BlueRush (TSX-V: BTV) offers a Software as a Service (“SaaS”) based content engagement platform that enables business-to-consumer (“B2C”) companies to achieve greater engagement, loyalty and conversion metrics with customers. We develop and market IndiVideo™, a disruptive, interactive personalized video platform that is built on a SaaS business model and drives return on investment throughout the entire customer engagement cycle. IndiVideo can also be integrated with DigitalReach™, our SaaS-based content engagement platform that delivers improved sales conversion metrics for financial advisors.
We partner with a diverse group of companies to enhance the global market penetration of our SaaS solutions. These partnerships expand our footprint as a Saas company and extend our marketing leverage and product capabilities. Our customers include a growing list of world-class financial services companies.
Our mission is to improve our B2C customers’ sales and marketing performance by helping to generate stronger ROI and greater customer engagement, satisfaction and loyalty.
Video is the fastest-growing online medium. It made up 69% of all online traffic in 2017 and is expected to make up 80% by 2021, according to Cisco. Personalized video is a greenfield niche that supports superior marketing and sales performance, while generating greater customer satisfaction and loyalty. eMarketer forecasts that the U.S. video advertising market will grow from a US$13 billion industry in 2017 to a US$22 billion industry in 2021.
SaaS is a recurring revenue business model. It provides simpler purchasing decisions for our B2C customers due to lower implementation costs and expenditures that are spread over the life of a contract, compared to a traditional software agreement where fees are paid one-time and up front. As a result, SaaS products are typically viewed by customers as an operating expenditure rather than a capital expenditure. This can drastically improve our sales cycle, while also allowing us to build predictable, stackable revenue that creates good visibility.
Our IndiVideo platform is a highly scalable, personalized and customized solution that strengthens customer relationships for our B2C customers, driving stronger returns and richer experiences across the engagement cycle. IndiVideo’s advantages include immediacy, simplification of complex information, relevancy and creation of memorable content. It also provides our B2C customers with measurable results, which is driving follow-on business. Our DigitalReach platform facilitates improved customer outreach for financial institutions by aligning sales, marketing and compliance in a highly streamlined platform that personalizes communications and drives efficiencies. DigitalReach has delivered improved sales conversion metrics for more than 75,000 financial advisors at major financial institutions. Our technologies have been recognized as best-in-class with the following industry awards: 2018 IAC Award for Outstanding Online Video Campaign, 2017 Communicator Award for Best Online Video and 2016 Silver W3 Award for Best B2C Branded Video.
BlueRush’s customers include leading financial institutions in Canada, the United States and Latin America, many of which have longstanding relationships with us. Our blue chip customer base includes chartered banks, insurance companies and asset management firms.
We have formed distribution partnerships with leading companies across diverse industries including banking, technology, software and insurance to expedite our market penetration. Partnerships are the cornerstone of our SaaS growth strategy as they provide us with global reach, increase our sales and marketing leverage, and extend our product capabilities. Our partners include Broadridge Financial Solutions Inc. (United States), Valeyo (Canada) and Kunder (Chile). BlueRush also has co-sell status with Microsoft Corp. and our products are hosted on the Microsoft Azure cloud platform, which we believe is the world’s most scalable and secure cloud infrastructure.
We are experiencing improved financial performance from our transition to a SaaS (recurring revenue) business model, which has been our focus over the past year. SaaS gross margins were 61% of revenue in Fiscal 2018, compared to 44% in Fiscal 2017, reflecting our successful research and development investments in the IndiVideo and DigitalReach platforms and our move to the Microsoft Azure cloud platform, which optimized our structure.
CEO Steve Taylor has a proven track record of capitalizing on high-growth market opportunities. He has significant experience with SaaS solutions as he previously founded and led Resolver Inc., a SaaS-based Governance, Risk and Compliance company that was successfully sold to Klass Capital in 2015. He is supported by a strong senior management team with more than 40 years of combined experience in corporate sales, software development, digital marketing, systems architecture and financial management.
Round 13 Capital Inc. is a lead investor in BlueRush, currently holding a 38% share ownership position. Round 13 was co-founded by Bruce Croxon and John Eckert. Bruce piloted Lavalife Inc. from infancy in 1988 through to its $176 million sale to MemberWorks Inc. in 2004. He is also a former dragon from CBC Television’s Dragons’ Den. John founded the venture capital firm McLean Watson Capital, one of the most successful technology investors in Canada. Bruce and John have now turned their attention to addressing the market opportunity presented by growth-stage digital companies in Canada.