Beamr Issues Annual CEO Letter to Shareholders: Highlighting Beamr Cloud Launch, 2023 Financial Results and Achievements and Q2 2024 Upcoming Milestones
- Beamr (Nasdaq: BMR) issued its annual Letter to Shareholders highlighting achievements in 2023 and plans for 2024.
- The company raised $13.8 million in an underwritten offering in February 2024 to expand its video cloud services.
- Financially, Beamr saw a 2% increase in revenue to $2.9 million in 2023, with a net loss of $0.7 million for the year.
- Q4 2023 showed strong revenues, with $1.5 million compared to $1.6 million in Q4 2022.
- The net loss for Beamr in 2023 was $0.7 million, indicating a financial loss for the year.
- Despite the increase in revenue, Beamr still experienced a net loss, which could be a concern for shareholders.
- The decrease in selling and marketing expenses could potentially impact the company's ability to reach new customers and expand its market presence.
Insights
An examination of Beamr's financial results reveals a nuanced picture of the company's economic health. The slight increase in revenue, coupled with a decrease in research and development and selling and marketing expenses, suggests an effort towards cost efficiency. However, the substantial increase in general and administrative expenses, largely due to the costs associated with the company's IPO, indicates a significant investment in the company's infrastructure and compliance as a public entity.
The reduction in net loss and the decrease in financing expenses are positive indicators of financial improvement. The decrease in net loss by approximately 42% is particularly noteworthy as it suggests an improvement in operational efficiency. Moreover, the company's cash and cash equivalents have seen a substantial increase, providing a buffer for future investments and operational costs.
Investors may find the company's strategic focus on expanding into emerging markets such as User-Generated Content, Generative AI, IoT and OTT Streaming promising. However, the actual impact of these expansions on the company's bottom line will require close monitoring of subsequent financial results and market penetration.
Beamr's strategic emphasis on emerging markets and the integration of AI into their cloud services positions the company at the forefront of several growing industries. The video compression market is expected to grow significantly, driven by the increasing demand for high-quality video streaming services and the proliferation of video content across various platforms.
The company's move to modernize video standards and accelerate the adoption of new ones like AVC to HEVC is aligned with industry trends towards higher efficiency video coding. This transition is critical as it can significantly reduce bandwidth and storage requirements, which is a major concern for content providers and distributors.
Beamr's focus on enabling vision AI processes in their cloud service could potentially open up new revenue streams and partnerships, as AI becomes increasingly integrated into video analytics and other advanced applications. The technical paper demonstrating a 40% file size reduction showcases Beamr's potential to contribute to cost savings and efficiency improvements for clients, which could be a strong selling point.
Beamr's technological advancements, particularly in the context of their Beamr Cloud SaaS solution, represent a significant step in video processing technology. The ability to perform high-quality, high-scale video processing at competitive prices is a competitive advantage, particularly as the industry moves towards more cloud-based solutions.
The integration of AI workflows into Beamr Cloud is a strategic move that aligns with the broader industry's shift towards AI and machine learning to enhance video processing capabilities. As AI continues to disrupt various sectors, Beamr's initiative to incorporate AI into video optimization could lead to more sophisticated and efficient video processing tools, which are increasingly in demand.
The technical achievement of reducing video file sizes by an average of 40% has the potential to revolutionize the industry by enabling significant cost savings for storage and bandwidth, which are two of the most considerable expenses for companies dealing with large volumes of video data.
Herzliya Israel, March 04, 2024 (GLOBE NEWSWIRE) -- Beamr (Nasdaq: BMR), a leading supplier of video optimization technology and solutions, today issued its annual Letter to Shareholders from Sharon Carmel, Chief Executive Officer of Beamr.
Dear Shareholders:
As we look toward a promising and exciting year ahead, I am proud to reflect on Beamr’s achievements throughout 2023, including our financial results for 2023, our recent achievements so far in Q1 2024, and look forward to our plans for Q2 2024.
2023 was the year we built the Beamr Cloud service, and 2024 is the year we plan to invest in expansion of our business.
Beamr is experiencing a pivotal moment following the launch of the Beamr Cloud SaaS solution, which enables everyone to perform high quality, high scale video processing at attractive pricing. Our new video cloud service, launched in February 2024, offers more capabilities than we initially expected. They include video standards modernization from AVC to HEVC, and adoption acceleration of new standards.
Just before announcing Beamr Cloud launch, we raised gross proceeds of
During Q2 2024, Beamr plans to emphasize enabling vision AI processes in Beamr Cloud. Recently we published a technical paper that showed how Beamr tech downsized video files by
2023 Highlights
In 2023, we took our vision public on NASDAQ, focusing on optimizing video at scale.
