Vr Education Share Discussion Threads

[hastings] 16/6/2020 13:56

Write up from this morning that may be of interest to others.

VR Education, the AIM quoted company behind the Engage Virtual Reality platform, released its preliminary results for the year ended 31 December 2019 this morning and as a result I was fortunate enough to catch with both the CEO and CFO.

Firstly, the numbers saw revenue increase by 43% to Euro 1.02m which was driven by a 36% increase in showcase experience revenues alongside the breakthrough of a new revenue stream of fees from the Engage platform.
 
The results were arguably of less importance to shareholders or watchers of the stock given that they had been flagged previously, rather, the forward picture and prospects was what investors were keen to hear more of.

There was plenty of information on offer for holders to digest, outlining the potential for the company, where as a result, I had plenty to discuss with CEO David Whelan and CFO Seamus Larrissey.

Without doubt both Executives see the company in an excellent spot which has been massively enhanced as a direct result of the Covid-19 pandemic and all that has brought with it.

Whelan says, that Covid-19 has greatly accelerated online and distance learning and such as in the US, it has now blown that open.

It is there that VRE has already established a relationship with VictoryXR, whilst closer to home it is now involved with Oxford University.  

He explains that in terms of the technology, the company had already laid the right foundations to serve educational institutions citing previous engagement with University professors in fine tuning the likes of its menu system on its platform to ensure the functionality was at an optimum.

Getting things right and adapted for ease of use has been paramount for VRE which now sees it ready to transition into wider adoption as ever more aspects of education migrate to online and distance learning.

But, away from the education sector the real opportunity and dramatic changes as a result of recent events must lie in the area of business and commerce.

Whelan believes that these changes and enforced transition to home working and the subsequent restraints on travel that have hit conferencing are in many aspects very much here to stay, echoing others words that things aren't going back to how they were.
Whelan talks of having recently hired aggressively to meet the post Covid-19 demand and highlights that the Engage platform is perfectly placed to meet the demands for companies wishing to bring together people remotely for team talks and conferences etc.

“Unlike Zoom which has its limitations on not only the number of people that can come together, our platform is more engaging and can fill important needs and requirements for companies".

This includes the availability of the likes of white boards and the ability to provide hallway
conversations where business is often done along with personalised avatars.”.

The whole concept of being able to diverge into a meeting with a small group room away from the main hub surely has mass appeal and will no doubt be a major attraction in terms of adoption.

What has really garnered interest in AIM quoted VRE most recently however has been the exciting tie up with the giant HTC Corp. which looks potentially like a real game changer for the company.
“China is a massive market in VR and the fastest growing says Whelan, but to break in to that as an outsider is virtually impossible, particularly for a smaller player.

Having worked with HTC for a number of years they had been keen to invest in the past but previously it hadn't quite been the right time.

That clearly changed in March after VRE assisted in the Virtual VIVE Ecosystem 2020, which proved a major success and saw HTC taking a 20% stake in the company.  

“In order to succeed in China you really need someone in the Asia market and HTC is both strong and well placed across VR and Telecommunications a market that is already massive and ready to explode”.

Although rightly there is plenty of excitement and optimism around the HTC association that exclusivity relates purely to Asia and VRE is actively engaged with potential partners in other regions which sees the CEO anticipating deals being done in the next three to six months.

But, if that isn't enough to whet investors palate's there is also apparently news due very soon surrounding mobiles, a space where VRE is already partnered with Deutsche Telekom, so that may be a space worth watching.
The Android version of ENGAGE will be out in Q3-2020 with the Apple version out in H2 2020.

In terms of funding, CFO Larrissey is open and frank and says that at the current burn rate, VRE has around 14 months of money in the kitty.

I ask the inevitable regarding a potential raise which is the norm for any company in growth mode,
particularly with such a seemingly massive opportunity. Larrissey explains that they are comfortable with the current position post the HTC injection and says there are no plans to raise further funds, as they were already confident of reaching break even and those plans were in place before the Covid-19 situation.  

Going on, he points out that the expectation has been there for revenues to ramp up with costs moving in the other direction and that hasn't changed.

He does however acknowledge that should an opening or opportunity arise that was beneficial to the business moving forward, then of course it would be something that they would look at.

