Nextech AR Seeing Record 3D Model Demand in Q4 2022, Continuing In 2023
Nextech AR Solutions Corp. , a Metaverse Company and leading provider of augmented reality (“AR”) experience technologies, wayfinding technologies and 3D model services is pleased to announce that it’s experiencing record demand for 3D models in Q4 2022 and sees the record demand continuing in 2023 and beyond as the 3D model mega trend gains traction. In addition, the Company announced the closing of new 3D modeling deals for ecommerce, renewals and reorders are strong.
The Company continues winning new contracts, renewals and expanding existing contracts which is driving the record demand for its AI-powered ARitize 3D technologies for e-commerce.
Nextech has contracts for 3D models in the following variety of industries:
Renewals & Re-Orders
E-Commerce Sites
Leading E-Commerce solution enabler, Sirclo, with 25 million + end-to-end customers working with 150,000 + brands, has renewed its annual subscription for a variety of SKUs.
Specialty Products
Prineta, an ATM placement and management Company, has renewed its annual subscription for ATM products. This follows recently announced news for other specialty product retailers such as As Good As Gold Australia, Top Meteorite, Vornado, and William Wood Mirrors, showcasing the complexity and details that Nextech’s 3D models are able to provide.
Sports Equipment
Skate One, a skateboard manufacturer out of California, renewed its annual subscription for a variety of skateboard SKUs. In addition, following the previously announced contract with Bunnings Group for BBQ SKUs, the Group has signed on for 3D models of their bicycle line.
The sports equipment segment continues to grow for Nextech, as the Company also recently signed a renewal 3D modelling deal with City Grounds, a bicycle retailer for additional SKUs. This follows multiple sports-related ARitize 3D deals, including MGI Golf, Marketer Deutschland, Head, Himibike, Salamander Paddle Gear, Never Summer, The Perfect Mound, Source for Sports, Joyride Bikes and others.
Home Goods
Seville Classics, a global leader in home organization and storage solutions, has renewed its annual subscription for a large number of SKUs over the next 12 months.
Read More: How to Drive Engagement and Fuel Sales with NFTs with These Best Practices in 2023
Q4, New Deals for 3D Models
Flooring
Summit International Flooring, a premier flooring supplier, has signed on for additional SKUs, highlighting the success of using 3D models on their website.
Speciality Outdoor Furniture / Equipment
Babmar, the most trusted brand name in weather-resistant, handwoven outdoor furniture has signed a substantial contract for 3D models of their residential and commercial outdoor furniture products. This newest contract continues to expand on the outdoor furniture and equipment 3D modelling market for the Company. As recently announced, Nextech signed with Bunnings, a large Australian hardware retailer to do 3D models of BBQs and a variety of other SKUs, along with Everdure by Heston Blumenthal, Ezooza, North by North, and others. Nextech is seeing definite growth in this category with new and renewal business.
Partner Agencies
Hearst UK, a powerful network of iconic brands, has contracted with Nextech AR for a 3D/AR shoe, as well as an acCompanying 3D Ad
In October 2022, Nextech AR announced the Company has received its single largest purchaser order to date of $6.7 million from a NASDAQ 100 technology Company. The 3D models for this $6.7 million order will be delivered in 2023. Large enterprise orders like this demonstrate the Company’s technical proficiency as a 3D model provider and leadership position in the transformation of the $5.5 trillion e-commerce industry from 2D to 3D. Nextech anticipates that its proprietary AI and computer vision expertise will play a major role in the growth of its future production of mass quantities of 3D models.
On October 13, Nextech AR Solutions reported its preliminary Third Quarter 2022 financial results, which showed sequential 3D modeling revenue up over +170% Versus Q2 2022.
3D Model and Technology Services (unaudited)
- Q3 technology services revenue up +66% from Q2 2022 hitting approximately $920K
- Q3 3D modeling revenue increased over +170% versus Q2 2022
- Q3 3D model production increased +110% versus Q2 2022
- Q3 technology services gross profit margin improved by +48% hitting 55% versus 37% reported in Q2 2022
- Q3 gross profit was approximately $507K on 920K in Q3 revenue with a gross profit margin of 55%
Q3 2022 was a transformational quarter for Nextech AR, as demand, production and our revenue from 3D modeling significantly increased.
The Company sees this trend continuing in Q4 2022 and FY 2023.
2022 Q4 Outlook
- $700,000 3D model order to be delivered in Q4, 2022
- Several quotes have been issued for large RFPs (Request for Proposals), from big box retailers which could close in Q4 2022.
