Brightcove Inc. (NASDAQ:BCOV) Q3 2023 Earnings Call Transcript
Brightcove Inc. (NASDAQ:BCOV) Q3 2023 Earnings Call Transcript November 1, 2023
Brightcove Inc. beats earnings expectations. Reported EPS is $0.05, expectations were $0.02.
Operator: Good afternoon, and welcome to Brightcove’s Third Quarter 2023 Earnings Presentation. Today, we’ll discuss the results announced in our press release issued after the market closed. During today’s presentation, we will make statements related to our business that may be considered forward-looking and are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements concerning our financial guidance for the fourth fiscal quarter of 2023 and the full year 2023, expected profitability and free cash flow, our position to execute on our go-to-market and growth strategy, our ability to expand our leadership position, our ability to maintain and upsell existing customers, as well as our ability to acquire new customers.
Forward-looking statements may often be identified with words such as we expect, we anticipate, upcoming or similar indications of future expectations. These statements reflect our views only as of today and should not be reflected upon as representing our views of any subsequent date. These statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from expectations, including the effect of macroeconomic conditions currently affecting the global economy. For a discussion of material risks and other important factors that could affect our actual results, please refer to those contained in our most recently filed annual report on Form 10-K and as updated by our other SEC filings. Also during the course of today’s presentation, we will refer to certain non-GAAP financial measures.
There is a reconciliation schedule showing GAAP versus non-GAAP results currently available in our press release issued after market closed today, which can be found on our website at www.brightcove.com.
Marc DeBevoise: Thank you all for joining. I’m Marc DeBevoise, CEO here at Brightcove. And with me today is Rob Noreck, Brightcove’s CFO. We’re pleased to be streaming this to you to discuss our third quarter results, provide an update on our strategic progress and share our view on our future. I’ll begin with a quick overview of the strong financial results we delivered in Q3. Total revenue for Q3 was $51 million at the high end of our guidance range. And adjusted EBITDA was $5.5 million, exceeding the high end of our guidance range, growing 12% year-over-year and delivering double-digit margins at a 11%. We are pleased to have delivered financial results that met or exceeded our outlook. Importantly, revenue excluding overages, which represents the vast majority of our revenue, grew year-over-year in Q3 as expected to do so in Q4 as well.
This is an important indication of the strategic plan we have been executing against is headed in the right direction. We are focused on building upon this to deliver improved and more consistent financial results over time. We are equally, if not more pleased with our adjusted EBITDA performance in the quarter, which returned to double-digit margins and grew double digits year-over-year. This performance reflects the structural changes and cost savings initiatives we instituted in Q2, and is a clear demonstration of our commitment to run this business in a consistently profitable manner. We are highly focused on the things that we can control, including identifying ways to improve our cost structure going forward while continuing to invest in those key growth areas that we believe can drive consistent results.
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