BCOV - Earnings call transcript Q1 2021

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Operator

Greetings. Welcome to the Brightcove First Quarter 2021 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 to turn Denyeau. host, now will conference your over Brian I Mr. you begin. Denyeau, may

Brian Denyeau

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

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

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

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

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

Jeff Ray

while all goals, you Brian, financial Brightcove scale. continue global to team, innovation and experience. consistently exceptional the proud of Thanks, thanks and joining people connect families safe. and of our the to continues so Video I’m and to medium stay your everyone customer healthy meet most a I hope and ability on product be today. for to our powerful entire to delivering

We are in quarter record first sales XXXX driven off performances a to very impressive region. with strong each to by start

executing. is Our our team enterprises. performance rapidly both highly reinforce essential growing that and across an media companies is relevant, and and video These technology strategy reflected is results our

optimization We invest solutions to delivery will video comprehensive satisfy to to most innovation business cases. and platform continue in use the provide multiple with

of building sales an ecosystem, of extensive while while direct We every an the ensuring have customers. optimum created all channel our success engine one

to financial results. Turning summary of a our

Analyst was the Day. was quarter up revenue In head our Adjusted our our first we inaugural February, million, ahead of the XXX% year-over-year, up and $XX.X $X.X million, guidance. and hosted EBITDA For guidance. XX% well of year-over-year

there attend, of is the you Relations Investor our event If a replay on website. couldn't

our focus strategy This for During the included this the event, of we primary growth. three outlined our future for and areas. vision aggressive market

on innovation. First, a focus

purpose customers. This experiences analytics, to learning goal and and video superior viewing to quality, for AI performing that and most needs. broadcast machine needs and this video comprehensive by Our an for Add powered a all means their deliver our video across and our reliable is solutions high specific app to the use community differentiated internal platform highly have cases. of combined variety customers business create secure a solve business external to will built with access applications marketplace, performance and

of our each model go-to-market how Second, plans have globally. and provide indirect engagement we channel it in to of we outlined our and third, discussed global retention. our and our key made engine, success would updates expanded partners recent for and a customer of will strategy some highly on our areas. impact an And like scalable progress consisting direct we sales strategic selling I customers growth renewals these most teams, positively the leveraging

being technology on with itself on focused most start driven solving a complex innovation. Brightcove customer company prides product challenges. the Let's

significant is secure video world that device goal possible. broadcast to to the the Our reliable and way audiences to value deliver customers. our recently most for deliver in any quality in released two solutions anywhere will new We

any to customers should which playback to who maintain their content of is and from still remains access that helping Whether or ensures not. free and to security, content anywhere. monetized, counts users. Brightcove restrictions should and The content investments, confidential, by external customers anyone it, fully towards being restrictions makes platform brand the who first provides or view allowing readily playback integrity. while to the restrictions, see video every internal with provide device is content, available protecting Playback anyone our monetization content from Brightcove ability while unauthorized level watched protect audience, for The that internal right an inaccessible viewers

marketing business an use virtual expanding number features. events. events to virtual support customizable Brightcove creation, event calls delivery and We highly Virtual solution for archiving, of attendee midsized offers repeatable event the multi to and is also easy organizations. events intuitive by recently templates, a designed post business interactivity event virtual for launched for rapidly easily solution action, platform to service The hosted interactive event device events

multiple to event social video of media clipping live channels. as well As

the past achieved and video Many enterprises Microsoft their connect analytics. business, for it of virtual that a connector they Additionally, are include year tool virtual Zoom procedure, with life events made for for engagement With an to aspects to over continue with planning events want the extended events hold COVID and is a have and we business audiences registration after half. have to user maximize reach Teams enterprises Brightcove essential volume, for to events. simple They organization. across virtual recognize all repeatable high and integrations,

of now We to customers wins. had several the execution with broad success Let's video sales use solid turn many leveraging significant cases. go-to-market different quarter base across achieve to our and a

