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The Glimpse Group Reports Q1 Fiscal Year 2025 Financial Results

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The Glimpse Group (NASDAQ:VRAR) reported Q1 FY25 revenue of $2.44M, showing a 44% increase from Q4 FY24 but a 21% Y-Y decrease. The company projects FY25 revenue of $11-12M, representing 25-35% growth from FY24. Q1 gross margin improved to 79% from 62% Y-Y, with adjusted EBITDA loss reducing to $0.46M from $1.29M. The company maintains $1.4M in cash with $0.9M in receivables and expects positive cash flow in upcoming quarters. As part of strategic realignment, Glimpse divested QReal subsidiary, creating expected $4M net cash value over two years and $1.2-1.5M annual cash savings.

The Glimpse Group (NASDAQ:VRAR) ha riportato un fatturato di Q1 FY25 di $2,44M, mostrando un aumento del 44% rispetto al Q4 FY24, ma una diminuzione del 21% rispetto all'anno precedente. L'azienda prevede un fatturato per FY25 compreso tra $11-12M, che rappresenta una crescita del 25-35% rispetto al FY24. Il margine lordo del Q1 è migliorato al 79% rispetto al 62% dell'anno precedente, con una perdita di EBITDA rettificato ridotta a $0,46M da $1,29M. L'azienda mantiene $1,4M in contante con $0,9M in crediti e prevede flussi di cassa positivi nei prossimi trimestri. Nell'ambito di una riallocazione strategica, Glimpse ha dismesso la controllata QReal, creando un valore netto di cassa previsto di $4M in due anni e risparmi annuali in contante compresi tra $1,2-1,5M.

The Glimpse Group (NASDAQ:VRAR) reportó ingresos de $2,44M en el Q1 FY25, mostrando un aumento del 44% respecto al Q4 FY24, pero una disminución del 21% en comparación con el año anterior. La compañía proyecta ingresos de FY25 de entre $11-12M, lo que representa un crecimiento del 25-35% desde FY24. El margen bruto del Q1 mejoró al 79% desde el 62% del año anterior, con la pérdida de EBITDA ajustado reducida a $0,46M desde $1,29M. La compañía mantiene $1,4M en efectivo con $0,9M en cuentas por cobrar y espera un flujo de caja positivo en los próximos trimestres. Como parte de una reestructuración estratégica, Glimpse desinvirtió su subsidiaria QReal, creando un valor neto de efectivo esperado de $4M en dos años y ahorros anuales en efectivo de $1,2-1,5M.

The Glimpse Group (NASDAQ:VRAR)는 FY25 1분기 매출이 $2.44M에 달하며, FY24 4분기 대비 44% 증가했지만, 전년 대비 21% 감소했다고 보고했습니다. 이 회사는 FY25 매출이 $11-12M에 이를 것으로 예상하며, 이는 FY24 대비 25-35%의 성장률을 나타냅니다. 1분기 총 마진은 전년 대비 62%에서 79%로 개선되었고, 조정된 EBITDA 손실은 $1.29M에서 $0.46M로 줄어들었습니다. 회사는 $1.4M의 현금을 보유하고 있으며, $0.9M의 외상 매출금이 있고, 향후 분기 동안 긍정적인 현금 흐름을 기대하고 있습니다. 전략적 재조정의 일환으로 Glimpse는 QReal 자회사를 매각하여 향후 2년 간 예상 순 현금 가치를 $4M으로 만들고, 연간 $1.2-1.5M의 현금 절약을 기대하고 있습니다.

The Glimpse Group (NASDAQ:VRAR) a annoncé un chiffre d'affaires de $2,44M pour le Q1 FY25, affichant une augmentation de 44% par rapport au Q4 FY24, mais une diminution de 21% en glissement annuel. L'entreprise projette un chiffre d'affaires FY25 de $11-12M, représentant une croissance de 25-35% par rapport au FY24. La marge brute du Q1 s'est améliorée à 79% contre 62% l'année précédente, avec une perte d'EBITDA ajusté réduite à $0,46M contre $1,29M. L'entreprise maintient $1,4M en liquidités avec $0,9M en créances et s'attend à un flux de trésorerie positif dans les prochains trimestres. Dans le cadre d'une réorganisation stratégique, Glimpse a cédé sa filiale QReal, créant une valeur nette en espèces attendue de $4M sur deux ans et des économies annuelles en espèces de $1,2-1,5M.

