XMReality Interim report, Group overview, April – June 2022
Published: Thu, Aug 11, 2022 08:30 CET
The Annual Recurring Revenues (ARR) increased 3 percent. The Net Sales decreased by 17 percent. The Gross Margin rose from 90 percent to 95 percent.
The Quarter April – June 2022, The Group
- Net sales amounted to SEK 4,616 thousand (5,565)
- Costs totaled SEK -18,431 thousand (-13,909)
- The operating loss before appropriations and taxes was SEK -9,395 thousand (7,749)
- Cash flow was SEK -12,349 thousand (-6,206) and the equity/assets ratio at the end of the period was 60.6 (80.0) percent
Net sales decreased with 17 percent to SEK 4,616 thousand (5,565). The Annual Recurring Revenues (ARR) increased with 3 percent to SEK 18,045 thousand (17,555). The absolute majority of the revenues were recurring software subscriptions. The Gross margin continued to be high at 95 (90) percent for the quarter. The Order backlog, Order intake that at the end of the period remains to be recognized as Net sales, decreased 12 percent to SEK 13,293 thousand (15,136). The increase in cost mainly comes from forward looking additional sales resources in our wholly owned U.S. subsidiary, and significantly increased investments in product development.
The Order intake for the quarter was much lower compared with last year and decreased 64 percent to SEK 2,344 thousand (6,589). The main reason being absence of larger deals during the quarter 2022. The 2021 reference quarter had a large two-year renewal that individually amounted to about SEK 2 million.
From this quarter going forward, we will adjust our assessment basis for capitalization of own product development. Previously we have chosen to capitalize only a smaller share of our product development. As a result of our new product strategy, resulting in much fewer product variants and less adaptation work for the different hardware platforms that we are compatible with, we have confirmed a significantly increased efficiency. The judgement is that a larger share of the product development fulfills the requirements for capitalization. This means that the booked value of the balanced expenses increases.
The half year April – June 2022, The Group
- Net sales amounted to SEK 9,426 thousand (11,322)
- Costs totaled SEK -35,023 thousand (-26,427)
- The operating loss before appropriations and taxes was SEK -20,184 thousand (-14,006)
- Cash flow for the period was SEK -21,389 thousand (44,210)
Notable events during the quarter
- XMReality AB signed new deals with several Swedish energy companies and municipalities for the use of XMReality Remote Guidance. The main use case is technical support directly to the end customer.
- The Thai unit of a large Japanese car manufacturer placed an order for XMReality Remote Guidance through NTT (Nippon Telegraph and Telephone). XMReality has a partnership agreement in place with NTT since October 2020 so that NTT can market and sell XMReality Remote Guidance.
- XMReality launched new product functionality to easily schedule future guide calls in advance and have up to 20 people in a call. Historically XMReality’s product has targeted aftermarket processes with focus on intermittent problem resolution. Since 2021, product development has focused on increasing the number of use cases and hence market potential. This new functionality to schedule large group calls is another step in that direction.
- XMReality received an order from Coor, a leading provider of Facility Management services in the Nordic region, for licenses of XMReality Remote Guidance. The contract is a subscription agreement with automatic renewal. The main area of use is maintenance within Facility Management and to begin with, the service will be used for the Swedish market.
Notable events after the quarter
- XMReality launched several new product capabilities making the product tailored for planned remote activities such as inspections and audits. Customers can now schedule sessions in advance, use pre-defined step-by-step instructions in a live call and automatically generate PDF documentation for the call. This helps customers both perform and document planned activities with consistency and high quality.
In this video Jörgen Remmelg, CEO of XMReality, together with Johanna Edepil, CMO, talks about the reported result for the company and which events that are particularly interesting to highlight for the investors.
Link to the report website: https://www.xmreality.com/en/investors/reports-and-analyzes
This disclosure contains information that XMReality is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 2022-08-11 08:30 CEST.
The company’s Certified Adviser is Redeye AB
For more information, please contact:
Jörgen Remmelg, CEO XMReality
Phone: +46 739 822 409
About XMReality Remote Guidance™
XMReality Remote Guidance is an AR-enabled knowledge sharing tool that lets you communicate with gestures, speech, chat and pointers with someone at a completely different place. It includes:
- A unique hands-overlay technology that lets you guide someone else’s hands—as if you were there.
- A web portal to manage teams and users, and to measure usage
- Integration through client-side API’s (Application Programming Interfaces)
XMReality AB (publ) develops and sells solutions that revolutionize knowledge transfer through so-called Augmented Reality (AR). The company is a market leader in remote guidance where you guide a person on site via AR to solve problems or prevent them from occurring. The product is used globally in more than 60 countries. ABB, Nestlé, Electrolux, Sidel, Heineken and Saab are examples of the more than 125 customers. XMReality is based in Linköping and in the U.S. and is listed on the Nasdaq First North Growth Market (ticker: XMR). For more information, visit: www.xmreality.com
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