BCOV - Earnings call transcript Q3 2017

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Operator

Greetings, and welcome to Brightcove Third Quarter 2017 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] I would now like to turn the conference over to your host, Brian Denyeau.

Brian Denyeau

Good afternoon, and welcome to Brightcove’s third quarter 2017 earnings call. the close in today. discussing issued press be market after we’ll results our announced release Today, Brightcove’s With Feinberg, Executive Rhodes, Brightcove’s on Acting Financial me the Chief Officer; call and are Andrew Chief Officer. Kevin

may Harbor financial expected will XXXX, and our and go-to-market position, positive XXXX, we expand flow, of including full-year ability position Act fiscal to made our to cash related business upsell leadership and the on our call, the and our and guidance Private to fourth be and XXXX maintain profitability the customers Securities our quarter ability make our ability forward-looking Safe During acquire considered to of free existing execute our for new of strategy, to the growth statements statements to our customers. concerning that provisions pursuant Reform are Litigation

be be as views statements reflected from uncertainties such upcoming These statements to any materially with could only views variety or a Forward-looking cause and indications we of our risks that of differ anticipate, statements of as representing similar identified often subject future expectations. to should not of These actual are expectations. expect, date. our we may words today results subsequent as reflect upon and as

versus as closed found which financial reconciliation after non-GAAP other For today’s recently press during available XX-Q most will Also, filed to our we and discussion www.brightcove.com. by website schedule refer a non-GAAP measures. Report most on on today, of certain market could other contained in currently is material Form today. recent at issued course our There our including be of a release results in can our our Annual our and call, filed important the affect to XX-K that factors updated showing GAAP refer risks SEC actual Quarterly on those results, filings, please Report

our well and details XXXX then financial XXXX. me guidance the with our as provide quarter our Andy fourth of update Andy. quarter let of With summary as well for as opportunity, turn that, In an to third a finish call today’s review results for results, the full-year Kevin and additional over call, our agenda on will will regarding market as terms operations. the

Andrew Feinberg

Brian. of us Thanks, to and thanks for all joining Welcome, today. you

to of get I’m Let’s on quarter right million, and million the financial the quarter range. we $XX.X of strong $X quarter to third in our third it. have guidance on excited made which progress report We was the high-end our achieved revenue above results. third

as pricing of improvement of retention guidance gross which We structure. favorable million subscription discussed rate sequential positive positive our company customers. execution, reflects our growth with well $XXX,XXX commitment the EBITDA our call. the a We mid margin, which point to rate investments and is and track We to basis achieved of growth. our bookings I initiatives as media demonstrates strong some achieve negative delivered a on remain our disciplined our adjusted cost end full-year our to our terms of beat to Our $X in and range high-teens being target of as by demonstrates XXX that early of on having earnings the packaging impact a XX%, cost of sales new last the impacts

American with this and highlighted of broadcaster Dynamic live video Business Sony Kay last core OTT major signed made areas in Premier and many of in Pictures publisher of internal us Young Reporter; the global Cosmetics; enabled TV; Cards; others. including Billboard Global Hollywood deals GameStop; we Delivering Hollywood, the Edmunds.com; world, value League BBC across streaming, Football; among in Worldwide; Channel; continuing to seven-figure have Lionsgate; another brands Airlines; significant UK platform, our and Express Squibb; As sign quarter know, winning early success our in Global, Hallmark areas Mary fourth such Prometheus you these enhancements engagements, to technology Delivery the significant as: the Reelz NetApp; McClatchy; significant Travel; Networks we communications. quarter Also, India; we Bristol-Myers American quarter. those

Finally, experienced in at that usage our a last happy to discussed investments intended. and operating Japanese large call, levels, we as high made reliably order OTT is to in we concurrent service report resolve I’m the the issues even by provider. very

validation you levels. commitment This that invest Our our our investment it now customer relationship I’m is its returned technology this pleased customer relationship with strong to has tell the our exciting Delivery with and broadcaster Dynamic of is normalized to reflects in more an to and success. continues Brightcove.

