Lake Street Capital Markets Downgrades Brightcove (BCOV) to Hold on disappointing revenue view

Lake Street Capital Markets analyst Eric Martinuzzi downgraded Brightcove (NASDAQ: BCOV) from Buy to Hold with a price target of $3.00 (from $4.00).

The analyst commented: "Brightcove’s midpoint 2024 revenue view anticipates a 2.3% contraction. Our prior model called for 2.0% growth, but the company is not anticipating an improvement in add-on business and usage metrics.

While we are lowering our rating to Hold and our PT to $3.00, we acknowledge the traction of the up-market tactical shift by CEO DeBevoise. In 2023, he steered the direct sales force away from smaller enterprise opportunities and towards larger media prospects. As a result, new business was up 55% y/y, driven by larger deals that had average annual contract values up over 200% y/y. This helped lift premium customer ARPU 8% y/y, to $96,200 from $89,000."

For an analyst ratings summary and ratings history on Brightcove click here. For more ratings news on Brightcove click here.

Shares of Brightcove closed at $2.02 yesterday.

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