ENGAGE XR Holdings Plc, a leading Metaverse / Spatial Computing technology company is pleased to provide an update on trading for the six months ended 30 June 2023.  The Group expects to publish its interim results for the six months ended 30 June 2023 on Monday 11 September 2023.

The Group continues to trade in line with market expectations. During the six months to 30 June 2022, the Group has continued to be contracted by new and existing clients to hold significant events inside its proprietary software platform, ENGAGE.

Financial Highlights:

• Group revenue continued to grow, with unaudited H1 2023 revenue expected to be c.€2.1 million, an increase of 18% on the prior year (H1 2022: €1.8 million)
• ENGAGE revenue is the main driver of the increase in group revenue with unaudited H1 2023 revenue expected to be c €1.9 million, an increase of 30% on the prior year (H1 2022: €1.5m)
• ENGAGE revenue comprises 91% of H1 2023 total revenue (H1 2022: 83%)
• Unaudited gross margin in H1 2023 was 93%, an increase of 12% on the prior year (H1 2022: 81%)
• Cash balance at 30 June 2023 of €9.4m (30 June 2022: €4.9m) as the Group's cash position was significantly strengthened following a successful €10.5 million (€9.9 million net of expenses) oversubscribed fundraise in February 2023.

Operational Highlights

• The Group is gaining traction in the US market. 54% of revenue in H1 2023 has been derived from North America compared to 30% for FY22, following the deployment of the US sales team in mid-2022
• A steadily increasing client base with more than 220 active Enterprise and Education customers at 30 June 2023 (31 December 2022: 190)
• Ground-breaking concert hosted in ENGAGE in March 2023 by the renowned international musician, Norman Cook, aka Fatboy Slim (Highlights Video)
• Following the launch of Lenovo™'s new ThinkReality™ VRX all-in-one virtual reality (VR) headset in June 2023 the Group expects the benefits of the Lenovo hardware partnership to start to be seen in early Q4 2023

Post-period end Highlights:

• 5,400 user K-12 education license deal signed with a US state as a pilot programme valued at in excess of €300k
• Successful employee onboarding event run with one of the world's largest banks

David Whelan, CEO, VRE, said: "The first half of 2023 has demonstrated our continued progress as more companies embrace the new world of virtual communications, such as extended reality (XR) / Spatial Computing and the Metaverse. Our client list is steadily growing, and we have added more than 30 new customers, including two leading global banks, as well as seeing an uptick in activity and spend from our existing users.

"As well as working with large international enterprises, the very well-received Fatboy Slim concert held in ENGAGE in March showcased the innovation and flexibility of the platform, with the potential to open up new revenue streams.

"The XR market is continuing to grow and develop. We have seen Apple announce plans to launch a headset, Meta is releasing the Quest 3 later this year, and other providers are also launching new hardware, including Lenovo, with whom we have a partnership agreement. With the launch of Lenovo's new enterprise-focused headset and through our agreement with Lenovo we have increased our international reach and customer base as we collaborate to target Lenovo's top 100 customers together.

"Success has been achieved despite the considerable headwinds we continue to see in the global economy, and we look forward to the second half of the year with optimism. ENGAGE is growing its customer base as others in the market are fading, which is testament to our fantastic team and quality of our product offering."  

The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU No. 596/2014) which is part of UK law by virtue of the European Union (Withdrawal) Act 2018. Upon the publication of this announcement, this inside information is now considered to be in the public domain

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About ENGAGE XR

ENGAGE XR Holdings plc (AIM: EXR) is an extended reality (XR) technology company focused on becoming a leading global provider of virtual communications solutions through its new fully featured corporate metaverse, ENGAGE Link. A demonstration of ENGAGE Link is https://www.youtube.com/watch?v=ITtz7ErWhMs&t=2s

The Company also has a proprietary software platform, ENGAGE. ENGAGE provides users with a platform for creating, sharing, and delivering VR content for education, training, and online events through its three solutions: Virtual Campus, Virtual Office, and Virtual Events.

For further information, please visit: www.engagexrholdings.com (LinkedIn: @Engage XR Holdings plc Twitter: @engage_xr)

Forward-Looking Statements

Certain statements made in this announcement are forward-looking statements. These forward-looking statements are not historical facts but rather are based on the Group's current expectations, estimates, and projections about its industry; its beliefs; and assumptions. Words such as 'anticipates,' 'expects,' 'intends,' 'plans,' 'believes,' 'seeks,' 'estimates,' and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties, and other factors, some of which are beyond the Group's control, are difficult to predict, and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements.

The Group cautions security holders and prospective security holders not to place undue reliance on these forward-looking statements, which reflect the view of the Group only as of the date of this announcement. The forward-looking statements made in this announcement relate only to events as of the date on which the statements are made. The Group will not undertake any obligation to release publicly any revisions or updates to these forward-looking statements to reflect events, circumstances, or unanticipated events occurring after the date of this announcement except as required by law or by any appropriate regulatory authority.