Nextech3D.AI (CSE:NTAR, OTCQX:NEXCF) announced that it expects to see strong sales growth in 2025 starting in January, building on its strong performance last year.
The company, a provider of augmented reality (AR) and artificial intelligence (AI) technologies, on Tuesday reported preliminary unaudited revenue of $3.1 million for 2024.
Gross profit was $1.9 million, up 62%, as its gross profit margin grew to 65% from 29%.
Nextech3D.ai reduced its overall operational costs by 25% in 2024 attributed to the implementation of AI technologies and having 3D operations in India, with greater savings and operational efficiency expected in 2025.
Looking ahead, the company said it expects to achieve a gross profit margin of 80% plus by the year-end.
Sales growth is expected to be driven by strategic appointments, including the hiring of new Business Development Representatives, and expanded product offerings.
As it integrates AI tools and optimizes cloud infrastructure to drive profitability, it also anticipates reducing its overall operational costs by more than 50%.
"We are encouraged with our early success in sales in 2025 and the solid progress we made in cost cutting and improving margins in 2024," Nextech3D.ai CEO Evan Gappelberg said.
"With a strong sales performance in January, cost reduction initiatives on track, and continued advancements in AI, we are confident that we will meet our 2025 goals of achieving an 80% gross profit margin and expanding our market share."
Investors welcomed the report, sending Nextech3D.ai's Canadian-listed shares 20% higher while its US-listed stock gained 30.1% in early afternoon on Tuesday.
- Updated with share price movement -