XMReality AB (publ), Year-end Report 2019

Order intake and billing in 2019 for software-as-a-service subscriptions (SaaS), which are now the company’s dominant source of revenue, increased by 86 percent and correspond to 96 (70) percent of XM Reality’s total order intake and billing. The gross margin rose to 93 (82) percent for the full year and 95 (83) percent in the fourth quarter. The company now has XMReality Remote Guidance subscription agreements with 55 customers.

The quarter: October–December 2019

• Net sales amounted to SEK 3,222 thousand (3,250).
• Costs totaled SEK -12,374 thousand (-13,124).
• The operating loss before appropriations was SEK -7,676 thousand (-8,337).
• Net cash used in the period was SEK -8,414, (13,781) and the equity/assets ratio at the end of the period was 61.8 percent (80.2).

The fourth quarter ended the year with order intake up by 35 percent compared to the same period in 2018. Subscription order intake corresponded to 96 (70) percent of total order intake and was a mix of automated renewals of previous subscription agreements and new subscription agreements. Growth in the revenue share of subscriptions also had positive impact on the gross margin, which increased to 95 (70) percent.

Full year 2019

• Net sales amounted to SEK 11,921 thousand (10,155).
• Costs totaled SEK -45,001 thousand (-45,949).
• The operating loss before appropriations was SEK -27,364 thousand (-29,317).
• Net cash used amounted to SEK -28,451 thousand (-8,443)

Total order intake increased by 24 percent compared to the preceding year. The gross margin improved to 93 percent (82), as an effect of increasing the share of subscription sales.

The company’s subscription sales are billed when orders are received, but are recognized in revenue monthly in arrears. As subscriptions cover a forward-looking period of 12 months, the company allocates subscription revenues across 12 months on a straight-line basis. The effect of orders received on profit and loss is therefore limited during the billing period.

There is a positive effect on cash flow in connection with orders/billing. Invoiced order intake, which had not yet been recognized in revenue at the end of the period, increased by 71 percent to SEK 6,897 thousand (4,035). Hardware sales are recognized in revenue when the goods are delivered.

Significant events during the quarter, October–December 2019

• World-leading packaging group Sidel signed a global agreement with XMReality.
• The new CEO of XMReality was appointed and will take over in spring 2020.

Significant events after the end of the quarter

• XMReality is executing a fully guaranteed rights issue of SEK 35.8 million

For more information, please contact:
Johan Castevall, CEO XMReality
Phone: +46 (0)73 356 04 81
E-mail: johan.castevall@xmreality.se
 

About XMReality AB

XMReality AB (publ) develops and sells solutions that revolutionizes knowledge sharing through augmented reality (AR). The company is a market leader in remote guidance, which uses AR to guide onsite staff and enable them to resolve or prevent problems. XMReality’s customers are mainly global industrial companies, including ABB, Siemens Industrial Turbomachinery, Electrolux and Bombardier. XMReality is headquartered in Linköping, Sweden, and is listed on Nasdaq First North Growth Market (ticker: XMR). For more information visit www.xmreality.com

XMReality's Certified Adviser is Redeye AB
Certifiedadviser@redeye.se 
+46 (0)8 121 576 90
www.redeye.se 

The information was released by the aforementioned contact person for publication on Friday, 7 February 2020 at 8:30 CET.