Brightcove (NasdaqGS:BCOV) - Share price, News & Analysis

BCOV fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	0/6
Past Performance	0/6
Financial Health	5/6
Dividends	0/6

BCOV Stock Overview

Brightcove Inc. provides cloud-based services for video.

Risk Analysis

Currently unprofitable and not forecast to become profitable over the next 3 years

Shareholders have been diluted in the past year

Brightcove Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Brightcove
Historical stock prices
Current Share Price	US$6.90
52 Week High	US$14.80
52 Week Low	US$6.34
Beta	0.80
1 Month Change	0.88%
3 Month Change	-9.33%
1 Year Change	-52.15%
3 Year Change	-33.20%
5 Year Change	11.29%
Change since IPO	-51.75%

Recent News & Updates

May 21

Brightcove: Operating In A Tough Spot

Since peaking in early 2021, Brightcove's share price has plummeted almost 70% from its all-time high. After enjoying a massive tailwind in 2020, the video software company is now in a tough spot as the pandemic wanes and competition increases significantly. The company financials are deteriorating very quickly with revenue, gross profit, and important KPIs such as ARPU all turning south. It is now trading at a significant discount compared to its peers but I believe the company is a sell as fundamentals and financials are very weak at the moment.

Shareholder Returns

	BCOV	US IT	US Market
7D	8.5%	8.9%	6.6%
1Y	-52.2%	-32.0%	-18.4%

Return vs Industry: BCOV underperformed the US IT industry which returned -32.2% over the past year.

Return vs Market: BCOV underperformed the US Market which returned -18.5% over the past year.

Price Volatility

Is BCOV's price volatile compared to industry and market?
BCOV volatility
BCOV Average Weekly Movement	6.8%
IT Industry Average Movement	10.1%
Market Average Movement	8.1%
10% most volatile stocks in US Market	16.6%
10% least volatile stocks in US Market	3.2%

Stable Share Price: BCOV is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: BCOV's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2004	678	Marc DeBevoise	https://www.brightcove.com

Brightcove Inc. provides cloud-based services for video. Its flagship product includes Video Cloud, an online video platform that enables its customers to publish and distribute video to Internet-connected devices. The company also offers Brightcove Live, a solution for live streaming; Brightcove Beacon, an application that enables companies to launch over-the-top video experiences on multiple monetization models; Brightcove Player, a video player technology with a cloud-based service for creating and managing experiences; and Zencoder, a cloud-based video encoding technology.

Brightcove Fundamentals Summary

How do Brightcove's earnings and revenue compare to its market cap?
BCOV fundamental statistics
Market Cap	US$286.71m
Earnings (TTM)	-US$1.37m
Revenue (TTM)	US$209.66m

1.4x

P/S Ratio

-209.3x

P/E Ratio

Is BCOV overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
BCOV income statement (TTM)
Revenue	US$209.66m
Cost of Revenue	US$72.84m
Gross Profit	US$136.82m
Other Expenses	US$138.19m
Earnings	-US$1.37m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	-0.033
Gross Margin	65.26%
Net Profit Margin	-0.65%
Debt/Equity Ratio	0%

How did BCOV perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is BCOV undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for BCOV?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for BCOV. This is calculated by dividing BCOV's market cap by their current preferred multiple.
What is BCOV's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$286.71m

BCOV key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.4x
Enterprise Value/EBITDA	57.4x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does BCOV's PS Ratio compare to its peers?

BCOV PS Ratio vs Peers

The above table shows the PS ratio for BCOV vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	1.7x

Forward PS

Price-To-Sales vs Peers: BCOV is good value based on its Price-To-Sales Ratio (1.4x) compared to the peer average (1.7x).

Price to Earnings Ratio vs Industry

How does BCOV's PE Ratio compare vs other companies in the U.S. IT Industry?

Price-To-Sales vs Industry: BCOV is good value based on its Price-To-Sales Ratio (1.4x) compared to the US IT industry average (2.5x)

Price to Sales Ratio vs Fair Ratio

What is BCOV's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

BCOV PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	1.4x
Fair PS Ratio	2.1x

Price-To-Sales vs Fair Ratio: BCOV is good value based on its Price-To-Sales Ratio (1.4x) compared to the estimated Fair Price-To-Sales Ratio (2.1x).

Share Price vs Fair Value

What is the Fair Price of BCOV when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: BCOV ($6.9) is trading above our estimate of fair value ($6.33)

Significantly Below Fair Value: BCOV is trading above our estimate of fair value.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate BCOV's PEG Ratio to determine if it is good value.

Discover undervalued companies

Future Growth

How is Brightcove forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

81.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: BCOV is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: BCOV is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: BCOV is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: BCOV's revenue (3.7% per year) is forecast to grow slower than the US market (8.4% per year).

High Growth Revenue: BCOV's revenue (3.7% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if BCOV's Return on Equity is forecast to be high in 3 years time

Discover growth companies

Past Performance

How has Brightcove performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

33.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: BCOV is currently unprofitable.

Growing Profit Margin: BCOV is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: BCOV is unprofitable, but has reduced losses over the past 5 years at a rate of 33.4% per year.

Accelerating Growth: Unable to compare BCOV's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: BCOV is unprofitable, making it difficult to compare its past year earnings growth to the IT industry (21.4%).

Return on Equity

High ROE: BCOV has a negative Return on Equity (-1.37%), as it is currently unprofitable.

Discover strong past performing companies

Financial Health

How is Brightcove's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: BCOV's short term assets ($82.6M) do not cover its short term liabilities ($103.9M).

Long Term Liabilities: BCOV's short term assets ($82.6M) exceed its long term liabilities ($22.9M).

Debt to Equity History and Analysis

Debt Level: BCOV is debt free.

Reducing Debt: BCOV has no debt compared to 5 years ago when its debt to equity ratio was 0.3%.

Balance Sheet

Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable BCOV has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: BCOV is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 25% per year.

Discover healthy companies

Dividend

What is Brightcove current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate BCOV's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate BCOV's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if BCOV's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if BCOV's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as BCOV has not reported any payouts.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

2.3yrs

Average management tenure

CEO

Marc DeBevoise (44 yo)

0.25

Tenure

Mr. Marc DeBevoise has been the Chief Executive Officer and Board Director of Brightcove Inc. since March 28, 2022. He serves as Vice Chairman and President at Argus Capital Corp. since September 24, 2021....

Leadership Team

Experienced Management: BCOV's management team is considered experienced (2.3 years average tenure).

Board Members

Experienced Board: BCOV's board of directors are considered experienced (4.2 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3%.

Data	Last Updated (UTC time)
Company Analysis	2022/06/26 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31