Engage XR Holdings PLC on Monday warned that it expects full-year revenue to come in below market expectations, following delays to Middle Eastern contracts.
The Waterford, Ireland-based virtual reality technology company said it expects to post full-year revenue of around €3.4 million for 2024, which would be an 8.5% decline from the €3.7 million reported in 2023.
Broker Cavendish had previously forecast annual revenue of €5.3 million for the group, which would have been a 36% increase year-on-year.
Shares in Engage XR were down 14% at 0.51 pence each in London on Monday morning.
The slip was due to ‘delays in finalisation of some larger contracts in the Middle East, and the continued delayed deployment of the previously announced contract with a Middle Eastern client to the first half of 2025,’ Engage XR said.
The firm said its annual recurring revenue has now reached the 70% level, compared to 63% last year.
Engage XR anticipates a loss before interest, tax, depreciation and amortisation of around €4.0 million, unchanged from the year before.
Chief Executive Officer David Whelan said: ‘While it is disappointing that the delay in our new Middle East contract hit revenue recognisable in 2024, given the strength of the pipeline, we expect 2025 to be a strong year and remain confident in delivering our strategic objective of cashflow break even in FY25.
‘The Education and Training sectors will be the primary drivers of growth. Meta released the Quest 3S headset late last year, which is a high-quality but affordable device ideal for education and training. We are working with Meta and its partners on creating an education offering to eclipse others in the sector and we expect to compete strongly on pricing and services.
‘We start 2025 with a strong client base, supported by day our strategy of securing 2- to 3-year contracts with many of our partners in the education and training sects. This ensures a stable foundation for continued growth and innovation.’
Engage XR’s cash balance at December 31 was €3.6 million, 75% lower than €7.9 million a year prior.
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