CEO Update on BlueJeans
Last April, BlueJeans Network announced it had reached a coveted achievement for private Software-as-a-Service (SaaS) companies, surpassing $100M in annual recurring revenue. Over the past year our product and services teams have helped us achieve new records for the company in meaningful metrics including product quality scores, Net Promoter Score, and net retention rates. Today, we are announcing another key milestone: the company will become profitable and operating cash flow positive over the next few months. BlueJeans has made a strategic decision to optimize resources to accelerate our path to profitability with a more efficient go-to-market strategy while continuing our significant investments in R&D and customer care. This strategy provides durability and longevity for BlueJeans and enables us to be a financially independent and focused supplier of the best video meetings solutions for our customers and partners.
BlueJeans has a long heritage of innovation in the cloud video meetings market, with a simple and immersive user experience, best-in-class interoperability, strong customer adoption and outstanding customer satisfaction. Our relentless focus on being a best-of-breed vendor for meetings solutions continues to yield strong innovation and differentiation for the company and for our customers. Our investments have enabled BlueJeans to focus on the most important market trends for meetings. For example, we are seeing strong market momentum for the BlueJeans Gateway product, our cloud video interop service that easily connects conference rooms to Microsoft Teams deployments. This business has more than tripled over the last fiscal year. Recently, we launched BlueJeans Smart Meetings, which delivers the right combination of machine and human intelligence for a better meeting experience before, during and after you meet. The combination of crowd-sourced meeting notes, real-time transcription, and a video highlight reel is focused on meeting efficiency and productivity, innovating beyond the market’s traditional focus on operational quality. At the end of October, we announced a collaborative effort with Samsung and Verizon to unlock the potential of enterprise mobile video conferencing, leveraging the power of emerging 5G networks and purpose-built smart mobile devices with high definition wide-angle cameras. We see strong interest in applications of mobile video communications across enterprise business use cases, such as telemedicine, fleet maintenance, and for remote service employees. These examples highlight just a few of the innovations BlueJeans has introduced to the market over the past year. Our mission is to provide the most reliable, simple-to-use, and trusted meeting solution to the market.
As we look ahead to the coming year, we remain committed to our focus on BlueJeans’ key channel partners to expand our market reach, including Microsoft partners, AV partners, and strategic partners like Verizon and Samsung. BlueJeans is excited by the strong momentum we have seen with our global distribution network and see this channel as a critical strategy for on-going enterprise growth. In addition, we continue to invest in our on-line sales channel capabilities, and have recently expanded the breadth and reach of our ecommerce business to make it easy for all types of users, whether IT or Lines of Business, small business owner or head of a large department, to easily buy and use BlueJeans at the click of a button.
BlueJeans is trusted by many of the most prominent businesses and organizations in the world. The evaluation process is relentless, and good enough isn’t an option. We have built our collaboration and meetings platform to perform at the highest level. The reliability and scale of our service is why customers and partners deploy BlueJeans for both team collaboration and large-scale events. BlueJeans continues to achieve world-class scores from customers, with an NPS over 60, as measured by our rigorous voice of the customer program and comparisons to respected independent benchmark data. The same customers also rate BlueJeans favorably with regard to product reliability, innovative features and overall program success. Additionally, BlueJeans continues to be recognized as a leading video meetings platform vendor, earning awards such as Product of the Year in Unified Communications 2019, Customer Choice 2019 from Gartner Peer Insights, Silver winner of Stevie Award for Customer Service Team of the Year, and as Top-Rated Meetings Vendor 2019 from TrustRadius.
The future is bright for BlueJeans! As a $100 million, profitable SaaS business, BlueJeans has the resources to continue to control its own destiny and focus on being the most reliable and trusted supplier to enterprises that expect the most innovative and durable video meetings capabilities for their teams. We look forward to continuing to be the supplier of choice for enterprises that require a best-of-breed cloud video meetings solution.