In a major leap forward, Israeli video encoding technology company Beamr saw its stock price soar by approximately 1500% during trading on Monday following the announcement of a collaboration with chip giant Nvidia. The Tel Aviv-based company was valued at about $48 million when it went public last year and raised $7.8 million in funding.
Beamr, founded and managed by Sharon Carmel, specializes in providing solutions for video encoding, conversion, and optimization, which enable high quality, performance, and efficiency in the field of video broadcasting. The company’s client base includes content distributors, internet broadcasting companies, streaming platforms, and Hollywood studios.
The joint research project with Nvidia aims to facilitate the transition to the AV1 format on a larger scale while maintaining quality. According to Tamar Shoham, Beamr’s CTO, the adoption of the upgraded video standard has been a complex transition due to two factors: firstly, the demand for much more computing power and therefore higher costs; secondly, the need for a sharp learning curve because it is difficult to determine how much additional compression can be implemented without sacrificing video quality. However, Beamr’s technology with Nvidia meets both challenges by utilizing Nvidia hardware to improve performance while keeping costs similar.
In Q1 2023 alone, Beamr recorded revenues of $1.4 million compared to $1.2 million in Q1 2022. Despite this growth trajectory slowing down towards the end of trading on Monday with an increase of about 400%, Beamr’s market value closed at $129 million on Wall Street. Looking ahead to 2024