Record revenue of $2.4M in first half of 2021, 393% increase year-over-year
Second quarter revenue growth up 2,798% year-over-year, exceeded Company expectations
Record number of repeat clients, representing 85% of Q2 revenue
World’s first global HoloPresence network begins rollout with WeWork
TORONTO, July 27, 2021 — ARHT Media Inc. (“ARHT” or “the Company”) (TSXV:ART), the global leader in the development, production and distribution of high-quality, low latency hologram and digital content, today announced its financial results for the second quarter ended June 30, 2021.
Second Quarter 2021 Financial Update
- Revenues for the second quarter of 2021 were $1.21 million, compared to $42 thousand in the second quarter of 2020;
- Net loss for the second quarter of 2021 was $1.28 million (before loss on debenture repayment of $298k), compared to $560 thousand for the same period in 2020;
- Cash and cash equivalents were $4.17 million as of June 30, 2021
Second Quarter 2021 Business Updates
- The Company continued to build out its recurring revenue business with the permanent installation of three HoloPodTM solutions, the addition of four large new clients – representing potential for recurring business – and 85% of Q2 revenue derived from repeat clients
- ARHT reached record demand in June, reigning in a total of 14 Virtual Global StageTM presentations, 2 HoloPresenceTM presentations, and 4 Hardware Sales Transactions in Q2
- The Company progressed its previously announced strategic partnership with WeWork as the first installations are underway, and one more location was added in the initial phase of rollouts, totaling 17 expected office installations in 2021
- ARHT leveraged its Dubai distributor, NMK Electronics, to introduce its innovative holographic technology in the Middle East, with its HoloPresenceTM solution featured during the Arab Health 2021 Conference
- The Company brought its HoloPresenceTM Technology to the Jeju Peace Forum for the former President of France, Francois Hollande, adding to the growing list of heads and state government leaders that have taken advantage of ARHT’s holographic presentation technology
“We achieved record revenue growth of 393% in the first half of the year driven by our ability to generate repeat sales from existing clients and add new customers, positioning us ahead of our 2019 trajectory and back towards growth following the height of the COVID-19 pandemic in 2020. Especially encouraging was the fact that 85% of revenue came from repeat and recurring clients – which demonstrates the “stickiness’ of our offering,” commented Larry O’Reilly Chief Executive Officer of ARHT Media. “In addition, we have started installations with our WeWork partnership which will build the world’s first HoloPresence network. We are budgeting $2 million in revenue in 2022 from these first 17 locations plus this network will be of tremendous benefit to our other permanent installed locations and event activations. We expect the second half of 2021 to continue along our growth trend with increasingly more demand for recurring revenue products such as our HoloPodTM, where we permanently install the technology which generate transmission and maintenance fees on an annual basis.”
About ARHT Media
ARHT Media’s patented HoloPresence technology is a complete end-to-end solution that creates a sense of presence for audiences – as though the holographic presenter was actually live in the room. With no noticeable latency, ARHT Media makes two-way live communication with a 3D holographic presenter anywhere in the world possible. We can also playback pre-recorded content and 3D animations on our HoloPresence displays to deliver rich holographic experiences. Add to this our capability to stream the same content online on our premium Virtual Global Stage™.
For more information, please visit www.arhtmedia.com or contact the investor relations group at email@example.com.
ARHT Media trades under the symbol “ART” on the Toronto Venture Stock Exchange.
KCSA Strategic Communications
This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, disclosure related to the Company’s sales funnel; the Company’s technology; the potential uses for the Company’s technology; the future planned events using the Company’s technology; the future success of the Company; the ability of the Company to monetize the ARHT Media technology; the development of the Company’s technology; and interest from parties in ARHT’s products. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic and competitive uncertainties; regulatory risks; risks inherent in technology operations; and other risks of the technology industry. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
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