Israeli company Beamr experienced a significant increase in its share price on Monday, jumping by about 1500% after announcing a collaboration with chip giant Nvidia. The Tel Aviv-based company was founded and managed by Sharon Carmel, and provides solutions in the fields of video and broadcasting.
Beamr’s clients include content distributors, internet broadcasting companies, streaming platforms and Hollywood studios. The company has been issued a year ago when it raised 7.8 million dollars at a value of about 48 million dollars. At the end of trading (Monday) the increases in the stock moderated and it closed with a jump of about 400%. The company’s market value was $129 million at the close on Wall Street.
The collaboration between Beamr and Nvidia aims to facilitate the transition to the AV1 format on a larger scale while maintaining quality. While video use is growing at an exponential rate, most videos today are still based on a 20-year-old format (AVC / H.264) that existed even before smartphones and high-speed Internet. Beamr notes that their technology with Nvidia meets both of these challenges by using Nvidia hardware so that the performance is the same or even better than previous formats, and the costs are similar.
Tamar Shoham, Beamr’s CTO, explained that “until today, the adoption of the upgraded video standard was a complex transition for two reasons – one, the demand for much more computing power and therefore more costs, and two, the demand for a sharp learning curve because it is difficult to understand how much additional compression is possible to implement without sacrificing video quality.”
Beamr recorded revenues of $1.4 million in the first three quarters of 2023 compared to $1.2 million in corresponding period last year, indicating growth potential for future years. The company expects 2023 to end with revenues similar to those recorded last year but with growth set to accelerate in 2024 as they continue their partnership with Nvidia.