July–September 2019
- Net sales amounted to SEK 2,686 thousand (2,766)
- Costs totaled SEK -10,278 thousand (-10,026)
- The net loss was SEK -6,369 thousand (-5,791)
- Net cash used in the period was SEK -9,214 thousand (-6,316) and the equity/assets ratio at the end of the period was 73.9% (80.5)
Costs in the period increased slightly compared to 2018, attributable mainly to investments in growth or online sales of the Remote Guidance subscription service. The net result of operations weakened slightly compared to the preceding year. Cash flow in the third quarter was reduced by investments in growth.
January–September 2019.
- Net sales amounted to SEK 8,700 thousand (6,905)
- Costs totaled SEK -32,627 thousand (-32,825)
- The net loss was SEK -19,687 thousand (-20,981)
- Net cash used in the period was SEK -20,037 thousand (-22,224)
Total billing increased by 28% compared to the first three quarters of 2018 to SEK 8,916 thousand (6,983), of which approximately 80% was generated by software subscriptions. Subscription charges that have been billed but not yet recognized in revenue*) increased by 45% to SEK 4,251 thousand (2,939). Revenues from subscriptions with contracted automatic extensions, which are recognized on a monthly basis, totaled SEK 789 thousand (584) at the end of the period, an increase of 35%.
Significant events during the period of July–September 2019
- XMReality closed new group-wide general agreement.
- Launch of XMReality Business. This web-based customer offering enables automated sales as a complement to direct sales to large global industrial companies. The launch has made it possible to sell Remote Guidance worldwide. The offering is aimed primarily aimed at small and medium-sized enterprises.
Establishment in the US
We initiated a venture in the American market during the quarter and have established operations in the US. The build-up of the organization is in progress, the first recruitments are confirmed, and additional recruitments are planned in the near future.
Organization
We have hired a general manager, who has experience with software companies and SaaS offerings, for our US subsidiary.
We have also made substantial investments in digital marketing and reinforced the company with a digital marketing manager consequent upon the launch of our online offering.
The HR manager will be leaving the company in November and the role will be filled on a consultant basis.
*) XMReality subscriptions normally run for 12 months for enterprise sales and 1 month with automatic extension for online sales. They are billed in advance and recognized in revenue on a straight-line basis over the term of the contract. Revenue from sales of hardware and services are recognized after delivery is complete, which coincides with the billing date. Billed subscription charges that have not yet been recognized in revenue are reported on the balance sheet.
Link to the interim report website
https://xmreality.com/investors/finansiella-rapporter-analyser-och-dokument/
For more information, please contact:
Johan Castevall, CEO XMReality
Phone: +46 (0)73 356 04 81
E-mail: johan.castevall@xmreality.se
About XMReality Remote Guidance™
XMReality Remote Guidance is an AR-enabled knowledge sharing tool that lets you communicate with gestures, speech, chat and pointers with someone at a completely different place. It includes:
- A unique hands-overlay technology that lets you guide someone else’s hands—as if you were there.
- A web portal to manage teams and users, and to measure usage
- Integration through client-side API’s
About XMReality AB
XMReality AB (publ) develops and sells solutions that revolutionizes knowledge sharing through augmented reality (AR). The company is a market leader in remote guidance, which uses AR to guide onsite staff and enable them to resolve or prevent problems. XMReality’s customers are mainly global industrial companies, including ABB, Siemens Industrial Turbomachinery, Electrolux and Bombardier. XMReality is headquartered in Linköping, Sweden, and is listed on Nasdaq First North (ticker: XMR).
www.xmreality.com
Certified advisor
XMReality’s Certified Adviser is Redeye AB
certifiedadviser@redeye.se
Phone: +46 (0)8 - 121 576 90
www.redeye.se
The information in this news release is such that XMReality AB (publ) is required to make public in accordance with the Market Abuse Regulation issued by the EU. The information was released by the contact person listed below for publication on 25 October 2019 at 08:30 CEST.