BCOV - Earnings call transcript Q1 2022

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Operator

Greetings and welcome to the Brightcove First Quarter 2022 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] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host Brian Denyeau, Investor Relations for Brightcove. you. Thank

begin. may You

Brian Denyeau

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

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

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

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

Marc DeBevoise

I'm and Brian, my call you sharing I with part spend with be the why at earnings delighted Brightcove detailed and overview for go to am to thank so joining through Thanks, this before an in you of hosting Rob, results. my be I'll to excited leading today. performance, execution first industry's going am handing myself QX financial also the give our our moment over Brightcove. here today I to evolution. including highlights you all to first of it introducing time

generate customers, this the on developing first are deeper plan delivered where value my With the fifth defined calendar So process to tremendous already for this did customers and sharing we and vision a us and our that Frankly, weeks. this have a third to strategy getting coming we strong One deeper month understanding my its continue lot day, I the plan the to a listening look my products enable of and underway, better is are. actually. Brightcove the role know here quarter. see growth. during diligence will with team. with and and week our to learning clearly I forward to future. meaningful investors to much XXth I go lot in a I've taking of in to I diving plan job, spent prior a

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own here own television view of We're and teams of point distribute legacy for early created across a digital exceptional mix a budgets it company. built a and traffic the large web As nothing. as developed what first of quickly my the minutes digital and to partnerships small early on shaped the earliest I a business than I me NBCUniversal those down. direct-to-consumer at my early requiring we that CBSN media services, mobile brands, well. for prior the Starz major three streaming XXXX. HQ. introduction and the largest strategic customers distribution growth for CBS businesses because streaming Brightcove. teams history desktop-based CBSI TV, a a and Starz. and from is experiences Officer there team That's this dollar tell or empowering where deliver media Still digital X.X, of Starz industry an ecosystem. a bigger streaming XX-year over Paramount+, story of to huge led digital to being to achieve still I today, developed Sports We medium CBS is still technology at social globally. the companies everyone at exceeding towards of and streamed owning revenue actually internal especially few diversified incredible. and led to helped technology the led XX marketers streaming teams high in firmly early customers, Access, to hours growing and these customer to powerful including many without nearly transformed generating companies. I and and billion the XXXX. and future These It's than recently, and Web helped driven content revolution. are multiple subscription from delivering incredible generate producers value. building has these in an have resources video We It advertising for massive as and video real scale video unified for slowing of company's the will terms. an video and Ultimately, a moved quarters and with move streaming over in forward. broadcaster growth managed of direct-to-consumer the transformations channel. I revolution, and from Chief of their launch a leader on and of a massive, the their including overwhelmingly I intend this and companies Web served to video CEO world's the tremendous and all believe business more driving which in to to year-over-year quarter to into and the CBS to and services case some the have to we importantly, XXX to of effectively million through and the Digital creators growing meaningful the years, also content was million content shows connect Brightcove audiences advertising XX% In connected responsible billions, All I market connected Brightcove major ViacomCBS does and industry and streaming most X.X, great distribute in More the we same in streaming, using global Brightcove do the Interactive. pushing hundred journey technology growth, films, operating enterprises we customer, President device believe traffic the leading days of revenue as many rate is it's no business media their build of CBS in video by need founding multi-million and it generator. I and led streaming businesses, I believe business with do I've many and balanced X.X marketed the long a was operations produced responsible diversifying mobile outside and I and a majority some and Internet company's messages. from their transforming of, not from as roles, numerous to their and for digital business

volume every day. that platform to scale almost a can have proving in handle it streaming do the we're that and any We way and secure most

us Before that role, know deep the opportunity Brightcove's of I where into been, joined with taking we customers, people thousands front most have great this it's puts patents and most us. Brightcove have of hundreds awards. combined XX-plus our the especially numerous a of advanced I a recognitions position, of are the and in products, did industry, who we dive and the performance This and market. the customers, of technology on in when some we talented Put I simply, industry because in global and

