☒ | 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 |
Delaware | 20-1579162 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading | Name of each exchange | ||
Common Stock, par value $0.001 per share | BCOV | The NASDAQ Global Market |
Large accelerated filer | ☐ | Accelerated filer | ☒ | |||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | |||
Emerging growth company | ☐ |
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ITEM 1. |
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 | 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) | 0 | 0 | ||||||
Stockholders’ equity: | ||||||||
Undesignated preferred stock, $0.001 par value; 5,000,000 shares authorized; 0 shares issued | 0— | 0— | ||||||
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 | ||||
September 30, 2021 | December 31, 2020 | |||||||
(in thousands, except share and per share data) | ||||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 45,285 | $ | 37,472 | ||||
Accounts receivable, net of allowance of $443 and $648 at September 30, 2021 and December 31, 2020, respectively | 28,138 | 29,305 | ||||||
Prepaid expenses | 8,965 | 5,760 | ||||||
Other current assets | 11,411 | 12,978 | ||||||
Total current assets | 93,799 | 85,515 | ||||||
Property and equipment, net | 18,777 | 15,968 | ||||||
Operating lease right-of-use | 5,668 | 8,699 | ||||||
Intangible assets, net | 8,213 | 10,465 | ||||||
Goodwill | 60,902 | 60,902 | ||||||
Other assets | 6,491 | 5,254 | ||||||
Total assets | $ | 193,850 | $ | 186,803 | ||||
Liabilities and stockholders’ equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 11,007 | $ | 10,456 | ||||
Accrued expenses | 21,082 | 25,397 | ||||||
Operating lease liability | 2,176 | 4,346 | ||||||
Deferred revenue | 61,739 | 58,741 | ||||||
Total current liabilities | 96,004 | 98,940 | ||||||
Operating lease liability, net of current portion | 3,734 | 5,498 | ||||||
Other liabilities | 1,536 | 2,763 | ||||||
Total liabilities | $ | 101,274 | 107,201 | |||||
Commitments and contingencies (Note 8) | 0 | 0 | ||||||
Stockholders’ equity: | ||||||||
Undesignated preferred stock, $0.001 par value; 5,000,000 shares authorized; 0 shares issued | 0— | 0— | ||||||
Common stock, $0.001 par value; 100,000,000 shares authorized; 41,175,854 and 40,152,021 shares issued at September 30, 2021 and December 31, 2020, respectively | 41 | 40 | ||||||
Additional paid-in capital | 295,464 | 287,059 | ||||||
Treasury stock, at cost; 135,000 shares | (871 | ) | (871 | ) | ||||
Accumulated other comprehensive loss | (600 | ) | (188 | ) | ||||
Accumulated deficit | (201,458 | ) | (206,438 | ) | ||||
Total stockholders’ equity | 92,576 | 79,602 | ||||||
Total liabilities and stockholders’ equity | $ | 193,850 | $ | 186,803 | ||||
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 | 16,139 | 17,984 | ||||||||||||
Sales and marketing | 18,130 | 13,383 | 34,279 | 27,557 | ||||||||||||
General and administrative | 7,418 | 6,407 | 14,477 | 12,939 | ||||||||||||
Merger-related | 255 | 259 | 255 | 5,768 | ||||||||||||
Other (benefit) expense | — | — | (1,965 | ) | — | |||||||||||
Total operating expenses | 33,658 | 29,180 | 63,185 | 64,248 | ||||||||||||
Income (loss) from operations | 590 | (1,153 | ) | 6,712 | (8,210 | ) | ||||||||||
Other expense, net | 117 | (27 | ) | (618 | ) | (495 | ) | |||||||||
Income (loss) before income taxes | 707 | (1,180 | ) | 6,094 | (8,705 | ) | ||||||||||
Provision for income taxes | (163 | ) | 115 | 94 | 443 | |||||||||||
Net income (loss) | $ | 870 | $ | (1,295 | ) | $ | 6,000 | $ | (9,148 | ) | ||||||
Net income (loss) per share—basic and diluted | ||||||||||||||||
Basic | $ | 0.02 | $ | (0.03 | ) | $ | 0.15 | $ | (0.23 | ) | ||||||
Diluted | $ | 0.02 | $ | (0.03 | ) | $ | 0.14 | $ | (0.23 | ) | ||||||
Weighted-average shares—basic and diluted | ||||||||||||||||
Basic | 40,615,149 | 39,291,649 | 40,385,866 | 39,136,394 | ||||||||||||
Diluted | 42,208,933 | 39,291,649 | 42,390,641 | 39,136,394 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
(in thousands, except share and per share data) | ||||||||||||||||
Revenue: | ||||||||||||||||
Subscription and support revenue | $ | 49,226 | $ | 46,338 | $ | 148,667 | $ | 136,613 | ||||||||
Professional services and other revenue | 2,937 | 2,746 | 9,785 | 7,050 | ||||||||||||
Total revenue | 52,163 | 49,084 | 158,452 | 143,663 | ||||||||||||
Cost of revenue: | ||||||||||||||||
Cost of subscription and support revenue | 16,406 | 15,735 | 46,840 | 50,290 | ||||||||||||
Cost of professional services and other revenue | 2,247 | 2,363 | 8,205 | 6,349 | ||||||||||||
Total cost of revenue | 18,653 | 18,098 | 55,045 | 56,639 | ||||||||||||
Gross profit | 33,510 | 30,986 | 103,407 | 87,024 | ||||||||||||
Operating expenses: | ||||||||||||||||
Research and development | 7,902 | 8,215 | 24,041 | 26,199 | ||||||||||||
Sales and marketing | 18,451 | 14,813 | 52,730 | 42,370 | ||||||||||||
General and administrative | 7,345 | 6,694 | 21,822 | 19,633 | ||||||||||||
Merger-related | 45 | 0 | 300 | 5,768 | ||||||||||||
Other (benefit) expense | — | — | (1,965 | ) | — | |||||||||||
Total operating expenses | 33,743 | 29,722 | 96,928 | 93,970 | ||||||||||||
(Loss) income from operations | (233 | ) | 1,264 | 6,479 | (6,946 | ) | ||||||||||
Other (expense) income, net | (319 | ) | 204 | (937 | ) | (291 | ) | |||||||||
(Loss) income before income taxes | (552 | ) | 1,468 | 5,542 | (7,237 | ) | ||||||||||
Provision for income taxes | 468 | 154 | 562 | 597 | ||||||||||||
Net (loss) income | $ | (1,020 | ) | $ | 1,314 | $ | 4,980 | $ | (7,834 | ) | ||||||