be things, following company’s objectives. the without undertaking and we’ve made that this report the the operations. those our to to that I’m we Last area efforts to provide additional efficiency details impairing I progress quarter. our with our particular, quarter, to pleased told hit our would order couple area. review go-to-market the the in have in I’m we third operational a we I results, thorough would to addition ability improve in efficiency of to increase In a of favorable company’s some execution performed like productivity pleased initiatives and quarter. you also to good our Among analyses. during minutes the take long-term key this other progress during of made In on growth

made down Through we the across and pipeline, First, the changes areas metrics we and performance where throughout individual level some we team understand process, productivity we businesses. improve to personnel reviewed in ROI our identified to can regions this and already. rep sales have organization our

I’ve process adding impressed sales of we’ve been new in the caliber applicants and are attracted. to members teams, of with our We the

have of costs also been evaluating different teams focused the – process, benefits sales evaluate looking we Second, we organized as with have and this how global we part and at our structural review associated and are are approaches.

go-to-market we believe currently will we next streamlined a And into these year incorporating underway. and planning learnings which budget are process, with We our XXXX enter approach. effective is more

review critical our return deploy undertaken thorough marketing most delivering. marketing also and have for which dollars a investment. which to are to we investments It not the effective that maximum yield of are channels our we Third, understand is

Our and sales are top in brand, solutions, greatest of to the the number their organization. our particular, driving of awareness benefits, increasing leads priorities high-quality our

positioned are to We stake continued of which and a employees better the we a on committed bottom process in investment have from efforts to than make culture in and managing These are a are is expenses. line company’s these improved now we in seen discipline I approaches all ours. expenses. building coming response operations greater to Improving the the team. in ever improvement instituted the ongoing company operational will commonsense across focus choices. also of managing continue have paying level our a will off quarters. to the pleased and Fourth, our our an with expect and I’m instilling I see be have

One the new excited about a mentioned products. things incredible of seeing I that few for ago the of I’m signed a reception strong the just our most market minute customers is during QX. we we are that

platform. next-generation we Dynamic delivery side, Delivery, are our media product the strong reception seeing for On

efficient deals increase achieve and that Delivery As storage we It solution described, cases also Dynamic customers savings. is many bandwidth and their is reach have to will media more for enabling and significant elegant a a delivery, in to previously device platform already winning our moving customers announced architecture was quarters. more several innovate new this seven-figure in to key This We’ve migrate large platform. numerous eager us new forward. we’ve the media quickly to seen of allow prior also to

Delivery we the will by Delivery, of and transitioned of XXXX. installed base our already be base about XX% majority Dynamic the to have We to customer of Dynamic our over transitioning end

We number are customers streaming high-profile success new seeing with using service our of for also it Brightcove events. high-volume, exciting with live the

past to Floyd livestream with fight. Foxtel an partnered As August, the Mayweather-Conor this Brightcove McGregor example,

also beta. significantly us technology, is are Context video interest on to our XX%, in to optimize We efficient size enabling XX% delivery based of patent-pending rates more enables Aware content great for file Context specific compression making thereby in Aware seeing to up currently analysis, which reduction customers. Encoding Encoding

communications market enterprise also are interest use the segment. We base the great within cases for across and customer internal our receiving

For internal communications a Brightcove by employee deepen which businesses of share purchased people Enterprise across and our the improve and new millions initiative, MailChimp, video-centric productivity, designed to example, for engagement and Video its more marketing world, chose information MailChimp employee is effectively. secure training used around Suite. platform

excited XXXX, look the in of I’m us. ahead about to I opportunity As front

have customer mission-critical world-class base, turning solve Brightcove complex their We most help to a which to the some is businesses. facing issues increasingly and of

increasingly that opportunity We growing are nontraditional content to and multibillion-dollar is market devices. online video mobile moves a as targeting

the to across We be of platforms. solution are these all of uniquely choice poised

in improve. and pleased QX; execute consistent not it As exciting mean much again with unless we have we what continue this achieved a it to is, to we at have does I’m and level. high do opportunity now continue to as

ahead, we EBITDA product progress profitability and In and confident XXXX. a good with and shareholders fourth the EBITDA Brightcove delivering adjusted do will of that made in portfolio. flow will of adjusted that demand third to cash high for the quarter the on great results our and achieving team, strong I’m and the customers positive and level quarter goal Looking we free summary, of a delivered full-year compelling execution expect strong with so, return we

me order Kevin? our opportunity. and go-to-market success we Our market that numbers. the maximize to the call turn focus our let through continue With improve innovation, the to is on of ensuring over walk customers and our Kevin in to that, continued refine efforts to you

