.16)	$ (0.05)	$ (0.53)	$ (0.17)
Weighted-average number of common shares used in computing net loss per share	34,500,868	33,345,161	34,269,639	32,956,186
Cost of Subscription and Support Revenue [Member]
Stock-based compensation included in above line items:
Stock-based compensation	$ 117	$ 94	$ 308	$ 204
Amortization of acquired intangible assets included in above line items:
Amortization of acquired intangible assets	508	507	1,523	1,523
Cost of Professional Services and Other Revenue [Member]
Stock-based compensation included in above line items:
Stock-based compensation	70	69	189	158
Research and Development [Member]
Stock-based compensation included in above line items:
Stock-based compensation	384	372	1,132	942
Amortization of acquired intangible assets included in above line items:
Amortization of acquired intangible assets		32	11	95
Sales and Marketing [Member]
Stock-based compensation included in above line items:
Stock-based compensation	690	651	1,953	1,630
Amortization of acquired intangible assets included in above line items:
Amortization of acquired intangible assets	166	245	525	715
General and Administrative [Member]
Stock-based compensation included in above line items:
Stock-based compensation	$ 557	$ 495	$ 1,712	$ 1,331

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Statement of Comprehensive Income [Abstract]
Net loss	$ (5,396)	$ (1,618)	$ (18,147)	$ (5,623)
Other comprehensive income:
Foreign currency translation adjustments	72	(13)	329	(244)
Comprehensive loss	$ (5,324)	$ (1,631)	$ (17,818)	$ (5,867)

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Operating activities
Net loss	$ (18,147)	$ (5,623)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation and amortization	5,607	5,901
Stock-based compensation	5,294	4,265
Provision for reserves on accounts receivable	152	233
Changes in assets and liabilities:
Accounts receivable	(4,816)	(1,441)
Prepaid expenses and other current assets	(1,660)	(1,720)
Other assets	94	(200)
Accounts payable	2,021	(17)
Accrued expenses	(2,874)	1,953
Deferred revenue	2,677	4,278
Net cash (used in) provided by operating activities	(11,652)	7,629
Investing activities
Cash paid for purchase of intangible asset		(300)
Purchases of property and equipment, net of returns	(990)	(1,194)
Capitalized internal-use software costs	(2,091)	(2,940)
Net cash used in investing activities	(3,081)	(4,434)
Financing activities
Proceeds from exercise of stock options	379	4,392
Payments of withholding tax on RSU vesting	(175)	(216)
Proceeds from equipment financing		604
Payments on equipment financing	(229)	(196)
Payments under capital lease obligation	(383)	(682)
Net cash (used in) provided by financing activities	(408)	3,902
Effect of exchange rate changes on cash and cash equivalents	384	458
Net (decrease) increase in cash and cash equivalents	(14,757)	7,555
Cash and cash equivalents at beginning of period	36,813	27,637
Cash and cash equivalents at end of period	$ 22,056	$ 35,192

Business Description and Basis

Business Description and Basis of Presentation	9 Months Ended
	Sep. 30, 2017
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, 2017, the Company had nine wholly-owned subsidiaries: Brightcove UK Ltd, Brightcove Singapore Pte. Ltd., Brightcove Korea, Brightcove Australia Pty Ltd, Brightcove Holdings, Inc., Brightcove Kabushiki Kaisha (Brightcove KK), Zencoder Inc. (Zencoder), Brightcove FZ-LLC, and Cacti Acquisition LLC. Basis of Presentation The accompanying interim condensed consolidated financial statements are unaudited. These condensed consolidated financial statements and notes should be read in conjunction with the audited consolidated financial statements and related notes, together with Management’s Discussion and Analysis of Financial Condition and Results of Operations, contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016. 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, 2016 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, 2017 and 2016. 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, 2017, 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, 2016, have not changed, except for the adoption of Accounting Standards Update (ASU) No. 2016-09, Compensation – Stock Compensation

Concentration of Credit Risk

Concentration of Credit Risk	9 Months Ended
	Sep. 30, 2017
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, 2017 and December 31, 2016, no individual customer accounted for 10% or more of net accounts receivable. For the three and nine months ended September 30, 2017 and 2016, no individual customer accounted for 10% or more of total revenue.

