B.Riley FBR Maintains Their Hold Rating on Brightcove Inc

By Austin Angelo

B.Riley FBR analyst Sameet Sinha maintained a Hold rating on Brightcove Inc (NASDAQ: BCOV) today and set a price target of $7.70. The company’s shares closed yesterday at $7.30.

Sinha commented:

“Brightcove (BCOV) reported a solid 4Q as Enterprise and Media customers performed well as the product set is aligning well with secular drivers in both verticals (OTT, corp. comm.). 4Q revenue/ AEBITDA came in at $40.1M/$2.3M ($1.2M 1x items) versus our estimates at $39.5M/$0.3M and consensus of $39.5M/$0.2M. The 4Q retention rate declined from 95% in 3Q to 87% due to seasonality of elevated year-end renewals that are still impacted by the CDN pricing reset. The company’s momentum is due to two primary drivers: 1) reference wins in Media (esp. in Asia), and 2) strong execution from the sales force in adding new enterprise customers. Guidance for 1Q/FY18 was mixed versus our/consensus estimates as revenue was ahead while AEBITDA was below. Management reiterated their previous stance of AEBITDA/FCF positive for the full year and indicated they expect to hit DD% growth exiting 4Q.”

According to TipRanks.com, Sinha is a 4-star analyst with an average return of 5.8% and a 52.2% success rate. Sinha covers the Technology sector, focusing on stocks such as ANGI Homeservices Inc, Digital Turbine Inc, and Limelight Networks.

Brightcove Inc has an analyst consensus of Hold, with a price target consensus of $7.70.

Based on Brightcove Inc’s latest earnings report for the quarter ending December 31, the company posted quarterly revenue of $40.1 million and GAAP net loss of $1.37 million. In comparison, last year the company earned revenue of $38.63 million and had a GAAP net loss of $4.36 million.

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Brightcove Inc. engages in providing video cloud services. It enables customers to publish and distribute video to Internet-connected devices. Its products comprises of Brightcove Video Cloud, Brightcove Zencoder, Brightcove Once, Brightcove Perform, Brightcove Video Marketing Suite, Brightcove Lift, Brightcove OTT Flow, and Brightcove Enterprise Video Suite.