The augmented reality company saw revenue for the month more than double year-over-year to C$1.3 million and gross profit nearly quadruple to C$800,000.
“We are firing on all cylinders and having our best month of revenue ever speaks to our sound business strategy and model,” CFO Kashif Malik said in a statement. “I am extremely proud of the team and we are just getting started.”
Leading the way is NexTech’s newly acquired InfernoAR virtual events platform, which is capable of hosting large-scale events of up to 1 million people with virtual lobbies, live presentations and custom holographic product displays.
“During the month of May, we saw an acceleration in sales growth across all our offerings,” CEO Evan Gappelberg noted.
“The demand and need for our virtual events platform, our augmented reality solutions and e-commerce has never been stronger and we see that trend continuing. With 100% of live events cancelled, our newly acquired virtual events platform InfernoAR has really taken off in a big way and looks to grow dramatically in Q2, 2020 and beyond.”
Demand is coming from universities, sports teams, religious institutions and multinational companies alike, Gappelberg said. To keep up, NexTech has hired two new sales reps and is planning to bring on more.
Wayne Kurtzman, research director at the global market intelligence firm IDC, noted that the coronavirus pandemic has dramatically accelerated the trend toward virtual meetings.
“We may have accelerated five to seven years worth of adoption behavior,” Kurtzman said. “Everyone was forced to do a seven year plan in a few weeks.”
NexTech said it plans to report its full second-quarter results in August.
Additionally, as part of its stock option plan, the company said it has issued 200,000 three-year options exercisable at C$2.28 per share.
Contact Andrew Kessel at [email protected]
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