Nextech3D.AI Corporation (NEXCF) Earnings Call Transcript & Summary

Well, good morning or good afternoon, depending where you are. I'm Steve Darling, welcome inside the Worldwide Broadcast Center Proactive for another Proactive Livestream Event. This time featuring the company NexTech AR Solutions and very excited to welcome back to our program, Evan Gappelberg. He is the CEO of NexTech AR Solutions. [Operator Instructions] But let's welcome Mr. Gappelberg once again. Evan, good to see you again. How are you, my friend?

I'm great. Great to be back with you again, Steve.

So today, we're going to deal with a lot of different things, including what you've been building over the last -- really since the inception of the company, and we'll talk more about that in just a couple of minutes. But it's always a great opportunity to give us a bit of an update on where NexTech AR solutions is at right now, Evan?

Sure. So just to remind everybody, we raised $10 million in January of 2022. That was a strategic capital raise, primarily because we saw that there was an opportunity to raise capital, and we look -- we're looking at our business and we're looking at the capital as growth capital. So after that $10 million raise, which was just 30 days ago, we had $16 million in the bank. If you think about NexTech and the fact that we had $16 million in the bank, you might think, well, but their burn historically has been high. True, but that's no longer the case. And I want to make that clear to our investors that we've been working hard to bring our total company expenses down to under CAD 1 million per month, and that will happen, meaning we're almost there by the end of next month, meaning in March 2022 or earlier, our monthly expenses will be sub-$1 million per month. So going forward in 2022, we'll have a much lower expense, which will give us over a 12-month runway, assuming we generate 0 revenue, which is not the case, right, over the next 12 months. So if we don't generate any revenue to offset that $1 million, that means that we have 12 months or a little more worth of runway, but obviously, we are generating revenue. And speaking to that, I want our investors to be aware that we've signed up roughly 100 new accounts to our ARitize 3D offering, which is the new offering that we just launched in Q4 of 2021. The business is accelerating. We're seeing a tremendous amount of demand, and all these new accounts are signing up for monthly recurring revenue programs. So these are not one and done type of accounts. These accounts are accounts that will be with us for many years to come. We believe they will, and they're signing up for our metaverse solution. So if you think about a new account, let's kind of walk through what that means to NexTech. So the typical new account is signing up for about $5,000 in annual contract value. So you could divide that by 12 months, and that's the typical new account. But what's happening is that 50% of our new sign-ups are actually turning into customers that purchase additional goods and services from NexTech as part of our metaverse studio. So they're coming back within 30 days, 60 days and saying, we want the configurator. We want your swirl ads, which we spoke about. We want the social ads. And so those second orders typically are equal to or greater than the initial orders. So those initial orders are just kind of test orders from our customers, and we're seeing them come back, and we're seeing them accelerate their spend. And that's a key, key metric, something that should not be under appreciated by our investors. It means that our customers are extremely happy and that they're seeing the ROI. They've seen a return on their investment. They want to invest more so that they get a higher return on their investment. That's the only reason you would do that. So if you look at our customer base, we've mentioned Kohl's. They've recently come back again. Pier 1 again. Kmart Australia again. CB2, which is a new major account. There's just a tremendous amount of customers that we're signing up that don't just sign up, but they sign up and then they come back for more. And I also want our investors to think about these customers not in terms of just a 1-year contract, but these customers really are our customers for at least the next 3 years. That's the way we look at them, but there's this tremendous lifetime value because 3D and augmented reality is very sticky. And once you go 3D, you don't go back. I said that before, and we're seeing that, that is actually playing out to be true. And so as we go forward, Steve, the fundamental focus of NexTech this year is scaling 3D model output. So both last year and this year, if we look back some of our business in the past revolved around virtual events, and I want to just speak to that for a minute. If we focus on virtual events as we go forward into 2022, our total 3D model output would decrease, if we focus on virtual event. So we are tapping the brakes. And what we see as a nonscalable business, really we're focusing on our critical businesses, the businesses that can scale. And so if you look at the businesses that we currently own and operate that can scale, we do have a live event business called Map Dynamics, and that comes with the marketplace business, and those both are scaling nicely. And I think it's important for people to think about and understand that we're making the critical decisions to ensure that we're investing in businesses that can hyperscale and that can grow very, very rapidly. So last year, 2021, we set along on engineering and management resources solving issues around scale and must have 3D functionality, be it rewriting codes, changing our product priorities and reducing the number of people we need to operate with a focus on quality and scale. Naturally, with COVID becoming the new normal, live events are coming back, which as mentioned is great for our Live Event business. Now virtual events are going to go slow, but back to 3D modeling, back to the metaverse that's really the heart and soul of NexTech. That's our primary focus. We see 3D model demand and everything related to 3D models really just exploding. And so as we go forward, Steve, in 2022 as a result of our strong leadership team, our strong product offerings, even in the face of a slowing virtual event business, we're looking at 2021 as a year where we were able to grow almost 40%. So we feel good about our 2021 results. But if we had not made these transformative acquisitions of 3D AI and ARway and the difficult headcount reduction to reduce our burn and product changes, prioritizing the production of 3D models at scale, we would not be in the enviable position that we are in today. And I underline that weren't enviable because there's a lot of companies. I mean look at Telecom. They're not in an enviable position. They had no place to go. If you look at companies that were tied to the pandemic, Zoom, On24, they're not in enviable positions. NexTech is in an enviable position today where we're now starting to fully scale and focus on becoming the first vertically integrated AI-powered 3D model factory for the metaverse. And what comes with that is our ability to generate an extremely sizable MRR, monthly recurring revenue, stream and ARR starting just now in 2022, and we think that's going to be growing very rapidly into the future. So let me just touch on that real quickly. In 2021, we had roughly 3,500 3D models in aggregate delivered. That's when we started the business really. And it's not unreasonable to expect that in 2022, we're going to 25 to 50x that number in market, and then most importantly, in 2023, we're going to 25 to 50x that again. Our competition, we believe, will remain absurdly behind the curve. NexTech is taking the lead in 2022, and with our CAD to POLY technology kicking in, I think we can increase that lead and really become the de facto standard for 3D models, where if you think about 3D models, it's going to be ARitize. So the most important product development that we're doing this year is AI and ML related to our ARitize metaverse studio, which we're going to speak to in a minute. That's where we're going to have Brynne speak to. The metaverse studio, I think, has the potential to be more valuable and more significant than the 3D model business over time, which is why I want to show you what we're working on. Now first, you might ask, why would the studio be more valuable than the 3D model business? Well, if you think about the 3D models, it is, in my view, at some point going to be a commodity. 3D models to 3D models to 3D model. So what happens if everybody has a 3D model? They start to look for new ways to interact and display the 3D models, their avatars, the holograms. And by the way, we're actually getting customers coming to us with their 3D models and saying, they want us, they want NexTech to host these 3D models, and they want to use our metaverse studio with these 3D models for advertising for our color configurator, for our room decorator, for exploded views and for many more exciting even the Trion capabilities. And that's what really makes our ARitize brand and metaverse studio so valuable. And with that, Steve, I think it's a perfect segue to bring in Brynne unless you have some questions.

