SmallCapPower Article25 Sep 15
Social media has exploded in recent years and more and more people are turning to video to get their message out. Advertisers have become increasing aware, then, that to stay relevant they have be online … and on screen. All of which has created a big opportunity for a company willing to produce these videos, for every business’ budget and for any quantity needed. VidWrx Inc. (TSXV: VID), formerly SoMedia Networks, has had some early success doing just that. And, it recently changed its name to reflect the direction in which it is headed.
“Our name change is all about the evolution of the company. SoMedia came out of the origins of the company when we were doing social media aggregation and as we progressed to just doing videos the old name didn’t seem to convey what we are doing now,” VidWrx CEO George Fleming told SmallCapPower recently.
Where VidWrx really stands out is that it made a complicated process (video production) simple and it is able to provide it at the lowest possible turnaround time and price point, which the company estimates at 50% or greater savings as compared with the traditional video production model. It does this by employing a network of more than 3500 videographers throughout North America, who are crowdsourced and ranked based on experience and equipment quality.
“We’re trying to solve a big problem, and that is the inability of businesses to get video produced in multiple locations and in volume,” Mr. Fleming added.
VidWrx specializes in scale, volume, and reach, and currently has no direct competition. The company has invested more than $25 million in its platforms and technologies over the last several years. The result of which has been more than 3,000 videos produced for clients through North America, establishing itself as a leader in on-demand video production.
VidWrx caters to two main markets.The company was built by serving agencies and Internet marketers in that it now has a network of more than 4,000 re-sellers throughout North America. The second group is large corporations, particular multi-location companies that deploy large volumes of video.
The company allows marketers to use its platform for the production of content and then manages the distribution of it seamlessly through their campaigns. To that end, VidWrx has been working with Google so that the Internet search giant is able to provide free video ad production to its partners for YouTube – and Google is paying VidWrx to do that.
“VidWrx is now seeing significant traction in sales and its sales pipeline. And because we serve two different markets, enterprise and agencies, the work we’ve been doing to develop our sales pipeline and processes is really starting to pay off,” said Mr. Fleming.
VidWrx has achieved this, in part, by signing high-profile clients such as MAACO and Yellow Pages. And there’s plenty of room for growth, as the company has identified 85,000 businesses that provide Internet marketing services across North America, a fragmented market where there are no large players and only about 25% offer any video production services.
Much of VidWrx success so far can be seen in the company’s latest financials (Q2, 2015), which showed record revenue for the quarter of $408,938, up 59% from the same period last year. VidWrx has also seen its sales backlog continue to grow to $1.49 million currently, up 21% over the previous quarter and 145% over the same quarter in the previous year.