- Use of virtual reality is gaining momentum amid COVID-19, as it allows people to remain virtually close while maintaining social distancing.
- Cloud computing is playing a critical role in enabling businesses and other organisations to face challenges and maintain continuity during the unprecedented crisis.
- Vection Technologies closed FY20 with ~79% year-on-year increase in cash receipts amid the challenging environment due to COVID-19.
- Vection partnered with Heatherwick Studio and jointly participated at Epic Games' Unreal Fest 2020, aligning with its strategy to strengthen overall market positioning across industries.
- Dropsuite reported solid June quarter, with annual recurring revenue up 70% from the year-ago period.
Technology space has already been evolving before the pandemic period, with promising technologies like AI, cloud computing, AR and VR shaping up the world, driving us towards a more technological advanced era. The ongoing crisis has further highlighted the importance of technology in our lives, enabling us to reinvent the ways we work, engage, learn, or socialise.
Due to the prolonged crisis, behavioural changes have been observed. During the social distancing period, technology has helped people to remain close virtually. For instance, virtual reality-based meetings aided organisations to go on with their meetings. Moreover, cloud computing solutions have enabled businesses and governments to respond to the crisis and maintain continuity.
This trend is going to stay here for long, as right now there is no clarity on how long this crisis will last. Moreover, there is no guarantee that there will not be a similar crisis in the future.
Virtual reality and cloud computing have evolved substantially in the recent times, and now is the time to explore their potential.
In that backdrop, let us have a look at two stocks from the related space, discussing their latest announcements.
Vection Technologies Achieves Growth Goals for FY20
Real-time software company, Vection Technologies Ltd (ASX: VR1) registered record annual growth of ~79% year-on-year in cash receipts to AUD 2.8 million for FY20, despite the challenging COVID-19 environment.
During the June 2020 quarter, the Company completed all-scrip acquisition of Mindesk and its cash receipts from sales activities were noted at ~AUD 577k.
Total cash at bank stood at ~AUD 1.6 million at end-June. The robust financial position of the Company enables to continue with R&D activities, strategic core-business operations, and strong progression towards sustained recurring revenue generation activities.
Over the next 6-month period, Vection plans to focus on advancing its solutions, entering into new verticals, strong acceleration of recurring revenue sales initiatives, executing commercial partnerships, and launching new products and third-parties software integrations. Moreover, the Company will focus on development of the existing technology suite, as well as expanding and consolidating the global sales infrastructure and footprint.
Vection Technologies' First Collaboration with Heatherwick Studio
Vection has completed its first-time collaboration with Heatherwick Studio, a world-renowned design and architecture firm focusing on large-scale projects in cities, globally. Together they participated in the Epic Games' Unreal Fest 2020.
During the fest, an exclusive landscape design use-case showcasing Vection’s real-time 3D design platform, Mindesk was highlighted. VR1 partnered with Deyan Saev and Alberto Dominguez of Heatherwick Studio to offer an insight into the development of the studio's approach to visualisation. The insight focused on the landscape design role via the Mindesk software, which provides the real-time live link across CAD software McNeel Rhinoceros 6 and Dassault Solidworks with the Epic Games Unreal Editor.
Vection Technologies and Heatherwick Studio gave a presentation at the Epic Games' Unreal Fest 2020 about the latter’s Studio project design development approach and current explorations into visualisation tools and workflows.
During the pandemic time, Epic Games' Unreal Fest 2020 is a great virtual event. It is an informative and exciting program of sessions across segments covering automotive, live events, architecture, games, film, TV, and cross-industry.
It is an excellent platform for creators from all industries to learn about new techniques and skills, as well as know about the latest Unreal Engine developments. Participants get an opportunity to watch inspirational speakers from various prominent companies like Kohn Pedersen Fox Associates, Rocksteady Studios, Audi, and Zero Density on how they implement Unreal Engine in their projects.
This first collaboration with Heatherwick Studio is aligned with Vector's overarching marketing strategy to strengthen its overall market positioning through partnerships with key technology and industrial partners across Tier-1 regions.
On 24 July 2020, VR1 closed the day's trade at AUD 0.040, down by 2.439 per cent from its previous close. The stock has delivered a return of more than 73 per cent in the last six months.
Dropsuite's Exceptional Performance in June Quarter
Dropsuite Limited (ASX: DSE), a global cloud backup and archiving software provider, has released its quarterly report for three months ended on 30 June 2020.
The Company's quarterly performance was robust amid the challenging macro environment. Annual recurring revenue (ARR) grew by 13 per cent on the prior quarter and 70 per cent on the previous corresponding period (PCP) on a constant currency basis. At the quarter-end, ARR stood at AUD 6.74 million.
Paid users increased by 9 per cent to 343,000, with average revenue per user up by 6 per cent on the prior quarter to AUD 1.64. Gross margin reported strong improvement from 63 per cent in March 2020 to 69 per cent in June 2020, on the back of paid user growth and better pricing terms secured from Amazon Web Services, the main cloud provider of the Company.
DSE remained well funded with AUD 3.02 million cash at the end of the quarter. Cash receipts were up by 17 per cent to AUD 1.46 million (Q1 2020: AUD 1.24 million) and normalised cash receipts went up by 28 per cent on the prior quarter to AUD 1.59 million.
Dropsuite’s Managing Director Charif Elansari stated that the second quarter achievement is promising, and it is pleasing to see the continued uptake of the SaaS-based technology into all prominent markets in which the Company operates. DSE expects the trend to continue as the Company remains well funded with a healthy cash balance and no debt.
Dropsuite anticipates paid user base and annual recurring revenue to steadily build, as ongoing investment in technology suite, business development initiatives, and new sales opportunities in SMB and enterprise sectors aid the Company confidence.
On 24 July, DSE closed the day's trade at AUD 0.070, down by 4.11 per cent. The last six-month return of the stock was noted at 25 per cent.