AKAM), which is its closest challenger. Google ( GOOG) is also developing a product called Google Drive that is more consumer oriented. Brightcove should be able to fight off the competition for a while though because of the stickiness of its contracts. The company usually signs clients to one-year deals and with the services that are provided, it makes it difficult for the customer to want to change. For example, TheStreet ( TST) currently uses Brightcove to deliver its video and was approached by Akamai. However a change would have incurred costs as well as hardware changes. Plus, Brightcove offered a lowered rate, so there was no reason to incur the headaches of a change. Brightcove provides the video player, advertising services and storage for TheStreet with Akamai network in the background. Brightcove increased its customer count by 185% in 2010 and 57% in 2011 as demand for online video has increased. In 2011, the average number of monthly streams was 743 million - a 56% increase over 2010.
The financial picture for Brightcove is a mixed bag though. Sales were up 45% to $64 million, but losses stayed flat at $18 million. "In other words, Brightcove lost 28 cents on every dollar of sales," said Gaskins. Yet, the recurring dollar retention rate was 88%. The company also has a $43 million backlog for 2011, most of which will be recognized as revenue in 2012. That's up from a $28 million backlog in 2010. Following the IPO, Brightcove's two largest shareholders will be its venture capital firms Accel Partners and General Catalyst Partners. They will own 42% of the outstanding common stock. -- Written by Debra Borchardt in New York. >To contact the writer of this article, click here: Debra Borchardt.
Readers Also Like: