The Glimpse Group Q3 2025 Earnings Call Transcript

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Provided by Quartr
May 15, 2025

There are 3 speakers on the call.

Operator

Welcome to the Glimps Group's Third Quarter Fiscal Year twenty twenty five Financial Results Webinar. At this time, all participants are in a listen only mode.

Operator

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.theglimpsgroup.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 you to the company's website for more supporting industry information.

Operator

I would now like to hand the call over to Laurent Bentovan, president and CEO of The Glintz Group. Laurent, the floor is yours.

Speaker 1

Thank you, Kelly, and thank you everyone for joining us. I'm pleased to welcome you to The Grims Group's Q3 fiscal year twenty twenty five financial results investor call for quarter ended 03/31/2025. In this quarter, we continued the strong momentum of the previous quarter. Our outlook for revenue is strong, led by special course traction with various DoD entities and increasingly with opportunities in the enterprise segment as well. This momentum is expected to be reflected in our upcoming quarter, which may be the highest revenue quarter for us over the past two fiscal years.

Speaker 1

In parallel, we delivered our second consecutive quarter of positive cash flow from operations, a major achievement and a direct result of our reorganization and cost control efforts over the past several quarters, as well as our strategic focus on SpatialCore. As a reminder, SpatialCore led by our subsidiary company BrightLine Interactive is an operating system for spatial computing, integrating data and AI into three d environments, enabling cloud compute and creation of complex simulations while providing insights and valuable information that is presented in three d form and based on real source of truth data. This has transformative applications in robotics, drones, and digital twins to name a few. In essence, it supercharges big data. This is not a theoretical at this stage.

Speaker 1

SpecialCore is delivering in some of the most advanced and challenging environments with tremendous potential to become an enabling technology in this three d big data AI cloud space. Recent special core developments includes BrightLine is expected to deliver its 4 plus million dollars DoD contract this month, which would represent a fundamental achievement. During the quarter, BrightLine successfully delivered to the US Navy its first full motion immersive simulator system. This milestone marks a significant achievement in adoption of immersive technologies to enhance the capabilities, effectiveness and safety of The US Military service, setting the ground for potential phone on contracts. Last week, we received official confirmation for a new 7 figure special court deal, which we expect will be signed in the coming weeks.

Speaker 1

The US government's continuing resolution and the lack of a federal budget for 2025 has delayed the potential awarding of multiple government and DoD opportunities. However, we continue to be well positioned for multiple opportunities and expect to confirm a few additional 7 figure Special Core opportunities in the coming months. While Special Core is our strongest growth driver, our other immersive companies are also performing well in their segments. Hotel Reality entered into several contracts for its AI driven immersive training product. Sector five Digital entered into follow on agreements with Halliburton, Ecolab, Galderma, Walmart and AT and T.

Speaker 1

Glimpsed Lens's Snap revenues grew significantly from the prior quarter and is tracking well. Glimps Learning entered into multiple software license contracts in the health care and educational segments. However, despite all this strong traction in special course AI and cloud driven revenues, a deep pipeline of revenues across our businesses, our position in the immersive industry, tier one customer base, positive cash flow, and solid cash balance and clean balance sheet. There continues to be a sharp disconnect between our intrinsic value and our current public company valuation, both standalone and versus our public and private comps. As such, we may seek to utilize our untapped $2,000,000 common share buyback plan in order to protect our stock if circumstances warrant its utilization.

Speaker 1

With that, I will now turn it over to Meidhan Ruffblum, Bloom's CFO and COO to review the financial results. Meidhan?

Speaker 2

Thanks, Lioran. I will limit my portion to a summary review of our financial results. Full breakdown is available in our 10 Q and press release that we filed before market open today. Please note that I'll refer to non core non GAAP measures for the calculation of which, please refer to the MD and A section of our 10 Q filing. Q3 fiscal year twenty twenty five revenue of approximately $1,400,000 a 25% decrease compared to Q3 fiscal year twenty twenty five ended 03/31/2024 revenue of approximately 1,900,000.0 This expected and previously discussed decrease was primarily driven by revenue recognition timing.

