Engage XR announces two big contract wins

(Sharecast News) - Engage XR announced major new contract wins on Tuesday, including its largest contract to date. The AIM-traded company said it had secured a seven-figure deal with a prominent Middle East-based entity operating in the education, training, and development sector.

The partnership, in collaboration with PwC Middle East, would entail the development of a bespoke MetaWorld tailored to deliver language learning programmes and facilitate ongoing professional development within the organisation.

Additionally, Engage XR said it had strengthened its partnership with a prominent American bank, building on a previous engagement focused on employee onboarding via the 'Engage' platform.

The board said the extension of the collaboration, marked by a six-figure contract, reflected the bank's continued confidence in the capabilities of Engage.

Despite challenges faced in the previous financial year due to delays in contract signings, Engage XR said it was optimistic about its growth trajectory.

The company anticipated recognising revenue originally slated for the 2023 financial year in 2024, driven by an expanding sales pipeline and robust demand within the education, training, and development sectors.

"The signing of our biggest ever contract underlines the progress we are making in the education, training and development verticals," said chief executive officer David Whelan.

"It also extends our presence in the Middle East.

"Customers in these verticals are clearly willing to invest heavily in Engage, and we expect education, training and development to be the primary driver of revenue this year."

Whelan said the company's understanding of the needs of customers in the areas had accelerated during 2023, adding that it was better placed to target and win more business as a result.

"We are also pleased that our pipeline is beginning to convert again, after customers delayed signing contracts in the second half of last year."

"We also expect to see the benefits of our partnership with Lenovo during 2024.

"At CES earlier this month, we released Engage on Lenovo's VRX headset with additional artificial intelligence features and abilities, receiving positive feedback."

David Whelan said Engage XR believed 2024 would see growing interest in spatial computing and metaverse services, as Apple released its Vision Pro headset in February and new devices were expected to be released from Sony, Samsung, Google and Meta later in the year.

"Overall we are excited at the opportunity before us and believe that the group is well placed to take advantage of the increasing interest in spatial computing and the metaverse."

At 1449 GMT, shares in Engage XR Holdings were up 27.46% at 3.25p.

Reporting by Josh White for Sharecast.com.