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Rapid sales growth of Operator XR

Operator XR Rapid Sales Growth

xReality Group Limited (XRG) is excited to share the following sales update for Operator XR, a wholly owned subsidiary of xReality Group Ltd. Operator XR provides Military and Law Enforcement agencies around the world with a unique, integrated Mission Planning & Rehearsal System, which is portable, secure, and highly immersive.

 

Expanding U.S. Presence and Market Focus

In late November 2023, Operator XR bolstered its U.S. operations by expanding the sales team. This strategic move was designed to intensify direct sales activities within the Law Enforcement sector, while we continue to develop the Military segment globally. The results of this focus has seen rapid sales growth in the month of May.

 

May 2024: Record-Breaking Achievements

May has been an outstanding month for Operator XR, demonstrating substantial growth across multiple metrics, including year to date total contract value more than doubling, resulting in an Annual Recurring Revenue increase of 107% for the month to $1.26m.

    • Sales Achievement: Operator XR secured $1.93 million in sales, marking a significant monthly performance.
    • Customer Acquisition: We welcomed 12 new customers and achieved our second Australian Defence Force sale, further solidifying our market presence.
    • Contract Value Surge: The total year-to-date contract value has soared by 261% this month, reaching an impressive $2.66 million.
    • Recurring Revenue Growth: Our Annual Recurring Revenue (ARR) experienced a remarkable 107% increase, now standing at $1.26 million. 

Strategic Wins: Law Enforcement and Military Expansion

Second Sale to the Australian Defence Force:

On May 22, 2024, we received a Purchase Order from the Australian Defence Force for the delivery of two systems with a three-year license; further details of this sale remain confidential. This marks the second purchase of the Operator XR system by the Australian Defence Force, separate from the ongoing trial with the broader organisation.

New Law Enforcement Customers in the U.S.

In May 2024, Operator XR received orders from 11 individual Law Enforcement agencies across various states. The customers include Police Departments in Oregon, Maryland, Alaska, Texas, Florida, Ohio, Arkansas, Indiana, and a prominent training organisation based in California. These new partnerships underscore our commitment to providing advanced training and operational solutions to Law Enforcement.

 

Future Focus

Operator XR is focused on continued growth over the coming months and remains committed to delivering cutting-edge solutions that meet the evolving needs of our clients.

 

XRG CEO Wayne Jones said, “The momentum we are currently experiencing, particularly in the US,
is a further validation of the product and market fit. We have established a strong sales culture within
Operator XR, and we are starting to see the results of the Sales, Marketing and Production activities
over the past 6 months.”

 

To view the ASX release, click here: 30 May Operator XR Sales Update ASX release here.

 

Visit the Operator XR website here.

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xReality Group Quarterly Activities Report

Key Highlights
  • Strong sales growth of Operator XR (Enterprise Sector)
    • Six new US Law Enforcement customers since late January including two in early April totalling $583k AUD.
    • 12 potential new sales in Q4, totalling $6.85m total contract value (includes the US Department of Defence proposal valued at c.$5.6m).
    • Software Annual Recurring Revenue increase for Q3 25% to $611k (YTD increase 63%)
    • 133 global opportunities with a total aggregate value of $23.7m
  • Stable and Consistent performance in Entertainment Sector in Australia
    • Military and professional wind tunnel revenue up 10% on Q3 FY23
    • Christmas school holidays results consistent with prior year
    • FREAK Entertainment booking and ecommerce systems upgrade Operational
Update by Business Sector

Operator XR – Enterprise Software and Technology 

The company continued to make progress in the United States Law Enforcement and Military markets over the past three months and continues to achieve major milestones in line with the global expansion strategy.

