Brightcove (BCOV) Q1 2021 Earnings Call Transcript

Brightcove (BCOV -1.21%)
Q1 2021 Earnings Call
Apr 29, 2021, 5:00 p.m. ET

Contents:

• Prepared Remarks
• Questions and Answers
• Call Participants

Prepared Remarks:

Operator

Greetings. Welcome to the Brightcove first-quarter 2021 earnings call. [Operator instructions] Please note, this conference is being recorded. I will now turn the conference over to your host, Brian Denyeau.

Mr. Denyeau, you may begin.

Brian Denyeau -- Investor Relations Contact Officer

Good afternoon, and welcome to Brightcove's first-quarter 2021 earnings call. Today, we'll discuss the results announced in our press release issued after market close. With me on the call are Jeff Ray, Brightcove's chief executive officer; and Rob Noreck, Brightcove's chief financial officer. During the call, we will make statements related to our business that may be considered forward-looking and are pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements concerning our financial guidance for the second fiscal quarter of 2021 and the full-year 2021, expected profitability and positive free cash flow, our position to execute on our go-to-market and growth strategy, our ability to expand our leadership position, our ability to maintain and upsell existing customers, as well as our ability to acquire new customers.

Forward-looking statements may often be identified as the words such as we expect, we anticipate, upcoming or similar indications of future expectations. These statements reflect our views only as of today and should not be reflected upon as representing our views of any subsequent date. These statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from expectations, including the effects of the COVID-19 pandemic on our business operations, as well as the impact on general economic and financial market conditions. For a discussion of material risks and other important factors that could affect our actual results, please refer to those contained in our most recently filed annual report on Form 10-K and is updated by our other SEC filings.

Also during the course of today's call, we refer to certain non-GAAP financial measures. There is a reconciliation schedule showing the GAAP versus non-GAAP results currently available in our press release issued after market close today, which can be found on our website at www.brightcove.com. In terms of the agenda for today's call, Jeff will provide a summary review of our financial results, an update on our operations and a review of our strategy. Rob will finish with additional detail regarding our first-quarter 2021 results, as well as our outlook for the second-quarter and full-year 2021.

With that, let me turn the call over to Jeff.

Jeff Ray -- Chief Executive Officer

Thanks, Brian, and thanks to everyone for joining today. I hope you and your families continue to stay healthy and safe. Video continues to be the most powerful medium to connect people on a global scale. I am so proud of the entire Brightcove team and our ability to consistently meet our financial goals while delivering exceptional product innovation and customer experience.

We're off to a very strong start to 2021, with record first-quarter sales, driven by impressive performances in each region. Our performance reflects that video is an essential and rapidly growing technology across both media companies and enterprises. These results reinforce that our strategy is highly relevant, and our team is executing. We will continue to invest in innovation to provide the most comprehensive video delivery and optimization platform with solutions to satisfy multiple business use cases.

We've created an optimum direct sales engine while building an extensive channel ecosystem, all while ensuring the success of every one of our customers. Turning to a summary of our financial results. For the first quarter, revenue was $54.8 million, up 18% year over year and ahead of our guidance. Adjusted EBITDA was $8.6 million, up 132% year over year and well ahead of our guidance.

In February, we hosted our inaugural Analyst Day. If you couldn't attend, there is a replay of the event on our Investor Relations website. During this event, we outlined our vision for the future of the market and our strategy for aggressive growth. This included three primary focus areas.

First, a focus on innovation. Our goal is to create a highly differentiated platform powered by machine learning and AI to deliver superior video viewing experiences and business performance for our customers. This meets broadcast quality, reliable and secure video, combined with high-performing analytics and purpose-built applications that solve specific business needs across a variety of use cases. Add to this an app community marketplace, and our customers will have access to the most comprehensive video solutions for all their internal and external needs.

Second, we discussed our expanded go-to-market strategy, consisting of a highly scalable global direct sales engagement engine and an indirect selling model, leveraging strategic channel partners globally. And third, we outlined our plans for growth of our customer success and renewals teams and how it will positively impact our customers and our retention. I'd like to provide some updates on the most recent progress we've made in each of these key areas. Let's start with technology innovation.

Brightcove prides itself on being a product-driven company focused on solving the most complex customer challenges. Our goal is to deliver broadcast quality video to any device to audiences anywhere in the world in the most reliable and secure way possible. We recently released two new solutions that will deliver significant value for our customers. The first is playback restrictions, which provides customers with the ability to protect their content from being watched by unauthorized users.

