BlueRush Inc. (TSX-V:BTV) announced that its software as a service (SaaS) revenue jumped by more than a half for the fiscal year ended July 31, 2021, as the company continues to successfully transition towards a recurring revenue model.
The company said the revenue growth is primarily due to contracts secured with new customers, as well as the upselling of additional videos to existing customers.
Subscription and support revenue increased by 55% to $2,018,934, compared to $1,306,427 in 2020. It secured new contracted annual recurring revenue (CARR) of $812,465, reaching an ending CARR of $2,675,556 as of July 31, 2021. Gross churn remained low at 7% with logo retention of 82.8% for the year, the company added.
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"2021 was a breakthrough year on a number of fronts,” Steve Taylor, CEO of BlueRush said in a statement. “We continued to see healthy growth in revenue from our SaaS business increasing by 55%, overall gross profit growing by 83%, and our gross retention rate remaining above 90%,” he added.
Additionally, BlueRush said gross margins in the SaaS business increased to 83%, compared to 70% in 2020, a result primarily driven by the technological advantage and greater deployment efficiencies of the IndiVideo platform.
The momentum has continued into fiscal 2022, pushing CARR past $3 million. Since the end of July, the company said it has seen increased sales traction in both new and expansion subscription revenue.
New and expansion CARR booked since fiscal 2021 of $619,500 is comprised of:
- Addition of two of the largest banks in North America
- Addition of one top-five Insurance provider
- Addition of one of the largest energy companies in North America
- Upselling of additional videos to several existing key customers
"Probably the most compelling part of the business has been the growth in our key accounts,” added Taylor.
“While we continue to secure new logo customers, we believe the growth in our existing customers is the best indicator of the value our IndiVideo technology delivers for our customers. There is no more engaging medium than video and when you add personalization, the engagement and conversion metrics become unbeatable. Our customers' success becomes our success.”
The company noted that it completed a $5 million non-brokered private placement financing through the issuance of common share units and share purchase warrants. As part of the private placement, $2.7 million of convertible debentures were converted into common shares.
BlueRush develops and markets IndiVideo, a disruptive, award-winning interactive personalized video platform that drives return on investment throughout the customer lifecycle, from increased conversions to more engaging statements and customer care. IndiVideo enables BlueRush clients to capture knowledge and data from their customers' video interaction, creating new and compelling data-driven customer insights.
Contact the author at stephen.gunnion@proactiveinvestors.com