BCOV - Earnings call transcript Q3 2020

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Operator

Greetings. Welcome to the Brightcove Third Quarter 2020 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] Please note this conference is being recorded. the begin. to turn Denyeau, host, now may you will conference your over Brian I

Brian Denyeau

and to announced Officer. Chief afternoon me Chief we release Good Executive welcome after on will call. XXXX issued Rob Jeff discuss Today, the earnings Officer; call the Ray, close. and Financial results market in are press Brightcove's our With third Brightcove's quarter Brightcove's Noreck,

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

on conditions. results pandemic are and financial subject COVID-XX economic materially we may as differ to from with the actual date. business uncertainties only These of reflect of reflected and be of impact expectations, views well cause the often as statements identified These should anticipate, subsequent upon indications and we the general, future not words today could be views to a risks operations statements our or such representing as expectations. our as variety market statements of any that upcoming, on including effect as Forward-looking similar expect, of as our

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

let the of provide results, with outlook financial today's Jeff results, will terms as an our finish XXXX call, over of our for our additional full regarding fourth the Jeff. will review call and quarter a operations as quarter review summary that, update details a our second me our to for the agenda year XXXX. on In well strategy. turn Rob of With and

Jeff Ray

thanks tool safe. investments with over for you I the quarter is and a and the had two video and results Brian the need and to essential we wins partners. upon for become has all you of long and remain years all half employees, Thanks of joining Brightcove their capable are every together healthy families achieving. incredible and strategic organization the achieve The made quarter. second that connect this business performance and customer of your decisions record quarter third of and across which in builds exceptional today. hope exceeded aspect our an business us sales and all to customers, to demonstrate past The we've an communicate known coming delivering the

guidance full which profitable third on performance more we raising later, to expertise companies combined our delivering year. alike, is is best-in-class technology are faster, driving growth enterprises Our in business. our fourth based will for provide our videos media product promise outlook but platform for the quarter portfolio and and and the deep the quarter, our video the Rob with details of

and retention range is of a the the this achievement, beginning year, uncertainty which given overall guidance our within the year, economic fact, to the remarkable the provided COVID is pandemic. issues the updated we original In at related earlier rate

the some would product-driven million, I $X.X year-over-year what's highlighting our EBITDA doing why the Turning delivered of what financial our and -- like the is third briefly confident was in time also its guide. our it quarter, to of are core at we revenue performance. guidance. spend topline million, driving for X% which ahead market, we is success Adjusted for and are up drive was to first sustainable, well well through results $XX.X we a Brightcove company. our ahead of

video and years, platform partner enterprise significant earnings changes most can any the and market complexity Campaign, productive. so sales and choice region. ways in with operation, video, video XX Thanks we reps prior media company are off. sales to discussed critical This believe our strategy. a our past virtual have new paying we experiences our global quickly Brightcove becoming can app, to begins are recent virtual leverage With for scalable, and From can engage, team, generation fuel Within the customers partner sophistication value elegant simplify with past business customers. of bold field marketing demand looking is purpose-built more engagement year a virtual We calls recent exceptional sales past all to the onboarding performing the have that experience, like perspective, on enjoyed of focus demonstrates six Brightcove Brightcove for that the deliver we to comprehensive for exciting and targeted to products into company summit, that that scale on a the this the new they're or brought using across our over and trust use Brightcove is in Brightcove robust proven of a the video audience. high we of companies. mission The their a pipeline Over events Brightcove With video needs. custom our they developed in market. Beacon, number processes. months of platform drive momentum on the Brightcove's to enterprises three-day growth event their the like have introduction media experiences easy video solutions with our its meet every

sales rep with selling success strategy a of acquiring our into Brightcove business identify great can others customers seeing solve organization to to logos, are while focused activity. skilled responsible proactive new developed back strategically The how efforts We've having and product great dedicated generating base. specific that We our go-to-market are for changes problems. in engages install and sales our portfolio improvement are on

is would the for quarter time performance results each customers, the notable by existing well highlighting I among a third are continue to to performance our spend success the beacon. volume we our geography with Both for Brightcove's deal region The deal burst Our the key average are tremendous and bright quarter. some in expectations. plan. of beacons customers, new exceeding and of like few those size of have ahead with drivers strong our