The Glimpse Group (NASDAQ:VRAR) berichtete über einen Umsatz von $2,44M im Q1 FY25, was einen Anstieg von 44% im Vergleich zu Q4 FY24, aber einen Rückgang von 21% im Jahresvergleich darstellt. Das Unternehmen prognostiziert für FY25 einen Umsatz von $11-12M, was einem Wachstum von 25-35% im Vergleich zu FY24 entspricht. Die Bruttomarge verbesserte sich im Q1 auf 79% gegenüber 62% im Vergleich zum Vorjahr, während der angepasste EBITDA-Verlust auf $0,46M von $1,29M reduziert wurde. Das Unternehmen hält $1,4M in bar und $0,9M an Forderungen und erwartet im kommenden Quartal einen positiven Cashflow. Im Rahmen einer strategischen Neuausrichtung hat Glimpse die Tochtergesellschaft QReal veräußert, was einen erwarteten Netto-Cashwert von $4M über zwei Jahre und jährliche Cash-Einsparungen von $1,2-1,5M schaffen soll.

Positive
  • 44% Q-Q revenue growth to $2.44M
  • Gross margin improvement to 79% from 62% Y-Y
  • Reduced adjusted EBITDA loss to $0.46M from $1.29M
  • Projected 25-35% annual revenue growth for FY25
  • Expected $4M net cash value from QReal divestiture
  • $1.2-1.5M annual cash expense savings post-divestiture
  • Clean capital structure with no debt
Negative
  • 21% Y-Y revenue decline to $2.44M
  • Cash position decreased to $1.4M
  • Monthly operating expenses still at $1.0M

Insights

The quarterly results reveal mixed signals. While Q1 revenue of $2.44 million shows a strong 44% sequential growth, the 21% year-over-year decline raises concerns. However, the company's strategic realignment and improved margins paint a more optimistic picture. The gross margin improvement to 79% from 62% and reduced EBITDA loss to $0.46 million from $1.29 million demonstrate operational efficiency. The projected $11-12 million revenue for FY '25 and potential $5-10 million in enterprise contracts could significantly impact this micro-cap company's trajectory. The QReal divestiture, expected to generate $4 million in net cash value, appears strategically sound for streamlining operations.

The strategic pivot toward Spatial Computing, Cloud and AI-driven solutions positions the company well in high-growth enterprise markets. The pending contracts with Government and DoD entities suggest increasing institutional adoption of immersive technologies. The divestiture of QReal streamlines the focus on core enterprise solutions while maintaining revenue potential through structured agreements. The company's clean capital structure, debt-free status and projected positive cash flow in upcoming quarters indicate a stronger foundation for executing their enterprise-focused strategy. The Board's exploration of strategic options suggests potential for significant corporate actions that could unlock shareholder value.

NEW YORK, NY / ACCESSWIRE / November 14, 2024 / The Glimpse Group, Inc. ("Glimpse") (NASDAQ:VRAR), a diversified Immersive Technology platform company providing enterprise-focused Virtual Reality ("VR"), Augmented Reality ("AR") and Spatial Computing software and services, provided financial results for its first quarter fiscal year 2025 year, ended September 30, 2024 ("Q1 FY '25").

Business Commentary by President & CEO Lyron Bentovim

Financial Summary:

  • Q1 FY '25 revenue of approximately $2.44 million, reflecting: a) 44% increase compared to Q4 FY '24 (ending June 30, 2024) revenue of approximately $1.7 million. The Q-Q increase was primarily driven by an increase in Spatial Core revenues, and b) a 21% decrease compared to Q1 FY '24 (ending September 30, 2023) revenue of approximately $3.1 million. The Y-Y decrease was primarily driven by our strategic alignment over the last 9 months which led to a turnover in our legacy customer base and consolidation and divestiture of some of our businesses.

  • We expect revenue in the next three upcoming quarters to exceed $3 million on average per quarter, and aggregate revenue for FY '25 (ending June 30, 2025) to be in the $11-12 million range compared to $8.8 million for FY '24 (ended June 30, 2024), a 25-35% increase in annual revenue. This expected growth will be primarily driven by an increase in Spatial Core revenues, as well as potential growth in our other businesses.

  • Gross Margin for Q1 FY ‘25 was approximately 79% compared to 62% for Q1 FY ‘24. The increase was driven by an increase in Spatial Core revenues and higher software license revenues this quarter. On average, we expect our going forward Gross Margin to be in the 60-70% range.

  • Adjusted EBITDA loss for Q1 FY '25 was approximately $0.46 million, compared to an adjusted EBITDA loss of approximately $1.29 million for Q1 FY '24.

