Executive Summary
The Glimpse Group delivered a challenging QQ3 2024, with revenue collapsing about 35% year over year to $1.90 million and net income lowering to a loss of $1.54 million. Despite a solid gross margin of roughly 54.6%, operating leverage remains negative, driving an EBITDA of about $-1.57 million and a net loss that underscores ongoing fixed cost absorption relative to the revenue base. The company maintains a healthy liquidity position with approximately $4.29 million in cash and equivalents and a modest debt load, resulting in a net cash position of about $3.66 million. However, the sizable discretionary spend (notably R&D and SG&A) coupled with an anomalous line item labeled as “otherExpenses” in the income statement raises questions about data quality or one-off charges that warrant clarification from management.
From a strategic standpoint, Glimpse Group appears exposed to a small-scale revenue base within a nascent VR/AR software ecosystem. The/core strengths lie in a high gross margin and a cash runway that can fund selective investments in product development and go-to-market activities. The primary cloud of uncertainty centers on profitability sustainability, revenue growth trajectory, and the ability to monetize software/solutions across its Immersive Technology segments. Absent material top-line recovery or meaningful cost discipline, the stock trades under pressure on a negative earnings trajectory. Investors should monitor management’s ability to scale recurring software revenue, reduce fixed costs, and convert operating cash flow into a breakeven or modestly positive state.
Key Performance Indicators
QoQ: -7.90% | YoY:-1 264.92%
QoQ: -7.94% | YoY:-1 064.94%
Key Insights
Revenue: $1,895,643; YoY -35.46%; QoQ +7.90%
Gross Profit: $1,035,146; Gross Margin 54.6%; YoY -29.64%; QoQ +7.90%
Operating Income: $(1,895,290); Operating Margin -99.98%; YoY +1.56%; QoQ -7.90%
EBITDA: $(1,574,986); EBITDA Margin -83.08% (approx); YoY n/a; QoQ n/a
Net Income: $(1,542,256); Net Margin -81.36%; YoY -1264.92%; QoQ -7.90%
EPS (Diluted): $(0.0897); EPS YoY -1064.94%; QoQ -7.94%
Cash Flow: Operating cash flow $(924,715); Capex $(10,595); Free cash flow $(935,310)
Cash and equivalent...
Financial Highlights
Revenue: $1,895,643; YoY -35.46%; QoQ +7.90%
Gross Profit: $1,035,146; Gross Margin 54.6%; YoY -29.64%; QoQ +7.90%
Operating Income: $(1,895,290); Operating Margin -99.98%; YoY +1.56%; QoQ -7.90%
EBITDA: $(1,574,986); EBITDA Margin -83.08% (approx); YoY n/a; QoQ n/a
Net Income: $(1,542,256); Net Margin -81.36%; YoY -1264.92%; QoQ -7.90%
EPS (Diluted): $(0.0897); EPS YoY -1064.94%; QoQ -7.94%
Cash Flow: Operating cash flow $(924,715); Capex $(10,595); Free cash flow $(935,310)
Cash and equivalents: $4,285,343; Net cash position: $(3,660,468) (net debt becomes negative, i.e., cash exceeds debt)
Balance Sheet: Total assets $20,604,257; Total liabilities $5,516,386; Total stockholders’ equity $15,087,871; Cash and equivalents $4,285,343; Goodwill $10,857,600; Intangibles $2,820,068; Retained earnings $(59,045,044)
Liquidity & Ratios: Current ratio 1.58; Quick ratio 1.58; Debt to equity 0.041; Gross margin 54.6%; Operating margin -99.98%; Net margin -81.36%; P/S ~10.96; P/B ~1.38; P/E negative; EV/CB negative due to negative enterprise value
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
1.90M |
-35.46% |
7.90% |
| Gross Profit |
1.04M |
-29.64% |
7.90% |
| Operating Income |
-1.90M |
1.56% |
-7.90% |
| Net Income |
-1.54M |
-1 264.92% |
-7.90% |
| EPS |
-0.09 |
-1 064.94% |
-7.94% |
Key Financial Ratios
operatingProfitMargin
-100%
operatingCashFlowPerShare
$-0.05
freeCashFlowPerShare
$-0.05
Management Commentary
Note: The provided data set contains an empty earnings transcript. As a result, no management quotes or call-driven insights are available from the QQ3 2024 session. The analysis therefore relies on the disclosed financial results and established market context to infer potential management themes. Key takeaways where applicable: (1) Revenue decline dominates the top line, (2) Margin discipline remains elusive given negative operating profit, (3) Balance sheet shows liquidity headroom with a modest leverage profile, (4) Data quality concerns raised by an anomalous ‘otherExpenses’ line item in the income statement.
Forward Guidance
No formal forward guidance was provided in the data set. Given the pullback in revenue and ongoing losses, a cautious stance is warranted. Investors should look for: (1) Management commentary on steps to stabilize or grow revenue, particularly monetization of Immersive Technology Software and potential services revenue, (2) clarity on cost structure optimization to achieve breakeven or Positive EBITDA, (3) visibility into any one-time or non-recurring items that distorted expenses (notably the unusual otherExpenses entry), (4) progress in customer acquisition, product-market fit in VR/AR applications, and (5) continued liquidity management to sustain operations through a period of growth transition. If management communicates concrete milestones for revenue growth in software offerings, improved operating leverage, or accretive partnerships, the near-term investment thesis could tilt toward a modest upside despite the current drawdown.