Net (loss) income per share—basic and diluted | ||||||||||||||||
Basic | $ | (0.02 | ) | $ | 0.03 | $ | 0.12 | $ | (0.20 | ) | ||||||
Diluted | $ | (0.02 | ) | $ | 0.03 | $ | 0.12 | $ | (0.20 | ) | ||||||
Weighted-average shares—basic and diluted | ||||||||||||||||
Basic | 40,934,689 | 39,682,337 | 40,570,817 | 39,319,703 | ||||||||||||
Diluted | 40,934,689 | 40,645,982 | 42,237,438 | 39,319,703 |
Three Months Ended June 30, | Six Months June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
(in thousands) | ||||||||||||||||
Net income (loss) | $ | 870 | $ | (1,295 | ) | $ | 6,000 | $ | (9,148 | ) | ||||||
Other comprehensive income: | ||||||||||||||||
Foreign currency translation adjustments | 35 | 158 | (174 | ) | (301 | ) | ||||||||||
Comprehensive income (loss) | $ | 905 | $ | (1,137 | ) | $ | 5,826 | $ | (9,449 | ) | ||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
(in thousands) | ||||||||||||||||
Net (loss) income | $ | (1,020 | ) | $ | 1,314 | $ | 4,980 | $ | (7,834 | ) | ||||||
Other comprehensive income: | ||||||||||||||||
Foreign currency translation adjustments | (238 | ) | 345 | (412 | ) | 44 | ||||||||||
Comprehensive (loss) income | $ | (1,258 | ) | $ | 1,659 | $ | 4,568 | $ | (7,790 | ) | ||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
(in thousands, except share data) | ||||||||||||||||
Shares of common stock issued | ||||||||||||||||
Balance, beginning of period | 40,412,577 | 39,105,853 | 40,152,021 | 39,042,787 | ||||||||||||
Issuance of common stock upon exercise of stock options and pursuant to restricted stock units | 533,995 | 438,138 | 794,551 | 501,204 | ||||||||||||
Balance, end of period | 40,946,572 | 39,543,991 | 40,946,572 | 39,543,991 | ||||||||||||
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 | $ | 40 | $ | 39 | $ | 41 | $ | 39 | ||||||||
Issuance of common stock upon exercise of stock options | 0 | 0 | 0 | 0 | ||||||||||||
Issuance of common stock upon exercise of stock options and pursuant to restricted stock units | 1 | 0 | 0 | 0 | ||||||||||||
Balance, end of period | $ | 41 | $ | 39 | $ | 41 | $ | 39 | ||||||||
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 | $ | 290,403 | $ | 279,114 | $ | 287,059 | $ | 276,365 | ||||||||
Issuance of common stock upon exercise of stock options and pursuant to restricted stock units, net of tax | (378 | ) | (38 | ) | 631 | (2 | ) | |||||||||
Stock-based compensation expense | 2,750 | 2,179 | 5,085 | 4,892 | ||||||||||||
Balance, end of period | $ | 292,775 | $ | 281,255 | $ | 292,775 | $ | 281,255 | ||||||||
Accumulated deficit | ||||||||||||||||
Balance, beginning of period | $ | (201,308 | ) | $ | (208,478 | ) | $ | (206,438 | ) | $ | (200,625 | ) | ||||
Net income (loss) | 870 | (1,295 | ) | 6,000 | (9,148 | ) | ||||||||||
Balance, end of period | $ | (200,438 | ) | $ | (209,773 | ) | $ | (200,438 | ) | $ | (209,773 | ) | ||||
Accumulated other comprehensive loss | ||||||||||||||||
Balance, beginning of period | $ | (397 | ) | $ | (1,244 | ) | $ | (188 | ) | $ | (785 | ) | ||||
Foreign currency translation adjustment | 35 | 158 | (174 | ) | (301 | ) | ||||||||||
Balance, end of period | $ | (362 | ) | $ | (1,086 | ) | $ | (362 | ) | $ | (1,086 | ) | ||||
Total stockholders’ equity | $ | 91,145 | $ | 69,564 | $ | 91,145 | $ | 69,564 | ||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
(in thousands, except share data) | ||||||||||||||||
Shares of common stock issued | ||||||||||||||||
Balance, beginning of period | 40,946,572 | 39,543,991 | 40,152,021 | 39,042,787 | ||||||||||||
Issuance of common stock upon exercise of stock options and pursuant to restricted stock units | 229,282 | 387,256 | 1,023,833 | 888,460 | ||||||||||||
Balance, end of period | 41,175,854 | 39,931,247 | 41,175,854 | 39,931,247 | ||||||||||||
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 | $ | 41 | $ | 39 | $ | 41 | $ | 39 | ||||||||
Issuance of common stock upon exercise of stock options | 0 | 0 | 0 | 0 | ||||||||||||
Issuance of common stock upon exercise of stock options and pursuant to restricted stock units | 0 | 1 | 0 | 1 | ||||||||||||
Balance, end of period | $ | 41 | $ | 40 | $ | 41 | $ | 40 | ||||||||
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 | $ | 292,775 | $ | 281,255 | $ | 287,059 | $ | 276,365 | ||||||||
Issuance of common stock upon exercise of stock options and pursuant to restricted stock units, net of tax | 194 | 794 | 825 | 792 | ||||||||||||
Stock-based compensation expense | 2,495 | 2,072 | 7,580 | 6,964 | ||||||||||||
Balance, end of period | $ | 295,464 | $ | 284,121 | $ | 295,464 | $ | 284,121 | ||||||||
Accumulated deficit | ||||||||||||||||
Balance, beginning of period | $ | (200,438 | ) | $ | (209,773 | ) | $ | (206,438 | ) | $ | (200,625 | ) | ||||
Net income (loss) | (1,020 | ) | 1,314 | 4,980 | (7,834 | ) | ||||||||||
Balance, end of period | $ | (201,458 | ) | $ | (208,459 | ) | $ | (201,458 | ) | $ | (208,459 | ) | ||||
Accumulated other comprehensive loss | ||||||||||||||||
Balance, beginning of period | $ | (362 | ) | $ | (1,086 | ) | $ | (188 | ) | $ | (785 | ) | ||||
Foreign currency translation adjustment | (238 | ) | 345 | (412 | ) | 44 | ||||||||||
Balance, end of period | $ | (600 | ) | $ | (741 | ) | $ | (600 | ) | $ | (741 | ) | ||||
Total stockholders’ equity | $ | 92,576 | $ | 74,090 | $ | 92,576 | $ | 74,090 | ||||||||
Six Months Ended June 30, | ||||||||
2021 | 2020 | |||||||
(in thousands) | ||||||||
Operating activities | ||||||||
Net income (loss) | $ | 6,000 | $ | (9,148 | ) | |||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 4,278 | 4,357 | ||||||