  • Growth in Annual Recurring Revenue (ARR)
    • ARR grew 25% from $489,936 in Q2 to $610,962 in Q3. With multiple late-stage opportunities in the US, S/E Asia and Australia, the recurring licence fees are expected to continue to ramp in the last quarter of the financial year.
Graph showing Annual Recognised Revenue growth from 2023 to projected in 2024.
  • Growth in US Sales
    • Between late January and the end of Q3, the Company secured 4 more law enforcement customers across Arizona, Illinois, Nevada, and Idaho in the US.
    • Subsequent to the quarter, as at April 19th, the company has won 2 additional US Law Enforcement customers in Georgia and California
    • Total Contract Value of the six new deals mentioned above equal $583k AUD, cash receipts during the quarter totalled $326k AUD which includes the renewal of Garfield County Sherriff’s Department in Colorado, USA. The remaining cash will be received in Q4.
  • Renewal of first US customer contract
    • Due to outstanding feedback on the product, Garfield County Sheriff’s Department in Colorado has committed to renew its contract into the second year, six months ahead of schedule. The County has already completed its first full agency wide training with the system and is acting as a reference customer.
  • LAPD SWAT trial
    • The LAPD SWAT trial was delayed due to some customer changes and is on track to commence in May.
  • Final Stages of US Dept of Defence proposal with an expected contract value of c. $5.6m
    • Operator XR LLC continues in negotiations with the US Department of Defence on development of a ground-breaking R&D proposal with strong prospects for follow on work. 1
      1 There is no guarantee this tender will be successful.
  • Operator XR meets with Department of Homeland Security (DHS)
    • Head of DHS Silicon Valley Investment program invited Operator XR to demonstrate capabilities and discuss potential cooperation with DHS agencies including United States Customs and Border Protection (CBP).
  • Marketing Activities
    • During the quarter, Operator XR generated significant traction across the US market, through focused digital marketing, and exhibiting at relevant trade shows, including:
    • Shot Show in Las Vegas, generating over 200 notable leads.
    • International Law Enforcement Educators Training Association (ILEETA): March 18-20, 2024
    • Texas Chiefs Association: March 25-28, 2024
  • Upcoming events include:
    • IDEC Expo, Mexico City: April 21-25, 2024
    • Special Operations Forces (SOF) Week, Tampa FL: May 5-11, 2024, with Operator XR sponsored by Team Defence Australia (Austrade)

Entertainment Sector

XRG’s portfolio of Entertainment businesses have continued their stable performance throughout the period. The operational cashflow through our existing businesses remains cash flow positive and receipts from customers has remained consistent with prior periods and management expectation.

Column graph showing customer receipts from Q4-23 to Q3-24
  • Military and Professional Revenue Increase 10%
    • iFLY Downunder and iFLY Gold Coast have adopted a strategic partnership approach to bolster their business by aligning with skydiving centres, coaches, governing bodies, and military units. This focus on building close relationships with these stable market segments is proving to be a successful strategy, particularly in increasing customer traffic, occupancy rates, and revenue during typically slower times of the year.
  • Christmas Holidays Trading Period 
    • The school holiday period experienced stable trading conditions, consistent with FY23. With challenging trading conditions, the retail market was slightly down on last year, however this was offset by the successful partnerships and initiatives outlined above.
  • FREAK Entertainment Booking and Ecommerce Systems Upgrade
    • All FREAK Entertainment Systems have been migrated to the world leading FMX Systems in line with the rest of XRG’s Entertainment Portfolio. The migration will create operational efficiencies and cost savings across the business.
READ ASX RELEASE
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xReality Group expands Operator XR to Mexican Market

xReality Group expands Operator XR to Mexican Market

xReality Group Limited (ASX:XRG) is pleased to announce that it has formalised a partnership with a key technology partner in Mexico for the distribution of Operator XR’s VR technology for Law Enforcement and Military markets.

 

Tecnología en Sistemas de Apoyo SA (TSA) are a trusted provider to State Police and Judicial agencies across Mexico, having successfully designed, built and implemented the standard judicial recording system used across the majority of Mexican states. Founded in 1999, TSA is a skilled technology services company, trusted by Mexico state agencies, and offers Operator XR access into key Law Enforcement Agencies across Mexico.

 

Mexico Law Enforcement consists of 2 Federal, 31 State and over 1800 Municipal Agencies, that also encompass Military units performing a Law Enforcement function, including the Mexican National Guard. In total there are approximately 500,000 police officers across the country. Operator XR and TSA have together identified a business development pipeline in 2024, giving rise to the formalisation of this partnership.

 

Operator XR’s Law Enforcement Training Simulators allow Police and Law Enforcement agencies to train operational tactics and procedures using a highly portable, easy to use and incredibly realistic Virtual Reality system that does not require internet, is highly secure and easily configurable.

 

Virtual Reality based training with Operator XR technology offers a low cost, and lower risk alternative to traditional training approaches, reducing demand on staffing resources. The technology increases trainee throughput and allows higher levels of training repeatability, with simpler and easier access to training at any time, in any location.

 

Wayne Jones, CEO, XRG, said “Following significant interest in Operator XR from numerous Mexican law enforcement agencies and military, we are excited to announce the growth of our distribution network through local market leader TSA, enabling the supply and support of Operator XR on the ground in Mexico.” 