Concentration of Other Risks

Concentration of Other Risks	9 Months Ended
	Sep. 30, 2017
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, 2017
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 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, 2017 consist of the following: September 30, 2017 Description Contracted Amortized Fair Market Balance Per Cash Demand $ 13,916 $ 13,916 $ 13,916 Money market funds Demand 8,140 8,140 8,140 Total cash and cash equivalents $ 22,056 $ 22,056 $ 22,056 Cash and cash equivalents as of December 31, 2016 consist of the following: December 31, 2016 Description Contracted Amortized Fair Market Balance Per Cash Demand $ 23,942 $ 23,942 $ 23,942 Money market funds Demand 12,871 12,871 12,871 Total cash and cash equivalents $ 36,813 $ 36,813 $ 36,813

Net Loss per Share

Net Loss per Share	9 Months Ended
	Sep. 30, 2017
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 2017 2016 2017 2016 Options outstanding 4,106 4,152 4,134 4,419 Restricted stock units outstanding 2,111 1,752 1,945 1,604 Warrants — 21 — 26

Fair Value of Financial Instrum

Fair Value of Financial Instruments	9 Months Ended
	Sep. 30, 2017
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, 2017 and December 31, 2016: September 30, 2017 Quoted Prices in Significant Other Significant Total Assets: Money market funds $ 8,140 $ — $ — $ 8,140 Total assets $ 8,140 $ — $ — $ 8,140 December 31, 2016 Quoted Prices in Significant Other Significant Total Assets: Money market funds $ 12,871 $ — $ — $ 12,871 Total assets $ 12,871 $ — $ — $ 12,871

Stock-based Compensation

Stock-based Compensation	9 Months Ended
	Sep. 30, 2017
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 2017 2016 2017 2016 Expected life in years 6.2 6.2 6.1 6.1 Risk-free interest rate 2.11 % 1.35 % 2.08 % 1.41 % Volatility 42 % 45 % 42 % 45 % Dividend yield — — — — Weighted-average fair value of stock options granted $ 3.03 $ 4.98 $ 3.07 $ 4.17 The Company recorded stock-based compensation expense of $1,818 and $1,681 for the three months ended September 30, 2017 and 2016, respectively, and $5,294 and $4,265 for the nine months ended September 30, 2017 and 2016, respectively. In July 2017, the Company entered into a separation agreement with its former Chief Executive Officer (“CEO”), which accelerated the vesting schedule of certain existing stock-based awards held by the CEO. The incremental stock-based compensation expense as a result of the modification of these stock-based awards was $186 for the three months ended September 30, 2017. Further, the vesting schedule of certain other stock-based awards held by the CEO accelerates upon a change in control of the Company on or prior to December 31, 2017, which would result in an additional $220 of stock-based compensation expense upon such change in control. As of September 30, 2017, there was $20,389 of unrecognized stock-based compensation expense related to stock-based awards that is expected to be recognized over a weighted-average period of 2.26 years. On January 1, 2017, the Company adopted ASU No. 2016-09. 2016-09 paid-in-capital The following is a summary of the status of the Company’s stock options as of September 30, 2017 and the stock option activity during the nine months ended September 30, 2017. Number of Weighted-Average Weighted- Aggregate Outstanding at December 31, 2016 4,150,584 $ 7.17 Granted 472,727 7.00 Exercised (198,555 ) 1.91 $ 1,159 Canceled (270,498 ) 8.42 Outstanding at September 30, 2017 4,154,258 $ 7.32 6.48 $ 4,182 Exercisable at September 30, 2017 2,275,052 $ 7.22 4.93 $ 3,212 (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, 2017 of $7.20 per share, or the date of exercise, as appropriate, and the exercise price of the underlying options. The following table summarizes the restricted stock unit activity during the nine months ended September 30, 2017: Shares Weighted Unvested by December 31, 2016 1,902,577 $ 7.84 Granted 1,154,473 6.91 Vested and issued (415,586 ) 7.64 Canceled (229,030 ) 8.02 Unvested by September 30, 2017 2,412,434 $ 7.40

