NextTrip, Inc. Q2 FY2021 earnings call

• Mark Ruport expressed disappointment in Q2 revenue but excitement for the future, noting one quarter doesn't change strategy. - Pipeline continues to increase with marketing activities producing opportunities. - Sales teams expanded, with three in North America and two in Europe now. - Market opportunity in additive manufacturing is large, with a need for standards-based quality monitoring like PrintRite3D. - Increased focus on aerospace, space exploration, and defense due to regulatory pressure. - Engineering team facing challenges keeping up with prospect pace.

Sigma Labs' second quarter 2021 revenue totaled $144,000, down from $168,000 in Q2 2020. Year-to-date revenue ended June 30, 2021 was $602,000, a 55% increase from the prior year. Gross profit for Q2 2021 was $28,000, compared to $110,000 in Q2 2020. The gross margin in Q2 2021 was 20%, while year-to-date gross margin was 60%. Total operating expenses for Q2 2021 were $2.17 million. Cash used in operating activities for the six months ended June 30, 2021 was $3.2 million. Net loss applicable to common stockholders for Q2 2021 was $1.85 million or $0.18 per share.

• Mark mentioned positive outlook for Q3 and Q4, with pipeline increasing monthly. - Regulatory pressure in aerospace and defense is shortening sales cycles. - No specific revenue guidance provided, but emphasized larger opportunity and pipeline growth.

• Unforeseen circumstances like laser failures in RTE and payment delays from trading companies in Asia caused deal slips. - Supply chain issues and delivery delays affected some deals. - Impact of COVID-19 on recovery and sales ramp-up in Europe.

Q: Scott Buck asked about hiring locations, sales cycle visibility, pipeline magnitude, and cash burn.

A: Mark Ruport discussed hiring in Europe, sales teams, variable sales cycle depending on buyer competency, pipeline at least double in H2 vs H1, and Frank Orzechowski mentioned cash burn likely increasing due to OpEx but offset by sales.

Q: Jon Gruber asked about revenue outlook for full year and Q3 guidance.

A: Mark Ruport said Q3 and Q4 are positive with increasing pipeline, but no specific revenue guidance given.

Q: Anthony Charos asked about Materialise relationship.

A: Mark Ruport said relationship is developing, with deals and OEM possibilities due to Materialise, and joint work on integration of PrintRite3D to Control Platform.

Q: Scott Billadeau asked about quantifying slipped deals.

A: Mark Ruport mentioned slipping or missing opportunities on four or five deals, with DMG and Additive having less activity than expected.