Moovly Continues to Innovate as it Signs Enterprise Client
eResearch Corp. ( ) published an 18-page update Equity Research Report on Moovly Media Inc. (TSXV:MVY | OTC:MVVYF | FSE: 0PV2 ) pertaining to Moovly's release of its Fiscal Q3/2021 Financial Results.
Moovly is a cloud-based media platform for professional-level video production for businesses, educators, and home use. With over 3.7 million users worldwide, the company focuses on providing leading-edge software that allows users to easily create videos without being an expert in video creation. In addition, Moovly's flexible platform architecture and open API enable rapid and cost-effective feature development, third-party integrations, and white-label platform integration.
Revenue for Fiscal Q3/2021, was $0.30 million, a decrease of 20%, compared to $0.37 million in the same quarter a year ago and much lower than our estimate of $0.70 million. Without a detailed breakdown of the revenue components, we are assuming the revenue drop-off was caused by the e-commerce customers not renewing after registering to use the product during the height of the COVID-19 pandemic.
Our model also assumes that Moovly would have closed at least one enterprise partnership during the quarter that would have increased sales, which did not occur. However, recently Moovly was selected as a partner for Lee Enterprises. Lee Enterprises (NASDAQ:LEE) is a provider of local news and information, and a major platform for advertising, with daily newspapers, digital products and, nearly 350 weekly and specialty publications serving 77 markets in 26 states.
As with most Software-as-a- Service (SaaS) business models, Moovly's business model charges customers upfront for services that will be delivered over a period of time or customers pay monthly but can cancel at any time. Payments received in advance for annual licenses are recorded as Deferred Revenue and recognized on a monthly basis. Deferred Revenue in FQ3/2021 was $0.60 million compared to $0.50 in the previous quarter, which shows that Deferred Revenue sales are trending in the right direction but management needs to focus on converting the sales pipeline.
As Moovly ramped up sales and marketing efforts, operating expenses nearly doubled year-over-year to $1.2 million. The company added to its business development team and increased its corporate news flow and investor relations during the quarter in an effort to increase sales and product awareness. In December 2021, Moovly uplisted to the OTCQB Venture Market has been approved and commenced trading under the symbol 'MVVYF'.
Chris Thompson, Director of Equity Research of eResearch wrote,“Strategic partnerships are key to driving revenue higher for Moovly. Enterprise client revenue represents the largest revenue opportunity. We are waiting for other announcements that would show the sales potential as we estimate one Enterprise customer could increase revenue by $1.1 million annually.”
Moovly's Balance Sheet remains strong with over $2 million in cash as it raised $5.3 million in 2021 as the company executes on its growth strategy and product development.
In the online video creation industry, Moovly competes with Adobe Inc. (NASDAQ:ADBE) and IAC/InterActiveCorp (NASDAQ:IAC).
For more information about eResearch's 18-page update Equity Research Report on Moovly, please visit eResearch's website ( ).
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