☒ | Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
☐ | Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
Title of each class | TradingSymbol(s) | Name of each exchangeon which registered | ||
Common Stock, par value $0.001 per share | BCOV | The NASDAQ Global Market |
Large accelerated filer | ☐ | Accelerated filer | ☒ | |||||||
Non-accelerated filer | ☐ (Do not check if a smaller reporting company) | Smaller reporting company | ☐ | |||||||
Emerging growth company | ☐ |
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our ability to achieve profitability;
• | 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, including the online video platform assets of Ooyala, Inc. and certain of its subsidiaries that we acquired during 2019; |
• | 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 expectations regarding the potential impact of the COVID-19 pandemic on our business, operations, and the markets in which we and our partners and customers operate; |
• | 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. |
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, including the online video platform assets of Ooyala, Inc. and certain of its subsidiaries that we acquired during 2019;
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 expectations regarding the potential impact of theCOVID-19 pandemic on our business, operations, and the markets in which we and our partners and customers operate;
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.
(in thousands, except share and per share data) Assets Current assets: Cash and cash equivalents Accounts receivable, net of allowance of $693 and $904 at March 31, 2020 and December 31, 2019, respectively Prepaid expenses Other current assets Total current assets Property and equipment, net Operating leaseright-of-use asset Intangible assets, net Goodwill Other assets Total assets Liabilities and stockholders’ equity Current liabilities: Accounts payable Accrued expenses Operating lease liability Deferred revenue Total current liabilities Operating lease liability, net of current portion Debt Other liabilities Total liabilities Commitments and contingencies(Note 10) 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; 39,105,853 and 39,042,787 shares issued at March 31, 2020 and December 31, 2019, respectively Additionalpaid-in capital Treasury stock, at cost; 135,000 shares Accumulated other comprehensive loss Accumulated deficit Total stockholders’ equity Total liabilities and stockholders’ equity March 31, 2020 December 31, 2019 $ 32,089 $ 22,759 27,334 31,181 7,565 5,171 7,311 6,713 74,299 65,824 13,383 12,086 14,900 16,912 12,903 13,875 60,902 60,902 2,984 3,268 $ 179,371 $ 172,867 $ 12,428 $ 9,917 19,661 20,925 5,875 6,174 52,356 49,260 90,320 86,276 9,953 11,701 10,000 — 538 767 110,811 98,744 — — 39 39 279,114 276,365 (871 ) (871 ) (1,244 ) (785 ) (208,478 ) (200,625 ) 68,560 74,123 $ 179,371 $ 172,867 $ $ $ $ $ $ ) ) ) ) ) ) $ $
Three Months Ended March 31, | ||||||||
2020 | 2019 | |||||||
(in thousands, except share and per share data) | ||||||||
Revenue: | ||||||||
Subscription and support revenue | $ | 44,658 | $ | 38,877 | ||||
Professional services and other revenue | 1,995 | 2,959 | ||||||
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Total revenue | 46,653 | 41,836 | ||||||
Cost of revenue: | ||||||||
Cost of subscription and support revenue | 16,748 | 14,170 | ||||||
Cost of professional services and other revenue | 1,894 | 2,576 | ||||||
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Total cost of revenue | 18,642 | 16,746 | ||||||
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Gross profit | 28,011 | 25,090 | ||||||
Operating expenses: | ||||||||
Research and development | 8,853 | 7,394 | ||||||
Sales and marketing | 14,174 | 14,256 | ||||||
General and administrative | 6,532 | 5,261 | ||||||
Merger-related | 5,509 | 2,932 | ||||||
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Total operating expenses | 35,068 | 29,843 | ||||||
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Loss from operations | (7,057 | ) | (4,753 | ) | ||||
Other income (expense), net | (468 | ) | (55 | ) | ||||
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Loss before income taxes | (7,525 | ) | (4,808 | ) | ||||
Provision for income taxes | 328 | 175 | ||||||
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Net loss | $ | (7,853 | ) | $ | (4,983 | ) | ||
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Net loss per share - basic and diluted | $ | (0.20 | ) | $ | (0.14 | ) | ||
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Weighted-average number of common shares used in computing net loss per share | 38,981,140 | 36,677,046 | ||||||
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Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
(in thousands, except share and per share data) | ||||||||||||||||
Revenue: | ||||||||||||||||
Subscription and support revenue | $ | 45,617 | $ | 44,891 | $ | 90,275 | $ | 83,768 | ||||||||
Professional services and other revenue | 2,309 | 2,691 | $ | 4,304 | 5,650 | |||||||||||
Total revenue | 47,926 | 47,582 | 94,579 | 89,418 | ||||||||||||
Cost of revenue: | ||||||||||||||||
Cost of subscription and support revenue | 17,807 | 19,381 | 34,555 | 33,551 | ||||||||||||
Cost of professional services and other revenue | 2,092 | 2,228 | 3,986 | 4,804 | ||||||||||||
Total cost of revenue | 19,899 | 21,609 | 38,541 | 38,355 | ||||||||||||
Gross profit | 28,027 | 25,973 | 56,038 | 51,063 | ||||||||||||
Operating expenses: | ||||||||||||||||
Research and development | 9,131 | 7,629 | 17,984 | 15,023 | ||||||||||||
Sales and marketing | 13,383 | 16,827 | 27,557 | 31,083 | ||||||||||||
General and administrative | 6,407 | 5,979 | 12,939 | 11,240 | ||||||||||||
Merger-related | 259 | 2,620 | 5,768 | 5,552 | ||||||||||||
Total operating expenses | 29,180 | 33,055 | 64,248 | 62,898 | ||||||||||||
Loss from operations | (1,153 | ) | (7,082 | ) | (8,210 | ) | (11,835 | ) | ||||||||
Other (expense) income, net | (27 | ) | 19 | (495 | ) | (36 | ) | |||||||||
Loss before income taxes | (1,180 | ) | (7,063 | ) | (8,705 | ) | (11,871 | ) | ||||||||
Provision for income taxes | 115 | 175 | 443 | 350 | ||||||||||||
Net loss | $ | (1,295 | ) | $ | (7,238 | ) | $ | (9,148 | ) | $ | (12,221 | ) | ||||
Net loss per share - basic and diluted | $ | (0.03 | ) | $ | (0.19 | ) | $ | (0.23 | ) | $ | (0.33 | ) | ||||
Weighted-average number of common shares used in computing net loss per share | 39,291,649 | 37,966,207 | 39,136,394 | 37,322,646 | ||||||||||||
Three Months Ended March 31, | ||||||||