Yes. Just a couple of really quick for me, if that's all right. There are people that have sent any questions, so I just want to add to this right now. First off, someone is asking an interesting question, and I want to ask you. And I think we've talked about this in the past about -- this person saying, why you offer like one month free and then -- so people can use it, and then start charging after that. But I think you do that with a lot of companies right now. The process is to take them through that so you can see what it's about. Is that right?

Yes. So we don't do 1 month free because we don't have to. So what we do, do though is, we are very happy and it's been quite successful for us to do what's called proof of concepts, POCs, for customers where they will do a single model for them for $250, let's just say. And what ended up happening is, we get an 80% close ratio on people that do a POC. They -- 80%, 8 out of 10 of them turn into a customer. So we are doing something similar, but we don't have to give it away for free.

Okay. Got it. Okay. And then some people just asking about Q4 numbers, but I know that you haven't made any announcements on that yet. So I don't want to put you...

Well, we will -- we have announced previously actually that we're expecting to end the year in the $25 million range -- $25 million, $26 million range. So if you do the math, you could see what our Q4 looks like.

Okay. Perfect. All right. Let's bring in Brynne Kennedy. She's the Director of UX and UI product design. UX and UI are, explain those to me.

I'm going to let Brynne explain it.

Yes. Okay. Good. Let's bring in Brynne Kennedy. It's our first time to actually have a chance to chat with her. Brynne, nice to see you. How are you?

I'm doing great. How are you doing?

I'm doing very, very well. So explain to us what UX and UI mean?

So UX is basically user experience and UI mean user interface. And so basically, what I do and my team does is, we designed the experience that our clients will go through as they use our applications and our web services. And the UI part is the visual design. So that's the color, the branding, the logos and all of that combined together make a beautiful high fidelity prototype.

