Online video platform Brightcove is hoping to capitalize on investors' captivation with the cloud this week. The on-demand software company is expected to offer 5 million shares on Thursday at a price range of $10 to $12. Trading on the NASDAQ should begin on Friday under the symbol BCOV. After last week saw eight deals produce strong returns (15% on average), Brightcove is looking to carry the momentum as the only new deal on the calendar this week.
Brightcove's software gives companies all the tools necessary to publish and manage online videos. A global customer base of 3,872, including Intel and Macy's, tallied an average of 743 million views per month in 2011 using its platform. Annual premium subscriptions (91% of sales) are targeted at enterprises, while monthly Express subscriptions (9%) mostly serve small businesses.
As the leader in the online video platform space, Brightcove is well-positioned to capitalize on an expanding market opportunity, which could reach nearly $6 billion by 2015. Given that on-demand tech IPOs, led by Guidewire (GWRE, up 72% from its IPO price), have performed well recently, a rapidly growing company like Brightcove should prove attractive to investors.
