Glimpse Group Inc (VRAR) 2024 Q3 法說會逐字稿

Welcome to The Glimpse Group Quarter 3 Fiscal Year 2024 Financial Results Webinar. (Operator Instructions) As a reminder, this conference is being recorded. The earnings release that accompanies this call is available on the Investors section of the company's website at https://ir.theglimpsegroup.com/.

歡迎參加 The Glimpse Group 2024 財政年度第三季財務業績網路研討會。 （操作員指示）謹此提醒，本次會議正在錄製中。本次電話會議附帶的收益發布可在公司網站的投資者部分取得：https://ir.theglimpsegroup.com/。

Before we begin the formal presentation, I'd like to remind everyone that the statements made on today's call and webcast include those regarding future financial results and industry prospects are forward-looking and may be subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the call. Please refer to the company's regulatory filings for a list of associated risks, and we would also refer you to the company's website for more supporting industry information.

在我們開始正式演講之前，我想提醒大家，今天的電話會議和網路廣播中所做的陳述包括有關未來財務業績和行業前景的陳述，這些陳述都是前瞻性的，可能會受到許多風險和不確定性的影響，這些風險和不確定性可能會導致實際結果與電話中描述的結果有重大差異。請參閱該公司的監管文件以獲取相關風險列表，我們也會建議您訪問該公司的網站以獲取更多支援行業資訊。

I would now like to hand the call over to Lyron Bentovim, President and CEO of The Glimpse Group. Lyron, the floor is ours.

現在我想將電話轉交給 The Glimpse Group 總裁兼執行長 Lyron Bentovim。萊倫，地板是我們的。

Thank you, Kat, and thank you, everyone, for joining us. I am pleased to welcome you to The Glimpse Group's Third Quarter Fiscal Year 2024 Financial Results Investor Call for our quarter ended March 31, 2024.

謝謝你，凱特，也謝謝大家加入我們。我很高興歡迎您參加 Glimpse Group 截至 2024 年 3 月 31 日的季度的 2024 年第三季財務業績投資者電話會議。

During this quarter, we've made concrete intangible strides that validate our strategic transition to focus on providing enterprise scale, spatial computing, cloud and AI-driven immersive recurring software solutions or Spatial Core, as we refer to it internally, led by our subsidiary company Brightline Interactive. We announced today that Brightline Interactive entered into a $4 million-plus 12-month contract with the Department of Defense, DoD entity, for a spatial computing ecosystem, integrating AI workflow, and accelerated compute for a variety of defense use cases.

在本季度，我們取得了具體的無形進展，驗證了我們的策略轉型，專注於提供企業規模、空間運算、雲端和人工智慧驅動的沉浸式循環軟體解決方案或空間核心，正如我們在內部所提到的，由我們的子公司領導Brightline Interactive 公司。我們今天宣布，Brightline Interactive 與國防部實體簽訂了一份價值超過 400 萬美元、為期 12 個月的合同，涉及空間計算生態系統、集成人工智能工作流程以及針對各種國防用例的加速計算。

The ecosystem will empower users to combine massive data sets and perform complex calculations to analyze and process spatial data in order to derive insights, make predictions and perform calculations on one-for-one digital twins addressing challenges in infrastructure, maintenance, operations, training and simulations.

該生態系統將使用戶能夠組合海量數據集並執行複雜的計算來分析和處理空間數據，以便在一對一的數位孿生上獲得見解、做出預測和執行計算，從而解決基礎設施、維護、運營、訓練和訓練方面的挑戰。

In parallel, we are in the process of securing several additional multimillion dollar Spatial Core contracts with multiple government, Department of Defense and large enterprise customers. The shorter-term aggregate value of these contracts is in the $8 million to $12 million range. While there is no guarantee that some or all of these will come to fruition. We anticipate that a good portion of these will close before calendar year-end 2024 with additional potential in the pipeline for calendar year 2025.

同時，我們正在與多個政府、國防部和大型企業客戶簽訂額外的數百萬美元的 Spatial Core 合約。這些合約的短期總價值在 800 萬至 1200 萬美元之間。雖然不能保證其中部分或全部將會實現。我們預計其中很大一部分將在 2024 年底前完成，並在 2025 年有更多潛力。

Each one of these potential contracts has significant growth elements built into them that could lead to significant annual recurring software revenue after the initial engagement. We believe that spatial computing represents a transformative leap forward in how enterprises interact with the digital world, seamlessly integrating it with their physical surroundings. For example, this immersive technology enable us to create comprehensive digital twins that not only mirror complex real-world environment, one-to-one, but also enhance our ability to interact, analyze and make informed decisions with potentially transformative applications across industries including industrial, military, public sector, infrastructure, training, simulations, robotic and many others.