an due drive flexibility to bespoke several customers technology-rich transforming OTT development a greater to any maintain of project truly OTT leading the ease deployment in of exciting enable Brightcove's service use into ways an to organization offer. are that freedom opportunities video timeframes. new delivery value. and from capabilities with opened use platform its shorter to This has gives up in a We Beacon

reinforcing we number ability their partners and Brightcove events several and September, ROI, hybrid strength the best connect Through to future. pivot the up and events new live with already have our with the successful fans. brands exciting seeing assigning is different fitness, belief continued a We're increased in model than the media. with world. of list opportunities more employees, The end deliver and by our live sports, The open near in customers, that to events of events prospects. second live key and And audience virtual expand with that XXX organizations they wins have growing powered growing We're is events be the in offering. engage we reach, technology, industries, including helped of will how customers

just and Hopper a Our months. Open Annual we are past momentum and Annual USGA, with brands the I'd gala, Grace the getting recent virtual like few honored started have partnered XXXX, HubSpot few like to highlight over to Conference, AnitaB.org is wins. INBOUND U.S. User events

South is are proud recent particularly win by a Southwest we of.

most This at delivered XXX time. new customers more attendees XXXX attendees. VMworld more power and demand in it as years, sessions. for Conference. who weekly, event over the attendees South incredible Texas. will and XXX XXXX, an watched first be Brightcove the XX gathered countries deliver innovative has live User truly video in at We the For with XXX,XXX year the went VMworld innovative breach Annual audiences continues goes it to by the engage world's virtual first VMware The was coming time minds for virtual and by more demand from his In content. the South partnered Using This XX,XXX pivot had ways, to than Festival. and hosted Austin, Southwest organization than broader using like for event recently to bandit XXXX flawlessly. of with grow as speakers X,XXX on prospects number on present to Southwest

to virtual a where new industry reimagine event the primary has the world had Lastly, is connection.

the of and logos partners Each three major video of the Brightcove potential a the events in strongest the for model, and will world, delivered those event audiences Brightcove could connecting our to leaders strong remain partner engaging portfolio, events endorsement planning demand the build industry reach own. we have event and the play approach video of chose will that and understanding Collectively, Jack more in certainly marketplace adding a reach more component as with expand of we an for scalability XXX key their of to on help audiences. companies will in Brightcove. customers the events strategy. with We far will time, a experiences. of a role event these short All our their [Indiscernible] new with video to a provide to access addition than virtual be platform. be believe in The In And essential in sizes just with the driver to period biggest and target industry fact connecting reputation in three deepest unique all how these we power leaders extends The our of these future long-term than our partners. a agreements is Morton. have hybrid these their have of

who customers a with existing Brightcove. win continue addition, of customer to balanced we delivered and engagement In their expand new mix

connect than fitness highlight is fitness a that of in-person classes, traditional in Hitachi, for the [Indiscernible] past to brand can partnered with for customer ClassPass, ClassPass Some business as geographically Figaro, online incredible more they experienced Le logos XX our an its wins to customers Boston Chick-fil-A, as renewals DAAR content classes the instruction, few that over numerous studios. Corporation, a wins Once their posting of I from COVID in in USA. We Group, put Time -- the Chipotle, the and our Consulting VoD signed Coupang and continue as reliable quarter continue with previous exercise to uploading to pivoted like we included year so quarter. would key dispersed Communication, well its live from members Media, be and fitness source Among portfolio its out work halt by new a content. growth them the classes home.