team and streaming could and will With and a the it scaled efficiently San The the explain business regular innovative School Brightcove improve to easy small famous service to to and directly to and asset different Singapore for viewing video when its well-known needed anywhere Giants, team [Condani] partner management Brightcove, virtual to organizations costs, to also display We video food. Brightcove our maintain create make to the improve commerce collaborate new notable video registered create by ROI. the Giants both interact industry get events their campaign accelerate our users company customer’s XX a School as drive more and clips ways content Giant partners how Brightcove work its leverage multi-screen, strategic casual the Inc, season Brightcove with were The these million include complex performance. (Ph) into for to be significantly sponsors ability with a OTT technology iOS that signed Enterprises large for holders, allow service Some several insights for reputation looking that market. able information restaurants world. around new developed and successful is they with a to for launch increasingly who known Brightcove with engagement digital actionable the chose marketing selected analytics reduce impactful restaurants from Box, brands and connects originally off in manage with and fans, to access in enables experiences. ticket Francisco turned LLC commonly They short cloud harder School share in in It the become most and examples platform provider audiences. as Korea Box to the improve Yourself quickly and chose Android and management [indiscernible] anyone. their that to to South using business. costly parent it web, Do experiences its consumers to has based worldwide. an regions multiple and homegrown more

support it after its grew, recognized and its expectations by were customer’s video business provider. previous Condani not needs streaming met chose its As Brightcove

for video supported facing video and is other many Digital customers reaching customer an enthusiasts NewCo, selected demand capabilities, advertising digital CMS with is reliability we quality experience Brightcove. strong welcomed third-party new support with Including an and outdoors platform around Condani support, performance Akamai extensive the customer much delivering a improved quarter, providers and with Outside lifestyle world. integration and playlist platform, the Brightcove customized GEDI services. the on a After technologies, is video Hagerty. Outside with viewed publisher, content excellent previous In experience, Magazine first of analytics, robust his of the issues to Merck Brightcove. which library a company, ad active customers Now by more on

us. recently Operations, commitment EMC are Baseball expanded Little Entercom we Forbes, continued the contracts Heinz, Kraft with proud and League renewed who Incorporated, their from Tver, Additionally, of Corp., and Sephora

another to technology Southwest Cloud Southwest Southwest Beacon pre-recorded digital” our We virtual by South also hours events. highlighted of quarter different monetized the channels. by South by and XXX and “XXX% impressive of of five South Brightcove EDU online, close online had with live success by powered and Brightcove Using Playout across events content and the Brightcove streamed fantastic by

our lasted provided The long team in the industry than weeks content. a in leadership reach accommodate extending and and broadcast said audiences. is options than Brightcove expanded South Southwest its filmmakers a by went talent. a and more traditional vendor, viewing Southwest and from buy South video of Further After impact by the reputation the achieving of the way festival. event that concluded, definitely enabled technology creativity us quality the “Brightcove’s also member partner. to creators a longer of

looking forward of next are it we becoming together advocates to Brightcove. year.” growing customers number to value them a increase doing again we are deliver We As for passionate the

and USGA, views with to their events impact USA Symphony, broad Seattle Golden a where Knights, Reverie, As it the on the we virtual result, us Adobe, Symphony, including and Synopsis. Vegas several has FreightWaves, video industries, Atlanta range experiences of joined Volleyball, the customers the share a hosted and

Analyst a of strategy our several including partners, primary this in was the as of expanding Day, during past LX expand to significant and the Tessitura a cultural partner provider with performances XX these partnership allow viewers and will made part Europe and channel. our integrate to organizations investment for Stripe new arts LX in we solution One enables Brightcove and cultural progress stream regions. that We highlighted instantly. purchase we interface our to with Most Signing recently, areas go-to-market announced our quarter. presence Asia institutions. to provide seamless

growth the the arts by to done organizations and a before critical post-COVID. a to indirect in Over then biggest way a audiences even orders. turn will part channel strategic impacted impact in they demonstrates is this revenue cultural the through be key organizations video. growth, cultural their reach audience reach pandemic and monetize or were past and recognize performing market. It our their reach The incremental extends and help stay-at-home LX long-term never content videos and Brightcove our broad of year, business. organizations to Scaling strategic These and of positive opportunity in partnership worldwide priority it have

update work confident the XX% in made we to would I delighted bookings. have finish best-in-class over to a next with develop and renewals substantially years contribution our progress the are our like providing with XX% by an the to are few to increase We abilities to sales business. of channel on