Speaker 2

Q4 fiscal year twenty twenty five revenues ending 06/30/2025 is expected to be in the 3.2 to $3,800,000 range and profitable as we deliver and recognize the final stage of the large Department of Defense entities contract for SpatialCore. Revenue for the nine months ended 03/31/2025 was approximately $7,000,000, essentially flat compared to the same nine month period last year despite divesting and consolidating multiple subsidiary companies. For fiscal year twenty five, ending 06/30/2025, we expect revenues in the 10,000,000 to $11,000,000 range, a 15% to 25% increase for fiscal year twenty twenty five, again, despite divesting and consolidating multiple subsidiary companies during this fiscal year. Gross margin for Q3 fiscal year twenty twenty five was approximately 72% compared to 70% for Q3 fiscal year twenty twenty four. We expect our going forward gross margin to be in the 65 to 75% range, an increase from our previous guidance due to a larger portion of revenue coming from spatial core and software license sales.

Speaker 2

Net operating cash provided for operations in Q3 fiscal year twenty five was a positive cash gain of approximately $130,000 compared to a net operating cash loss of approximately negative $920,000 for Q3 fiscal year twenty four. This is our second consecutive positive quarter. Net operating cash loss from operations in the nine months period fiscal year twenty five was approximately negative 130,000.00 compared to approximately negative 4,300,000.0 for the same nine month period last year despite having similar level of revenue for the period. This turnaround reflects our significant reorganization efforts, cost reductions, and maintenance of high gross margins. Fiscal year 'twenty three, Q3 fiscal year 'twenty '5 adjusted EBITDA loss of approximately $1,000,000 compared to an adjusted EBITDA loss of negative 900,000 for Q3 fiscal year 'twenty four, primarily driven by lower recognized revenue this quarter.

Speaker 2

However, we expect the upcoming quarter's Q4 fiscal year 'twenty five EBITDA to be positive due to higher expected revenue. For the nine month period ending 03/31/2025, adjusted EBITDA loss of approximately $1,200,000 compared to an adjusted EBITDA loss of approximately $3,500,000 for the same period last year, which means that for fiscal year 'twenty five in total, we will likely have a slightly negative EBITDA compared to an EBITDA loss of negative 4.6 in fiscal year twenty four, a mark improvement. The company's cash and equivalent position as 03/31/2025 was approximately $7,000,000 with an additional $650,000 in accounts receivable. We continue to maintain a clean capital structure with no debt, no convertible debt and no preferred equity. I'd like to pass it back to Liron for closing remarks, after which we will begin our Q and A session.

Speaker 1

Thank you, Maidan. This was an impactful quarter. While SpatialCore has made impressive progress, I believe that it is only at the precipice of what it can become. But like all good things, this requires patience. As a company with a solid balance sheet, profitable operations, and several growth vectors, we are well positioned to capitalize on the immersive opportunities in front of us.

Speaker 1

I thank you all for the interest and support of the Gloom Group. And now I'll turn the call back over to the operator to take some questions.

Operator

Thank you, Leron. If you'd like to submit a question, you can either type it in the chat box below or raise your hand. We'll start with any audio questions and follow that with some writing questions as time allows. To ask questions from the phone lines, please press star one at this time. If using a speakerphone, please pick up your handset for optimum sound quality.

Operator

Please hold just a moment while we poll for any questions from the phone lines. I am not showing any questions from the phone lines at this moment. We'll turn into some writing questions if available. Larone?

Speaker 1

There's not seem to be any questions out there, so I thank everyone for joining our conference call. We look forward to continuing to update you on our ongoing progress and growth. If we were unable to answer any of your questions, please reach out to us directly. Thank you.

Operator

Thank you, everyone. This does conclude today's webinar. Thank you for your participation, and have a wonderful day.

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Earnings Conference Call
The Glimpse Group Q3 2025
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