So just that the audience knows that when we were talking just before the webinar started, Evan said, people have no idea how much work that Brynne has put in behind the scenes on building this. And I know you're going to have a presentation for us in just a second, but Evan, I think that's important to ask -- to talk a bit about the work that Brynne and her team have really put in.

Yes. Brynne has done an amazing job, pulling together a lot of technology under one umbrella into one studio, which is not easy to do so that a customer can have a cohesive experience. As our investors know, there's a lot going on at NexTech. We have a lot of products. It's not a singular solution, right? It's a deal. And so Brynne works with her team tirelessly to make it all make sense for the user, for the customer and also designing it in a way so that there's a red thread that attach all the products together, again, into one cohesive product that makes sense to a customer. It's no easy task. It's high-level thinking and high-level design, and I'm super excited. I mean I don't normally do this. I don't normally actually show and tell before we actually launch, but I really did feel excited about what we're about to bring to market, what Brynne design. And I think it's really game-changing for our company, and I want our investors to be aware of what it is that they own and the only way that they're going to be aware is for Brynne to kind of show them what she's been working on. And that's why she's kind of being pulled out of the shadows.

Right. Right. So Brynne is in an undisclosed location. We can't tell you where she is because she's too busy. Okay, Brynne, I'll turn it over to you. I know you have a bit of a presentation for us, so I'll let you take it away and explain to us what exactly is you're doing.

Absolutely. Can you see my screen?

Yes.

Yes, it looks great.

Wonderful. Okay. So I'm going to present to you today the design for the NexTech metaverse suite. And so as Evan was explaining before, this is basically a home base where all of our products live and where our clients can access them. And so that begins with the log-in. And so anything that has previously signed up to any of our products, we'll be able to use that exact same log-in here as well, and they can also sign up for an account. So that looks like this, and basically, once a client has signed up or has logged in, they're really going to get to the meat of what this product really is. And so our clients will basically land here, and so this is our main dashboard. And so this is where all of our clients can access our app. Here as well as on our side menu here. And so what this essentially does is, it shows some which pass they've purchased. It allows them to launch right into the app, start using the app. And then it also explains and shows our other apps that we have to offer. And so what this does is, it helps them sort of discover what else we can bring to their business. So we can show upcoming apps. We can show apps that we have that are already developed. And just the full breadth of our product -- all of our products. And so from here, basically, if a client, let's say, they were interested in one of these apps that they didn't have access to, they can click on this cart. And it will go to a really cool info page that sort of explains what the app is, shows videos to help sell that app. It shows examples. So proof of concept of what the app does and what it creates. Any kind of questions that they might have, we try to answer it. And if they want to contact us to get started, they can contact us. And then having related app at the bottom so that they can discover more of our products that could potentially help their business. And so this is also available for us that these clients have already purchased. So they can launch right into the app from here as well. When -- each product also has one of these overview pages. So if there's multiple videos, they can access them. And if they wanted to see 3D models -- sorry, our example of 3D models, they can click on this here and interact with it and see how these things can help them. So for each product, we'll be showing different types of proof of concepts in here. So this is our really cool swirl product, so showing our cool 3D ad. Air tight decorator so they can open up a demo and explore and use this and see how this might be able to benefit their business. Holograms, they can scan, the QR codes and access holograms and see and giving you a little examples of what the app looks like to help sell and our cool new airtime map app also featured here. And so one of the other really cool things that is existing in the metaverse suite is access to all their files. So right now, we'll have -- we'll be giving our clients the availability to come in here and access all their files in one space. As our products grow, we'll also, in the future, be able to have -- to be able to give them access to their holograms, any of their 3D mapping files as well. So they can clip right into here and launch them right from this home base. What we're also showing here is a help center. So clients can access help if they need it and also their account settings and log out. So account settings is basically your profile info, your preferences, and in the future we will have payments and billings, so they will all be in one spot. And then our help and support center here will allow users to access help when they need it. They can search for it. They can click on a product. There's general questions, contact form. And so if they're going to click into, let's say, ARitize CAD. If they need more help, will go into a full page dedicated to that app. So having tutorials, FAQs, contact and then also showing any related app to help them understand more or learn more about any of our products. And so that's pretty much the conclusion for V1, but as we continue to grow and expand this design will feature more and more things potentially like plans and payments, that kind of thing.

Brynne, just a quick question from me. So when you take a client through this, is it more so the wow factor from them that you experience? Or is it the -- how do I use this? Because obviously, you're going into some stuff, for you is very simple, but for others that may have this for the very first time, is that making it as easy as possible for everyone to understand?

