Beamr Issues Annual CEO Letter to Shareholders

Highlighting Beamr Cloud Launch, 2023 Financial Results and Achievements and Q2 2024 Upcoming Milestones - Seite 2

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 or 2% 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 $0.096 million the year ended December 31, 2023 compared to $0.098 million for the year ended December 31, 2022, with no material change during those periods.
   
• Research and development expenses decreased by $0.2 million, or 12% 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, or 60% 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, or 82% 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, or 230% 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.