NextTrip, Inc. Q1 FY2022 earnings call

• Transitioning from one-off project sales to a subscription model for scalable, predictable cash flow.
• Focus on software-only solutions for mass production customers, with new products combining data and technology for in-process quality solutions.
• Collaborations with AMFG, ASTM consortium, and Auburn University, and added Aconity3D to PrintRite3D certified program.
• Jacob Brunsberg's focus on being the quality standard in additive manufacturing, leveraging OEM perspective and expanding into adjacent markets like polymer production.

In the first quarter of 2022, Sigma Labs reported revenue of $52,000, down from $458,000 in the first quarter of 2021. The decrease was due to changes in business model reducing PrintRite3D unit direct sales, partially offset by revenue from subscription-based pricing. Gross profit for Q1 2022 was $12,000 compared to $330,000 in Q1 2021. The revenue is a mix, with roughly 50% being software and the rest maintenance and support contracts.

• Pipeline is increasing with new names, expecting total contract value growth year-over-year.
• Progress in OEM space with short-term revenue from software-only and hardware-software combinations, and longer-term embedded solutions with next-gen systems launching in the middle of next year.
• Polymer technology progressing well with enterprise installations and mass market offering in sight.

Statements made are forward-looking and subject to risks and uncertainties; refer to company’s SEC filings for associated risks.

Q: Scott Buck asked about the $50,000 revenue in the quarter, if it's all subscription and if it's trough revenue.

A: Revenue is a mix including first subscription and maintenance/support.

Q: Michael Shaw asked about additional sales of polymer systems.

A: Polymer product was developed with production mindset, had multi-unit installation last year, finishing validation, and progressing well.

Q: Carlo Corzine asked about 70% of revenues from OEMs.

A: Short-term revenue from OEMs with product offerings, longer-term from fully embedded solutions with next-gen systems launching next year.

Q: Unidentified participant asked about Velo3D's quality assurance system.

A: Viewed as potential partner, Sigma Labs can address standard across all machines including Velo3D's.