2020 | 2019 | |||||||
(in thousands) | ||||||||
Net loss | $ | (7,853 | ) | $ | (4,983 | ) | ||
Other comprehensive income: | ||||||||
Foreign currency translation adjustments | (459 | ) | 21 | |||||
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Comprehensive loss | $ | (8,312 | ) | $ | (4,962 | ) | ||
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Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
(in thousands) | ||||||||||||||||
Net loss | $ | (1,295 | ) | $ | (7,238 | ) | $ | (9,148 | ) | $ | (12,221 | ) | ||||
Other comprehensive income: | ||||||||||||||||
Foreign currency translation adjustments | 158 | 39 | ( 301 | ) | 60 | |||||||||||
Comprehensive loss | $ | (1,137 | ) | $ | (7,199 | ) | $ | (9,449 | ) | $ | (12,161 | ) | ||||
Three Months Ended March 31, | ||||||||
2020 | 2019 | |||||||
(in thousands, except share data) | ||||||||
Shares of common stock issued | ||||||||
Balance, beginning of period | 39,042,787 | 36,752,469 | ||||||
Issuance of common stock upon exercise of stock options and pursuant to restricted stock units | 63,066 | 155,582 | ||||||
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Balance, end of period | 39,105,853 | 36,908,051 | ||||||
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Shares of treasury stock | ||||||||
Balance, beginning of period | (135,000 | ) | (135,000 | ) | ||||
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Balance, end of period | (135,000 | ) | (135,000 | ) | ||||
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Par value of common stock issued | ||||||||
Balance, beginning of period | $ | 39 | $ | 37 | ||||
Issuance of common stock upon exercise of stock options and pursuant to restricted stock units | — | — | ||||||
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Balance, end of period | $ | 39 | $ | 37 | ||||
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Value of treasury stock | ||||||||
Balance, beginning of period | $ | (871 | ) | $ | (871 | ) | ||
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Balance, end of period | $ | (871 | ) | $ | (871 | ) | ||
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Additionalpaid-in capital | ||||||||
Balance, beginning of period | $ | 276,365 | $ | 251,122 | ||||
Issuance of common stock upon exercise of stock options and pursuant to restricted stock units | 36 | 625 | ||||||
Stock-based compensation expense | 2,713 | 1,497 | ||||||
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Balance, end of period | $ | 279,114 | $ | 253,244 | ||||
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Accumulated deficit | ||||||||
Balance, beginning of period | $ | (200,625 | ) | $ | (178,722 | ) | ||
Net loss | (7,853 | ) | (4,983 | ) | ||||
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Balance, end of period | $ | (208,478 | ) | $ | (183,705 | ) | ||
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Accumulated other comprehensive loss | ||||||||
Balance, beginning of period | $ | (785 | ) | $ | (952 | ) | ||
Foreign currency translation adjustment | (459 | ) | 21 | |||||
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Balance, end of period | $ | (1,244 | ) | $ | (931 | ) | ||
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Total stockholders’ equity | $ | 68,560 | $ | 67,774 | ||||
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Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
(in thousands, except share data) | ||||||||||||||||
Shares of common stock issued | ||||||||||||||||
Balance, beginning of period | 39,105,853 | 36,908,051 | 39,042,787 | 36,752,469 | ||||||||||||
Common stock issued upon acquisition | — | 1,056,763 | — | 1,056,763 | ||||||||||||
Issuance of common stock upon exercise of stock options and pursuant to restricted stock units | 438,138 | 255,029 | 501,204 | 410,611 | ||||||||||||
Balance, end of period | 39,543,991 | 38,219,843 | 39,543,991 | 38,219,843 | ||||||||||||
Shares of treasury stock | ||||||||||||||||
Balance, beginning of period | (135,000 | ) | (135,000 | ) | (135,000 | ) | (135,000 | ) | ||||||||
Balance, end of period | (135,000 | ) | (135,000 | ) | (135,000 | ) | (135,000 | ) | ||||||||
Par value of common stock issued | ||||||||||||||||
Balance, beginning of period | $ | 39 | $ | 37 | $ | 39 | $ | 37 | ||||||||
Common stock issued upon acquisition | — | 1 | — | 1 | ||||||||||||
Issuance of common stock upon exercise of stock options and pursuant to restricted stock units | — | — | — | — | ||||||||||||
Balance, end of period | $ | 39 | $ | 38 | $ | 39 | $ | 38 | ||||||||
Value of treasury stock | ||||||||||||||||
Balance, beginning of period | $ | (871 | ) | $ | (871 | ) | $ | (871 | ) | $ | (871 | ) | ||||
Balance, end of period | $ | (871 | ) | $ | (871 | ) | $ | (871 | ) | $ | (871 | ) | ||||
Additional paid-in capital | ||||||||||||||||
Balance, beginning of period | $ | 279,114 | $ | 253,244 | $ | 276,365 | $ | 251,122 | ||||||||
Common stock issued upon acquisition | — | 8,865 | — | 8,865 | ||||||||||||
Withholding tax on restricted stock units vesting | (396 | ) | — | (396 | ) | — | ||||||||||
Issuance of common stock upon exercise of stock options and pursuant to restricted stock units | 358 | 1,218 | 394 | 1,843 | ||||||||||||
Stock-based compensation expense | 2,179 | 1,438 | 4,892 | 2,935 | ||||||||||||
Balance, end of period | $ | 281,255 | $ | 264,765 | $ | 281,255 | $ | 264,765 | ||||||||
Accumulated deficit | ||||||||||||||||
Balance, beginning of period | $ | (208,478 | ) | $ | (183,705 | ) | $ | (200,625 | ) | $ | (178,722 | ) | ||||
Net loss | (1,295 | ) | (7,238 | ) | (9,148 | ) | (12,221 | ) | ||||||||
Balance, end of period | $ | (209,773 | ) | $ | (190,943 | ) | $ | (209,773 | ) | $ | (190,943 | ) | ||||
Accumulated other comprehensive loss | ||||||||||||||||
Balance, beginning of period | $ | (1,244 | ) | $ | (931 | ) | $ | (785 | ) | $ | (952 | ) | ||||
Foreign currency translation adjustment | 158 | 39 | (301 | ) | 60 | |||||||||||
Balance, end of period | $ | (1,086 | ) | $ | (892 | ) | $ | (1,086 | ) | $ | (892 | ) | ||||
Total stockholders’ equity | $ | 69,564 | $ | 72,097 | $ | 69,564 | $ | 72,097 | ||||||||
Three Months Ended March 31, | ||||||||
2020 | 2019 | |||||||
(in thousands) | ||||||||
Operating activities | ||||||||
Net loss | $ | (7,853 | ) | $ | (4,983 | ) | ||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 2,408 | 1,713 | ||||||
Stock-based compensation | 2,618 | 1,424 | ||||||
Provision for reserves on accounts receivable | 275 | 70 | ||||||
Changes in assets and liabilities: | ||||||||
Accounts receivable | 3,607 | (2,033 | ) | |||||