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LAPD SWAT sign for Trial of Operator XR Technology

LAPD SWAT sign for Trial of Operator XR Technology

  • Operator XR has been accepted by Los Angeles Police Department (LAPD) SWAT for a trial of its Virtual Reality Tactical Training solution.  
  • Commencing in February, the trial will run for 3 months, and be used by the 67 SWAT members and team commanders of the LAPD SWAT Team, Metro Division. 
  • LAPD SWAT is known as one of the foremost police tactical units in the world, earning hundreds of commendations and citations, including several Medals of Valor, the Department’s highest award for heroism in the line of duty. 
  • Operator XR technology will be assessed and reviewed as a training system to supplement and enhance current SWAT training, in support of the teams roles and responsibilities towards upholding public safety. 
     

Following extensive demonstrations during Q1 FY24, the Department requested a formal trial of the technology, over a 3 month period expected to commence in February 2024. The trial will integrate Operator XR technology into the current SWAT training program, gather more sustained exposure to team members and commanders, for the purposes of assessing a fit into the SWAT training programs.  

 

Operator XR will allow LAPD SWAT to train operational tactics and procedures using a system which is a highly portable, easy to use and realistic Virtual Reality system that does not require internet, is highly secure and easily to use.  

 

Virtual Reality based training with Operator XR technology offers a low cost, and low risk approach to traditional training approaches, reduces demand on staffing resources and at the same time increases officer exposure and throughput to high intensity, high stress virtual situations that increases and enhances situational awareness, leading to improved outcomes in high risk law enforcement situations.  

 

This system will enable LAPD SWAT to plan and train active shooter scenarios, hostage rescues, and crisis interventions which can be difficult to train using traditional methods.  

 

Operator XR software has been developed by xReality Group, using the latest innovations in Virtual Reality technology, coupled with the considerable expertise of XRG management in former career duties in front line Military and Policing.  

 

XRG will not charge LAPD SWAT to use the Operator XR technology during the 3 month trial period, but are confident that the success of the trial will lead to revenue earning opportunities from this and other follow up arrangements with other US State and Federal law enforcement agencies.  

 

LAPD SWAT said “We are looking forward to extensive testing of Operator XR with our team over the coming 3 months, this trial will help us understand how technology can complement our current training programs, and enhance the public safety outcomes.” 

 

Wayne Jones, CEO, XRG, said “Building on the momentum of Operator XR in the USA, a trial with the Los Angeles SWAT for our VR training systems is a huge step for XRG. Trialling Operator XR, the  highly advanced VR tactical rehearsal system, with one of the worlds most respected tactical policing agencies, is expected to open significant opportunities. It’s a major test of our technology in a critical environment, and we’re ready to show its impact on tactical training and operational readiness.” 

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Veritas Equity Research Report

Operator Product

Veritas Equity Research Report - July 2023

Contained in the following document is a detailed report for xReality Group’s current equity as researched by Veritas group. Please click the download button to receive a copy of the 19-page document.

DOWNLOAD
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Significant milestone for Operator XR with first sale in United States

Garfield Country Sheriff Office Colorado

We are pleased to announce that our US subsidiary, Operator XR LLC (Operator XR), has achieved a remarkable milestone with its first US customer. This accomplishment marks a pivotal moment in affirming Operator XR’s viability to cater to a diverse range of law enforcement needs within the United States.

Elevating Law Enforcement Training

The Garfield County Sheriff’s Office in Colorado has embraced Operator XR’s cutting-edge training solutions. They have procured both product lines, to service their tactical teams needs for immersive team-based Virtual Reality (VR) training capability, and its patrol officers for de-escalation training.

  1. OP-1 Tactical Training System: This immersive VR solution empowers tactical teams to refine operational tactics in complex scenarios, enhancing their response capabilities to critical situations.
  2. OP-1 LE De-escalation System: Focusing on patrol officers, this system hones de-escalation skills through virtual training in realistic scenarios, ensuring a measured response to various law enforcement situations.

A Choice Backed by Excellence

The selection of Operator XR by the Garfield County Sheriff’s Office followed a comprehensive evaluation process. This choice reinforces the company’s capability to address modern law enforcement training challenges effectively.

A Visionary Partnership

Lou Vallario, Garfield County Sheriff, highlights how Operator XR’s platform aligns with their vision of proactive preparedness. This partnership aims to equip deputies with the skills needed to ensure safety, service, and security, fostering a transformative change in virtual law enforcement training.

