BRIGHTCOVE Inc., a major online video company, created huge increases in trading on Friday, the firm’s first day as an IPO (initial public offering) company.
The Massachusetts-based BCOV’s shares settled at $14.31/share on the Nasdaq, rising 30 percent from its initial public offering of $11. Brightcove Inc. was able to sell 5 million shares halfway its predicted price of $10-$12 range.
Publicly-listed Brightcove Inc. manufactures software products to distribute and publish professional and digital media materials.
The company had almost 4 thousand clients in over 50 geographical locations at the last quarter of 2011. Its subscribers include financial, services and tech firms, retail, media and even non-profit institutions and government agencies.
The firm said that its Brightcove Video Cloud, which was introduced in the market in 2006, is the leading online video infrastructure in the world.
Brisk sales
This type of tool enables clients to distribute and publish video to web-linked gadgets and boasts of many features that include analytics, format conversions and ad integration.
BCOV launched another tool in May last year – the Brightcove Application Cloud – that allows clients to post and share video via software apps across multiple web-connected gadgets.
The company offers software through subscription terms and has maintained 94 percent of its revenues throughout 2011, paving the way to solid profits.
Its total revenues climbed to 45 percent to $64 million as BCOV enticed more subscribers, though the company’s net loss slight grew from $17 million to $18 million.
BCOV has never enjoyed huge sales since its inception in 2004 and forecasts to incur some losses on a yearly basis at least by the end of the year.
Growing… and growing
Meanwhile, the online video game market is rapidly becoming more in demand as people’s “addiction” of the Internet spreads into all corners of the globe.
All types of web-based gambling aside, the video game market is seen to expand to more than $80 billion in total sales by 2015, a way of life that takes advantage of people’s adoption if not need for diversion and entertainment.
In fact, online games are already starting to emerge as among the biggest contributors of growth in the information technology and telecommunications industry.
In China, for instance, it is expected that more than 50 percent of the country’s total population will have access to online video before 2013. The country currently has the biggest online users in the world.