Prepaid expenses and other current assets | (1,843 | ) | (803 | ) | ||||
Other assets | 195 | 92 | ||||||
Accounts payable | 2,364 | 715 | ||||||
Accrued expenses | (2,264 | ) | 353 | |||||
Operating leases | (34 | ) | (68 | ) | ||||
Deferred revenue | 2,968 | 3,783 | ||||||
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Net cash provided by operating activities | 2,441 | 263 | ||||||
Investing activities | ||||||||
Purchases of property and equipment | (720 | ) | (244 | ) | ||||
Capitalizedinternal-use software costs | (1,973 | ) | (946 | ) | ||||
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Net cash used in investing activities | (2,693 | ) | (1,190 | ) | ||||
Financing activities | ||||||||
Proceeds from exercise of stock options | 36 | 625 | ||||||
Proceeds from debt | 10,000 | — | ||||||
Other financing activities | (26 | ) | (58 | ) | ||||
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Net cash provided by financing activities | 10,010 | 567 | ||||||
Effect of exchange rate changes on cash and cash equivalents | (428 | ) | 2 | |||||
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Net increase (decrease) in cash and cash equivalents | 9,330 | (358 | ) | |||||
Cash and cash equivalents at beginning of period | 22,759 | 29,306 | ||||||
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Cash and cash equivalents at end of period | $ | 32,089 | $ | 28,948 | ||||
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Supplemental disclosure of cash flow information | ||||||||
Cash paid for operating lease liabilities | $ | 1,824 | $ | 1,904 | ||||
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Six Months Ended June 30, | ||||||||
2020 | 2019 | |||||||
(in thousands) | ||||||||
Operating activities | ||||||||
Net loss | $ | (9,148 | ) | $ | (12,221 | ) | ||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||||||||
Depreciation and amortization | 4,357 | 3,934 | ||||||
Stock-based compensation | 4,716 | 2,783 | ||||||
Provision for reserves on accounts receivable | 401 | 253 | ||||||
Changes in assets and liabilities: | ||||||||
Accounts receivable | 4,055 | (7,688 | ) | |||||
Prepaid expenses and other current assets | (5,357 | ) | (1,892 | ) | ||||
Other assets | (300 | ) | (435 | ) | ||||
Accounts payable | 2,038 | 58 | ||||||
Accrued expenses | (577 | ) | 7,924 | |||||
Operating leases | 3 | (162 | ) | |||||
Deferred revenue | 5,112 | 3,565 | ||||||
Net cash provided by (used in) operating activities | 5,300 | (3,881 | ) | |||||
Investing activities | ||||||||
Purchases of property and equipment | (1,197 | ) | (401 | ) | ||||
Cash paid for acquisition, net of cash acquired | — | (3,300 | ) | |||||
Capitalized internal-use software costs | (3,839 | ) | (2,372 | ) | ||||
Net cash used in investing activities | (5,036 | ) | (6,073 | ) | ||||
Financing activities | ||||||||
Proceeds from exercise of stock options | 394 | 1,843 | ||||||
Proceeds from debt | 10,000 | — | ||||||
Debt paydown | (5,000 | ) | — | |||||
Other financing activities | (429 | ) | (117 | ) | ||||
Net cash provided by financing activities | 4,965 | 1,726 | ||||||
Effect of exchange rate changes on cash and cash equivalents | (235 | ) | 131 | |||||
Net increase (decrease) in cash and cash equivalents | 4,994 | (8,097 | ) | |||||
Cash and cash equivalents at beginning of period | 22,759 | 29,306 | ||||||
Cash and cash equivalents at end of period | $ | 27,753 | $ | 21,209 | ||||
Supplemental disclosure of non-cash investing activities | ||||||||
Fair value of shares issued for acquisition of a business | $ | — | $ | 8,866 | ||||
Supplemental disclosure of cash flow information | ||||||||
Cash paid for operating lease liabilities | $ | 3,561 | $ | 3,718 | ||||
Accounts Receivable, net | Contract Assets (current) | Deferred Revenue (current) | Deferred Revenue (non- current) | Total Deferred Revenue | ||||||||||||||||
Balance at December 31, 2019 | $ | 31,181 | $ | 1,871 | $ | 49,260 | $ | 299 | $ | 49,559 | ||||||||||
Balance at March 31, 2020 | 27,334 | 1,909 | 52,356 | 162 | 52,518 |
Accounts Receivable, net | Contract Assets (current) | Deferred Revenue (current) | Deferred Revenue (non-current) | Total Deferred Revenue | ||||||||||||||||
Balance at December 31, 2019 | $ | 31,181 | $ | 1,871 | $ | 49,260 | $ | 299 | $ | 49,559 | ||||||||||
Balance at June 30, 2020 | 26,794 | 2,017 | 54,647 | 92 | 54,739 |
respecti
The Company generally has not experienced any material losses related to receivables from individual customers, or groups of customers. The Company does not require collateral. Due to these factors, no additional credit risk beyond amounts provided for collection losses is believed by management to be probable in the Company’s accounts receivable.
March 31, 2020 | ||||||||||||||||
Description | Contracted Maturity | Cost | Fair Market Value | Balance Per Balance Sheet | ||||||||||||
Cash | Demand | $ | 32,048 | $ | 32,048 | $ | 32,048 | |||||||||
Money market funds | Demand | 41 | 41 | 41 | ||||||||||||
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Total cash and cash equivalents | $ | 32,089 | $ | 32,089 | $ | 32,089 | ||||||||||
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June 30, 2020 | ||||||||||||||||
Description | Contracted Maturity | Cost | Fair Market Value | Balance Per Balance Sheet | ||||||||||||
Cash | Demand | $ | 27,712 | $ | 27,712 | $ | 27,712 | |||||||||
Money market funds | Demand | 41 | 41 | 41 | ||||||||||||
Total cash and cash equivalents | $ | 27,753 | $ | 27,753 | $ | 27,753 | ||||||||||
December 31, 2019 | ||||||||||||||||
Description | Contracted Maturity | Cost | Fair Market Value | Balance Per Balance Sheet | ||||||||||||
Cash | Demand | $ | 22,718 | $ | 22,718 | $ | 22,718 | |||||||||
Money market funds | Demand | 41 | 41 | 41 | ||||||||||||
Total cash and cash equivalents | $ | 22,759 | $ | 22,759 | $ | 22,759 | ||||||||||
Three Months Ended March 31, | ||||||||
2020 | 2019 | |||||||
Options outstanding | 2,487 | 2,479 | ||||||
Restricted stock units outstanding | 3,726 | 3,626 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Options outstanding | 2,372 | 2,624 | 2,372 | 2,624 | ||||||||||||
Restricted stock units outstanding | 3,580 | 3,187 | 3,580 | 3,187 |
2019
Three Months Ended March 31, | ||||||||
2020 | 2019 | |||||||
Expected life in years | 6.2 | 6.3 | ||||||
Risk-free interest rate | 1.20 | % | 2.55 | % | ||||
Volatility | 44 | % | 43 | % | ||||
Dividend yield | — | — |
The Company recorded stock-based compensation expense of $2.6 million and $1.4 million for the three months ended March 31, 2020 and 2019, respectively.
