10-Q

Large accelerated filer

Accelerated filer

Non-accelerated
filer

☐ (Do not check if a smaller reporting company)

Smaller reporting company

Emerging growth company

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM

10-Q

(Mark One)

☒	Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended June 30, 2021

☐	Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from to

Commission File Number:

001-35429

BRIGHTCOVE INC.

(Exact name of registrant as specified in its charter)


Delaware		20-1579162
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

290 Congress Street

Boston, MA 02210

(Address of principal executive offices)

(888)

882-1880

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.001 per share	BCOV	The NASDAQ Global Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation

S-T

(§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a

non-accelerated

filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule

12b-2

of the Exchange Act.

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule

12b-2

of the Exchange Act). Yes ☐ No ☒

As of July 22, 2021 there were 40,812,422 shares of the registrant’s common stock, $0.001 par value per share, outstanding.

Table of Contents

BRIGHTCOVE INC.

Table of Contents


	Page

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements (Unaudited) Condensed Consolidated Balance Sheets as of June 30, 2021 and December 31, 2020		4

Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2021 and 2020		5

Condensed Consolidated Statements of Comprehensive Income (Loss) for the three and six months ended June 30, 2021 and 2020		6

Condensed Consolidated Statements of Stockholders’ Equity for the three months ended June 30, 2021 and 2020		7

Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2021 and 2020		8

Notes to Condensed Consolidated Financial Statements		9

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations		15

Item 3. Quantitative and Qualitative Disclosures About Market Risk		28

Item 4. Controls and Procedures		30

PART II. OTHER INFORMATION		30

Item 1. Legal Proceedings		30

Item 1A. Risk Factors		30

Item 5. Other Information		31

Item 6. Exhibits		32

Signatures		33

Table of Contents

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form

10-Q

contains “forward-looking statements” that involve risks and uncertainties, as well as assumptions that, if they never materialize or prove incorrect, could cause our results to differ materially from those expressed or implied by such forward-looking statements. The statements contained in this Quarterly Report on Form

10-Q

that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, or Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or Exchange Act. Such forward-looking statements include any expectation of earnings, revenue or other financial items; any statements of the plans, strategies and objectives of management for future operations; factors that may affect our operating results; statements related to adding employees; statements related to potential benefits of acquisitions; statements related to future capital expenditures; statements related to future economic conditions or performance; statements as to industry trends and other matters that do not relate strictly to historical facts or statements of assumptions underlying any of the foregoing. Forward-looking statements are often identified by the use of words such as, but not limited to, “anticipate,” “believe,” “can,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “will,” “plan,” “project,” “seek,” “should,” “target,” “will,” “would,” and similar expressions or variations intended to identify forward-looking statements. These statements are based on the beliefs and assumptions of our management based on information currently available to management. Such forward-looking statements are subject to risks, uncertainties and other important factors that could cause actual results and the timing of certain events to differ materially from future results expressed or implied by such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those identified below, and those discussed in the section titled “Risk Factors” included in Item 1A of Part I of this Quarterly Report on Form

10-Q,

and the risks discussed in our other Securities and Exchange Commission, or SEC, filings. Furthermore, such forward-looking statements speak only as of the date of this report. Except as required by law, we undertake no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements. Forward-looking statements in this Quarterly Report on Form

10-Q

may include statements about:

•

our ability to achieve profitability;

•

our competitive position and the effect of competition in our industry;

•

our ability to retain and attract new customers;

•

our ability to penetrate existing markets and develop new markets for our services;

•

our ability to retain or hire qualified accounting and other personnel;

•

our ability to successfully integrate acquired businesses;

•

our ability to protect our intellectual property and operate our business without infringing upon the intellectual property rights of others;

•

our ability to maintain the security and reliability of our systems;

•

our estimates with regard to our future performance and total potential market opportunity;

•

our estimates regarding our anticipated results of operations, future revenue, bookings growth, capital requirements and our needs for additional financing; and

•

our goals and strategies, including those related to revenue and bookings growth.

Table of Contents

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

Brightcove Inc.

Condensed Consolidated Balance Sheets

(unaudited)


	June 30, 2021			December 31, 2020
	(in thousands, except share and per share data)
Assets
Current assets:

Cash and cash equivalents	$	40,387		$	37,472
Accounts receivable, net of allowance of $738 and $648 at June 30, 2021 and December 31, 2020, respectively		31,445			29,305
Prepaid expenses		9,563			5,760
Other current assets		11,483			12,978

Total current assets		92,878			85,515
Property and equipment, net		17,460			15,968
Operating lease right-of-use asset		6,749			8,699
Intangible assets, net		8,956			10,465
Goodwill		60,902			60,902
Other assets		6,236			5,254
Total assets	$	193,181		$	186,803

Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	11,001		$	10,456
Accrued expenses		20,779			25,397
Operating lease liability		2,734			4,346
Deferred revenue		62,433			58,741

Total current liabilities		96,947			98,940
Operating lease liability, net of current portion		4,200			5,498
Other liabilities		889			2,763

Total liabilities	$	102,036			107,201
Commitments and contingencies (Note 8)
Stockholders’ equity:
Undesignated preferred stock, $0.001 par value; 5,000,000 shares authorized; no shares issued		—			—
Common stock, $0.001 par value; 100,000,000 shares authorized; 40,946,572 and 40,152,021 shares issued at June 30, 2021 and December 31, 2020, respectively		41			40
Additional paid-in capital		292,775			287,059
Treasury stock, at cost; 135,000 shares		(871	)		(871	)
Accumulated other comprehensive loss		(362	)		(188	)
Accumulated deficit		(200,438	)		(206,438	)

Total stockholders’ equity		91,145			79,602

Total liabilities and stockholders’ equity	$	193,181		$	186,803

The accompanying notes are an integral part of these condensed consolidated financial statements.

Table of Contents

Brightcove Inc.

Condensed Consolidated Statements of Operations

(unaudited)


	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
	(in thousands, except share and per share data)
Revenue:

Subscription and support revenue	$	48,602	$	45,617	$	99,441	$	90,275
Professional services and other revenue		2,870		2,309		6,848		4,304

Total revenue		51,472		47,926		106,289		94,579
Cost of revenue:
Cost of subscription and support revenue		14,756		17,807		30,434		34,555
Cost of professional services and other revenue		2,468		2,092		5,958		3,986

Total cost of revenue		17,224		19,899		36,392		38,541

Gross profit		34,248		28,027		69,897		56,038
Operating expenses:
Research and development		7,855		9,131

SEC Form 10-Q filed by Brightcove Inc.