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2017
Income Tax Disclosure [Abstract]
Income Taxes	8. Income Taxes For the three months ended September 30, 2017 and 2016, the Company recorded income tax expense of $118 and $61, respectively. For the nine months ended September 30, 2017 and 2016, the Company recorded income tax expense of $305 and $202, 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, 2017
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 May 22, 2017, a lawsuit was filed against Brightcove and two individuals by Ooyala, Inc. (“Ooyala”) and Ooyala Mexico S. de R.L. de C.V. (“Ooyala Mexico”). The lawsuit, which was filed in the United States District Court for the District of Massachusetts, concerns allegations that the two individuals, who are former employees of Ooyala Mexico, misappropriated customer information and other trade secrets and used that information in working for Brightcove. The complaint was amended on June 1, 2017 to remove claims against the two former employees of Ooyala Mexico. The remaining claims against Brightcove are for violation of the Defend Trade Secrets Act of 2016 (18 U.S.C. §1836), violation of the Massachusetts trade secret statute (M.G.L. c. 93, §42), violation of Massachusetts Chapter 93A (M.G.L. c. 93A, §11), and tortious interference with advantageous business relationships. Ooyala and Ooyala Mexico also filed a motion for preliminary injunction (amended at the same time the complaint was amended), seeking to enjoin Brightcove from using any of the allegedly misappropriated information or communicating with customers whose information was allegedly taken, and seeking the return of any information that was taken. On June 16, 2017, Brightcove filed an opposition to the motion for preliminary injunction, and also moved to dismiss the lawsuit. Brightcove’s motion to dismiss was denied on September 6, 2017. The court has not ruled on Ooyala’s motion for preliminary injunction. On October 18, 2017, the court granted the parties’ motion to stay the litigation, and the litigation is currently stayed. The Company cannot yet determine whether it is probable that a loss will be incurred in connection with this complaint, nor can the Company reasonably estimate the potential loss, if any. Guarantees and Indemnification Obligations The Company typically enters into indemnification agreements in the ordinary course of business. Pursuant to these agreements, the Company indemnifies and agrees to reimburse the indemnified party for losses and costs incurred by the indemnified party, generally the Company’s customers, in connection with patent, copyright, trade secret, or other intellectual property or personal right infringement claim by third parties with respect to the Company’s technology. The term of these indemnification agreements is generally perpetual after execution of the agreement. Based on when customers first subscribe for the Company’s service, the maximum potential amount of future payments the Company could be required to make under certain of these indemnification agreements is unlimited, however, more recently the Company has typically limited the maximum potential value of such potential future payments in relation to the value of the contract. Based on historical experience and information known as of September 30, 2017, 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, 2017
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 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 $104 as of September 30, 2017.

Segment Information

Segment Information	9 Months Ended
	Sep. 30, 2017
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 2017 2016 2017 2016 Revenue: North America $ 22,726 $ 23,246 $ 68,205 $ 68,913 Europe 6,097 6,412 18,177 18,843 Japan 4,129 4,243 12,416 11,447 Asia Pacific 6,363 4,136 16,490 11,495 Other 172 352 524 943 Total revenue $ 39,487 $ 38,389 $ 115,812 $ 111,641 North America is comprised of revenue from the United States, Canada and Mexico. Revenue from customers located in the United States was $21,131 and $21,793 during the three months ended September 30, 2017 and 2016, respectively, and $63,744 and $64,615 during the nine months ended September 30, 2017 and 2016, respectively. Other than the United States and Japan, no other country contributed more than 10% of the Company’s total revenue during the three and nine months ended September 30, 2017 and 2016. As of September 30, 2017 and December 31, 2016, 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, 2017
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) issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) 2014-09”), Revenue from Contracts with Customers , 2014-09 2014-09 catch-up In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of Effective Date 2014-09 2014-09 2014-09 The Company intends to adopt ASU 2014-09 In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), Amendments to the FASB Accounting Standards Codification 2016-02 2016-02, right-of-use 2016-02 2016-02 2016-02 In June 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments 2016-15 2016-15 In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash 2016-18 2016-18 2016-18