Yes. It's essentially -- it's an app so we can access any of the apps that they've signed up for and then also learn more about anything else that we have so that we can really grow their business for them and help them increase sales. So if they start off with our 3D -- ARitize 3D app, which creates our 3D models, they can use those models in go into configurator and really elevate and emphasize their products. So it's all in one spot, so they can access everything together and it makes it really easy for them to open up each app.

Okay. Perfect.

Yes, it's really -- if you think of it, Steve, it's really your dashboard for everything 3D. And so any kind of need that you might have, as Brynne was pointing out, whether it's hot spots, whether it's your configurator, your decorator, your animator or whether it's your map, your ARitize map, which is the metaverse map, I mean there's a ton of tech that's built into this. And over time, we're going to be flipping switches for the tech as it becomes live because not all of it is built today. So when this is launched, some portion of it will be built. As you could see, some of it will be coming soon. And so there will always be new and exciting upgrades to the platform that we're going to be coming out with in 2022. But the takeaway here is, our customers are going to be part of an ecosystem and that ecosystem is going to be fed with 3D assets that they're ARitize on a regular basis, and then they're going to decide what they want to do with it. So you log in, imagine like today, we don't have this. Today. There's no log in where you can go and [indiscernible], right? So the magic here is that very soon next month, we will have this live and people will be able to kind of have their home base, their dashboard, all their 3D assets will live and breathe and it's going to make I think everybody super excited to be part of NexTech, and they're not going to want to leave. We want our customers to be our customers for life.

Okay. Got it. Okay. Sorry, Brynne, go ahead.

Yes, that's about it.

Okay. Good.

Great. That was exciting.

Yes. So -- and so again, that's launching when, Evan?

So we're expecting that the first version will be launching first week in April, roughly -- beginning of April. Is that sound about right Brynne? Sometime in April?

I think, yes.

Okay. Yes.

Brynne, someone's asked a question, and I think it's a good one because I don't know the answer to it. I know it's a good one. How does the -- so say, I'm a customer. Say, I'm someone who's new to NexTech, and I want to utilize what you've just shown there when it's live. How do I integrate that with our website? Is it that we -- is it integrating it all? Like how do I get those 3D models and stuff on my website? Just through the app and then it brings it live? Can you sort of talk about the process? And maybe, Evan, you can help with this one as well?

Sorry, what was that again? When...

So for instance, if I'm someone who's utilizing that app, so that app -- how do I -- how does that connect to my website? Like if I'm a store or something, how would I utilize those tools to get it on to my website? Someone wants to know.

Yes. Yes. So it lives on the web. So the app maybe isn't the right terminology because all these are web-based solutions.

Okay. Fair enough.

Yes. So it's not like an app like an Apple App Store. We're calling it an app in-house, but it's really a web-based solution.

Got it. Okay. So we can integrate them with someone's website and that's how it works.

Yes.

Okay. That make good sense, yes.

Yes. Yes. This all happens on the web. Maybe, Brynne, this is a good moment to take a note. We can maybe adjust it, maybe not call it an app because it does kind of make people think, "Oh, it's like an app, like I have to download on my phone." But that's not really the case.

Yes. It's a web app, not a mobile app. Some of the apps we have are mobile apps like ARitize holograms, for example, but the ARitize 3D is technically a web application, which is still different. So we can call it something else, but...

We're going to come up with something creative.

Well, the great thing about this is, and I think this is an important point to make is that when you build something like this that's really new, it's this kind of stuff that people want to know about, right? It's that sort of -- it's the learning curve, and in 5 years from now, it will be, oh, it's just the way it's done. But when you're building it like you seem to be doing here, it's that sort of the ramp up and launch up that really is the fascinating part about this. Is that fair to say, Brynne? Is that what gets you excited about this?

Absolutely.

Yes. Evan, that was great. Well, Brynne, thank you so much. Great to see you, and just hang on with us. You can turn your camera and audio off, and we'll talk to you back in a second because we're going to bring you back for a little bit of a panel discussion in a bit, but we want to add something else. And Evan, this is about the sales channels, which are really important, obviously, because you mentioned a few of the companies that are with you like Kohl's and Kmart Australia, and we did some videos around those as well, but it's getting this in the hands of these types of companies that want this around the world that will be key, I would think, to what you talked about in growing revenue and seeing growth within the company.

