Shares of Brightcove (BCOV 3.12%) were tumbling today after the company reported its first-quarter results. Despite both a revenue and an earnings beat, the tech stock had fallen by 19.3% as of 12:05 p.m. EDT.
Brightcove's revenue rose 18% in the quarter to $54.8 million. That figure beat analysts' consensus revenue estimate of $53.4 million for the quarter. The company's non-GAAP (adjusted) earnings per share of $0.15 also outpaced analysts' expectations of $0.10 per share for the quarter.
"Brightcove's performance in the first quarter further demonstrates that our strategy is working, highlighted by double-digit subscription revenue growth and our best-ever adjusted EBITDA margin," Brightcove's CEO Jeff Ray said in a press release.
The company's adjusted EBITDA for the quarter was $8.6 million, up from $3.7 million in the year-ago quarter.
But despite strong EBITDA growth and the fact that Brightcove beat analysts' consensus revenue and earnings estimates, the company's stock fell sharply today. Investors likely weren't happy with the company's second-quarter outlook.
Brightcove's management said that the company's second-quarter sales would be between $49.5 million to $50.5 million, up from $47.9 million in the year-ago quarter. But investors were likely disappointed that non-GAAP earnings would be in the range of $0.02 to $0.04 per share, down from $0.07 per share in the second quarter of 2020. With today's massive share price drop, Brightcove's stock is down 15% year to date.