When inventing their technology, Aerometrex (ASX: AMX) intended to use 3D mapping to automate visualisations of architecture but fast forward to 2022 and their biggest growth opportunity may be in virtual reality with metaverse enthusiasts seeking the Company to create digital versions of major cities.
This is a prime example of how quickly technology is moving as the metaverse gathers momentum as Aerometrex customers engage the Company to ensure they are prepared for mass adoption, and potential migration into the Metaverse. It should come as no surprise that much of this interest is coming from the United States, including Silicon Valley, where Aerometrex have already delivered 3D mapping data models of San Francisco to Google.
Gathering momentum from a standing start, the US market contributed $0.62 million of revenue to Aerometrex for the Half Year ended 31 December 2021, more than half of the 3D division’s $1.24m.
Adding in the other Aerometrex divisions which include subscription revenue for their aerial imagery platform and LiDar laser surveying, Aerometrex generated $11.3m in revenue for the Half Year which represented a 32% increase on the previous year.
While the increase in sales was reflective of strong growth in the US operations, it was not enough to offset the $2.8m net loss after tax, although the Company remains well capitalised with $12.2m cash in the bank.
“We are pleased with the continued growth of MetroMap reflected in the increase in statutory revenue which was up 80.4% on the same time last year to $2.72M and the growth in the annual recurring revenue which was up 81.4% year on year to $6.01M,” said acting Aerometrex CEO, David Boyle.
“The strategy of focusing on the MetroMap subscription business sees this revenue stream now contribute 24.0% of the group revenue, up from 17.6% for the same period last year.
“We are also extremely pleased with the contribution that the US operations have made in this half year with revenue contribution of $620k, up from zero in the prior corresponding period. While the revenue to date is still relatively small, we have made significant strides in growing the awareness and potential of our world leading 3D business within the US”
The Company has continued to cite COVID-19 as an impediment to operations with lockdowns having limited their ability to capture certain data. This has subsequently created a flow on effect with Aerometrex staff incurring higher travel and accommodation expenses.
Looking ahead, the US market will be a core focus for Aerometrex which has now captured 3D models for San Francisco, Miami, Tampa, LA, the Las Vegas strip and parts of New York.
Having captured this data, Aerometrex’s US business continues to gain interest from leading engineers such as WSP and the tech sector, particularly those interested in using the data model in applications such as the metaverse.
Alfred Chan is an Analyst at Emerald Financial, specialising in ASX-listed small cap companies.
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