in our renewals The which delivered items on lead events have for we touch our new last a coming levels, journey, business quarter, forward, with community of the important focus customer their completing based to months. base. to mentioned first organizational we has building on on-boarding and advocacy our throughout needs. program in virtual new And available all additional the and segmentation structure. our community implemented allows a industry resources to team of support both groups is and And program As we thorough will invest on better these customers scheduled process, allocate already appointed new customer customer needs in on and team moving customers a several points call, The our including product with the customers a worldwide. and connect more

by combined I impact are of these renewals earlier our part business the significantly customers our increasingly priorities will We valuable Brightcove with businesses. an confident changes making strategic mentioned

We will and with of applying use same confident teams the are we have go-to-market that are we the level products same our principles and success. that we

take what have the we But I previously, to apparent. of would impact second be for in will As noted of I begin to like time see sustainable it I are improvement will and expect changes these wrap for year. the turning as this to investors half am and by media this partner. exciting continues their proud is in enterprises. an time reiterating team. for to increase they up And of Brightcove Brightcove to strategic importance our how companies Video

deliver an aggressive for that has is development portfolio believe roadmap enhance we the customers. the will product Our best it value been. we we And ever have

in all of our have strong execution team areas We exceptionally business. of evidence showing an

to a time. walk let expand With are call great position revenue our Rob the create margins Rob. shareholders We me over numbers. that, the over and to you growth, for through accelerate in to turn value

Robert Noreck

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

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

downgraded during recurring Our had customers first which our in was to relatively of dollar media when target quarter that retention these begin or large the have to two are mid-XXs. Jeff is There XX%, range did low retention renew rate outlined the a implemented. changes our was the improve rate. We positively below our operationally between to renewals quarter. progress we performance. made lag And when natural they impact not

the We see before retention to expect half be our of under pressure continued year. rate in QX we sustainable second improvement the in

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

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

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

Turning to our results. non-GAAP

range was of quarter million which at the support the and above quarter year $X.X in was total and quarter period, XX% and in quarter, period the Subscription in XX%, million million, margin represented our margin margin to first income million of the year $X.X Non-GAAP in from in first ago our the XX% first Adjusted in as gross ago up the compared gross a growth profitability time was guidance represented XXXX. high, revenue investing to EBITDA an X% profit compared of revenue an in part areas, gross quarter, the operations million compared approximately the from $X.X quarter our in the our to of XXXX. strategy. compared quarter improving first in XXXX. margin in for XX% million high key quarter. a in first nicely of the our first was gross quarter, and $X.X of while of important generated Our XX% end $XX.X the $XX.X all was non-GAAP to EBITDA Adjusted the

income progress weighted This income diluted based $X.XX Non-GAAP, period. outstanding. share and was made We on per ago weighted year net with average million to are per the share average $X.XX, net outstanding XX.X we pleased in a shares shares compares date. to XX.X million have

taking and $X.X and After capitalize and million. the account full-year second use cash into our would finish $X.X negative for quarter was to cash Turning sheet by expenditures $XXX,XXX in million with $XX.X the from cash free I and cash balance cash capital flows million. a the use equivalents and quarter operations we We ended flow software. XXXX. of like internal to providing guidance flow,

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

revenue I our the As retention quarter earlier. dynamics the reflects a guidance first reminder, in discussed

We return the in quarter. starting expect to quarterly to revenue growth sequential subscription third

the we are maintaining full-year, our previous For guidance.

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

the the weakening first up, another cash delivered full-year, primarily of performance targeting million Reduction Japanese guidance cash million. in our yen. $XX.X quarter. free strong by now are in we Brightcove wrap $XX.X For To to the driven flow is flow

the position this and of rule ready continue being believe to a to and top of even that value well are making as begin XX Operator, our deliver towards We Q&A. we against our drive our customers. us will line better not are We With your strategic we executing well question. to increasing we take performance bottom priorities goal progress company.

