NexTech AR doubles up 2Q revenue on strong demand for InfernoAR virtual events

NexTech AR Solutions Corp (OTCQB:NEXCF) (CSE:NTAR) revealed second-quarter revenue after the bell Tuesday that more than doubled year-over-year as demand for its InfernoAR video conferencing platform surged.

The augmented reality company brought in C$3.5 million during the three months ended June 30, a 133% increase from the same period of 2019. Gross profit jumped 171% to C$2.1 million. 

A major driver of the swelling revenue was the company’s newly launched InfernoAR business, which has booked approximately C$1 million in virtual event deals over the past 60 days. These are typically 1-3 day events which pay between $25,000-$250,000 with clients including ARCH Insurance, ICSOBA, NAMPI, NAMD, Shaklee, YASM (Church), BDA Sports, SWM International, Aluminium Research Centre and the Government of Canada. 

READ: NexTech AR appoints SAP executive Eugen Winschel as chief operating officer

Currently, InfernoAR has a run rate of nearly C$12 million annually, and the company believes that figure will increase as its salesforce grows. 

“We are uniquely positioned to see our business benefit from this new ‘stay at home’ paradigm shift with our AR ecommerce, video conferencing and Virtual events business units,” CEO Evan Gappelberg said. “The digital transformation that is taking place globally is creating more business opportunities for video conferencing virtual learning, virtual conferences, or virtual events, and e-commerce than ever before.”

Looking forward, NexTech has applied to list on the Nasdaq and is eyeing potential acquisition opportunities.

“NexTech’s leadership position in this industry is now attracting more M&A opportunities, as we are being approached by innovative AR/VR technology companies,” Gappelberg said. “We have closed on four deals in the last 18 months and are in discussions with several candidates with an eye toward a transformative acquisition, which could further enhance shareholder value.”

The CEO also put short sellers on notice. 

“In recent days, our stock has again been attacked by short sellers who are using market manipulation and false rumors to create panic in the market,” Gappelbrg said. “Our business, our cash position and our product mix has never been better since going public in 2018. It is unfortunate that shareholders are being misled by individuals that want to see our stock go down and we urge you to read our financial reports, to visit our website or even call me directly as many of you have in the past day. My direct line is 631-655-6733 or you can email me questions at [email protected] as we have nothing to hide.”

NexTech, based in New York and Toronto, offers video conferencing and virtual events with InfernoAR, AR for e-commerce companies, AR in Chat and “v-commerce,” an in-store virtual reality experience.

Contact Andrew Kessel at [email protected]

Follow him on Twitter @andrew_kessel

Story by ProactiveInvestors