Stock-based compensation | 4,901 | 4,716 | ||||||
Provision for reserves on accounts receivable | 276 | 401 | ||||||
Changes in assets and liabilities: | ||||||||
Accounts receivable | (2,634 | ) | 4,055 | |||||
Prepaid expenses and other current assets | (1,337 | ) | (5,357 | ) | ||||
Other assets | (1,000 | ) | (300 | ) | ||||
Accounts payable | 105 | 2,038 | ||||||
Accrued expenses | (6,053 | ) | (577 | ) | ||||
Operating leases | (960 | ) | 3 | |||||
Deferred revenue | 3,801 | 5,112 | ||||||
Net cash provided by operating activities | 7,377 | 5,300 | ||||||
Investing activities | ||||||||
Purchases of property and equipment | (808 | ) | (1,197 | ) | ||||
Capitalized internal-use software costs | (2,977 | ) | (3,839 | ) | ||||
Net cash used in investing activities | (3,785 | ) | (5,036 | ) | ||||
Financing activities | ||||||||
Proceeds from exercise of stock options | 1,980 | 394 | ||||||
Deferred acquisition payments | (475 | ) | — | |||||
Proceeds from debt | — | 10,000 | ||||||
Debt paydown | — | (5,000 | ) | |||||
Other financing activities | (1,348 | ) | (429 | ) | ||||
Net cash provided by financing activities | 157 | 4,965 | ||||||
Effect of exchange rate changes on cash and cash equivalents | (834 | ) | (235 | ) | ||||
Net increase in cash and cash equivalents | 2,915 | 4,994 | ||||||
Cash and cash equivalents at beginning of period | 37,472 | 22,759 | ||||||
Cash and cash equivalents at end of period | $ | 40,387 | $ | 27,753 | ||||
Supplemental disclosure of cash flow information | ||||||||
Cash paid for operating lease liabilities | $ | 3,165 | $ | 3,561 | ||||
Nine Months Ended September 30, | ||||||||
2021 | 2020 | |||||||
(in thousands) | ||||||||
Operating activities | ||||||||
Net income (loss) | $ | 4,980 | $ | (7,834 | ) | |||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 6,284 | 6,497 | ||||||
Stock-based compensation | 7,234 | 6,724 | ||||||
Provision for reserves on accounts receivable | 246 | 461 | ||||||
Changes in assets and liabilities: | ||||||||
Accounts receivable | 710 | (1,433 | ) | |||||
Prepaid expenses and other current assets | (914 | ) | (6,414 | ) | ||||
Other assets | (1,273 | ) | (1,247 | ) | ||||
Accounts payable | 79 | 104 | ||||||
Accrued expenses | (4,402 | ) | 3,410 | |||||
Operating leases | (903 | ) | (13 | ) | ||||
Deferred revenue | 2,707 | 8,667 | ||||||
Net cash provided by operating activities | 14,748 | 8,922 | ||||||
Investing activities | ||||||||
Purchases of property and equipment | (1,625 | ) | (2,163 | ) | ||||
Capitalized internal-use software costs | (4,657 | ) | (5,108 | ) | ||||
Net cash used in investing activities | (6,282 | ) | (7,271 | ) | ||||
Financing activities | ||||||||
Proceeds from exercise of stock options | 2,200 | 1,207 | ||||||
Deferred acquisition payments | (475 | ) | — | |||||
Proceeds from debt | — | 10,000 | ||||||
Debt paydown | — | (5,000 | ) | |||||
Other financing activities | (1,375 | ) | (448 | ) | ||||
Net cash provided by financing activities | 350 | 5,759 | ||||||
Effect of exchange rate changes on cash and cash equivalents | (1,003 | ) | 163 | |||||
Net increase in cash and cash equivalents | 7,813 | 7,573 | ||||||
Cash and cash equivalents at beginning of period | 37,472 | 22,759 | ||||||
Cash and cash equivalents at end of period | $ | 45,285 | $ | 30,332 | ||||
Supplemental disclosure of cash flow information | ||||||||
Cash paid for operating lease liabilities | $ | 3,505 | $ | 5,087 | ||||
Cash paid for income taxes | $ | 681 | $ | 993 | ||||
Allowance for Credit Losses | ||||
(in thousands) | ||||
Balance as of December 31, 2020 | $ | 648 | ||
Current provision for credit losses | 233 | |||
Write-offs against allowance | (135 | ) | ||
Recoveries | (8 | ) | ||
Balance as of June 30 , 2021 | $ | 738 | ||
Allowance for Credit Losses | ||||
(in thousands) | ||||
Balance as of December 31, 2020 | $ | 648 | ||
Current provision for credit losses | 303 | |||
Write-offs against allowance | (451 | ) | ||
Recoveries | (57 | ) | ||
Balance as of September 30, 2021 | $ | 443 | ||
Accounts Receivable, net | Contract Assets (current) | Deferred Revenue (current) | Deferred Revenue (non- current) | Total Deferred Revenue | Accounts Receivable, | Contract (current) | Deferred Revenue (current) | Deferred Revenue (non- current) | Total Deferred Revenue | |||||||||||||||||||||||||||||||
Balance at December 31, 2020 | $ | 29,305 | $ | 2,078 | $ | 58,741 | $ | 811 | $ | 59,552 | $ | 29,305 | $ | 2,078 | $ | 58,741 | $ | 811 | $ | 59,552 | ||||||||||||||||||||
Balance at June 30, 2021 | 31,445 | 2,077 | 62,433 | 434 | 62,867 | |||||||||||||||||||||||||||||||||||
Balance at September 30, 2021 | 28,138 | 2,311 | 61,739 | 50 | 61,789 |
June 30, 2021 | September 30, 2021 | |||||||||||||||||||||||
Description | Contracted Maturity | Cost | Fair Market Value | Contracted Maturity | Cost | Fair Market Value | ||||||||||||||||||
Cash | Demand | $ | 40,346 | $ | 40,346 | Demand | $ | 45,244 | $ | 45,244 | ||||||||||||||
Money market funds | Demand | 41 | 41 | Demand | 41 | 41 | ||||||||||||||||||
Total cash and cash equivalents | $ | 40,387 | $ | 40,387 | $ | 45,285 | $ | 45,285 | ||||||||||||||||
December 31, 2020 | ||||||||||||
Description | Contracted Maturity | Cost | Fair Market Value | |||||||||
Cash | Demand | $ | 37,431 | $ | 37,431 | |||||||
Money market funds | Demand | 41 | 41 | |||||||||
Total cash and cash equivalents | $ | 37,472 | $ | 37,472 | ||||||||
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||