Business Description and Basi19

Business Description and Basis of Presentation (Policies)	9 Months Ended
	Sep. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Business Description	Business Description Brightcove Inc. (the Company) is a leading global provider of cloud services for video which enable its customers to publish and distribute video to Internet-connected devices quickly, easily and in a cost-effective and high-quality manner. The Company is headquartered in Boston, Massachusetts and was incorporated in the state of Delaware on August 24, 2004. At September 30, 2017, the Company had nine wholly-owned subsidiaries: Brightcove UK Ltd, Brightcove Singapore Pte. Ltd., Brightcove Korea, Brightcove Australia Pty Ltd, Brightcove Holdings, Inc., Brightcove Kabushiki Kaisha (Brightcove KK), Zencoder Inc. (Zencoder), Brightcove FZ-LLC, and Cacti Acquisition LLC.
Basis of Presentation	Basis of Presentation The accompanying interim condensed consolidated financial statements are unaudited. These condensed consolidated financial statements and notes should be read in conjunction with the audited consolidated financial statements and related notes, together with Management’s Discussion and Analysis of Financial Condition and Results of Operations, contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016. 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, 2016 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, 2017 and 2016. 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, 2017, 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, 2016, have not changed, except for the adoption of Accounting Standards Update (ASU) No. 2016-09, Compensation – Stock Compensation
Recently Issued and Adopted Accounting Standards	In May 2014, the Financial Accounting Standards Board (FASB) issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) 2014-09”), Revenue from Contracts with Customers , 2014-09 2014-09 catch-up In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of Effective Date 2014-09 2014-09 2014-09 The Company intends to adopt ASU 2014-09 In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), Amendments to the FASB Accounting Standards Codification 2016-02 2016-02, right-of-use 2016-02 2016-02 2016-02 In June 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments 2016-15 2016-15 In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash 2016-18 2016-18 2016-18

Cash and Cash Equivalents (Tabl

Cash and Cash Equivalents (Tables)	9 Months Ended
	Sep. 30, 2017
Cash and Cash Equivalents [Abstract]
Schedule of Cash and Cash Equivalents	Cash and cash equivalents as of September 30, 2017 consist of the following: September 30, 2017 Description Contracted Amortized Fair Market Balance Per Cash Demand $ 13,916 $ 13,916 $ 13,916 Money market funds Demand 8,140 8,140 8,140 Total cash and cash equivalents $ 22,056 $ 22,056 $ 22,056 Cash and cash equivalents as of December 31, 2016 consist of the following: December 31, 2016 Description Contracted Amortized Fair Market Balance Per Cash Demand $ 23,942 $ 23,942 $ 23,942 Money market funds Demand 12,871 12,871 12,871 Total cash and cash equivalents $ 36,813 $ 36,813 $ 36,813

Net Loss per Share (Tables)

Net Loss per Share (Tables)	9 Months Ended
	Sep. 30, 2017
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 2017 2016 2017 2016 Options outstanding 4,106 4,152 4,134 4,419 Restricted stock units outstanding 2,111 1,752 1,945 1,604 Warrants — 21 — 26

Fair Value of Financial Instr22

Fair Value of Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2017
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, 2017 and December 31, 2016: September 30, 2017 Quoted Prices in Significant Other Significant Total Assets: Money market funds $ 8,140 $ — $ — $ 8,140 Total assets $ 8,140 $ — $ — $ 8,140 December 31, 2016 Quoted Prices in Significant Other Significant Total Assets: Money market funds $ 12,871 $ — $ — $ 12,871 Total assets $ 12,871 $ — $ — $ 12,871

