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From Google to New Platforms, this AR Company Paved a Path to Success in 2021

Stockhouse Editorial
3 Comments| November 1, 2021

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(Images via Nextech AR Solutions.)
Click to enlarge
A leader in the rapidly growing augmented reality (AR) industry, Nextech AR Solutions (CSE: NTAR, Forum) is the first publicly traded “pure-play” AR company trading on the CSE. Through a combination of an ecommerce business alongside its omni-channel AR software-as-a-service (SaaS) platforms, the company is working with some of the biggest brands and companies on the market.

In an autumn 2021 update, the company explained that with increasing attention from big tech, media, and investors around the rapidly emerging AR industry, the opportunity is greater than ever.

Nextech AR is deploying strategic initiatives to maintain and advance its leadership within this new frontier and capture market share with its entire suite of increasingly interconnected products.

The provider of AR experience technologies and services is in the midst of an important period of growth and transition, but before that, it is important to get up to speed on what has been brewing at its Toronto headquarters ….


H1 2021 recap:

The company released its Q2 2021 financial results, highlighting a 130% increase in revenue to $13.8 million for the six months ending June 30th, 2021, as compared to the same six months period last year, while gross profit increased 59% to $5.6 million over the same period.

  • Revenue for the three months ended June 30th, 2021, was $6.1 million (CAD) an increase of over 73% compared to the three months ended June 30th, 2020, of $3.5 million (CAD);
  • Gross profit for the three months ended June 30th, 2021, was $2.3 million (CAD) an increase of over 6% compared to the three months ended June 30th, 2020, of $2.2 million(CAD);
  • Nextech cash on hand as of June 30th, 2021, was $15.4 million (CAD);

The company also acquired 100% of the shares of Threedy.ai Inc. in June 2021. This is an AI-based end-to-end platform used to produce 3D augmented reality models, accelerating Nextech’s delivery time to customers – in an all-stock transaction valued at $9,500,000 (USD).

On August 26th, Nextech AR finalized its acquisition of ARway Ltd. in an all stock transition. With this acquisition, Nextech AR gained a spatial mapping platform critical to building “mini-metaverses”, which the team believes is a market opportunity as big as the metaverse, a virtual-reality (VR) space where people can interact with each other, as well as the computer-generated environment.


The metaverse:

Following the ARway acquisition, Nextech AR laid an important new foundation necessary to merge its AR solutions with the metaverse. Nextech AR introduced its “mini-metaverse” at Harmony at London Wall Place in London, England.

Using ARway’s spatial computer mapping and artificial intelligence (AI), Nextech’s customers can create accurate, location-based 3D mapping, critical to building the metaverse. Harmony at London Wall Place incorporates location-anchored augmented reality artworks with visuals and music from the Guildhall School of Music & Drama and the London Symphony Orchestra. With the creation of this mini-metaverse, the creative energy of the City is celebrated as users are able to virtually explore and interact with augmented reality artworks within the location.


Self-service software:

Nextech made its AR for ecommerce available as a self-service SaaS offering in early October 2021.

In a move to democratize augmented reality for large and small ecommerce businesses alike, the company believes that this will be the first true self-service AR SaaS platform which will be affordable for all ecommerce sites.

Driving the mass adoption of AR for ecommerce is the consumers’ ability to “try before they buy” and this platform visualization gives that experience. The AR shopping experience is tailored to customers, allowing them to visualize a product in a personalized environment.

From a news release, the company called this a significant milestone and added that some of the world’s largest retailers, including Pier1 and K-Mart Australia, are already using its technology.

The provider of AR experience technologies and services recently made news on the expansion of its partnership with Kohls Corporation (NYSE: KSS, Forum), one of the largest department store chains in the United States.

SaaS and self-service integration with Nextech’s product line could have immense implications for the scalability of the company’s product suite, not to mention its future revenue growth. Nextech intends to move away from managed solutions with SaaS and head toward monthly recurring revenue (MRR), business scalability, and low to no touch. The team noted that this had already begun and currently has more than 30 accounts and growing contracts for $2 million (CAD) in annual contracts representing about $150,000 (CAD) in MRR across its platforms.

3D Rooms for ecommerce:

Click to enlargeNextech also recently launched 3D Rooms, an enhancement to its AR suite for ecommerce. This transformative technology creates 3D models at scale by using machine learning and artificial intelligence.

Customers using 3D Rooms can virtually preview home furnishing and décor using a simple 2D photo of a room. The technology uses Nextech’s AI to analyze the room’s layout and reconstruct the scene, allowing 3D objects to be placed seamlessly inside the 2D photo. The new solution is now being offered both as a stand-alone product or as an add-on to Nextech’s WebAR offering and integrated seamlessly into the Nextech AR platform.

Nima Sarshar, CTO of Nextech AR, explained the product’s functionality and the benefits it will bring to Nextech customers.

“3D Rooms opens up a whole new avenue for bridging the on-line and off-line purchasing gap,” said Mr. Sarshar. “With 3D Rooms, you can visualize a product in store inside an actual photo of your room and be able to explore options such as color and patterns.”

Recently, Lighting Plus, the largest specialty lighting store in New Zealand, signed a 12-month contract to use 3D Rooms. Nextech AR will now convert more than 300 of Lighting Plus’ best-selling SKUs to augmented reality models, enabling the retailer’s customers to visualize multiple lighting products in a 3D space.

Looking ahead:

The long-term strategic initiatives driving Nextech AR are focused on advancing and garnering greater industry leadership in the AR space.

The company noted that while the attention around the virtual events space in 2020 during the COVID-19 pandemic had given AR and its operations “a welcome tailwind”, the team pointed out that they had not considered this “thematic boost” to its business to be permanent, always keeping their sights on “a bigger prize”.

The AR wave is driven by big tech and is here to stay, likely for decades, generating multi billions of dollars.

Big tech is building the AR ecosystem that Nextech eats and breathes in, this team feels strongly that its realization of market share capture within this burgeoning new industry is at its fingertips.


The opportunity:

Mass adoption of AR is merely in its nascent stage. With platforms such as its 3D Rooms, Nextech AR is executing on this vision and will continue to develop and add AR offerings.

Further underscoring the breadth of the market opportunity, the company announced its early access partnership with Google (NASDAQ: GOOG, Forum) for their 3D AR Search Program. Google processes more than 3.5 billion searches a day and 1.2 trillion searches a year worldwide.

Nextech AR is building solutions that connect its customers to billions of people around the world. Google’s platform is now turning more towards indexing higher in search 3D assets which puts a huge tailwind behind anything that is on the web in 3D.

The team leading Nextech AR Solutions believes that they possess the only platform that can meet the enormous global demand that is coming for 3D product conversions from 2D to gain better search results on Google.

Nextech AR is in the early stages of an important period of growth and transition of its AR business, with a clear vision to build a unified platform containing a suite of augmented reality solutions.

For more on what is going on with the company, visit nextechar.com.




FULL DISCLOSURE: This is a paid article produced by Stockhouse Publishing.



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