Nextech AR Solutions Corp. (CSE:NTAR, OTCQB:NEXCF, NEO:NTAR) has reported a strong rise in first-quarter revenue driven by record growth in its key 3D model and augmented reality (AR) business.
The company said it achieved sequential quarterly annual recurring revenue (ARR) growth of 62% in the three months to March 31, 2022, from a quarter earlier. Operating expenses declined by $2.7 million, with a $1.1 million reduction in sequential operations expenses from the December quarter.
It noted that the average size of its 3D AR model deals doubled from 4Q 2021 to year-to-date 2022 to a $10,000 deal size on average. Additionally, two new 3D model deals were signed in six figures so far in 2022, it added.
READ: Nextech AR Solutions announces multiple new 3D modeling deals
After ending 1Q 2022 with 12-month ARR contracts - or annual repeat customers - totalling $1.35 million, Nextech said this has grown to $1.58 million so far in the second quarter.
“For the first six weeks of 2Q our 3D AR model business has already surpassed our entire 1Q in contract values signed,” Nextech said in a statement. “The company is seeing a strong uptick in new interest in 3D modeling for eCommerce with larger contracts and an acceleration of closed deals which we expect to continue in 2Q 2022.”
The company ended the quarter with cash and cash equivalent of $10.8 million, up from $7.24 million at the end of December.
Nextech AR Solutions is the engine accelerating the growth of the metaverse. Using breakthrough AI, the company can quickly, easily and affordably ARitize (transform) vast quantities and varieties of existing assets at scale making products, people and places ready for interactive 3D use, giving creators at every level all the essential tools they need to build out their digital AR vision in the Metaverse.
Its platform-agnostic tools allow brands, educators, students, manufacturers, creators, and technologists to create immersive, interactive and the most photo-realistic 3D assets and digital environments, compose AR experiences, and publish them omnichannel. With a full suite of end-to-end AR solutions in 3D Commerce, Education, Events, and Industrial Manufacturing, Nextech AR is in a unique position to meet the needs of the world's biggest brands and all metaverse contributors.
Contact the author at stephen.gunnion@proactiveinvestors.com