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Expected life in years | 6.3 | 6.1 | 6.2 | 6.2 | ||||||||||||
Risk-free interest rate | 0.62 | % | 2.38 | % | 1.03 | % | 2.42 | % | ||||||||
Volatility | 48 | % | 44 | % | 46 | % | 44 | % | ||||||||
Dividend yield | — | — | — | — |
Three Months Ended March 31, | ||||||||
2020 | 2019 | |||||||
Stock-based compensation: | ||||||||
Cost of subscription and support revenue | $ | 190 | $ | 119 | ||||
Cost of professional services and other revenue | 80 | 84 | ||||||
Research and development | 440 | 263 | ||||||
Sales and marketing | 911 | 458 | ||||||
General and administrative | 997 | 500 | ||||||
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$ | 2,618 | $ | 1,424 | |||||
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Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Stock-based compensation: | ||||||||||||||||
Cost of subscription and support revenue | $ | 123 | $ | 95 | $ | 313 | $ | 214 | ||||||||
Cost of professional services and other revenue | 90 | 68 | 170 | 152 | ||||||||||||
Research and development | 257 | 269 | 697 | 532 | ||||||||||||
Sales and marketing | 761 | 351 | 1,672 | 809 | ||||||||||||
General and administrative | 867 | 576 | 1,864 | 1,076 | ||||||||||||
$ | 2,098 | $ | 1,359 | $ | 4,716 | $ | 2,783 | |||||||||
Number of Shares | Weighted-Average Exercise Price | Weighted-Average Remaining Contractual Term (In Years) | Aggregate Intrinsic Value (1) | |||||||||||||
Outstanding at December 31, 2019 | 2,479,423 | $ | 8.96 | |||||||||||||
Granted | 56,000 | 7.60 | ||||||||||||||
Exercised | (4,804 | ) | 7.81 | $ | 5 | |||||||||||
Canceled | (43,467 | ) | 9.05 | |||||||||||||
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Outstanding at March 31, 2020 | 2,487,152 | $ | 8.93 | 7.08 | $ | 406 | ||||||||||
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Exercisable at March 31, 2020 | 1,156,257 | $ | 8.30 | 5.26 | $ | 376 | ||||||||||
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Number of Shares | Weighted-Average Exercise Price | Weighted-Average Remaining Contractual Term (In Years) | Aggregate Intrinsic Value (1) | |||||||||||||
Outstanding at December 31, 2019 | 2,479,423 | $ | 8.96 | |||||||||||||
Granted | 79,920 | 7.76 | ||||||||||||||
Exercised | (61,096 | ) | 6.48 | $ | 108 | |||||||||||
Canceled | (126,007 | ) | 9.00 | |||||||||||||
Outstanding at June 30, 2020 | 2,372,240 | $ | 8.99 | 6.81 | $ | 852 | ||||||||||
Exercisable at June 30, 2020 | 1,368,007 | $ | 8.70 | 5.67 | $ | 740 | ||||||||||
(1) | The aggregate intrinsic value was calculated based on the positive difference between the fair value of the Company’s common stock on |
Shares | Weighted Average Grant Date Fair Value | |||||||
Unvested at December 31, 2019 | 3,626,364 | $ | 9.03 | |||||
Granted | 340,750 | 8.05 | ||||||
Vested and issued | (58,262 | ) | 7.81 | |||||
Canceled | (182,439 | ) | 8.08 | |||||
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|
|
| |||||
Unvested at March 31, 2020 | 3,726,413 | $ | 8.95 | |||||
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|
|
|
Shares | Weighted Average Grant Date Fair Value | |||||||
Unvested at December 31, 2019 | 3,626,364 | $ | 9.03 | |||||
Granted | 746,295 | 7.95 | ||||||
Vested and issued | (438,484 | ) | 8.92 | |||||
Canceled | (353,932 | ) | 8.52 | |||||
Unvested at June 30, 2020 | 3,580,243 | $ | 8.81 | |||||
Three Months Ended March 31, | ||||||||
2020 | 2019 | |||||||
Revenue: | ||||||||
North America | $ | 24,999 | $ | 21,813 | ||||
Europe | 8,461 | 6,469 | ||||||
Japan | 6,102 | 6,188 | ||||||
Asia Pacific | 6,870 | 7,272 | ||||||
Other | 221 | 94 | ||||||
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| |||||
Total revenue | $ | 46,653 | $ | 41,836 | ||||
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|
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Revenue: | ||||||||||||||||
North America | $ | 26,039 | $ | 25,708 | $ | 51,038 | $ | 47,521 | ||||||||
Europe | 8,427 | 8,167 | 16,888 | 14,636 | ||||||||||||
Japan | 5,554 | 5,146 | 11,656 | 11,334 | ||||||||||||
Asia Pacific | 7,714 | 8,091 | 14,584 | 15,363 | ||||||||||||
Other | 192 | 470 | 413 | 564 | ||||||||||||
Total revenue | $ | 47,926 | $ | 47,582 | $ | 94,579 | $ | 89,418 | ||||||||
Allowance for Credit Losses | ||||
(in thousands) | ||||
Balance as of December 31, 2019 | $ | 904 | ||
Current provision for credit losses | 228 | |||
Write-offs against allowance | (439 | ) | ||
Recoveries | — | |||
Balance as of March 31, 2020 | $ | 693 | ||
|
|
Allowance for Credit Losses | ||||
(in thousands) | ||||
Balance as of December 31, 2019 | $ | 904 | ||
Current provision for credit losses | 310 | |||
Write-offs against allowance | (563 | ) | ||
Recoveries | — | |||
Balance as of June 30, 2020 | $ | 651 | ||
ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
March 31,June 30, 2020, we had 621607 employees and 3,4983,423 customers, of which 2,2932,279 used our premium offerings and 1,2051,144 used our volume offerings. As of March 31,June 30, 2019, we had 496547 employees and 3,6963,761 customers, of which 2,2272,350 used our premium offerings and 1,4691,411 used our volume offerings.$41.8$89.4 million in the threesix months ended March 31,June 30, 2019 to $46.7$94.6 million in the threesix months ended March 31,June 30, 2020, dueprimarily related to incremental revenue from the Ooyala acquisition.acquisition that was completed on April 1, 2019 and, to a lesser extent, an increase in sales of our premium offerings to both new and existing customers. Our consolidated net loss was $7.9$9.1 million and $5$12.2 million for the threesix months ended March 31,June 30, 2020 and 2019, respectively. Included in the consolidated net loss for the threesix months ended March 31,June 30, 2020 was merger-related expense, stock-based compensation expense, and amortization of acquired intangible assets of $5.5$5.8 million, $2.6$4.7 million, and $972,000,$1.8 million, respectively. Included in consolidated net loss for the threesix months ended March 31,June 30, 2019 was merger-related expense, stock-based compensation expense and amortization of acquired intangible assets of $2.9$5.6 million, $1.4$2.8 million and $416,000,$1.3 million, respectively.
