The Glimpse (US:VRAR)2024-11-15 00:54Financial Data and Key Metrics Changes - Q1 fiscal year 2025 revenue was approximately $2.44 million, reflecting a 44% increase compared to Q4 fiscal year 2024 revenue of approximately $1.7 million, but a 21% decrease compared to Q1 fiscal year 2024 revenue of approximately $3.1 million [16] - Gross margin for Q1 fiscal year 2025 was approximately 79%, compared to 62% for Q1 fiscal year 2024, driven by increased Spatial Core revenues and higher software license revenues [18] - Adjusted EBITDA loss for Q1 fiscal year 2025 was approximately $0.46 million, an improvement from an adjusted EBITDA loss of approximately $1.29 million for Q1 fiscal year 2024 [19] - The company expects revenue in the next three quarters to exceed $3 million on average per quarter, with aggregate revenue for fiscal year 2025 projected to be in the $11 million to $12 million range, representing a 25% to 35% increase compared to fiscal year 2024 [17] Business Line Data and Key Metrics Changes - The company delivered the first phase of a large DoD contract and made significant progress towards securing multimillion-dollar contracts in spatial computing and AI-driven immersive software solutions, with short-term aggregate value expected between $5 million to $10 million [5] - Other immersive businesses continued positive momentum, including contracts with a global water and hygiene infrastructure company and a global energy company, both in the mid-six figure range [6] - QReal, a subsidiary, saw a significant increase in revenue driven by demand for AR lenses and 3D models [6] Market Data and Key Metrics Changes - The company has faced challenging headwinds in the immersive industry over the past two years but is now experiencing concrete positive growth indicators [7] - The divestiture of QReal is expected to create approximately $4 million of net cash value over the next two years, simplifying operations and eliminating Turkey country risk [12][13] Company Strategy and Development Direction - The company is exploring aggressive strategic options to unlock value inherent in its business and assets, while focusing on profitable growth [10][23] - The divestiture of QReal is part of a strategic realignment to streamline operations and focus on core business areas [11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about revenue growth and cash flow positivity in the upcoming quarters, despite the current disconnect between intrinsic value and market valuation [8][9] - The company expects to maintain a clean capital structure with no debt and does not intend to raise capital in the foreseeable future [21][22] Other Important Information - The company’s cash and equivalent position as of September 30, 2024, was approximately $1.4 million, with an additional $0.9 million in accounts receivable [21] - The company anticipates that the transformation and positive developments achieved recently will not yet be reflected in its stock price [9] Q&A Session Summary Question: Discussion on operating expense level - Management confirmed that the current operating expense is under $1 million per month, which includes cost savings related to QReal [26][27] Question: Customer opportunities and industry diversity - Management noted that many customers are approaching the company with needs, indicating a strong network of relationships and potential for future growth [28][29] Question: Software license revenue segment - Management indicated that the recent doubling of software license revenue is expected to be a more durable figure moving forward, with potential for growth as contracts expand [32][34] Question: Government contracts and budgetary processes - Management clarified that government contracts are tied to the upcoming budgetary process, with expectations for approvals early in 2025 [36]