relationship million Another past quarter, scale in study viewer on This COVID needed [Indiscernible] Christian church the XX,XXX conducted transform the has organization. and quickly to churches Brightcove a XX Convention, LifeWay It his because to focused U.S. growing exceptional with the Southern required and us we members for vertical deliver one Baptist Bible as non-profit on restrictions services operations its is are is Resources experiences. LifeWay its virtually. which ministry expanded only across be

evolved also we the of it body traction to the on Program, account during sports Brightcove a A Federation Besides managed Football own within content FFA engage part videos allows The Australia, pandemic. partnership beach Master their encouraging league and mentioned soccer, demand with event partners technology matches. has and all firsthand its is Brightcove of upload for Partner Lastly, content The grassroots watched snackable meant since we our to License a dramatically to have Each service fans. audience. offering. broader new have I with launched the a Brightcove football, our soccer customers what to of and solutions deliver recently deliver the which uses early previously, learn Australia, club all XXXX, as video experience of governing

with pleased into We this embedding have interest to the five third-party are signed already of for services. and partners program level Brightcove

contributor velocity. continue believe robust reach program We will a expanding an sales our by our to channel and be increasing to important market growth

economy. the future, are the uncertainty the to of look we As mindful we in

feel to we focus engage, for and understand for will the need the it unite, However, deliver, brand video communicate. to power remain can a

inflection that still away. has current confident this acknowledge will success year, work reached are point to are have market had We but sustainable do. goes an that video much continue trends We've COVID after and we

we rate Revenue This As comprehensive will is this Chief Officer I a on is to good am but leading had more quarter, and a business. stronger, Rob build our build a is renewal Hanson, discuss, renewals intensely that best-in-class a business. process focused an Rick retention our area to goal predictable

powerful as we do quarters. improved, sales of our for have retention a business improved successfully catalyst profitable renewal in more dynamic product the Just and efforts, our future an go-to-market The revenue will same and rate rebuilt with our development be combination we will growth. strong

thinking Dr. Rob, Ranjan. members; Tsedal a Business of Harvard Rakuten’s to our to Ritcha over School I'd professor is Board is new Tsedal Advisory And and Management Director two help Before the like shape of I and excited for To Product Gupta perspective. a expertise and member Board. Finance. technology, their Neeley Google forward forward ongoing turn We're Ritcha welcome it how organizational from the Their guidance. the look performing. to am excited and business onboard ideas to by of I them and and insight have will wrap-up, is future leadership, Brightcove

point, is worked us third strategic tremendous COVID. passion challenges to who right we objectives. track on the and this get that strategy to during our as Brightcove's The by dedication am the amazed personal demonstrates to of they and facing that to working I quarter adapted have our employees tirelessly life achieve long-term are

has team always remained ensuring customers focused success. Our on our

successfully the great Rob? generate building significant turn a that, level. Brightcove, to to chapter execute shareholders our continue value strategy. we're a have next have to We to numbers. know through people call for we team the to and over the we walk right will I history you let this new Rob With the confident on We're take one in company as me the of

Rob Noreck

our next million was review support $X.X revenue quarter. related $XXX.X guidance the you, million. quarter everyone. detailed amount will geographic I which basis, Total a full quarter increase. a was backlog the XX as throughout third million, year-over-year which performance professional On months we represents aggregate in $XX.X million. future to bookings define of months, was committed the generated in revenue quarter revenue quarter. This little subscription International. with Thank services by and year above America obligation of XX and quarter more, of revenue of down XX% This generated XX% good X% our subscription Jeff we will North Europe is the generated and for was Asia-Pacific revenue in the further, a and Breaking revenue range. expected revenue our our the than during our international Japan revenue the Breaking during well XX% of a revenue XX% $XX.X outlook I and fourth better then third and driven in XXXX. was down afternoon, with the finish begin and

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

retention our in a of low recurring at strong range quarter was notable rate Our XXs. improvement XXX%, which target This from above recent driven the was of time activity third the quarters to renewal. primarily mid by upsell extremely dollar was

quarters. improvement specifically don't report we also gross it recent showed rate, some dollar from retention While

have pleased to are more renewals build in we this we While consistent of work with business. the a the do metric quarter, performance still to

this significant are strategic for and investing key area resources. us As is Jeff mentioned, priority in a we

changes metric may of volatility of feel full the this the the second in to in half have making we're we some XXXX. the impact We continue before expect near-term

was third X,XXX customers. the which as quarter classified premium of X,XXX, of end the at are count customer Our

