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Beamr Issues Q1-2024 CEO Letter to Shareholders: Cloud service and AI workflows

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Beamr (BMR) reported a transformative Q1 2024 with the launch of Beamr Cloud SaaS solution, raising $13.8 million, and partnerships with industry leaders like NVIDIA. The company plans to expand its video cloud services, integrate AI workflows, and enhance offerings for new emerging markets. Financially, Beamr saw an 18% revenue increase compared to Q1 2023, with $19M in cash and cash equivalents as of March 31, 2024.
Positive
  • Beamr launched the Beamr Cloud SaaS solution in Q1 2024, offering high-quality video processing capabilities at competitive prices.
  • The company raised $13.8 million in February 2024 through an underwritten offering to expand its video cloud services and support research and development efforts.
  • Beamr collaborated with industry leaders like NVIDIA to highlight the benefits of its technology and AI workflows, aiming to integrate AI processes into Beamr Cloud.
  • The company plans to focus on enabling vision AI processes in Beamr Cloud, enhancing offerings for video customers and new emerging markets of AI.
  • Beamr reported an 18% increase in revenues in Q1 2024 compared to Q1 2023, with approximately $19M in cash and cash equivalents as of March 31, 2024.
Negative
  • None.

Beamr's launch of its Cloud SaaS solution represents a strategic pivot towards cloud-based services, a growing segment within the tech industry. The adoption of HEVC over AVC is significant; HEVC offers improved video compression, which is vital for streaming services dealing with 4K content and beyond. By aligning with industry standards and focusing on emerging markets like User-Generated Content and IoT, Beamr is positioning itself in high-growth areas. However, the modest revenue increase of 18% year-over-year may raise questions about the scalability and market adoption of their solutions. Investors should monitor whether the capital raised will effectively fuel R&D and sales to capture a larger market share.

Beamr's capital raise of $13.8 million is a noteworthy infusion that should bolster their financial flexibility. The planned utilization of funds across R&D, sales, marketing and cloud operations is a balanced approach. However, with a revenue of just $0.39M in Q1 2024, the burn rate and path to profitability become critical factors. The $19M in cash reserves offers a buffer, but investors should scrutinize future earnings reports for signs of revenue growth acceleration, especially from the new Beamr Cloud services, to justify the current expenditure levels and validate the investment thesis.

The emphasis on integrating AI workflows into Beamr Cloud, particularly in vision AI processes, is a forward-thinking move. Collaborating with NVIDIA, a leader in GPU technology, could enhance Beamr's video optimization capabilities and position it well within the AI-driven video processing market. The case study demonstrating efficient machine learning training with smaller video files could appeal to companies looking to reduce costs and improve efficiency in AI training models. Yet, the true test will be Beamr's ability to translate these technological advancements into marketable products that resonate with customers in a competitive landscape.

Herzliya Israel, April 12, 2024 (GLOBE NEWSWIRE) -- Beamr (Nasdaq: BMR), a leading supplier of video optimization technology and solutions, today issued a Letter to Shareholders from Sharon Carmel, Chief Executive Officer.

Dear Shareholders:

I am happy to update you on our Q1 2024 activities and progress. Q1 2024 was a transformative quarter for our company as we built upon the progress and achievements that we reached in 2023, which resulted in several significant milestones for our company.

Cloud service

On February 20 2024, we launched the Beamr Cloud SaaS solution, which enables everyone to perform high-quality, high-scale video processing at attractive pricing. Our new video cloud service offers more capabilities than we initially expected. They include video standards modernization from AVC to HEVC, and adoption acceleration of new standards.

Capital raising

Also in February 2024, we raised gross proceeds of $13.8 million in an underwritten offering, prior to deducting underwriting discounts and other offering expenses. We intend to use the raised capital to substantially expand the reach of our video cloud services by investing in research and development efforts, sales and marketing activities, cloud operating costs, as well as general and administrative corporate purposes, including working capital and capital expenditures. We plan to expand Beamr Cloud across the emerging markets in the video world: User-Generated Content, Generative AI, Internet-of-Things (IoT) and Streaming (OTT).

AI workflows

Throughout Q1 2024, we have teamed up with other industry leaders, such as NVIDIA, to highlight the benefits and features of using our technology and other artificial intelligence (AI) workflows.

In March 2024, we presented accelerated video AI workflows and our plans to integrate AI workflows into Beamr Cloud. We also released the results of a case study that highlights how our technology enables accelerated machine learning training by using significantly smaller video files and without any negative impact on the video AI process.

During Q2 2024, we plan to focus on enabling vision AI processes in Beamr Cloud. Enabling AI workflows, such as object detection, is in tandem with video optimization, as GPU is a natural acceleration platform to both. These new capabilities will allow Beamr to enhance our offerings to video customers and offer services to the new emerging markets of AI. Furthermore, we plan to continue introducing improvements to Beamr Cloud making it easier to use and allow customers higher configurability and flexibly using the service.

Financial highlights*

In Q1 2024, we generated approximately $0.39M in revenues compared with $0.33M in Q1 2023, representing a 18% increase, and as of March 31, 2024, we had approximately $19M of cash and cash equivalents including accrued interest. The revenues are driven from existing customers, and we expect contribution of the Beamr Cloud revenues to start realizing later this year.

Respectfully,

Sharon Carmel

Chief Executive Officer, Beamr Imaging Ltd.

* This unaudited preliminary financial information regarding our revenues for the three months and quarter ended March 31, 2024, is based upon our estimates and subject to completion of our quarter-end financial results. Moreover, this financial information has been prepared solely on the basis of currently available information by, and is the responsibility of, management. Our independent registered public accounting firm has not audited, reviewed or performed any procedures with respect to such preliminary estimates or the accounting treatment thereof and does not express an opinion or any other form of assurance with respect thereto. This preliminary financial information is not a comprehensive statement of our financial results for this period.

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 50% reduction in bitrate with guaranteed quality. www.beamr.com

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.

Investor Contact:

investorrelations@beamr.com


FAQ

What new solution did Beamr launch in Q1 2024?

Beamr launched the Beamr Cloud SaaS solution in Q1 2024, enabling high-quality, high-scale video processing at attractive pricing.

How much capital did Beamr raise in February 2024?

Beamr raised gross proceeds of $13.8 million in an underwritten offering in February 2024.

Which industry leaders did Beamr collaborate with in Q1 2024?

Beamr teamed up with industry leaders like NVIDIA to highlight the benefits of its technology and AI workflows.

What are Beamr's plans for integrating AI workflows into Beamr Cloud?

Beamr plans to focus on enabling vision AI processes in Beamr Cloud, enhancing offerings for video customers and new emerging markets of AI.

How did Beamr's revenues perform in Q1 2024 compared to Q1 2023?

Beamr saw an 18% increase in revenues in Q1 2024 compared to Q1 2023, driven by existing customers.

Beamr Imaging Ltd.

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