Yes, it is. And we're seeing global demand. I think we just signed the deal yesterday in Qatar. There's a lot of demand. Surprisingly, the Middle East has become a hotspot. I would never have expected that, but we're seeing demand across the Asia Pacific region. Of course, North America, EMEA and the Middle East, and Adrian can speak more to that. Adrian, I think we're ready to bring you into the fray.

Let's introduce Adrian Hinrichsen. He's Senior Vice President of Business Development and Global Head of Digital Sales for NexTech AR Solutions. And Adrian, nice to meet you.

Good morning, Steve. Thank you very much for having me today. Pleasure to be here.

Yes. Just pick up on what Evan was saying about that, just the global demand that you're seeing for this type of products.

Yes, there is. I mean, I believe what I'll do is just kind of introduce myself, and I'm sure it's important for the investors to know who's driving sales forward for the company. So I've actually joined the NexTech family about a year ago, and I bring with myself 25 years of experience in business development, B2B, B2C and SaaS. And over the last 6 or 7 years, I've actually been heavily involved in the 3D and AR augmented reality sector across different verticals within retail. And why that's so important because within the last probably 12 months, there's been a huge pivot with clients, retailers really looking for 3D augment reality solutions. We've gone away from kind of education in terms of convincing clients to take the product to an actual real demand now that's happening globally. And so part of my remit as Senior Vice President of Business Development is working with the larger enterprise corporations or larger clients, would you say. And then as part of the Global Head of Digital Sales, it's creating that expansion model with an incredible team that I work with personally across Southeast Asia, Australia, United Arab Emirates, the GCC, U.K. and North America. And so just to speak more about the actual expansion itself, we are seeing traction globally. And I think this really puts NexTech AR in a very unique position. I'm aware of the number of competitors that we have, and they are very focused on their own markets. And so we have clients that are far away as Australia, South America, South Africa, Middle East, U.K., obviously, North America and Canada. And we can see that adoption is growing daily, weekly and monthly. And so we have a very aggressive target this year revenue-wise, and we believe that we're on track to actually make that. And the reason is because we have a great technology and it's really great -- sorry, technology stack that we're actually developing in the background that is supporting that vision. And what we're finding is that when clients are actually signing up with us for 3D and augmented reality, it's a gateway. It's a gateway for them into this kind of metaverse well, and it's a great way for them to actually explore the augmented reality to help increase their sales, to help increase user engagement to decrease returns. We know the statistics, and we're finding those analytics are becoming more real. I mean just to give you an idea that Deloitte are substantially forecasting that the augmented reality market by 2024 alone is going to be worth $50 billion. That is incredible when you really think about where the augmented reality market was 3 years ago. And that by 2025, 75% of the world's population, which is around probably by then 6.5 billion people, will be using augmented reality in some way, shape or form. So it's really exciting times at the moment. I think that and I believe that NexTech AR is in a real unique position, and for us about creating the models in 3D augmented reality, it's all about the customer experience and the suite of products that we have on offer for our clients.

Okay. I know that you put it together a presentation to talk more about that. So we'll let you take over and take us through your presentation and then we can talk on the other side as well.

Yes. No problem at all. Let me just share my screen. Is everyone seeing that okay?

Yes, it looks great.

Yes.

