Brightcove (BCOV) saw its loss widen to $5.07 million, or $0.15 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $1.61 million, or $0.05 a share. On an adjusted basis, net loss for the quarter stood at $2.57 million, or $0.08 a share compared with a net profit of $0.64 million, or $0.02 a share in the last year period.
Revenue during the quarter grew 3.53 percent to $37.57 million from $36.29 million in the previous year period. Gross margin for the quarter contracted 396 basis points over the previous year period to 59.50 percent. Operating margin for the quarter stood at negative 13.66 percent as compared to a negative 4.22 percent for the previous year period.
Operating loss for the quarter was $5.13 million, compared with an operating loss of $1.53 million in the previous year period.
However, the adjusted operating loss for the quarter stood at $2.63 million compared to operating profit of $0.71 million in prior year period.
"Brightcove reported mixed first quarter financial results with revenue in line with expectations but non-GAAP EPS below guidance primarily due to a revenue mix shift and unanticipated one-time costs associated with a large client’s impending OTT service launch," said David Mendels, chief executive officer of Brightcove. “In addition, while we had strong year-over-year bookings performance in the quarter, we experienced a significant and unanticipated decrease in our revenue retention rate, among media customers, primarily due to changes in the market for the non-software elements of content delivery and storage."
For the second-quarter, Brightcove forecasts revenue to be in the range of $37 million to $37.80 million. The company forecasts adjusted operating income to be in the range of $4.20 million to $5 million. On an adjusted basis, the company expects diluted earnings per share to be in the range of $0.13 to $0.15.
For fiscal year 2017, Brightcove forecasts revenue to be in the range of $151 million to $155 million. The company forecasts adjusted operating income to be in the range of $6 million to $9 million. The company expects diluted earnings per share to be in the range of $0.19 to $0.28 on adjusted basis.
Operating cash flow turns negativeBrightcove has spent $6.60 million cash to meet operating activities during the quarter as against cash inflow of $3 million in the last year period. The company has spent $0.98 million cash to meet investing activities during the quarter as against cash outgo of $1.78 million in the last year period.
The company has spent $0.29 million cash to carry out financing activities during the quarter as against cash inflow of $0.24 million in the last year period.
Cash and cash equivalents stood at $29.17 million as on Mar. 31, 2017, down 0.42 percent or $0.12 million from $29.29 million on Mar. 31, 2016.
Working capital declines
Brightcove has witnessed a decline in the working capital over the last year. It stood at $5.24 million as at Mar. 31, 2017, down 19.25 percent or $1.25 million from $6.49 million on Mar. 31, 2016. Current ratio was at 1.10 as on Mar. 31, 2017, down from 1.13 on Mar. 31, 2016.
Days sales outstanding were almost stable at 52 days for the quarter, when compared with the last year period.
At the same time, days payable outstanding went up to 28 days for the quarter from 21 for the same period last year.
Debt comes down significantlyBrightcove has recorded a decline in total debt over the last one year. It stood at $0.68 million as on Mar. 31, 2017, down 34.08 percent or $0.35 million from $1.02 million on Mar. 31, 2016. Brightcove has recorded a decline in short-term debt over the last one year. It stood at $0.68 million as on Mar. 31, 2017, down 34.08 percent or $0.35 million from $1.02 million on Mar. 31, 2016. Total debt was 0.51 percent of total assets as on Mar. 31, 2017, compared with 0.78 percent on Mar. 31, 2016. Debt to equity ratio was almost stable at 0.01 as on Mar. 31, 2017, when compared with the last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