(in thousands) | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||
Net income (loss) | $ | 870 | $ | (1,295 | ) | $ | 6,000 | $ | (9,148 | ) | ||||||||||||||||||||||
Net (loss) income | $ | (1,020 | ) | $ | 1,314 | $ | 4,980 | $ | (7,834 | ) | ||||||||||||||||||||||
Weighted average shares used in computing basic earnings per share | 40,615,149 | 39,291,649 | 40,385,866 | 39,136,394 | 40,934,689 | 39,682,337 | 40,570,817 | 39,319,703 | ||||||||||||||||||||||||
Effect of weighted average dilutive stock-based awards | 1,593,784 | 0 | 2,004,775 | 0 | 0 | 963,645 | 1,666,621 | 0 | ||||||||||||||||||||||||
Weighted average shares used in computing diluted earnings per share | 42,208,933 | 39,291,649 | 42,390,641 | 39,136,394 | 40,934,689 | 40,645,982 | 42,237,438 | 39,319,703 | ||||||||||||||||||||||||
Net income (loss) per share—basic and diluted | ||||||||||||||||||||||||||||||||
Net (loss) income per share—basic and diluted | ||||||||||||||||||||||||||||||||
Basic | $ | 0.02 | $ | (0.03 | ) | $ | 0.15 | $ | (0.23 | ) | $ | (0.02 | ) | $ | 0.03 | $ | 0.12 | $ | (0.20 | ) | ||||||||||||
Diluted | $ | 0.02 | $ | (0.03 | ) | $ | 0.14 | $ | (0.23 | ) | $ | (0.02 | ) | $ | 0.03 | $ | 0.12 | $ | (0.20 | ) |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
(shares in thousands) | 2021 | 2020 | 2021 | 2020 | ||||||||||||
Options outstanding | 145 | 2,372 | 122 | 2,372 | ||||||||||||
Restricted stock units outstanding | 68 | 3,580 | 68 | 3,580 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
(shares in thousands) | 2021 | 2020 | 2021 | 2020 | ||||||||||||
Options outstanding | 1,803 | 1,570 | 147 | 2,234 | ||||||||||||
Restricted stock units outstanding | 3,185 | 155 | 56 | 3,264 |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||
Weighted-average fair value of options granted during the period | $ | 6.75 | $ | 3.76 | $ | 7.72 | $ | 3.48 | $ | 6.29 | $ | 4.86 | $ | 7.51 | $ | 4.01 | ||||||||||||||||
Risk-free interest rate | 1.22 | % | 0.62 | % | 1.16 | % | 1.03 | % | 1.14 | % | 0.33 | % | 1.16 | % | 0.76 | % | ||||||||||||||||
Expected volatility | 48 | % | 48 | % | 48 | % | 46 | % | 48 | % | 47 | % | 48 | % | 46 | % | ||||||||||||||||
Expected life (in years) | 6.2 | 6.3 | 6.2 | 6.2 | 6.2 | 5.9 | 6.2 | 6.1 | ||||||||||||||||||||||||
Expected dividend yield | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||
Stock-based compensation: | ||||||||||||||||||||||||||||||||
Cost of subscription and support revenue | $ | 187 | $ | 123 | $ | 344 | $ | 313 | $ | 157 | $ | 139 | $ | 501 | $ | 452 | ||||||||||||||||
Cost of professional services and other revenue | 118 | 90 | 186 | 170 | 113 | 63 | 299 | 233 | ||||||||||||||||||||||||
Research and development | 531 | 257 | 853 | 697 | 408 | 142 | 1,261 | 839 | ||||||||||||||||||||||||
Sales and marketing | 762 | 761 | 1,499 | 1,672 | 583 | 768 | 2,082 | 2,440 | ||||||||||||||||||||||||
General and administrative | 1,011 | 867 | 2,019 | 1,864 | 1,072 | 896 | 3,091 | 2,760 | ||||||||||||||||||||||||
$ | 2,609 | $ | 2,098 | $ | 4,901 | $ | 4,716 | $ | 2,333 | $ | 2,008 | $ | 7,234 | $ | 6,724 | |||||||||||||||||
Number of Shares | Weighted-Average Exercise Price | Weighted-Average Remaining Contractual Term (In Years) | Aggregate Intrinsic Value (1) | Number of Shares | Weighted-Average Exercise Price | Weighted-Average Remaining Contractual Term (In Years) | Aggregate Intrinsic Value (1) | |||||||||||||||||||||||||
Outstanding at December 31, 2020 | 2,110,486 | $ | 9.19 | 2,110,486 | $ | 9.19 | ||||||||||||||||||||||||||
Granted | 79,230 | 16.51 | 92,905 | 16.05 | ||||||||||||||||||||||||||||
Exercised | (226,525 | ) | 8.74 | $ | 2,616 | (254,502 | ) | 8.65 | $ | 2,724 | ||||||||||||||||||||||
Canceled | (64,506 | ) | 9.95 | (145,930 | ) | 10.17 | ||||||||||||||||||||||||||
Outstanding at June 30, 2021 | 1,898,685 | $ | 9.54 | 6.54 | $ | 9,385 | ||||||||||||||||||||||||||
Outstanding at September 30, 2021 | 1,802,959 | $ | 9.56 | 5.94 | $ | 4,177 | ||||||||||||||||||||||||||
Exercisable at June 30, 2021 | 1,275,816 | $ | 8.93 | 5.81 | $ | 6,968 | ||||||||||||||||||||||||||
Exercisable at September 30, 2021 | 1,313,116 | $ | 8.96 | 5.23 | $ | 3,522 | ||||||||||||||||||||||||||
(1) | The aggregate intrinsic value was calculated based on the positive difference between the fair value of the Company’s common stock on |
S-RSU Shares | Weighted Average Grant Date Fair Value | P-RSU Shares | Weighted Average Grant Date Fair Value | Total RSU Shares | Weighted Average Grant Date Fair Value | S-RSU Shares | Weighted Average Grant Date Fair Value | P-RSU Shares | Weighted Average Grant Date Fair Value | Total RSU Shares | Weighted Average Grant Date Fair Value | |||||||||||||||||||||||||||||||||||||
Unvested at December 31, 2020 | 2,000,416 | $ | 10.40 | 1,587,801 | $ | 10.30 | 3,588,217 | $ | 10.35 | 2,000,416 | $ | 10.40 | 1,587,801 | $ | 10.30 | 3,588,217 | $ | 10.35 | ||||||||||||||||||||||||||||||
Granted | 847,994 | 14.78 | 0 | 0 | 847,994 | 14.78 | 1,039,266 | 14.44 | 64,011 | 12.65 | 1,103,277 | 14.33 | ||||||||||||||||||||||||||||||||||||
Vested and issued | (345,513 | ) | 8.65 | (181,910 | ) | 8.74 | (527,423 | ) | 8.68 | (546,818 | ) | 9.11 | (181,910 | ) | 8.74 | (728,728 | ) | 9.01 | ||||||||||||||||||||||||||||||
Canceled | (198,131 | ) | 10.33 | (196,840 | ) | 8.76 | (394,971 | ) | 9.52 | (411,567 | ) | 11.38 | (365,909 | ) | 9.50 | (777,476 | ) | 10.49 | ||||||||||||||||||||||||||||||
Unvested at June 30, 2021 | 2,304,766 | $ | 12.26 | 1,209,051 | $ | 10.79 | 3,513,817 | $ | 11.75 | |||||||||||||||||||||||||||||||||||||||
