Nextech3D.AI (CSE:NTAR, OTCQX:NEXCF) said it successfully executed cost-cutting and strategic initiatives including its operational move to India during the first quarter of 2024 which saw its profit margins improve by 66% year-over-year.
The leader in AI-powered 3D modelling technology said its Q1 margins improved from 30% in the year-ago quarter to 51% as cost-cutting measures reduced its operating loss for the period by 47% from $1.7 million to about $850,000.
The company expects this trend to continue into the second quarter, projecting margins in the range of 70% to 80%. This would represent a 166% plus improvement over 2023.
Operational highlighted for the period included the launch of its AI-powered 3D model search tool, the expansion of its AI tech team and office space, the establishment of a new business unit targeting the jewelry industry, and the creation of its AI incubator and AI acquisition and development division.
The company added that it is exclusively focused on securing large enterprise contracts which are expected to have a “major” impact on its business in future quarters.
It is in advanced discussions with five enterprise customers that are expected to be closed in Q2 and Q3.
One major contract has been closed during Q2 which is set to contribute an additional 10% to its Q2 revenue compared to Q1, the company said.
Revenue for the quarter was approximately $1 million, a slight decrease from the year-ago quarter.
“Despite a slight year-over-year decline in revenue to $1,024,000, we have made significant strides in improving our profitability and operational efficiency through strategic cost-cutting measures and investments in technology,” Nextech3D.AI (CSE:NTAR, OTCQX:NEXCF) CEO Evan Gappelberg said in a statement.
“We are seeing additional operational improvements in Q2 which again will increase our profitability as we drive towards bringing in additional deals and becoming cash flow positive in 2024.”