Glimpse Group, Inc. Q3 FY2024 earnings call

• Brightline Interactive entered into a $4 million-plus 12-month contract with a DoD entity for a spatial computing ecosystem. There are additional potential contracts in the $8 million to $12 million range, with anticipation of closing some before calendar year-end 2024 and potential for 2025.
• Working closely with tech giants like NVIDIA and Microsoft as middleware. Brightline Interactive teamed with Cesium and NVIDIA at a symposium to introduce Brightline Spatial Core.
• Strategic transition led to short-term revenue reduction from divesting noncore assets while reducing expenses. Other subsidiaries generate meaningful revenues, and cash flow is positive from their operations.
• Expect revenues to be flat to up in coming 2 quarters, then significantly grow in Q4 2024 and 2025 from DoD contracts and others.

In Q3 Fiscal Year 2024, revenue was approximately $1.9 million, a decrease of approximately 48% compared to the $3.67 million in Q3 Fiscal Year 2023. For the 9 months ended March 31, 2024, revenue was approximately $7.1 million, a decrease of 33% compared to the $10.6 million in the same period of 2023. Gross margin for Q3 Fiscal Year 2024 was approximately 70% compared to 67% in Q3 Fiscal Year 2023. Other subsidiary companies like QReal, Sector 5 Digital, Foretell Reality, and Glimpse Learning generate meaningful enterprise revenues, with cash flow positive from their internal operations.

• Revenues expected to be generally flat to up in the coming 2 quarters as divestiture plans are finalized.
• Anticipate significant revenue growth in Q4 2024 and 2025 from recently signed DoD contracts and others to follow.
• Positioned to reach cash flow profitability in the coming months.