Kevin Rhodes

guidance everyone. high-end discussing in our quarter I’ll the finish million the our quarter fourth results, and for range. Total and million, above you, and was with XXXX. $XX.X begin revenue I’ll afternoon, good full-year guidance our updated outlook Thank $X then by quarter Andy, of third third

as revenue Our in which higher $XX.X the well million, services quarter. Breaking revenue in up the professional subscription in across revenue million continue services year-ago expected outperformance quarter as year-ago million was period. deliver further, services to overages, the the as was $XX.X OTT globe. driven down large-scale than to Professional was $X.X compared million $X was and by support we from

enterprise revenue revenue our our geographic market revenue, during Breaking business business of add our vertical Japan and quarter. our generated generated more, XX% of the generated let mix. the Europe while the Asia-Pac revenue of X%. From internationally. color represented we quarter some quarter during North On our a a represented remaining little of international America revenue Now bit basis, volume XX% perspective, revenue down generated revenue XX% our the XX% me around a and and and XX% of our in our business in media XX%

basis. now supplemental metrics quarterly me we share Let on a turn that to the

third the recurring to We quarter. the mid-XXs were XX%, which return levels with our rate in the rate quarter. our of line retention range to expectations and pleased dollar target to quarter retention historical for in our in was Our third low was above see

demonstrates of mentioned this Andy and our the media pricing new earlier, and As positive we believe impact sales strong execution packaging.

low-end impact in Our current talked the reset this million. the in overall the range our $XX quarter that expectation of come million first about $XX at we of to will of is that

Our were customer of customers. activity premium quarter. count the as classified quarter were the customer our was at with third during new which acquisition of X,XXX, the end X,XXX We pleased

Looking X% at up was within excludes revenue. annualized ARPU customer pricing customer which entry-level revenue our base, per annualized premium starter averaged $X,XXX our our year-over-year customers, premium in which and for was $XX,XXX,

was Looking $X.X at $X.XX was and our million $XX a profit share gross GAAP our quarter. was per loss million, results the operating for loss on basis,

non-GAAP our to results. Turning

generated period of $X.XX $XX.X a profit margin million revenue XX%. was to $X.X the and non-GAAP Our year-ago gross XX% from and quarter. in the million quarter loss support $XX.X third in compared non-GAAP compared income to margin of represented quarter in represents $XXX,XXX gross positive was the Non-GAAP profit $X XX.X a the in to adjusted the revenue XX% total EBITDA of weighted of loss in outperformance of expectations in of gross million flowed was third which the million line. $XXX,XXX Subscription approximately by was year-ago the the and operations third operating of quarter XXXX. million a weighted XX.X period. in was revenue based shares Non-GAAP our average above to to loss bottom and earnings EBITDA compares per $X.XX the This on outstanding, year-ago through Adjusted compared the share million during shares period. per which well on share average driven quarter

the cash cash flow. sheet to of We million. equivalents Turning with and ended quarter cash $XX.X and balance

and internal-use million like used $X.X $X.X capital quarter, operations was providing flow cash and $X.X in with third During now by capitalized million our we third XXXX. cash quarter from the million for flow outlook to in for the fourth Free our updated finish in guidance quarter. expenditures software. the I’d negative

are and approximately a to per expect be $X.X revenue. $XXX,XXX million of profitability we perspective, From loss million professional quarter, $X fourth on to non-GAAP average a range targeting to $XXX,XXX. to the revenue $X.XX is $X.X of of million, including loss the of For $XX.X operating in we to $XX.X services adjusted million XX.X based shares expected outstanding. Non-GAAP net share EBITDA weighted of million $X.XX

full-year This of revenue our $XXX.X raising million includes revenue now a be million. range are guidance We full-year. in services expect of $XXX.X professional million for to $XX.X to the approximately and