Fantastic. So essentially, the suite of products have been put together as part of a SaaS company. It's our responsibility to ensure that we really identify friction points on scalability. So the idea is that the sales team have an incredible suite of products they can actually demo to our clients essentially immediately as they come into our ecosystem, so we can showcase a lot of the different tech stack that we have on offer as part of NexTech AR Solutions. So here, you can actually see a couple of clients that we work with. It's just a showcase of the high-end enterprise clients that we're working with at the moment. And as we work through a showcase of ARitize 3D, essentially allowing our clients to view products in 3D. So I can actually open up our viewer. I can, for example, put a bike here -- a mountain bike. I can actually zoom in. And what we're finding this type of interaction, this type of engagement for our e-commerce and our retail clients is increasing conversion by nearly 94%. It's incredible when you think about the usability and the idea of actually interacting, engaging with these products. And so what we're finding is as well that AR has really been adopted in the furniture sector. Over the last couple of years, we're aware of big brands like IKEA have been using augmented reality for clients to increase purchasing decision making. But over the last 6 months in NexTech AR, we have found that we are entering so many different verticals that AI is becoming such a demand point for various IPSO sporting goods, furniture, homewears, fashion. You can see here that I'll launch a Nike trainer that we've actually developed. And just the idea to be able to zoom in, have a look at the product in detail really allows our clients to offer very different experience to their clients. And so that essentially allows us to look at ARitize 3D as one of the solutions in our suite. We then have configurator. Configurator is something very new to the ecosystem for augmented reality. It allows clients to take -- for example, let's have a look here. It's a scooter. I love scooters personally. I think they're a great product, and it really allows us to look at the different options that this product is available in on an e-commerce site. So here is a scooter. I can actually view it in the 3D. I can zoom in. I can actually look at more details. I can look at the top. And then I'm thinking, okay, let's have a look at the colors that this is available in, and I can actually essentially select the color that the product is available in, and I can have a look at the different options -- the purchase options that I have. And you can see there how instantaneously it looks and feels. And if I want to change the color as well, I can go to black, I can obviously go to other colors. And then based on that purchasing decision, based on that experience that I'm taking, I can actually then go to the checkout page. And what we're finding is, again, is increasing those conversions for our e-commerce clients, and that is essentially our configurator. I'll just give you another option because I do like this technology that we have, and it's becoming more and more in demand by our clients. So gaming chairs. Gaming chairs have really boomed the last 2 years because of obviously the pandemic that we've been in. We can zoom in. We can zoom out. We can see the quality of the actual 3D artistry. It looks and feels like high-end leather. You have chrome in there as well. If I want to change the color, it's going to give me the other option of red. So I can actually make my purchasing decisions based on a real 3D AR experience. Let me just close that down.

I would just add that the value of that, Steve, is that -- you just saw essentially 2 different chairs. If you put them in the store next to each other, you have a red one, you have a blue one or 4 different scooters, right? But with the magic of this configurator, we're able to create 1 model, 4 different ones or 2 different ones, and then with the click of a button, change the color scheme. And so if you think about that, if you have 1 model and 10 different colors, you can just use this configurator. And for NexTech, we're able to charge a premium price of $500 to $1,000 per month, so that's $6,000 to $12,000 per year. It's pure software, right? So we're not making any additional 3D models, we're just applying the software. And for us, that's pure margin. So every 3D model that we make that has multiple configurations, we sell the configurator. The customer's happy because they don't need to order 10 3D models and 10 different colors. And NexTech is very happy because we're able to offer our clients a very high-value, high-margin technology. So I just want to stress that this is a key technology that adds a lot of value to the NexTech ecosystem.

And that could be for anything like you mentioned -- I think shoes is a great example because how many times have you gone to a store and said, do these come in white or do these come in orange or whatever it is. So the ability to be able to do that now, but Adrian, that's what you're saying is a big bonus for clients.

Yes. And shoes is a really interesting use case because through our research and speaking with clients, we found that a lot of consumers actually purchased online over the last couple of years 2 to 3 pairs of trainers and then actually sent 2 back. So we understand that returns is a really big problem. It's a $750 billion problem actually, in fact, for online retailers. So the opportunity that they can actually use configurator to configure their shoes, their trainers actually view that the products in 3D augment reality is reducing the amount of returns. So it's actually increasing their bottom line. And for us, as well, as Evan mentioned, is the ability to actually take 1 SKU and then essentially overlay different colors and different designs on that 1 SKU as well, but the revenue perspective from that point of view is pretty aggressive. So it does offer us a host of options and opportunities for our retailers and our customers as well.

All right. I'll let you continue.

