BCOV - Why Brightcove Is Down by 21% Today
Shares of cloud-based storage company Brightcove (NASDAQ: BCOV) were trading 21.1% lower just after midday Thursday in response to Wednesday's post-close quarterly investor update. While the company beat the earnings and revenue estimates tendered by the few analysts who follow it, guidance for the quarter currently underway left investors wanting. The company also announced that CEO Jeff Ray will be stepping down from that role at the end of 2022.
For the third quarter, Brightcove turned $52.1 million in revenue into an adjusted per-share profit of $0.05. The top line was up 6% year over year, but earnings were less than half of the $0.11 per share result from the prior-year period. Yet both third-quarter numbers came in better than expected. Analysts had been collectively modeling for earnings per share of $0.02 on sales of $50.9 million.
Management isn't anticipating much improvement for the fourth quarter either. It informed investors it expects to earn between $0.02 and $0.04 per share on revenue of between $51 million and $52 million. In Q4 2020, Brightcove did $53.7 million worth of business, earning $0.05 per share in the process. Analysts are anticipating a profit of $0.07 per share this time around, with revenue expected to roll in at $55.2 million.
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Why Brightcove Is Down by 21% Today