Nextech3D.AI (CSE:NTAR, OTCQX:NEXCF) has announced a 155% jump in revenues to a record $1.4 million for the second quarter of 2023, and forecast a “turning point” for the company in the third quarter, with revenues expected to surge by 200% as demand for its 3D model soars.
The company, which supplies its generative AI-powered 3D model to major e-commerce retailers such as Amazon, P&G and Kohls, reported gross profit of $0.5 million for the second quarter to June 30, with a margin of 38%.
In the six month-period to end June, gross profit totalled $1.1 million, with revenue growing 157% to $2.7 million.
Nextech3D.AI (CSE:NTAR, OTCQX:NEXCF) last week announced a substantial increase in demand from its largest customer, Amazon, resulting in $2.2 million in additional revenue from new 3D model orders.
In its earnings report, the company said the gross margin is expected to rise to 40-50% next quarter and increase further in Q4 and in 2024.
Hailing the “impressive” Q2 results, CEO Evan Gappelberg said: “However, what excites me even more is the exciting growth we are witnessing in our Q3 and Q4 orders. Based on the current order flow from Amazon, we are projecting a breakout Q3 quarter with revenue of at least $1.7 million, and we also anticipate an expansion in profit margins.”
He added that the revenue forecast for Q3 is a conservative estimate and Nextech3D.AI (CSE:NTAR, OTCQX:NEXCF) believes "there is potential for the revenue to exceed $1.7 million”.
“This quarter is expected to be the long-awaited turning point for our company,” Gappelberg said.
He said the Amazon contract expansion “highlights the success of Nextech3D.AI (CSE:NTAR, OTCQX:NEXCF)'s groundbreaking generative-AI technology, positioning the company as the leading AI solution globally for scaling 3D model production in the thriving e-commerce, gaming, and manufacturing industries”.
Gappelberg also noted that the company’s cash position “is now robust enough to accommodate the increased demand we anticipate in the second half of 2023 and beyond".