Revenue during the quarter grew 9.93 percent to $38.62 million from $35.14 million in the previous year period. Gross margin for the quarter contracted 612 basis points over the previous year period to 60.25 percent. Operating margin for the quarter stood at negative 9.54 percent as compared to a negative 0.61 percent for the previous year period.

Operating loss for the quarter was $3.68 million, compared with an operating loss of $0.21 million in the previous year period.

However, the adjusted operating loss for the quarter stood at $0.31 million compared to operating profit of $2.31 million in prior year period.

"Brightcove reported solid fourth quarter financial results that capped a very strong year for the company," said David Mendels, Chief Executive Officer of Brightcove. "The momentum we are seeing across our business drove a number of important milestones for our company in 2016, including the return to double-digit revenue growth, 15% bookings growth for the year, the signing of multiple seven-figure, multi-year media wins and strong performance in our digital marketing and enterprise group, marked by an impressive fourth quarter performance. In addition, we delivered on a number of exciting product innovations like Dynamic Delivery and Brightcove Social."

For financial year 2017, Brightcove Inc. forecasts revenue to be in the range of $163 million to $167 million. The company forecasts adjusted operating income to be in the range of $3.50 million to $6 million. It expects diluted earnings per share to be in the range of $0.07 to $0.14 on adjusted basis.

For the first-quarter, Brightcove Inc. forecasts revenue to be in the range of $37.25 million to $38 million. The company forecasts adjusted operating loss to be in the range of $1 million to $1.50 million. On an adjusted basis, the company expects diluted loss per share to be in the range of $0.03 to $0.05. 

Operating cash flow improves
Brightcove Inc. has generated cash of $11.08 million from operating activities during the year, up 21.98 percent or $2 million, when compared with the last year.

The company has spent $5.29 million cash to meet investing activities during the year as against cash outgo of $2.85 million in the last year.

Cash flow from financing activities was $3.63 million for the year as against cash outgo of $1.41 million in the last year period.

Cash and cash equivalents stood at $36.81 million as on Dec. 31, 2016, up 33.20 percent or $9.18 million from $27.64 million on Dec. 31, 2015.

Working capital increases
Brightcove Inc. has recorded an increase in the working capital over the last year. It stood at $7.79 million as at Dec. 31, 2016, up 18.20 percent or $1.20 million from $6.59 million on Dec. 31, 2015. Current ratio was at 1.14 as on Dec. 31, 2016, down from 1.14 on Dec. 31, 2015.

Days sales outstanding went down to 26 days for the quarter compared with 28 days for the same period last year.

At the same time, days payable outstanding went up to 16 days for the quarter from 13 for the same period last year.