Brightcove Inc. BCOV reported mixed second-quarter fiscal 2017 results wherein the bottom line missed the Zacks Consensus Estimate by a penny but the top line exceeded the same.
Adjusted loss (excluding all other one-time items but including stock-based compensation) of 20 cents per share was wider than the Zacks Consensus Estimate of a loss of 19 cents. On a year-on-year basis, this was also higher than the adjusted loss of 5 cents in the second-quarter 2016.
On a non-GAAP basis, Brightcove reported diluted net loss of 16 cents per share, compared with the loss of a penny in the year-ago period.
However, revenues increased 4.9% from the year-ago quarter to $38.8 million, which outpaced the Zacks Consensus Estimate of $37.2 million.
We note that Brightcove shares have fallen 19.2% so far this year, substantially outperforming the industry’s rally of 37.1%.
The company’s Professional services and other revenue increased 71.5% year over year to $3.2 million in second-quarter 2017, attributable to several large over-the-top content (OTT) projects.
Subscription and support revenue of $35.5 million was up slightly compared with $35.1 million in the year-ago period.
Non-GAAP gross profit for second-quarter 2017 was $22.8 million, down from $24.1 million reported in the year-ago period.
The company’s non-GAAP operating loss was $5.5 million, compared with $302,000 reported year over year for second-quarter 2016.
Brightcove Inc. Price, Consensus and EPS Surprise
Brightcove Inc. Price, Consensus and EPS Surprise | Brightcove Inc. Quote
Balance Sheet & Cash Flow
Brightcove exited the quarter with cash and cash equivalents of $28.4 million, compared with $29.2 million as of the previous quarter ended Mar 31, 2017.
Cash flow used in operations was $119,000 for second-quarter 2017, compared with cash flow from operations of $2 million in the year-ago quarter.
The company provided guidance for third-quarter fiscal 2017.
Brightcove expects revenue to be in the range of $37.5–$38.5 million.
On a non-GAAP basis, the company anticipates to report diluted net loss in a range of 10–11 cents per share. This figure excludes stock-based compensation of approximately $1.7 million and amortization of acquired intangible assets of approximately $700,000.
Zacks Rank & Stocks to Consider
Currently, Brightcove carries a Zacks Rank #3 (Hold). Better-ranked stocks in the broader sector include Applied Optoelectronics, Inc. AAOI, Kemet Corp. KEM and IPG Photonics Corp. IPGP. Applied Optoelectronics and Kemet both sport a Zacks Rank #1 (Strong Buy) while IPG Photonics carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank Stocks here.
In the trailing four quarters, Applied Optoelectronics, Kemet and IPG Photonics have yielded positive average earnings surprises of 118.33%, 72.92% and 6.12%, respectively.
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