$X.XX $X.XX of $X.X terms weighted million, expect non-GAAP now loss our In lowering of to million non-GAAP And and of to we loss XX.X a operating net on shares $XX.X addition, of full-year profitability, to average a EBITDA to a $XX.X guidance our outstanding. per of adjusted $X.X are based we loss improving loss by in million million range million. share to

expect in free to Q&A. fourth $XX we expect to ready $XX.X we free $X quarter and questions. negative now cash take be that, for of to the range cash flow million. your cash million Operator, to generate With For are we’ll flow, we flow million of million, full-year in a positive $X

Operator

Instructions] we’ll At be session. state Please from question-and-answer Roderick with Tom question this time, is you. first Stifel. a question. Our Thank your conducting [Operator

Jeffrey Parker Lane

you’re an laid what Parker actually target taking Thanks. the business it’s business, out wondering, the could was overall? Kevin, Thanks you for my Hi, on update I the Lane provide media Tom. in had if company bookings and enterprise the to for both trends and seeing question.

Kevin Rhodes

that. do to happy Parker, Sure,

the at full-year. As at you to said we mid growth be of bookings the high-teens of that year to kind expecting beginning are we’ve for know, the the

you kind year have given for the We of throughout updates that.

in about and being obviously, the achieve between do because to prepared bookings achieve mid variability to said quarters, be that expecting still for there that feel we quarter, full-year. we the are break we in opportunities how each somewhere don’t high-teens and to individually good our down target. As remarks, we We but every still could growth very able

Jeffrey Parker Lane

on going Then structure it. and the international Got what back your review at looking operations overall to sales you’re front.

can if anything Just even in Europe particular, or or wondering North you over from can translate if Asia-Pacific to itself. anything the there’s you maybe there’s Japan, business, glean into America

from seeing business? that you’re business distinguishes broader what from Just that it Thanks. the

Andrew Feinberg

was just of Sure. of and all the international the our across of side. for all the a it’s thanks and Hey, We Parker, question. the conducted down entire organization, look, not productivity at geographies and Andy, we And yes, review sales of the businesses. review to looked level full the organization, the rep goes

lot made practices as there. Blair, EMEA a the had in who over to brought the substantial of team we success looking already JAPAC to over of had organization Mark organization have the And and working and APAC quarters the go-forward there We our London, We to on last our we’ve very best in several progress. much learnings and the the organization. a sales EMEA And been forward over lot from brought course know. of the changes you region, ran have we

bringing us. improving we’re the really in excited we’ve We been at front opportunities about productivity, wherever best practices and looking of have been those

Jeffrey Parker Lane

Thanks, guys.

Operator

question Frankel is with Dougherty question. Company. next state Steven & And Our please your from

Steven Frankel

Good afternoon.

the you So – more just apps, cross-sell you’ve is quarters. existing – getting customer To strong the these firewall momentum really can or that outside what you in behind-the-firewall on some last are which extent then customers, shown the base? of couple new these the applications app broadening over

Andrew Feinberg

you. Well, Yes. thank

good sector. We have had in the some really momentum enterprise

And introduced Last are the sign-on, was single and you very Definitely, about it we Brightcove market is we we’ve our at there the such features quarter first quarter opportunities activity. know, about were PLAY may excited the really as and some cross-sell. the in and suite was it’s uptake we excited the launched conference. As enterprise that creating.

that Our opportunities. a an hope is and is be video, to has for that all of opening needs serve, able other the different for behind-the-firewall certainly enterprise we’ll doors

Steven Frankel

you there about seven-figure us of insight tell bit want signed on you us was competitive the why you else anything of nature think and in then or the the can – it? that situation into you you deal maybe and little can this QX, a Okay. And deal give early that