No problem. And so obviously, added into that as well, we create products that have hotspots and animations. What we found is that there is a natural evolution in terms of the customers' journey. Consumers are starting to really kind of adopt and understand 3D and augmented reality. And so what essentially we're looking to do is, with our retailer clients, we're looking to enhance that experience. So how can we enhance that experience? So when we start to add some interactive elements into that journey where we can place hotspots that call out certain USPs of the product. Maybe certain technology aspects. Maybe there's a video link to a demo on how the product works. And these are a case essentially how you would be sold the product if you were going into in-store. Imagine a customer service system, you answer certain questions about the product. What are the top 4 or 5 questions asked on this product? Okay, do they have cool touch? How many speed settings does it have? And is engineered to protect your hair? So since what we're doing, we're helping our consumers to make the right buying decisions. We're helping our retailers to offer the opportunity for decision-making to be taken by our technology. And this is really being implemented at the moment. So just imagine consumer comes in, one of our retailers comes in, they sign up for ARitize 3D package. It's absolutely fantastic. They then explore the rest of the tech stack that we have. They upgrade to configurator, and then they continue to upgrade that journey with us by imitating the tech stack that we have and they start to add on elements. That's all about how we can help our clients grow, help them scale the experience. And for NexTech AR, how we can actually offer a full turnkey solution suite of opportunistic products and features that allow our consumers to make the right buying decisions. And then just moving on from there, it's ARitize Swirl. So there's been obviously a lot of chatter around ARitize Swirl. This is quite a big launch for us. We're offering our retail clients to have the opportunity to essentially embed Swirl banners across their website and across their social platforms. And this is really important because we're talking about how do we actually minimize the noise on an e-commerce website, how do we really interact and engage with consumers through social platforms. So it can be through Snapchat, it can be through Instagram, Pinterest, TikTok, Facebook. And the idea essentially is that we offer these small banners that brings the product to like live in the actual website. So you can see there are thematically, just by me not doing anything, everyone's eye is caught on the products. You can see it moving. What it's doing is, it's essentially dragging your attention to that swirl banner and then you're able to interact and engage with the product. And then what we're finding is that the conversion rate for these swirl banners is incredibly high. So it's engaging with the client. It's bring them through to the PDP or the checkout page, and it's ensuring that we're able to embed these swirling banners that is increasing. Again, it's all about our tech stack and our solution or suite of products that is helping our clients increase revenues within the ecosystem. And so the swirl banner is an incredible product. The opportunity that it can be actually launched across social platforms as well, which is incredibly new, we know that Snapchat, we know that TikTok putting a huge amount of money behind revenue -- essentially driving revenue through ads on their platform. And I believe that this really fits well with the next 2 years, 24 months, road map of those social platforms are putting in place. And then ARitize Decorator. This is an incredible product essentially because it allows our clients to work within the parameters of a website. So let's take Kohl's, for example. We're able to look at -- I'm just going to load a room here. So look at essentially taking a picture of their environment. So they could take a picture of their living room, their dining room, their kitchen, for example, and it allows them to essentially build out the products that they're looking for. So let's take, for example, I'd like to actually put a little table next to the sofa. So what I do, I just drop and drag. It allows me to place the table. And the great thing about this product that the dimensions are also created. So it's actually building in the dimension as in into the room environment. So you can see if I move this around, it does change size depending on the actual dimensions of the room. So I'm going to actually just place that here right next to the sofa. But again, we're going back to that full suite of products. We're going back to clients who are looking for one solution provider to offer them all the opportunities that surround augmented reality. And this is part of that ecosystem that we're trying to create. So going back to Brynne and obviously, the studio coming into the suite of products that we're able to offer our clients and our sales teams upsell as well, in real time, gives us that opportunity to increase revenue for NexTech AR. And then we have some really interesting products, which is essentially CAD to POLY and Exploded Views. So the environment for CAD to POLY is slightly different. There is a play -- pure play for retail, but the opportunity for CAD to POLY is actually working with larger manufacturers, both as you can see, I'm just going to play this in the background while I'm talking. So you can actually see the boats being created from a CAD file, and then it's going to be essentially trades into a POLY 3D asset for use for essentially training, for use for retail, for sales. And then it really allows us to offer a different experience to a different clientele. And so what we're essentially looking to do is offer this experience by allowing our clients to deep dive into more complex, potentially more difficult products that are hard to explain for training and educational purposes. But it doesn't stop there. So a lot of our retailers actually have caps. So glass is a great use case. They have the CAD file of glasses. Are they looking to actually scale at speed? They're looking to actually create thousands and thousands of SKUs within a very limited and minimal period of time. Our CAD AI, our CAD technology allows our clients to essentially create that with CAD, and it allows our system to essentially deploy those assets at speed and scale for our clients to actually move forward. Exploded View is really important. So I just mentioned there about our clients who are actually looking for something a little bit more detail, a little bit more explicit in terms of offering that opportunity for education, for training, and that's essentially where we're moving into in terms of the full suite of products. It's probably just trying to load here. Here we go. You can see, this is super impressive. This is incredible technology that we have as part of our augmented reality management system, our ARM system. It allows us to offer something different to our clients than our competitors are doing. It allows us to really look at going into more detail on the product where the client is looking for that deeper level of interactivity. And when we go into complex automotive, we're having a high traction point in automotive at the moment. We've had the real players who are working with some very big manufacturers from Ford to Audi, who are looking to actually explain in detail certain parts of the engines, for example, certain parts of the actual cars themselves. And then as we move forward, obviously, part of our portfolio is to integrate with platform partners. So as you know, there's been a lot of press talk around the partnership that we have with Shopify. That actually start to take traction as well. We've just partnered with SHOPLINE in Southeast Asia. So that's going to be a huge client for us in Asia. Magento, BigCommerce, WooCommerce, and we do have more integrated platform partners signing up shortly. So keep a look out for those. But I think that actually just gives you a good overview of the suite of products that we're essentially talking to clients about and the journey that we take them on, going back to that entry point system and then moving them through the full text stack that we have to offer as a company.

