VR1
Vection Technologies LTD
ASX
Quarterly Activities/Appendix 4C Cash Flow Report
Sentiment:
Quarterly Report
28 April 2024 7:54 PM
Vection Technologies reports strong Q3 FY24 results with significant revenue and cash receipt growth, driven by expanded operational capabilities and strategic initiatives in the INTEGRATEDXR space.
Better than expected
The company's revenue, cash receipts, and contracted revenue all showed significant growth compared to previous periods, indicating better-than-expected performance.
Summary
- Vection Technologies Ltd (ASX:VR1, OTC:VCTNY) reported its Q3 FY24 activity and cash flows, showing substantial growth.
- Unaudited revenue for the first nine months of FY24 reached $19.8 million, an 82% increase compared to $10.9 million in 1H FY24.
- Cash receipts for the first nine months were $26.7 million, up 82% from $14.7 million in the prior corresponding period.
- Forward contracted revenue as of 31 March 2024, was $6.7 million, a 37% increase from $4.8 million at 31 December 2023.
- Q3 FY24 cash receipts were approximately $11.8 million, a 108% increase compared to approximately $5.7 million in Q3 FY23.
- Operating cash inflows for Q3 FY24 were $4.1 million.
- Total Contract Value (TCV) at 31 March 2024, grew to approximately $26.4 million, up 32% from $20 million in Q3 FY23.
- Cash and cash equivalents at 31 March 2024, were approximately $7.7 million, compared to $5.5 million at 31 December 2023.
- Debt reduced by approximately $1.3 million from the previous period, with a remaining debt of approximately $8.0 million.
Sentiment
Score: 8
Explanation: The report presents a positive outlook with strong financial results, strategic acquisitions, and advancements in technology, indicating a favorable sentiment.
Positives
- Significant revenue growth of 82% for the first nine months of FY24.
- Substantial increase in cash receipts, up 82% for the first nine months of FY24.
- Growth in forward contracted revenue, indicating future revenue visibility.
- Positive operating cash inflows of $4.1 million in Q3 FY24.
- Increase in Total Contract Value (TCV), reflecting strong sales performance.
- Successful contract wins in various sectors, including a notable $4.9 million contract in cybersecurity.
- Strategic advancements in organisational structure leading to improved operational efficiency.
- Advancements in spatial computing technologies and the INTEGRATEDXR ecosystem.
- Reduction in debt by approximately $1.3 million.
Future Outlook
Vection is focused on developing a comprehensive end-to-end spatial computing ecosystem to enhance customer efficiency, reduce operational costs, and help them achieve their Environmental, Social, and Governance (ESG) objectives, while driving sales initiatives and monitoring costs.
Management Comments
- Revenue increased to $19.8 million in the third quarter of FY24, a notable 82% increase compared to the first half of this fiscal year, attributed to expanded operational capabilities and initiatives.
- The company secured a material contract in the defence sector, underscoring its commitment to this critical sector.
- The successful integration of the recent acquisition, Invrsion, marks a significant step in the company's expansion into the fashion industry.
- Advancements are focused on supporting clients in reducing operational costs and achieving their ESG objectives.
- Artificial intelligence (AI) is crucial in advancing the INTEGRATEDXR ecosystem, improving spatial computing capabilities, and reducing customer costs.
Industry Context
Vection Technologies is positioning itself to capitalize on the growing demand for spatial computing and extended reality (XR) solutions across various industries, including defense, healthcare, real estate, and retail. The company's focus on AI integration and ESG objectives aligns with current industry trends and customer needs.
Comparison to Industry Standards
- While the document does not provide specific comparisons to industry standards, Vection's growth in revenue and contracted value suggests a competitive position in the XR and spatial computing market.
- Companies like Unity Technologies and Epic Games (Unreal Engine) are key players in the broader XR space, providing platforms and tools for creating immersive experiences.
- Vection's focus on specific verticals like defense and fashion, through acquisitions like Invrsion, differentiates it from more general XR solution providers.
- The company's emphasis on ESG objectives also aligns with increasing corporate responsibility trends, potentially attracting customers seeking sustainable solutions.
Stakeholder Impact
- Shareholders: Positive impact due to strong financial performance and growth prospects.
- Employees: Positive impact due to company expansion and new opportunities.
- Customers: Positive impact through enhanced solutions and improved operational efficiency.
- Suppliers: Positive impact through increased business volume and potential partnerships.
- Creditors: Positive impact due to improved financial stability and debt reduction.