The Brightcove platform makes video readily available to anyone who should see it and inaccessible to anyone who should not. Whether content is for an internal or external audience, free or monetized, Brightcove's playback restrictions provide the right level of security while still allowing viewers to access content from any device anywhere. Playback restrictions ensures that internal content remains confidential and that every view accounts toward monetization investments while fully protecting our customers' content and helping maintain brand integrity. We also recently launched Brightcove Virtual Events for business, an intuitive, easy-use virtual event solution for highly repeatable midsized events.

Virtual events for business is a virtual event creation, marketing and delivery platform designed to easily service the rapidly expanding number of events hosted by organizations. The solution offers customizable event templates, interactive cost to action, post-event archiving, multi-device support and attendee interactivity features, as well as live clipping of event video to multiple social media channels. Additionally, virtual events for business include Zoom and Microsoft Teams integrations, a registration connector for Cvent and user engagement analytics. Many enterprises are planning for life after COVID and want to continue to maximize the extended reach they have achieved with virtual events over the past year and a half.

They recognize that video is an essential tool to connect with audiences across all aspects of their organization. With Brightcove Virtual Events for business, we have made it simple for enterprises to hold high volume, repeatable events. Let's turn now to our go-to-market execution and the broad base of customers leveraging video to achieve success across many different use cases. We had a solid sales quarter with several significant wins.

Some notable examples include: Box, Inc., a cloud content management platform that enables organizations to make it easy to access information from anywhere and collaborate with anyone. Box chose Brightcove to quickly and efficiently improve its video asset management and to get actionable analytics for its digital marketing team to improve campaign performance. The company also selected Brightcove for our technology reputation in the market. They needed a strategic partner who could share insights into how the most successful brands in the industry leverage video to work harder and drive more impactful ROI.

Giants Enterprises LLC, more commonly known as the San Francisco Giants, turned to Brightcove when they were looking for new ways to create regular engagement with seasoned ticket holders, casual fans, sponsors and business partners around the world. With Brightcove, the Giants will be able to create and manage several virtual events, both large and small, to interact with these different audiences. We signed a Brightcove Beacon win with Multiscreen, the Singapore-based parent for Spool, an OTT provider with 47 million registered users in multiple regions worldwide. Spool originally developed a homegrown, do-it-yourself streaming service that had become increasingly costly and complex to maintain as it scaled its business.

The Spool team chose Brightcove Beacon to significantly reduce costs, accelerate their ability to launch new web, iOS and Android experiences, and improve customers' using experiences. Convene is an innovative and well-known commerce service in South Korea that directly connects famous restaurants with consumers by using short video clips to allow the restaurants to display and explain their food. As its business grew, Convene chose Brightcove after it recognized its customers' expectations and support needs were not met by its previous streaming video provider. Now Convene is reaching more customers on a customized platform and delivering a much improved customer experience with Brightcove.

Outside Magazine is an outdoors active lifestyle digital publisher with an extensive library of ad-supported video-on-demand content viewed by enthusiasts around the world. After facing performance and quality issues with its previous video platform, Outside selected Brightcove for the reliability of the video experience, robust advertising capabilities, strong analytics, playlist support, integration with third-party CMS providers and excellent customer support services. In the first quarter we welcomed many other new customers to Brightcove, including Akamai Technologies; NewCo, which is a Merck company; GEDI Digital and Hagerty. Additionally, we are proud of the continued commitment from Little League Baseball, Inc., EMC Corporation, Tevar, Forbes, Entercom Operations, Sephora and Kraft Heinz, who recently renewed and expanded their contracts with us.

We also had another impressive quarter of virtual events powered by Brightcove, highlighted by the fantastic success of the 100% digital South by Southwest Online and South by Southwest EDU Online events. Using Brightcove, South by Southwest streamed and monetized close to 650 hours of live and prerecorded content with Brightcove Beacon and our cloud playout technology across five different channels. South by Southwest also provided expanded viewing options that lasted weeks longer than the traditional festival, further extending the reach and impact of its broadcast quality content. After the event concluded, a South by Southwest team member said, Brightcove's reputation of leadership in the industry went a long way in achieving buy-in from filmmakers and talent.

The video technology enables us to accommodate the creativity of our creators and audiences. Brightcove is more than a vendor, definitely a partner. We are looking forward to doing it again together next year. As we increase the value we deliver to customers, a growing number of them are becoming passionate advocates for Brightcove.

