The Glimpse Group, Inc. (NASDAQ:VRAR) Q2 2023 Earnings Conference Call February 14, 2023 4:30 PM ET

Company Participants

Lyron Bentovim - President and CEO

Maydan Rothblum - Chief Financial Officer and COO

Conference Call Participants

Dillon Heslin - ROTH

Operator

Welcome to The Glimpse Group Fiscal Second Quarter 2023 Financial Results Webinar. At this time, all participants are in listen-only mode. A question-and-answer session will follow the formal presentation. As a reminder, this conference is being recorded. The earnings release that accompanies this call is available on the Investors section of the company’s website at https://ir.theglimpsegroup.com.

Before we begin the formal presentation, I’d like to remind everyone that statements made on today’s call and webcast, including those regarding future financial results and industry prospects are forward-looking and may be subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the call. Please refer to the company’s regulatory filings for a list of associated risks and we would also refer to the company’s website for more supporting industry information.

I would now like to hand the call over to Lyron Bentovim, President and CEO of The Glimpse Group. Lyron, the floor is yours.

Lyron Bentovim

Thank you, Max, and thank you everyone for joining us. I am pleased to welcome you to The Glimpse Group’s fiscal second quarter 2023 financial results investor call for quarter ended December 31, 2022.

The Glimpse’s second quarter was highlighted by continued momentum across various significant business development and technological fronts, and a focus on cost efficiencies as we drive towards achieving our goal of cash neutrality in calendar year 2023.

For the fiscal second quarter 2023, we generated revenue of approximately $3 million, representing 75% growth compared to first quarter 2022 revenues of approximately $1.7 million. For the first half of financial year 2023, we generated record revenue of approximately $6.9 million, representing 155% growth or 2.5x compared to $2.7 million for the same period last year.

With our recent acquisitions of Brightline Interactive and Sector 5 Digital fully integrated, we are seeing strong momentum with significant customers in the Government and Department of Defense sectors, as well as large software infrastructure providers and telcos. While these contracts take longer to materialize, we do expect to see some of the impact of these in calendar year 2023.

We expect Q3 FY 2023, January to March 2023 revenues to exceed Q2 FY 2023 revenue, while having a materially lower net cash flow. As Maydan will detail later in his prepared remarks, we remain sufficiently capitalized and have a clean capital structure.