Brightcove Inc. (NASDAQ:BCOV) Q2 2023 Earnings Conference Call August 2, 2023 5:00 PM ET

Company Participants

Marc DeBevoise - Chief Executive Officer

Rob Noreck - Chief Financial Officer

Conference Call Participants

Steve Frankel - Rosenblatt Securities

Mike Latimore - Northland Securities

Eric Martinuzzi - Lake Street Capital Markets

Operator

Good afternoon and welcome to Brightcove’s Second 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 third 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 on 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 of Brightcove. And with me today is Rob Noreck, our CFO. We are pleased to be streaming our earnings to discuss our second quarter results, provide an update on our strategic progress and share our view of the future for Brightcove.

I’ll begin with a quick overview of our financial results for Q2, which were strong across the board. Total revenue for Q2 was $51 million at the high end of our guidance range, and adjusted EBITDA was $3.6 million, exceeding the high end of our guidance range. Free cash flow was $7.1 million, the second highest quarter of free cash flow generation in company history, which was expectedly strong, driven by the catch-up on collections from the SVB-impacted first quarter. So from a financial perspective, we had a solid quarter. From an operational perspective, the quarter was a little more mixed. Positively, we made very encouraging progress on several of our key initiatives and have a higher degree of conviction about our opportunity and likelihood of success in many areas.