Unvested at September 30, 2021 | 2,081,297 | $ | 12.56 | 1,103,993 | $ | 10.97 | 3,185,290 | $ | 12.00 | |||||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||
Revenue: | ||||||||||||||||||||||||||||||||
North America | $ | 29,398 | $ | 26,039 | $ | 59,784 | $ | 51,038 | $ | 29,420 | $ | 27,515 | $ | 89,204 | $ | 78,553 | ||||||||||||||||
Europe | 9,547 | 8,427 | 18,470 | 16,888 | 9,689 | 8,435 | 28,159 | 25,323 | ||||||||||||||||||||||||
Japan | 5,370 | 5,554 | 13,078 | 11,656 | 6,185 | 5,688 | 19,263 | 17,344 | ||||||||||||||||||||||||
Asia Pacific | 7,016 | 7,714 | 14,675 | 14,584 | 6,746 | 7,211 | 21,421 | 21,795 | ||||||||||||||||||||||||
Other | 141 | 192 | 282 | 413 | 123 | 235 | 405 | 648 | ||||||||||||||||||||||||
Total revenue | $ | 51,472 | $ | 47,926 | $ | 106,289 | $ | 94,579 | $ | 52,163 | $ | 49,084 | $ | 158,452 | $ | 143,663 | ||||||||||||||||
ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
Six Months Ended June 30, | Nine Months Ended September 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Customers (at period end) | ||||||||||||||||
Premium | 2,280 | 2,279 | 2,265 | 2,267 | ||||||||||||
Volume | 983 | 1,144 | 940 | 1,114 | ||||||||||||
Total customers (at period end) | 3,263 | 3,423 | 3,205 | 3,381 | ||||||||||||
Net revenue retention rate | 98 | % | 92 | % | 97.1 | % | 93.8 | % | ||||||||
Recurring dollar retention rate | 86 | % | 84 | % | 88 | % | 88 | % | ||||||||
Average annual subscription revenue per premium customer, excluding Starter edition customers (in thousands) | $ | 92.2 | $ | 86.4 | $ | 93.9 | $ | 87.3 | ||||||||
Average annual subscription revenue per premium customer for Starter edition customers only (in thousands) | $ | 4.5 | $ | 4.5 | $ | 4.6 | $ | 4.5 | ||||||||
Total backlog, excluding professional services engagements (in millions) | $ | 152.8 | $ | 136.9 | $ | 148.6 | $ | 144.2 | ||||||||
Total backlog to be recognized over next 12 months, excluding professional services engagements (in millions) | $ | 119.8 | $ | 108.8 | $ | 115.0 | $ | 109.6 |
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 | 16,139 | 17,984 | ||||||||||||
Sales and marketing | 18,130 | 13,383 | 34,279 | 27,557 | ||||||||||||
General and administrative | 7,418 | 6,407 | 14,477 | 12,939 | ||||||||||||
Merger-related | 255 | 259 | 255 | 5,768 | ||||||||||||
Other (benefit) expense | — | — | (1,965 | ) | — | |||||||||||
Total operating expenses | 33,658 | 29,180 | 63,185 | 64,248 | ||||||||||||
Income (loss) from operations | 590 | (1,153 | ) | 6,712 | (8,210 | ) | ||||||||||
Other expense, net | 117 | (27 | ) | (618 | ) | (495 | ) | |||||||||
Income (loss) before income taxes | 707 | (1,180 | ) | 6,094 | (8,705 | ) | ||||||||||
Provision for income taxes | (163 | ) | 115 | 94 | 443 | |||||||||||
Net income (loss) | $ | 870 | $ | (1,295 | ) | $ | 6,000 | $ | (9,148 | ) | ||||||
Net income (loss) per share—basic and diluted | ||||||||||||||||
Basic | $ | 0.02 | $ | (0.03 | ) | $ | 0.15 | $ | (0.23 | ) | ||||||
Diluted | $ | 0.02 | $ | (0.03 | ) | $ | 0.14 | $ | (0.23 | ) | ||||||
Weighted-average shares—basic and diluted | ||||||||||||||||
Basic | 40,615,149 | 39,291,649 | 40,385,866 | 39,136,394 | ||||||||||||
Diluted | 42,208,933 | 39,291,649 | 42,390,641 | 39,136,394 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
(in thousands, except share and per share data) | ||||||||||||||||
Revenue: | ||||||||||||||||
Subscription and support revenue | $ | 49,226 | $ | 46,338 | $ | 148,667 | $ | 136,613 | ||||||||
Professional services and other revenue | 2,937 | 2,746 | 9,785 | 7,050 | ||||||||||||
Total revenue | 52,163 | 49,084 | 158,452 | 143,663 | ||||||||||||
Cost of revenue: | ||||||||||||||||
Cost of subscription and support revenue | 16,406 | 15,735 | 46,840 | 50,290 | ||||||||||||
Cost of professional services and other revenue | 2,247 | 2,363 | 8,205 | 6,349 | ||||||||||||
Total cost of revenue | 18,653 | 18,098 | 55,045 | 56,639 | ||||||||||||
Gross profit | 33,510 | 30,986 | 103,407 | 87,024 | ||||||||||||
Operating expenses: | ||||||||||||||||
Research and development | 7,902 | 8,215 | 24,041 | 26,199 | ||||||||||||
Sales and marketing | 18,451 | 14,813 | 52,730 | 42,370 | ||||||||||||
General and administrative | 7,345 | 6,694 | 21,822 | 19,633 | ||||||||||||
Merger-related | 45 | — | 300 | 5,768 | ||||||||||||
Other (benefit) expense | — | — | (1,965 | ) | — | |||||||||||
Total operating expenses | 33,743 | 29,722 | 96,928 | 93,970 | ||||||||||||
(Loss) income from operations | (233 | ) | 1,264 | 6,479 | (6,946 | ) | ||||||||||
Other (expense) income, net | (319 | ) | 204 | (937 | ) | (291 | ) | |||||||||
(Loss) income before income taxes | (552 | ) | 1,468 | 5,542 | (7,237 | ) | ||||||||||
Provision for income taxes | 468 | 154 | 562 | 597 | ||||||||||||
Net (loss) income | $ | (1,020 | ) | $ | 1,314 | $ | 4,980 | $ | (7,834 | ) | ||||||
Net (loss) income per share—basic and diluted | ||||||||||||||||
Basic | $ | (0.02 | ) | $ | 0.03 | $ | 0.12 | $ | (0.20 | ) | ||||||
Diluted | $ | (0.02 | ) | $ | 0.03 | $ | 0.12 | $ | (0.20 | ) | ||||||
Weighted-average shares—basic and diluted | ||||||||||||||||
Basic | 40,934,689 | 39,682,337 | 40,570,817 | 39,319,703 | ||||||||||||
Diluted | 40,934,689 | 40,645,982 | 42,237,438 | 39,319,703 |
Three Months Ended June 30, | Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | Change | 2021 | 2020 | Change | |||||||||||||||||||||||||||||||||||||||||||
Revenue by Product Line | Amount | Percentage of Revenue | Amount | Percentage of Revenue | Amount | % | Amount | Percentage of Revenue | Amount | Percentage of Revenue | Amount | % | ||||||||||||||||||||||||||||||||||||