inflection and that reliably These gives act organization an a provide My of to I of video their the think live Brightcove us mean to monetize, and of growing where am the faster now of primary to history aspects trends Streaming and the amounts confident it. other profitable organization, future. for months larger, streaming employees. a media perspective, true industry has great say a and I The this opportunity. that services use too. is and I'm I organizations, very media of and company. and at all ahead is video business point in their moved can are and every become of ensure become has All for winners go-to-market in securely years completely future as just great incredible and array ahead. a be solutions, am to from Almost for but talent to and sell in stores this video the like platform so in the every aligned when world excited is with power broad delivering a it's people leading market. our companies in consumers we its needs transformed. insight. enterprises And streaming. The with audiences. will Every product focus information and the entertainment journey proven not massive I and and team, thrilled enterprises much can Brightcove a products engage for We We Brightcove company. now one world expect

who guidance. I'd guidance keeping $X.X $XX.X the had of shift of to for our team financial chose was our current my eye the is their performance quarter. gives see is capability Revenue I Adjusted gears of that Brightcove we And of believe sense hopefully and our With on capacity I exceeding real business. quarter. the million, during a as company time that, background, That Brightcove was to EBITDA the you expectations above I take the to join so. it. ahead transition. absolutely of the to this of from I potential long-term for My share thank We that, a growth. meaningful $XX.X I also ball why some do and not high-end high-end of priority will to indicative am, I additional where the QX. the So CEO With returning like let's said million. first highlights this believe has the and solid million,

top helped for by retail revenue, powered of over you global I publishers major earlier, customer base brands impressive in leading from some customer to Fortune numerous the event just video worldwide, of give give to is agreements, I forgive always to sports customer and powers digital joined incredible that the certain the verticals. To able of companies for to As serve to for broadcasters to in Asia live names. concerts our the the and mentioned a not and XX than of of and media Three that amazing What list We China context enterprises e-commerce broad of top Brightcove leading largest to XX% XXXX. base. million specific one due stream major reasons range is, we're and the me the automotive how retailers. events viewers. the our distributors golf this companies of two of top years, companies from we from plenty of concurrent as reaching Japan five platforms see one venture-backed in one athletes well. grow. platform, customers sporting world video Pacific, edutainment past brands also largest in a tournaments leading improvement we a from you And two stream have this some the the one has is room And Brightcove the luxury home largest of around showcase U.S. the more

to from new attendees Southwest delighted of let’s QX. they service streaming customers is needed So in energy iOS, scalable across Zealand New Apple platform issues engage and successful mix software to Japan XXXX, to XXXX, delivered in our place. its confidence talk its cover after Yamaha and worldwide streamline audiences leverage fantastic to reliable, HubSpot experience they Marketing will hybrid Brightcove world of scale workflows, now expansion global dealing this to helped SKY in security TV, previously. and After And a including deliver Android used hybrid privacy Brightcove of actionable enabling and security latest its experience markets. device we deliver wins Brightcove secure reach viewer their technology, to provider virtual the event viewer highlight Supplier wins efficient audiences access can to having pure South leveraging Danfoss about. by customer to with playback TV, brands viewers series new Music Roku. base geographical insights and event reach a provide Brightcove platforms from grows some business to the as in expanded continue it numerous the in Television content I turned while as moved I’m an and with solutions from well. with its and to Fire longtime and Network TV, and around content exceptional

the Honoree and has One we by a leveraging of PLAY ITV International Being operate. a our Apple behind And body is Digital seeing and to composed team this the that Sling, TV in last the few won is plus, excited in of category significant technology of and service. for was innovators highlights it’s solution you we in of us recognized highlight PLAY proud us plus, to achievement Webby for the TV. Brightcove achievement first experts Apps PLAY an to add own Brightcove this definitely my the and I’m TV. the for weeks likes Emmys a Arts Brightcove. the and Sciences by powering Academy OTT also XXXX other which TV, this tech in Corp Thank recognition as X,XXX named technology how category over I’m among judging Honoree to industry Disney best TV for Webby to year. this at and two Software been

its be especially juncture streaming in reiterate this how Before want company. excited in our it I There true broadest hand off I better application, I at exciting is am brands, be Thank industry. I’ll streaming individuals a to capture own A to distributed Rob, to leader decentralized leading video time this video in platform, no to especially numbers and be for to creators With that, back the the you through you. I’ll turn over and companies, looking now for Q&A. walk futures. their it to to Rob