Next Steps
- Continue developing comprehensive spatial computing solutions.
- Further integrate AI enhancements into the INTEGRATEDXR ecosystem.
- Expand market efforts and develop emerging markets.
- Drive sales initiatives and monitor costs to ensure operational efficiency.
Key Dates
- 12 February 2024: Announcement of a significant contract in the defence sector and a $4.9 million contract with a cybersecurity-focused technology service provider.
- 20 February 2024: Announcement of multiple contracts totaling $971,000 across the healthcare, real estate, and retail divisions.
- 31 March 2024: End of Q3 FY24, with forward contracted revenue at $6.7 million and TCV at approximately $26.4 million.
- 19 April 2024: Announcement of the introduction of the first XR naval solution powered by the RNDR network, valued at $500,000.
- 29 April 2024: Date of the ASX release for the FY24 Q3 activity report and Appendix 4C.
Keywords
VR1
Vection Technologies LTD
ASX
Sector: Software & Services
Filings with Classifications
Better than expected
29 June 2025 7:19 PM
Defence Contract Award
- The $4.4 million follow-on supply confirms a successful transition from a proof-of-concept pilot to production delivery, indicating strong client satisfaction and product viability.
- The cumulative revenue from this customer has reached approximately $10 million, demonstrating significant and growing engagement with a top-tier defence contractor.
- The planned approximately $21 million in additional contracted options for FY26-FY30 signals substantial future revenue potential and long-term partnership with a key client.
Better than expected
22 June 2025 7:26 PM
Contract Signing Announcement
- The company secured a significant $2.6 million agreement, which substantially exceeds its $500,000 materiality threshold, indicating a strong new contract win.
Better than expected
16 June 2025 6:53 PM
Strategic Partnership Announcement
- The $520,000 agreement exceeds the company's internal materiality threshold of $500,000, indicating a significant contract.
- The partnership targets high-growth markets, with agricultural robotics projected to reach $48 billion by 2030 and precision farming $24 billion by 2030.
- The modular platform architecture allows for cross-sector deployment, expanding the addressable market beyond agriculture.
Better than expected
9 June 2025 8:01 PM
Investor Presentation
- The company reported a 60% increase in 1H25 revenues year-on-year, indicating strong top-line growth.
- Recurring revenue grew by an impressive 204% year-on-year, demonstrating a shift towards a more stable and predictable revenue model.
- Vection achieved positive adjusted EBITDA in 1H25, a significant improvement from a negative EBITDA in the previous fiscal year, signaling enhanced profitability.
Better than expected
9 June 2025 6:37 PM
Product Launch and Strategic Partnership Announcement
- The launch on AWS Marketplace provides a significant strategic partnership and market reach that is better than a standalone product launch.
- The initial contracted annual recurring revenue of $400,000 from early implementations indicates strong immediate commercial traction.
- The solution addresses a large and growing market opportunity, with the global assistive technology market projected to reach $54.9 billion by 2033.
Better than expected
1 June 2025 6:22 PM
Contract Award Announcement
- The A$1 million defence order exceeds the company's A$500,000 materiality threshold, indicating a significant win.
- The order reinforces an ongoing relationship with a strategic customer, suggesting strong client satisfaction and potential for repeat business.
- The client has already indicated additional significant opportunities, pointing to a robust future pipeline.
Better than expected
28 April 2025 7:30 PM
Placement Announcement
- The company raised more capital than initially targeted, indicating strong investor demand.
Better than expected
27 April 2025 8:02 PM
FY25 Q3 Activity Report
- The company reported positive operational cash flow, a significant improvement from previous quarters.
- Recurring revenue increased substantially, indicating a more stable and predictable revenue stream.
- The company's cash position improved, providing greater financial flexibility.
Capital raise
27 April 2025 7:43 PM
Trading Halt Request
- Vection Technologies is planning a capital raising.
- The capital raising is to support the expansion of its AI business.
- The capital raising is to support the development of new markets.
Capital raise
27 February 2025 9:41 PM
Half-year report
- In FY25 Vection announced the proposed acquisition of The Digital Box ('TDB'), a generative AI specialist, in tandem with a $2m equity raising (ASX: 29 August 2024).
- On 5 September 2024, the Company issued 200,000,000 of ordinary fully paid shares at $0.10 ($2m placement as per announced of 29 August 2024).
Better than expected
27 February 2025 9:41 PM
Half Year Results
- The company's revenue increased by 15% compared to the previous period.