Stock-based Compensation (Table

Stock-based Compensation (Tables)	9 Months Ended
	Sep. 30, 2017
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 2017 2016 2017 2016 Expected life in years 6.2 6.2 6.1 6.1 Risk-free interest rate 2.11 % 1.35 % 2.08 % 1.41 % Volatility 42 % 45 % 42 % 45 % Dividend yield — — — — Weighted-average fair value of stock options granted $ 3.03 $ 4.98 $ 3.07 $ 4.17
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, 2017 and the stock option activity during the nine months ended September 30, 2017. Number of Weighted-Average Weighted- Aggregate Outstanding at December 31, 2016 4,150,584 $ 7.17 Granted 472,727 7.00 Exercised (198,555 ) 1.91 $ 1,159 Canceled (270,498 ) 8.42 Outstanding at September 30, 2017 4,154,258 $ 7.32 6.48 $ 4,182 Exercisable at September 30, 2017 2,275,052 $ 7.22 4.93 $ 3,212 (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, 2017 of $7.20 per share, or the date of exercise, as appropriate, and the exercise price of the underlying options.
Restricted Stock Units Activity	The following table summarizes the restricted stock unit activity during the nine months ended September 30, 2017: Shares Weighted Unvested by December 31, 2016 1,902,577 $ 7.84 Granted 1,154,473 6.91 Vested and issued (415,586 ) 7.64 Canceled (229,030 ) 8.02 Unvested by September 30, 2017 2,412,434 $ 7.40

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	Sep. 30, 2017
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 2017 2016 2017 2016 Revenue: North America $ 22,726 $ 23,246 $ 68,205 $ 68,913 Europe 6,097 6,412 18,177 18,843 Japan 4,129 4,243 12,416 11,447 Asia Pacific 6,363 4,136 16,490 11,495 Other 172 352 524 943 Total revenue $ 39,487 $ 38,389 $ 115,812 $ 111,641

Business Description and Basi25

Business Description and Basis of Presentation - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2017Subsidiaries
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of wholly-owned subsidiaries	9

Concentration of Credit Risk -

Concentration of Credit Risk - Additional Information (Detail) - Customer	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Risks and Uncertainties [Abstract]
Number of customers accounted for more than 10% of net accounts receivable	0		0		0
Number of customers accounted for more than 10% of total revenue	0	0	0	0
Threshold percentage of total revenues required for major customer classification	10.00%	10.00%	10.00%	10.00%

Cash and Cash Equivalents - Add

Cash and Cash Equivalents - Additional Information (Detail) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Cash and Cash Equivalents [Abstract]
Short-term investments	$ 0	$ 0
Long-term investments	$ 0	$ 0

Cash and Cash Equivalents - Sch

Cash and Cash Equivalents - Schedule of Cash and Cash Equivalents (Detail) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Investment Holdings [Line Items]
Amortized Cost	$ 22,056	$ 36,813
Fair Market Value	22,056	36,813
Balance Per Balance Sheet	22,056	36,813
Cash [Member]
Investment Holdings [Line Items]
Amortized Cost	13,916	23,942
Fair Market Value	13,916	23,942
Balance Per Balance Sheet	13,916	23,942
Money Market Funds [Member]
Investment Holdings [Line Items]
Amortized Cost	8,140	12,871
Fair Market Value	8,140	12,871
Balance Per Balance Sheet	$ 8,140	$ 12,871

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, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
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	4,106	4,152	4,134	4,419
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	2,111	1,752	1,945	1,604
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		26

Fair Value of Financial Instr30

Fair Value of Financial Instruments - Company's Financial Instruments Carried at Fair Value Using Lowest Level of Input (Detail) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds	$ 8,140	$ 12,871
Total assets	8,140	12,871
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	8,140	12,871
Total assets	$ 8,140	$ 12,871

Stock-based Compensation - Weig

Stock-based Compensation - Weighted Average Assumptions (Detail) - Stock Compensation Plan [Member] - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected life in years	6 years 2 months 12 days	6 years 2 months 12 days	6 years 1 month 6 days	6 years 1 month 6 days
Risk-free interest rate	2.11%	1.35%	2.08%	1.41%
Volatility	42.00%	45.00%	42.00%	45.00%
Dividend yield	0.00%	0.00%	0.00%	0.00%
Weighted-average fair value of stock options granted	$ 3.03	$ 4.98	$ 3.07	$ 4.17

Stock-based Compensation - Addi

Stock-based Compensation - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Mar. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation expense	$ 1,818	$ 1,681	$ 5,294	$ 4,265
Incremental stock-based compensation expense arising from the modification	186
Unrecognized stock-based compensation expense	$ 20,389		$ 20,389
Weighted average period			2 years 3 months 4 days
Other Stock Based Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Incremental stock-based compensation expense arising from the modification			$ 220
ASU 2016-09 [Member] | Accumulated Deficit [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Cumulative effect of change due to new accounting pronouncement					$ 197
ASU 2016-09 [Member] | Additional Paid-in Capital [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Cumulative effect of change due to new accounting pronouncement					$ 197

