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The Glimpse (VRAR) - 2025 Q2 - Earnings Call Transcript
VRARThe Glimpse (VRAR)2025-02-13 18:06
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Financial Data and Key Metrics Changes - The company reported Q2 fiscal year 2025 revenue of approximately 3.17million,reflectinga523.17 million, reflecting a 52% increase compared to Q2 fiscal year 2024 revenue of approximately 2.08 million, and a 30% increase compared to Q1 fiscal year 2025 revenue of approximately 2.44million[13]−PositiveadjustedEBITDAofapproximately2.44 million [13] - Positive adjusted EBITDA of approximately 0.28 million was achieved in Q2 fiscal year 2025, compared to an adjusted EBITDA loss of approximately 1.33millionforQ2fiscalyear2024[15]−Thecompanyexpectsaggregaterevenueforfiscalyear2025toexceed1.33 million for Q2 fiscal year 2024 [15] - The company expects aggregate revenue for fiscal year 2025 to exceed 11 million, a 25% increase from 8.8millioninfiscalyear2024,withbreakevenadjustedEBITDAforthefiscalyear[16][17]BusinessLineDataandKeyMetricsChanges−TheincreaseinrevenuewasprimarilydrivenbygrowthinSpatialCorerevenuesandotherbusinesssegments[14]−ThegrossmarginforQ2fiscalyear2025wasapproximately648.8 million in fiscal year 2024, with breakeven adjusted EBITDA for the fiscal year [16][17] Business Line Data and Key Metrics Changes - The increase in revenue was primarily driven by growth in Spatial Core revenues and other business segments [14] - The gross margin for Q2 fiscal year 2025 was approximately 64%, down from 68% in Q2 fiscal year 2024, attributed to revenue mix fluctuations [14] Market Data and Key Metrics Changes - The company currently has a revenue split of approximately 40% from government contracts and 60% from commercial contracts, with expectations to increase the government revenue share in the future [25][27] Company Strategy and Development Direction - The company is focusing on strategic and operational restructuring, with a transition to core business areas and the incorporation of AI elements across its product offerings [6][21] - The company aims to capture opportunities in the immersive technology space as it approaches mass adoption [6] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, highlighting a strong long-term revenue pipeline and expected contracts, despite anticipating a decline in revenue for Q3 fiscal year 2025 [10] - The company is well-positioned to execute its growth strategy and capitalize on significant opportunities in the immersive technology sector [21] Other Important Information - The company raised 6.8 million in net proceeds from a registered direct equity offering in December 2024, enhancing its cash position to approximately 8.5 million [6][18] - The company regained compliance with NASDAQ listing requirements, resolving a previous compliance issue [18] Q&A Session Summary Question: What is the revenue split between commercial and government? - The current revenue split is approximately 40% government and 60% commercial, with expectations to increase the government share moving forward [25][27] Question: What is the outlook for operating expenses? - Operating expenses are expected to remain stable at approximately 900,000 per month for the remainder of the year [31][32] Question: Are there opportunities for divestitures or acquisitions? - The company is exploring opportunities to monetize and divest less critical business segments while also looking for potential acquisitions that align with its growth strategy [34][36] Question: How does the company integrate AI into its offerings? - The company is integrating AI into its immersive technology solutions, enhancing capabilities for both military and commercial applications [49] Question: What is the impact of government spending on revenue? - There is a potentially positive impact from government spending, particularly as new initiatives focus on technology and AI [62]