Urbanimmersive announces revenues decreased 11 percent
Urbanimmersive Inc. announced select financial results and presents business highlights for its fourth quarter and fiscal year ended Sept. 30, 2021. The company generated revenues of $4.069 million compared to revenues of $4.594 million for 2020, a decrease of $525,000 or 11%. This decrease of $525,000 is explained by the significant decrease in sales of 3D photography equipment (-$603,000) as well as the decrease in SaaS revenues (-$209,000 or -7%) mainly explained by the challenging real estate market, partially offset by the addition of service revenues (+$307,000) coming from the photography agencies acquired on June 30, 2021; For Q4-21, the Company generated revenues of $1.09 million compared to revenues of $1.441 million for Q4-20, a decrease of $351,000.
Sales of 3D immersive tours in Q4-21 increased by 237% when compared to Q4-20 while having increased by 207% in 2021 compared to 2020. The company closed a non-brokered private placement of $2.9m in April 2021 and adopted an accelerated growth plan in June 2021 with $1.6m being used to complete the strategic acquisitions of three real estate photography agencies: EGP Technovirtuel Inc., Graphique ID Solutions Inc., and La Clique Mobile. As of Sept. 30, 2021, the company had liquidities of $2.0m and positive working capital of $1.1m.
During the year, the company reduced its long-term debt by $4.7 million, with $4.5 million through the conversion of all of its convertible debentures;
During the year, the company launched many new products, in particular UI Capture 2.0, a dollhouse, and its flagship interactive 3D tour, UiMeet3D, for which three patent applications were filed during the year.
* EBITDA has been adjusted for the non-recurring expenses incurred for the acquisition costs ($64k), subsidiary setup costs ($21,000), restructuring charges ($19,000) and legal fees incurred for the company’ listing on OTCQB ($17,000).
** The increase in other expenses is mainly explained by the non-recurring adjustment required to the fair values of embedded derivatives on convertible debentures upon conversion into shares ($2,926k in 2021).
“During the year, despite having once again to navigate a particularly challenging real estate market, we are proud of the results achieved,” said Ghislain Lemire, President and CEO. “Our growth strategy based on the addition of photography services in order to be able to offer a global turnkey offer to our customers, in particular in the form of monthly subscriptions packages, began to yield very positive results and allowed us to increase the adoption of our SaaS solutions such as our immersive 3D tours and UiMeet3D. This key addition of a photography service also diversifies our activities, brings new business opportunities and increases our revenues and profits.
“Given the strong adoption by the real estate brokers of our new monthly subscription packages which has already reached more than 20% two months after its launch, the strong growth in demand for our immersive 3D tours, floor plans and UiMeet3D, our complete offer and extensive network of photographers following the acquisitions of photography agencies completed recently and an expected return to a more balanced real estate market, we are very well positioned and particularly excited about what is coming for 2022.”
Options grant and shares issuance
The company also announces 1,035,000 share purchase options have been granted to employees, consultants, management, and members of the Board of directors pursuant to the terms of its share option plan. These options are exercisable at $0.72 per share and expire on Jan. 24, 2027.