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, 2017USD ($)$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares, Outstanding at December 31, 2016 | shares	4,150,584
Shares, Granted | shares	472,727
Shares, Exercised | shares	(198,555)
Shares, Canceled | shares	(270,498)
Shares, Outstanding at September 30, 2017 | shares	4,154,258
Shares, Exercisable at September 30, 2017 | shares	2,275,052
Weighted-Average Exercise Price,Outstanding at December 31, 2016 | $ / shares	$ 7.17
Weighted-Average Exercise Price, Granted | $ / shares	7
Weighted-Average Exercise Price, Exercised | $ / shares	1.91
Weighted-Average Exercise Price, Canceled | $ / shares	8.42
Weighted-Average Exercise Price,Outstanding at September 30, 2017 | $ / shares	7.32
Weighted-Average Exercise Price,Exercisable at September 30, 2017 | $ / shares	$ 7.22
Weighted-Average Remaining Contractual Term, Outstanding at September 30, 2017	6 years 5 months 23 days
Weighted-Average Remaining Contractual Term, Exercisable at September 30, 2017	4 years 11 months 4 days
Aggregate Intrinsic Value, Exercised | $	$ 1,159
Aggregate Intrinsic Value, Outstanding at September 30, 2017 | $	4,182
Aggregate Intrinsic Value, Exercisable at September 30, 2017 | $	$ 3,212

Stock-based Compensation - Su34

Stock-based Compensation - Summary of Stock Option Activity (Parenthetical) (Detail)	Sep. 30, 2017$ / shares
Options Outstanding [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate Intrinsic Value, Estimated per share fair value of common stock	$ 7.20

Stock-based Compensation - Rest

Stock-based Compensation - Restricted Stock Units Activity (Detail) - RSUs [Member]	9 Months Ended
	Sep. 30, 2017$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]
Unvested Shares, Beginning Balance | shares	1,902,577
Granted | shares	1,154,473
Vested and issued | shares	(415,586)
Canceled | shares	(229,030)
Unvested Shares, Ending Balance | shares	2,412,434
Weighted Average Grant Date Fair Value, Beginning Balance | $ / shares	$ 7.84
Weighted Average Grant Date Fair Value, Granted | $ / shares	6.91
Weighted Average Grant Date Fair Value, Vested and issued | $ / shares	7.64
Weighted Average Grant Date Fair Value, Canceled | $ / shares	8.02
Weighted Average Grant Date Fair Value, Ending Balance | $ / shares	$ 7.40

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Income Taxes [Line Items]
Income tax expense	$ 118,000	$ 61,000	$ 305,000	$ 202,000
Japan [Member]
Income Taxes [Line Items]
Valuation allowance	$ 0		$ 0		$ 0

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail)	Sep. 30, 2017USD ($)
Commitments and Contingencies Disclosure [Abstract]
Cost for Guarantees and indemnities	$ 0

Debt - Additional Information (

Debt - Additional Information (Detail) - USD ($)	1 Months Ended	9 Months Ended
	Feb. 29, 2016	Sep. 30, 2017	Sep. 30, 2016
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		229,000	$ 196,000
December Equipment Financing Agreement [Member]
Debt Instrument [Line Items]
Debt amount outstanding		$ 104,000
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, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	$ 39,487	$ 38,389	$ 115,812	$ 111,641
North America [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	22,726	23,246	68,205	68,913
Europe [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	6,097	6,412	18,177	18,843
Japan [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	4,129	4,243	12,416	11,447
Asia Pacific [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	6,363	4,136	16,490	11,495
Other [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues	$ 172	$ 352	$ 524	$ 943

Segment Information - Additiona

Segment Information - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues from customers	$ 39,487	$ 38,389	$ 115,812	$ 111,641
Revenue percentage from other countries other than united States and Japan 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	$ 21,131	$ 21,793	$ 63,744	$ 64,615