Brightcove Reports 2% Revenue Decline, Narrows Losses in Q3 2024

Brightcove Inc. reported its financial results for the three and nine months ended September 30, 2024, revealing a slight decline in revenue and ongoing operational challenges. For the third quarter of 2024, total revenue was $49.95 million, a decrease of 2% from $50.98 million in the same period of 2023. For the nine months ended September 30, 2024, total revenue was $149.68 million, down 1% from $151.03 million in the prior year. The decline was primarily attributed to reduced subscription and support revenue, which fell to $47.96 million in Q3 2024 from $48.57 million in Q3 2023, largely due to a decrease in premium offerings and customer numbers.

Despite the revenue decline, Brightcove managed to reduce its total cost of revenue for the third quarter to $18.38 million from $19.26 million in the previous year, resulting in a gross profit of $31.57 million, slightly down from $31.72 million. For the nine-month period, gross profit was $92.27 million, a decrease from $93.00 million in 2023. Operating expenses for Q3 2024 increased to $34.38 million from $34.01 million, leading to a loss from operations of $2.80 million, compared to a loss of $2.29 million in Q3 2023. However, the nine-month loss from operations improved to $5.83 million from $19.38 million in the prior year, reflecting a significant reduction in overall operating expenses.

The net loss for Q3 2024 was $2.96 million, compared to a net loss of $2.42 million in Q3 2023. For the nine months, the net loss was $6.63 million, a notable improvement from $20.37 million in the same period of 2023. The company reported a net cash provided by operating activities of $9.45 million for the nine months ended September 30, 2024, a significant increase from $0.31 million in the prior year.

Strategically, Brightcove has been focusing on optimizing its operations, which included a reduction in employee count from 671 to 621 over the year. The company also modified its loan agreement in November 2023, establishing a $30 million asset-backed line of credit, which it was in compliance with as of September 30, 2024. Additionally, Brightcove experienced a material weakness in internal controls over financial reporting, specifically related to information technology general controls, which management is actively working to remediate.

Overall, while Brightcove faced challenges in revenue generation, it demonstrated improved operational efficiency and cash flow management during the reporting period.