Andrew Feinberg

the was because variety over market Delivery, that that the of of know was new to I technologies reasons brought the last excited. very product other and a we’ve Sure. one Dynamic want we of it introduced, the initiatives we course of the Customer year. that

addition, team showing. strong our In made a very

offerings. served for references We us. Those have know, experienced, OTT global with strong as large you as

was a had – of product successfully execution implementations. successes by reputation had it the so the And we’ve demonstrated overall, team, with combination our that that good and

innovation, down the of the for for to to experts, stream terms got practices in of think and a large was of as service largely, time, look, long competition, outsource, vendor that team narrowed terms and and choice saying competition the we’re outsourced a we in-house. that in we’ve that, choice we And a this continuing as of have order a got In is best prevailed. the best been best you’ve and

Steven Frankel

want I few the then, to over out, And us higher path to Great. look don’t next because the maybe like talk to does gross How that could margins. you feel service quarters? about and Kevin left support

Kevin Rhodes

subscription services? higher Yes, the path to or

Steven Frankel

I’m can’t own and I my sorry, read subscription handwriting. support,

Kevin Rhodes

some during the reductions really had at one, There’s and some we a our storage, as of quarter. bandwidth, did deliver, XXX quarter, meaningful you good, points that subscription the really this COGS know, growth, power, good, third around some We make in right? things. in basis computing some are solid there’s three there’s margins. also to okay. the and we all That’s It’s looking quarter Number in

storage what contracts, think customer terms across new reducing can organization. technology the of our about new of and base, renegotiating was The future expanding having some the our it’s about technology do pricing. I When margins new couple it and good things. within quite one, so of Number the our our the feel well. And new deployed of going some some footprint do frankly subscriber it we very the in of is I in a was pricing

commodity that’s expanding of actually in one kind amount for that and the reducing the rates So we’re is that contract would the of pay some the platform therefore, we’re elements.

margins going of over a you factor, as And that and give if will well. us an that’s with will, to price, have uplift better certainly the contract our overall stickiness so time

just BGS bit to or On issue and side, BGS break-even revenue a a this fixed-price was came the costs that, margin back profitable projects We on to the had timing quarter. there a when a lower in. that of cover the because timing soon. bit to they We here get plan versus some

Steven Frankel

then, – I you talking think you’re free if this bottoms, cash is generating If where guess, lastly, And Okay. cash do about think in you guess? flow the thinking I QX, bottom? this you’re

Kevin Rhodes

Yes.

next about for then, year, this we’re already said have think XXXX as For flow positive cash free sure. we’ve that year, And for expecting I well. to as

think I is million grow fourth to obviously cash this the And be. the in $X said. quarter is around what what So $X we would the of certainly bottom million

Steven Frankel

Great.

Operator

Okay.

Our is Glenn from state next question. question Thalmann. Mattson your with Ladenburg Please

Glenn Mattson

taking dynamics how for vision, thanks and some elements commodity is where why talk I more XX%, the the plan, can about that’s Hi, contract believe which occurred? you behind Thanks. platform, in rate, going is back you from I a believe transition? against you snapped away the previously predicted. of Is are your that move faster retention and had it kind to the which and long-term towards of – than question. lay that The And the said, you

Andrew Feinberg

the for it’s and in retention the Yes. thanks the rate. Thanks question Hey, Glenn, XX% Andy. for recognizing success

itself, well. on and happy this believe Look, are team that. repricing we are We is very I executing well the with strategy, media executing

really And driving so this. part that’s of

these new value know, the including are platform as embracing Second, that drive which, is the customers driving towards and are technologies that we into is technologies. to the of we adoption They are you offering is which license, platform. value this really helping baked the strategy, the seeing that

OTT seen And on growing. of so accounts. and that reports the we helping that then, the We’ve explosion growth adoption our all the really streaming, and opportunity that’s and believe the also is third, of is helpful. market growth And drive of consumption in the

I’m really are remember, So those all of them. halfway and positive, But we’re it. about happy through things just

have six go months to it and quarter quarter and we We’re next prove after. again the in,

Glenn Mattson

what’s get And entire to base process the it newer converted the is customer it for – pricing how will model? take long how long the to –

Andrew Feinberg

Yes.

ago, We are which about to anticipating sticking are the we customer a of the start from get quarters model we had that base the the talked a majority year great with couple over. of is

have by concluding the would that us year. next end so of And QX

Kevin Rhodes

That’s right.

