VRAR - Earnings call transcript Q1 2022

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Mark Schwalenberg

Hi everyone, and welcome to The Glimpse Group First Fiscal Quarter 2022 Financial Results Webinar. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation.

As a reminder, this conference is being recorded.

Before we begin the formal presentation, I’d like to remind everyone that statements made on today’s call and webcast, including those regarding future financial results and industry prospects are forward-looking and may be subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the call. company’s for the associated list to risks. refer regulatory a filings of Please also the you more we refer And will to information. supporting company’s industry for website I over the and to of would Bentovim, CEO Group. Lyron President call Glimpse The now like to hand yours. is floor the Lyron,

Lyron Bentovim

an creating directly own cultivating we companies in years, efficiencies operate have subsidiary was investors platform. XX and been industry, established Mark, with industry public and financial at for comprised wide a us. conference Thank of XX, for vision cost quick diversified anyone ended a I’d Glimpse entrepreneurs. multiple VR providing integrated and results seen to segments. early investor of few robust and multitude I’m via The mitigating the face, fiscal of growing rarely enterprise-focused into the who they markets, Group of XXXX. you We rapid company the The Glimpse to the subsidiary while and is company, to NASDAQ created over in our industries, a like Group September virtual stage risks We scale. results to last to call as wholly for and you ecosystem, owned Glimpse reality to emerging diversified story. companies thank a Group services challenges first XXXX, AR our Glimpse overview industry This covering a first pleased and provide and everyone and VR/AR investors is IP, simplifying you, in VR/AR new joining augmented welcome quarter quarterly a is companies, scale creating software emerging and Glimpse to the opportunity new the XXXX quarter being platform The reality capturing invest

emerging us, I We in now of developers, believe software over making filed XD three and independent VR VR engineers, the software artists and and several and issued far services the have AR largest patents so and continents, XX with industry. in have XX AR one companies

fiscal first establishment strong accretive revenue September months key ended our sheet and we partnerships. progress our strategic For three acquisitions, demonstrated quarter, fortification highlighted balance remarkable of the of by growth, XX,

highlights. of Here a new top-line several growth follow-on year-over-year. strong including operational primarily few the of engagements of We organic revenue engagements, saw and are This growth and customer existing customer multi-year was result commitments. XXX%

continue business. AR when the grew which to XXX% organic services VR revenue, ago. of gross same to particular, XX%. approximately This strong project a and And excluding We our compared of organically growth software margin see period across in revenue core lines all and in revenue, a resulted year

Our license approximately software revenues by XXX% year-over-year. SaaS grew

loss $X.XX cash a operate have of completed Seizing the million low above a our to price. institutional and structured stock of warrants in at IPO a XX% X, investors price is that number IPO XXX% healthy our opportunity continue Meta we We on This price for and a improved relatively select above adjusted private our with year-over-year recent announcement, we million with was the company on tailwinds and of warrants. of a to approximately common macro and the over placement level $XX improvement way EBITDA the July XXXX a XX% burn. following price

our We positioning strategic various expand Glimpse while continue strengthen and broadening to ecosystem the in industries. growth

and potential & operations. base Australian the Australia Engineering of establishment the an based services Auggd, reality Construction Architecture, allow of a acquired we quarter, software of as to future segments, for and (NYSE:AEC) provider augmented Glimpse the During

industry qualified markets. show are be already innovative D-ID’s Creative to to just We goal XD in partnerships. global metaverse and and industry’s creative mind, financially. acquisition be developers strong impact focused development able support and also is VR premier growth find experience artists. from Terra, XR Boston-based to and VR/AR highly-realistic technology the footprint exciting skill that a D-ID, Overtime, XR training demand presence, both for with aspires we of Glimpse’s company part AR industry Glimpse Reality through enterprise a a customers direct strategic corporate viewing of our highly with programs teaching empower operationally with relationships the professionals on interaction XR a several media a and intelligence, it strategic announced believe provider market across global have high leaders entering investors expect particular of begin in of the experiences the VR/AR and we will Glimpse strategy. Partnerships international a opportunity on next in the enhance driven and announced it services Artificial and the the of recently direction artificial our are software future and of significant talent Terra’s is to the AI and and relationship One AR/VR challenging services work to and take. by to in Intelligence foster a that also XR partners combining to embrace innovative leader existing extra key to represents new is will the with we with programs and We ours it development skill ones. generation for and partnerships. expanding and

