Despite never having turned a profit and warning that one might not come soon, investors pledged their support to Brightcove (Nasdaq: BCOV) when it rolled out its IPO Friday and have remained bullish on the stock this week.
The online video platform raised $55 million in cash Friday, just short of its hoped-for $60 million; the stock soared some 30 percent during its first day trading, debuting at $11, and closing Friday at $14.30.
The company has continued to roll this week, closing Tuesday at $15.15, a nearly 38 percent increase since it opened Friday morning.
The strength of the stock's surge speaks volumes about the company's (and online video's) potential in the eyes of the investment community since, according to Brightcove's S-1 filing, it posted a $17.3 million loss in 2011 on revenues of $63.6 million, and said it doesn't expect to be profitable in 2012.
Brightcove targeted its IPO at between $11 and $12 and hoped to sell 5 million shares of stock.
In its S-1 filing Brightcove said it had 3,872 customers in 50 countries at the close of 2011, and reported revenue of $63.6 million, up from $43.7 million a year earlier. It reported a net loss of $17.3 million in 2011, compared to a loss of $17.8 million in 2010.
Brightcove said 91 percent of its revenue in 2011, about $58 million, came from 1,301 customers of its Premium service, which is targeted at enterprises; 9 percent, or $5.5 million, of its revenue during the year came from the 2,571 customers of its SMB-focused Express product line. In 2010, 905 Premium customers generated 95 percent of its revenue, $41.7 million, and 1,564 Express customers generated the other 5 percent, about $2 million.
Some 66 percent of Brightcove's revenue came from North America in 2011 (compared to 68 percent in 2010), Europe generated 23 percent (25 percent), Japan 8 percent (6 percent) and APAC 3 percent (1 percent).
Brightcove said it delivered 743 million video streams per month to 177 million unique viewers on more than 94,000 websites in 2011.
For more:
- see this S-1 filing
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