Glenn Mattson

would little Great. continue aligned. this rate, start growth And the that? we and once that guess, that I revenue year and on putting to next assuming XXs that, all trends are running these to guess closer out through to the it get the retention of together, higher Is we think bookings then how growth get a would closer I that

Andrew Feinberg

the That is. plan is what

Kevin Rhodes

guiding over But an of XXXX retention yet, in the improvement course. not yes, on this. We’re to plan based is is time that see

Glenn Mattson

scope? sales Right, the you about And you Can to of – give you that talking a last some there? lot need of a thing, are there the bit by that you to do Is sense guys. on go right. us initiated turnover force,

Andrew Feinberg

Sure.

will on an we’ve capacity. areas as some process. demand, some be productivity. And we’ve net some productivity, always it’s where we haven’t where we full review an had we described, we’ll to are we something frankly, ongoing not down changes also basis, and productivity doing. unmet rep have look, and we I’ve it’s I said, we the made the in changes a ongoing And have So we, seen capacity. some be down and identified have added did level And process strong it areas and made certainly as a where changes But in same

Glenn Mattson

Good great. going. and luck Thanks. Okay, keep

Andrew Feinberg

very much. Thank you

Operator

your Latimore next question. question Please Capital with Markets. Mike is state from Northland Our

Nick Altmann

taking for Yes. Hey, Mike. guys, on is this actually our Thanks questions. Nick for Altmann

Dynamic of think, is the first, now? on Just I guys to base Delivery you media installed said XX% clarify,

Andrew Feinberg

correct. So that’s That’s right. about

Nick Altmann

media what Delivery on Dynamic And would of revenue be now? overall percent Okay. then,

Andrew Feinberg

Kevin?

Kevin Rhodes

back-end So processing to the actually business. the be going Dynamic entire for Delivery is

and are So as to quarter, we get customers that over through each we moving every Delivery. Dynamic

drive going into on customers to through, new point. We would at the the to of it’s supermajority continue kind I our the not majority, certainly that technology should So say, have of XXXX. if

Nick Altmann

And process through then, new as get of contracts the you worsen or to Okay. converting over do next churn expect guys two the quarters you so?

Andrew Feinberg

No.

I the you to ago, two had to the estimate. we lift out with media think on dollar million We had the gave So what side. repricing quarters modeled we respect for retention shared million $XX that $XX

As we described, this than that. through we’ve seen anticipated. we’re And at way better success we about half point,

are And looking the that so at currently of we low-end range.

I as about However, halfway through. said, we’re

We to go. have quarters two more

model. sticking We’re our with

We’re not that. changing

Kevin Rhodes

Yes, XX%. quarter this clearly at to XX%. look I good a mean, XX% typically was We at

I of towards in of time. during that thinking low-end previous As this the we said were quarters, range period

next see we our two of and think, to to want through quarters, the it the were I call we’ll this we in don’t terms XXs, as thinking model how change it, low-end, I’ll low goes.

Nick Altmann

new with changes, each one, it. should we quarter? And last Got just then overages the less contract expect

Kevin Rhodes

The overages $X.X in year, they’ve been this this QX, quarter. million million $X.X million $X.X QX, in interesting,

$X.X You for QX. average in what our actually that million, out and that’s model you’re at had I

still QX, above little sorry, we that’s in third I’m had, little quarter, bit the $X.X what went I’m a that. quarter. for over I million So a fourth $X.X the there in million modeling but

Nick Altmann

Got it.

guys. Thanks, Okay.

Andrew Feinberg

Sure. very much. Thanks

Operator

your state Our next question & Krowl with question. is Please from Co. Riley Lee B.