(in thousands, except percentages) | (in thousands, except percentages) | |||||||||||||||||||||||||||||||||||||||||||||||
Premium | $ | 50,694 | 98 | % | $ | 46,941 | 98 | % | $ | 3,753 | 8 | % | $ | 51,466 | 99 | % | $ | 48,175 | 98 | % | $ | 3,291 | 7 | % | ||||||||||||||||||||||||
Volume | 778 | 2 | 985 | 2 | (207 | ) | (21 | ) | 697 | 1 | 909 | 2 | (212 | ) | (23 | ) | ||||||||||||||||||||||||||||||||
Total | $ | 51,472 | 100 | % | $ | 47,926 | 100 | % | $ | 3,546 | 8 | % | $ | 52,163 | 100 | % | $ | 49,084 | 100 | % | $ | 3,079 | 6 | % | ||||||||||||||||||||||||
Three Months Ended June 30, | Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | Change | 2021 | 2020 | Change | |||||||||||||||||||||||||||||||||||||||||||
Revenue by Type | Amount | Percentage of Revenue | Amount | Percentage of Revenue | Amount | % | Amount | Percentage of Revenue | Amount | Percentage of Revenue | Amount | % | ||||||||||||||||||||||||||||||||||||
(in thousands, except percentages) | (in thousands, except percentages) | |||||||||||||||||||||||||||||||||||||||||||||||
Subscription and support | $ | 48,602 | 94 | % | $ | 45,617 | 96 | % | $ | 2,985 | 7 | % | $ | 49,226 | 94 | % | $ | 46,338 | 96 | % | $ | 2,888 | 6 | % | ||||||||||||||||||||||||
Professional services and other | 2,870 | 6 | 2,309 | 4 | 561 | 24 | 2,937 | 6 | 2,746 | 4 | 191 | 7 | ||||||||||||||||||||||||||||||||||||
Total | $ | 51,472 | 100 | % | $ | 47,926 | 100 | % | $ | 3,546 | 8 | % | $ | 52,163 | 100 | % | $ | 49,084 | 100 | % | $ | 3,079 | 6 | % | ||||||||||||||||||||||||
Three Months Ended June 30, | Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | Change | 2021 | 2020 | Change | |||||||||||||||||||||||||||||||||||||||||||
Revenue by Geography | Amount | Percentage of Revenue | Amount | Percentage of Revenue | Amount | % | Amount | Percentage of Revenue | Amount | Percentage of Revenue | Amount | % | ||||||||||||||||||||||||||||||||||||
(in thousands, except percentages) | (in thousands, except percentages) | |||||||||||||||||||||||||||||||||||||||||||||||
North America | $ | 29,398 | 57 | % | $ | 26,039 | 54 | % | $ | 3,359 | 13 | % | $ | 29,420 | 56 | % | $ | 27,515 | 56 | % | $ | 1,905 | 7 | % | ||||||||||||||||||||||||
Europe | 9,547 | 19 | 8,427 | 18 | 1,120 | 13 | 9,689 | 19 | 8,435 | 17 | 1,254 | 15 | ||||||||||||||||||||||||||||||||||||
Japan | 5,370 | 10 | 5,554 | 12 | (184 | ) | (3 | ) | 6,185 | 12 | 5,688 | 12 | 497 | 9 | ||||||||||||||||||||||||||||||||||
Asia Pacific | 7,016 | 14 | 7,714 | 16 | (698 | ) | (9 | ) | 6,746 | 13 | 7,211 | 15 | (465 | ) | (6 | ) | ||||||||||||||||||||||||||||||||
Other | 141 | — | 192 | — | (51 | ) | (27 | ) | 123 | — | 235 | — | (112 | ) | (48 | ) | ||||||||||||||||||||||||||||||||
International subtotal | 22,074 | 43 | 21,887 | 46 | 187 | 1 | 22,743 | 44 | 21,569 | 44 | 1,174 | 5 | ||||||||||||||||||||||||||||||||||||
Total | $ | 51,472 | 100 | % | $ | 47,926 | 100 | % | $ | 3,546 | 8 | % | $ | 52,163 | 100 | % | $ | 49,084 | 100 | % | $ | 3,079 | 6 | % | ||||||||||||||||||||||||
Three Months Ended June 30, | Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | Change | 2021 | 2020 | Change | |||||||||||||||||||||||||||||||||||||||||||
Cost of Revenue | Amount | Percentage of Related Revenue | Amount | Percentage of Related Revenue | Amount | % | Amount | Percentage of Related Revenue | Amount | Percentage of Related Revenue | Amount | % | ||||||||||||||||||||||||||||||||||||
(in thousands, except percentages) | (in thousands, except percentages) | |||||||||||||||||||||||||||||||||||||||||||||||
Subscription and support | $ | 14,756 | 30 | % | $ | 17,807 | 39 | % | $ | (3,051 | ) | (17 | )% | $ | 16,406 | 33 | % | $ | 15,735 | 34 | % | $ | 671 | 4 | % | |||||||||||||||||||||||
Professional services and other | 2,468 | 86 | 2,092 | 91 | 376 | 18 | 2,247 | 77 | 2,363 | 86 | (116 | ) | (5 | ) | ||||||||||||||||||||||||||||||||||
Total | $ | 17,224 | 33 | % | $ | 19,899 | 42 | % | $ | (2,675 | ) | (13 | )% | $ | 18,653 | 36 | % | $ | 18,098 | 37 | % | $ | 555 | 3 | % | |||||||||||||||||||||||
Three Months Ended June 30, | Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | Change | 2021 | 2020 | Change | |||||||||||||||||||||||||||||||||||||||||||
Gross Profit | Amount | Percentage of Related Revenue | Amount | Percentage of Related Revenue | Amount | % | Amount | Percentage of Related Revenue | Amount | Percentage of Related Revenue | Amount | % | ||||||||||||||||||||||||||||||||||||
(in thousands, except percentages) | (in thousands, except percentages) | |||||||||||||||||||||||||||||||||||||||||||||||
Subscription and support | $ | 33,846 | 70 | % | $ | 27,810 | 61 | % | $ | 6,036 | 22 | % | $ | 32,820 | 67 | % | $ | 30,603 | 66 | % | $ | 2,217 | 7 | % | ||||||||||||||||||||||||
Professional services and other | 402 | 14 | 217 | 9 | 185 | 85 | % | 690 | 23 | 383 | 14 | 307 | 80 | % | ||||||||||||||||||||||||||||||||||
Total | $ | 34,248 | 67 | % | $ | 28,027 | 58 | % | $ | 6,221 | 22 | % | $ | 33,510 | 64 | % | $ | 30,986 | 63 | % | $ | 2,524 | 8 | % | ||||||||||||||||||||||||
Three Months Ended June 30, | Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | Change | 2021 | 2020 | Change | |||||||||||||||||||||||||||||||||||||||||||
Operating Expenses | Amount | Percentage of Revenue | Amount | Percentage of Revenue | Amount | % | Amount | Percentage of Revenue | Amount | Percentage of Revenue | Amount | % | ||||||||||||||||||||||||||||||||||||
