Brightcove stock surges in 1st day of trading

[February 18, 2012]  CAMBRIDGE, Mass. (AP) -- Brightcove Inc.'s shares are surging in their first day of trading on the Nasdaq exchange on Friday.

The company, which provides cloud-based video publishing services, raised $55 million in an initial public offering. It priced 5 million shares at $11 each, within its expected range of $10 to $12 for each share.

Brightcove plans to use the proceeds to repay debt and operate its business.

The Cambrige, Mass., company's main product, Video Cloud, lets customers publish and distribute video online. Its second product, App Cloud, went on sale in November. It's intended to help developers publish video and other content for smartphone and tablet apps.

Cloud-based software is kept on remote servers and delivered over an Internet connection rather than being installed on individual computers.

Brightcove had nearly 3,900 customers at the end of 2011.

Shares are up $4.14, or 38 percent, to $15.14 in afternoon trading. The shares are trading under the "BCOV" ticker symbol.

Revenue in 2011 rose 45 percent to $63.6 million, with nearly all of that coming from the Video Cloud product. But the company has been unprofitable since it was started in 2004. Brightcove says it expects yearly operating losses through at least 2012.

[Associated Press]

Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.