(Alliance News) - VR Education Holdings PLC on Friday said it expects to report higher annual revenue after considerable growth from its Engage online virtual communications platform.
Shares in VR Education were up 10% at 13.25 pence in London on Friday morning.
The Waterford, Ireland-based virtual reality education and enterprise training provider expects to report 2020 revenue of around EUR1.4 million, a 40% increase from EUR1.0 million the year before, with Engage revenue more than six times higher.
This followed considerably growth from Engage, which now accounts for over 40% of group revenue compared to just 9% in 2019.
Revenue from VR Education's Showcase Experience business was EUR400,000 below expectations, mostly as a result of Covid-related museum closures in the US.
As at 2020 end, VR Education had EUR2.0 million of cash and a net monthly cash burn of around EUR200,000.
The company set out its medium-term targets, which cover 2023 to 2025, aiming to reach EUR10 million of annual Engage revenue, 500 active Enterprise customers, and 100,000 monthly users. It will target a group gross margin of more than 80%.
Additionally, the company expects to generate the first revenue from deployment of its Engage platform on the Chinese mainland as part of a collaboration with HTC.
"The group is focused on identifying further strategic partnerships to support the business' further growth and expansion. Engage is now available on many platforms across the globe, opening up significant opportunities where previously sales were limited to a small but growing marketplace," said VR Education.
Chief Executive David Whelan said: "Our projections are modest based on past experience, however, we do feel that growth can expand greatly given the trajectory for immersive technology adoption over the past twelve months. We see Engage filling the gap where popular video-based communication apps are not meeting customer expectations for large group meetings, events and conferences. Engage is now no longer marketed solely as an education and training platform. We see Engage as the next step in corporate communications and remote conferencing."
By Anna Farley; annafarley@alliancenews.com
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