XMReality : Year-end Report 2020

XMReality : Year-end Report 2020

02/11/2021 | 02:37am EST

Year-end report

XMReality AB (publ), Year-end report for 2020

A record quarter and a record year! Net Sales grew under the quarter with 119 percent and the Order Intake with 86 percent. The Net Sales growth on an annual basis was 74 percent, the corresponding number for the Annual Recurring Revenues (ARR) was 117 percent.

The quarter October – December 2020

  • Net sales amounted to SEK 7,072 thousand (3,222).
  • Cost totaled SEK -14,482 thousand (-12,374).
  • The operating loss before appropriations was SEK -6,736 thousand (-7,676).
  • Net cash used in the period was SEK -4,703 thousand (-8,414) and the equity/assets ratio at the end of the period was 59.6 (61.8) percent.

As per the previous year, the final quarter did see a strong Order Intake with an 86 percent growth to SEK 10 919 thousand (5 868). The Net Sales grew as much as 119 percent.

Full year 2020

  • Net sales amounted to SEK 20,701 thousand (11,921).
  • Costs totaled SEK -48,059 thousand (-45,001).
  • The operating loss before appropriations was SEK -24,925 thousand (-27,364).
  • Net cash used amounted to SEK 9,267 thousand (-28,451).

On an annual basis the Order Intake grew with 76 percent to SEK 25 992 thousand (14 785). The Annual Recurring Revenues (ARR) rose 117 percent to SEK 17 553 thousand (8 086), the growth in Net Sales was 74 percent. The corresponding cost growth was only 7 percent which shows a very nice scalability. The order backlog, i.e. Order Intake which at the end of the period was not yet recognized as Net Sales, grew 85 percent to SEK 12 725 thousand (6 897). The majority of the order backlog is already invoiced to customers as the subscriptions normally are invoiced one year in advance.

Notable events during the quarter, October – December 2020

  • XMReality takes first step into APAC through reseller partnership with NTT Solutions, Nippon Telegraph and Telephone Solutions
  • XMReality has signed a three-year contract with Saab AB, a Swedish defense and security company who serves the global market with services and solutions within military defense and civil security, for Remote Guidance. The initial order value is approximately 1 600 TSEK
  • XMReality has signed a two-year Licensing and Service Agreement with health care company Baxter Medical AB. To start with the software will be deployed through the Nordic sales team for Advanced Surgery who is leading the initial pilot.
  • XMReality has received an order from IMI division Hydronic Engineering for XMReality Remote Guidance and supporting hardware
  • XMReality and Zebra Technologies, headquartered in Illinois, USA, have signed an agreement to offer XMReality Remote Guidance together with Zebra wearable solutions
  • Cytiva, formerly part of GE Healthcare Life Sciences, increases its use of XMReality by ordering additional licenses to cover all of its geographical footprint.
  • XMReality has signed a partnership agreement with Guohui Anchuang, a digital solution supplier for industrial platforms and RealWear (a major supplier of Smart Glasses).
  • Esko, a global company active in the packaging sector and headquartered in Gent, Belgium, has ordered XMReality Remote Guidance for a period of at least two years.

Notable events after the end of the period

  • XMReality in early January released several new features for XMReality Remote Guidance. The product development is customer driven and the new features include, amongst other, the possibility to invite non XMReality users to a multi-party call
  • Panasonic Homes, a subsidiary to Panasonic Corp., are active within the housing business with an expertise in home construction. They recently undertook their first project outside of Asia with a delivery of a prefabricated prototype home to New Zealand. Due to travel restrictions, XMReality Remote Guidance was used to lead the first stage of the build remotely from Japan.

Message from the CEO

XMReality´s CEO Jörgen Remmelg

2020 has been a very strong year for XMReality. Also, a year of significant change and a testament for how powerful a good vision- and strategy work is for the positive transition of a company. Indeed, we have had the market with us and an accelerated need for Remote Guidance as a consequence of the travel restrictions we have lived with during the majority of 2020. During the year we have more or less doubled our Order Intake, Net Sales and ARR at the same time as cost grew only 7 percent. This in itself is a definition of scalability which makes me proud of the team!

We act on a very healthy market where the growth is sufficient for the current players. This in turn means that we do not to the same degree have to steel market shares from the competition, which typically is more costly. Enterprise augmented reality software, i.e. gaming and hardware excluded, is expected to have a CAGR of at least 50 percent mid-term (see figure 1). The market growth during 2021 is projected to 66 percent. The majority of this growth is expected in areas where we are active and successful such as manufacturing industry, health care, facility management and automotive. We have very good growth ideas within these areas.

The Order Intake is growing at a good pace (see figure 2) and our customers are satisfied with the product, its functionality, stability and availability of the service. A clear trend during the year has been more competitive and structured procurements within our market segment. This is a sign of maturity and I am glad to note that we have won the majority of these that we have participated in. This drives new sales. Also, up-sales to existing customers is increasing where we sell more branding of the application which increases our stickiness. Also, in the Order Intake diagram you will see our typical seasonal variation with strong Q4’s and less strong Q3’s.

The Annual Recurring Revenus (ARR) make up some 80 percent of our business and is a central metric in the SaaS (Software as a Service) model. During the spring strategy work, we re-defined the activity formula with the objective to accelerate ARR growth. To now, for the FY2020, achieve an ARR-growth of 117 percent (see

This is an excerpt of the original content.


XMReality AB (publ) published this content on 11 February 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 February 2021 07:36:01 UTC.


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