Operator

question Mike you. your Please is Latimore from with Capital Thank Instructions] Our [Operator first Northland question. Markets. with proceed

Mike Latimore

congratulations Thanks, great yes to year. start the a on

said I still churn about Is you this of what think are about? thinking roughly X.X expect million you quarter; year. that the you last revenue

Robert Noreck

reality called returning. But that year, revenue. we think the is quarter first I bit forward in that we heavier we growth will the that. to little that two QX - than was we subscription remarks The in the in that as we on said out quarter-over-quarter Yes, prepared customers sequential specifically is a the in go knew we to expect return as

Mike Latimore

then I bookings quarter quarter, quarter was normal in quarter. to And on think relative our How bookings comment first bookings? said last record say there any bookings you a first

Robert Noreck

was it best Yes, a standpoint. our quarter first actually from ever booking

Mike Latimore

last Okay. perform How channel And a you quarter. this I XX% this from then part? did did think standpoint, channel

Robert Noreck

saw that terms XX bit but So the down in new signed about we of little quarter-over-quarter channel rolled channel about channel. that we were of number in we in talked traction partners terms the the the saw good of partners, a of we script that business we through percentage

at it of though, where the look going. we see we not that, channel As indicative is

driving new future. see continue We channel XX% our XX% to the of in bookings the to

Mike Latimore

seeing just on of demand last there? And on pipeline Great. any or are qualitative you events, the commentary virtual then sort the

Jeff Ray

well, events we do we are go when doing Hey and out to solid it to to no live discussion Mike. to come going just about anymore. you COVID, talk Demand back we we virtual of are are not How there customers, events, is as is going Jeff.

one media new to and broadcast that when we of it someone quality We events. interest in can is they to overly of fact, having were business. this or the kind CMO announced the virtual quality, talk we technology the is in be staff CMO this We we dangers in that do. continue overwhelming, is making on found about why events complicating for go of to part And to see things, parcel the what

this let's said, a understand. simpler, make And lot to so easier we

let's the Let's way can go mid-market consume after business. it. a just bit And in little also, a more bundle of this they easily that

So we are we where with feeling about are good that.

pipeline and We to. enhancements product a also terms pretty have new aggressive in features teams as committed of product

the do to we what we So know features. enhance to functionality need

the a that have great also We partner rounds community kids. out

fill. So where are gaps can't there we that

We are partners have great do that. in to that stepping

Operator

Our with next from question is Steven Frankel Colliers.

your with You questions. may proceed

Steven Frankel

clarity can Good more start, a you afternoon. this issue. retention you get Rob, little just on

You had in going that away sequential The were telegraph. to two that QX balance. customers leading

were well to So are as that read customers we there turned into some in number the QX and off QX? other

Robert Noreck

of script is one they of brought a similar we consolidation, term? one company you of of talked right. a have two a have through through forward? they in-house. within the actually And situation more customers, is HX at deal merger. year, I then QX. to the to in on are are media look something platforms you then last which about nature which portion you Do are Or the business was of going this And two in That where just media is additional going downgraded as a customers. the media portfolio when this a go at with that lot and post your in And to think to this actually you consolidation that of

Jeff Ray

really way this had have from is, address mean, message are right? can't We every for day, and a I'm I we There today. Steven. things certainly that the getting the see of across last media, renewals announced and done there hey sent to were control. that But we excited up turning the So we to it Jeff, going summer ground everybody that. about you is is control This Verizon we what

predicting until while practices. much precision job we tracking processes, the progress the that best their Be don't enterprise that about risk we we and organization so anticipating customers. people We or helping see and technology better are leadership plan, us of a team XX-month heading roles, assessment use that is are Rob strategy, where more in in off do the new fully our a this And largest in rolling new now half out against media with deployed said, and the we renewal really in the of that new excited model, as it year. of the expect past. second of Better new

Steven Frankel

And by a onetime we Southwest by boosted surprisingly a even strong, strength contribute initial word then sequential event. even then? that or job Okay. ARPU was doing good of kind last South just Do of was Japanese this quarter package, to selling or

Jeff Ray

really Yes, it South wasn't Southwest. by

by annual period South bought There for to buy that they the of more didn't they of content. Southwest follow kind of a license, event. Because access just the short beacon. content is really on the lost on that on