這些潛在合約中的每一份都內建了重要的成長元素，可能會在初次參與後帶來可觀的年度經常性軟體收入。我們相信，空間運算代表了企業與數位世界互動方式的變革性飛躍，將其與實體環境無縫整合。例如，這種沉浸式技術使我們能夠創建全面的數位孿生，它不僅能夠一對一地反映複雜的現實世界環境，而且還能增強我們與跨行業（包括工業）潛在變革性應用進行互動、分析和做出明智決策的能力。

As discussed previously, we are working closely with some of the largest players in the tech industry such as NVIDIA and Microsoft as well as with some of the leading hardware players in the space. We serve as an essential and innovative middleware, connecting their cloud and AI technologies and services with the needs of enterprises and organizations to facilitate immersive solutions and use cases at large scale.

如前所述，我們正在與 NVIDIA 和 Microsoft 等科技行業的一些最大的參與者以及該領域的一些領先的硬體參與者密切合作。我們作為一個重要的創新中間件，將他們的雲端和人工智慧技術和服務與企業和組織的需求連接起來，以促進大規模的沉浸式解決方案和用例。

To illustrate last week, our subsidiary Brightline Interactive together with Cesium and NVIDIA teamed at geospatial intelligence, GEOINT Symposium 2024 to introduce Brightline Spatial Core, which uses AI workflows or complex computation on top of realized data sets enabling powerful real-time massive, data-driven digital twin and simulation applications.

上週，我們的子公司Brightline Interactive 與Cesium 和NVIDIA 合作，在地理空間智慧GEOINT Symposium 2024 上推出了Brightline Spatial Core，該核心在已實現的資料集之上使用AI 工作流程或複雜計算，從而實現強大的即時海量數據 -驅動的數位孿生和類比應用程式。

As we discussed in our last call, we expected our strategic transition to result in short-term reduction in revenue as we divested and shut down noncore operating assets, while we reduced our expenses, targeting other noncore opportunities.

正如我們在上次電話會議中討論的那樣，我們預計我們的策略轉型將導致收入短期減少，因為我們剝離並關閉了非核心營運資產，同時我們減少了開支，瞄準了其他非核心機會。

Our other subsidiary companies, QReal, Sector 5 Digital, Foretell Reality, and Glimpse Learning continue to generate meaningful enterprise revenues, including recently from Snap, NHL, Galderma, Halliburton, and many others. And our cash flow usual to positive from their internal operations.

我們的其他子公司 QReal、Sector 5 Digital、Foretell Reality 和 Glimpse Learning 繼續創造可觀的企業收入，包括最近來自 Snap、NHL、Galderma、Halliburton 等的公司。我們的現金流通常來自於他們的內部營運。

Looking forward, we expect revenues to be generally flat to up in the coming 2 quarters as we finalize our divestiture plans. And then we expect revenues to grow significantly in Q4 calendar year 2024 and continue to grow into 2025 as we start recognizing the revenues from the DoD entity contracts we've recently signed and the others we expect to follow. As Maydan will detail in his prepared remarks, given the developmental details we are positioned to reach cash flow profitability in the coming months.

展望未來，隨著我們最終確定剝離計劃，我們預計未來兩個季度的收入將基本持平或上升。然後，隨著我們開始認識到我們最近簽署的國防部實體合約和我們預計將遵循的其他實體合約的收入，我們預計 2024 年第四季的收入將大幅增長，並持續增長到 2025 年。正如梅丹將在他準備好的演講中詳細介紹的那樣，考慮到發展細節，我們將在未來幾個月內實現現金流盈利。

With that, I will now turn it over to Maydan Rothblum, Glimpse's CFO and COO, to review the financial results. Maydan?

現在，我將把它交給 Glimpse 的財務長兼營運長 Maydan Rothblum 來審查財務表現。邁丹？

Thanks, Lyron. I will limit my portion to a summary review of our financial results. A full breakdown is available in our 10-Q and press release that were filed after market close today. Please note that I'll refer to adjusted EBITDA and other non-GAAP measures. For calculation of adjusted EBITDA and other non-GAAP measures, please refer to the MD&A section of our 10-Q filing, which you can find on our website under SEC filings.

謝謝，萊倫。我將限制我的部分對我們的財務表現進行總結審查。我們在今天收盤後提交的 10 季報告和新聞稿中提供了完整的詳細資訊。請注意，我將提及調整後的 EBITDA 和其他非 GAAP 指標。有關調整後 EBITDA 和其他非 GAAP 指標的計算，請參閱我們 10-Q 備案文件中的 MD&A 部分，您可以在我們網站上的 SEC 文件下找到該部分。

Revenue for Q3 fiscal year '24 was approximately $1.9 million compared to approximately $3.67 million for Q3 fiscal year '24, a decrease of approximately 48%. Revenue for the 9 months ended March 31, 2024, was approximately $7.1 million compared to approximately $10.6 million for the 9 months ended March 31, 2023, a decrease of 33%. The decrease for both period reflects our strategic shift to spatial computing, cloud, and AI-driven immersive software solutions which has resulted in a turnover in our historical customer base and the divestiture of non-significant -- non-strategic assets. Gross margin for Q3 fiscal year '24 was approximately 70% compared to 67% for Q3 fiscal year '23. We expect our gross margins to continue to remain in the 65% to 75% range.