A Momentous Achievement

“Securing our first customer in the USA marks a major milestone for XRG. It highlights the product fit and sets the stage for our sustained commitment and growth in the North American markets. The significance of this first sale cannot be understated, it will amplify our presence in the market and provide a substantial springboard into a large number of agencies of all sizes.” – Wayne Jones, CEO of xReality Group Limited.

Expanding Horizons

The partnership with the Garfield County Sheriff’s Office is a significant step in Operator XR’s strategic approach to target law enforcement agencies within the 50-500 sworn officers range, encompassing roughly 3,000 agencies across the US. This approach aligns with Operator XR’s goal of widespread impact and value delivery.

As Operator XR gains ground in the US market, it signifies a promising path forward. This accomplishment underscores the company’s potential to redefine law enforcement training, contributing to safer communities through enhanced readiness.

Read the full ASX release here.

Operator XR

For more information on Operator XR, visit: https://operatorxr.com/

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Operator XR first sale to Australian Defence Force

https://xrgroup.com.au/news/operator-xr-first-sale-to-australian-defence-force/
Australian Army special forces soldiers from 2nd Commando Regiment conduct clearance of a Sydney ferry, as part of a Special Operations Command maritime counter-terrorism training activity on Sydney Harbour, on Wednesday, 24 June 2020.

Operator XR is leading the way for immersive military virtual reality training and we are proud to announce the successful sale of its OP-1 Tactical Rehearsal System to the Australian Department of Defence.

The system will be used by the Australian Army and initially provided to deployed units to maintain military skills, using Operator XR’s immersive VR simulation platform, OP-1. This system brings a new dimension to enhancing critical military skills and has been purchased as part of a concept evaluation process.

The 4 person OP-1 System allows for tactical teams to train and rehearse in Close Quarters Battle (CQB) and urban combat scenarios with unparalleled realism.

Users train on their own weapons, as the system is supplied with M4 “drop in” kits that replace the bolt and magazine of the live weapon with an untethered, pneumatic recoil system and weapon tracking sensors. This integration creates a lifelike experience that mirrors real-world weapon handling.

Image of a black case with 4 VR headsets, a table, tracking devises.

The OP-1 System is a compact design, with the complete system for 4 users packing into a double rifle case. There are no external computers required, with the system operating seamlessly off a high-powered tablet, which also serves as the hub for the After Action Review (AAR) system.

Additionally, OP-1 operates completely offline, allowing the virtual reality training system to be deployed securely, and in locations without internet.

Operator XR is honoured to stand beside the Australian Department of Defence in their pursuit of maintaining and advancing the capabilities of their armed forces through cutting-edge technology.

For more information about Operator XR, visit: https://operatorxr.com/

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Operator XR Launches Groundbreaking Tactical Software Development Kit (SDK)

A 3D model building looking in from the damaged room, with 3 suspicious looking characters inside.

We are thrilled to announce the launch of the Beta version of our subsidiary, Operator XR’s Tactical Software Development Kit (SDK).

This revolutionary tool empowers special forces, military, and law enforcement agencies to create immersive and realistic training scenarios. The Tactical SDK seamlessly integrates with Operator XR’s immersive tactical rehearsal systems, enabling end users to develop custom active shooter simulations, mission rehearsals, and other specialised scenarios.

The Tactical SDK features an intuitive visual editor and a powerful scripting API for scenario creation. It supports multi-user collaboration, real-time scenario development, and optimization between developers. With access to a growing library of pre-built 3D assets and environments, users can quickly build visually engaging scenarios.

The advanced AI and behaviour customisation capabilities enable dynamic and challenging training experiences, with characters exhibiting custom behaviours and decision-making processes. The SDK’s performance optimisation tools and in-depth analytics ensure smooth and immersive experiences for users while providing valuable insights for scenario improvement.

An example of Tactical SDK capabilities, showing a 3D image of a custom building scenario with custom character placement and behaviours.

Operating offline, the Tactical SDK adheres to the highest security standards, enabling classified scenario development and protecting intellectual property. It supports a wide range of training scenarios, including active shooter simulations, tactical decision-making, close-quarters combat, vehicle interdictions, communication, teamwork, leadership exercises, and intelligence, surveillance, and reconnaissance training.

The release of Operator XR’s Tactical SDK showcases our commitment to delivering innovative virtual tactical rehearsal systems to the global special forces, military, and law enforcement markets. This software empowers our customers to reduce training costs significantly by creating custom training scenarios without external support.

