Brightcove shares soar 43% in Wall Street debut

Cloud-based video platform provider raises $55 million in initial public offering

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Shares of cloud-based video publishing platform vendor Brightcove (NASDAQ: BCOV) jumped 43% above their $11 offer price Friday as the company made its initial public offering.

Brightcove was at 14.66 early Friday afternoon, reaching as high as 15.76 shortly after the stock began trading around 10 a.m.

The video-platform company, based in Cambridge, Mass., raised $55 million in the offering of 5 million shares. Brightcove priced its stock in the middle of the projected range of $10 to $12.

Morgan Stanley and Stifel Nicolaus Weisel were lead underwriters for Brightcove's IPO.

Brightcove is one of several cloud-based companies that either have or are expected to go public in the early part of 2012. Another one, Guidewire Software (NASDAQ: GWRE) -- a maker of web-based software for the insurance industry -- debuted on January 25 at $13 a share. By Friday afternoon, Guidewire stock was at 22.58, a gain of 74% from the offer price and 32% above the first-day closing price of 17.12.

Brightcove generates the vast majority of its revenue from its subscription-based Video Cloud platform, though late last year it released a new product called AppCloud. The company claims nearly 4,000 customers globally, including media giants such as A&E Television Networks, Discovery Communications, The New York Times and IDG.

Revenue was $63.6 million in 2011, a gain of 46% from revenue of $43.7 million in 2010. From 2009 to 2010, revenue growth was just 21%.

While Brightcove is losing money, last year's net loss of $17.3 million was down from $17.8 million in 2010.

Next week should see the ticker debut of software-as-a-service provider Bazaarvoice, which markets a social platform and network for corporations to connect with its customers and customers to connect with each other. I'll have more details about this Austin, Texas-based start-up next week.

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