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

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

million, quarter margin four represented results, years and and profit period non-GAAP to non-GAAP better $X.X $XX.X from XX% our This the in quarter business. income $X.X a in million the our year operations quarter providers, gross support expected in of in a the ago gross strongest in XXXX. and compared a margin in the third million gross EBITDA is revenue the a Turning our compared with was third gross the XXXX. the third was was generated third gross revenue driven in compared performance quarter of million margin to million the XX%. our of quarter. to Non-GAAP by compared the XX% gained high an guidance of Subscription XX% revenue, Adjusted quarter to million margin period end and the the $X.X for our and than our year increasing diversification quarter in efficiencies our in of $X.X third performance, ago range represented above total $XX.X of to

For double-digit of the powerful business time indication of the margin, in adjusted model. a EBIT history, scalability generated we a first our our

is period. to spend shares million million average XX.X productivity weighted drive reallocate outstanding outstanding. focus growth Non-GAAP initiatives. compares ways net $X.XX of share per find to Our in our XX existing improvements on shares to average income continue on and $X.XX share weighted net per the was towards based year This ago income to

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

fourth year account capital software. we operations capitalize and like and quarter million. now third million cash to by During full use in taking and the from $X.X After the updated finish internal generated was providing XXXX. flow would $X.X in outlook into expenditures I $X.X free quarter, flow cash for the an million

best quarters. the and our level performing and sales two history a have second quarters high are third in delivered the at We in

overall will our it and activity. fourth is for don't we're guidance we environment as the our third difficulty we'll trends quarter also Having the that, pipeline seeing prudent in in mindful the of are contemplate uncertain new closing economic when cycles positive We predicting successful said business the be assume close. to and sales as as We think business in quarter. were we in

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

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

third EBITDA guidance of the year consecutive growth. reflects adjusted Our annual

are million. $X $X of year, To summarize, flow quarter. million full to the a For now cash third targeting free we we great had

leadership Our superior solutions. of platform for market products our a puts to in from the growing great of benefit market spot and performance the Brightcove video

the environment growth. will questions. Operator, Q&A. very With well more profitable to executing take to we the we challenging believe are build now upon We that, our we recent generate are begin and faster, well-positioned ready your to success through are economic

Operator

we time, Markets. proceed Martinuzzi first from be your at question Capital Please question. session. will a conducting [Operator with Lake Instructions] Eric Street question-and-answer And this with is Our

Eric Martinuzzi

the quarter on it outlook. of my screw the first in coverage. Always up to and quarter not good Thanks. Congrats

of of quarter on and a wondering Is there's I'm rising success like back to the much Brightcove? curious this tide here, kind at lifting a all know you obviously do shear So, in some in -- the look the got taking favor competitive just stepping how shift rising feel Or going the just boats? I'm of tide landscape? we've

Jeff Ray

there's That than companies welcome. think more, Jeff. decision being Yes, Great Certainly tide a quality on rising planet. a talking best Eric. have a in to our when Hey think fact there is your make that said, security, of the the customer that urgency This quality us. organization more share. part. I support picking experience, timing in I on video. on is fair winning lot start They they the reliability, we're we end Because about of up service, scalability,

of more may measured in So And yes, two urgency engagement have may numbers the be a interest. or been is now the weeks. driving three past what month in single-digit

We rate. our with we're pleased are -- win

Eric Martinuzzi

then for pendulum the way -- the area Where Okay. that kind retention specific, kind story? loss? really Brightcove relatively And definitely dollar in hard of was the of was it rate free here of QX versus other somebody was? is QX and that swung was compare of QX. the fresh in And success contrast the set you you Can the who's other why saw QX? it favor to recurring Why

Rob Noreck

Yes. This Sure. is Rob.

left If having you remember, customers some downsize if QX to back couple around their media you time those two the renewal call, so in was challenges the customers. of talked was who And of growing we or the about spaces. agreements. really at upsells second go large a us One

This lot time we quite also customers of historically success renewal. quarter, We success been. then has But of got saw our last the from gross existing quarter, retention rate that a at where with not we sides. it both on up upselling had

of quarter, but of XXXX. volatility next there get plans the our back seeing it's really And rate as ours. few again, in focus you start basis, retention what we from quarter. last until implemented. this had go the to saw a of we this on So quarter a quarter we some retention We really consistent about think quarters, forward expect that's all strong certainly a half I over happen do a And rate that,