Click here to read the full ASX release.

Find out more about Operator XR Tactical SDK here: https://operatorxr.com/virtual-reality-scenario-designer

xReality Group Limited are leaders in enterprise software development for mission critical simulations for military and law enforcement. The company develops and operates physical and digital simulations. Portfolio companies include Indoor Skydiving facilities, Virtual Reality (VR) and Augmented Reality (AR) entertainment, training, and production.

xReality Group Limited is listed on ASX under the code XRG.

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Operator XR selected for National Trial of Policing Law Enforcement System

xReality Group (XRG) is thrilled to share the news that we have been chosen as a technology and expertise supplier for a funded National trial of its Law Enforcement system. This prestigious trial aims to evaluate the effectiveness of Virtual Reality Simulation Based Training (VRSBT) in enhancing frontline safety for police officers.

Operator XR will be working closely with an undisclosed foreign National Police Force over the next six months, immersing their officers into highly personalised scenarios to assess the capabilities of our cutting-edge Virtual Reality (VR) system.

What sets Operator XR apart is its ability to provide police and law enforcement agencies with a highly portable, easy-to-use, and incredibly realistic Virtual Reality training experience.

One of the key benefits is that it doesn’t require internet connectivity, making it highly secure and easily configurable. It also allows officers to train together in the same VR environment, even in the most challenging situations. Additionally, they are able to bring their own policing equipment into the VR environment, enabling officers to conduct extremely realistic training scenarios.

Operator XR has worked tirelessly to develop the software from the ground up. Leveraging the latest innovations in Virtual Reality technology and our extensive experience in design and scaled software platforms, we have created a system that exceeds market expectations.

“The decision to award this National trial to XRG further confirms the quality and effectiveness of the technology. We are currently experiencing a high level of demand from around the world from both military and law enforcement agencies. We look forward to seeing the positive impact our technology can make on improving the safety and preparedness of those men and women on the frontline.” – Wayne Jones, CEO, xReality Group Ltd.

At xReality Group Limited, we believe that Virtual Reality Simulation Based Training is the future of law enforcement training. We are committed to playing a key role in enhancing the safety and preparedness of police officers worldwide. The national trial represents a significant step towards achieving this goal.

Read the full ASX Announcement here.

Find out more about Operator XR Law Enforcement System here: https://operatorxr.com/law-enforcement


xReality Group Limited are leaders in enterprise software development for mission critical simulations for military and law enforcement. The company develops and operates physical and digital simulations. Portfolio companies include Indoor Skydiving facilities, Virtual Reality (VR) and Augmented Reality (AR) entertainment, training, and production.

Operator provides Military and Law Enforcement agencies with a unique, integrated Mission Planning & Rehearsal System, which is portable, secure and highly immersive. See https://www.operatorxr.com

xReality Group Limited is listed on ASX under the code XRG.

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Philip Copeland appointed as Non-Executive Director and Chair of International Expansion Committee

Blue background with photo of Philip Copeland

We are proud to announce the appointment of Philip Copeland as Non-Executive Director and Chair of our newly formed International Expansion Committee.

With extensive experience in scaling enterprise SaaS businesses globally, particularly in government and financial services, Philip brings invaluable insights to guide our international growth strategy.

Philip, the former CEO and co-founder of Avoka Software, has a remarkable track record, leading the company to worldwide success before its acquisition by Temenos in 2018 for $US245M.

Currently residing in Colorado, USA, Philip will play a key role in our expansion into the US Government markets and driving growth through our Enterprise Software solutions.

“We are looking forward to Philip’s input in shaping our international growth strategy.” – Wayne Jones, CEO of xReality Group.

Philip added, “I am delighted to join the xReality Group Board. There is a tremendous opportunity to bring these innovative Australian products to the US and Global markets.”

We welcome Philip Copeland to our team and look forward to the exciting possibilities his expertise will bring as we embark on a transformative international journey.

Read the full ASX Announcement here.


xReality Group Limited are leaders in enterprise software development for mission critical simulations for military and law enforcement. The company develops and operates physical and digital simulations. Portfolio companies
include Indoor Skydiving facilities, Virtual Reality (VR) and Augmented Reality (AR) entertainment, training, and production.

Operator provides Military and Law Enforcement agencies with a unique, integrated Mission Planning & Rehearsal System, which is portable, secure and highly immersive. See https://www.operatorxr.com

xReality Group Limited is listed on ASX under the code XRG.