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Three Months Ended March 31, | ||||||||
2020 | 2019 | |||||||
Customers (at period end) | ||||||||
Premium | 2,293 | 2,227 | ||||||
Volume | 1,205 | 1,469 | ||||||
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| |||||
Total customers (at period end) | 3,498 | 3,696 | ||||||
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Recurring dollar retention rate | 88 | % | 95 | % | ||||
Average annual subscription revenue per premium customer, excluding Starter edition customers (in thousands) | $ | 84.6 | $ | 77.8 | ||||
Average annual subscription revenue per premium customer for Starter edition customers only (in thousands) | $ | 4.5 | $ | 4.6 | ||||
Total backlog, excluding professional services engagements (in millions) | $ | 125.5 | $ | 107.7 | ||||
Total backlog to be recognized over next 12 months, excluding professional services engagements (in millions) | $ | 100.5 | $ | 92.1 |
Recent Global Events and Company Impact
Six Months Ended June 30, | ||||||||
2020 | 2019 | |||||||
Customers (at period end) | ||||||||
Premium | 2,279 | 2,350 | ||||||
Volume | 1,144 | 1,411 | ||||||
Total customers (at period end) | 3,423 | 3,761 | ||||||
Recurring dollar retention rate | 84 | % | 90 | % | ||||
Average annual subscription revenue per premium customer, excluding Starter edition customers (in thousands) | $ | 86.4 | $ | 80.8 | ||||
Average annual subscription revenue per premium customer for Starter edition customers only (in thousands) | $ | 4.5 | $ | 4.5 | ||||
Total backlog, excluding professional services engagements (in millions) | $ | 136.9 | $ | 134.2 | ||||
Total backlog to be recognized over next 12 months, excluding professional services engagements (in millions) | $ | 108.8 | $ | 107.6 |
providing additional features and functionality. Customer arrangements are typically one year contracts, which include a subscription to Video Cloud, basicsupport and a
We expect the level of activity associated with our revenues described above to decline during the second quarter of 2020 due to the contraction of our customers’ business as a result of theCOVID-19 pandemic, especially as it relates to customers in significantly impacted industries. We have utilized our judgment in our estimates regarding customer engagement and cannot currently predict with confidence the full extent of the impact ofCOVID-19 on our revenue base.
Cost of revenue increased in absolute dollars from the first three months of 2019 to the first three months of 2020.
For the six months ended June 30, 2020 and 2019, we recorded $4.7 million and $2.8 million, respectively, of stock-based compensation expense. We expect stock-based compensation expense to increase in absolute dollars in future periods.
Three Months Ended March 31, | ||||||||
2020 | 2019 | |||||||
(in thousands, except share and per share data) | ||||||||
Revenue: | ||||||||
Subscription and support revenue | $ | 44,658 | $ | 38,877 | ||||
Professional services and other revenue | 1,995 | 2,959 | ||||||
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| |||||
Total revenue | 46,653 | 41,836 | ||||||
Cost of revenue: | ||||||||
Cost of subscription and support revenue | 16,748 | 14,170 | ||||||
Cost of professional services and other revenue | 1,894 | 2,576 | ||||||
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| |||||
Total cost of revenue | 18,642 | 16,746 | ||||||
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| |||||
Gross profit | 28,011 | 25,090 | ||||||
Operating expenses: | ||||||||
Research and development | 8,853 | 7,394 | ||||||
Sales and marketing | 14,174 | 14,256 | ||||||
General and administrative | 6,532 | 5,261 | ||||||
Merger-related | 5,509 | 2,932 | ||||||
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| |||||
Total operating expenses | 35,068 | 29,843 | ||||||
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| |||||
Loss from operations | (7,057 | ) | (4,753 | ) | ||||
Other income (expense), net | (468 | ) | (55 | ) | ||||
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| |||||
Loss before income taxes | (7,525 | ) | (4,808 | ) | ||||
Provision for income taxes | 328 | 175 | ||||||
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| |||||
Net loss | $ | (7,853 | ) | $ | (4,983 | ) | ||
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| |||||
Net loss per share - basic and diluted | $ | (0.20 | ) | $ | (0.14 | ) | ||
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| |||||
Weighted-average number of common shares used in computing net loss per share | 38,981,140 | 36,677,046 | ||||||
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Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
(in thousands, except share and per share data) | ||||||||||||||||
Revenue: | ||||||||||||||||
Subscription and support revenue | $ | 45,617 | $ | 44,891 | $ | 90,275 | $ | 83,768 | ||||||||
Professional services and other revenue | 2,309 | 2,691 | 4,304 | 5,650 | ||||||||||||
Total revenue | 47,926 | 47,582 | 94,579 | 89,418 | ||||||||||||
Cost of revenue: | ||||||||||||||||
Cost of subscription and support revenue | 17,807 | 19,381 | 34,555 | 33,551 | ||||||||||||
Cost of professional services and other revenue | 2,092 | 2,228 | 3,986 | 4,804 | ||||||||||||
Total cost of revenue | 19,899 | 21,609 | 38,541 | 38,355 | ||||||||||||
Gross profit | 28,027 | 25,973 | 56,038 | 51,063 | ||||||||||||
Operating expenses: | ||||||||||||||||
Research and development | 9,131 | 7,629 | 17,984 | 15,023 | ||||||||||||
Sales and marketing | 13,383 | 16,827 | 27,557 | 31,083 | ||||||||||||
General and administrative | 6,407 | 5,979 | 12,939 | 11,240 | ||||||||||||
Merger-related | 259 | 2,620 | 5,768 | 5,552 | ||||||||||||
Total operating expenses | 29,180 | 33,055 | 64,248 | 62,898 | ||||||||||||
Loss from operations | (1,153 | ) | (7,082 | ) | (8,210 | ) | (11,835 | ) | ||||||||
Other (expense) income, net | (27 | ) | 19 | (495 | ) | (36 | ) | |||||||||
Loss before income taxes | (1,180 | ) | (7,063 | ) | (8,705 | ) | (11,871 | ) | ||||||||
Provision for income taxes | 115 | 175 | 443 | 350 | ||||||||||||
Net loss | $ | (1,295 | ) | $ | (7,238 | ) | $ | (9,148 | ) | $ | (12,221 | ) | ||||
Net loss per share - basic and diluted | $ | (0.03 | ) | $ | (0.19 | ) | $ | (0.23 | ) | $ | (0.33 | ) | ||||
Weighted-average number of common shares used in computing net loss per share | 39,291,649 | 37,966,207 | 39,136,394 | 37,322,646 | ||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||||
2020 | 2019 | Change | ||||||||||||||||||||||
Revenue by Product Line | Amount | Percentage of Revenue | Amount | Percentage of Revenue | Amount | % | ||||||||||||||||||
(in thousands, except percentages) | ||||||||||||||||||||||||
Premium | $ | 45,787 | 98 | % | $ | 40,882 | 98 | % | $ | 4,905 | 12 | % | ||||||||||||
Volume | 866 | 2 | 954 | 2 | (88 | ) | (9 | ) | ||||||||||||||||
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| |||||||||||||
Total | $ | 46,653 | 100 | % | $ | 41,836 | 100 | % | $ | 4,817 | 12 | % | ||||||||||||
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Three Months Ended June 30, | ||||||||||||||||||||||||
2020 | 2019 | Change | ||||||||||||||||||||||
Revenue by Product Line | Amount | Percentage of Revenue | Amount | Percentage of Revenue | Amount | % | ||||||||||||||||||
(in thousands, except percentages) | ||||||||||||||||||||||||
Premium | $ | 46,941 | 98 | % | $ | 46,627 | 98 | % | $ | 314 | 1 | % | ||||||||||||
Volume | 985 | 2 | 955 | 2 | 30 | 3 | ||||||||||||||||||
Total | $ | 47,926 | 100 | % | $ | 47,582 | 100 | % | $ | 344 | 1 | % | ||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||||
2020 | 2019 | Change | ||||||||||||||||||||||
Revenue by Type | Amount | Percentage of Revenue | Amount | Percentage of Revenue | Amount | % | ||||||||||||||||||
(in thousands, except percentages) | ||||||||||||||||||||||||
Subscription and support | $ | 44,658 | 96 | % | $ | 38,877 | 93 | % | $ | 5,781 | 15 | % | ||||||||||||
Professional services and other | 1,995 | 4 | 2,959 | 7 | (964 | ) | (33 | ) | ||||||||||||||||
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| |||||||||||||
Total | $ | 46,653 | 100 | % | $ | 41,836 | 100 | % | $ | 4,817 | 12 | % | ||||||||||||
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During the three months ended March 31, 2020, subscription and support revenue increased by $5.8 million, or 15%, compared to the three months ended March 31, 2019. The increase was primarily related to the 3% increase in the number of premium customers. Premium customers increased from 2,227 at March 31, 2019 to 2,293 at March 31, 2020 and the average annual subscription revenue per premium customer during the three months ended March 31,June 30, 2020 compared to the three months ended June 30, 2019. In the three months ended June 30, 2020, volume revenue increased 9%by $30,000, or 3%, compared to the three months ended June 30, 2019.
