Brightcove Inc (BCOV) saw its loss widen to $1.62 million, or $0.05 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $1.28 million, or $0.04 a share. On the other hand, adjusted net income for the quarter stood at $0.85 million, or $0.02 a share compared with $1.08 million or $0.03 a share, a year ago. Revenue during the quarter grew 13.45 percent to $38.39 million from $33.84 million in the previous year period. Gross margin for the quarter contracted 187 basis points over the previous year period to 64.11 percent. Operating margin for the quarter stood at negative 4.04 percent as compared to a negative 3.03 percent for the previous year period.
Operating loss for the quarter was $1.55 million, compared with an operating loss of $1.02 million in the previous year period.
However, the adjusted operating income for the quarter stood at $0.91 million compared to $1.33 million in the prior year period. At the same time, adjusted operating margin contracted 156 basis points in the quarter to 2.38 percent from 3.94 percent in the last year period.
“Brightcove delivered solid third quarter results that met or exceeded our expectations from both a revenue and profitability perspective,” said David Mendels, chief executive officer of Brightcove. “We continue to make good progress against our go-to-market strategy in both our digital marketing and media segments, which is driving our improved business performance.”
For the fourth-quarter, Brightcove expects revenue to be in the range of $38.50 million to $39 million. Brightcove expects revenue to be in the range of $150.10 million to $150.60 million for financial year 2016. The company expects adjusted operating income to be in the range of $1 million to $1.50 million for the fourth-quarter. For fiscal year 2016, the company expects adjusted operating income to be in the range of $2.30 million to $2.80 million. On an adjusted basis, the company projects diluted earnings per share to be in the range of $0.02 to $0.03 for the fourth-quarter. For financial year 2016, the company projects diluted earnings per share to be in the range of $0.05 to $0.06 on adjusted basis.
Operating cash flow improves significantly
Brightcove Inc has generated cash of $7.63 million from operating activities during the nine month period, up 79.55 percent or $3.38 million, when compared with the last year period. The company has spent $4.43 million cash to meet investing activities during the nine month period as against cash outgo of $3.50 million in the last year period.
Cash flow from financing activities was $3.90 million for the nine month period, up 2,279.27 percent or $3.74 million, when compared with the last year period.
Cash and cash equivalents stood at $35.19 million as on Sep. 30, 2016, up 47.94 percent or $11.40 million from $23.79 million on Sep. 30, 2015.
Working capital increases sharply
Brightcove Inc has recorded an increase in the working capital over the last year. It stood at $10.07 million as at Sep. 30, 2016, up 188.08 percent or $6.58 million from $3.50 million on Sep. 30, 2015. Current ratio was at 1.19 as on Sep. 30, 2016, up from 1.08 on Sep. 30, 2015.
Days sales outstanding went down to 50 days for the quarter compared with 53 days for the same period last year.
At the same time, days payable outstanding was almost stable at 22 days for the quarter, when compared with the previous year period.
Debt comes down significantly
Brightcove Inc has recorded a decline in total debt over the last one year. It stood at $0.86 million as on Sep. 30, 2016, down 47.29 percent or $0.77 million from $1.62 million on Sep. 30, 2015. Brightcove has recorded a decline in short-term debt over the last one year. It stood at $0.86 million as on Sep. 30, 2016, down 47.29 percent or $0.77 million from $1.62 million on Sep. 30, 2015. Total debt was 0.62 percent of total assets as on Sep. 30, 2016, compared with 1.29 percent on Sep. 30, 2015. Debt to equity ratio was at 0.01 as on Sep. 30, 2016, down from 0.02 as on Sep. 30, 2015.
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