Based in Boston and founded in 2004, Brightcove Inc (BCOV) is a global provider of video advertising products and services. Their products enable companies to reach their customers through video advertising in the fastest and easiest way possible. Their clients include Dunkin’ Brands, Puma, Lowe’s, Hugo Boss, Showtime, and many more. Brightcove has employees in nine countries and over 4,500 customers in 75 countries, but their platforms are used to reach almost all countries and territories in the world.

They have a range of products such as their Video Cloud, which is an online video platform with an HTML5 video player. This product helps their clients publish their videos on all internet connected devices. In 2016, BCOV’s customers used Video Cloud to deliver 2.7 billion video streams per month.

Brightcove’s Zencoder is the service that downloads the videos and securely converts them into all of the different forms necessary to accommodate the needs of varying devices. The Video Cloud and the Zencoder helps ads reach target markets regardless of the device that they are using.

Their other products – Once, Perform, and the Video Marketing Suite – ease the processes of strategically inserting ads, avoiding ad blockers, and collecting data to optimize marketing initiatives.

Other than their own clientele, Brightcove has partnerships with large media and communications firms such as JWT, whose clients include giants such as Ford, Bayer, Johnson Johnson, Kraft, Kellogg’s, Unilever, Nestle, and more.

Brightcove’s financial numbers are not too great, but they are improving as seen by their income statement:

Although they are not profitable yet, they have grown their cash flow from $23 million in 2014 to $37 million in 2016, and their revenue has also been consistently creeping upward. They have the capital to improve their products and improve their relationships with their big-name clients.

As seen by BCOV’s five-year chart, they are trading near their lows in the $6.20 range. However, their financials and their chart do show some growing room for near-term gains.

The fact that Brightcove already has skin in the game of the newly popular and growing cloud-based computing world, with great technology and customers, gives them unyielding potential. The company could be a diamond in the rough right now, as it is still in the beginning stages and needs more time to develop. That being said, there are clearly several risk factors when it comes to investing in this company, such as tight competition, cyber security, and their less than stellar financial reports.

This company has the workforce expertise, as their leadership has experience at companies like Oracle, Adobe, and EMC. It is possible that this company can blossom into something great and become a household name. At the inexpensive price at $6 and change it might be a good idea to start a small, long position or to simply track the BCOV’s progress to see if and/or when it looks like they might become the real deal.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.