Nextech3D.AI (CSE:NTAR, OTCQX:NEXCF) has unveiled its preliminary unaudited financial and operating results for the second quarter of 2024, which ended on June 30.
The leading AI-powered 3D model provider for eCommerce saw its revenue grow year-over-year to $1.2 million from $1 million.
Its gross profit margin increased to 70% from 50% in the first quarter and 30% for the full year 2023. It marks a new six-year high for the company.
Nextech3D.AI (CSE:NTAR, OTCQX:NEXCF) said its strategic pivot to India in Q4 2023 is forecast to increase its gross margin to 80% in 2024.
CEO Evan Gappelberg expressed his pleasure with the company’s Q2 preliminary results, particularly its 70% gross margin.
“As a newly certified 3D modeling partner for Amazon, the largest eCommerce platform, we anticipate significant new business opportunities from this pivotal certification,” he said.
“Moving operations to India has positively impacted our production capacity and profits, with consistent profit margins of 70%, a 133% increase compared to our 30% margins in 2023."
Gappelberg expects Nextech3D.ai’s growth to accelerate in 2024 as it secures more enterprise deals and as Amazon promotes its 3D modelling services to their merchants.
“At the same time, we are developing crucial AI technology that will continue to drive our revenue and profits,” the CEO said.
“We are witnessing a rapid convergence of AR and AI technology, which is beginning to drive the mass adoption of 3D modeling for eCommerce."