On Monday, the Israeli company Beamr experienced a remarkable surge of 1,500% during trading after announcing a collaboration with chip giant Nvidia. The Tel Aviv-based company was launched just last year and raised $7.8 million at an estimated value of $48 million. Despite the initial excitement, the stock prices moderated by the end of trading and closed with an increase of about 400%. At the close on Wall Street, Beamr’s market value stood at $129 million.
Beamr, founded and managed by Sharon Carmel, specializes in providing innovative solutions for video and broadcasting industries. The company offers solutions for encoding, converting and optimizing video that enable high quality, performance and efficiency. Its clients include content distributors, internet broadcasting companies, streaming platforms and Hollywood studios.
The joint research project announced by Beamr with Nvidia aims to facilitate the transition to AV1 format on a larger scale while maintaining quality. According to Beamr’s announcement, most videos today are still based on a 20-year-old format (AVC/H.264) that existed before smartphones and high-speed internet. This study presents how Beamr’s technology with Nvidia can overcome two challenges associated with adopting an upgraded video standard: the need for additional computing power and costs, as well as a steep learning curve due to difficulty in understanding how much additional compression is possible without sacrificing video quality.
Tamar Shoham, Beamr’s CTO explained that “the collaboration between Beamr and Nvidia addresses both challenges by using Nvidia hardware to achieve better performance at lower costs compared to previous formats.” She also added that they are excited about this new opportunity to accelerate growth in 2024.
In terms of financial performance, Beamr recorded revenues of $1.4 million in the first three quarters of 2023 compared to $1.2 million in the corresponding period in 2022. They expect 2023 to end with similar revenues but anticipate growth to accelerate in 2024 as they continue their collaboration with Nvidia.