Why Brightcove's Shares Jumped Today
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of cloud computing company Brightcove jumped 16% today after the company released earnings.
So what: Revenue rose 24% in the second quarter, to $26.9 million, on broad gains for the company. Net loss also dropped to $3.5 million, or $0.12 per share, but after adjusting for one-time items, the loss was $0.04 per share, which was $0.03 better than estimates.
Now what: The best news for investors is that third-quarter revenue guidance of $26.8 million to $27.3 million is ahead of estimates, and the company may be better than expected on the bottom line, as well. Analysts aren't expecting a profit this year, but the company is expected to make a profit next year, so both top and bottom line progress is good for investors. I'm still concerned about the ongoing losses, but if the company can continue to grow, it can grow into its valuation.
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The article Why Brightcove's Shares Jumped Today originally appeared on Fool.com.Fool contributor Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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