Brightcove Inc.

Hello, ladies and gentlemen, and thank you for your patience. The call will be getting shortly. The End The End Greetings. Welcome to the Brightcove first quarter 2021 earnings call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to your host, Brian Deneau. Mr. Deneau, you may begin.

Good afternoon and welcome to BRYCO's first quarter 2021 earnings call. Today we will discuss the results announced in our press release issued after market close. With me on the call are Jeff Ray, BRYCO's chief executive officer, and Rob Nort, BRYCO's chief financial officer. During the call, we will make statements related to our business that may be considered forward-looking and are pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. including statements concerning our financial guidance for the second fiscal quarter of 2021 and the full year 2021, expected profitability and positive free cash flow, our position to execute in 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 as the 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 as 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 effects of the COVID-19 pandemic on our business operations, as well as its impact on general economic and financial market conditions. For discussion of 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 is updated by our other SEC filings. Also, during the course of today's call, we will refer to certain non-GAAP financial measures. There is a reconciliation sketch 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. In terms of the agenda for today's call, Jeff will provide a summary review of our financial results, an update on our operations, and a review of our strategies. Rob will finish with additional detail regarding our first quarter 2021 results, as well as our outlook for the second quarter and full year 2021. With that, let me turn the call over to Jess.

Thanks, Brian, and thanks to everyone for joining today. I hope you and your families continue to stay healthy and safe. Video continues to be the most powerful medium to connect people on a global scale. I am so proud of the entire Brightco team and our ability to consistently meet our financial goals while delivering exceptional product innovation and customer experience. We're off to a very strong start to 2021 with record first quarter sales driven by impressive performances in each region. Our performance reflects that video is an essential and rapidly growing technology across both media companies and enterprises. These results reinforce that our strategy is highly relevant and our team is executing. We will continue to invest in innovation to provide the most comprehensive video delivery and optimization platform with solutions to satisfy multiple business use cases. We've created an optimum direct sales engine while building an extensive channel ecosystem, all while ensuring the success of every one of our customers. Turning to a summary of our financial results, for the first quarter, Revenue was $54.8 million, up 18% year-over-year and ahead of our guidance. Adjusted EBITDA was $8.6 million, up 132% year-over-year and well ahead of our guidance. In February, we hosted our inaugural Analyst Day. If you couldn't attend, there is a replay of the event on our Investor Relations website. During this event, we outlined our vision for the future of the market and our strategy for aggressive growth. This included three primary focus areas. First, a focus on innovation. Our goal is to create a highly differentiated platform powered by machine learning and AI to deliver superior video viewing experiences and business performance for our customers. This means broadcast quality reliable and secure video combined with high-performing analytics and purpose-built applications that solve specific business needs across a variety of use cases. Add to this an app community marketplace and our customers will have access to the most comprehensive video solutions for all their internal and external needs. Second, we discussed our expanded go-to-market strategy consisting of a highly scalable global direct sales engagement engine and an indirect selling model leveraging strategic channel partners globally. And third, we outlined our plans for growth of our customer success and renewals teams and how it will positively impact our customers and our retention. I'd like to provide some updates on the most recent progress we've made in each of these key areas. Let's start with technology innovation. Brightco prides itself on being a product driven company focused on solving the most complex customer challenges. Our goal is to deliver broadcast quality video to any device to audiences anywhere in the world in the most reliable and secure way possible. We recently released two new solutions that will deliver significant value for our customers. The first is playback restrictions, which provides customers with the ability to protect their content from being watched by unauthorized users. The Brightcove platform makes video readily available to anyone who should see it and inaccessible to anyone who should not. Whether content is for an internal or external audience, free or monetized, Brightcove playback restrictions provide the right level of security while still allowing viewers to access content from any device anywhere. Playback restrictions ensures that internal content remains confidential and that every view counts towards monetization investments while fully protecting our customers' content and helping maintain brand integrity. We also recently launched Brightco Virtual Events for Business, an intuitive, easy-to-use virtual event solution for highly repeatable mid-sized events. Virtual Events for Business is a virtual event creation marketing and delivery platform designed to easily service the rapidly expanding number of events hosted by organizations. The solution offers customizable event templates, interactive calls to action, post event archiving, multi-device support, and attendee interactivity features, as well as live clipping of event video to multiple social media channels. Additionally, virtual events for business include Zoom and Microsoft Teams integrations, a registration connector for Cvent, and user engagement analytics. Many enterprises are planning for life after COVID and want to continue to maximize the extended reach they have achieved with virtual events over the past year and a half. They recognize that video is an essential tool to connect with audiences across all aspects of their organizations. With Brightco Virtual Events for Business, we've made it simple for enterprises to hold high-volume, repeatable events. Let's turn now to our go-to-market execution and the broad base of customers leveraging video to achieve success across many different use cases. We had a solid sales quarter with several significant wins. Some notable examples include Box Inc., a cloud content management platform that enables organizations to make it easy to access information from anywhere and collaborate with anyone. Box chose Brightco to quickly and efficiently improve its video asset management and to get actionable analytics for its digital marketing team to improve campaign performance. The company also selected Brightco for our technology reputation in the market. They needed a strategic partner who could share insights into how the most