The Glimpse (US:VRAR)2022-02-15 03:22Financial Data and Key Metrics Changes - Total revenue for the six months ended December 31, 2021, was approximately $2.71 million, a 78% increase compared to approximately $1.52 million for the same period in 2020 [25] - Total revenue for the three months ended December 31, 2021, was approximately $1.69 million, a 34% increase compared to approximately $1.26 million for the same period in 2020 [26] - Gross profit was approximately 88% for the three months ended December 31, 2021, compared to approximately 56% for the same period in 2020 [32] Business Line Data and Key Metrics Changes - Core VR software and services revenue for the six months ended December 31, 2021, was approximately $1.7 million, a 166% increase compared to approximately $0.64 million for the same period in 2020 [29] - Software license revenue for the six months ended December 31, 2021, was approximately $0.29 million, a 107% increase compared to approximately $0.14 million for the same period in 2020 [28] - Non-project revenue accounted for approximately 63% of total revenues for the six months ended December 31, 2021, compared to approximately 42% for the same period in 2020 [29] Market Data and Key Metrics Changes - The acquisition of Sector 5 Digital (S5D) is expected to significantly improve the company's market position and operational scale, opening new markets such as defense and government contractors [16][19] - The company signed its largest contract in history, a $1 million master service agreement with a leading global social media and metaverse company for AR Software and Services [9] Company Strategy and Development Direction - The company aims to strengthen its position as a leading enterprise-focused software and services provider in the emerging XR space, leveraging acquisitions and organic growth [42] - The integration of S5D is expected to create synergies and enhance the company's ability to market its services across different customer bases [50] Management's Comments on Operating Environment and Future Outlook - Management believes the industry is at a tipping point regarding the Metaverse, with increasing awareness among large corporations about its potential [54] - The company expects to continue its strong growth trajectory into the remainder of the financial year 2022, driven by ongoing customer engagements and strategic acquisitions [42] Other Important Information - The company completed a $15 million private placement, enhancing its balance sheet and positioning for future growth [14] - The company has a strong cash balance of approximately $24.8 million at the end of the quarter, with no material cash liabilities [39] Q&A Session Summary Question: What does the M&A pipeline look like from here? - Management indicated significant interest from companies wanting to join the ecosystem and is actively exploring potential acquisitions [46][47] Question: Any customer synergies since closing S5D? - Management noted strong connections between S5D and other subsidiaries, with multiple opportunities being explored [48][50] Question: Benefits to the pipeline from S5D? - Management highlighted opportunities in the DOD sector as a significant focus area for future growth [55] Question: How does S5D's relationship with leading Metaverse players impact market development? - Management believes that awareness of the Metaverse is growing, and they see opportunities to integrate various technologies to create a cohesive Metaverse experience [54] Question: How does the company balance organic and inorganic growth? - Management stated that while they are experiencing hyper growth internally, they will continue to pursue both organic and inorganic growth strategies [62] Question: How should operating expenses trend over time? - Management aims to reach breakeven from internal operations while balancing growth potential and investment opportunities [65][66]