Three Months Ended June 30, | ||||||||||||||||||||||||
2020 | 2019 | Change | ||||||||||||||||||||||
Revenue by Type | Amount | Percentage of Revenue | Amount | Percentage of Revenue | Amount | % | ||||||||||||||||||
(in thousands, except percentages) | ||||||||||||||||||||||||
Subscription and support | $ | 45,617 | 95 | % | $ | 44,891 | 94 | % | $ | 726 | 2 | % | ||||||||||||
Professional services and other | 2,309 | 5 | 2,691 | 6 | (382 | ) | (14 | ) | ||||||||||||||||
Total | $ | 47,926 | 100 | % | $ | 47,582 | 100 | % | $ | 344 | 1 | % | ||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||||
2020 | 2019 | Change | ||||||||||||||||||||||
Revenue by Geography | Amount | Percentage of Revenue | Amount | Percentage of Revenue | Amount | % | ||||||||||||||||||
(in thousands, except percentages) | ||||||||||||||||||||||||
North America | $ | 24,999 | 54 | % | $ | 21,813 | 52 | % | $ | 3,186 | 15 | % | ||||||||||||
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Europe | 8,461 | 18 | 6,469 | 15 | 1,992 | 31 | ||||||||||||||||||
Japan | 6,102 | 13 | 6,188 | 16 | (86 | ) | (1 | ) | ||||||||||||||||
Asia Pacific | 6,870 | 15 | 7,272 | 17 | (402 | ) | (6 | ) | ||||||||||||||||
Other | 221 | — | 94 | — | 127 | 135 | ||||||||||||||||||
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International subtotal | 21,654 | 46 | 20,023 | 48 | 1,631 | 8 | ||||||||||||||||||
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Total | $ | 46,653 | 100 | % | $ | 41,836 | 100 | % | $ | 4,817 | 12 | % | ||||||||||||
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For purposes of this section, we
Three Months Ended June 30, | ||||||||||||||||||||||||
2020 | 2019 | Change | ||||||||||||||||||||||
Revenue by Geography | Amount | Percentage of Revenue | Amount | Percentage of Revenue | Amount | % | ||||||||||||||||||
(in thousands, except percentages) | ||||||||||||||||||||||||
North America | $ | 26,039 | 54 | % | $ | 25,708 | 54 | % | $ | 331 | 1 | % | ||||||||||||
Europe | 8,427 | 18 | 8,167 | 17 | 260 | 3 | ||||||||||||||||||
Japan | 5,554 | 12 | 5,146 | 11 | 408 | 8 | ||||||||||||||||||
Asia Pacific | 7,714 | 16 | 8,091 | 17 | (377 | ) | (5 | ) | ||||||||||||||||
Other | 192 | — | 470 | 1 | (278 | ) | (59 | ) | ||||||||||||||||
International subtotal | 21,887 | 46 | 21,874 | 46 | 13 | 0 | ||||||||||||||||||
Total | $ | 47,926 | 100 | % | $ | 47,582 | 100 | % | $ | 344 | 1 | % | ||||||||||||
Three Months Ended June 30, | ||||||||||||||||||||||||
2020 | 2019 | Change | ||||||||||||||||||||||
Cost of Revenue | Amount | Percentage of Related Revenue | Amount | Percentage of Related Revenue | Amount | % | ||||||||||||||||||
(in thousands, except percentages) | ||||||||||||||||||||||||
Subscription and support | $ | 17,807 | 39 | % | $ | 19,381 | 43 | % | $ | (1,574 | ) | (8 | )% | |||||||||||
Professional services and other | 2,092 | 91 | 2,228 | 83 | (136 | ) | (6 | ) | ||||||||||||||||
Total | $ | 19,899 | 42 | % | $ | 21,609 | 45 | % | $ | (1,710 | ) | (8 | )% | |||||||||||
Three Months Ended June 30, | ||||||||||||||||||||||||
2020 | 2019 | Change | ||||||||||||||||||||||
Gross Profit | Amount | Percentage of Related Revenue | Amount | Percentage of Related Revenue | Amount | % | ||||||||||||||||||
(in thousands, except percentages) | ||||||||||||||||||||||||
Subscription and support | $ | 27,810 | 61 | % | $ | 25,510 | 57 | % | $ | 2,300 | 9 | % | ||||||||||||
Professional services and other | 217 | 9 | 463 | 17 | (246 | ) | (53 | )% | ||||||||||||||||
Total | $ | 28,027 | 58 | % | $ | 25,973 | 55 | % | $ | 2,054 | 8 | % | ||||||||||||
Three Months Ended June 30, | ||||||||||||||||||||||||
2020 | 2019 | Change | ||||||||||||||||||||||
Operating Expenses | Amount | Percentage of Revenue | Amount | Percentage of Revenue | Amount | % | ||||||||||||||||||
(in thousands, except percentages) | ||||||||||||||||||||||||
Research and development | $ | 9,131 | 19 | % | $ | 7,629 | 16 | % | $ | 1,502 | 20 | % | ||||||||||||
Sales and marketing | 13,383 | 28 | 16,827 | 35 | (3,444 | ) | (20 | ) | ||||||||||||||||
General and administrative | 6,407 | 13 | 5,979 | 13 | 428 | 7 | ||||||||||||||||||
Merger-related | 259 | 1 | 2,620 | 6 | (2,361 | ) | (90 | ) | ||||||||||||||||
Total | $ | 29,180 | 61 | % | $ | 33,055 | 69 | % | $ | (3,875 | ) | (12 | )% | |||||||||||
Six Months Ended June 30, | ||||||||||||||||||||||||
2020 | 2019 | Change | ||||||||||||||||||||||
Revenue by Product Line | Amount | Percentage of Revenue | Amount | Percentage of Revenue | Amount | % | ||||||||||||||||||
(in thousands, except percentages) | ||||||||||||||||||||||||
Premium | $ | 92,728 | 98 | % | $ | 87,508 | 98 | % | $ | 5,220 | 6 | % | ||||||||||||
Volume | 1,851 | 2 | 1,910 | 2 | (59 | ) | (3 | ) | ||||||||||||||||
Total | $ | 94,579 | 100 | % | $ | 89,418 | 100 | % | $ | 5,161 | 6 | % | ||||||||||||
Six Months Ended June 30, | ||||||||||||||||||||||||
2020 | 2019 | Change | ||||||||||||||||||||||
Revenue by Type | Amount | Percentage of Revenue | Amount | Percentage of Revenue | Amount | % | ||||||||||||||||||
(in thousands, except percentages) | ||||||||||||||||||||||||
Subscription and support | $ | 90,275 | 95 | % | $ | 83,768 | 94 | % | $ | 6,507 | 8 | % | ||||||||||||
Professional services and other | 4,304 | 5 | 5,650 | 6 | (1,346 | ) | (24 | ) | ||||||||||||||||
Total | $ | 94,579 | 100 | % | $ | 89,418 | 100 | % | $ | 5,161 | 6 | % | ||||||||||||
