Big News and Big Moves at Brightcove

Walking into 2010, there are some major changes at the company that I'm excited to share as we cap off what was a very big year for the company and kick off what we expect will be an even more significant year of growth for Brightcove.

First, I'm incredibly happy to announce that David Mendels has joined the Brightcove executive leadership team as the company's President and Chief Operating Officer.  David is an absolute star, and one of the strongest executives and operating leaders in the Internet software industry.  I'm honored and thrilled to bring David on as a partner in helping to grow and scale what is already an amazing company.

David brings to Brightcove nearly two decades of experience building and leading some of the most successful software products and businesses for the Internet.  For those of you who don't know David well, he got started in the software industry at Macromedia in 1992 during the week that Macromedia was formed as a company (out of the merger of MacroMind, Paracomp and Authorware).  Over the following decade+, David went on to play a critical role in helping Macromedia grow from ~$15M in revenue into a $500M company and one of the critical software pillars of the Internet.  His work spanned setting up international operations for Macromedia in Japan and Latin America, to leading business development and alliances, to running corporate marketing, to ultimately helping to lead and build some of the most important products and businesses as general manager of Macromedia’s flagship products, including the Flash and Flex line, Macromedia Studio and ColdFusion.  David also played a crucial role in helping to shape and transform Flash into a true platform for rich Internet applications and developers.  After Macromedia was merged into Adobe, David took on more responsibility, ultimately running the enterprise and business productivity division of Adobe, a $1B+ division that included dominant products such as Adobe Acrobat, Flex, LiveCycle, Acrobat Connect, as well as start-up businesses in Web-based productivity software.

David is a driver, leader, and consummate deal maker who deeply understands how to create software platforms that enhance the experience of the Web for consumers, empower developers and create value for media publishers and marketers.  As we noted in our press announcement, David’s addition to the Brightcove executive team will help provide rocket fuel for the company and our customers.

As Chairman and CEO, I will continue to lead and guide the company, and David and I will partner closely to rapidly scale what we know will become an amazing, global, independent Internet company that aims to transform how every professional website in the world publishes and distributes media.  David's unique operating skills are an incredible complement to my broad vision and industry leadership. 

David joining Brightcove both completes an amazing year for the company, and kicks off the next.

2009 was a tremendous year for Brightcove.

Financially, the company has performed extremely well -- growing revenues 50% year/year, and scaling out our customer base significantly.  Also, during much of 2009 we generated positive cash flow.  We have a very strong cash balance sheet, which is allowing us to invest for continued high growth with new products, new markets and new geographies.

Despite the gloomy headlines, 2009 was a transformative year for our market.  We saw the market for Online Video Platforms (OVPs) emerge, a market we have helped shape and define since 2005.  Now recognized as one of the critical new cloud-based Internet software platform categories, companies of all size and scope are adopting OVPs to drive their digital media and digital marketing agendas.  In the first major 3rd party industry analyst report and survey from Forrester Research on the OVP market, Brightcove came out on top:  From Forrester, "Brightcove’s offering is the most comprehensive video platform in this Forrester Wave evaluation; it consistently scores high marks, with few, if any, gaps. The company’s customer base, video scale, and internal resources are unrivaled in the market today. Brightcove’s significant resources and road map position the company to stay ahead in the video platform race."

Beyond the category definition and leadership, there were also some significant developments in our market and customer base.  We saw our premium media company partners continue to grow the volume of video they deliver, and added dozens of major media companies to our customer roster across broadcast, news, magazine, music and online publishers.  Premium media publishers continue to be the largest single category of customers for Brightcove, driving revenue and usage scale, and helping cement Brightcove's position as one of the core cloud utilities for the consumer facing Web.

Just as exciting was a surge in adoption by marketers.  During 2009, we saw more than half of our new customers come from digital marketing applications.  Major B2B and B2C brands, as well as an incredibly diverse range of other types of organizations, adopted Brightcove to power marketing applications on their sites.  Video is coming of age as a core tool not just for consumer media and advertising, but also as a critical component for engaging customers and driving conversions. 

This leads to the other related development, which is the emerging adoption of online video for retail and e-commerce.  We saw a surge of activity from major retailers embracing video as a core component of their sales strategy with pretty impressive results -- double-digit lifts in sales for products that use video, and often lower customer service costs as buyers better understand the products they are buying online.  What is exciting about all of this is that the three biggest pillars of the Internet economy -- digital media, digital marketing and e-commerce/retail – are fast embracing video, significantly expanding the market opportunity for Brightcove.

We also saw a surge of interest in online video from a broader mass market of SMBs and smaller video projects, which led us to launch Brightcove Express, an entry-level, $99/month edition of our service.  While we've only had this offering in the market for just over a month, the interest and adoption is impressive.  Like other great software companies, we are committed to building a business that scales from the entry-level to the enterprise, and now have very strong evidence that truly every professional website on the planet is going to adopt video.

Throughout 2009 we also continued to develop our open platform approach to online video, with an expanded range of APIs, SDKs and developer tools and resources. This has helped to spawn a robust ecosystem around our platform, as hundreds of 3rd party companies, from industry giants such as Google, Microsoft, Yahoo and AOL, to innovative start-ups in unique related technology fields have leveraged our open APIs and worked with Brightcove to create plug-ins and other integrations that extend the value and capability of our platform.  We're committed to making Brightcove a great platform for developers, both inside of our customers and in the broader 3rd party technology ecosystem.

At the end of 2009, we launched Brightcove 4, the largest major release in Brightcove's history, expanding our platform with a wide array of new features across mobile video, live video, social media integration, video analytics, long-form video and new enhancements in distribution and advertising.  We've seen real momentum since the launch, and the industry and customer feedback has been excellent.

2010 is going to be another big year for Brightcove.  We are expanding and growing across every dimension of our business, and we are not slowing down.  With David Mendels joining, and our investment profile ramping, we are well on our way to building one of the truly great Internet software companies of the next decade.

Jeremy Allaire
Chairman and CEO, Brightcove