REG - Engage XR Holdings - Pre-Close Trading Update and Notice of Results

ENGAGE XR HoldingsAnnouncement

01/08/2023 07:00

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RNS Number : 8043H  Engage XR Holdings PLC  01 August 2023

1 August 2023

 

ENGAGE XR Holdings Plc

("ENGAGE XR" or the "Group")

 

Pre-Close Trading Update and Notice of Results

ENGAGE XR Holdings Plc, a leading Metaverse / Spatial Computing technology
company is pleased to provide an update on trading for the six months ended 30
June 2023.  The Group expects to publish its interim results for the six
months ended 30 June 2023 on Monday 11 September 2023.

The Group continues to trade in line with market expectations. During the six
months to 30 June 2022, the Group has continued to be contracted by new and
existing clients to hold significant events inside its proprietary software
platform, ENGAGE.

Financial Highlights:

·    Group revenue continued to grow, with unaudited H1 2023 revenue
expected to be c.€2.1 million, an increase of 18% on the prior year (H1
2022: €1.8 million)

·    ENGAGE revenue is the main driver of the increase in group revenue
with unaudited H1 2023 revenue expected to be c €1.9 million, an increase of
30% on the prior year (H1 2022: €1.5m)

·    ENGAGE revenue comprises 91% of H1 2023 total revenue (H1 2022: 83%)

·    Unaudited gross margin in H1 2023 was 93%, an increase of 12% on the
prior year (H1 2022: 81%)

·    Cash balance at 30 June 2023 of €9.4m (30 June 2022: €4.9m) as
the Group's cash position was significantly strengthened following a
successful €10.5 million (€9.9 million net of expenses) oversubscribed
fundraise in February 2023.

Operational Highlights

·    The Group is gaining traction in the US market. 54% of revenue in H1
2023 has been derived from North America compared to 30% for FY22, following
the deployment of the US sales team in mid-2022

·    A steadily increasing client base with more than 220 active
Enterprise and Education customers at 30 June 2023 (31 December 2022: 190)

·    Ground-breaking concert hosted in ENGAGE in March 2023 by the
renowned international musician, Norman Cook, aka Fatboy Slim (Highlights
Video (https://youtu.be/27Ska8oQebY) )

·    Following the launch of Lenovo™'s new ThinkReality™ VRX
all-in-one virtual reality (VR) headset in June 2023 the Group expects the
benefits of the Lenovo hardware partnership to start to be seen in early Q4
2023

 

Post-period end Highlights:

·    5,400 user K-12 education license deal signed with a US state as a
pilot programme valued at in excess of €300k

·    Successful employee onboarding event run with one of the world's
largest banks

 

David Whelan, CEO, VRE, said: "The first half of 2023 has demonstrated our
continued progress as more companies embrace the new world of virtual
communications, such as extended reality (XR) / Spatial Computing and the
Metaverse. Our client list is steadily growing, and we have added more than 30
new customers, including two leading global banks, as well as seeing an uptick
in activity and spend from our existing users.

 

"As well as working with large international enterprises, the very
well-received Fatboy Slim concert held in ENGAGE in March showcased the
innovation and flexibility of the platform, with the potential to open up new
revenue streams.

 

"The XR market is continuing to grow and develop. We have seen Apple announce
plans to launch a headset, Meta is releasing the Quest 3 later this year, and
other providers are also launching new hardware, including Lenovo, with whom
we have a partnership agreement. With the launch of Lenovo's new
enterprise-focused headset and through our agreement with Lenovo we have
increased our international reach and customer base as we collaborate to
target Lenovo's top 100 customers together.

 

"Success has been achieved despite the considerable headwinds we continue to
see in the global economy, and we look forward to the second half of the year
with optimism. ENGAGE is growing its customer base as others in the market are
fading, which is testament to our fantastic team and quality of our product
offering."

 

The information contained within this announcement is deemed to constitute
inside information as stipulated under the Market Abuse Regulations (EU No.
596/2014) which is part of UK law by virtue of the European Union (Withdrawal)
Act 2018. Upon the publication of this announcement, this inside information
is now considered to be in the public domain

 

For further information, please contact:

 

 ENGAGE XR Holdings Plc                               Tel: +353 87 665 6708

 David Whelan, CEO                                    info@engagexr.co

 Séamus Larrissey, CFO

 Sandra Whelan, COO

 finnCap Ltd (Nominated Adviser & Joint Broker)       Tel: +44 (0) 20 7220 0500

 Marc Milmo/ Seamus Fricker (Corporate finance)

 Sunila de Silva (ECM)

 Shard Capital Partners LLP (Joint Broker)            Tel: +44 (0) 20 7186 9952

 Damon Heath / Erik Woolgar

 SEC Newgate (Financial Communications)               Tel: +44 (xxx

 Robin Tozer / Tom Carnegie / Naz Zandi               engage@secnewgate.co.uk

 

 

About ENGAGE XR

ENGAGE XR Holdings plc (AIM: EXR) is an extended reality (XR) technology
company focused on becoming a leading global provider of virtual
communications solutions through its new fully featured corporate metaverse,
ENGAGE Link. A demonstration of ENGAGE Link is
https://www.youtube.com/watch?v=ITtz7ErWhMs&t=2s
(https://www.youtube.com/watch?v=ITtz7ErWhMs&t=2s)

The Company also has a proprietary software platform, ENGAGE. ENGAGE provides
users with a platform for creating, sharing, and delivering VR content for
education, training, and online events through its three solutions: Virtual
Campus, Virtual Office, and Virtual Events.

For further information, please visit: www.engagexrholdings.com (LinkedIn:
@Engage XR Holdings plc Twitter: @engage_xr)

 

 

Forward-Looking Statements

Certain statements made in this announcement are forward-looking statements.
These forward-looking statements are not historical facts but rather are based
on the Group's current expectations, estimates, and projections about its
industry; its beliefs; and assumptions. Words such as 'anticipates,'
'expects,' 'intends,' 'plans,' 'believes,' 'seeks,' 'estimates,' and similar
expressions are intended to identify forward-looking statements. These
statements are not guarantees of future performance and are subject to known
and unknown risks, uncertainties, and other factors, some of which are beyond
the Group's control, are difficult to predict, and could cause actual results
to differ materially from those expressed or forecasted in the forward-looking
statements.

The Group cautions security holders and prospective security holders not to
place undue reliance on these forward-looking statements, which reflect the
view of the Group only as of the date of this announcement. The
forward-looking statements made in this announcement relate only to events as
of the date on which the statements are made. The Group will not undertake any
obligation to release publicly any revisions or updates to these
forward-looking statements to reflect events, circumstances, or unanticipated
events occurring after the date of this announcement except as required by law
or by any appropriate regulatory authority.

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