Six Months Ended June 30, | ||||||||||||||||||||||||
2020 | 2019 | Change | ||||||||||||||||||||||
Revenue by Geography | Amount | Percentage of Revenue | Amount | Percentage of Revenue | Amount | % | ||||||||||||||||||
(in thousands, except percentages) | ||||||||||||||||||||||||
North America | $ | 51,038 | 54 | % | $ | 47,521 | 53 | % | $ | 3,517 | 7 | % | ||||||||||||
Europe | 16,888 | 18 | 14,636 | 16 | 2,252 | 15 | ||||||||||||||||||
Japan | 11,656 | 12 | 11,334 | 13 | 322 | 3 | ||||||||||||||||||
Asia Pacific | 14,584 | 16 | 15,363 | 17 | (779 | ) | (5 | ) | ||||||||||||||||
Other | 413 | — | 564 | 1 | (151 | ) | (27 | ) | ||||||||||||||||
International subtotal | 43,541 | 46 | 41,897 | 47 | 1,644 | 4 | ||||||||||||||||||
Total | $ | 94,579 | 100 | % | $ | 89,418 | 100 | % | $ | 5,161 | 6 | % | ||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||||
2020 | 2019 | Change | ||||||||||||||||||||||
Cost of Revenue | Amount | Percentage of Related Revenue | Amount | Percentage of Related Revenue | Amount | % | ||||||||||||||||||
(in thousands, except percentages) | ||||||||||||||||||||||||
Subscription and support | $ | 16,748 | 38 | % | $ | 14,170 | 36 | % | $ | 2,578 | 18 | % | ||||||||||||
Professional services and other | 1,894 | 95 | 2,576 | 87 | (682 | ) | (26 | ) | ||||||||||||||||
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| |||||||||||||
Total | $ | 18,642 | 40 | % | $ | 16,746 | 40 | % | $ | 1,896 | 11 | % | ||||||||||||
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Six Months Ended June 30, | ||||||||||||||||||||||||
2020 | 2019 | Change | ||||||||||||||||||||||
Cost of Revenue | Amount | Percentage of Related Revenue | Amount | Percentage of Related Revenue | Amount | % | ||||||||||||||||||
(in thousands, except percentages) | ||||||||||||||||||||||||
Subscription and support | $ | 34,555 | 38 | % | $ | 33,551 | 40 | % | $ | 1,004 | 3 | % | ||||||||||||
Professional services and other | 3,986 | 93 | 4,804 | 85 | (818 | ) | (17 | ) | ||||||||||||||||
Total | $ | 38,541 | 41 | % | $ | 38,355 | 43 | % | $ | 186 | 0 | % | ||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||||
2020 | 2019 | Change | ||||||||||||||||||||||
Gross Profit | Amount | Percentage of Related Revenue | Amount | Percentage of Related Revenue | Amount | % | ||||||||||||||||||
(in thousands, except percentages) | ||||||||||||||||||||||||
Subscription and support | $ | 27,910 | 62 | % | $ | 24,707 | 64 | % | $ | 3,203 | 13 | % | ||||||||||||
Professional services and other | 101 | 5 | 383 | 13 | (282 | ) | (74 | )% | ||||||||||||||||
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| |||||||||||||
Total | $ | 28,011 | 60 | % | $ | 25,090 | 60 | % | $ | 2,921 | 12 | % | ||||||||||||
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Six Months Ended June 30, | ||||||||||||||||||||||||
2020 | 2019 | Change | ||||||||||||||||||||||
Gross Profit | Amount | Percentage of Related Revenue | Amount | Percentage of Related Revenue | Amount | % | ||||||||||||||||||
(in thousands, except percentages) | ||||||||||||||||||||||||
Subscription and support | $ | 55,720 | 62 | % | $ | 50,217 | 60 | % | $ | 5,503 | 11 | % | ||||||||||||
Professional services and other | 318 | 7 | 846 | 15 | (528 | ) | (62 | ) | ||||||||||||||||
Total | $ | 56,038 | 59 | % | $ | 51,063 | 57 | % | $ | 4,975 | 10 | % | ||||||||||||
type, timing and duration of service required in delivering certain projects.
Three Months Ended March 31, | ||||||||||||||||||||||||
2020 | 2019 | Change | ||||||||||||||||||||||
Operating Expenses | Amount | Percentage of Revenue | Amount | Percentage of Revenue | Amount | % | ||||||||||||||||||
(in thousands, except percentages) | ||||||||||||||||||||||||
Research and development | $ | 8,853 | 19 | % | $ | 7,394 | 18 | % | $ | 1,459 | 20 | % | ||||||||||||
Sales and marketing | 14,174 | 30 | 14,256 | 34 | (82 | ) | (1 | ) | ||||||||||||||||
General and administrative | 6,532 | 14 | 5,261 | 13 | 1,271 | 24 | ||||||||||||||||||
Merger-related | 5,509 | 12 | 2,932 | 7 | 2,577 | 88 | ||||||||||||||||||
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Total | $ | 35,068 | 75 | % | $ | 29,843 | 71 | % | $ | 5,225 | 18 | % | ||||||||||||
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Six Months Ended June 30, | ||||||||||||||||||||||||
2020 | 2019 | Change | ||||||||||||||||||||||
Operating Expenses | Amount | Percentage of Revenue | Amount | Percentage of Revenue | Amount | % | ||||||||||||||||||
(in thousands, except percentages) | ||||||||||||||||||||||||
Research and development | $ | 17,984 | 19 | % | $ | 15,023 | 17 | % | $ | 2,961 | 20 | % | ||||||||||||
Sales and marketing | 27,557 | 29 | 31,083 | 35 | (3,526 | ) | (11 | ) | ||||||||||||||||
General and administrative | 12,939 | 14 | 11,240 | 13 | 1,699 | 15 | ||||||||||||||||||
Merger-related | 5,768 | 6 | 5,552 | 6 | 216 | 4 | ||||||||||||||||||
Total | $ | 64,248 | 68 | % | $ | 62,898 | 70 | % | $ | 1,350 | 2 | % | ||||||||||||
$165,000, respectively.
employee-related expenses of $2.1 million, $1.6 million and $1.2 million, respectively. These decreases were offset by increases in stock-based compensation, intangible amortization and computer maintenance and support of $863,000, $315,000 and $180,000, respectively.
legal fees of $163,000 and $114,000, respectively.
the six months ended June 30, 2019.
