Online video platform provider Brightcove filed the initial paperwork on Wednesday for a proposed IPO of common stock that could net the company as much as $50 million.
Cambridge, Mass.-based Brightcove designs and markets cloud-based solutions that enable companies to publish and distribute online media content across a wide array of Web-enabled devices. The company claims to have more than 3,200 clients, including large outfits like the New York Times, Oracle, Showtime, Philips (News - Alert) Electronics, AOL, Bank of America and Honda.
One would have to question the timing of the IPO considering the unstable market conditions in the U.S. and abroad. Although the IPO market was hot earlier this year – headlined by large openings from LinkedIn (News - Alert) and Pandora – conditions have worsened considerably following the downgrading of the U.S. credit rating by the S&P.
Boston-based Carbonite was forced to accept a 41 percent lower share price than it originally targeted in a recent IPO bid, according to the Boston Business Journal.
Brightcove is still not profitable, but it did see its revenue increase from $24.5 million in the fiscal year 2008 to $43.7 million in the fiscal year 2010, with its customer base growing from 549 to 2,469 during that period, according to the initial filing with the SEC (News - Alert).
For the six months ending on June 20, 2011, Brightcove generated more than $28 million in revenue, while booking a $9.7 million net loss. Boston Innovation called them one of the “top watched” Massachusetts-based companies on SecondMarket (News - Alert), an online platform for trading shares of private companies.
Brightcove's largest shareholders include iAccel Partners and General Catalyst Partners, which own 24.5 percent and 26.6 percent of the company, respectively. Morgan Stanley, Stifel Nicolas, RBC Capital, Pacific Crest and Raymond James will underwrite the IPO.
Brightcove plans on going public on the NASDAQ Global Market under the ticker “BCOV.” The company has yet to declare how many shares it will make available to the public.
Want to learn more about the latest in communications and technology? Then be sure to attend ITEXPO West 2011, taking place Sept. 13-15, 2011, in Austin, Texas. ITEXPO (News - Alert) offers an educational program to help corporate decision makers select the right IP-based voice, video, fax and unified communications solutions to improve their operations. It's also where service providers learn how to profitably roll out the services their subscribers are clamoring for – and where resellers can learn about new growth opportunities. To register, click here.
Beecher Tuttle is a TMCnet contributor. He has extensive experience writing and editing for print publications and online news websites. He has specialized in a variety of industries, including health care technology, politics and education. To read more of his articles, please visit his columnist page.
Edited by Jennifer Russell
