The sudden shock of COVID thrust companies into operating in virtual formats, from corporate conferences to general day-to-day operations. Large live events, like sports and concerts, which normally rely upon in-person ticket sales had to pivot to digital operations to make the viewer at home feel more like they are there. And many media companies are continuing to move quickly from static cable distribution channels toward OTT/streaming to reach their niche audiences and best serve them while maximizing monetization of content.
Stepping up to the challenge is the Boston based cloud video services company Brightcove (BCOV), a leader in its field operating since 2004. They are not only versatile in what they handle, like being the official virtual video partner of South by Southwest (SXSW), they have international reach and can deliver (and importantly help monetize) video at scale to millions of people with uninterrupted streaming.
As an investment Brightcove is very exciting as they are still in the small cap zone of $800M, has zero debt and a very low share float count of 25M (meaning potential for big buying pressure). Their earnings report yesterday was outstanding, with their superior software product getting better recognized (awarded 85 patents worldwide; now handling AMC Networks tech stack consolidation, etc.). Brightcove is currently under the radar with larger investors, but given this recent successful earnings report and a growing awareness of the need for quality video streaming services in our Brave New World… it’s just a matter of time.
“The pandemic has presented enterprises and content providers with numerous challenges and our team delivered. Some of these challenges included managing and engaging employees in an entirely virtual environment, finding new ways to develop and deepen customer relationships, transitioning in-person events to compelling virtual live event experiences, supporting rapid growth in streaming video content, as people stayed home and watched more than ever before. And adjusting to the profound disruption faced by our customers in live sports and those with ad supported models. Brightcove led the way as organizations around the world use the power of video to address these challenges and capitalize on major changes in the market.” — Jeff Ray, CEO of Brightcove on Q42020 Earnings Call Transcript yesterday