So our What in saw initial growth new that take revenue the also place of customers. deals, in didn't with was those all QX. but you quarter kind first current in expansion continued

Steven Frankel

And QX? a then in us margin in lot but would the stepped What's it of have are side, the on down I support obviously, some margin pressure. in subscription QX, thought. pressure yes. more Revenue They is behind than there color give that making

Jeff Ray

obviously two I revenue is is think One things. stepped there the down.

expenses second in We operating line are pulling not back in quarter the on that. with

The are opportunity we invest second so of piece make on to us front are investments and that. continuing in and capitalize We marketing. continuing we the can in see those sales is to we

Steven Frankel

quarter? overages were what lastly, then And

Robert Noreck

Overages around million. right are $X.X

Operator

Lake proceed question from question. final with with Capital. Our Street Martinuzzi is Eric your Please

Eric Martinuzzi

a wondering the was platform on that issues churn the or to and consolidation, the additional it was to platform in-house but that about downgrade that just also I QX. consolidate talked into dive - in turnover you for an want into somebody house, a platform? competitor's understand, consolidating Yes, takes

Robert Noreck

consulting mix delivery. platforms was to It then was and enjoying it of Yes, across. video some a OTT

again, platforms the it consolidating really So around an was platform. one company not to two parent one. had competitor, was a in it And company in-house

Eric Martinuzzi

here for I guidance. going look to as the then off here of the implied head kind in guidance the trough backing in QX. that XXXX, kind full-year just then from knowing services, back It subscription QX does are got, QX up of our we and up on we then raise as like And the decline at step And of it quarters, subscriptions and a that you have up. look equally I'm we guidance up wondering, step back implied pretty kind do that in maintain? in across QX, of or pop kind as does spread substantial

Robert Noreck

think and QX. would consistent QX, QX I see to QX relatively Yes, then step you to a from would

Eric Martinuzzi

Jeff, business, talk, then think, And when talking about are for you you But have for we virtual on may event virtual I touched this. events creation.

virtual had was what you experiences. last this toolbox? terminology, or of mean, that a I that the ago, a of that whatever a is product, product template event came Is think that capability platform, out a of you more summer kind same version year

Jeff Ray

makes This it. buy easier deploy it and to to it

sweet enough where these done now have know of We to the spot is.

know also We where are. of gaps products where augmenting job our our partners do great a

use and I and businesses in will are we that we this so Also just around, targeting find time those how think those together. experience got attractive. marketing And precision have collectively taking to it that better CMOs putting this just a stronger organization knows that

continuing collected R&D knowing in products. headed. it in from features this serious investment functionality that And and So again, and to addition and more where and in kind the this, to add experience, applying is of that is market engineering,

Eric Martinuzzi

there. answers taking for Thanks I Alright, the questions. appreciate my Good.

Robert Noreck

you Eric. Thank

Jeff Ray

Eric. Thanks

Operator

of closing session. gentlemen, reached turn now question-and-answer Ladies you. the call the end over we Thank remarks. Jeff to and the will have Ray I for

Jeff Ray

Thank renewals you. I We registered believe, renewals. about will things remind know, are are in a come I and talked to doing are to great four And you We being well that. on legs the Again, while lot summer. have path we And we there It resolving lot well what a that everything challenges seeing a quarter. the this some fun that recognize still have of we last was together. stool.

product renewals Also expanding out building solve continued It solutions the than just more more start Those it about app and enterprise who investment data recruit community, It naturally are offer team more what sticky. much business is in that finally, is problems. because SDK out just we that As learning. also we and sticky. is the And fix that investments open this. the developer we applications extend very this easy a machine lot you much, specific we making that to platform and a whole will and then do later have developers on class year stronger API's. seeing make And app analytics, in more aggressive specific are process. go built makes ultimately the

month, particularly video. actionable from that we companies, use more data every are and valuable media their our our getting more of So

continue So we of Thank to And you the back us, has team business. and safe is I'm proud year, what feel great everyone it for the about to days. done. stay

Operator

at may time. Have lines disconnect conference your participation. evening. This you your you a concludes Thank for this today's and great

Brightcove (BCOV) 29 Apr 212021 Q1 Earnings call transcript