Lee Krowl

taking congrats solid and question on quarter. guys. for Thanks a Hey, my

And of are guys that through was of just an are share existing a or a players wins. list they you are have kind new customer in to if I Curiosity run solution. these curious just if existing market, new out if customers opportunities? solution from video gained you First if or the question, guys just those adopters

Andrew Feinberg

Yes.

on So, the might switching a wins hey, and new type which of providers a over are some or video initiatives haven’t initiative, might solution for on cases, their embarking mixture, some initiative. or competition and In solutions embarking be customers ours. new on right? list with congrats in divisions some video thanks in of that outright they’re the they have didn’t they have but customer some the video thanks Lee, of they’re these So other that and a initiatives before, departments for already, question. launched solution, they to cases, be It’s

Lee Krowl

on was just as revenue, indicator or percentage services, how of does of to then integrate, a it seems it’s future think assume or of And product curious to for a this that’s professional more higher percentage function revenue. we or a level a technical I if if a just going expand of that’s the Okay. like whether tracking And as should of it to kind leading is forward? – a continue kind just revenue,

Andrew Feinberg

enabling large for and subscription that revenue. that’s, their adopt That’s engagements certainly, we’re to the leading goal, believe in what the along comes our future subscription describing, That’s are customers large goal projects for many what cases, and they’re we’re that unique their in significant we or more future that we’re Well, indicators of cases, revenue. easily at. unique with these ways use looking the solutions we’re offering certainly

large we do? we plenty In demand. There projects the certainly as terms of we to do continue market to is opportunity of drive have services believe that

future about As thinking it. let revenue, percentage Kevin, of the way I’ll a we’re describe you

Kevin Rhodes

even to I Sure. we’ll of side of $XX million do overall things. so professional about revenue services having don’t than see changing year that. revenue with I’d revenue subscription more that mean, of further about subscription what feel XX% we $XX that level that this the certainly dramatically revenue. is I future. on mix can each That’s the sustain services million in our X%, driving in year to

Lee Krowl

this set this is from reset an is – the kind Got quarters stone ago, of we with year just kind early something kind for if question it. have or of or reset are the to in an last reset the annual thing, two year to we’ll stone terms? of is And in occurred going set me see then of if kind another pricing that forward? curious Just change that’s next going a

Andrew Feinberg

happy in in achieving business again reset that not And will our we anticipation and we the that a the whole and we’re new to or where software the over is really are It value are a we success philosophy move goal structure of here service. regard, and in is to platform. is and the have certainly seeing with our selling that future. software The customers in pricing the making

So to we the in a don’t see change future. that reason

Lee Krowl

it. guys. Thanks, Got

Andrew Feinberg

Thank you.

Operator

question follow-up Instructions] We Frankel your state [Operator have do & Company. of Dougherty a Please Steven question. from

Steven Frankel

go just I back repricing want media this on to issue.

customers have you at fewer the lower-end. million the customers coming $XX million the leads guidance? churned have Is $XX because – the that are more the than ended rather to in off? or you buying in You What basically up

Andrew Feinberg

Sure, good a success terms percentage customers question. in having is And that, existing the run the Yes. of rate. with revenue retaining we’re answer more of

Steven Frankel

would buying again, right? And and paying retain trade that for bandwidth, I’m kind some I’m dollar the if to less value? storage something more Because off, of be of else

Kevin Rhodes

right, new our that software, That’s the building. we’re stuff

Steven Frankel

Okay, perfect.

Andrew Feinberg

Thanks, Steve. We’re happy it, about too.

Operator

remarks. and Okay. gentlemen, would session. turn closing we have for the end back like to of over management Ladies reached to call I the the question-and-answer

Andrew Feinberg

paying Great. for Well, for for and you, and thank up. following attention everybody, questions your

We’re the with pleased had. quarter that we

we’re to doing work laser-focused and more have We do it. on

to you Talk you soon. thank all. So

Operator

This concludes today’s conference.

thank lines you You at and may participation. this for disconnect your time, your

Brightcove (BCOV) 27 Oct 172017 Q3 Earnings call transcript