(in thousands, except percentages) | (in thousands, except percentages) | |||||||||||||||||||||||||||||||||||||||||||||||
Research and development | $ | 7,855 | 15 | % | $ | 9,131 | 19 | % | $ | (1,276 | ) | (14 | )% | $ | 7,902 | 15 | % | $ | 8,215 | 17 | % | $ | (313 | ) | (4 | )% | ||||||||||||||||||||||
Sales and marketing | 18,130 | 35 | 13,383 | 28 | 4,747 | 35 | 18,451 | 35 | 14,813 | 30 | 3,638 | 25 | ||||||||||||||||||||||||||||||||||||
General and administrative | 7,418 | 14 | 6,407 | 13 | 1,011 | 16 | 7,345 | 14 | 6,694 | 14 | 651 | 10 | ||||||||||||||||||||||||||||||||||||
Merger-related | 255 | — | 259 | 1 | (4 | ) | (2 | ) | 45 | — | — | — | 45 | N/A | ||||||||||||||||||||||||||||||||||
Total | $ | 33,658 | 65 | % | $ | 29,180 | 61 | % | $ | 4,478 | 15 | % | $ | 33,743 | 65 | % | $ | 29,722 | 61 | % | $ | 4,021 | 14 | % | ||||||||||||||||||||||||
Six Months Ended June 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | Change | 2021 | 2020 | Change | |||||||||||||||||||||||||||||||||||||||||||
Revenue by Product Line | Amount | Percentage of Revenue | Amount | Percentage of Revenue | Amount | % | Amount | Percentage of Revenue | Amount | Percentage of Revenue | Amount | % | ||||||||||||||||||||||||||||||||||||
(in thousands, except percentages) | (in thousands, except percentages) | |||||||||||||||||||||||||||||||||||||||||||||||
Premium | $ | 104,716 | 99 | % | $ | 92,728 | 98 | % | $ | 11,988 | 13 | % | $ | 156,182 | 99 | % | $ | 140,904 | 98 | % | $ | 15,278 | 11 | % | ||||||||||||||||||||||||
Volume | 1,573 | 1 | 1,851 | 2 | (278 | ) | (15 | ) | 2,270 | 1 | 2,759 | 2 | (489 | ) | (18 | ) | ||||||||||||||||||||||||||||||||
Total | $ | 106,289 | 100 | % | $ | 94,579 | 100 | % | $ | 11,710 | 12 | % | $ | 158,452 | 100 | % | $ | 143,663 | 100 | % | $ | 14,789 | 10 | % | ||||||||||||||||||||||||
Six Months Ended June 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | Change | 2021 | 2020 | Change | |||||||||||||||||||||||||||||||||||||||||||
Revenue by Type | Amount | Percentage of Revenue | Amount | Percentage of Revenue | Amount | % | Amount | Percentage of Revenue | Amount | Percentage of Revenue | Amount | % | ||||||||||||||||||||||||||||||||||||
(in thousands, except percentages) | (in thousands, except percentages) | |||||||||||||||||||||||||||||||||||||||||||||||
Subscription and support | $ | 99,441 | 94 | % | $ | 90,275 | 95 | % | $ | 9,166 | 10 | % | $ | 148,667 | 94 | % | $ | 136,613 | 95 | % | $ | 12,054 | 9 | % | ||||||||||||||||||||||||
Professional services and other | 6,848 | 6 | 4,304 | 5 | 2,544 | 59 | 9,785 | 6 | 7,050 | 5 | 2,735 | 39 | ||||||||||||||||||||||||||||||||||||
Total | $ | 106,289 | 100 | % | $ | 94,579 | 100 | % | $ | 11,710 | 12 | % | $ | 158,452 | 100 | % | $ | 143,663 | 100 | % | $ | 14,789 | 10 | % | ||||||||||||||||||||||||
Six Months Ended June 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | Change | 2021 | 2020 | Change | |||||||||||||||||||||||||||||||||||||||||||
Revenue by Geography | Amount | Percentage of Revenue | Amount | Percentage of Revenue | Amount | % | Amount | Percentage of Revenue | Amount | Percentage of Revenue | Amount | % | ||||||||||||||||||||||||||||||||||||
(in thousands, except percentages) | (in thousands, except percentages) | |||||||||||||||||||||||||||||||||||||||||||||||
North America | $ | 59,784 | 57 | % | $ | 51,038 | 54 | % | $ | 8,746 | 17 | % | $ | 89,204 | 56 | % | $ | 78,553 | 55 | % | $ | 10,651 | 14 | % | ||||||||||||||||||||||||
Europe | 18,470 | 17 | 16,888 | 18 | 1,582 | 9 | 28,159 | 18 | 25,323 | 18 | 2,836 | 11 | ||||||||||||||||||||||||||||||||||||
Japan | 13,078 | 12 | 11,656 | 12 | 1,422 | 12 | 19,263 | 12 | 17,344 | 12 | 1,919 | 11 | ||||||||||||||||||||||||||||||||||||
Asia Pacific | 14,675 | 14 | 14,584 | 16 | 91 | 1 | 21,421 | 14 | 21,795 | 15 | (374 | ) | (2 | ) | ||||||||||||||||||||||||||||||||||
Other | 282 | — | 413 | — | (131 | ) | (32 | ) | 405 | — | 648 | — | (243 | ) | (38 | ) | ||||||||||||||||||||||||||||||||
International subtotal | 46,505 | 43 | 43,541 | 46 | 2,964 | 7 | 69,248 | 44 | 65,110 | 45 | 4,138 | 6 | ||||||||||||||||||||||||||||||||||||
Total | $ | 106,289 | 100 | % | $ | 94,579 | 100 | % | $ | 11,710 | 12 | % | $ | 158,452 | 100 | % | $ | 143,663 | 100 | % | $ | 14,789 | 10 | % | ||||||||||||||||||||||||
Six Months Ended June 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | Change | 2021 | 2020 | Change | |||||||||||||||||||||||||||||||||||||||||||
Cost of Revenue | Amount | Percentage of Related Revenue | Amount | Percentage of Related Revenue | Amount | % | Amount | Percentage of Related Revenue | Amount | Percentage of Related Revenue | Amount | % | ||||||||||||||||||||||||||||||||||||
(in thousands, except percentages) | (in thousands, except percentages) | |||||||||||||||||||||||||||||||||||||||||||||||
Subscription and support | $ | 30,434 | 31 | % | $ | 34,555 | 38 | % | $ | (4,121 | ) | (12 | )% | $ | 46,840 | 32 | % | $ | 50,290 | 37 | % | $ | (3,450 | ) | (7 | )% | ||||||||||||||||||||||
Professional services and other | 5,958 | 87 | 3,986 | 93 | 1,972 | 49 | 8,205 | 84 | 6,349 | 90 | 1,856 | 29 | ||||||||||||||||||||||||||||||||||||
Total | $ | 36,392 | 34 | % | $ | 38,541 | 41 | % | $ | (2,149 | ) | (6 | )% | $ | 55,045 | 35 | % | $ | 56,639 | 39 | % | $ | (1,594 | ) | (3 | )% | ||||||||||||||||||||||
Six Months Ended June 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | Change | 2021 | 2020 | Change | |||||||||||||||||||||||||||||||||||||||||||