24財年第三季的營收約為190萬美元，而24財年第三季的營收約為367萬美元，下降了約48%。截至2024年3月31日的9個月的收入約為710萬美元，而截至2023年3月31日的9個月的收入約為1060萬美元，下降了33%。這兩個時期的下降反映了我們向空間運算、雲端和人工智慧驅動的沉浸式軟體解決方案的策略轉變，這導致了我們歷史客戶群的流失以及非重大非戰略資產的剝離。 '24 財年第三季的毛利率約為 70%，而'23 財年第三季的毛利率為 67%。我們預計我們的毛利率將繼續保持在 65% 至 75% 的範圍內。

As previously discussed, we have made significant reductions in our operating cash expense base as reflected by a 62% reduction in our operating expenses this quarter compared to the same quarter of last year. Our operational cash breakeven point is now at approximately $3 million revenue per quarter or $12 million revenue annually. Adjusted EBITDA loss for Q3 fiscal year '24 was approximately $0.89 million compared to an EBITDA loss of approximately $1.13 million in Q3 fiscal year '23. Theoretically applying Q3 fiscal year '23 revenue which we believe is achievable again, would have resulted in a solidly cash flow positive quarter -- this quarter.

如前所述，我們大幅削減了營運現金支出基礎，本季營運支出與去年同期相比減少了 62%。目前，我們的營運現金損益平衡點約為每季 300 萬美元收入或每年 1,200 萬美元收入。 24財年第三季調整後的 EBITDA 損失約為 89 萬美元，而 23 財年第三季的 EBITDA 損失約為 113 萬美元。理論上，應用我們認為可以再次實現的 23 財年第三季收入，本季將帶來穩定的正現金流。

Given our current level of revenues and subject to the signing of some of the contracts, Lyron mentioned, we expect to be cash flow positive from our operations commencing in September 2024 and onwards. In such a scenario, and given our current cash balance, we expect to be self-sufficient without needing any external fundings.

Lyron 表示，鑑於我們目前的收入水平，並且根據部分合約的簽署，我們預計從 2024 年 9 月及以後開始的營運將產生正現金流。在這種情況下，考慮到我們目前的現金餘額，我們預計能夠自給自足，而不需要任何外部資金。

As of March 31, 2024, the company has cash and cash equivalents of approximately $4.3 million. Company has no outstanding corporate debt or preferred equity obligations.

截至2024年3月31日，該公司擁有現金及現金等價物約430萬美元。公司沒有未償還的公司債務或優先股義務。

And now I'd like to pass it back to Lyron for some closing remarks, after which we will begin our Q&A session.

現在我想把它傳回 Lyron，讓其做一些結束語，之後我們將開始問答環節。

Thank you, Maydan. Over the last couple of quarters, we have executed on the strategic transition plan we've outlined. This morning, we reap the first fruit of this execution. Over the coming months, we expect to make additional strong progress on our Spatial Core initiative and see significant progress, which we hope to publicly share with you.

謝謝你，梅丹。在過去的幾個季度中，我們已經執行了我們概述的策略過渡計劃。今天早上，我們收穫了這次處決的第一個成果。在接下來的幾個月中，我們預計我們的空間核心計劃將取得進一步的強勁進展，並看到重大進展，我們希望與您公開分享。

I thank you all for your interest and support of The Glimpse Group. And now I'll turn the call back over to the operator to take some questions. Kat?

感謝大家對 The Glimpse Group 的關注與支持。現在我將把電話轉回給接線員回答一些問題。吉？

(Operator Instructions) At this time, I'd like to turn the call back to management for closing remarks.

（操作員指示）此時，我想將電話轉回給管理階層，讓其結束語。

I would like to thank each of you for joining our earnings conference call. We look forward to continuing to update you on our ongoing progress and growth. If we were unable to answer any of your questions, please reach out to us directly. Thank you, and have a great afternoon.

我要感謝大家參加我們的收益電話會議。我們期待繼續向您通報我們不斷的進展和成長。如果我們無法回答您的任何問題，請直接與我們聯絡。謝謝您，祝您下午愉快。

Thank you. This does conclude today's webinar. Thank you for your participation, and have a wonderful day.

謝謝。今天的網路研討會到此結束。感謝您的參與，祝您有美好的一天。