Brightcove Inc (NASDAQ:BCOV) Beats Estimates, Provides Mixed Outlook


Brightcove Inc (NASDAQ:BCOV) moved higher in late trading after the company reported better-than-expected financial results for Q1 and provided mixed guidance for Q2 and fiscal 2014.

The provider of cloud-based solutions for publishing and distributing professional digital media reported Q1 net loss of $4.8 million, or $0.16 per basic and diluted share, compared with a net loss of $4.2 million, or $0.15 per basic and diluted share, for the same quarter in 2013.

Non-GAAP net loss of the company, excluding stock-based compensation expense, the amortizations of acquired intangible assets, and merger-related expenses, was $500,000 for the quarter, equal to $0.02 per basic and diluted share, compared with a non-GAAP net loss of $1.6 million or $0.06 per basic and diluted share in the same period the previous year. The Capital IQ analyst estimates, which typically exclude one-time items, amounted to a loss of $0.09 per share.

Revenue was $31.11 million, up 26% from $24.7 million in the same quarter last year. Analysts were expecting revenue of $29.06 million.

The company expects Q2 loss per share of $0.12 – $0.11, ex one-time items, in line with the consensus for a $0.11 loss per share; revenue is expected to be $29.7 million – $30.2 million, just shy of the Street view of $31.07 million.

For fiscal 2014, BCOV sees a loss of $0.25 – $0.19 per share, ex special items, on revenue of $126 million – $130 million. The Street view is for a loss of $0.35 per share on revenue of $128.50 million. The earnings outlook was revised from the prior range of $0.40 – $0.31 loss per share.

Analysts have a consensus price target of $15 on Brightcove Inc(NASDAQ:BCOV) which indicates a 80% upside. The consensus rating of the stock is a Buy with a score of 3.0. There are currently 2 Buy ratings on the stock, 1 Strong Buy and 1 hold rating.

A recent analyst action consisted of Zacks downgrading the stock from Outperform to Neutral back in February.


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