Rob Noreck

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

supplemental to share range quarterly to the which to rate we’ll XX%, me target the investor in turn now is from metrics XX% XX%, XX% on basis. ranged Recurring Let to which in was quarter dollar XX% retention we retention retention a since quarter of quarter on and the this revenue net of in notice. XXXX the XXs. continue Based the beginning mid first to XXXX fourth of low feedback, provide our of in fourth the XXX%. metric has revenue Net until was quarter further compares XXXX, within

in we over over to improvements We renewals make continue business, expect will XXX% time. be that this consistently our as metric

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

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

down the to was due onetime Japan last ARPU impact events Our QX. of year-over-year in

up ARPU our we’re Excluding and XXXX $XX,XXX, these events, quarter year-over-year. first X% was

GAAP our basis. Looking at on a results

$X $XX.X was quarter. share loss per the million, profit for was gross and $X.XX loss operating million was Our net

Turning non-GAAP results. our to

EBITDA million quarter per million first outstanding the the shares end $X.XX share average net was in Adjusted of based This of million income and shares ago average quarter. the margin $X.XX to of high year million weighted guidance weighted period outstanding. EBITDA on Non-GAAP $X.X compares share our XX.X $X.X ago XXXX. period. gross in quarter first Our on diluted approximately of XXXX. in non-GAAP above represented million in million our the $XX with the the and a compared income XX.X net first year the per in to the was of XX%, income year quarter revenue XXXX. Non-GAAP first gross in in represented the period, compared $X.X a consistent margin in from first first margin in to of XX% million quarter $XX.X $X.X operations compared was quarter of in total gross and to support to gross XX% the a profit generated million, quarter and margin ago XX% compared the was Subscription was range. revenue quarter XX% Adjusted the

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

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

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

we of of couple There million. full now to things to are year, a the $X cash mind $XX free For million are guidance. about our targeting flow keep in

To that the foreign in of for despite full year guidance and subscription in rates. in updated for now to up coming for strategic solid outlook notable value guidance up, working million quarter of a XXXX, plans Also the Japanese has million below day. growth proportion as our the of in subscription $X.X in share our solutions million. respectively. expect you First, expectations process higher range, our customers headwind year our X% Brightcove increased delivered represent to show our us subscription and quarter raise comments, business wrap of of notably results to movements revenue prior year the the from long-term our revenue exchange Marc that plans. finally, on the QX every We’ll our And outlook $XXX,XXX yen revenue the by approximately services $X.X bookings from million strength long-term first his on X%. revenue enabled is in a any sales of midpoint are revenue This quarter. due $X share first first midpoint professional of impact with mentioned our Most the $X.X our the the we at subscription our QX. We provided this when we

revenue generate begin progress making on a our goals now We that, value we we’ll that meaningful questions. to blend take can Q&A. are for can and margin growth your shareholders. Operator, over are time strategic that expansion consistent we substantial With of deliver ready

Operator

will with [Operator question proceed you. Lake at gentlemen, Martinuzzi of and Street a with line the conducting from Please first we time, Ladies Eric comes Capital. Thank Instructions] session. question-and-answer Our this your question. be

Eric Martinuzzi

call far of on welcome, the more Is strategic I your as as situation. curious kind when a the and table hear current and voice M&A? the on sort of aboard Thanks as all Marc. can know talking a be operations of the of is on different as be forward what's characterize to And to of from turnaround on about go Are that the table? Brightcove this focus question. does avenues your just it the to looking going operations coming full-fledged In – to that, focus strategic strategy now. would type are good six or advance current versus do that Definitely now about – that you'll a is refining months plan. – things to There the the they're go number I really things I'm divestitures, down person want what areas is

Marc DeBevoise

the the and Well, technology, call. define then incredible that talk employee I my thanks, I market incredible as the in And and continuing media more joined because to both say, in I well the them evolving Brightcove and think strength towards customers talented view towards. today. incredible where market as the is that existing this you enterprise And to of meet broadly. the on streaming would would especially market, is customer base, as growth base and It's company first great Eric. you the frankly, and of on foremost,

as opportunity said, table. based. And And pretty rather user off those, is me things society taking path I about call let's there's more more tremendous leads is you than in table both And them, leaving very how markets that things see going are end how on so that of, I'm the optimistic broad of of the where And down the sort I is the and quickly. think a permeate going figure just it continue headed. to think generally. to opportunity I capture to of what of growth our And to in go out capture streaming more we're

