VR1
Vection Technologies LTD
ASX
Vection Technologies Company Presentation
Sentiment:
Corporate Presentation
24 November 2024 4:19 PM
Vection Technologies (ASX: VR1) reported a strong start to FY25 with ~$8 million in pro-forma unaudited Q1 revenue, a 32% increase year-on-year, driven by its AI-powered ecosystem and strategic partnerships.
Better than expected
Q1 FY25 revenue exceeded expectations with a 32% year-on-year increase, driven by strong demand for Vection's AI and XR solutions.
Summary
- Vection Technologies, an AI and XR solutions provider, showcased its strong financial performance and growth strategy.
- The company's Q1 FY25 pro-forma unaudited revenue reached approximately $8 million, representing a 32% increase compared to Q1 FY24.
- Forward contracted revenue at the end of Q1 FY25 was approximately $7 million.
- Recurring revenue in Q1 FY25 was approximately 24%, significantly higher than the 10% for the full FY24.
- Vection's revenue in FY24 reached $43 million (pro-forma including TDB acquisition), up from $500,000 in FY18.
- The company's FY25 revenue is expected to be diversified across sectors, with Retail + System (Kiosk AI) leading at 20%, followed by Defence/Space and Public Administration.
- Gross profit margins vary by sector, with Real Estate showing high profitability (76%) and Defence/Space at 20% (expected to increase).
- Vection's FY25 revenue mix by solution is forecasted to be AI at 31%, Services at 39%, and XR at 30%.
- The company has formed a partnership with Dell to leverage their salesforce and market reach for Vection's Algho AI platform.
- Vection's Algho Appliance offers various configurations to meet clients' needs, including on-premise and cloud-based options.
- The company's Algho platform addresses challenges related to data security, AI output quality control, and data privacy.
- Vection's Algho platform offers different tiers and pricing, with upfront revenue and subscription models varying based on the product and target customer.
Sentiment
Score: 8
Explanation: The document presents a positive outlook with strong financial results and strategic partnerships. However, the relatively low market capitalization and some sector-specific margin challenges temper the overall sentiment.
Positives
- Strong Q1 FY25 revenue growth of 32% year-on-year.
- Significant increase in recurring revenue from 10% in FY24 to 24% in Q1 FY25.
- Substantial revenue growth from $500,000 in FY18 to $43 million in FY24.
- Strategic partnership with Dell to expand market reach.
- High gross profit margins in certain sectors like Real Estate (76%).
- Diversified revenue streams across multiple sectors.
- Robust cash position of $4.8 million as of September 30, 2024.
Negatives
- Lower gross profit margins in the Defence/Space sector (20%), although expected to improve.
- Relatively low market capitalization of $61 million.
Risks
- Competition in the AI and XR market.
- Dependence on successful execution of strategic partnerships.
- Potential challenges in achieving projected revenue growth.
- Fluctuations in gross profit margins across different sectors.
Future Outlook
Vection expects continued growth, driven by its AI-powered ecosystem, strategic partnerships, and expansion into new sectors. The company anticipates increasing gross profit margins in the Defence/Space sector as the division matures.
Management Comments
- ’Vection offers a unique, all-in-one ecosystem that combines AI, Virtual Reality, and Augmented Reality, allowing seamless integration across the entire business value chain.’
- ’Our technology is designed specifically for professional applications in B2B and Public Administration, making it adaptable and highly relevant to enterprise needs.’
Industry Context
Vection operates in the rapidly growing AI and XR sectors, facing competition from established players and emerging startups. The company's focus on enterprise solutions and strategic partnerships positions it to capitalize on the increasing demand for AI-driven digital transformation across various industries.
Next Steps
- Continued expansion into new sectors.
- Strengthening partnerships with key players like Dell.
- Further development and refinement of the Algho AI platform.
- Improving operational efficiencies and scale in the Defence/Space sector.
Key Dates
- 2016: Founded as ServTech Global Holdings
- 2019: Acquired Officine 8K and rebranded to Vection Technologies
- 2020: Acquired Mindesk
- 2021: Acquired JMC Group and Blank Canvas
- 2023: Acquired Invrsion
- 2024: Acquired MYR and The Digital Box
- November 2024: Corporate Presentation Date
- September 30, 2024: Date of cash at bank figure
- November 11, 2025: Expiry date of VR1O options
- December 3, 2024: Expiry date of VR1AN options
Keywords
AI, XR, Vection Technologies, Algho, Dell, Revenue, Financial Performance, Partnership, Technology, Spatial Computing, Digital Twins, B2B, Enterprise Solutions
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.
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.
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 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.
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.
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.
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.