reports
- Richard Williamson
Vection Technologies - Moving from niche to mainstream markets
Vection’s Q324 update showed strong double-digit growth in revenue and cash receipts, driven by multiple contract wins, including its largest contract to date with an existing defence customer. A swing to positive operating cash flow in Q3 (A$4.1m), coupled with contract wins, validates the company’s streamlined sales structure, designed to bolster operational efficiency. Cash generated also supported a quarter-on-quarter reduction in debt. Management is seeing early positive signs by enhancing ...
- Richard Williamson
Vection Technologies - Contract wins underpin strong start to H224
Vection Technologies secured multiple contracts in February, generating total contract value (TCV) of A$5.8m, with management expecting to recognise the associated revenue and cash across H224. Year to date, the group has delivered more than A$22.5m in TCV, c 80% of FY23 TCV, underpinning growth momentum in FY24. The most substantial contract, valued at A$4.9m, was won with an existing customer in the defence sector, Vection's second-largest vertical, showing that management is delivering on its...
- Richard Williamson
Vection Technologies - Record half and strong H2 visibility
Vection Technologies’ H124 activity report shows sustained momentum, with the group delivering 37% y-o-y revenue growth to A$11.9m. Total contract value (TCV) of A$16.7m was up 67% y-o-y, providing strong revenue visibility for the rest of FY24. As with Q1, we believe growth has been driven by the expansion of existing low-margin, one-off transactions into large multi-year deals. Expanding deals, rather than relying on new wins, underpin the opportunity for operationally geared growth, with mana...
- Richard Williamson
Vection Technologies - Established strategy to drive scalable growth
Vection Technologies’ Q124 and AGM update shows continued top-line momentum driven by an established partner strategy. Now embedded with leading players across diverse verticals, management sees an opportunity to convert low-margin, one-off transactions into large, multi-year contracts in FY24. Expanding use cases and commercialisation is driving rapid market growth, underpinning secular tailwinds. To bolster its outlook, the company introduced several efficiency measures in the period, which it...
- Richard Williamson
Vection Technologies - Delivering on ambitious targets
Vection Technologies reported rapid contract growth in its Q423 update, driven by upsells, new contract wins and progress with its potential A$30m defence tender. The ability to integrate AI software, like ChatGPT, and Apple’s entry into the market underpins the rising commercial value of extended reality software. This is translating into increased demand across a range of verticals, where management is aiming to solidify its market position through M&A, alongside developments to its Integrated...
- Richard Williamson
Vection Technologies - Apple and AI integrations plus latest acquisiti...
Vection Technologies (VR1) recently announced that its ChatGPT-powered mixed reality solution, 3D Frame, will now be available on Apple’s macOS. The release further highlights the interoperability of VR1’s technology with global powerhouses in the virtual (VR) and augmented (AR) reality space, positioning it well to capitalise on the latest breakthrough advancements, such as Apple’s Vision Pro AR headset. 3D Frame’s cross-platform compatibility with Windows and macOS should ensure wider availabi...
- Richard Williamson
Vection Technologies - Integrating with ChatGPT to enable intelligent ...
Vection Technologies recently announced the integration of ChatGPT into its flagship product, 3D Frame, enabling the creation of an artificial intelligence (AI) assistant within three dimensional (3D) and virtual reality (VR) environments. We believe this is a good example of an enterprise quickly integrating third-party AI to deliver a significant enhancement to its existing products within a timescale (and budget) that was unimaginable 12 months ago.
- Richard Williamson
Vection Technologies - Poised to reach guidance after a strong quarter
Vection Technologies’ Q323 activities report confirms that contract growth continued to accelerate in H223, with the company reporting 100% total contract value (TCV) growth from the end of January to 28 April. The momentum in TCV growth indicates that management is well-positioned to deliver the triple-digit half-on-half top-line growth required to reach its FY23 expectations. Cash receipts on a quarterly and nine-month basis increased year-on-year. Vection Technologies’ balance sheet is set to...
- Richard Williamson
Vection Technologies - Rapid H2 growth de-risks ambitious FY23 target
Vection Technologies reported a 60% uplift in its total contract value (TCV) to A$16m from the TCV metric announced at the half year, driven by new contract wins, upsells from existing clients and recognising delayed contracts from Q223. Delivering rapid contract growth in H223 instils further confidence in management’s FY23 revenue guidance of A$24–26m for its IntegratedXR technology stack, reflected in the 9% rise in share price following the announcement. As illustrated by our previous note, ...
- Richard Williamson
Vection Technologies - Bringing the unimaginable into digital reality
While commercial delays have affected Vection Technologies’ H123 financial performance, lead indicators are encouraging, underpinning management’s reiterated guidance of FY23 IntegratedXR revenue growth of 45% y-o-y using the midpoint of its A$24–26m range. According to the company, the majority of these commercial delays have now been resolved, supporting the 50% q o q uplift in total contract value (TCV) in Q3 (to 22 March). Also in Q3, the company started several pilot projects, most notably ...
- Richard Williamson
Vection Technologies - Space travel in the metaverse
Vection Technologies (VR1) reported A$4.6m in Q223 receipts, up A$0.2m q-o-q. Recent announcements of the company’s selection to develop virtual reality (VR) and metaverse technologies to promote space travel underpin the vital role partnerships play in the company’s strategy. VR1 also reported progress in commercial opportunities in defence, aerospace and service agencies, among others, all expected to bear fruit in the latter half of the current fiscal year. As such, management reiterated its ...
Vection Technologies (VR1): Enterprise-grade metaverse
Edison Investment Research Limited Vection Technologies (VR1): Enterprise-grade metaverse 29-Nov-2022 / 14:18 GMT/BST London, UK, 29 November 2022 Vection Technologies (VR1): Enterprise-grade metaverse Vection Technologies (ASX:VR1) is an Australia-based company that operates in the field of extended reality (XR). Through its immersive solutions suite, IntegratedXR, Vection Technologies provides the foundation that clients need to engage with the metaverse, and focuses on completely integrating client systems, operations and technologies. We see the company building on its r...
- Richard Williamson
Vection Technologies - Enterprise-grade metaverse
Vection Technologies (ASX:VR1) is an Australia-based company that operates in the field of extended reality (XR). Through its immersive solutions suite, IntegratedXR, Vection Technologies provides the foundation that clients need to engage with the metaverse, and focuses on completely integrating client systems, operations and technologies. We see the company building on its recent growth (FY22 revenue up more than 440% over FY21) and growing FY23 sales to A$26.1m, driven by Vection Technologies...
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