As a result, we hosted several virtual events where customers joined us to share their views and experiences with video and the impact it has on a broad range of industries, including FreightWaves, the Seattle Symphony, Revere, USA Volleyball, the Vegas Golden Knights, USGA, the Atlanta Symphony, Adobe and Synopsys. One of the primary investment areas we highlighted during Analyst Day, as part of our go-to-market strategy was expanding our partner channel. We made significant progress this past quarter, signing 10 new partners, including several in Europe and Asia to expand our presence in these regions. Most recently, we announced our partnership with L2, a solution provider for Arts and cultural institutions.

L2 will integrate Brightcove with Tessitura and Stripe to provide a seamless interface that enables cultural organizations to allow viewers to purchase and stream performances instantly. Over the past year, performing arts and cultural organizations were impacted by the pandemic and stay-at-home orders. These organizations worldwide turned to Brightcove to help reach audiences and monetize their content in a way they have never done before, through video. The L2 partnership extends our reach in this critical market.

It demonstrates that cultural organizations recognize video's positive long-term impact and broad audience reach and that it will be a strategic part of their growth even post COVID. Scaling our indirect channel is a key strategic priority and the biggest incremental revenue growth opportunity in our business. We are delighted with the progress we have made with the channel and are confident in our ability to substantially increase its sales contribution over the next few years to 30% to 50% of bookings. I'd like to finish by providing an update on our work to develop a best-in-class renewals business.

As mentioned on our last call, we appointed a new team to lead our renewals business and implemented a new organizational structure. The team has delivered on several important items in the first quarter, including completing a thorough segmentation of our customers based on their needs and support levels, which allows for more touch points throughout the customer journey, building a community and advocacy program to better connect our customer base. The focus of these community groups is on both product and industry needs, and we already have virtual events scheduled with customers in the coming months. And moving forward, we will allocate additional resources and invest in our customer onboarding process with new programs available to all customers worldwide.

We are confident these changes, combined with the strategic priorities I mentioned earlier, will significantly impact our renewals business by making Brightcove an increasingly valuable part of our customers' businesses. We are applying the same principles that we used with our product and go-to-market teams, and we're confident that we will have the same level of success. As I've noted previously, it will take time for the impact of these changes to be apparent, but we expect investors will begin to see sustainable improvement in the second half of this year. I'd like to wrap up by reiterating what an exciting time this is for Brightcove and how proud I am of our team.

Video continues to increase in importance for media companies and enterprises, and they are turning to Brightcove as their strategic partner. Our product portfolio is the best it's ever been, and we have an aggressive development road map that we believe will enhance the value we deliver for customers. We have an exceptionally strong team showing evidence of execution in all areas of our business. We are in a great position to accelerate revenue growth, expand margins and create value for our shareholders over time.

With that, let me turn the call over to Rob to walk you through the numbers. Rob?

Rob Noreck -- Chief Financial Officer

Thank you, Jeff, and good afternoon, everyone. I will begin with a detailed review of our first quarter, and then I will finish with our outlook for the second quarter and the full-year 2021. Total revenue in the first quarter was $54.8 million, which was above our guidance range. Breaking revenue down further, subscription and support revenue was $50.8 million, and professional services revenue was $4 million.

12-month backlog, which we define as the aggregate amount of committed subscription revenue related to future performance obligations in the next 12 months, was $117.1 million. This represents a 17% year-over-year increase. On a geographic basis, we generated 56% of our revenue in North America during the quarter and 44% internationally. Breaking down international revenue a little more, Europe generated 16% of our revenue, and Japan and Asia Pacific generated 28% of revenue during the quarter.

Let me now turn to the supplemental metrics we share on a quarterly basis. Our recurring dollar retention rate in the first quarter was 85%, which was below our target range of low to mid-90s. We had two relatively large media customers that downgraded or did not renew during the quarter. Jeff outlined the progress we have made operationally to improve our renewals performance.

There is a natural lag between when these changes are implemented and when they begin to positively impact our retention rate. We expect our retention rate to be under continued pressure in Q2 before we see sustainable improvement in the second half of the year. Our customer count at the end of the first quarter was 3,312, of which 2,273 were classified as premium customers. Looking at our ARPU within our premium customer base, our annualized revenue for premium customer was $97,000, which was up 15% year over year and excludes our entry-level pricing for starter customers, which averaged $4,300 in annualized revenue.

Looking at our results on a GAAP basis. Our gross profit was $35.6 million. Operating income was $6.1 million and net income per share was $0.12 for the quarter. Turning to our non-GAAP results.