Eric Martinuzzi

on as the margins obviously, last model for business? with there success gross some the is outperformance, efficiencies, Okay. the question you on And gross in is look had terrific mind revenue we keep QX we and then margin, for anything the for here to me should

Rob Noreck

you of a should success that at be think it some could QX, as look I But going you little forward. see Yes, we volatile. as

our didn't necessarily As up revenue you in model. saw increased that from line some we usage routable a QX, saw customers with

look QX, you the for happening again. that there So out as is some at potential of

Eric Martinuzzi

Thanks quarter. good Okay. congrats and questions for my the again taking on

Jeff Ray

Thanks, Eric.

Rob Noreck

Eric. Thanks, Absolutely.

Operator

our with Northland from is proceed question And next Capital question. Markets. Latimore Mike your Please with

Mike Latimore

two now. a row in Beautiful. quarter, Excellent Yes. Great.

what On of percent the events, in you category what live in the kind bookings would -- live of put quarter? that events

Jeff Ray

it growing jump break you it if We I'll don't very, don't it's to quickly. out. We out. tell very Certainly, that, wants break Rob into.

I of performance I'm what business, think most balanced of terms types our excited based about in is balanced of even just the core in balance terms geos, business.

to than legacy whole want we refresh you that, If to it call stack. continue technology the

All were our of target segments. as those healthy, were

Mike Latimore

how you And to third when terms great pipeline, were any quantification then relative the of the be pipeline would characterize the fourth And entering just of quarter Great. sort you change entering would in of the here quarter? too?

Jeff Ray

We it. very, healthy it's pipeline. feel good It's very about a a --

handle -- importantly, building the point getting the had we But had happy We're plans, the with conversion pipeline, the focus in to the a pipeline, the the think more happy just been coverage know, at point the I quality of now plans. where the to we're coverage. where we're You with enough rate. past, and booking the

Mike Latimore

area little of on would that while, as you obviously, Or Great. quarter, would then the what guess on the media to any I mentioned great particular side volatility, potential revenue a a things? maybe said, just cause for the what you cause a of -- is that And and volatility guess? I say, in there bit retention,

Jeff Ray

we're continue see volatility going the media it. side The to Yes. on to of

And next some we overall that to little six forward, media implementation. second really their piece models where can the a we nine As customers months particularly things. Those the got year, making really headwinds business there. is it's economic of environment to provide it's a out. that migrate the the some have customers One, go in to are media more two you've choices out of on bit complex those

this of year, until we're year. to the next starting place QX kind on the back in and half not as the on impact retention the in have that execute So of may of plans, plans all we on an putting

Mike Latimore

Congratulations. Great. Thanks a lot.

Rob Noreck

you. Thank

Jeff Ray

Thanks care. Mike. Take

Operator

with from question Lee question. B. next proceed is Please Our Securities. your Krowl Riley with

Lee Krowl

implied the kind what Thanks I sequential the full for thoughts guess, start-off uptick, wins? Or is a guess, significant echoing there? if Great. the and is you of for good for that my customer QX of I guidance your such to It I on $X million kind see it on less Wanted quick flat new revenue just improved for established on visibility? QX took Or implied a what conservatism And the from business guess, guidance, out your macro guidance. maybe increase? execution. revenue there is taking looks the what towards quarter year, take for the I of quarter outlook questions. congrats I And just curious $X by and like asking up last versus QX this it's that then guidance. meant are QX. guidance to -- drivers pretty million the I'm increase about this take

Jeff Ray

that -- the than this, been really lot March. since We in the to know, changed we I'll not lockdown. march consistent, a have we view hasn't. when vaccine did really, we're go Yes, We market or uncertainty any a don't outlook. going there's first. macro of or That today, the in the a whether XXth, of started that We've to our pretty really haven't still resolution more

close I'll and from in engage hasn't with getting earlier into beat anything -- pulled to really -- our the our factor, our and there's from a quarter, business them. have better a the business that job team things in on attract doing helps else. Also, in ability confidence the a which changed. expand couple A and changed, Rob us of competition sales So a let of is revenue certainly timing standpoint,

Rob Noreck

of, kind much got customers visibility the that better one at under. imagine, our we macro start environment than that into can can the you particularly and we've quarter given quarter, a be pressures as even Lee, Yes. off, of the do quarter

And visibility. it's -- at So the QX, the got outcome saw the performance sales third quarter. as and retention we an performance in it's we that in the of look we've great rate really,

Lee Krowl

then switching Got it. And over EBIT guidance. to

result into double high items Solid Are a it particular single downtick QX, the of on looks have that but to kind outlook? out -- guidance digit there expense like call in you any for that digits QX.

