Brightcove Inc., a Cambridge company known for its Internet video platform and online video tools, made an impressive debut on Wall Street yesterday as its stock rose 30 percent on the firm’s first day of trading, to close at $14.30, $3.30 above its offering price.
The company had priced its initial public offering of 5 million shares at $11 per share. By midday they were trading on the Nasdaq Global Market at $14.48, up nearly 32 percent, before floating down to $14.30 by closing time.
Founded in 2004 by Jeremy Allaire, Brightcove anticipated the growth of video on the Internet and has targeted its services - which include editing software and the hosting of online videos - to companies that are interested in adding video to their websites.
Because creating and hosting online videos demands technical expertise and the ability to store and serve large video files, many companies prefer to pay a specialist such as Brightcove rather than host video on their own servers.
Brightcove has a number of media customers, including The New York Times Co., The Boston Globe, The Weather Channel, and Conde Nast. The Times Co. - which owns the Globe and its websites Boston.com and BostonGlobe.com - also holds a small stake in Brightcove.
The company filed for the IPO in August. It reported revenue of $63.6 million last year, but was not profitable, showing a net loss of $17 million. In fact, since its inception, Brightcove has yet to finish a year with a profit.
In regulatory filings related to the IPO, Brightcove has said that it expects to keep losing money at least through the end of this year.
Brightcove has 312 employees, with more than 200 based in Cambridge. The company is planning to move to a new office on the Boston waterfront in April.D.C. Denison can be reached at email@example.com.