Our non-GAAP gross profit in the first quarter was $36.2 million, compared to $28.8 million in the year-ago period and represented a gross margin of 66%, which was up nicely from 62% in the first quarter of 2020. Subscription and support revenue represented approximately 93% of our total revenue and generated a 70% gross margin in the quarter, compared to a 64% gross margin in the first quarter of 2020. Non-GAAP income from operations was $7.2 million in the first quarter, compared to $2.3 million in the first quarter of 2020. Adjusted EBITDA was $8.6 million in the first quarter, compared to $3.7 million in the year-ago period and above the high end of our guidance range for the quarter.

Adjusted EBITDA margin was 16% in the quarter, an all-time high, investing in our key growth areas while improving our profitability as an important part of our strategy, and we are pleased with the progress we have made to date. Non-GAAP diluted net income per share was $0.15 based on 42.5 million weighted average shares outstanding. This compares to net income per share of $0.04 on 39.4 million weighted average shares outstanding in the year-ago period. Turning to the balance sheet and cash flow.

We ended the quarter with cash and cash equivalents of $35.2 million. We used $604,000 in cash flows from operations, and free cash flow was a negative $2.1 million. After taking into account $1.5 million in capital expenditures and capitalized internal use software. I would like to finish by providing our guidance for the second quarter and full-year 2021.

For the second quarter, we are targeting revenue of $49.5 to $50.5 million, including $1.5 million of overages and approximately $2.7 million of professional services revenue. From a profitability perspective, we expect non-GAAP operating income to be $1 million to $2 million and adjusted EBITDA to be between $2.40 million and $3.4 million. Non-GAAP net income per share is expected to be in the range of $0.02 to $0.04 based on 42.9 million weighted average shares outstanding. As a reminder, our revenue guidance reflects the retention dynamics in the first quarter I discussed earlier.

We expect quarterly subscription revenue to return to sequential growth starting in the third quarter. For the full year, we are maintaining our previous guidance. We continue to target revenue of $211 million to $217 million, including $6 million of overages and approximately $12.5 million of professional services revenue. From a profitability perspective, we expect non-GAAP operating income of $20 million to $25 million and adjusted EBITDA to be between $25.5 million and $30.5 million.

Non-GAAP net income per share is expected to be in the range of $0.43 to $0.54 based on 43.1 million weighted average shares outstanding. For the full year, we are now targeting free cash flow of $15.5 million to $20.5 million. Reduction in our cash flow guidance is primarily driven by the weakening Japanese yen. To wrap up, Brightcove delivered another strong performance in the first quarter.

We are executing well against our strategic priorities and increasing the value we deliver to our customers. We believe this positions us well to drive even better top and bottom line performance as we continue making progress toward our goal of being a Rule of 40 company. With that, we will now take your questions. Operator, we are ready to begin Q&A.

Questions & Answers:

Operator

Thank you. [Operator instructions] Our first question is from Mike Latimore with Northland Capital Markets. Please proceed with your question.

Mike Latimore -- Northland Capital Markets -- Analyst

Thanks. Yeah. Congratulations on the great start to the year here.

Rob Noreck -- Chief Financial Officer

Thanks, Mike.

Mike Latimore -- Northland Capital Markets -- Analyst

I think the last quarter you said you would expect about -- I think it was $3.1 million of revenue churn this year. Is that still roughly what you're thinking about?

Rob Noreck -- Chief Financial Officer

Yeah. I think that that was -- we called that out specifically to the two customers that we knew were churning. The reality is, in the first quarter it was a little bit heavier than that. But as we said in the prepared remarks, as we go forward in the year, we expect that in Q3 we'll return to quarter-over-quarter sequential growth on the subscription revenue.

Mike Latimore -- Northland Capital Markets -- Analyst

Yeah. Got it. And then maybe any comment on bookings? I think last quarter, you said there was a record bookings quarter. How are bookings in first quarter relative to, say, normal first-quarter bookings?

Rob Noreck -- Chief Financial Officer

Yeah. It was actually our best first quarter ever from a booking standpoint.

Mike Latimore -- Northland Capital Markets -- Analyst

OK. And then, from a channel standpoint, I think you did 20% last quarter. Like how did the channel perform this quarter?

Rob Noreck -- Chief Financial Officer

Yeah. So we saw good traction in terms of the number of channel partners that we signed. We talked about in the script that we signed about 10 new channel partners. But we were a little bit down quarter over quarter in terms of the percentage of business that rolled through the channel.