Rob Noreck

sales at into quarter. we're look the to Yes, the those we a to investments marketing at we're for XXXX? the of going making looking start need fourth -- XXXX making sort in what get We're as that the fast investments so early the really are investments investments, in

Lee Krowl

last I'll then question to kind a but is? QX, are you sense, try sales channel you upside, this maybe want mix and of upside ramp And you a kind the me down of channel to the starting to from where I productivity to channel you the the of talk just and about over function direct that just I so, way it of right of next and guess, quarters? of the now, know, break in couple being maybe how versus guys of could sales with get kind expect ramp the terms And progress sales this frame of sense in it. makes Got and that in

Jeff Ray

at got still channel We're year. of Jeff. we obviously, is serious this this -- in launching the still only beginning the We're days, early Sure. about

deals in we're plan. channel. that of it of It exceeds it encouraged is are partners. healthy. -- about very, we just And of winning what kinds is ahead I'm just pipeline most quality team are expectations. with we're very channel our We -- the channel where the pleased with The is well The

you're But And going So pull, accelerating is what our than further we'll little we I of team. investments future. a implying feel very to bit the what premature. that that. It's I'm be you about really for I some hear asking. kind think good about of

where of, going direct be? about be, we're clear I where Right very very, still we're channel discussions conflict. there's will away terms some good cannibalism. now, In from time And conflict, there's about delineation. feel zero very or have we will think where And any channel to that.

Lee Krowl

thank the for results. questions. Got my it. on Congrats you And taking

Jeff Ray

Thank you.

Rob Noreck

you. Thank

Operator

proceed And question Please Frankel Dougherty. with your from question. is our next with Steven

Steven Frankel

Congratulations.

take insight of convert a some us give events, ones revenue the partners your those of You talked event recurring through some customers relationship success about your especially products? come to one-off into into those maybe the the that in Can and business. live ability around other you some

Jeff Ray

some what competence start Jeff construct revenue is an deal, attended entity will be which in virtual first. kind where jump on live us discussion triggered That's kind better obviously, by typically to we I'll of and and Rob an at gives to the triggers as on Typically, event the event. then Sure, the was replace a issue element. to event what an going then recurring how this of has

it the more attendees. the this that beyond into that's plus pitfalls, XX,XXX customers make even an have sure I'm that live me here's large customers -- scale. they customers, it's chain. Maybe pretty to stakeholders in maybe here's jump two these supply And very go for a is about avoid reason on weeks team journey, talking a of better should discussion at do helping events. prospects, okay, here's you we with goes But a kind as ask, our them doing most what typically you because challenges, be know questions relationship very, don't good they there's the good. to are, so exceptional them pretty to with really have And event. to like, can the whoever the say, maybe As I is understand one a well things on need as we Then a new. little

their quality upgrading own the opportunity about OTT you us marketing so TV gives use channel, establish either Beacon to And that if of an their the for will. or start digital engagement, for talking and to of just

pop, very time any this, So, even a good spend studying this that lot deal then, constructs. we is a Rob we the seeing has of commentary kind events and certainly turn feel very, long of to a it live though on over we're on And tail. I'll

Rob Noreck

the of which about type you some of with of these into that Yes, typical on order drive of team kind talked deal so to that the longer license just and engagement with over point employees these period buy customer. seen customers model broader selling really our is a engagement. twofold. drive about the obviously We into other piece There's that the event if our taking that's time, point the But so that and little engagement. line we've sell And across construct, event. bit. event, that product sales to it's a it is the in Beacon to right then you term entry customers the around is a team in our starting more with products depending of prospects and But think customers' services a end the done up