Speaking of the tech and where he wants the business to be in three or five years down the line, Whelan says that there are others out there in the space, but not as suitable as what they are offering, some being aimed more at children and different areas to what VRE is addressing.

Going on, it is clear that the ambition and drive is very much there as he says the aim is to target Zoom and see Engage become the next platform of choice.

Whilst that may sound like a true blue sky dream, Whelan is deadly serious and has clearly put in place the right steps to take this business to a whole new level.
When viewed against the Zoom offering it isn't difficult to see the argument and as this industry accelerates, Engage doesn't merely look like the part it sounds it too.

As someone who at one time was mixing cement on a building site until the rain pushed him in a different direction, shareholders cash is not something he takes lightly or for granted and as ambitious as they are, he adds that he is extremely careful when it comes to that end.

The VRE story looks a potentially great one to me and for those who can accept that it is still early days the upside potential could be extensive.
No guarantees in this game of course, but it looks like the company is on its way and in the right place at the right time.

[hazl] 16/6/2020 13:55

'11/ At the end of the @htcvive
#ViveNextNormal event announcing HTC Event suite with 5 apps, we were automatically relocated to the expo hall with booth spaces to talk with @VirBELA1
, @MuseumOR
, @VRChat
, & @vreducation
. I had an awesome hallway convo for 1.5 hours in the VIP room'

[hazl] 16/6/2020 13:52

'ENGAGE is an advanced virtual reality education and training platform that makes it easy to collaborate and learn in VR. It enables educational institutes and businesses to host classes, conferences, private lessons and presentations with people from across the world in a safe & multi-user environment.'

[hazl] 16/6/2020 13:52

'Immersive VR Education has gained a reputation for delivering outstanding virtual experiences over its short history such as Apollo 11 VR and Titanic VR. Since 2014, we have collaborated with well known organisations, including the BBC, creating memorable experiences. We believe that people learn through experiences and this is done by creating immersive, memorable moments.'



for anybody new....their website very good

[dubois] 16/6/2020 13:32

Only 2 sells today, rest are buys.
Currently 18.10 v 18.40

[hazl] 16/6/2020 10:28

I think that's yours just gone through spittingb with some at similar price.



8-)

[hazl] 16/6/2020 10:26

Hopefully you had info on follow up involvement in conventions and larger groups?

[hazl] 16/6/2020 09:54

Await with interest!

[hastings] 16/6/2020 09:40

Just finished speaking (35mins) with the CEO and FD.Very impressed and more than comfortable!Write up to follow later.

[hazl] 16/6/2020 09:25

Phew ,got things going on at home as well.
In the process of preparation of changing to blinds from curtains and all the window sills need maintenance.
Chaos!

Trying to balance that and the shares.

[dubois] 16/6/2020 08:48

It is currently 17.10 v 17.48 at the moment.

Irrelevant long term though

[spittingbarrel] 16/6/2020 08:47

My purchase of 100,000 at 17.7 hasn't shown up.

[dubois] 16/6/2020 08:46

Yes you are right hazi, only one small sell today so far.

[hazl] 16/6/2020 08:39

I imagine the 17.45 are buys in the wrong column?

[masurenguy] 16/6/2020 08:38

Some inevitable post results profit taking has just capped the initial shareprice rise !

[hazl] 16/6/2020 08:38

There are lots of companies on the rise today....perhaps a lot to compete with but this company has really turned round in the last 6 months!

[hazl] 16/6/2020 08:34

Welcome spittingb!

[spittingbarrel] 16/6/2020 08:27

Looks ok, I'm back in.

[hazl] 16/6/2020 08:20

Interesting.

[hastings] 16/6/2020 08:14

A lot of content in the release today and undoubtedly a massive opportunity for the company moving forward.Worth noting that Telco's are now actively pushing AV/VR to upsell customers to new 5G data plans. As a result customers will receive as part of their package VR hardware alongside a new phone handset when they sign up for a new 5G plan. This should provide for an ideal situation for VRE as the technology makes the leap to becoming mainstream.

[astralvision] 16/6/2020 08:08

The results set the scene very nicely.What an exciting prospect this is!GLa

[hazl] 16/6/2020 08:03

Surely the best results they have ever had ?

[hazl] 16/6/2020 08:02

Thanks Ron too.

[hazl] 16/6/2020 07:49

Ironic that later on they are meeting up via Zoom!
I expect that to change!