- The company reduced its total debt by $5.4 million.
- Earnings per share improved by 63%.
Better than expected
27 February 2025 9:41 PM
Half-year report
- The company's revenue increased by 14.9% compared to the previous period.
- The loss after tax decreased by 58.7% compared to the previous period.
- Underlying EBITDA turned positive, indicating improved operational efficiency.
Better than expected
27 January 2025 4:33 PM
Quarterly Report
- The company achieved a positive operating net cash flow in a historically weak quarter, which is better than expected.
- The company's revenue growth of 60% half-on-half is significantly better than previous periods.
- The increase in recurring revenue to 34% is a positive sign of business model improvement.
Better than expected
21 January 2025 4:22 PM
Sales Announcement
- The company has exceeded its materiality threshold of $0.5m in revenue with these new sales.
Capital raise
16 January 2025 4:23 PM
Merger Announcement
- Vection issued approximately 143 million new shares as part of the initial consideration for the acquisition.
- Up to 52 million further shares may be issued subject to TDB meeting agreed sales, EBITDA, and balance sheet objectives one year post-acquisition.
Better than expected
8 December 2024 5:35 PM
Contract Wins Announcement
- Vection Technologies secured new contracts exceeding $500,000, surpassing their defined materiality threshold.
Capital raise
28 November 2024 4:19 PM
Annual General Meeting Results
- Resolution 4 approved the issuance of shares to Mr. Jacopo Merli.
Better than expected
24 November 2024 4:19 PM
Corporate Presentation
- Q1 FY25 revenue exceeded expectations with a 32% year-on-year increase, driven by strong demand for Vection's AI and XR solutions.
Better than expected
14 November 2024 6:17 PM
Contract Announcement
- The $0.5 million contract exceeds expectations, demonstrating strong market demand for Vection's AI solutions and validating the strategic acquisition of TDB.
Better than expected
31 October 2024 6:15 PM
Contract Announcement
- The $1.6 million contract significantly exceeds Vection's announcement materiality threshold, indicating better-than-expected results.
Capital raise
28 October 2024 3:35 AM
Extraordinary General Meeting Results
- Share issuances related to the TDB acquisition.
- Issuance of shares to Exchange Capital Advisory Pty Ltd.
- Issuance of free attaching options.
- Issuance of broker options.
Better than expected
20 October 2024 6:57 PM
Partnership Announcement
- The $0.5 million sale of the 'Algho' platform to Dell exceeded expectations, demonstrating strong market demand and the platform's commercial viability.
Better than expected
9 October 2024 8:30 PM
Distribution Agreement Announcement
- The \$3.6 million deal exceeds the company's materiality threshold of \$500,000, indicating a positive outcome.
Delay expected
1 October 2024 5:02 AM
Trading Update
- There was a delay in lodging the annual report for the year ended June 30, 2024, which resulted in a suspension of trading.
Better than expected
30 September 2024 6:21 PM
Financial Results
- Vection Technologies exceeded expectations with 30% year-on-year revenue growth and a 34% increase in EBITDA.
Capital raise
30 September 2024 6:21 PM
Annual Report
- A $2 million placement of ordinary shares at $0.10 was issued on September 5, 2024.
- Up to circa 55 million Vection shares will be issued if TDB achieves sales and EBITDA objectives and balance sheet valuation targets one year post-acquisition.
Worse than expected
30 September 2024 6:21 PM
Annual Report
- Despite a 30% increase in revenue, Vection Technologies still reported a net loss after tax, indicating that expenses outweighed the revenue growth.
Worse than expected
30 September 2024 6:20 PM
Financial Results Correction
- The revised financial results show a significantly larger loss than initially reported, primarily due to adjustments in revenue recognition, share-based payments, and asset valuations.
Better than expected
30 July 2024 6:25 PM
FY24 Q4 Activity Report and Appendix 4C
- The company's cash receipts for Q4 FY24 were better than the prior corresponding period, increasing by 15%.
Better than expected
28 April 2024 7:54 PM
Quarterly Report
- The company's revenue, cash receipts, and contracted revenue all showed significant growth compared to previous periods, indicating better-than-expected performance.
Disclaimer: This summary was generated by artificial intelligence and its accuracy is not guaranteed. The information provided here is for general informational purposes only and does not constitute financial advice, recommendation, or endorsement of any kind. It may contain errors or omissions. You should not rely on this information to make financial decisions. Always seek the advice of a qualified financial professional before making any investment or financial decisions. Use of this information is at your own risk.