Steven Frankel

the these of some these Cvent great. if as coming kind Okay, it well? in is of partners leads same And event or are other through process

Jeff Ray

each is our so Yes, bit partnerships one little that different. of a

some more engagement. referral partner And engagement went are of some type our OEM and off

Steven Frankel

you've great learned maybe working rate, Okay. quarters, of that us was the have to process it pull you to what are progress through could to to have And things what but because rate some of -- still do under be? you big quarter, which or And been have obviously weren't you big about when you and how get specifics, you this Jeff, want talked you do. you the couple still out the on then give kind the a where for upsells, work doing the retention multiple covers, on this this you correctly?

Jeff Ray

sales product, quarterly as the we it's aspects to marketing, As get needs last other fall. business all Domino of we last have call, about we just serious the the for were going and us, shared to attacking is this, that this in engineering, the

of we with the difficulty to And the that it. those shared the deploying. executing. time in fixing, terms it's of so and we with off start resolving, identified our on where and best in we've And we back it they gaps of strengths an kicked now where now the ourselves against an And benchmark August for market project, board, business, the are. impact were, prioritize place, outside breed, firm, have in us our blessed We started internal it we with is plan

near that I us, to nothing move that have results, takes deploy, for So there's takes do this wouldn't the of expect term to to this really a it while we we're that see in other any that waters, and we needle. risk while little into in going is There's And very very, it before. things this. uncharted has groundbreaking off company get ever to done done. we're do, need to no to a But kind it's venturing just

Steven Frankel

on are your renewal And rate higher versus general, the upsell in the side materially media side? enterprise and

Jeff Ray

customer level I the in it and sophistication. depends would really it where if I is the journey, the call of on know materially, don't

Steven Frankel

if the they're in your you the if too well customer can product, is engineered dropped Meaning as enough value with get get spots sweet sophisticated, middle? out. as not getting of And you out the out,

Jeff Ray

them using as true historically We more sales organization, media at with that from. I how the And that's the lot that the just engaging down and customer that be professional how doing of opposite. see a engaged sit that benefit helping they're there's now pre -- consulting understand they not well video. for them, more power can for consistently you do can think power could and the say, even can can level. but enterprise. they talented just more with and had really more We're a and That's sales team, video, of that's with as you

saw with activity the certainly And quarter. it so upsell the you in third

Steven Frankel

you. Thank great. Okay,

Jeff Ray

you. Thank

Rob Noreck

Thanks, Steve.

Operator

Mike Markets. next with Northland from proceed our Please your question. with is question And Capital Latimore

Jeff Ray

Mike, are you there? Are you on mute?

Mike Latimore

am I a Sorry. question. wonderful Yes. with

sustainable say gross that relatively that did forward? subscription margin, going the you So was

Jeff Ray

our volatility Yes, term, going a we to continue little there we on in think the basis, to there rates but be work long a I of can retention think as that. is to quarter-to-quarter bit similar

Mike Latimore

productivity, And guess where Salesforce it. of it's around you it, is Got to of Okay. want but Salesforce in color then clarify any wanted terms my kind just productivity?

Jeff Ray

got them. we've want Yes, I we think from where a productivity them standpoint,

in into of I an continue go we're we to to effort going invest in the acquisition. down to that year, as channel drive think, cost next

Mike Latimore

And then what was in last, just the quarter? overage

Jeff Ray

Overages were about X.X million.

Mike Latimore

All Thank Great. you. Okay. right.

Jeff Ray

you. Thank

Operator

we And Jeff of And question-and-answer for have now to over Ray remarks. the end call reached the session. the CEO closing I'll turn

Jeff Ray

for you, Thank you your help. Smalley, and thank

said, quarter those We're but everyone, very you was That also. exciting sharing challenges are. I For am excited hope opportunities. also I our could telling We quarter. tell, it my with about what know in you, an we're see third being we fourth great voice.

and stay Bye. go everybody. Just safe Thanks, please healthy and continue to hope.

Operator

And lines this disconnect participation. concludes today's Thank for time. you conference you at your this your and may

Brightcove (BCOV) 21 Oct 202020 Q3 Earnings call transcript