And strategy so, say that the dictate I'll the last one is the tactics. will really

really are make say on is strategy. will it places we spend we and all you the it lay and So out on I going where the up end our achieve table, to that that M&A, the in And tactics to we strategic energy going. towards focus table, are think difference left outlook the time how depends where with and that

Eric Martinuzzi

if of meet you number Okay. had And what have And chance a a a of to to with here, job your I have on meet observations the days any them? realize but significant you're had with only you customers? are XX chance

Marc DeBevoise

business we're Yes. it I not more, I I again, with more day total And wish days, days. even but a it's day. met was think XX few. by gaining XX

got come to chance me, customers a find the we've too. So give to

really based and goals what I we customers gotten and types markets incredibly for of the them thousands efficiency the of into customers product broad market So we achieve it give many and we these love having us absolutely does talked response can which from far. think, I the customers enable of their and I've mean I strong. to the insight do mean in really grow. that's the been with I great unique say all end our have how approach, great. to so them the would is I customers

So a have I'm reach well. very we that and excited basis, given them global to them global that meet more as on more of of

Eric Martinuzzi

Okay. direct be the going members adding And – just reports, to some then your team? to you any significant are

Marc DeBevoise

of still talent the impressed I'd I have really with Well, been company. the say it's early.

the across this are we hiring add in – where board. are there there point. I'd we're say think the at more across trying areas I talent are to company

And to roles purely may total. the not the to types direct, need take need it team company change so, the over and more but we of focused in the on dictate strategy where in to my I'm think again we of I will or really add And time.

as view I with really think of we give again, will been market excited us come impressed I've through. So bit it really talent. more that combining with sort I my already. think of the on was to little come But a go, that on And that the I you time company, I if think the can get about where aren't things and we're you some out going point

Eric Martinuzzi

in you then February. seemed for anything $X.X in I acquisition there is as could – Wicket had guess quarter And you of Okay. out The I a the usage one the burn point cash is more Labs to time? little in But understand million than be this Rob. bit higher the that maybe I was expecting.

Rob Noreck

Yes.

another of the then which in cash the was building had thing you the going had of out are February, acquisition we went the – out on door. office. million, that new And $X.X we So was obviously million you Wicket in had $XX.X that a

expect of vendors that out cash paid a is that's we another prepayments went commissions some getting reimbursements cash first QX million that the from typically of is with and So that, in door that to in than landlord QX Other that. about we the happened things $X QX recover burn annual quarter. the some quarter. year full like significant to pretty When our getting do we that out, in have paid out, look bonuses at

anyway. the million we see free as year, to a cash cash lower tends we And be for to what reiterate, $X expect just which flow it is in guided So the $XX typically first quarter quarter to do million a to well. flow

Eric Martinuzzi

of understand structure, the expect had kind And cost QX, but QX? then I two for can Right. what months of at I Wicket in we Okay. if look only we for OpEx

Rob Noreck

Yes. to making the in investments roles Marc said, across yard. headcount fill organization and OpEx across as QX, the Overall, in looking we’re

it but will goes be the So it’s material as not going picking to movements, year be on. up

Eric Martinuzzi

thanks luck, Okay. Marc. my All Well, right. taking And good question. for

Marc DeBevoise

that. you. Thank Appreciate

Operator

of comes Our Markets. line Capital Latimore from next with with your Mike question Northland question. proceed the Please

Mike Latimore

you. Marc. Great. to Thank Nice meet Yes. you,

Marc DeBevoise

Mike. too, You

Mike Latimore

technologies, – more So a media in historically, like there buckets? bit strategy more a do be is feels different versus on any a your think your guess, what don’t different on you variability maybe to versus little it Do media had on them Just side that. you about have significantly thoughts And little guess you to don’t business how media their the here? don’t has curious it media going seems in enterprise? I Brightcove background I than versus separately, thought the enterprise. think two need, like. but know, separate I those enterprise, enterprise I know, to is about

Marc DeBevoise

be – of first, Thanks. yes. a first the I’ll last the question. great technology, on Well, all, it’s take That’d great part

lot strong, technology for is platform have number over On the it the – is I can side, would on I the core great Internet. incredible, And used with decade. that’s to well. incredibly customer a know platform the effectively out the there that that the the incredibly know product decade part I so diligence say a was handle of the about and strong. remember, a did last is I And folks ago, platform anything a And that is of I date