  • Our current cash operating expense base (pre revenue) is now less than $1.0 million/month. Given our projected revenues going forward, we expect to generate positive cash flow in each of the three remaining quarters.

  • The Company's cash and equivalent position as of September 30, 2024 was approximately $1.4 million, with an additional $0.9 million in accounts receivable.

  • We do not intend to raise capital in the foreseeable future, especially since we expect our operations to generate positive cash and grow our cash balance between.

  • We continue to maintain a clean capital structure with no debt, no convertible debt and no preferred equity.

  • For the full detail of our financial results, please refer to our 8K and 10Q filed on 11/14/24.

Recent Business Updates:

  • During the quarter, we continued to progress toward securing several multi-million dollar enterprise-scale Spatial Computing, Cloud and AI driven Immersive software solutions ("Spatial Core") contracts with multiple Government, DoD and large enterprise customers. The short-term aggregate value for these contracts is in the $5-10 million range. We expect to get confirmation on one of these contracts in December ‘24 and to receive confirmation on the others in early 2025, due to government budgetary delays.

  • Entered into a mid-six figure contract with a global water and hygiene infrastructure company for an augmented reality (AR) solution.

  • Entered into a mid-six figure contract with a global energy company for Immersive content.

  • Entered into a multi year, mid-six figure contract with a state district for Immersive education.

  • QReal saw a significant increase in revenue, driven by demand from its largest customer for AR lenses and 3D models.

Strategic Review & QReal Divestiture

  • In light of Spatial Core's AI and Cloud driven revenues with large DoD entities, our strong pipeline of revenues and our expectation to generate positive cash flows going forward, we believe that there is a sharp disconnect between our intrinsic value and our current public company valuation.

  • This disconnect has had a significant negative impact on our ability to execute on our growth strategy. As such, the Board of Directors of the Company is exploring various aggressive strategic options to unlock the value inherent in our business and/or assets and may pursue such options during this fiscal year.

  • As part this strategic review process and our previously announced strategic realignment around Spatial Core and divestiture of non-core assets, effective on October 1, 2024, Glimpse divested the businesses of its wholly owned subsidiary companies QReal, LLC ("QReal") and its related Turkey-based operating entity ("Glimpse Turkey").

Key elements of the divestiture:

  • Creates approximately $4.0 million of expected net cash value to Glimpse over the next two years, inclusive of $1.2 to $1.5 million in annual cash expense savings (excluding the upside potential from our equity position in the divested entity and/or from the repayment of our senior note).

  • Simplifies and streamlines Glimpse's operations (approximately 60 less employees) and eliminates Turkey country risk.

  • No material changes to our expected revenues for fiscal years 2025 and 2026, as Glimpse retains the revenues from QReal's largest customer in full until such time that Glimpse has collected and retained $1.35 million net cash in the aggregate, after taking into account all related operating expenses and fees (the "Milestone"). After satisfaction of the Milestone, Glimpse will receive a monthly cash revenue share for an additional period of 18 months in relation to any revenues generated from this same customer.

  • Glimpse was issued a $1.56 million Senior Secured Convertible Note in a new and independent entity ("Newco") that will operate QReal's virtual try-on business. Note principal payback is tied directly to revenue collected by Newco (separate from the Milestone).

  • Newco raised outside capital and Glimpse was issued a minority equity stake in Newco.

  • We believe that QReal's virtual try-on business has greater growth and success potential as an independent entity outside of Glimpse, potentially creating significant equity value for Glimpse's shareholders in excess of QReal's current equity value within Glimpse.

Q1 Fiscal Year 2025 Conference Call and Webcast
Date: Thursday, November 14, 2024
Time: 4:30 p.m. Eastern time
USA Dial In: 877-545-0320
International: 973-528-0002
Participant Access Code: 981585
Webcast: https://www.webcaster4.com/Webcast/Page/2934/51637

Please dial in at least 10 minutes before the start of the call to ensure timely participation.

A playback of the webcast will be available through Friday, November 14, 2025. A replay of the teleconference will be available through November 28, 2024. To listen, please call USA: 877-481-4010 or
International: 919-882-2331; Replay Passcode: 51637. A webcast will also be available on the IR section of The Glimpse Group website (ir.theglimpsegroup.com) or by clicking the webcast link above.

Note about Non-GAAP Financial Measures

A non-GAAP financial measure is a numerical measure of a company's performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with accounting principles generally accepted in the United States of America, or GAAP. Non-GAAP measures are not in accordance with, nor are they a substitute for, GAAP measures. Other companies may use different non-GAAP measures and presentation of results.

