Nextech AR Solutions Corp. (CSE:NTAR, OTCQX:NEXCF) reported that its 3D modeling revenue surged more than 266% in 2022 compared to 2021, according to preliminary results.
The company’s technology services gross profit margin rose to 43% in 2022 compared to 28% in 2021. All told, revenue for fiscal 2022 was $10.3 million, $1.5 million of which came from 3D modeling.
Those figures are a sign of things to come, according to CEO Evan Gappelberg, who called 2023 “the year of AI.”
READ: Nextech AR says its proprietary AI-based 3D model creation using through composition of deformable parts is now covered under US patent
“2022 was a great year and has built a solid foundation of ever-expanding 3D model customers in the ecommerce space for Nextech,” Gappelberg said in a statement. “As we enter 2023 we are leveraging the game-changing power of generative AI which we believe gives us a major competitive advantage in the 3D model market.”
Gappelberg expects generative AI to play a major role in accelerating Nextech’s 3D modeling capabilities.
“With generative AI, we are creating an increasingly wider exponentially growing moat: the more models we make, the larger that part library gets, and the easier it gets to make new 3D models,” he said. “I believe that we are at the point where our business creates a virtuous cycle of growth and value.”
He continued, “2023 is going to be the year of AI and a breakout year for growth in our 3D modeling business as we have already announced multi-million dollar enterprise contacts with even more expected to land in Q1 2023.”
Nextech has issued several quotes for large 3D model RFPs, which could close in the first quarter, the company said.
Additionally, the company is planning a second spin-out, this time of 3D Design Studio Toggle3D, after the successful spin-out debut of ARway (CSE:ARWY)
Nextech AR is a diversified augmented reality, AI technology company that leverages proprietary artificial intelligence (AI) to create 3D experiences for the metaverse. Its main businesses are creating 3D WebAR photorealistic models for the prime eCommerce marketplace as well as many other online retailers.
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