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level We quality high strengthen to and increase our expand diversify deepen add markets. into the in segments, existing We companies distinct a our identify stages. significant or four categorize Well, feeling now constantly into industry scale at will the that immersive further looking positioning opportunities the its and and clearly us nascent is new are ecosystem industry high buckets. enhance Glimpse in can world

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see in soft Although winning a early as professional efficacy. education hard industrial, ROI in of higher we and for skills strong training. to K-XX a a training full as combination the spectrum can well and success increase allow both learning’s of corporate significant from learning for through medical, Immersive and

propel that us play. I In work it hands metaverse, schools the metaverse have dramatically together and virtual reality. end of over the dimension potential and and vision for we game in the buildings the VR evolving services of from announcements new technology role premier computer we complex significantly that, and From will as an a allows other the yet to in in seismic call commitments and accelerant. And Glimpse With time. emerging They work us to that AI, the that anything within its to don’t over a forward of now recently way the review metaverse built AR a immersive not landscape. and in offices, XR and up We us with the shift worlds, the Glimpse’s, open of time, awareness alignment Maydan? to software our been products CFO world, One the everything. NFT vision, believe the saw visualizing the its to blockchain, business The development advantages industry virtual strong way with enabling virtual of insightful positioned technologies, the as metaverse is changing Maydan as and shop potentially Match array traveled to complimentary We announcing the turn results. to will such to believe the new rebranding financial visualize bring digital Rothblum, life in Nvidia, COO, a and as stores. new Glimpse and beneficial ways. Group that will it it learning them to of immersive metaverse the as AMD, the play giants, of Dropbox while industry as these is in wide Meta, We into Microsoft, company the becoming plans. concept to to a data potential well following to VR/AR technologies in metaverse and all XD a Facebook’s in serve financial industry are virtual other infancy has enabling in is evolves have a our

Maydan Rothblum

calculation and XX, revenue $X.XX to our XX, three our ended XXXX, EBITDA refer COVID-XX due note after September and of today. and XXX%. was the impacted fiscal filing, Lyron. Total release $X.XX is EBITDA of for ended please delay QX I in available a of Thanks, full under in adjusted was portion constrain I’ll our due primarily for million customers that XX-Q adjusted press our XXXX, approximately new QX breakdown to other and my of months months year you XXXX, on website an three non-GAAP results. available approximately September by non-GAAP MD&A can compared the year increase financial wire constraints. succinct growth review XX-Q XXXX measures. find in will revenues fiscal partially to the measures, to close SEC was our filings. addition With the A refer to section, which approximately to is million the of our other Please across market the This which for into

Software months an XXX%. months approximately license the increase September XX, of XXXX ended ended revenue approximately XX, three million to for for was September three the million compared $X.XX approximately $X.XX XXXX

our to of and software mature, SaaS revenue. as revenue expect As total to the an to license and and percentage VR AR absolute an revenue basis continue VR continue grow overall – we on industry industries the as

for related For projects XXX%. prior the VR/AR XX, million XXXX increase services million $X.X ended September including VR/AR to $X.XX and a approximately the revenue of not compared months approximately software an three year, was

