Nextech3D.AI (CSE:NTAR, OTCQX:NEXCF) told investors it is seeing continued global demand for the 3D modelling and AR solutions it designs for the eCommerce sector in Web 3.0.
Reporting financial and operating results for the year to December 31, 2022, the company’s CEO Evan Gappelberg highlighted the addition of Amazon in the third quarter of the year as its largest enterprise customer for 3D model delivery in eCommerce.
“As Amazon is widely regarded as a leader in eCommerce, their decision to transition from 2D to 3D models serves as a strong indicator of the direction the industry is heading towards,” Gappelberg said in a statement.
“We believe this highlights the staying power of 3D models, which will continue to drive the multi-decade, $5 trillion eCommerce megatrend moving forward. In the coming decade, 3D models will be a prerequisite for competing in various industries such as e-commerce, medicine, education, and events," he added.
The company reported a 266% year-over-year increase in revenue from 3D modelling to $1.5 million, taking total 2022 fiscal revenue to $11.5 million - including revenue from its legacy eCommerce business. Technology services revenue reached $3.2 million, with 14% quarter-over-quarter growth of $1 million in the final quarter of the year. The company noted an 82% expansion in technology service gross profit margin to 51% for 2022 compared to 28% in 2021.
“At Nextech, we specialize in creating superior, cost-effective, and timely 3D models. We make them better, faster and cheaper than any other company I know of, and this positions us to be the leaders of this rapidly growing, trillion-dollar megatrend,” Gappelberg concluded. “While it was quite a challenge to get here, we are here now, and we are confident that we are optimally positioned to benefit from the rapid growth in demand for 3D models. From our vantage point, we see nothing but blue sky opportunities."
Contact the author at stephen.gunnion@proactiveinvestors.com