Engage XR (EXR) , a Metaverse/Spatial Computing technology company, announced its unaudited interim results for the six months ended 30 June 2023, with revenue, client lists and user numbers all continuing to expand.
Revenue increased 18% to €2.1 million, with ENGAGE revenue the main driver of the increase, up 30% in the period and comprising 91% of total revenue. Gross margin in H1 2023 was 93%, up 12%, with EBITDA loss coming in at €2.1m
Loss before tax improved and was in line with expectations: €2.2m compared with €2.8m in the previous period. Engage XR had €9.4m in cash as of 30 June, with its cash position significantly strengthened following an oversubscribed €10.5 million fundraise in February 2023.
Engage XR's presence in the US is on the rise, with 54% of H1 2023 revenue originating from North America. Engage XR’s client base also has steadily expanded, with more than 220 active Enterprise and Education customers as of June 30, 2023, compared to 190 at the end of 2022.
Additionally, with the launch of Lenovo™'s new ThinkReality™ VRX all-in-one VR headset in June 2023, Engage XR anticipates reaping the benefits of its partnership with Lenovo, with noticeable impacts expected to emerge in early Q4 2023.
Looking ahead, Engage XR is optimistic for the second half, especially in Q4, which is its peak growth period with contract renewals. Its pipeline, including collaborations with Meta and Lenovo, could bring more exciting revenue opportunities in H2.
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Engage XR is a provider of virtual communication solutions. Its flagship product, ENGAGE Link, is a fully-featured corporate metaverse designed to facilitate virtual communication.
The company also offers a proprietary software platform called ENGAGE, its main revenue driver in H1. This platform is used to create, share, and deliver VR content for educational purposes, training, and online events. ENGAGE offers three solutions: Virtual Campus, Virtual Office, and Virtual Events.
Engage XR has noted that the immersive tech industry is starting to mature, with Apple, Lenovo, and Meta diversifying their headset applications beyond gaming, focusing on enterprise and collaboration. This shift in turn creates new opportunities for ENGAGE.
The global immersive technology market size was valued at $22.5 billion in 2022 and is expected to hit around $167.75 billion by 2032, with a compound annual growth rate of 22.3% from 2023 to 2032. Engage XR is well-paced in the market currently, with the training and learning segment generating a 39% market share in 2022.
Engage XR is seeing continued momentum post-period, with July and August delivering a combined €1m in revenue. As its clients continue to see the value in its Engage platform, the company is well-positioned for future growth.
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