TIDMEXR
RNS Number : 2946J
Engage XR Holdings PLC
12 December 2022
12 December 2022
ENGAGE XR Holdings Plc
("ENGAGE XR" or the "Group")
Trading Update
ENGAGE XR Holdings Plc (AIM: EXR; Euronext Growth: EXR), a
leading metaverse technology company, has today issued an update on
trading for the 12 months ending 31 December 2022.
As reported at the Group's interim results in September, ENGAGE
XR expected a positive end to the second half of the financial year
due to the strength of its new business pipeline and the new
services coming on stream following the launch of its fully
featured corporate metaverse, ENGAGE Link in November. The Group
increased its sales, marketing, and support teams to handle this
expected demand.
Whilst performance over the full year has been positive with
good growth in ENGAGE revenues there has been a slower than
expected conversion of the Group's pipeline at the end of the
second half of the year as customers have delayed making contract
decisions in these challenging global economic conditions.
While interest remains strong in ENGAGE, the Board expects that
the Group will be behind current market consensus expectations for
2022 in terms of revenue and EBITDA loss. The Board currently
expects to report Group revenues for the year to 31 December 2022
of between EUR3.5m and EUR4.0m with an EBITDA loss of between
EUR5.6m and EUR5.9m reflecting the increased headcount in the
Group. ENGAGE revenues are expected to have increased by at least
70% year on year and now represent approximately 86% of the Group's
revenues.
The Group expects the net cash position to be approximately
EUR1.9 million as at 31 December 2022 (2021: EUR7.8m). The Board is
evaluating the options available to it to eliminate discretionary
spending and deliver cost savings while ensuring that the Group
remains well-positioned to capitalise on the encouraging pipeline
of opportunities for FY2023.
The Group will provide a further trading update in January 2023
following the end of the financial year to 31 December 2022.
David Whelan, CEO, ENGAGE XR, said: "ENGAGE platform revenues
for 2022 have grown in excess of 70%. They continue to grow but at
a slower rate than originally projected for the final quarter of
this year. Our products are highly sought after by some of the
world's leading companies, including KPMG, KIA, HTC, Meta and
Stanford University to name but a few. However, the purchasing
cycle has lengthened significantly during the final quarter of the
year.
"While we are taking steps to cut costs and preserve our balance
sheet, we are pleased our pipeline remains encouraging. This
together with the positive response to the launch of ENGAGE Link,
gives us optimism in the long-term prospects of the Group.
"We have been focused on building world-leading partnerships
with companies and organisations rather than closing multiple
smaller short-term deals during 2022. This focus on larger-scale
opportunities that have taken longer to close has caused us to miss
our overall revenue target for this year.
"The Group is currently working with 22 Fortune 500 companies
and has a robust and growing pipeline already in place for 2023.
The Board remains confident about the Group's growth opportunities
in the next year and beyond. This confidence is based on our ENGAGE
platform revenues growing in excess of 70% during 2022 and our
average deal size increasing more than 17% year on year. Despite
the unique cost pressures this year, we have built a product that
is selling, and our business model is working.
"Our ambition remains to become the enterprise platform of
choice for metaverse applications, and we have seen increasing
revenue from many of our current clients year on year. It is still
early days however the core idea and functionality of our platform
is starting to shine through, and we remain confident in our
ability to deliver long term shareholder value."
Richard Cooper, Chairman, ENGAGE XR, said: " The Board remains
highly supportive of the executive management team after their
successes this year, and we back the difficult but appropriate
actions to trim the cost base."
This announcement contains inside information for the purposes
of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it
forms part of UK domestic law by virtue of the European Union
(Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with
the company's obligations under Article 17 of MAR.
For further information, please contact:
ENGAGE XR Holdings Plc Tel: +353 87 665
David Whelan, CEO 6708
Séamus Larrissey, CFO info@engagexr.co
Sandra Whelan, COO
finnCap Ltd (Nominated Adviser & Tel: +44 (0) 20
Joint Broker) 7220 0500
Marc Milmo/ Seamus Fricker (Corporate
Finance)
Sunila de Silva / Harriet Ward (ECM)
Shard Capital Partners LLP (Joint Tel: +44 (0) 20
Broker) 7186 9952
Damon Heath / Erik Woolgar
Davy (Joint Broker & Euronext Growth Tel: +353 1 679
Listing Sponsor) 6363
Barry Murphy / Lauren O'Sullivan
/ Oisin Morgan
SEC Newgate (Financial Communications) Tel: +44 (0)7540
Robin Tozer / Isabelle Smurfit 106 366
engage@secnewgate.co.uk
About ENGAGE XR
ENGAGE XR Holdings plc (AIM: EXR; Euronext Growth: EXR) is
metaverse technology company focused on becoming a leading global
provider of virtual communications solutions through its new fully
featured corporate metaverse, ENGAGE Link.
The Company also has a proprietary software platform, ENGAGE.
ENGAGE provides users with a platform for creating, sharing, and
delivering VR content for education, training, and online events
through its three solutions: Virtual Campus, Virtual Office, and
Virtual Events.
EXR is listed on AIM in London and on the Euronext Growth Market
in Dublin, a market operated by Euronext Dublin.
For further information, please visit: www.engagexrholdings.com
(LinkedIn: @Engage XR Holdings plc Twitter: @engage_xr)
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END
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