successful brands in the industry leverage video to work harder and drive more impactful ROI. Giants Enterprises LLC, more commonly known as the San Francisco Giants, turned to Brightcove when they were looking for new ways to create regular engagement with seasoned ticket holders, casual fans, sponsors, and business partners around the world. With Brightcove, the giants will be able to create and manage several virtual events, both large and small, to interact with these different audiences. We signed a Brightcove beacon win with Multiscreen, the Singapore-based parent for Spool, an OTT provider with 47 million registered users in multiple regions worldwide. Spool originally developed a homegrown do-it-yourself streaming service that had become increasingly costly and complex to maintain as it scaled its business. The Spool team chose Brightco Beacon to significantly reduce costs, accelerate their ability to launch new web, iOS, and Android experiences, and improve customers' viewing experiences. Convini is an innovative and well-known commerce service in South Korea that directly connects famous restaurants with consumers by using short video clips to allow the restaurants to display and explain their food. As its business grew, Konbini chose Brightcove after it recognized its customers' expectations and support needs were not met by its previous streaming video provider. Now, Konbini is reaching more customers on a customized platform and delivering a much improved customer experience with Brightcove. Outside Magazine is an outdoors active lifestyle digital publisher with an extensive library of ad-supported video on-demand content viewed by enthusiasts around the world. After facing performance and quality issues with its previous video platform, Outside selected Brightco for the reliability of the video experience, robust advertising capabilities, strong analytics, playlist support, integration with third-party CMS providers, and excellent customer support services. In the first quarter, we welcomed many other new customers to Brightco, including Akamai Technologies, Nuco, which is a Merck company, GEDi Digital, and Hagerty. Additionally, we are proud of the continued commitment from Little League Baseball Incorporated, EMC Corporation, Tever, Forbes, Intercom Operations, Sephora, and Kraft Heinz, who recently renewed and expanded their contracts with us. We also had another impressive quarter of virtual events powered by Brightco, highlighted by the fantastic success of the, quote, 100% digital, end quote, South by Southwest Online and South by Southwest EDU online events. Using Brightcove, South by Southwest streamed and monetized close to 650 hours of live and pre-recorded content with Brightcove Beacon and our cloud playout technology across five different channels. South by Southwest also provided expanded viewing options that lasted weeks longer than the traditional festival, further extending the reach and impact of its broadcast quality content. After the event concluded, a South by Southwest team member said, quote, Brightco's reputation of leadership in the industry went a long way in achieving buy-in from filmmakers and talent. The video technology enabled us to accommodate the creativity of our creators and audiences. Brightco is more than a vendor, definitely a partner. We are looking forward to doing it again together next year, end quote. As we increase the value we deliver to customers, a growing number of them are becoming passionate advocates for Brightco. As a result, we hosted several virtual events where customers joined us to share their views and experiences with video and the impact it has on a broad range of industries, including Freightways, the Seattle Symphony, Reverie, USA Volleyball, the Vegas Golden Knights, USGA, the Atlanta Symphony, Adobe, and Synopsys. One of the primary investment areas we highlighted during Analyst Day as part of our go-to-market strategy was expanding our partner channel. We made significant progress this past quarter, signing 10 new partners, including several in Europe and Asia, to expand our presence in these regions. Most recently, we announced our partnership with L2, a solution provider for arts and cultural institutions. L2 will integrate Brightcove with Tessitura and Stripe to provide a seamless interface that enables cultural organizations to allow viewers to purchase and stream performances instantly. Over the past year, performing arts and cultural organizations were impacted by the pandemic and stay-at-home orders. These organizations worldwide turned to Brightcove to help reach audiences and monetize their content in a way they have never done before, through video. The L2 partnership extends our reach in this critical market. It demonstrates that cultural organizations recognize video's positive long-term impact and broad audience reach, and that it will be a strategic part of their growth even post-COVID. Scaling our indirect channel is a key strategic priority and the biggest incremental revenue growth opportunity in our business. We are delighted with the progress we have made with the channel and are confident in our ability to substantially increase its sales contribution over the next few years to 30 to 50% of bookings. I'd like to finish by providing an update on our work to develop a best-in-class renewals business. As mentioned on our last call, we appointed a new team to lead our renewals business and implemented a new organizational structure. The team has delivered on several important items in the first quarter, including completing a thorough segmentation of our customers based on their needs and support levels, which allows for more touch points throughout the customer journey, building a community and advocacy program to better connect our customer base. The focus of these community groups is on both product and industry needs, and we already have virtual events scheduled with customers in the coming months. And moving forward, we will allocate additional resources and invest in our customer onboarding process with new programs available to all customers worldwide. We are confident these changes, combined with the strategic priorities I mentioned earlier, will significantly impact our renewals business by making BrightCode an increasingly valuable part of our customers' businesses. We are applying the same principles that we used with our product and go-to-market teams, and we're confident that we will have the same level of success. As I've noted previously, it will take time for the impact of these changes to be apparent, but we expect investors will begin to see sustainable improvement in the second half of this year. I'd like to wrap up by reiterating what an exciting time this is for Brightcove and how proud I am of our team. Video continues to increase in importance for media companies and enterprises, and they are turning to Brightcove as their strategic partner. Our product portfolio is the best it's ever been, and we have an aggressive development roadmap that we believe will enhance the value we deliver for customers. We have an exceptionally strong team showing evidence of execution in all areas of our business. We are in a great position to accelerate revenue growth, expand margins, and create value for our shareholders over time. With that, let me turn the call over to Rob to walk you through the numbers. Rob?