The Glimpse (US:VRAR)2023-02-15 00:04Financial Data and Key Metrics Changes - For Q2 FY 2023, the company generated revenue of approximately $3 million, representing a 75% growth compared to Q1 FY 2022 revenues of approximately $1.7 million [5] - For the first half of FY 2023, the company achieved record revenue of approximately $6.9 million, reflecting a 155% growth compared to $2.7 million for the same period last year [5][25] - Gross profit for Q2 FY 2023 was approximately 70%, down from approximately 88% in Q2 FY 2022, driven by the addition of lower-margin subsidiaries [26] - Net income for Q2 FY 2023 was positive $1.31 million, compared to a net loss of $1.57 million in the same period last year, marking a positive change of $2.88 million [27] - Adjusted EBITDA loss for Q2 FY 2023 was $2.58 million, compared to a loss of $0.81 million in Q2 FY 2022 [30] Business Line Data and Key Metrics Changes - The integration of recent acquisitions, Brightline Interactive and Sector 5 Digital, has led to strong momentum with significant customers in government and defense sectors [6] - The company is focused on cost efficiencies, having reduced operational cash expenses by approximately $2.5 million annually, representing about 15% of the annual operating cost base [8] Market Data and Key Metrics Changes - The company has built an impressive roster of global customers across various industries, including a six-figure contract with Airbus and a paid engagement with Walmart for a virtual experience [15][16] - The company is actively pursuing relationships with multiple major Department of Defense agencies for potential contracts [19] Company Strategy and Development Direction - The company aims to achieve cash flow neutrality in calendar year 2023 through a combination of revenue growth and additional cost cuts as needed [9][32] - The strategic focus includes embedding AI capabilities in XR software products and integrating blockchain for e-commerce applications [14] Management's Comments on Operating Environment and Future Outlook - The management acknowledges the challenging macro and business environment but highlights positive developments and key goals achieved during the quarter [34] - The immersive technology industry is still in its early stages, and the company is well-positioned to capitalize on future opportunities [36] Other Important Information - The company ended the quarter with approximately $9.4 million in cash and equivalents, with no debt or convertible debt obligations [31][32] - A long-term incentive plan for executive founders was authorized, based on achieving significant annual revenues and stock price growth targets [22] Q&A Session Summary Question: Visibility into DoD contracts and impact on cash flow neutrality - Management is conservative in assumptions regarding DoD contracts and does not factor them into achieving cash neutrality in 2023 [38] Question: Potential for additional sales or cost reductions - Management indicated flexibility on both cost management and investment in R&D and sales and marketing to balance achieving cash flow neutrality [39] Question: Thoughts on third-party hardware producers - Management views hardware companies as partners, as they enable customers to utilize the company's software solutions [41]