xReality Group Annual Report FY24

Key Highlights

xReality Group Limited (XRG) had a transformative FY24, marked by rapid growth and the successful execution of strategic initiatives. XRG’s Operator XR exceeded expectations, especially in expanding its U.S. presence and building a robust customer base; the year saw a 193% increase in Total Contract Value (TCV) to $4.1 million and a fivefold increase in Annual Recurring Revenue (ARR). By the year’s end, the Operator XR had 29 global customers, including U.S. and Australian law enforcement and government agencies, with strong indicators for future expansion.

 

Financial Performance and Growth

In FY24, XRG reported a significant increase in revenue driven by strategic investments, cost management, and diversified high-margin projects. 

Business Unit Highlights

Operator XR

Operator XR is the fastest growing segment for XRG, focusing on defence and law enforcement agencies across the globe. The total addressable market for Operator XR is valued at US$3.37 billion with the US accounting for nearly 40% of the total market.


FY24 was a breakthrough year for Operator with increased revenue from defence and government contracts, demonstrating the ability to capture opportunities in virtual defence training globally. Operator’s contributions are underscored by steady ARR, secured through multi-year agreements with a number of customers. This unit’s reliable revenue flow enhances XRG’s overall financial stability, especially as it continues to expand its market share within the high-demand military and law enforcement sectors.

Red Cartel

As XRG’s technology and content creation powerhouse, Red Cartel made substantial contributions to revenue by securing high-value contracts in VR and AR solutions. Its custom VR environments for training applications generated a consistent stream of revenue, positioning Red Cartel as a profitable division within XRG.

iFLY Indoor Skydiving

iFLY achieved positive cashflow in a soft retail market, with $1,636k cash receipts throughout the year. Both iFLY facilities were upgraded to more efficient electrical systems, and iFLY Gold Coast was fitted with solar panels to provide further savings on electricity in the future.

FREAK Entertainment

FREAK continued to grow its consumer base with updated VR offerings, reporting an increase in gross receipts from its Arcade games. This unit has strengthened its revenue through subscriptions and frequent player engagement.

Outlook for the Future

Looking forward, we’re optimistic about our growth potential, with a strong focus on further penetrating the law enforcement and defence markets both locally and globally. As immersive technologies continue to evolve, XRG’s position in VR/AR and its innovations in training technology make it well-equipped to capture future market opportunities.

 

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About xReality Group

xReality Group Limited (XRG) specialises in building and operating immersive XR products and experiences that enhance lives. xReality Group’s portfolio includes physical and digital simulation used across the enterprise, defence and consumer markets. Using technology we create experiences without the physical limitations found in the real world.