Three Months Ended March 31, | ||||||||
Condensed Consolidated Statements of Cash Flow Data | 2020 | 2019 | ||||||
(in thousands) | ||||||||
Cash flows provided by operating activities | 2,441 | 263 | ||||||
Cash flows used in investing activities | (2,693 | ) | (1,190 | ) | ||||
Cash flows provided by financing activities | 10,010 | 567 |
Six Months Ended June 30, | ||||||||
Condensed Consolidated Statements of Cash Flow Data | 2020 | 2019 | ||||||
(in thousands) | ||||||||
Cash flows provided by (used in) operating activities | 5,300 | (3,881 | ) | |||||
Cash flows used in investing activities | (5,036 | ) | (6,073 | ) | ||||
Cash flows provided by financing activities | 4,965 | 1,726 |
revenue.
assets.
The decrease in cash used in investing activities is primarily due to consideration paid in 2019 related to the Ooyala acquisition.
debt, net of repayments. The increase in cash provided by financing activities is due to net borrowings, offset by a decrease in proceeds from exercise of stock options.
ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
Three Months Ended March 31, | ||||||||
2020 | 2019 | |||||||
Revenues generated in locations outside the United States | 51 | % | 52 | % | ||||
Revenues in currencies other than the United States dollar (1) | 31 | % | 33 | % | ||||
Expenses in currencies other than the United States dollar (1) | 16 | % | 16 | % |
Three Months Ended June 30, | ||||||||
2020 | 2019 | |||||||
Revenues generated in locations outside the United States | 50 | % | 50 | % | ||||
Revenues in currencies other than the United States dollar (1) | 30 | % | 29 | % | ||||
Expenses in currencies other than the United States dollar (1) | 15 | % | 15 | % | ||||
Six Months Ended June 30, | ||||||||
2020 | 2019 | |||||||
Revenues generated in locations outside the United States | 50 | % | 50 | % | ||||
Revenues in currencies other than the United States dollar (1) | 30 | % | 32 | % | ||||
Expenses in currencies other than the United States dollar (1) | 15 | % | 14 | % |
(1) | Percentage of revenues and expenses denominated in foreign currency for the three and six months ended |
Three Months Ended March 31, 2020 | Three Months Ended March 31, 2019 | |||||||||||||||
Revenues | Expenses | Revenues | Expenses | |||||||||||||
Euro | 8 | % | 1 | % | 6 | % | 1 | % | ||||||||
British pound | 6 | 6 | 7 | 6 | ||||||||||||
Japanese Yen | 13 | 2 | 15 | 5 | ||||||||||||
Other | 4 | 7 | 5 | 4 | ||||||||||||
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Total | 31 | % | 16 | % | 33 | % | 16 | % |
Three Months Ended June 30, 2020 | Three Months Ended June 30, 2019 | |||||||||||||||
Revenues | Expenses | Revenues | Expenses | |||||||||||||
Euro | 8 | % | 1 | % | 7 | % | 2 | % | ||||||||
British pound | 6 | 5 | 7 | 5 | ||||||||||||
Japanese Yen | 12 | 2 | 11 | 3 | ||||||||||||
Other | 4 | 7 | 4 | 5 | ||||||||||||
Total | 30 | % | 15 | % | 29 | % | 15 | % | ||||||||
Six Months Ended June 30, 2020 | Six Months Ended June 30, 2019 | |||||||||||||||
Revenues | Expenses | Revenues | Expenses | |||||||||||||
Euro | 8 | % | 1 | % | 7 | % | 1 | % | ||||||||
British pound | 6 | 5 | 7 | 5 | ||||||||||||
Japanese Yen | 12 | 2 | 13 | 4 | ||||||||||||
Other | 4 | 7 | 5 | 4 | ||||||||||||
Total | 30 | % | 15 | % | 32 | % | 14 | % |
ITEM 4. | CONTROLS AND PROCEDURES |
ITEM 1. | LEGAL PROCEEDINGS |
The Company,
ITEM 1A. | RISK FACTORS |
December 2019, a novel coronavirus disease, orCOVID-19, was reported and in JanuaryMarch 2020, the World Health Organization or WHO, declared it a Public Health Emergency of International Concern. On February 28, 2020, the WHO raised its assessment of thenovel coronavirus disease, or threat from high to very high at a global level due to the continued increase in the number of cases and affected countries, and on March 11, 2020, the WHO characterizedCOVID-19 have temporarily closed our global offices, including our corporate headquarters, and all employees globally are required to work remotely until further notice. We have also suspended all company-related travel. We haveheld our annual customer conference virtually in May, shifted our partner events to virtual-only experiences, and have cancelled other customer and industry events. We may deem it advisable to similarly alter, postpone or cancel entirely additional customer, employee or industry events in the future. All of these changes have disrupted or may disrupt the way we operate our business.begun to bebeen negatively affected by a range of external factors related to theCOVID-19.
ITEM 5. | OTHER INFORMATION |
ITEM 6. | EXHIBITS |
Exhibits | ||
3.1 (1) | Eleventh Amended and Restated Certificate of Incorporation. | |
3.2 (2) | Amended and RestatedBy-Laws. | |
4.1 (3) | Form of Common Stock certificate of the Registrant. | |
31.1 | Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of | |
31.2 | Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
32.1^ | Certification of Chief Executive Officer and Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
101.INS | Inline XBRL Instance Document. The instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |
101.SCH | XBRL Inline Taxonomy Extension Schema Document. | |
101.CAL | XBRL Inline Taxonomy Extension Calculation Linkbase Document. | |
101.DEF | XBRL Inline Taxonomy Extension Definition Linkbase Document. | |
101.LAB | XBRL Inline Taxonomy Extension Label Linkbase Document. | |
101.PRE | XBRL Inline Taxonomy Extension Presentation Linkbase Document. | |
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
(1) | Filed as Exhibit 3.2 to Amendment No. 5 to Registrant’s Registration Statement on Form S-1 filed with the Securities and Exchange Commission on February 6, 2012, and incorporated herein by reference. |
(2) | Filed as Exhibit 3.3 to Amendment No. 5 to Registrant’s Registration Statement on Form S-1 filed with the Securities and Exchange Commission on February 6, 2012, and incorporated herein by reference. |
(3) | Filed as Exhibit 4.1 to Amendment No. 5 to Registrant’s Registration Statement on Form S-1 filed with the Securities and Exchange Commission on February 6, 2012, and incorporated herein by reference. |
^ | Furnished herewith. |
BRIGHTCOVE INC. | ||||||
| ||||||
Date: | By: | /s/ Jeff Ray | ||||
Jeff Ray | ||||||
| ||||||
(Principal Executive Officer) | ||||||
Date: | By: | /s/ Robert Noreck | ||||
Robert Noreck | ||||||
| ||||||
(Principal Financial Officer) |
35