NexTech is a first mover in the explosive augmented reality space with its ARitize technology
Well capitalized with C$3.5 million in cash and a built-in revenue stream of US$2.7 million for 2019
Currently pursuing three multibillion-dollar verticals in the AR industry in areas that it sees incredible revenue potential for ARitize
What NexTech AR does:
NexTech AR Solutions Inc (CSE:NTAR) (OTCMKTS:NEXCF) is creating a buzz in the already hot augmented reality space with its proprietary ecommerce platform, ARitize.
ARitize is the first cross-platform, browser-based and web-enabled augmented reality ecommerce option. A monthly SaaS subscription platform, ARitize enables retailers to transform two-dimensional images into true 3D AR experiences.
Augmented or virtual reality applications are set to revolutionize the ecommerce space, a burgeoning US$2.8 billion industry that is expected to nearly double its value in three years, according to company data.
The Toronto-based company is currently pursuing three multi-billion dollar verticals in the AR industry in areas where it sees incredible revenue potential for ARitize.
The company launched its technologically advanced webAR for e-commerce early in 2019 and has been rapidly signing up customers onto its SaaS platform, with notable customer wins like Walther Arms, Wright Brothers, Mr Steak and Budweiser.
ARitize University is an app-based solution that allows companies and educational establishments to leverage all of their existing 2D assets such as YouTube videos, PDF documents, PowerPoint decks and images, and overlay immersive 3D-AR experiences on top of that content for an interactive training experience that drives productivity.
Finally, AR Hollywood Studios is a proprietary entertainment venue for which it is producing immersive content using AR as the primary display platform.
How is it doing:
Since going public in October 2018, NexTech has made a number of acquisitions that are driving revenue, including a January 2019 deal to acquire the profit-generating AR Ecommerce LLC. The deal gives the technology company a revenue base of nearly US$2.7 million in 2019.
Another game-changer came in March with the launch of AR Dispensary, an innovative augmented reality platform for the red-hot cannabis industry.
NexTech believes that interactive AR experiences are the next step in retail purchasing, especially in a new industry like cannabis. The release of AR Dispensary continues NexTech’s penetration into the burgeoning market, following its deal with Cannvas Medtech Inc, a leading digital cannabis education and business technology company, in January 2019.
It looks as if the moves are paying off, as NexTech’s latest financials revealed revenue doubled in its fiscal fourth quarter.
The company posted revenue of more than $1 million in the three months ending 31 May 2019, nearly double the $531,185 it brought in the quarter before. Profit increased accordingly, up to $525,776 from $208,750, with a margin bump to 50.7% from 39%.
This comes following the closing of a C$1.6 million, management-led private placement led by CEO Evan Gappelberg, who ponied up $867,000.
The New York and Toronto-based company plans to use the funds to expand its sales team, pursue mergers and acquisitions and for general capital purposes.
After launching in early 2019, the company expects ARitze to start generating revenue and earnings growth through the end of the year.
NexTech is also launching AR Hollywood Studios in the last calendar quarter of 2019, which it hopes will propel the company to tenfold revenue growth in 2020.
The company is building out its sales team in response to increased demand for its AR services and expects to continue to hire more salespeople over the coming months.
On 25 July, NexTech announced the hiring of two seasoned eCommerce managers. The group appointed Artem Tokariev as its new eCommerce managing director and Artemio Moya as brand-product sales channel director.
Before joining NexTech, Tokariev managed Chinese tech giant Huawei’s Direct-to-Consumer eCommerce business in the US. He was responsible for the overall performance of the eCommerce business including growth, revenue and margin targets.
What the CEO says:
NexTech is laying the foundation for rapid growth in 2020 and beyond, according to CEO Evan Gappelberg.
“Growth is going to come from a combination of our AR business, which is going to start to scale in 2020, but also our ecommerce businesses,” he said in an interview with Proactive.
“Our AR enhanced ecommerce businesses are going to really ignite and take off. We’re integrating all of our AR technology into ecommerce businesses, which combined creates a very, very powerful platform for NexTech.”
Gappelberg is confident that NexTech is at the cusp of a transformational year for the AR company: “We think that 2020 is really just the beginning, so our expectation of ten times revenue in 2020 is not going to stop in 2021, or 2023. We expect that kind of growth to continue for the foreseeable future.”
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