The revenue of video transcoding technology supplier Elemental Technologies more than doubled in 2012 versus 2011, according to information supplied to Forbes magazine by the company.
Elemental was featured in a Forbes list of the “100 Most Promising Privately-Held, High-Growth Companies in the United States,” coming in at #23 on the list. Elemental also appeared on the Forbes list last year, coming in at #54. The 30-place jump in the Forbes rankings was the largest by any company.
Forbes says that Elemental posted full year 2012 revenue of $21 million, up 106% versus the previous year. No other financial metrics such as profitability, gross margins, operating margins, etc., were provided. However, in a May 2012 profile by technology website GigaOm, Elemental’s founder and CEO Sam Blackman, said that company was not yet profitable, and had revenue “in the “eight-digits” [in 2011] after having sales in the seven digits during 2009 and 2010.”
Elemental attributed its year-over-year revenue growth to continuing to satisfy the video processing needs of major media companies, double-digit growth in the OTT video market, and strong consumer adoption of tablets and other mobile video devices.
The company also said it more than doubled its customer base in 2012, and now serves 250 media and entertainment brands across nearly 40 countries. Elemental is apparently taking on staff to meet increasing customer demand. According to Forbes, the company currently has 102 employees, up from 70 employees in May 2012.
In May 2012, Elemental closed a $13m fundraising round led by Norwest Venture Partners, which brought the total amount of funding raised by Elemental to just under $30m. In 2010, the company closed a $7.5 funding round, led by General Catalyst, Voyager Capital and Steamboat Ventures, who also participated in the May 2012 fundraising round.
As broadcasters and media companies scramble to deploy multi-screen services, video transcoding has become a hot space, and Elemental’s impressive year-over-year growth is certainly a testament to this phenomenon.
As a result of the growth in this technology area, transcoding has also attracted its fair share of financing and M&A activity. Here’s a quick run-down of some of the recent transcoding deals:
- In January 2013, Amazon unveiled its “Amazon Elastic Transcoder.” Based on the company’s Amazon Web Services (AWS) cloud computing platform, the Elastic Transcoder the service provides “a highly scalable, easy to use and a cost effective way for developers and businesses to transcode video files from their source format into versions that will playback on devices like smartphones, tablets and PCs.”
- In August 2012 Brightcove bought Zencoder, a 2-year old start-up with $2m in revenue for $30m, and subsequently launched a cloud based transcoding service at IBC 2012
- In May 2012, Elemental Technologies closed a $13m fundraising round led by Norwest Venture Partners (NVP), which brought the total amount of funding raised by Elemental to just under $30m.
- In April 2012, audio processing specialist Wholer bought transcoding provider RadiantGrid in a move that the company said will accelerate its move into file-based operations
- Envivio had an initial public offering led by Goldman Sachs
- Envivio closed a $16.5m funding round in January 2012, bringing the total raised to $95.1m
- PE firm Thoma Bravo bought out Telestream in December 2011
- Telestream bought fellow transcoding vendor Anystream in September 2011
- Cisco bought Inlet Technologies for $95m in February 2011
- Elemental Technologies closed a $7.5m fundraising round in 2010, bringing the total raised to more than $14m
- RGB Networks bought transcoding vendor Ripcode in 2010
GigaOm Article: Elemental gets $13M to sell arms in the online video fight
Press Release: Elemental Secures $13M to Ignite Business Expansion
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