I’m not much of a YouTube person, or TikTok, or social media in general, so perhaps I’m not the most qualified individual to comment on making videos. However, if I were inclined to post my opinions on the internet or try and give Joe Rogan a run for his money, there is a tool I would definitely be utilizing to make myself look as professional as possible. I would be using the Moovly Studio Video Editor brought to us by Moovly Media Inc. (TSXV: MVY). But before I continue, this is not an advertisement for Moovly’s products, it’s simply my introduction into the company I’m going to discuss today. Like I said, I’m not a curator of video content so you are stuck with my verbal commentary, although as I understand it, Moovly has a product that can turn this note into a form of video or powerpoint presentation.
Essentially, Moovly offers its users the most complete online video creation solution on the market. Combining an intuitive and easy-to-use video editor with millions of copyright free assets available in many different styles, and more advanced features such as text-to-speech, green screen recording, video automation solutions and white-labeling options. It could actually make a grumpy old guy like me look reasonably competent, at least until I started talking. Moovly is the leading provider of creative cloud-based tools to create compelling marketing, communications and training videos and video presentations. Clients include users from over 300 of the Fortune 500, small businesses, freelancers and Ivy League universities making intuitive, DIY, cost effective video-based content.
The reason for going on and on and on about the tools available at Moovly Media is to provide context for a deal that the Company signed last Wednesday that seems to have flown under the radar. Moovly announced that it has been selected, after a lengthy competitive process, as an exclusive partner to Lee Enterprises’ Simply Activ8 platform. The reason I say it appears to have flown under the radar is because the stock traded flat on both that Wednesday and Thursday on very low volume following the press release. It’s possible the market didn’t grasp the magnitude of this announcement so let me try and shed a little more light on why I think people should be paying attention to this deal. Lee Enterprises (NASDAQ: LEE) is a major subscription and advertising platform and a leading provider of local news and information. With Lee’s Enterprises’ daily newspapers, rapidly growing digital products and over 350 weekly and specialty publications serving 77 markets in 26 states. Year to date, Lee’s newspapers have an average daily circulation of 1.2 million, and legacy websites, including acquisitions, reach more than 56 million digital unique visitors.
The Simply Activ8 platform developed by Lee Enterprises has embedded the Moovly video automation platform to offer its clients a powerful business marketing video-making tool, fully integrated and branded. The solution enables businesses to create advertisements and other marketing videos in a simple, cost-effective way, and in doing so brings additional revenue and client stickiness to the platform. James Green, Vice President/Digital at Lee Enterprises stated, “Video is a powerful tool in advertising. Our partnership with Moovly makes that tool affordable and accessible for small to medium businesses.” For Moovly it’s an excellent example of allowing other companies to capitalize on the world-class platform they have built by integrating it into their own product offering. I view this as potentially a very high margin deal for Moovly as they’re simply distributing an existing product to a much larger user base and will be collecting fees from it.
Moovly had a market cap of just under $18 million as of yesterday’s close. So you can imagine how a deal like this can impact the Company once the revenue from this transaction starts flowing through to Moovly. I expect that Q3 results will be out shortly, which should be a pretty interesting read given the recent corporate update detailing unprecedented growth. Perhaps as transactions like the Lee Enterprises deal start flowing through into the revenue column Moovly Media will no longer be flying under the radar.