NexTech AR Solutions Corp (OTCQB:NEXCF) (NEO:NTAR) (FRA:N29) reported record bookings for its augmented reality (AR) and virtual experiences services in the fourth quarter and fiscal 2020 in a preliminary update released Tuesday.
The company saw bookings worth C$7.3 million in the quarter, up 275%, almost 4 times, compared to the fourth quarter of 2019. For the year, bookings totaled more than $20 million, a 235% increase, year-over-year.
NexTech attributes its growth to new Fortune 1000 customer acquisitions, including Amazon.com Inc (NASDAQ:AMZN) (FRA:AMZ), Northwell Health, Boehringer Ingelheim, Dell Technologies Inc (NYSE:DELL) (FRA:12DA), Bell Canada, TELUS Corporation (TSE:TO) (NYSE:TU), Himmel GMBH, Grundfos, UNESCO, Leadiant Bioscience, Johnson & Johnson (NYSE:JNJ), Restaurants Canada, Ryerson University, Carnegie Mellon University and others.
READ: NexTech AR taps Microsoft veteran Hareesh Achi to head its advertising network; shares debut on NEO exchange
The company expects that its 2020 success will lead to more client wins, new product rollouts and an expansion of services to existing customers as the demand for AR and hybrid events continues to accelerate globally in 2021.
“These extraordinarily positive results are being driven by an acceleration in demand across all of our platforms,” CEO Evan Gappelberg said in a statement. “Although these 2020 results are very positive and were only possible by the extreme commitment and devotion from our team of talents, they are in the rear-view mirror and we are now focused on hitting a projected [C]$50-60 million in 2021.”
With strong 2020 results, Gappelberg expects NexTech to generate substantial sponsored ad revenue at virtual events that the company is currently hosting in the coming year.
“Our company is perfectly positioned in 2021 to benefit from the new work from home paradigm shift in business and the digital transformation that is underway which is driving adoption,” Gappelberg said. “As we begin 2021, we currently have a very robust pipeline of business and I expect we will be landing our first multi-year seven-figure deals in [the first half of] 2021.
Using the company’s 3D/AR ads resulted in a 300% increase in sales conversions, a 32% increase in click-through-rate and a 23% lower cost per click than traditional 2D ads, the company said. NexTech’s 3D/AR advertising network is expected to be integrated and driving revenue with the company's two Map Dynamics and Virtual Experience Platform (VXP) in the next 30 days.
“When I think about our 3D ad network in 2021 in the hands of Hareesh [Achi], who has managed a $10 billion business for Microsoft Online, I see substantial revenue opportunities that he will create for us, and I believe 3D ads has the potential to disrupt the ad event industry and sponsorship of events,” Gappelberg said.
Map Dynamics, the company's recently acquired hybrid events platform, is particularly well suited to run ads as it had over 550,000 people attend 450 events in the past 12 months. Looking ahead, the company is expecting a significant ramp-up of events on this platform as it gets localized and converted to Japanese, Chinese, Korean and other Asian market languages in early 2021.
NexTech is uniquely positioned with its diverse product offerings and fully staffed global sales offices in the Asia Pacific Japan (APJ) region. The company recently brought on Yau Boon Lim, a technology industry veteran with more than 25 years of experience in strategy, planning, marketing, operations and business management for various industries in the Asia Pacific market.
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