Brightcove Inc. (NASDAQ:BCOV) Q4 2023 Earnings Call Transcript

Eric Martinuzzi: Understand. Good luck on 2024.

Rob Noreck: Thanks, Eric. Marc?

Marc DeBevoise: Great. Well, with that, thank you, guys, for joining and thanks everyone for joining us today. I’m going to close with a few thoughts about what I think are the opportunities for investors in breakup stock. We believe our mostly overage decline driven revenue results in 2023 have been, frankly, disproportionately reflected in our stock price. We’re currently trading at well below one times enterprise value to forward revenue, below one times enterprise value to forward gross margin, and below 6x enterprise value to forward adjusted EBITDA, and this is for a business with a secure, highly recurring revenue base of nearly $200 million, a projected adjusted EBITDA growth of 25% in 2024 and a projected free cash flow improvement year-over-year of over $15 million.

So, we believe we’ve built an operating plan that is resilient even if top line growth is a little bit elusive, and we are committed to protecting profitability in any conceivable scenario. So, we recognize that it’s important we demonstrate that our strategic plan can deliver top line growth and that we believe we can generate cash while doing just that. At current levels, we believe the stock provides a compelling opportunity for investors at the value in a highly asymmetric risk reward opportunity and a sizable shareholders ourselves, our management team is dedicated to delivering consistent execution that will enable our valuation to better reflect what I believe is the fundamental value of this business. So, with that, I thank you all for joining the call today, and we look forward to seeing you on the next quarter’s call.