Adrian, just a quick one for me. How different is this presentation depending where you are in the world? Did the sales people that you deal with around the world basically sell it the same way? Or do you have to do different ways of selling it through different markets?

It's sold in exactly the same way. So essentially, we have a great opportunity. The pitch might change because, obviously, different cultures, different mentality. We have that experience in our sales team that we are allowed to address. But essentially, the product -- it's a SaaS solution. It stays the same globally. So we're essentially looking at KPIs, but we're allowed to actually analyze our results based on one product.

Yes. Fascinating stuff. Very good. I appreciate the input and...

No problem at all.

And Evan, that's where the growth is going to be, right? It's around the world when the adoption happens, correct?

Well, the adoption is actually happening.

Yes. Fair enough.

But if you think about what you just saw, Steve, you saw Brynne speak to the same tech that Adrian was speaking to, and it's all coming together inside the metaverse studio that we were speaking to earlier. And that's the critical next piece of the puzzle for us. I feel like once that metaverse studio is live that we then are fully formed as a technology company. Right now, we're still working to get to that point. As far as revenue goes, I want to walk you through revenue, right? Real quick, right? So let's just say...

There are questions about it on the chat...

Yes, I understand. So let's say you sign up 20 customers in a month. It's not a thing that we're not doing, that's actually pretty close to reality. Some months we're doing better. But 20 customers, so if you're doing 20 customers and the average customer, I'm not including enterprise in this, which changes the number, but let's say, $5,000 on average. So that's $100,000 in January, okay? Now as you move forward into the month of February, it's another $100,000, and then another $100,000 on it, right? And in theory, actually, that number keeps growing because you're getting better and instead of signing up 20 accounts, maybe you're signing up 25 or 30, right? It just keeps on kind of growing, and that's kind of what we're seeing. But the key is, is that as you keep going, it's a snowball, right? Because again, these accounts are signing up not for a single one and done, it's a subscription. And I keep harping on that -- and what also ends up happening is that $100,000 in January turns into an additional $100,000 in February because they're up sold. They're buying into. So they might buy the 3D models in January, and then they buy the configurator, which we just showed you in February. And now all of a sudden, the business goes from $100,000 worth of closed business is actually $200,000. And then if you think further out, Steve, meaning not short term, everybody gets caught up in the short-term thinking that these customers are with us for 3 years. So how much is that customer actually going to spend with NexTech? Well, in our view, if a customer spends $100,000 in a year, that customer over 3 years is worth $300,000. So as we continue to grow our business, our customers become more and more valuable. It's called lifetime value. And as we continue to build our technology out, where there's more things for our customers to buy, we get a bigger share of their wallet. And ultimately, our revenue keeps going up and up. And so 2022, I believe, is going to be a year of rapid growth for NexTech for this particular business. 2023 is when the growth goes into a much higher gear because you get the benefit of all the revenue from 2022, rolling over into 2023, and you get all the new business that you're doing in 2023. And then that happens again in 2024 and 2025. We've never had that kind of growth potential or growth velocity in our business. Never. We've never had that. In the past, our business was, we sign a customer up, they pay us for ABC, whatever it was that we were selling them, a virtual event or even a 3D model, but there was no recurring revenue built into our model. And so I feel extremely optimistic about 2022 numbers exceeding 2021. I'm not going to put a number out there, but we're going to have a bigger year in 2022 than we had in 2021. So we ended 2021 with $25 million, 2022 will be greater than that. And so it will be growth, and then 2023, I think we're going to see some dramatic growth because we'll get the benefit of the snowball effect.

All right. Evan, thank you so much. We want to thank Adrian, he's the Senior Vice President of Development and Global Head of Digital Sales; and Brynne Kennedy, Director of UX and UI Production Design. And Evan, thank you as well. Good to see you again until next time, my friend.

Thank you, Steve. [indiscernible]

Yes. There's Evan Gappelberg, the CEO of NexTech AR Solution. I'm Steve Darling from the Broadcast Center of Proactive. Thank you very much for joining us, and have a great day.