The health crisis has accelerated the inevitable shift towards digital technology and it’s become clear that companies with the right tools are leading the charge. When businesses were forced to shut their doors during lockdowns, digital tools quickly became essential, creating an exciting opportunity for companies offering digital solutions of all kinds. Zoom Video Communications (NASDAQ:ZM) and Slack Technologies (NYSE:WORK), which is being acquired by Salesforce (NYSE:CRM), quickly became the go-to communication platforms. At the same time, Shopify Inc. (NYSE:SHOP) (TSX:SHOP) is helping businesses sell their merch online amid closures, while BBTV (TSX:BBTV) is continuing to help both businesses and influencers increase viewership and drive revenue from their content.
Digital media tech company BBTV (TSX:BBTV) has built a multi-million dollar business by helping content creators grow their audiences and generate revenue from their content. The company went public on the Toronto Stock Exchange in October and has continued to sign new deals and grow its offerings since.
On January 11, BBTV announced the launch of its new Video Comparison analytics solution, which helps its content partners compare content from their library to see how one piece of content performs against another. The new tool informs content strategy for content creators, and is a great addition to the existing suite of solutions that helps creators grow their viewership and revenue.
BBTV’s technology-enabled solutions helped it reach new record highs in 2020 and growth is likely to continue as the company signs deal after deal. In December alone, BBTV signed new SaaS content management agreements with both the NBA and Canada Media Fund (CMF), and secured several paid direct advertising branded entertainment campaigns across consumer verticals like gaming, entertainment, food, and fashion. In November, the company announced the signing of new international gaming partners who collectively achieve 217 million monthly video views and boast over 23 million subscribers.
Last month, BBTV also launched two successful apps: Dobre Duel and Fernanfloo Party, which was launched in partnership with top international content creator, Fernanfloo. Fernanfloo’s debut app with BBTV hit #1 in 17 countries within 24 hours on iOS and Android, garnering over 14.6 million downloads.
Tech Stocks Offering Business Solutions Continue to Shine
When the COVID-19 pandemic swept the globe, businesses of all sizes had to readjust to the new norm and adopt new tools into their daily operations. With widespread lockdowns and tight restrictions, it quickly became clear that digital tech companies were not only pandemic-proof, but had the ability to grow significantly during tough times.
With businesses forced to close down brick and mortar locations during statewide lockdowns, many turned to e-commerce provider Shopify Inc. (NYSE:SHOP) (TSX:SHOP) to stay afloat. The platform also offered jobless individuals the opportunity to become their own business owners. In May, the company bolstered its offerings with Shopify Balance, which includes a digital bank account, a debit card, and rewards and cashback services, and Shop Pay Installments, enabling the “buy now, pay later” option at checkout. In Q3, Shopify reported a 96% increase in revenue YoY and saw about 37,400 partners refer a merchant to the platform over the previous 12 months.
Unsurprisingly, video communications provider Zoom Video Communications (NASDAQ:ZM) is another company that fared extremely well last year and is expected to continue growing in 2021. In late November, the company reported a 367% revenue increase in Q3 year-over-year, reaching $777.2 million. Zoom also reported a GAAP net income attributable to common stockholders of $198.4 million, or $0.66 per share, for fiscal Q3 2021.
Slack Technologies (NYSE:WORK) is another business communication platform that has completely taken off during the COVID-19 pandemic. The company increased its revenue by 49% to $215.9 million in the second quarter. Then in Q3 2020, Slack brought in $234.5 million in total revenue and reported that over 64,000 paid customers were using Slack Connect, up from over 52,000 at the end of Q2.
On December 1, global CRM leader Salesforce (NYSE:CRM) revealed that it signed a definitive agreement to acquire Slack. The deal, which will see Slack shareholders receive $26.79 in cash and 0.0776 shares of Salesforce common stock for each Slack share, represents a value of approximately $27.7 billion.
In the 12 months ended October 2020, BBTV increased its direct advertising sales revenue by 46% compared to the previous year. The company also achieved 615 million unique monthly viewers globally, making it second only to Google. BBTV reported record Q3 2020 revenues of $120.7 million, a 31% increase year over year.
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