The announcement this week that Brightcove had filed an S-1 to raise up to $50 million in an IPO was not really a surprise. Rumors about an IPO have been circulating ever since the company, a cloud-based video platform provider, was founded seven years ago, according to Videonuze.com (http://www.videonuze.com/).
Brightcove’s S-1 filing gives investors a look inside Brightcove, what would be another “pure play” investment opportunity in the fast-growing and consolidating online video space. By the looks of the numbers, Brightcove is thriving in this industry and doesn’t seem to be suffering much in the current global economic downturn.
While still not profitable, Brightcove revenue was $28.4 million for the first six months of 2011, compared to $20.3 millin a year ago. And the company delivered about 700 million streams per month in the first half of this year, up 72 percent over last year.
There are several small cap companies that fit loosely in this space, including:
Plainview, NY-based Neulion Inc. (TSX: NLN.TO, OTC: NEUL.PK, http://www.neulion.com/ an Internet Protocol television company (IPTV) that offers end-to-end solutions for delivering live and on-demand content to any Internet-enabled device. Neulion just reported a 37 percent increase in revenue for the second quarter, compared to a year ago. The company is still very small ($47.6 million market cap) and its stock closed Aug. 25 up 3 cents to $0.34, at the low end of its 52-week range of $0.21-$0.61.
Prague-based Kit Digital Inc. (Nasdaq: KITD, http://www.kitd.com/) provides cloud-based video management solutions. Formerly known as Roo Group, KITD has a $418 million market cap and closed Aug. 25 down 26 cents to $9.85, also at the low end of the 52-week range of $7.90-$17.32.
Plano, TX-based ViewCast (or ViewCast.com) Inc. * (OTCBB: VCST.OB, http://www/viewcast.com) develops hardware and software for the capture, management, transformation and delivery of digital media over IP and mobile networks. While always full of promise, ViewCast has not grown quick enough to generate traction in the market. ViewCoast just named a new CEO, John Hammock, formerly the company’s VP of sales, who aims to leverage his experience and contacts in the telecom, cable and other markets. The stock closed Aug. 25 down 1 cent to $0.23. Its stock has traded as high as $0.41 in the past 52 weeks, and as low as $0.19.
Cambridge, UK and San Francisco-based Blinkx PLC (LSE: BLNX.L or OTC: BLNKF.PK, http://www.blinkx.com/) provides video search and advertising services worldwide and calls itself “the world’s largest and most advanced video search engine.” It’s market cap is not listed and it surely is no small cap but we include it as an example of the energy in this sector. On Aug. 25, an otherwise down day in the market and on no discernible news, Blinkx closed up $2.99 to $105.24. The pink sheet stock was up 6 cents to $1.69.
Shanghai-based Tudou Holdings Ltd. (Nasdaq: TUDO, http://www.tudou.com/), which operates as an online video company in China, also had a good Aug. 25. TUDO traded up 91 cents (nearly 4 percent) to $25.01, close to its 52-week high of $27.75. Tudou stock went public earlier this month at $29 but dropped 12 percent on its first day of trading.
* Denotes client of Allen & Caron Inc, publisher of this blog