In addition to financial results presented in accordance with GAAP, this press release presents adjusted EBITDA, which is a non-GAAP measure. Adjusted EBITDA is determined by taking net loss and adding interest, taxes, depreciation, amortization and stock-based compensation expenses. The company believes that this non-GAAP measure, viewed in addition to and not in lieu of net loss, provides useful information to investors by providing a more focused measure of operating results. This metric is an integral part of the Company's internal reporting to evaluate its operations and the performance of senior management. A reconciliation of adjusted EBITDA to net loss, the most comparable GAAP measure, is available in the accompanying financial tables below. The non-GAAP measure presented herein may not be comparable to similarly titled measures presented by other companies.

About The Glimpse Group, Inc.

The Glimpse Group (NASDAQ:VRAR) is a diversified Immersive technology platform company, providing enterprise-focused Virtual Reality, Augmented Reality and Spatial Computing software & services. Glimpse's unique business model builds scale and a robust ecosystem, while simultaneously providing investors an opportunity to invest directly into this emerging industry via a diversified platform. For more information on The Glimpse Group, please visit www.theglimpsegroup.com

Safe Harbor Statement

This press release does not constitute an offer to sell or a solicitation of offers to buy any securities of any entity. This press release may contain certain forward-looking statements based on our current expectations, forecasts and assumptions that involve risks and uncertainties. Forward-looking statements, if provided, are based on information available to the Company as of the date hereof. Our actual results may differ materially from those stated or implied in such forward-looking statements, due to risks and uncertainties associated with our business. Forward-looking statements, if provided, include statements regarding our expectations, beliefs, intentions, or strategies regarding the future and can be identified by forward-looking words such as "anticipate," "believe," "view," "could," "estimate," "expect," "intend," "may," "should," and "would" or similar words. All forecasts, if provided, are based on information available at this time and management expects that internal projections and expectations may change over time. In addition, any forecasts, if provided, are entirely on management's best estimate of our future financial performance given our current contracts, current backlog of opportunities and conversations with new and existing customers about our products and services. We assume no obligation to update the information included in this press release, whether as a result of new information, future events or otherwise.

Company Contact:
Maydan Rothblum
CFO & COO
The Glimpse Group, Inc.
(917) 292-2685
maydan@theglimpsegroup.com

THE GLIMPSE GROUP, INC.
CONSOLIDATED BALANCE SHEETS

As of
September 30,
2024

As of
June 30,
2024

(Unaudited)

(Audited)

ASSETS

Cash and cash equivalents

$

1,413,794

$

1,848,295

Accounts receivable

871,493

723,032

Deferred costs/contract assets

320,372

170,781

Prepaid expenses and other current assets

817,088

778,181

Total current assets

3,422,747

3,520,289

Equipment, net

146,728

167,325

Right-of-use assets, net

357,419

452,808

Intangible assets, net

362,326

487,867

Goodwill

10,857,600

10,857,600

Other assets

18,468

72,714

Total assets

$

15,165,288

$

15,558,603

LIABILITIES AND STOCKHOLDERS' EQUITY

Accounts payable

$

221,366

$

181,668

Accrued liabilities

320,669

340,979

Deferred revenue/contract liabilities

447,858

72,788

Lease liabilities, current portion

232,933

364,688

Contingent consideration for acquisitions, current portion

2,914,490

1,467,475

Total current liabilities

4,137,316

2,427,598

Long term liabilities

Contingent consideration for acquisitions, net of current portion

-

1,413,696

Lease liabilities, net of current portion

136,952

178,824

Total liabilities

4,274,268

4,020,118

Commitments and contingencies

-

Stockholders' Equity

Preferred Stock, par value $0.001 per share, 20 million shares authorized; 0 shares issued and outstanding

-

-

Common Stock, par value $0.001 per share, 300 million shares authorized; 18,166,217 and 18,158,217 issued and outstanding, respectively

18,166

18,158

Additional paid-in capital

74,926,319

74,559,600

Accumulated deficit

(64,053,465

)

(63,039,273

)

Total stockholders' equity

10,891,020

11,538,485

Total liabilities and stockholders' equity

$

15,165,288

$

15,558,603

THE GLIMPSE GROUP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS

For the Three Months Ended

September 30,

2024

2023

Revenue

Software services

$

2,229,257

$

3,012,071

Software license/software as a service

209,112

92,809

Total Revenue

2,438,369

3,104,880

Cost of goods sold

515,303

1,181,509

Gross Profit

1,923,066

1,923,371

Operating expenses:

Research and development expenses

1,120,522

1,680,787

General and administrative expenses

939,712

1,096,042

Sales and marketing expenses

738,875

813,742

Amortization of acquisition intangible assets

125,541

368,120

Goodwill impairment

-

379,038

Intangible asset impairment

-

513,891

Change in fair value of acquisition contingent consideration

33,319

(2,757,530

Total operating expenses

2,957,969

2,094,090

Loss from operations before other income

(1,034,903

)

(170,719

Other income

Interest income

20,711

51,276

Net Loss

$

(1,014,192

)

$

(119,443

Basic and diluted net loss per share

$

(0.06

)

$

(0.01

)

Weighted-average shares used to compute basic and diluted net loss per share

18,164,217

14,730,386

THE GLIMPSE GROUP, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Three Months Ended
September 30,

2024

2023

Cash flows from operating activities:

Net loss

$

(1,014,192

)

$

(119,443

)

Adjustments to reconcile net loss to net cash used in operating activities:

Amortization and depreciation

155,594

398,923

Common stock and stock option based compensation for employees and board of directors

366,727

666,620

Accrued non cash performance bonus fair value adjustment

-

(388,734

)

Acquisition contingent consideration fair value adjustment

33,319

(2,757,530

)

Impairment of intangible assets

-

892,929

Issuance of common stock to vendors

-

26,936

Amortization of right-of-use assets

95,389

95,727

Changes in operating assets and liabilities:

Accounts receivable

(148,461

)

251,407

Deferred costs/contract assets

(149,591

)

1,834

Prepaid expenses and other current assets

(38,907

)

(56,204

)

Other assets

54,246

(1,505

)

Accounts payable

39,698

(29,881

)

Accrued liabilities

(20,310

)

(230,124

)

Deferred revenue/contract liabilities

375,070

(257,879

)

Lease liabilities

(173,627

)

(176,293

)

Net cash used in operating activities

(425,045

)

(1,683,217

)

Cash flow from investing activities:

Purchases of equipment

(9,456

)

(7,030

)

Net cash used in investing activities

(9,456

)

(7,030

)

Cash flows provided by financing activities:

Cash provided by financing activities

-

-

Net change in cash and cash equivalents

(434,501

)

(1,690,247

)

Cash and cash equivalents, beginning of year

1,848,295

5,619,083

Cash and cash equivalents, end of period

$

1,413,794

$

3,928,836

Non-cash Investing and Financing activities:

Issuance of common stock for satisfaction of contingent liability

$

-

$

127,145

Issuance of common stock for non cash performance bonus

$

-

$

127,145

Lease liabilities arising from right-of-use assets

$

-

$

113,182

Common stock subscription receivable

$

-

$

2,984,001

The following table presents a reconciliation of net loss to Adjusted EBITDA for the three months ended September 30, 2024 and 2023 (in $ million):

For the Three Months Ended

September 30,

2024

2023

(in millions)

Net loss

$

(1.02

)

$

(0.12

)

Depreciation and amortization

0.16

0.40

EBITDA income (loss)

(0.86

)

0.28

Stock based compensation and vendor expenses

0.37

0.69

Change in fair value of acquisition contingent consideration

0.03

(2.76

)

Change in fair value of accrued performance bonus

-

(0.39

)

Intangible asset impairment

-

0.89

Adjusted EBITDA loss

$

(0.46

)

$

(1.29

)

SOURCE: The Glimpse Group, Inc.



View the original press release on accesswire.com

FAQ

What was VRAR's Q1 FY25 revenue and how did it compare to previous quarters?

VRAR reported Q1 FY25 revenue of $2.44M, showing a 44% increase from Q4 FY24's $1.7M but a 21% decrease from Q1 FY24's $3.1M.

What is VRAR's revenue guidance for FY25?

VRAR expects FY25 revenue to be in the $11-12M range, representing a 25-35% increase from FY24's $8.8M.

How did VRAR's QReal divestiture impact the company?

The QReal divestiture is expected to create $4M in net cash value over two years, save $1.2-1.5M annually in expenses, and reduce workforce by 60 employees while maintaining projected revenues.

What was VRAR's gross margin in Q1 FY25?

VRAR's gross margin for Q1 FY25 was 79%, up from 62% in Q1 FY24, driven by increased Spatial Core revenues and higher software license revenues.

The Glimpse Group, Inc.

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