Gross Profit | Amount | Percentage of Related Revenue | Amount | Percentage of Related Revenue | Amount | % | Amount | Percentage of Related Revenue | Amount | Percentage of Related Revenue | Amount | % | ||||||||||||||||||||||||||||||||||||
(in thousands, except percentages) | (in thousands, except percentages) | |||||||||||||||||||||||||||||||||||||||||||||||
Subscription and support | $ | 69,007 | 69 | % | $ | 55,720 | 62 | % | $ | 13,287 | 24 | % | $ | 101,827 | 68 | % | $ | 86,323 | 63 | % | $ | 15,504 | 18 | % | ||||||||||||||||||||||||
Professional services and other | 890 | 13 | 318 | 7 | 572 | 180 | 1,580 | 16 | 701 | 10 | 879 | 125 | ||||||||||||||||||||||||||||||||||||
Total | $ | 69,897 | 66 | % | $ | 56,038 | 59 | % | $ | 13,859 | 25 | % | $ | 103,407 | 65 | % | $ | 87,024 | 61 | % | $ | 16,383 | 19 | % | ||||||||||||||||||||||||
Six Months Ended June 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | Change | 2021 | 2020 | Change | |||||||||||||||||||||||||||||||||||||||||||
Operating Expenses | Amount | Percentage of Revenue | Amount | Percentage of Revenue | Amount | % | Amount | Percentage of Revenue | Amount | Percentage of Revenue | Amount | % | ||||||||||||||||||||||||||||||||||||
(in thousands, except percentages) | (in thousands, except percentages) | |||||||||||||||||||||||||||||||||||||||||||||||
Research and development | $ | 16,139 | 15 | % | $ | 17,984 | 19 | % | $ | (1,845 | ) | (10 | )% | $ | 24,041 | 15 | % | $ | 26,199 | 18 | % | $ | (2,158 | ) | (8 | )% | ||||||||||||||||||||||
Sales and marketing | 34,279 | 32 | 27,557 | 29 | 6,722 | 24 | 52,730 | 33 | 42,370 | 29 | 10,360 | 24 | ||||||||||||||||||||||||||||||||||||
General and administrative | 14,477 | 14 | 12,939 | 14 | 1,538 | 12 | 21,822 | 14 | 19,633 | 14 | 2,189 | 11 | ||||||||||||||||||||||||||||||||||||
Merger-related | 255 | 0 | 5,768 | 6 | (5,513 | ) | (96 | ) | 300 | 0 | 5,768 | 4 | (5,468 | ) | (95 | ) | ||||||||||||||||||||||||||||||||
Other (benefit) expense | (1,965 | ) | (4 | ) | — | — | (1,965 | ) | N/A | (1,965 | ) | (1 | ) | — | — | (1,965 | ) | N/A | ||||||||||||||||||||||||||||||
Total | $ | 63,185 | 59 | % | $ | 64,248 | 68 | % | $ | (1,063 | ) | (2 | )% | $ | 96,928 | 61 | % | $ | 93,970 | 65 | % | $ | 2,958 | 3 | % | |||||||||||||||||||||||
Six Months Ended June 30, | Nine Months Ended September 30, | |||||||||||||||
Condensed Consolidated Statements of Cash Flow Data | 2021 | 2020 | 2021 | 2020 | ||||||||||||
(in thousands) | (in thousands) | |||||||||||||||
Cash flows provided by operating activities | $ | 7,377 | $ | 5,300 | $ | 14,748 | $ | 8,922 | ||||||||
Cash flows used in investing activities | $ | (3,785 | ) | $ | (5,036 | ) | $ | (6,282 | ) | $ | (7,271 | ) | ||||
Cash flows provided by financing activities | $ | 157 | $ | 4,965 | $ | 350 | $ | 5,759 |
ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK (in thousands, except share and per share data, unless otherwise noted) |
Three Months Ended June 30, | Three Months Ended September 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Revenues generated in locations outside the United States | 47 | % | 50 | % | 47 | % | 48 | % | ||||||||
Revenues in currencies other than the United States dollar (1) | 27 | % | 30 | % | 29 | % | 29 | % | ||||||||
Expenses in currencies other than the United States dollar (1) | 17 | % | 15 | % | 18 | % | 17 | % |
Six Months Ended June 30, | Nine Months Ended September 30, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Revenues generated in locations outside the United States | 47 | % | 50 | % | 47 | % | 50 | % | ||||||||
Revenues in currencies other than the United States dollar (1) | 28 | % | 30 | % | 29 | % | 30 | % | ||||||||
Expenses in currencies other than the United States dollar (1) | 16 | % | 15 | % | 17 | % | 16 | % |
(1) | Percentage of revenues and expenses denominated in foreign currency for the three and |
Three Months Ended June 30, 2021 | Three Months Ended June 30, 2020 | Three Months Ended September 30, 2021 | Three Months Ended September 30, 2020 | |||||||||||||||||||||||||||||
Revenues | Expenses | Revenues | Expenses | Revenues | Expenses | Revenues | Expenses | |||||||||||||||||||||||||
Euro | 8 | % | 1 | % | 8 | % | 1 | % | 8 | % | 2 | % | 8 | % | 1 | % | ||||||||||||||||
British pound | 6 | 5 | 6 | 5 | 6 | 5 | 6 | 6 | ||||||||||||||||||||||||
Japanese Yen | 10 | 3 | 12 | 2 | 12 | 3 | 12 | 3 | ||||||||||||||||||||||||
Other | 3 | 8 | 4 | 7 | 3 | 8 | 3 | 7 | ||||||||||||||||||||||||
Total | 27 | % | 17 | % | 30 | % | 15 | % | 29 | % | 18 | % | 29 | % | 17 | % |
Six Months Ended June 30, 2021 | Six Months Ended June 30, 2020 | Nine Months Ended September 30, 2021 | Nine Months Ended September 30, 2020 | |||||||||||||||||||||||||||||
Revenues | Expenses | Revenues | Expenses | Revenues | Expenses | Revenues | Expenses | |||||||||||||||||||||||||
Euro | 7 | % | 0 | % | 8 | % | 1 | % | 8 | % | 1 | % | 8 | % | 1 | % | ||||||||||||||||
British pound | 6 | 5 | 6 | 5 | 6 | 5 | 6 | 6 | ||||||||||||||||||||||||
Japanese Yen | 12 | 3 | 12 | 2 | 12 | 3 | 12 | 3 | ||||||||||||||||||||||||
Other | 3 | 8 | 4 | 7 | 3 | 8 | 4 | 6 | ||||||||||||||||||||||||
Total | 28 | % | 16 | % | 30 | % | 15 | % | 29 | % | 17 | % | 30 | % | 16 | % |
ITEM 4. | CONTROLS AND PROCEDURES |
ITEM 1. | LEGAL PROCEEDINGS |
ITEM 1A. | RISK FACTORS |
ITEM 5. | OTHER INFORMATION |
ITEM 6. | EXHIBITS |
(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. | ||||||
(Registrant) | ||||||
Date: | By: | |||||
/s/ Jeff Ray | ||||||
Jeff Ray | ||||||
Chief Executive Officer | ||||||
( | ||||||
Date: | By: | |||||
/s/ Robert Noreck | ||||||
Robert Noreck | ||||||
Chief Financial Officer | ||||||
( |