The Glimpse (US:VRAR)2021-09-28 23:33Financial Data and Key Metrics Changes - Total revenue grew 76% to $3.42 million for the year ended June 30, 2021, compared to $1.95 million in the previous fiscal year [25] - Gross profit increased to $1.96 million or 57.3% of revenue in fiscal year 2021, compared to a gross profit of $0.81 million or 41.5% of revenue in fiscal year 2020 [27] - Net loss for the year ended June 30, 2021, was $6.09 million, an increase of 22% compared to a net loss of approximately $4.99 million for the year ended June 30, 2020 [30] - Cash-based gross profit margin was approximately 74% for the year ended June 30, 2021, compared to approximately 53% for the year ended June 30, 2020 [28] Business Line Data and Key Metrics Changes - Software license SaaS revenue grew by approximately 100% year-over-year [9] - Non-project revenue accounted for approximately 50.4% of total revenues as compared to 26.1% in the previous fiscal year [27] - VR/AR software and related services revenues, not including VR/AR projects, increased by approximately 239% [26] Market Data and Key Metrics Changes - The company has established a footprint in Australia through the acquisition of Auggd, expanding into the architecture, engineering, and construction segment [11] - The company serves a diverse set of industries, including health care, corporate training, financial services, therapy, media, entertainment, and education [14] Company Strategy and Development Direction - The company aims to solidify its leadership position as the only pure play NASDAQ-listed diversified enterprise-focused VR/AR software and services company [35] - Select accretive acquisitions are a core part of the growth strategy, with plans for additional acquisitions in the coming months [11] - The company is focused on building a robust ecosystem and capturing wide intellectual property to mitigate risks for investors and entrepreneurs [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term value creation opportunities in the developing AR and VR industries [35] - The company is well positioned for future growth with a strong balance sheet of $13 million in cash and no material liabilities [32] - Management highlighted the potential of the Metaverse and the company's role in its development as it evolves [22] Other Important Information - The company improved the composition of its Board by adding new independent directors with significant industry expertise [13] - The company has issued four patents and has nine additional patents filed, aiming to capture significant potential as the industry matures [12] Q&A Session Summary Question: What percent was recurring revenues as opposed to new? - Management indicated that software services and non-project software services and software license revenues are viewed as recurring revenues, now about 50% of total revenues compared to approximately 25% the prior year [37] Question: What is the sales cycle for projects? - The sales cycle varies between 3 to 12 months for initial relationships and signing, with execution taking an additional 3 to 6 months [38] Question: How far along is the VR Campus project? - The VR Campus is finished and delivered, set to be used in the first full semester in October [39] Question: What is the backlog amount? - The backlog is estimated to be between $1.5 million to $2 million [41] Question: Will margins continue to improve? - Management expects continued improvement in margins as the company is primarily a software business, aiming for long-term margins of 70% to 80% [42] Question: How are synergies being developed with the new acquisition? - The new subsidiary, Auggd, is already collaborating with other subsidiaries to enhance features and customer offerings [44] Question: What is the plan for medical and legal VR/AR interactions? - The company is actively developing solutions for the medical space but has not yet found a winning use case for the legal side [50] Question: Are there plans for VR and AR NFTs? - The company is in discussions to partner with players in the NFT space to visualize and manage NFTs using their technology [52] Question: What is the cash acquisition strategy? - The company plans to mix cash and equity in future acquisitions, being careful to ensure all acquisitions are accretive [62]