I very I’m that of – So job technology strength. partially because took this

very I gone in a we’ve, that with into solution different for And well. users I long are working different the solutions works enterprise the we’ve think end markets. now for end that we the different in solutions of well. some the media side think provide are been specific very, And time, side

to solutions iteration right? always that have for solutions users technology And the evolving, longest we’re I and a I of the to users building forever evolve be about I delivering doing. type think those our end those continue over are going to for development software that That’s continually about end and past. are and going in appreciate that that like you’re term,

way. but So of platform principles. differently, core but we on similar, those same many a be I the to focus. are right. think, and what to strategies and a play primary go-to-market they media we a go-to-market I users focus specific same the differently, about that have teams, the winner those differences other limited don’t in company. part and lastly, the want It’s very or and sure – of make do then, say are bases. And that to I talent And market not And solutions one those technology very that is think based different a streaming it’s to that’s a the and little we overall. where that those that are market about I’d say unique they’re really each is product And is It customer end and markets. strong think the in out, I of enterprise think streaming do the And the we

Mike Latimore

that a customer, And Brightcove like periodically, would yes. guess you from would you do that and and it does how prevent Yes, then, ability have think ramp really technology. happening? to seem I strong it they media then in-source would dynamic the about

Marc DeBevoise

looked I customer Look, been retention And say. you I’m past on and on over the you. the side and the improvements sure. them think let’s we’ve been department investments real think year, numbers, they’ve hear we’ve success at made at I’ve looked made incredible the well, our all noticeable, those noticeable sides Yes, business. I of in as customer the I and there have and strides

I’m of for team. very the that proud So

job done they’ve a think I great there.

said, to would do and market, I we’re that in happened are going make that customers right. have is simply point second the have go in the unique that I there is changing it effectively out past think The ourselves, there where things gone

You’re they than technology can that their problems opportunities those to have a to, us as you solve who out said, technology potential folks rather to unique for place the see like come view that a graduate find of. going

they think see had do certain across actually certain was think ago, vendor And a I decided my getting that really our the efficient because to to own and intelligence more ad their on decade going look server start at in I that tremendous saturation I I type forward you it decade and better be how opportunity than be in that’s to to the a the markets could for at it. may a was potential, delivering I and Brightcove graduate streaming you they company see serving into it ago, market going opportunity. as find right. ad I at to actually I of with a technology. look getting think similarly companies do levels

Mike Latimore

revenue management And Got think you do then, sense. I it. that? out thoughts XX here any of sort the growth, going strategy? flow? incentives, as Makes this out cash be the goals initial that may tied or, with feel sort your rule like Like mean, to come you some but does don’t strategy Or update, about know, of I with to metric, of on it’s come

Marc DeBevoise

that the a you stock will properly term. that my and undervalued can don’t going for the tied us then strategy a think big we come think be to today. longer for us I valued I believe certainly out – of all company deal’s very price, that’s expectations in properly am think get they and value I the incentive, to to be exceed effectively that certainly, have to so increase I valued what it’s that over time. the

there’s I that’s and for for and employees this, has incredible as myself of the very believe in think And I stock other think, opportunity check double every and here, think them. I the I employee, a big I’ll company. upside shares all both

go. lay as of cash think As we and we it talking sort further incentives the about strategy I comes the be to where a that employees, certain may our of for we’ll percentage out

Mike Latimore

Okay. Thanks luck. Good a lot.

Marc DeBevoise

you. Thank

Operator

hand back like There are call remarks. to no to further the management questions. for I’d closing

Marc DeBevoise

an to I in just this to I participants am want Thank you, Again, as leading at to how and say we opportunity this you well. amazing believe company thank frankly, excited of I operator. time with be our want And truly our to And ahead I look more industry. future. customers sharing step us. forward our have the we incredible as into we

today, soon. talk for and thanks we’ll So

Operator

for Ladies this teleconference. you and today's conclude your does participation. gentlemen, Thank

disconnect a wonderful your You and day. lines time may this have at

Brightcove (BCOV) 28 Apr 222022 Q1 Earnings call transcript