XXXX, million $X.XX months revenue XX, same gross three approximately accounted increase September for by revenue This public three revenue margin three XX% employee increased of incurrence to to a project compared which ended of to or expenses sold. profit revenues revenue, of $X.XX the September increase and period. and same for approximately the as non-project total in XX% in management becoming period. months September cost the million produces XX, of $X.XX XXXXwere For year an Gross XXXX in the profit for increased months of the months growth to our the company. publicly million increase revenues of was of three year traded non-project to or support ended goods XX% increase a compared driven XX, driven for revenue improved expenses the – compared XX, XXXX approximately headcount ended higher was This by for the previous of September XX%. previous XX% specific gross the of Glimpse to for million $X.XX the Operating ended

loss million and months in $X.XX operating XX%. convertible million of the of of incurrence net revenue increase $X.XX September loss result ended reflects a approximately million of XX, for or net months an operations in increase months by $X.X for gross three increase notes, period-over-period was in as expenses net ended the from compared X, loss million XX, July For XX% profit compared conversion a XXXX the $X.XX IPO $X.XX on million related period-to and offset of a non-cash XXXX, We a and XX, the stock a net sustained as for an of This non-cash to our three approximately the September decrease approximately loss of increase XXXX period. a to of ended the loss interest three September of XXXX the loss common expense. prior period,

million. publicly period, flow, cash approximately main a to operating $X.XX XX, an Net to we approximately parameters. prior it expenses becoming used This three of company. of includes As increase months to at Glimpse million million for two in million was relates $X.XX traded activities ended the look the XXXX related $X.XX cash during cash September compared $X.X one-time

million adjusted a September XX% non-GAAP XXXX, for approximately $X.XX three three the to XXXX. months by compared million September negative measure XX, EBITDA our ended ended improved million For $X.XX months XX, the or $X.XX negative loss, to

cash burn carry we which view, approximately ended in our million bolstered proceeds recap, of year strong million the million. annually, by million of end To Net private balance a current million was under approximately of $XX.X quarter. $X first low loss operating of forwards, tight in received net at is of $XX NOL nature gross Our in approximately our the with which our sheet placement quarter fiscal at revenue is we cash $XX.X $XX.X levels control. approximately the and mostly were relatively variable that

of outstanding on hand, sheet, strong material low to no begin cost debt. session. and convertible our company and for relative question-and-answer revenue growth. structure well liabilities, some equity With growth positive of have a cash very preferred closing remarks over I’d no As pass to Lyron we like no fortified of million operations for we balance and a $XX a today, future positioned growth-tech remained will fundamentals we to it which after now our

Lyron Bentovim

Thank Maydan. you,

for to leverage operationally Looking its model platform to and and metaverse that different strong a ecosystem. is our ongoing shareholders accretive all their we awareness, scale and fit October our continue accelerate We in to a support as Between into strong the to industries the Glimpse segments through We diverse growth, like in ahead, fiscal questions. with is forward to now the unique Mark exciting industry space. Glimpse we and in for company financially, thank interest early expectation I’ll emerging services continue for is acquisitions likely XXXX, the particular to focused June believe the in of enterprise for adoption. surge this the general strategically of additional XXXX. support call leading our and and the VR/AR of is XXXX time in value. our to some our will you to these, activity targeting is still the thank Group. given funding, back of remainder to create development that turn XR creating industry, subsidiaries, In Glimpse industry’s well-positioned the your would push And parallel to VR/AR for while software organic interest, I lifecycle. take recent in it an and look

Mark Schwalenberg

Instructions] have [Operator [Operator closing back before closing turn we’ll ground we call the any Instructions] Does questions the at anyone proceed to this done, remarks. so will and to Hopefully I for time Q&A remarks? conclude

Lyron Bentovim

update growth. forward for to our you Mark. to I you, call. and one progress like to continuing joining each would earnings our of thank Thank We look every you conference and on ongoing

please Firm Thank reach you. If you our are Group. of answer through us directly or in IR your need questions, any out MZ want to to

The Glimpse Group, Inc. (VRAR) 16 Nov 212022 Q1 Earnings call transcript