We signed up another one of the top five largest media companies in the world to provide our video compression and optimization technology and solutions to its products and that following such agreement, Beamr is now working with three of the top five largest media companies in the world. We believe that this is a testimony of our leadership in video compression and optimization solutions.
2023 Financial Results
Regarding our financial results for 2023:
- Revenues increased by
$0.05 million or2% to$2.9 million for the year ended December 31, 2023, from$2.86 million for the year ended December 31, 2022. The increase was primarily due to binding transactions with new customers versus other transactions that were terminated.
- Cost of revenues were
$0.09 6 million the year ended December 31, 2023 compared to$0.09 8 million for the year ended December 31, 2022, with no material change during those periods.
- Research and development expenses decreased by
$0.2 million , or12% to$1.8 million for the year ended December 31, 2023, from$2 million for the year ended December 31, 2022. The decrease was primarily due to a decrease in salaries due to changes in personal and capitalization of costs consisting mainly of direct labor (including stock-based compensation expenses) associated with creating the internally developed software related to our cloud-based SaaS solution offset by an increase in professional fees.
- Selling and marketing expenses decreased by
$0.54 million , or60% to$0.36 million for the year ended December 31, 2023, from$0.9 million in 2022. The decrease was primarily due to a decrease in salaries and professional fees.
- General and administrative expenses increased by
$0.7 million , or82% to$1.5 million for the year ended December 31, 2023, from$0.83 million in 2022. The increase was primarily due to professional fees related to legal, accounting, investor relations as well as insurance coverage resulting from the completion of our initial public offering in March 2023.
- Financing expenses, net decreased by
$0.4 million , or230% to$(0.2) million for the year ended December 31, 2023, from$0.17 million in 2022. The decrease was primarily due to income from the change in fair value of convertible advanced investment, decrease in amortization of discount and accrued interest and interest on bank deposits, offset by the change in fair value of derivative warrant liability and change in exchange rate differences.
- Net loss for the year ended December 31, 2023 was
$0.7 million or$0.06 b asic net loss per ordinary share, compared to a net loss of$1.2 million , or$0.48 b asic net loss per ordinary share, in the year ended December 31, 2022.
- Beamr ended 2023 with
$6.1 million in cash and cash equivalents, compared to$0.7 million as of December 31, 2022. This does not include$13.8 in gross proceeds received from our recently completed underwritten offering in February 2024.
Furthermore, Q4 2023 specifically presented strong revenues, consistent with our legacy business's robust performance in the fourth quarter of the year with
Respectfully,
Sharon Carmel
Chief Executive Officer, Beamr Imaging Ltd.
A copy of Beamr’s annual report on Form 20-F for the year ended December 31, 2023 has been filed with the U.S. Securities and Exchange Commission at https://www.sec.gov/ and posted on Beamr’s investor relations website at https://www.investors.beamr.com/. Beamr will deliver a hard copy of its annual report, including its complete audited consolidated financial statements, free of charge, to its shareholders upon request at investorrelations@beamr.com.
About Beamr
Beamr (Nasdaq: BMR) is a world leader in content adaptive video solutions. Backed by 53 granted patents, and winner of the 2021 Technology and Engineering Emmy® award and the 2021 Seagate Lyve Innovator of the Year award, Beamr's perceptual optimization technology enables up to a
Forward-Looking Statements
This press release contains “forward-looking statements” that are subject to substantial risks and uncertainties. Forward-looking statements in this communication may include, among other things, statements about Beamr’s strategic and business plans, technology, relationships, objectives and expectations for its business, the impact of trends on and interest in its business, intellectual property or product and its future results, operations and financial performance and condition. All statements, other than statements of historical fact, contained in this press release are forward-looking statements. Forward-looking statements contained in this press release may be identified by the use of words such as “anticipate,” “believe,” “contemplate,” “could,” “estimate,” “expect,” “intend,” “seek,” “may,” “might,” “plan,” “potential,” “predict,” “project,” “target,” “aim,” “should,” “will” “would,” or the negative of these words or other similar expressions, although not all forward-looking statements contain these words. Forward-looking statements are based on the Company’s current expectations and are subject to inherent uncertainties, risks and assumptions that are difficult to predict. Further, certain forward-looking statements are based on assumptions as to future events that may not prove to be accurate. For a more detailed description of the risks and uncertainties affecting the Company, reference is made to the Company’s reports filed from time to time with the Securities and Exchange Commission (“SEC”), including, but not limited to, the risks detailed in the Company’s annual report filed with the U.S. Securities and Exchange Commission (the “SEC”) on March 4, 2024 and in subsequent filings with the SEC. Forward-looking statements contained in this announcement are made as of the date hereof and the Company undertakes no duty to update such information except as required under applicable law.
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