Research note


XMReality: Customer initiating roll-out

XMReality has announced that the company has received a follow-up order from Haas Group, which is initiating a roll-out of Remote Guidance within the group to offer the solution to its customers. This is thereby the second customer that has signed an agreement with the intentions of using the company's solution on a larger scale.

Yesterday, XMReality announced that it had received additional orders from the Austrian company Haas Group. The announced order, consisting of point pads and smart glasses, is worth about SEK 0.4m and will be recognized during the year. The order of point pads and smart glasses is thus a part of the company’s decision to implement Remote Guidance in its service offering. Haas has thereby entered a reseller agreement, where XMReality’s revenues will increase as additional customers of the Haas group starts using the solution, thus illustrating the scalability of the company’s offering.

Haas group employs about 1750 people and consists of companies that provide production equipment and services towards companies producing confectionary and dairy products. An interesting note is that Haas Group is owned by Bühler Group, which is a substantially larger corporate group with revenues around CHF 2.7 billion (2017) and over 11,000 employees. Haas mentions that it has offered XMReality’s software towards its customers since last year and that it has equipped its service teams in various countries across the world with the solution. XMReality has, however, not been able to leave any additional details about the current number of licensed users.

As earlier mentioned, we do not expect the roll-outs to occur overnight, hence not expecting to see any shocking effects on XMReality’s revenues already during the coming quarters. We rather believe that the deal will bolster the user base during the coming years, which then should generate large recurring revenues.

Haas Group is thereby the second customer/partner of XMReality which has entered an agreement with the intention to implement Remote Guidance on a larger scale (the first customer to do so was Coesia group). Although Coesia might be more promising regarding the potential of licensed users given the difference in size between the companies, we find yesterday's news very positive. This is based on the fact that the deal will increase the number of licensed users, but also that the deal is the second to show that truly is an interest in adopting the solution on a larger scale. We will, however, not make any adjustments to our forecasts as of now.

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