Urbanimmersive doubles first-quarter revenue, loss widens
Urbanimmersive Inc. reported financial results and presents business highlights for the first quarter ended Dec. 31, 2022. The company generated revenues of $3.2 million compared to $1.0 million for same period last year, an increase of $2.2 million or 219% but the net loss widened to $1.1 million, compared to $597,000 last year.
In October 2022, the company completed the strategic acquisition of HomeVisit, LLC, a major photography service agency in the United States owned by CoreLogic, LLC, for a purchase price of $8.2 million, financed by the issuance of company’ shares ($2.7 million) and a 5-year guaranteed debenture worth $5.5 million. As part of this acquisition, the Company acquired a working capital of US$ 1.2 million.
| Three-month period ended Dec. 31, 2022 |
Three-month period ended Dec. 31, 2021 |
|
| In thousands $ | In thousands $ | |
| Revenues | 3,177 | 995 |
| COGS and direct charges | 1,722 | 439 |
| Gross margin (before amortization) |
1,454 | 556 |
| Amortization | 506 | 249 |
| Operating expenses | 2,040 | 868 |
| Adj. EBITDA* | 31 | (204) |
| Other expenses | 3 | 36 |
| Net income (loss) | (1,094) | (597) |
| Basic net income (loss) per share | (0.02) | (0.02) |
* Q1-23 adjusted EBITDA includes $617,000 for non-cash items related to share and share-based payments $99,000 and non-recurring items such as transition costs ($473,000) and business acquisition costs ($45,000). Q1-22 adjusted EBITDA includes $108,000 for non-cash items related to share and share-based payments ($47,000) and non-recurring items such as CEWS wage subsidies (-$3,000), restructuring charges ($60,000) and business acquisition costs ($33,000).
“During the most recent quarter, we have successfully integrated HomeVisit, the largest acquisition in Urbanimmersive’s history,” said Ghislain Lemire, president and CEO of Urbanimmersive. “This strategic acquisition brings technology, revenues, a large U.S. customer base, and opportunities to upsell Urbanimmersive’s solutions. This transaction positions Urbanimmersive to address the $US 1.5 billion addressable market for the photography of residential real estate. Concurrently to the acquisition, CoreLogic the largest real estate technology provider in North America, became a shareholder of Urbanimmersive and has signed a strategic partnership. This partnership, which is the result of several months of technology due diligence, allows Urbanimmersive to onboard MLS agencies and real estate brokers to its marketplace and benefit from our fully integrated and proprietary solutions. This deal fits perfectly with our U.S. expansion strategy.
“Although we are still navigating in a difficult real estate market environment, the rapid integration of HomeVisit’s activities into our state-of-the-art management system (‘ERP’) and our enhanced global product and service offering, including 3D visits, marketplace and metaverse experience, allows us to consider the future with optimism in terms of growth and financial performance.”