As we look at that, though, it's not indicative of where we see the channel going. We continue to see the channel driving 30% to 50% of our new bookings in the future.

Mike Latimore -- Northland Capital Markets -- Analyst

Great. And then just last on virtual events. Any just sort of qualitative commentary on the demand or the pipeline you're seeing there?

Jeff Ray -- Chief Executive Officer

Hey. It's Jeff. How are you doing, Mike?

Mike Latimore -- Northland Capital Markets -- Analyst

Hi, Jeff. Good.

Jeff Ray -- Chief Executive Officer

Demand is solid. And as we talk to customers, there's no discussion about, well, when we come out of COVID, we're going to just go back to live events, we're not going to do virtual events anymore. We continue to see interest in making this part and parcel to what they do. And in fact, that's why we announced the new virtual events per business.

We found that we were overly complicating things. This is one of the dangers of having media quality, broadcast quality technology as it can be kind of overwhelming when we go into talk to the CMO or someone on the CMO staff about events. And so we said, let's make this a lot simpler, easier to understand. Let's bundle this in a way that they can easily consume it.

And it also lets us go after a little bit more of the mid-market business. So we're feeling good about where we are with that. We also have a pretty aggressive product pipeline in terms of new features and enhancements that the product team is committed to. So we know what we need to do to enhance the functionality and the features.

We also have a great partner community that rounds out the kit. So where there are gaps that we can't fill, we have great partners that are stepping in to do that.

Mike Latimore -- Northland Capital Markets -- Analyst

Great, great. Sounds good. Good luck this year.

Operator

Thank you. Our next question is from Steven Frankel with Colliers. You may proceed with your question.

Steven Frankel -- Colliers Securities -- Analyst

Good afternoon. Rob, can we just start and get a little more clarity on this retention issue? You had telegraphed the two customers that were going away in Q2, leading to that sequential downtick. So are we to read into the Q1 number, there were some other customers that turned off as well in Q1?

Rob Noreck -- Chief Financial Officer

Yeah, that's right. And I talked about that in the script where there were actually two additional media customers, one of which downgraded in a similar situation to -- in H4 last year when they brought a portion of the business in-house and one of which was actually a consolidation on platforms within a company at post-merger.

Steven Frankel -- Colliers Securities -- Analyst

OK. And then we have two more to go through in Q2. And then as you look at your portfolio of media customers, do you think you're through a lot of this churn? Or is this something that is just the nature of the beast with media consolidations and you're going to have to deal with this going forward?

Jeff Ray -- Chief Executive Officer

Yeah. This is Jeff. Hey, Steven. Yeah, there's certainly churn in media.

There's -- I mean, you see it every day, right? You saw what Verizon announced today. But I'm excited about the way we're getting control of this for the things that we can control. The -- we had sent a message to everybody last summer that we were going to really address the renewals from the ground up and across. And we've done that.

We are now fully deployed with the new renewal strategy, new organization model, new people in leadership roles, new processes, much more precision in tracking out a rolling 12-month risk assessment of our largest customers, be it enterprise or media so that we do a better job of anticipating and predicting that and heading that off in the past, better use of technology and best practices. And as Rob said, we expect that -- while we're excited about where the team is and their progress against the plan, we don't see this really helping us until the second half of the year.

Steven Frankel -- Colliers Securities -- Analyst

OK. And then ARPU was surprisingly strong, given last quarter was boosted by that Japanese one-time event. Do we contribute the sequential strength to South by Southwest? Or you're just doing a good job of kind of selling a larger initial package than --

Rob Noreck -- Chief Financial Officer

Yeah, it -- yeah, Steve, it really wasn't South by Southwest, South by Southwest bought more of a kind of annual license. They didn't really buy just for the short period of the event because they launched that on Beacon, there's the follow-on content and follow-on access to that content. So that revenue didn't all take place in Q1. What you saw in the first quarter was continued growth in kind of those initial new deals, but also expansion with our current customers.

Steven Frankel -- Colliers Securities -- Analyst

OK. Great. That's a healthy sign. And then, give us some color on the margin pressure in Q2.

Obviously, yes, you've got a revenue step down in the subscription and support side. But there is a lot of margin pressure there, maybe more than I would have thought. And what's behind that in Q2?

Rob Noreck -- Chief Financial Officer

Yeah. I think there was two things. One is obviously the revenue step-down, right? We're not pulling back on operating expenses in the second quarter, in line with that. And the second piece is we're continuing to invest in sales and marketing, right? We see the opportunity in front of us, and we're continuing to make those investments so we can capitalize on that.

Steven Frankel -- Colliers Securities -- Analyst

OK. And then lastly, what were overages in the quarter?

Rob Noreck -- Chief Financial Officer

Overages are right around $2.2 million.

Steven Frankel -- Colliers Securities -- Analyst

Thank you.

Operator

Our final question is from Eric Martinuzzi with Lake Street Capital Markets. Please proceed with your question.

Eric Martinuzzi -- Lake Street Capital Markets -- Analyst

Yeah. I wanted to dive into the additional turnover or churn issues that you talked about for Q1. I understand you have a downgrade and somebody takes it in-house. But just wondering, on the platform consolidation, was that consolidating to an in-house platform also? Or was that a consolidating to a competitor's platform?

Rob Noreck -- Chief Financial Officer

Yeah. It was consolidating to a mix of platforms across. It was a joint OTT and then some video delivery. So it was consolidating to really a competitor, not an in-house platform.

And again, it was around one company had two platforms and the parent company one.

Eric Martinuzzi -- Lake Street Capital Markets -- Analyst

OK. All right. And then, as I look at the kind of implied for 2021, just backing off the services guidance from the full-year guidance and then knowing that we're going to kind of trough here in Q2 on the subscription and then raise our head back up in Q3. It does look like a pretty substantial implied step up.

I'm wondering, that guidance that you've got, does that -- as we decline here in Q2, do we spread that subscription step up kind of equally across quarters? Or does it kind of pop back up in Q3 and maintain?

Rob Noreck -- Chief Financial Officer

Yeah. I would think you would see a relatively consistent step from Q2 to three and then Q3 to four.

Eric Martinuzzi -- Lake Street Capital Markets -- Analyst

OK. And then the -- when you talk -- I think, Jeff, you may have touched on this, but we're talking about virtual events for business, for virtual event creation. And I think last summer you had a product or a capability platform, whatever the terminology, virtual event experiences, is that what you mean? This is kind of a template version of that same product that came out a year ago that was more of a toolbox.

Jeff Ray -- Chief Executive Officer

Yeah. This makes it just easier to buy it and to deploy it. We've done enough of these now to know where the sweet spot is. We also know where our partners' products do a great job of augmenting where our gaps are.

And so we're just collectively taking that experience and putting it together. Also, this time around, I think we've just got a stronger marketing organization that knows how to use better precision in targeting those CMOs and those businesses that will find this attractive. So it's that collective experience and applying that, knowing kind of where this market is headed. And again, in addition to this, serious investment from R&D and engineering and continuing to add more functionality and features in the products.

Eric Martinuzzi -- Lake Street Capital Markets -- Analyst

OK. All right. I appreciate the answers there. Thanks for taking my questions.

Operator

Thank you. Ladies and gentlemen, we have reached the end of the question-and-answer session. I will now turn the call over to Jeff Ray for closing remarks.

Jeff Ray -- Chief Executive Officer

Thank you. Again, what a great quarter. It was a lot of fun seeing everything come together. We know we still have some challenges in renewals.

We recognized that last summer. And I believe we're well on the path to resolving that. And while I've talked a lot about the things we're doing in renewals team, I just will remind you that there are four legs to this stool as we fix this. It's more than just building out a much, much stronger renewals team and process.

It's also continued aggressive investment in enterprise-class applications that have specific solutions that solve specific business problems. Those are naturally more sticky, also expanding the app developer community because the platform is built on open APIs, and we offer SDKs. That makes it very easy to go out and recruit app developers who extend what we do and ultimately make the products more sticky. And then finally, you'll just start seeing a whole lot more later this year about the investments that we're making in data analytics and machine learning so that particularly our media companies every month will get more and more valuable, actionable data from their use of our video.

So we feel great about the year. I'm proud of what the team has done. And for us, it's back to business. Thank you, everyone, and continue to stay safe.

Operator

[Operator signoff]

Duration: 37 minutes

Call participants:

Brian Denyeau -- Investor Relations Contact Officer

Jeff Ray -- Chief Executive Officer

Rob Noreck -- Chief Financial Officer

Mike Latimore -- Northland Capital Markets -- Analyst

Steven Frankel -- Colliers Securities -- Analyst

Eric Martinuzzi -- Lake Street Capital Markets -- Analyst

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